Obama Team Outlines Four Corporate Donor Packages for Inauguration

WASHINGTON — President Obama’s finance team is offering corporations and other institutions that contribute $1 million exclusive access to an array of inaugural festivities, including tickets to a “benefactors reception,” a children’s concert, a candlelight celebration at the National Building Museum, two reserved parade bleacher seats and four tickets to the president’s official inaugural ball.

The offerings are detailed in an online inaugural fund-raising solicitation provided to The New York Times by an Obama fund-raiser; the document describes four packages that Mr. Obama’s finance team can sell, with differing levels of access depending on the level of contribution. Individuals who contribute $250,000 will receive the same package as million-dollar “institutional donors,” which could include corporations, philanthropies, foundations and unions.

The financing arrangements are a departure from Mr. Obama’s policy in 2009, when he refused corporate donations altogether and capped individual contributions at $50,000. As in 2009, Mr. Obama will not be accepting money from lobbyists or political action committees.

While taxpayers pay for inaugural events at the Capitol — the swearing-in ceremony and inaugural luncheon — the president must raise money from private donors for everything else, including the inaugural parade, ball and concerts. In 2009, Mr. Obama raised $53 million.

The online solicitation, sent to donors by e-mail on Friday, described the different inaugural packages, each named for a former president: Washington ($1 million from institutions and $250,000 from individuals); Adams ($500,000 from institutions and $150,000 from individuals); Jefferson ($250,000 from institutions and $75,000 from individuals); and Madison ($100,000 from institutions and $10,000 from individuals).

Financing arrangements like these are typical for presidential inaugurals; to help pay for President George W. Bush’s 2005 inaugural, dozens of companies, including Home Depot and Bank of America, contributed $250,000 apiece.

But Mr. Obama’s decision has drawn sharp criticism from good-government advocates, who accuse him of abandoning his pledge to keep big money out of politics.

John Wonderlich, policy director of the Sunlight Foundation, which advocates for openness in government, wrote on the group’s blog that the decision “prioritizes a lavish celebration over the integrity of the office,” and that Mr. Obama was “turning away from a principled approach to money in politics.”

The president’s inaugural planners, however, have defended the decision, saying that museums, philanthropic organizations and service groups, like the Red Cross, all accept corporate money. And with Democratic donors feeling tapped out from an expensive presidential campaign, the planners concluded they needed to expand their fund-raising methods.

The 2013 inaugural festivities will be smaller in scope than the huge celebration of 2009, which drew an estimated 1.8 million people to the capital. The inaugural committee has not announced a schedule for the 2013 events. However, donors were told on a conference call on Friday that this time there would be only three official inaugural balls that the president and his wife would attend, according to one person who listened. In 2009, they attended 10 of them.

And because Jan. 20, the constitutionally mandated date for the presidential swearing-in, falls on a Sunday this year, Mr. Obama will take his oath in private at the White House, and the public swearing-in ceremony and other events will be held on Monday, Jan. 21.

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Rolling Stones hit NY for 50th anniversary gig

NEW YORK (AP) — "Time Waits for No One," the Rolling Stones sang in 1974, but lately it's seemed like that grizzled quartet does indeed have some sort of exemption from the ravages of time.

At an average age of 68-plus years, the British rockers are clearly in fighting form, sounding tight, focused and truly ready for the spotlight at a rapturously received pair of London concerts last month.

On Saturday, Mick Jagger, Keith Richards, Ronnie Wood and Charlie Watts hit New York for the first of three U.S. shows on their "50 and Counting" mini-tour, marking a mind-boggling half-century since the band first began playing its unique brand of blues-tinged rock.

And the three shows — Saturday's at the new Barclays Center in Brooklyn, then two in Newark, N.J., on Dec. 13 and 15 — aren't the only big dates on the agenda. Next week the Stones join a veritable who's who of British rock royalty and U.S. superstars at the blockbuster 12-12-12 Sandy benefit concert at Madison Square Garden. Also scheduled to perform: Paul McCartney, the Who, Eric Clapton, Bruce Springsteen & The E Street Band, Alicia Keys, Kanye West, Eddie Vedder, Billy Joel, Roger Waters and Chris Martin.

The Stones' three U.S. shows promise to have their own special guests, too. Mary J. Blige will be at the Brooklyn gig, as well as guitarist Gary Clark Jr., the band has announced. (Blige performed a searing "Gimme Shelter" with frontman Jagger in London.) Rumors are swirling of huge names at the Dec. 15 show, which also will be on pay-per-view.

In a flurry of anniversary activity, the band also released a hits compilation last month with two new songs, "Doom and Gloom" and "One More Shot," and HBO premiered a new documentary on their formative years, "Crossfire Hurricane."

The Stones formed in London in 1962 to play Chicago blues, led at the time by the late Brian Jones and pianist Ian Stewart, along with Jagger and Richards, who'd met on a train platform a year earlier. Bassist Bill Wyman and drummer Charlie Watts were quick additions.

Wyman, who left the band in 1992, was a guest at the London shows last month, as was Mick Taylor, the celebrated former Stones guitarist who left in 1974 — to be replaced by Wood, the newest Stone and the youngster at 65.

The inevitable questions have been swirling about the next step for the Stones: another huge global tour, on the scale of their last one, "A Bigger Bang," which earned more than $550 million between 2005 and 2007? Something a bit smaller? Or is this mini-tour, in the words of their new song, really "One Last Shot"?

The Stones won't say. But in an interview last month, they made clear they felt the 50th anniversary was something to be marked.

"I thought it would be kind of churlish not to do something," Jagger told The Associated Press. "Otherwise, the BBC would have done a rather dull film about the Rolling Stones."

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Associated Press writer David Bauder contributed to this report.

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The Human Price: Bangladesh Fire Exposes Safety Gap in Supply Chain

ASHULIA, Bangladesh — The fire alarm shattered the monotony of the Tazreen Fashions factory. Hundreds of seamstresses looked up from their machines, startled. On the third floor, Shima Akhter Pakhi had been stitching hoods onto fleece jackets. Now she ran to a staircase.

Khaled Hasan for The New York Times

Hashinur Rahman, who worked on the sixth floor, managed to flee the building, but then helped many others to get out. More Photos »

But two managers were blocking the way. Ignore the alarm, they ordered. It was just a test. Back to work. A few women laughed nervously. Ms. Pakhi and other workers returned to their sewing tables. She could stitch a hood to a jacket in about 90 seconds. She arranged the fabric under her machine. Ninety seconds. Again. Ninety more seconds. She sewed six pieces, maybe seven.

Then she looked up.

Smoke was filtering up through the three staircases. Screams rose from below. The two managers had vanished. Power suddenly went out throughout the eight-story building. There was nowhere to escape. The staircases led down into the fire. Iron grilles blocked the windows. A man cowering in a fifth-floor bathroom called his mother to tell her he was about to die.

“We all panicked,” Ms. Pakhi said. “It spread so quickly. And there was no electricity. It was totally dark.”

Tazreen Fashions Ltd. operated at the beginning of the global supply chain that delivers clothes made in Bangladesh to stores in Europe and the United States. By any measure, the factory was not a safe place to work. Fire safety preparations were woefully inadequate. The building itself was under construction — even as sewing work continued inside — and mounds of flammable yarn and fabric were illegally stored on the ground floor near electrical generators.

Yet Tazreen was making clothing destined for some of the world’s top retailers. On the third floor, where firefighters later recovered 69 bodies, Ms. Pakhi was stitching sweater jackets for C&A, a European chain. On the fifth floor, workers were making Faded Glory shorts for Walmart. Ten bodies were recovered there. On the sixth floor, a man named Hashinur Rahman put down his work making True Desire lingerie for Sears and eventually helped save scores of others. Inside one factory office, labor activists found order forms and drawings for a licensee of the United States Marine Corps that makes commercial apparel with the Marines’ logo.

In all, 112 workers were killed in a blaze last month that has exposed a glaring disconnect among global clothing brands, the monitoring system used to protect workers and the factories actually filling the orders. After the fire, Walmart, Sears and other retailers made the same startling admission: They say they did not know that Tazreen Fashions was making their clothing.

But who, then, is ultimately responsible when things go so wrong?

The global apparel industry aspires to operate with accountability that extends from distant factories to retail stores. Big brands demand that factories be inspected by accredited auditing firms so that the brands can control quality and understand how, where and by whom their goods are made. If a factory does not pass muster, it is not supposed to get orders from Western customers.

Tazreen Fashions was one of many clothing factories that exist on the margins of this system. Factory bosses had been faulted for violations during inspections conducted on behalf of Walmart and at the behest of the Business Social Compliance Initiative, a European organization.

Yet Tazreen Fashions received orders anyway, slipping through the gaps in the system by delivering the low costs and quick turnarounds that buyers — and consumers — demand. C&A, the European retailer, has confirmed ordering 220,000 sweaters from the factory. But much of the factory’s business came through opaque networks of subcontracts with suppliers or local buying houses. Labor activists, combing the site of the disaster, found labels, order forms, design drawings and articles of clothing from many global brands.

Walmart and Sears have since said they fired the suppliers that subcontracted work to Tazreen Fashions. Yet some critics have questioned how a company like Walmart, one of the two biggest buyers in Bangladesh and renowned for its sophisticated global supply system, could have been unaware of the connection.

Julfikar Ali Manik contributed reporting from Ashulia, and Steven Greenhouse from New York.

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Rolling Stones added to Sandy benefit concert

NEW YORK (AP) — The Rolling Stones have been added to the list of artists performing at the Superstorm Sandy benefit concert next week in New York City.

Next Wednesday's bill had already included Paul McCartney, Bruce Springsteen & The E Street Band, The Who, Alicia Keys, Kanye West and others.

Producers of the show said Friday they had already raised $30 million that will be distributed to storm victims in New York, New Jersey and Connecticut through the Robin Hood Foundation.

The show is sold out.

Producers also said they had no estimate of how many tickets had been bought by ticket brokers. They urged fans not to buy scalped tickets because the money won't go to storm relief.

The concert is dubbed "12-12-12." It will be held at Madison Square Garden.

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Senate Passes Russian Trade Bill, With Conditions

The Senate voted on Thursday to finally eliminate cold war-era trade restrictions on Russia, but at the same time it condemned Moscow for human rights abuses, threatening to further strain an already fraught relationship with the Kremlin.

The Senate bill, which passed the House of Representatives last month, now goes to President Obama, who has opposed turning a trade bill into a statement on the Russian government’s treatment of its people.

But with such overwhelming support in Congress – the measure passed the Senate 92 to 4 and the House 365 to 43 – the White House has had little leverage to press its case.

And President Obama has shown little desire to pick a fight in which he would appear to be siding with the Russians on such a delicate issue.

Speaking to reporters shortly after the Senate vote, Jay Carney, the White House press secretary, said the president was committed to signing the bill.

The most immediate effect of the bill will be to formally normalize trade relations with Russia after nearly 40 years. Since the 1970s, commerce between Russia and the United States has been subject to restrictions that were designed to punish Communist nations that refused to allow their citizens to leave freely.

While presidents have waived the restrictions since the cold war ended — allowing them to remain on the books as a symbolic sore point with the Russians — the issue took on new urgency this summer after Russia joined the World Trade Organization. American businesses can take advantage of lower trade tariffs only with nations that enjoy normalized trade status

By some estimates, trade with Russia is expected to double after the limits are lifted.

But another effect of the bill – and one that has Russian officials furious with Washington – will be to require that the federal government freeze the assets of Russians implicated in human rights abuses and to deny them visas.

Lawmakers on Capitol Hill were inspired to attach those provisions to the trade legislation because of the case of Sergei L. Magnitsky, a Russian lawyer who was tortured and died in prison in 2009 after he exposed a government tax fraud scheme.

During the Senate debate, it was Mr. Magnitsky’s case, and not Russia’s trade status, that occupied most of the time.

One by one, Democratic and Republican senators alike rose to denounce Russian officials for their disregard for basic freedoms.

“This culture of impunity in Russia has been growing worse and worse,” said Senator John McCain, an Arizona Republican. “There are still many people who look at the Magnitsky Act as anti-Russia. I disagree,” he added. “Ultimately passing this legislation will place the United States squarely on the side of the Russian people and the right side of Russian history, which appears to be approaching a crossroads.”

Russian officials denounced the Senate vote.

“This initiative is intended to restrict the rights of Russian citizens, which we consider completely unjust and baseless,” said Konstantin Dolgov, the Russian foreign ministry’s human rights envoy, in comments to the Interfax news agency in Brussels. “This is an attempt to interfere in our internal affairs, in the authority of Russia’s investigative and judicial organs, which continue to investigate the Magnitsky case.”

Initially there was pressure on the Senate to pass a bill that punished human rights violators from all nations, not just those who are Russian. But the House bill applied only to Russia. And the Senate followed suit, as supporters of the bill wanted something that could pass quickly and not require a complicated back-and-forth with the House.

Ellen Barry contributed reporting from Moscow.

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Individuality takes center stage at Grammys

Fun. helped break up the sound of dance and electronic music on Top 40 radio with its edgy pop-rock grooves. Frank Ocean made a bold statement in R&B — with an announcement about his sexuality and with his critically revered, multi-genre album, "channel ORANGE." And Mumford & Sons continued to bring its folk-rock swag and style to the Billboard charts with its sophomore album.

They all were rewarded Wednesday when The Recording Academy announced the nominees for the 2013 Grammy Awards.

Those acts, who scored the most nominations with six each, were joined by typical Grammy contenders like Jay-Z and Kanye West, who also got six nominations. The Black Keys' drummer, Dan Auerbach, is also up for six awards, thanks to his nomination for producer of the year. His band earned five nods, along with R&B singer Miguel and jazz pianist Chick Corea.

"It feels like alternative music is back," said fun. guitarist Jack Antonoff. His band's gold-selling "Some Nights" is up for album of the year, competing with Black Keys' "El Camino," Mumford & Sons' "Babel," Jack White's "Blunderbuss" and "channel ORANGE," the major label debut from Ocean.

Fun. is nominated in all of the major categories, including best new artist, and record and song of the year for its breakthrough anthem "We Are Young."

Ocean, whose mother attended the nominations special, scored nods in three of the top four categories. His song "Thinkin Bout You" — which he originally wrote for another singer — will compete for record of the year with Black Keys' "Lonely Boy" and four No. 1 hits: Taylor Swift's "We Are Never Ever Getting Back Together," ''Somebody I Used to Know" by Gotye and Kimbra, Kelly Clarkson's "Stronger (What Doesn't Kill You)" and "We Are Young" by fun.

Song of the year, too, features some No. 1 hits, including fun. and Clarkson's jams, as well as Carly Rae Jepsen's viral smash "Call Me Maybe." But then there's Ed Sheeran's "The A Team," a slow groove about a homeless prostitute, and Miguel's "Adorn," the R&B singer-songwriter's crossover hit.

"It's like one of those songs that wrote itself and I was the vessel," the 26-year-old said in an phone interview from New York City late Wednesday, where he performed with Trey Songz and Elle Varner.

While Miguel's excited to compete for song of the year, he's more thrilled about his sophomore album's nomination for best urban contemporary album, a new category that recognizes R&B albums with edge and multiple sounds.

"That's a huge complement to say that your entire body of work was the best of the year," he said of "Kaleidoscope Dream." ''That's the one that means the most to me. I'm really hoping maybe, just maybe."

Miguel, along with Gotye, Alabama Shakes and the Lumineers, is part of the pack of nominees who have showcased individuality and have marched to the beat of their own drum in today's music industry.

Though nominated albums by The Black Keys and Mumford & Sons are platinum-sellers, their songs are not regularly heard on Top 40 radio. Electronic and dance music, which has dominated radio airplay for a few years, were left out of the top awards this year. Also, One Direction — the boy band that released two top-selling albums this years and sold-out many arenas — was snubbed for best new artist.

Lionel Richie has one of the year's top-selling albums with his country collaboration collection, "Tuskegee," but he didn't earn any nominations. And Nicki Minaj, who released a gold-selling album this year and had a hit with "Starships," wasn't nominated for a single award.

Jay-Z and West dominated the rap categories, a familiar refrain at the Grammys. Nas scored four nominations, including best rap album for "Life Is Good." Jeff Bhasker, the producer behind fun.'s breakthrough album, also scored four nods.

Swift, who released her latest album, "Red," after the Grammy eligibility date, still scored three nominations, including two for "Safe & Sound" with The Civil Wars. Country acts were mainly left out of the major categories this year, though the genre usually has success at the Grammys. Aside from Swift's pop song competing for record of the year, there is 21-year-old Hunter Hayes, who is up for best new artist against fun., Ocean, Alabama Shakes and the Lumineers.

"I'm so proud to be, as you say, representing country music in the new artist category," said Hayes, who is also nominated for best country album and country solo performance. "I don't even feel worthy of saying that, but it's so cool for me to be able to say that."

Swift hosted the CBS special with LL Cool J and it featured performances by The Who and Maroon 5, who received multiple nominations.

The five-year-old nominations show spent its first year outside Los Angeles, making its debut in Nashville, Tenn., at the Bridgestone Arena. It marked the largest venue the show has been held in.

The 55th annual Grammy Awards take place Feb. 10 in Los Angeles.

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Online:

http://www.grammys.com

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AP Music Writer Chris Talbott and AP Writer Caitlin R. King in Nashville contributed to this report.

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Well: Running in Reverse

This column appears in the Dec. 9 issue of The New York Times Magazine.

Backward running, also known as reverse or retro running, is not as celebrated as barefoot running and will never be mistaken for the natural way to run. But a small body of science suggests that backward running enables people to avoid or recover from common injuries, burn extra calories, sharpen balance and, not least, mix up their daily routine.

The technique is simple enough. Most of us have done it, at least in a modified, abbreviated form, and probably recently, perhaps hopping back from a curb as a bus went by or pushing away from the oven with a roasting pan in both hands. But training with backward running is different. Biomechanically, it is forward motion’s doppelgänger. In a study published last year, biomechanics researchers at the University of Milan in Italy had a group of runners stride forward and backward at a steady pace along a track equipped with force sensors and cameras.

They found that, as expected, the runners struck the ground near the back of their feet when going forward and rolled onto the front of their feet for takeoff. When they went backward though, they landed near the front of their feet and took off from the heels. They tended to lean slightly forward even when running backward. As a result, their muscles fired differently. In forward running, the muscles and tendons were pulled taut during landing and responded by coiling, a process that creates elastic energy (think rubber bands) that is then released during toe-off. When running backward, muscles and tendons were coiled during landing and stretched at takeoff. The backward runners’ legs didn’t benefit from stored elastic energy. In fact, the researchers found, running backward required nearly 30 percent more energy than running forward at the same speed. But backward running also produced far less hard pounding.

What all of this means, says Giovanni Cavagna, a professor at the University of Milan who led the study, is that reverse running can potentially “improve forward running by allowing greater and safer training.”

It is a particularly attractive option for runners with bad knees. A 2012 study found that backward running causes far less impact to the front of the knees. It also burns more calories at a given pace. In a recent study, active female college students who replaced their exercise with jogging backward for 15 to 45 minutes three times a week for six weeks lost almost 2.5 percent of their body fat.

And it aids in balance training — backward slow walking is sometimes used as a therapy for people with Parkinson’s and is potentially useful for older people, whose balance has grown shaky.

But it has drawbacks, Cavagna says — chiefly that you can’t see where you’re going. “It should be done on a track,” he says, “or by a couple of runners, side by side,” one facing forward.

It should be implemented slowly too, because its unfamiliar motion can cause muscle fatigue. Intersperse a few minutes periodically during your regular routine, Cavagna says. Increase the time you spend backward as it feels comfortable.

The good news for serious runners is that backward does not necessarily mean slow. The best recorded backward five-kilometer race time is 19:31, faster than most of us can hit the finish line with our best foot forward.

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Senate Passes Russian Trade Bill, With Conditions

The Senate voted on Thursday to finally eliminate cold war-era trade restrictions on Russia, but at the same time it condemned Moscow for human rights abuses, threatening to further strain an already fraught relationship with the Kremlin.

The Senate bill, which passed the House of Representatives last month, now goes to President Obama, who has opposed turning a trade bill into a statement on the Russian government’s treatment of its people.

But with such overwhelming support in Congress – the measure passed the Senate 92 to 4 and the House 365 to 43 – the White House has had little leverage to press its case.

And President Obama has shown little desire to pick a fight in which he would appear to be siding with the Russians on such a delicate issue.

Speaking to reporters shortly after the Senate vote, Jay Carney, the White House press secretary, said the president was committed to signing the bill.

The most immediate effect of the bill will be to formally normalize trade relations with Russia after nearly 40 years. Since the 1970s, commerce between Russia and the United States has been subject to restrictions that were designed to punish Communist nations that refused to allow their citizens to leave freely.

While presidents have waived the restrictions since the cold war ended — allowing them to remain on the books as a symbolic sore point with the Russians — the issue took on new urgency this summer after Russia joined the World Trade Organization. American businesses can take advantage of lower trade tariffs only with nations that enjoy normalized trade status

By some estimates, trade with Russia is expected to double after the limits are lifted.

But another effect of the bill – and one that has Russian officials furious with Washington – will be to require that the federal government freeze the assets of Russians implicated in human rights abuses and to deny them visas.

Lawmakers on Capitol Hill were inspired to attach those provisions to the trade legislation because of the case of Sergei L. Magnitsky, a Russian lawyer who was tortured and died in prison in 2009 after he exposed a government tax fraud scheme.

During the Senate debate, it was Mr. Magnitsky’s case, and not Russia’s trade status, that occupied most of the time.

One by one, Democratic and Republican senators alike rose to denounce Russian officials for their disregard for basic freedoms.

“This culture of impunity in Russia has been growing worse and worse,” said Senator John McCain, an Arizona Republican. “There are still many people who look at the Magnitsky Act as anti-Russia. I disagree,” he added. “Ultimately passing this legislation will place the United States squarely on the side of the Russian people and the right side of Russian history, which appears to be approaching a crossroads.”

Russian officials denounced the Senate vote.

“This initiative is intended to restrict the rights of Russian citizens, which we consider completely unjust and baseless,” said Konstantin Dolgov, the Russian foreign ministry’s human rights envoy, in comments to the Interfax news agency in Brussels. “This is an attempt to interfere in our internal affairs, in the authority of Russia’s investigative and judicial organs, which continue to investigate the Magnitsky case.”

Initially there was pressure on the Senate to pass a bill that punished human rights violators from all nations, not just those who are Russian. But the House bill applied only to Russia. And the Senate followed suit, as supporters of the bill wanted something that could pass quickly and without requiring a complicated back-and-forth with the House.

Ellen Barry contributed reporting from Moscow.

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Obama Tells G.O.P. Not to Tie Debt Ceiling to Fiscal Debate

Doug Mills/The New York Times

President Obama spoke to members of the Business Roundtable in Washington on Wednesday.

WASHINGTON — President Obama warned Republicans on Wednesday not to use the debt ceiling as leverage on spending and tax decisions, saying he refused to engage again in the sort of brinkmanship that brought the country close to default last year and damaged its credit rating.

In a speech to the Business Roundtable, Mr. Obama said, “That is a bad strategy for America, it’s a bad strategy for your businesses and it is not a game that I will play.”

“Everybody here is concerned about uncertainty,” he added. “There’s no uncertainty like the prospect that the United States of America, the largest economy, that holds the world’s reserve currency, potentially defaults on its debts.”

While saying he would not “play that game,” a phrase he repeated, Mr. Obama did not say what he would do in response, but some Democrats have urged him in the past to simply raise the borrowing limit using his own executive authority and let the courts determine if he overstepped his constitutional bounds.

He seemed to embrace a suggestion by John Engler, the Business Roundtable president, to raise the debt ceiling enough to last five years. “John is exactly right when he says that the only thing that the debt ceiling is good for as a weapon is just to destroy your credit rating,” Mr. Obama said.

Mr. Obama was reacting to reports that Republican leadership officials were looking for a fallback in the current debate to avert an end-of-the-year fiscal crisis. Some Republicans foresee accepting Mr. Obama’s call to extend Bush-era tax cuts for the middle class while allowing them to expire for the wealthiest Americans, and then taking up the fight again when the nation’s debt rises to the point that the statutory borrowing limit needs to be raised again, which could be in late January or February.

Republicans view any vote to raise the debt ceiling as a chance to enforce more fiscal discipline on Mr. Obama. Speaker John A. Boehner has said any increase in borrowing capacity should be offset by spending cuts that exceed the increased debt. Mr. Obama has responded by proposing to take away the Congressional power to approve increases in the debt ceiling, but Mr. Boehner said last weekend that “Congress is never going to give up this power.”

Appearing before reporters on Wednesday, Mr. Boehner and other House Republican leaders implored Mr. Obama to sit down with them and begin negotiating in earnest to head off the looming fiscal crisis, but with flattery and aggravation, they made it clear that they were now playing on his turf.

Mr. Boehner and his leadership team did not give an inch on their opposition to raising tax rates on the wealthy or their insistence that any deficit-reduction plan emphasize spending cuts. But the speaker sounded exasperated as he insisted that he had moved toward the president’s position by agreeing to $800 billion in higher tax revenue over 10 years.

“The revenues we’re putting on the table will come from guess who? The rich,” he said, his voice rising. “There are ways to limit deductions, close loopholes and have the same people pay more of their money to the federal government without raising tax rates.”

Representative Peter Roskam of Illinois, a member of the Republican leadership, appealed to Mr. Obama’s own view of himself as a politician able to rise above partisanship, a characterization Republicans have rarely, if ever, agreed with.

“I’ve seen an attribute in President Obama when we served together in the Illinois State Senate, where he was able to rise above donkeys and elephants and transform some very controversial issues in a way that was powerful,” Mr. Roskam said, imploring the president to eschew the politics of the victor and seize “an unbelievable opportunity to be a transformational president, that is to bring the country together.”

The dueling public appearances underscored how far apart the two sides were, at least as a matter of principle. Mr. Obama’s plan calls for $1.6 trillion in new taxes over 10 years, mainly through allowing rates to rise on income above $200,000 a year for individuals or $250,000 for families. He has also revived a year-old plan to trim health care and other mandatory spending by $600 billion over 10 years, but he also wants to spend $50 billion in the short term to help the economy.

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Possible Wintour appointment gets London talking

LONDON (AP) — Thomas Jefferson, Ben Franklin, John Quincy Adams ... and now Anna Wintour?

A report suggesting that the influential editor-in-chief of Vogue is one of the candidates being considered for the top U.S. diplomatic post in France or Britain has sparked spirited debate about her qualifications, exciting Britain's glamour-hungry tabloids but raising hackles at the conservative Daily Telegraph.

"Anna Wintour may be an enticing pick for a celebrity-fixated White House," wrote Nile Gardner in the Telegraph. "But she is eminently unsuitable for America's most prestigious diplomatic posting."

The possibility that the British-born Wintour would move into London's grand ambassadorial residence was raised several years ago by The Guardian newspaper — where her brother Patrick is a prominent journalist — and again this week by Bloomberg News, which based its report on "two people familiar with the matter."

Officials at the U.S. Embassy in London said they would not speculate on President Obama's eventual choice for a successor to Ambassador Louis Susman, who has announced plans to step down. White House officials have also refused to comment.

Officials caution that a decision is months away and would only follow the appointment of a new secretary of state to replace outgoing Hillary Clinton and would also include a thorough vetting process.

Guardian fashion writer Jess Cartner-Morley said the editor — the model for the imperious character played by Meryl Streep in "The Devil Wears Prada" movie — would be well-suited for an ambassadorial position.

"Wintour is generally acknowledged as whipsmart and extremely hard-working," she wrote. "She is enormously charismatic, a born networker and a formidable fundraiser."

Cartner-Morley also challenged the dismissive view that Wintour's many years in the fashion industry are not enough, citing recent ambassadorial choices of a retired investment banker and a retired car dealership owner.

"Is a career as one of the biggest global players in an industry estimated to be worth $900 billion to the world economy really so inferior and shallow by comparison?" the writer asked.

Vogue spokeswoman Megan Salt in New York said Wednesday said that Wintour is very happy with her present job.

Wintour raised $40 million for Obama's re-election through a number of campaigns and star-studded dinners she co-hosted with some of the most powerful people in the entertainment and fashion worlds. In August, she teamed up with movie mogul Harvey Weinstein for a fundraising dinner, after a successful party at Sarah Jessica Parker's Manhattan home in July.

The ambassadorial posts in France and Britain — formally known as the Court of St. James's — are among the most coveted in the diplomatic ranks. They also typically go to wealthy individuals willing to use personal funds to buttress the government-provided entertainment budget.

Wintour, 63, is best-known for her trademark glossy bob hairstyle, oversized sunglasses and haughty demeanor. Born in London, she started in fashion journalism at Harper's Bazaar and New York magazine, and after working at the helm of other glossies became editor-in-chief at U.S. Vogue in 1988.

Carne Ross, a former British diplomat who now runs a New York-based diplomatic advisory group, said Wintour's skills — "honed in the vicious world of the fashion industry" — would qualify her for a diplomatic posting.

Ross said a large part of an ambassador's job involves taking part in social gatherings, something Wintour would be comfortable with. Often most of the real political work is done by direct communications between the White House and the prime minister's office at Downing Street, he said.

"That diminishes the political significance of the ambassador's role," he said.

Mary Jo Jacobi, a presidential adviser during two Republican administrations, said Wintour would be an unusual choice but possibly an effective one.

"Vogue is a very successful, very large publication, and she has experience with big budgets and with challenging, difficult people," Jacobi said. "She knows how to marshal resources. And her job has involved a great deal of diplomacy."

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Willis Whitfield, Clean Room Inventor, Dies at 92

The enemy was very small but it was everywhere. World peace, medical advancement, iTunes — all would eventually be threatened.

Half a century ago, as a rapidly changing world sought increasingly smaller mechanical and electrical components and more sanitary hospital conditions, one of the biggest obstacles to progress was air, and the dust and germs it contains.

Stray particles a few microns wide could compromise the integrity of a circuit board of a nuclear weapon. Unchecked bacteria could quickly infect a patient after a seemingly successful operation. Microprocessors, not yet in existence, would have been destroyed by dust. After all, an average cubic foot of air contained three million microscopic particles, and even the best efforts at vacuuming and wiping down a high-tech work space could only reduce the rate to one million.

Then, in 1962, Willis Whitfield invented the clean room.

“People said he was a fraud,” recalled Gilbert V. Herrera, the director of microsystems science and technology at Sandia National Laboratories in Albuquerque. “But he turned out to be right.”

Mr. Whitfield, who worked at Sandia from 1954 to 1984, died on Nov. 12 in Albuquerque. He was 92. The cause was prostate cancer, his wife, Belva, said.

His clean rooms blew air in from the ceiling and sucked it out from the floor. Filters scrubbed the air before it entered the room. Gravity helped particles exit. It might not seem like a complicated concept, but no one had tried it before. The process could completely replace the air in the room 10 times a minute.

Particle detectors in Mr. Whitfield’s clean rooms started showing numbers so low — a thousand times lower than other methods — that some people did not believe the readings, or Mr. Whitfield. He was questioned so much that he began understating the efficiency of his method to keep from shocking people.

“I think Whitfield’s wrong,” a scientist from Bell Labs finally said at a conference where Mr. Whitfield spoke. “It’s actually 10 times better than he’s saying.”

Willis James Whitfield was born in Rosedale, Okla., on Dec. 6, 1919. In addition to his wife, his survivors include his sons, James and Joe; a sister, Amy Blackburn; and a brother, Lawrence.

Mr. Whitfield became fascinated with electronics as a young man and received a two-year degree in the field after high school. He served in the Navy late in World War II, working with experimental electronic systems for aircraft. In 1952, he received a bachelor’s degree in physics and math from Hardin-Simmons University in Abilene, Tex.

By 1954 he was working at Sandia, which was involved in making parts for nuclear weapons and at the time was overseen by the Atomic Energy Commission. Mr. Whitfield’s duties soon included contamination control. By 1960, he had established his basic idea for the clean room.

“I thought about dust particles,” Mr. Whitfield told Time magazine in 1962. “Where are these rascals generated? Where do they go?”

The clean room was patented through Sandia, and the government shared it freely among manufacturers, hospitals and other industries.

Mr. Whitfield’s original clean room was only about six feet high, built as a small, self-contained unit. Some modern electronic devices, including the iPhone, are now built in China in huge clean rooms in structures that are more than a million square feet. Workers wear protective clothing, and other anticontamination methods have been added, but they still depend on Mr. Whitfield’s approach to suck up dust.

“Relative to these electronics, the particles are just massive boulders that would short out all of your electronics and make them not work,” Mr. Herrera said. “The core technology, just the cleaning part, hasn’t really changed a lot.”

Mrs. Whitfield said she was often been asked if her husband was a particularly fastidious man, and she always noted that he tended not to put his shoes away. He did live in a tidy house, though, and colleagues say he never tired of getting out a flashlight and shining it sideways across his coffee table to illuminate the prevalence of tiny dust particles that most people never notice.

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DealBook: Freeport to Buy Plains Exploration and McMoRan

Freeport-McMoRan Copper and Gold said on Wednesday that it would buy two oil and natural gas companies, Plains Exploration and Production and the McMoRan Exploration Company, in a return to the energy business.

The two transactions will create a natural resources titan worth about $60 billion, including debt, and will formally reunite Freeport with McMoRan, the oil exploration company it spun off in 1994.

Under the terms of the deals, Freeport will pay about $6.9 billion in cash and stock for Plains. That offer consists of $25 a share in cash and 0.6531 of a Freeport share, worth about $50 a share based on Tuesday’s closing prices.

And Freeport will pay $14.75 a share in cash and 1.15 units of a trust that will hold a 5 percent interest in future production of McMoRan’s deepwater exploration operations. Freeport and Plains together already own about 36 percent of the smaller exploration company. All told, the transaction values McMoRan at about $3.4 billion.

“This transaction will enable us to add assets with exceptional exploration and development potential to a world-class mining company to create a premier minerals and oil and gas business focused on value creation for shareholders,” James R. Moffett, Freeport’s chairman, said in a statement.

JPMorgan Chase is providing $9.5 billion to help pay for the cash portion of the deal and to repay some of Plains’s existing debt.

Freeport was advised by Credit Suisse and the law firm Wachtell, Lipton, Rosen & Katz. Plains was advised by Barclays and the law firm Latham & Watkins. McMoRan was advised by Evercore Partners and the law firm Weil, Gotshal & Manges.

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Republicans Balk at Obama’s Short-Term Stimulus

WASHINGTON — Republicans and Democrats are struggling to find common ground on a long-term debt deal. But as economic growth has weakened this quarter, they are at odds over what the flagging recovery needs in the immediate future, too.

The Obama administration is arguing that the sluggish economy requires a shot in the arm, and it included tens of billions of dollars of little-noticed stimulus measures in its much-noticed proposal to Congressional leaders last week. But Republicans have countered that the country cannot afford to widen the deficit further, and have balked at including the measures in any eventual deal.

The stimulus measures in the White House’s debt proposal stem from President Obama’s long-since-scuttled American Jobs Act proposal, and include a continuation of emergency support for long-term unemployed workers, an extension of the payroll tax cut, billions in infrastructure investment and a mortgage-refinancing proposal.

“We have a very good plan, a very good mix of tax reforms” and savings, said Timothy F. Geithner, the Treasury secretary, on ABC News last weekend. “We can create some room to invest in things that make America stronger, like rebuilding America’s infrastructure.”

But in his counteroffer, made on Monday, House Speaker John A. Boehner of Ohio did not mention any such measures. Republican aides said that securing stimulus was not the main priority given concerns about the country’s fiscal state, and they appeared to be holding back on supporting any stimulus measures to bolster their bargaining position.

“The president is asking for $1.6 trillion worth of new revenue over 10 years, twice as much as he has been asking for in public,” Mr. Boehner said on “Fox News Sunday.” “He has stimulus spending in here that exceeded the amount of new cuts that he was willing to consider. It was not a serious offer.”

As the debate rages in Washington, data has shown the recovery once again sputtering, with the underlying rate of growth too slow to bring down the unemployment rate by much and some of the economic momentum gained in the fall dissipating in the winter.

The weakness comes from the manufacturing and exports slowdown, disruptions from Hurricane Sandy and sluggish underlying wage and spending growth. The storm hit the economic juggernauts of New Jersey and New York hard, pushing down work and wages. On top of that, consumers and businesses might be holding back out of concern for the tax increases and spending cuts scheduled to take place at the first of the year unless Congress and the administration come to some agreement.

In recent weeks, many forecasters have slashed their estimates of growth in the fourth quarter. Macroeconomic Advisers, for instance, estimates the economy is expanding at only a 0.8 percent annual pace, down from 2.8 percent in the third quarter.

“It’s a pretty dramatic slowdown,” said Joel Prakken, the chairman of Macroeconomic Advisers, the St. Louis-based forecasting firm. “There’s weak demand, which just does not portend well for the coming quarters,” he said.

RBC Capital Markets put the current pace of growth at just a 0.2 percent annual rate. The chance of seeing “a negative sign in front of fourth-quarter gross domestic product is nontrivial, to say the least,” Tom Porcelli, chief United States economist at RBC Capital Markets, wrote in a note to clients last week.

If Congress and the Obama administration are able to agree on a budget deal, economists expect that economic growth will pick up in 2013. Stock markets might cheer, businesses might feel more confident about hiring workers and signing contracts and investors might feel more comfortable investing if Congress struck a deal.

The turnaround in the housing market, rising auto sales and higher consumer confidence all bode well, they note. Refinancing — supported by the Federal Reserve’s effort to buy mortgage-backed securities — would also flush more money into households.

Much of the current slowdown might be a result of temporary factors that might fade away, like fluctuations in how factories stock their inventories or the lingering effects of Hurricane Sandy.

Still, recent economic data has come in surprisingly weak. On Monday, the Institute for Supply Management reported that the manufacturing sector contracted in November, with an index of purchasing activity falling to the lowest level since mid-2009.

The report said manufacturers expressed “concern over how and when the fiscal cliff issue will be resolved” as well as a slowdown in demand.

Over all, unemployment remains high, and wage growth weak. Global growth has gone through a slowdown as well. It all adds up to a United States recovery that might remain vulnerable to shocks — like the Midwestern drought that slashed agricultural production this year, or the Japanese tsunami that depressed exports in 2011, or the long-simmering European debt crisis that has spooked financial markets — for years to come.

Economists remain nervous about the combination of the already weak recovery and the prospect of the tax increases and spending cuts — with billions of dollars of fiscal contraction likely to take place even if the White House and Congress reach a deal.

“We are worried about going too fast, too quick on the cuts side,” said former Senator Pete V. Domenici, Republican of New Mexico, on Monday at a meeting with reporters at the Bipartisan Policy Center. He was presenting a plan for a deficit reduction framework along with Alice M. Rivlin, the budget director under President Bill Clinton.

Ms. Rivlin added, “We don’t need an austerity budget.” Indeed, the two budget experts proposed including a one-year income tax rebate to give the recovery some breathing room.

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Is the iPad Mini as Good as the iPad?

The iPad Mini‘s screen doesn’t have the same “resolutionary” Retina display as its bigger brother, but don’t worry: the Apple snobs appear to have gotten over that. After spending time with his new baby-tablet, The New York Times‘s Nick Bilton gave in, calling the gadget his new “Desert Island Device.” (It replaced his iPhone, by the way.) The inferior screen had worried Bilton like it had others, but no longer: ”I used it for two weeks and my concerns about the screen’s quality are completely irrelevant.” It’s not that Bilton prefers the “fuzzy” screen, as he called it. But the portability of the lightweight Mini outweighs that for him, making this tablet, in his opinion, really the best tablet Apple has ever made.

RELATED: Prepare for an iPad Mini This Month

Considering all the fawning over the Retina display on the iPad proper, it’s pretty amazing to see reviewers toss that upgrade for something that Steve Jobs forbid the company to create. Bilton’s not the only one to prefer the new cousin, even if it is technically worse. Noted Apple-phile Jonathan Gruber said he hadn’t touched the fourth-generation iPad that Apple released this year as well “I’ve gone small and fuzzy,” he wrote. When the Retina display first came out, Gruber called it “pure joy” for his “dream iPad.” But a funny thing happened on the way out of the hype cycle: Apple put out something the masses were supposed to like more than the techies, and that just made everyone like it even more. Call it a holiday miracle, but the Apple snobs may be snobs no more.

Gadgets News Headlines – Yahoo! News

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Royal pregnancy highlights succession issues

LONDON (AP) — The business of monarchy has always been stacked in favor of men. Not any more — or so the British government promises.

The first child of Prince William and his wife Kate will be born a king or a queen in waiting, under changes to succession rules designed to overturn centuries of tradition and give royal daughters the same rights as sons.

Deputy Prime Minister Nick Clegg pledged Tuesday that the law on succession would be changed at the "earliest opportunity." He said "whether the baby is a boy or a girl, they will have an equal claim to the throne."

"Born to rule, be it a boy or a girl" proclaimed the Daily Mail, which noted that the baby had "already made royal and constitutional history" even before it is born.

Not so fast, caution others.

A royal saga needs a touch of uncertainty, and experts point out that despite politicians' promises, the law giving males primacy in succession has not yet been changed — and the clock is ticking.

"We know that the wishes of politicians are written in water," said royal historian Robert Lacey. "Law only becomes law when the law is made — and the law has not been made."

Meanwhile, the Duchess of Cambridge — the former Kate Middleton — was "continuing to feel better" Tuesday as she spent a second day in a London hospital being treated for acute morning sickness, St. James's Palace said. Photographers and camera crews from around the world camped outside, eager for news on the royal pregnancy. Officials said earlier the duchess was not yet 12 weeks pregnant.

Congratulations poured in from around the world at the good news, which follows Kate and William's lavish royal wedding in 2011 and Queen Elizabeth II's Diamond Jubilee celebrations this year.

Officials say Kate and William's baby will displace Prince Harry, William's younger brother, as third in line to the throne — and the child will stay there, even if she is a princess who later acquires a younger brother.

For centuries, preference was given to male heirs, so a first-born princess would be leapfrogged in the succession by a younger brother. As a result, there have been some 40 kings of England since the Norman Conquest in 1066, but only seven queens.

Last year, the leaders of Britain and the 15 former colonies that have the queen as their head of state informally agreed to establish new rules giving female children equal status with males in the order of succession — something that will require legal changes in each country.

"Put simply, if the Duke and Duchess of Cambridge were to have a little girl, that girl would one day be our queen," Prime Minister David Cameron said at the time.

Months passed with little progress. But the prospect of a royal birth next year seems to have focused political minds, at least somewhat: Clegg announced Tuesday that all 16 nations had now formally agreed to change their laws.

Clegg also said a Succession to the Crown Bill would be introduced in Britain's House of Commons as soon as the parliamentary schedule permits.

"Notwithstanding a few parliamentary turns of the wheel, this is now going to happen," Clegg said, adding that "the old-fashioned rules ... have been swept aside."

In Britain, implementing the new rule means changing bits of several key constitutional documents, including the Bill of Rights and Coronation Oath Act of 1688, the 1701 Act of Settlement and the 1706 Act of Union with Scotland.

Lacey said if it is not done by the time the baby is born, uncertainty is bound to remain. A first-born girl could find her younger brother challenging her for the throne on the grounds that the law had not been changed at the time of her birth.

And what if Kate has twins? Experts say the firstborn will be the heir — but things could get complicated if the succession rules are not changed before the birth.

"Say they have twins and a girl comes out first and 20 years later the boy turns out to be the more attractive character," Lacey said. "People will say that at the time the law meant the boy should have inherited."

Rebecca Probert, a professor at the University of Warwick's school of law, said there are other issues that the law should address to bring the monarchy up to date.

British monarchs are banned from marrying Roman Catholics, but not members of other faiths — something Clegg said the new law would change.

An heir also cannot marry without the monarch's permission, and can't marry in a civil ceremony — even though Prince Charles, William's father, did just that when he wed his second wife, Camilla Parker Bowles, in 2005.

Probert said it's important "to have a clause in there confirming that monarchs are able to marry in the same ways that are open to their subjects."

But she thinks that may prove too complicated for lawmakers in the short term.

"They might decide in the interests of time to stick to the single issue of gender and leave the rest to a more convenient time — which tends to be never," she said.

___

Jill Lawless can be reached on http://Twitter.com/JillLawless

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Software Programs Help Doctors Diagnose, but Can’t Replace Them

SAN FRANCISCO — The man on stage had his audience of 600 mesmerized. Over the course of 45 minutes, the tension grew. Finally, the moment of truth arrived, and the room was silent with anticipation.

At last he spoke. “Lymphoma with secondary hemophagocytic syndrome,” he said. The crowd erupted in applause.

Professionals in every field revere their superstars, and in medicine the best diagnosticians are held in particularly high esteem. Dr. Gurpreet Dhaliwal, 39, a self-effacing associate professor of clinical medicine at the University of California, San Francisco, is considered one of the most skillful clinical diagnosticians in practice today.

The case Dr. Dhaliwal was presented, at a medical  conference last year, began with information that could have described hundreds of diseases: the patient had intermittent fevers, joint pain, and weight and appetite loss.

To observe him at work is like watching Steven Spielberg tackle a script or Rory McIlroy a golf course. He was given new information bit by bit — lab, imaging and biopsy results. Over the course of the session, he drew on an encyclopedic familiarity with thousands of syndromes. He deftly dismissed red herrings while picking up on clues that others might ignore, gradually homing in on the accurate diagnosis.

Just how special is Dr. Dhaliwal’s talent? More to the point, what can he do that a computer cannot? Will a computer ever successfully stand in for a skill that is based not simply on a vast fund of knowledge but also on more intangible factors like intuition?

The history of computer-assisted diagnostics is long and rich. In the 1970s, researchers at the University of Pittsburgh developed software to diagnose complex problems in general internal medicine; the project eventually resulted in a commercial program called Quick Medical Reference. Since the 1980s, Massachusetts General Hospital has been developing and refining DXplain, a program that provides a ranked list of clinical diagnoses from a set of symptoms and laboratory data.

And I.B.M., on the heels of its triumph last year with Watson, the Jeopardy-playing computer, is working on Watson for Healthcare.

In some ways, Dr. Dhaliwal’s diagnostic method is similar to that of another I.B.M. project: the Deep Blue chess program, which in 1996 trounced Garry Kasparov, the world’s best player at the time, to claim an unambiguous victory in the computer’s relentless march into the human domain.

Although lacking consciousness and a human’s intuition, Deep Blue had millions of moves memorized and could analyze as many each second. Dr. Dhaliwal does the diagnostic equivalent, though at human speed.

Since medical school, he has been an insatiable reader of case reports in medical journals, and case conferences from other hospitals. At work he occasionally uses a diagnostic checklist program called Isabel, just to make certain he hasn’t forgotten something. But the program has yet to offer a diagnosis that Dr. Dhaliwal missed.

Dr. Dhaliwal regularly receives cases from physicians who are stumped by a set of symptoms. At medical conferences, he is presented with one vexingly difficult case and is given 45 minutes to solve it. It is a medical high-wire act; doctors in the audience squirm as the set of facts gets more obscure and all the diagnoses they were considering are ruled out. After absorbing and processing scores of details, Dr. Dhaliwal must commit to a diagnosis. More often than not, he is right.

When working on a difficult case in front of an audience, Dr. Dhaliwal puts his entire thought process on display, with the goal of “elevating the stature of thinking,” he said. He believes this is becoming more important because physicians are being assessed on whether they gave the right medicine to a patient, or remembered to order a certain test.

Without such emphasis, physicians and training programs might forget the importance of having smart, thoughtful doctors. “Because in medicine,” Dr. Dhaliwal said, “thinking is our most important procedure.”

He added: “Getting better at diagnosis isn’t about figuring out if someone has one rare disease versus another. Getting better at diagnosis is as important to patient quality and safety as reducing medication errors, or eliminating wrong site surgery.”

Clinical Precision

Dr. Dhaliwal does half his clinical work on the wards of the San Francisco V. A. Medical Center, and the other half in its emergency department, where he often puzzles through multiple mysteries at a time.

One recent afternoon in the E.R., he was treating a 66-year-old man who was mentally unstable and uncooperative. He complained of hip pain, but routine lab work revealed that his kidneys weren’t working and his potassium was rising to a dangerous level, putting him in danger of an arrhythmia that could kill him — perhaps within hours. An ultrasound showed that his bladder was blocked.

There was work to be done: drain the bladder, correct the potassium level. It would have been easy to dismiss the hip pain as a distraction; it didn’t easily fit the picture. But Dr. Dhaliwal’s instinct is to hew to the ancient rule that physicians should try to come to a unifying diagnosis. In the end, everything — including the hip pain — was traced to metastatic prostate cancer.

“Things can shift very quickly in the emergency room,” Dr. Dhaliwal said. “One challenge of this, whether you use a computer or your brain, is deciding what’s signal and what’s noise.” Much of the time, it is his intuition that helps figure out which is which.

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Republicans Balk at Obama’s Short-Term Stimulus

WASHINGTON — Republicans and Democrats are struggling to find common ground on a long-term debt deal. But as economic growth has weakened this quarter, they are at odds over what the flagging recovery needs in the immediate future, too.

The Obama administration is arguing that the sluggish economy requires a shot in the arm, and it included tens of billions of dollars of little-noticed stimulus measures in its much-noticed proposal to Congressional leaders last week. But Republicans have countered that the country cannot afford to widen the deficit further, and have balked at including the measures in any eventual deal.

The stimulus measures in the White House’s debt proposal stem from President Obama’s long-since-scuttled American Jobs Act proposal, and include a continuation of emergency support for long-term unemployed workers, an extension of the payroll tax cut, billions in infrastructure investment and a mortgage-refinancing proposal.

“We have a very good plan, a very good mix of tax reforms” and savings, said Timothy F. Geithner, the Treasury secretary, on ABC News last weekend. “We can create some room to invest in things that make America stronger, like rebuilding America’s infrastructure.”

But in his counteroffer, made on Monday, House Speaker John A. Boehner of Ohio did not mention any such measures. Republican aides said that securing stimulus was not the main priority given concerns about the country’s fiscal state, and they appeared to be holding back on supporting any stimulus measures to bolster their bargaining position.

“The president is asking for $1.6 trillion worth of new revenue over 10 years, twice as much as he has been asking for in public,” Mr. Boehner said on “Fox News Sunday.” “He has stimulus spending in here that exceeded the amount of new cuts that he was willing to consider. It was not a serious offer.”

As the debate rages in Washington, data has shown the recovery once again sputtering, with the underlying rate of growth too slow to bring down the unemployment rate by much and some of the economic momentum gained in the fall dissipating in the winter.

The weakness comes from the manufacturing and exports slowdown, disruptions from Hurricane Sandy and sluggish underlying wage and spending growth. The storm hit the economic juggernauts of New Jersey and New York hard, pushing down work and wages. On top of that, consumers and businesses might be holding back out of concern for the tax increases and spending cuts scheduled to take place at the first of the year unless Congress and the administration come to some agreement.

In recent weeks, many forecasters have slashed their estimates of growth in the fourth quarter. Macroeconomic Advisers, for instance, estimates the economy is expanding at only a 0.8 percent annual pace, down from 2.8 percent in the third quarter.

“It’s a pretty dramatic slowdown,” said Joel Prakken, the chairman of Macroeconomic Advisers, the St. Louis-based forecasting firm. “There’s weak demand, which just does not portend well for the coming quarters,” he said.

RBC Capital Markets put the current pace of growth at just a 0.2 percent annual rate. The chance of seeing “a negative sign in front of fourth-quarter gross domestic product is nontrivial, to say the least,” Tom Porcelli, chief United States economist at RBC Capital Markets, wrote in a note to clients last week.

If Congress and the Obama administration are able to agree on a budget deal, economists expect that economic growth will pick up in 2013. Stock markets might cheer, businesses might feel more confident about hiring workers and signing contracts and investors might feel more comfortable investing if Congress struck a deal.

The turnaround in the housing market, rising auto sales and higher consumer confidence all bode well, they note. Refinancing — supported by the Federal Reserve’s effort to buy mortgage-backed securities — would also flush more money into households.

Much of the current slowdown might be a result of temporary factors that might fade away, like fluctuations in how factories stock their inventories or the lingering effects of Hurricane Sandy.

Still, recent economic data has come in surprisingly weak. On Monday, the Institute for Supply Management reported that the manufacturing sector contracted in November, with an index of purchasing activity falling to the lowest level since mid-2009.

The report said manufacturers expressed “concern over how and when the fiscal cliff issue will be resolved” as well as a slowdown in demand.

Over all, unemployment remains high, and wage growth weak. Global growth has gone through a slowdown as well. It all adds up to a United States recovery that might remain vulnerable to shocks — like the Midwestern drought that slashed agricultural production this year, or the Japanese tsunami that depressed exports in 2011, or the long-simmering European debt crisis that has spooked financial markets — for years to come.

Economists remain nervous about the combination of the already weak recovery and the prospect of the tax increases and spending cuts — with billions of dollars of fiscal contraction likely to take place even if the White House and Congress reach a deal.

“We are worried about going too fast, too quick on the cuts side,” said former Senator Pete V. Domenici, Republican of New Mexico, on Monday at a meeting with reporters at the Bipartisan Policy Center. He was presenting a plan for a deficit reduction framework along with Alice M. Rivlin, the budget director under President Bill Clinton.

Ms. Rivlin added, “We don’t need an austerity budget.” Indeed, the two budget experts proposed including a one-year income tax rebate to give the recovery some breathing room.

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In ‘Fiscal Cliff’ Talks, First Step Is the Hardest

WASHINGTON — For all the growing angst over the state of negotiations to head off a fiscal crisis in January, the parties are farthest apart on a relatively small part of the overall deficit reduction program — the down payment.

President Obama and the House speaker, John A. Boehner, are in general agreement on the overarching issue: that the relevant Congressional committees must sit down next year and work out changes to the tax code and entitlement programs to save well more than $1 trillion over the next decade.

But before that work begins, both men want Congress to approve a first installment on deficit reduction that would replace the automatic spending cuts and tax increases that make up the “fiscal cliff,” while signaling Washington’s seriousness about getting its fiscal house in order. That is where the chasm lies in size and scope.

Mr. Obama says the down payment should be large, real and made up almost completely of tax increases on top incomes. He is putting such emphasis on the tax increases partly because he and Congressional leaders last year agreed on some spending cuts over the next decade but have yet to agree on any tax increases.

Republicans have countered by arguing for a smaller down payment that must include immediate savings from Medicare and other entitlements. Republicans, using almost the mirror-image language of Mr. Obama, have said that they do not want to agree to specific tax increases and vague promises of future spending cuts.

“I think there’s a lot of confusion between the initial down payment and the framework. That’s for sure,” said Senator Kent Conrad of North Dakota, chairman of the Senate Budget Committee and part of a bipartisan “Gang of Six” senators who devised the two-stage process.

The two sides are trying to get to a deal that would start with a specific down payment and then fix targets for larger savings in the tax code and entitlement programs. They are expected to spend much of the next year hashing out the specific policy changes needed to hit those targets.

The argument over the size of the down payment is critical. Republicans and Democrats alike worry that canceling roughly $600 billion in deficit-reducing tax increases and spending cuts next year might spook financial markets, which could take the move as proof that the United States’ fiscal problems are politically intractable.

But neither side believes Congress could meaningfully overhaul the main drivers of future deficits — Medicare and Medicaid — in the four weeks that remain before the fiscal deadline.

“Entitlement reform is a big step, and it affects tens of millions of people,” said Senator Richard J. Durbin, Democrat of Illinois and another architect of the two-stage framework. “It’s not just a matter of cutting spending in an appropriation. It’s changing policy. And that’s why I was reluctant to include it in the down-payment conversation. I want this to be a thoughtful effort on both sides that doesn’t jeopardize this program.”

Republican leaders have said that they are willing to raise new revenues in a broad deficit deal, but they want taxes to rise by closing loopholes and curbing tax deductions and credits — a tall order for Congress in a year, let alone a month. They explicitly do not want to allow tax rates to rise on income over $250,000, an issue that is becoming the main stumbling block in the talks.

Mr. Obama is seeking to lock in $1.6 trillion in higher revenue as the bulk of the first stage of deficit reductions before stage two even begins. House Republicans say the down payment should be at least $110 billion, the value of the automatic spending cuts they would cancel next year, and they want those savings to come largely from cuts in Medicare and other benefit programs.

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Nokia Siemens to sell optical networks unit

FRANKFURT (Reuters) – Mobile telecoms equipment joint venture Nokia Siemens Networks, which is focusing on its core business, is to sell its optical fiber unit to Marlin Equity Partners for an undisclosed sum.

Up to 1,900 employees, mainly in Germany and Portugal, will be transferred to the new company, NSN said on Monday.

The company, owned by Nokia and Siemens, has sold a number of product lines since it last year announced plans to divest non-core assets and cut 17,000 jobs, nearly a quarter of its total workforce.

Nordea Markets analyst Sami Sarkamies said he expected more divestments after the optical unit deal. This disposal was a small surprise, he said, because NSN needed some optical technology – where data is transmitted by pulses of light – for its main mobile broadband business.

The move may hint the company is preparing itself for further consolidation in the sector by cutting overlaps with other players, Sarkamies said.

The telecom equipment market is going through rough times with stiff competition. French Alcatel-Lucent is also cutting costs.

($ 1 = 0.7689 euro)

(Reporting by Harro ten Wold; Editing by Greg Mahlich and Dan Lalor)

Tech News Headlines – Yahoo! News

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Palace says Duchess of Cambridge expecting a baby

LONDON (AP) — The most widely anticipated pregnancy since Princess Diana's in 1981 is official: Prince William's wife, Kate, is pregnant.

St. James's Palace announced the pregnancy Monday, saying that the Duchess of Cambridge — formerly known as Kate Middleton — has a severe form of morning sickness and is currently in a London hospital. William is at his wife's side.

News of the pregnancy drew congratulations from across the world, with the hashtag "royalbaby" trending globally on Twitter.

The couple's first child will be third in line to take the throne — leapfrogging the gregarious Prince Harry and possibly setting up the first scenario in which a U.K. female heir could benefit from new gender rules about succession.

The palace would not say how far along the 30-year-old duchess is, only that she has not yet reached the 12-week mark. Palace officials said the duchess was hospitalized with hyperemesis gravidarum, a potentially dangerous type of morning sickness where vomiting is so severe no food or liquid can be kept down. They said she was expected to remain hospitalized for several days and would require a period of rest afterward.

"It's not unusual for pregnant women to get morning sickness, but when it gets to the point where you're dehydrated, losing weight or vomiting so much you begin to build up (toxic) products in your blood, that's a concern," said Dr. Kecia Gaither, director of maternal fetal medicine at Brookdale University and Medical Center in New York.

The condition is thought to affect about one in 50 pregnant women but Gaither said less than one percent of women with the condition need to be hospitalized.

The news came just days after the duchess, on a royal appearance, was playing field hockey with schoolchildren at her former school.

Not only are the attractive young couple popular — with William's easy common touch reminding many of his mother, the late Diana — but their child is expected to play an important role in British national life for decades to come.

William is second in line to the throne after his father, Prince Charles, so the couple's first child would normally become a monarch — eventually.

The confirmation of Kate's pregnancy caps a jam-packed year of highs and lows for the young royals, who were married in a lavish ceremony at Westminster Abbey last year.

They have traveled the world extensively as part of Queen Elizabeth II's Diamond Jubilee celebrations and weathered the embarrassment of a nude photos scandal, after a tabloid published topless images of the duchess.

Joe Little, managing editor of Majesty magazine, said the news bookended a year that saw the royal family riding high in popular esteem after celebrations of Queen Elizabeth II's 60 years on the throne.

"We're riding on a royal high at the moment at the end of the Diamond Jubilee year," he said. "People enjoyed the royal romance last year and now there's this. It's just a good news story amid all the doom and gloom."

Speculation about when the couple would start a family has been rife since their wedding.

William's mother Diana got pregnant just four months after her wedding in 1981. Diana also reportedly suffered from morning sickness for months and complained of constant media attention.

"The whole world is watching my stomach," Diana once said.

She gave birth to William in 1982 after 16 hours of labor. At his birth, William was given a baby tag marked 'Baby Wales' and a 41-gun salute was fired in Hyde Park and the Tower of London.

In September 1983, roughly a year after the birth of William, Buckingham Palace announced that Diana was pregnant for a second time. However, within a week, Diana suffered a miscarriage when on holiday at Balmoral, Scotland.

In 1984, she became pregnant again and gave birth to Harry.

American tabloid speculation of Kate's pregnancy has been rampant for months. One newspaper even cited anonymous sources talking about Kate's hormone levels. Others have focused on the first signs of the royal bump.

The palace said the royal family was "delighted" by the news. British Prime Minister David Cameron admitted he got a heads-up about the pregnancy, saying he found the news "quite difficult" to keep to himself and expressing his confidence the duo will make "absolutely brilliant parents."

The leaders of Britain and the 15 former colonies that have the monarch as their head of state agreed in 2011 to new rules which give females equal status with males in the order of succession.

Although none of the nations had legislated the change as of September, the British Cabinet Office confirmed that this is now the de-facto rule.

Those changes make Kate's pregnancy all the more significant for the royal family, according to Ingrid Seward, editor-in-chief of Majesty magazine.

"This is the first child who will be an heir to the throne whatever sex they are," she said. "It's a new beginning."

Graham Smith of anti-monarchy group Republic called Kate's pregnancy a "private, personal matter" for her and William, saying the flood of media coverage was disproportionate

"We've heard today that our future head of state is on the way. It's a pretty bizarre way of choosing someone for public office," he said.

On the couple's tour of Malaysia, Singapore, the Solomon Islands and Tuvalu in September, William reportedly said he hoped he and Kate would have two children.

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Associated Press writers Jill Lawless, Paisley Dodds and AP Medical Writer Maria Cheng contributed to this report.

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Pullback in Manufacturing

WASHINGTON — Manufacturing in the United States shrank in November to its weakest level since July 2009, one month after the recession ended, the Institute for Supply Management said Monday.

The institute’s index of manufacturing conditions fell to a reading of 49.5 points last month, down from 51.7 in October.

Readings above 50 signal growth, while readings below indicate contraction. Manufacturing grew in October for only the second time since May. The institute is a trade group of purchasing managers.

A gauge of new orders dropped to its lowest level since August, a sign that production could slow in the coming months. Manufacturers also sharply reduced their stockpiles, indicating companies expected weaker demand.

“Today’s report suggests that the manufacturing sector is likely to remain a weak point in the recovery for a few months yet,” Jeremy Lawson, an economist at BNP Paribas, said in a note to clients.

The weak manufacturing survey overshadowed other positive economic reports. Greater home building in the United States bolstered construction spending in October by the most in five months. Manufacturing activity in China grew in November for the second straight month. And auto sales in the United States rebounded last month after Hurricane Sandy held sales back in October.

The institute said manufacturers are concerned about the sharp tax increases and government spending cuts that will take effect in January if Congress and the Obama administration fail to strike a budget deal before then.

These worries have led many companies to pull back this year on purchases of machinery and equipment, which signal investment plans. The decline could slow economic growth and hold back hiring in the October-December quarter.

A measure of hiring in the institute’s survey fell to 48.4 points, the lowest reading since September 2009.

Companies “are just backing off and not making any moves until things clear up a bit,” Bradley Holcomb, chairman of the Institute for Supply Management’s survey committee, said.

Consumers also appear nervous about higher taxes. Economists cited the prospect of higher tax rates in 2013 as a main reason consumer spending fell in October by the most since May.

When consumers cut back on spending, businesses typically reduce their pace of restocking. Both trends are expected to slow economic growth at the end of the year.

The economy grew from July through September at an annual rate of 2.7 percent, largely because of strong growth in inventories. Most economists predict growth is slowing in the current October-December quarter to a rate below 2 percent.

Hurricane Sandy had little impact on factory activity last month, according to the institute’s survey. The storm hit the East Coast on Oct. 29 and affected businesses in 24 states.

A gauge of production in the survey rose in November for the third straight month. That’s a sign that the hurricane didn’t force many factory shutdowns.

A slowdown in global growth has weighed on American manufacturers. New export orders slipped in November for the second straight month.

Surveys show consumers remain upbeat about the economy, despite the looming taxes and spending cuts. A measure of consumer confidence reached a five-year high in November.

If lawmakers and President Obama can work out a budget deal that averts the tax increases, most economists predict a good year for the economy.

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