Showing posts with label Washington. Show all posts
Showing posts with label Washington. Show all posts

Friday, October 29, 2010

Washington Extra - deserve to Obama, Stewart, Palin and baseball

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jonIt is unclear to me if appearing on “The Daily Show” will have done much for President Barack Obama’s ratings. But it doesn’t seem to have helped Jon Stewart’s much. Nielsen data just in shows last night’s episode attracted 2.8 million viewers (minus TiVo data), compared to the show’s average of roughly 3.6 million an episode. Not sure if it says much about the president, except that people probably watch the Daily Show for Jon Stewart, not for his guests. Or maybe they were just watching the World Series.

That said, I suspect Sarah Palin would draw higher ratings if she ever graced Stewart’s studio. Instead, the former vice presidential candidate will be on air on Entertainment Tonight this evening. Asked bluntly if she planned to run for president, Palin said she would take a look at the lay of the land, to see if there was anyone else with the “common sense, conservative, pro-Constitution passion” she believes in.

If so, they would get her wholehearted support. If not: “if there’s nobody else to do it, then of course I would believe that?we should do this.” As our blogger Toby Zakaria observed, it may come down to a definition of “nobody”, because there is of course likely to be a healthy Republican field, many of whom may indeed share that passion.

Finally, an interesting poll from long-time Democratic pollster Doug Schoen via US News and World Report. The highlights: more voters think George W. Bush was a better president than Obama than the other way around. And a majority think the president does not deserve a second term.

Ironically, of course, he might still get one. Half of the voters surveyed wanted a third party in American politics, and, even now, in the depth of his midterm blues, Obama might still win a three-way race. In a contest between Obama, Republican Mitt Romney and Palin, for example, Obama would sneak through with 40 percent of voters, ahead of Romney with 32 percent and Palin with 17.

Here are our top stories from Washington today…

US election ads turn personal — and brutal

It’s nasty out there, with U.S. political candidates and outside groups flooding the airwaves with brutal and increasingly personal attacks calling their opponents cheats, liars and kooks — or worse.

For more on this story by John Whitesides,? read here.

Republican win could revive U.S. trade deals

Three long-delayed trade agreements with South Korea, Panama and Colombia could jump to the top of the U.S. congressional agenda if Republicans win control of the House of Representatives next week.

For more on this story by Doug Palmer, read here.

‘Bringing home bacon’ may not work this election

The Obama administration is sending more than $3 billion in infrastructure grants to U.S. states this month and announced most of the awards just days before the mid-terms. But the bipartisan tradition of “bringing home the bacon” to boost incumbents’ popularity may not have the same impact as voters profess antipathy toward government spending.

For more of this story by Lisa Lambert and John Crawley, read here.

Tea Party groundswell signals challenges to Fed

Tea Party members have lambasted the Fed for its unprecedented and aggressive steps to bolster the economy in the wake of the 2007-2009 financial crisis, saying the moves have exposed a lack of accountability and raise the risk of damaging inflation down the road. Efforts to submit the Fed’s monetary policy decisions to congressional review or to give Congress say in appointing officials at regional Fed banks could gain fresh momentum if Republicans win big.

For more of this story by Mark Felsenthal, read here.

BP, Halliburton ignored Macondo cement flaws-panel

BP and Halliburton, the contractor who cemented the blown-out Macondo well, ignored cement design flaws weeks before the disaster that sparked the worst U.S. offshore oil spill, a White House panel said. Both Halliburton and BP were aware of flaws in the cement slurry, similar to the one used to seal the well, as early as March 8. Shares in Halliburton fell sharply after the report’s release.

For more of this story by Chris Baltimore, read here.

Regulators, watchdogs second guess ratings reform

Banks and regulators are urging Congress to scale back a ban on the use of widely criticized credit raters to assess the risk of securities and investments on bank’s books, at least until a better alternative is developed. In a rare moment of agreement over the new U.S. financial reform law, some consumer advocates say banks have a point.

For more of this analysis story by Dave Clarke, read here.

Republicans may revamp US energy policy

After raising a ruckus on the campaign trail about the “Cap and Tax” energy policies of the Obama Administration, Republicans will want to move away from renewable energy and boost traditional energy sources if they win big next week. But they won’t be able to push too hard.

For some scenarios on how a Republican win could affect energy policy read here.

Obama to push trade, currency issues in India visit

The stakes on trade are high for President Obama’s trip to India in November as the United States and India need each other to meet ambitious export targets amid a sluggish U.S. economic recovery, yawning trade deficits with China and fears of global imbalances sparking a standoff. On the issue of global economic imbalances that have raised fears of currency wars, India and the United States often differ.

For more of this analysis by Matthias Williams and Doug Palmer, read here.

U.S. jobless claims fall to three-month low

New claims for unemployment benefits unexpectedly fell last week to a three-month low but the underlying trend still points to labor market stagnation. The data, however, will likely carry little weight at the Federal Reserve’s policy meeting on Tuesday and Wednesday, where further monetary stimulus for the sluggish economy is expected.

For more of this story by Lucia Mutikani, read here.

US Senate leader Reid faces possible historic loss

Harry Reid, a key ally to President Barack Obama, is in danger in Tuesday’s election of becoming the first U.S. Senate majority leader in 58 years to be booted out of office by home-state voters. A Reid defeat — to a favorite of the anti-establishment Tea Party movement — would be a repudiation of President Obama, who made several trips to Nevada to try to bail out his fellow Democrat.

For more of this story by Thomas Ferraro, read here.

Britain urges U.S. to take down extremist websites

Britain has called on the United States to take down websites used by extremists and urged more concerted action to thwart militant threats before resorting to war. Britain’s security minister, in remarks delivered in Washington, voiced concern about permitting websites used by extremists such as the preacher Anwar al Awlaqi to recruit anti-Western forces. “The websites in which feature his terrorist message would categorically not be allowed in the UK,” she said. “If they were hosted in the UK they would be taken down.”

For more of this story by Jim Wolf, read here.

What we are blogging…

Schwarzenegger sours on politics; eyes memoirs, movies?

Memoirs, maybe movies, but no political office. That’s what the immediate future holds for California Governor Arnold Schwarzenegger, who’s leaving office in January. “Politics destroys everybody,” he said in an “ABC World News” interview on Wednesday.

For JoAnne Allen’s full post, read here.

Palin for President? Someone’s gotta do it

Former Republican vice presidential candidate Sarah Palin, who has been stirring the pot this year with her backing for Tea Party candidates for the midterm elections, has been?hard to pin down on whether she plans to run for president in 2012. Until now. If no one else wants to do it, Sarah Palin says she would step in.

For Tabassum Zakaria’s full post, read here.

From elsewhere…

Nepal firm takes high speed Internet to Mt Everest

A private telecom firm took high speed Internet facilities to the top of the world on Thursday when it launched Nepal’s first 3G services at the base camp of Mount Everest.

The installation could help the tens of thousands of mountain climbers and trekkers who visit the Mount Everest region every year.

For more of this story, read here.

For more stories from our Washington correspondents visit www.reuters.com and stay informed.

Photo Credit: REUTERS/Jim Young (Obama with Stewart on the Daily Show)

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Wednesday, October 27, 2010

Washington Extra - the Octopus is dead, vive opinion pollster

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We start this afternoon with the sad news of the demise of Paul, the psychic octopus who captivated the world this summer with his uncanny ability to predict the results of Germany’s World Cup soccer matches.

Fear not, though. There are other ways to divine the future, and especially the results of next week’s midterm elections.

GERMANY/But first of all Washington Extra would like to categorically deny that Paul, just before taking his last gulp of water, predicted that Republicans would win control of the House and Democrats would cling onto power in the Senate. It’s just not true. And if he did, he was only reading our poll data.

Talking of which (nice segue, huh?), our latest Reuters/Ipsos poll from Pennsylvania makes interesting reading today. It shows Democrat Joe Sestak drawing level with Republican Pat Toomey, with both men now tied at 46 percent.

It is quite a turnaround for Sestak, who was trailing by 10 percentage points in our last poll in late August, but seems to have struck a chord with voters after accusing his rival of wanting to export jobs to China. ?Another clue, perhaps, that some of the midterm races might be a bit closer than they appeared a couple of months ago.

Here are our top stories from Washington today…

Key Pennsylvania Senate race in dead heat

A Senate race in Pennsylvania that could determine whether Democrats retain control of the chamber is deadlocked one week before the election, a Reuters/Ipsos poll showed

For more of this story by Andy Sullivan, read here.

For scenarios of possible election outcomes, read here.

US Republicans poised to win House, gain in Senate

A Republican win in the House and gains in the Senate would likely slam the brakes on Obama’s agenda and spark a prolonged period of legislative gridlock. “I haven’t seen anything that makes me think there will be a drastic change in the public mood or trends in the next week,” Republican strategist Kevin Madden said. “It feels like the concrete was poured on the major issues months ago.”

For more of this story by John Whitesides, read here.

Obama to test Republicans after Nov. 2 elections

President Obama’s senior aides have accused Senate Republican leader Mitch McConnell of promoting political gridlock and gamesmanship by saying he wants to ensure Obama is a one-term president. “There will be more Republicans. We are ready to work together. The question is, are they ready to work with us?” senior adviser David Axelrod told MSNBC.

For more of this story by Steve Holland, read here.

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Tighter derivatives rules gain headway in US, EU

The first global crackdown on the $615 trillion derivatives market gained momentum as regulators unveiled a new tool to police fraud and European officials urged tighter controls. From “quote stuffing” and “spoofing” to “banging the close,” the CFTC eyed certain trading practices closely, though it stopped short, for now, of proposing specific rules to curb high-frequency trading .– a trading strategy that may have contributed to the “flash crash.”

For more of this story by Roberta Rampton and Ayesha Rascoe, read here.

EU, US grapple with crunch in rare earth supplies

The European Union and the United States said they were pressing for solutions to concerns China may be exploiting its stranglehold on rare earth metals, crucial in the making of everything from portable phones to wind turbines. A Department of Energy official said she was not aware of any U.S. companies experiencing disruptions in rare earth metal shipments from China, but said firms were worried about shortages developing.

For more of this story by Juliane von Reppert-Bismarck and Paul Eckert, read here

Clinton: No problem with Iran Bushehr atomic plant

The United States has no problem with Iran’s Russian-built Bushehr nuclear reactor plant but with other sites where weapons work may be underway, U.S. Secretary of State Hillary Clinton said. Iran began loading fuel into the core of its first nuclear power plant at Bushehr earlier on Tuesday, its atomic energy chief said, the last major step to realizing its stated goal of becoming a peaceful user of nuclear energy.

For more of this story, read here.

For a Q&A on whether the West should worry about the plant, read here.

Consumer watchdog will go slow on rules-Treasury

The U.S. consumer watchdog will not inundate banks and other financial players with a host of new rules as soon as it is up and running in July. “There is a recognition that people need time to prepare,” said Eric Stein, the Treasury Department’s deputy assistant secretary for consumer protection.

For more of this story by Rachelle Younglai, read here..

China looms large over Clinton’s Asia-Pacific tour

Secretary of State Hillary Clinton added a brief stop in China to her Asia-Pacific tour that begins on Wednesday, a 13-day trip that aims to bolster ties to a region increasingly under China’s shadow. The State Department described her detour to Hainan Island on Saturday as a simple courtesy to Chinese State Councilor Dai Bingguo, a key figure in managing the strained U.S.-China relationship.

For more of this story by Arshad Mohammed, read here.

Fake chips from China sold to U.S. defense contractors

Shannon Wren ran what appeared to be a low-key computer business in Florida, but his real moneymaker was allegedly selling fake integrated circuits imported from China and Hong Kong to defense contractors and transportation firms. The case highlights the sophistication of counterfeiters. The Justice Department launched an intellectual property task force in February to focus on counterfeiting, trade secret theft and piracy.

For more of this story by Jeremy Pelofsky, read here.

What we are blogging…

Clinton sees diplomats of the future in cargo pants as well as pinstripes

Secretary of State Hillary Clinton has urged Congress to finance a major new push on overseas development aid, arguing that only by building up a global middle class will the United States increase its national security. “The American people must understand that spending taxpayer dollars on diplomacy and development is in their interest,” Clinton wrote in an article in Foreign Affairs magazine.

For Andrew Quinn’s full post, read here.

Stewart, Colbert rally gets ‘puzzling’ endorsement

Jon Stewart’s Washington “Rally to Restore Sanity” has a new, puzzling promoter: Will Shortz. He’s editor of the New York Times crossword puzzle, which today devotes no fewer than eight clues to the Daily Show host, his fellow satirist Stephen Colbert and the joint rally they’re planning on the National Mall.

For David Morgan’s full post, read here.

Photo credit: Reuters/Kirsten Neumann (Paul the octopus oracle in July)

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Tuesday, October 26, 2010

Washington Extra - Democrats and the swallows

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In the words of Aristotle: “one swallow does not a summer make, nor one fine day; similarly one day or brief time of happiness does not make a person entirely happy.”

Nevertheless, Democrats might not be feeling quite so down in the dumps today, as evidence comes in that in early voting (allowed at election offices and satellite locations in 32 states) the Democrats are off to a stronger-than-expected start. It is impossible to tell how people actually voted, but Democrats do appear to be showing up in greater numbers in some key states than some had feared. But things are still not going as well for them as in 2008.

The “enthusiasm gap” is expected to be one of the Democrats’ biggest handicaps in the midterms, this early evidence, and rallies next weekend by Jon Stewart and Stephen Colbert, notwithstanding.

If you want to understand the disillusionment about President Barack Obama among his former supporters, our World Affairs Columnist Bernd Debusmann reminds us today of the soaring rhetoric he employed back when he won the Democratic nomination in June 2008.florida_rally

“If…we are willing to work for it, and fight for it, and believe in it, then I’m absolutely certain that generations from now, we will be able to look back and tell our children that this was the moment when we began to provide care for the sick and good jobs for the jobless; this was the moment when the rise of the oceans began to slow and our planet began to heal; this was the moment when we ended a war and secured our nation and restored our image as the last best hope on earth.”

Bernd takes a look at how Obama is doing against his own stratospheric expectations. And concludes, again, with Obama’s own words. “In a big messy democracy, everything takes time.”

Finally, and talking of taking time, the effort to get Haiti back on its feet after January’s devastating earthquake is still in its early stages. No one should underestimate the scale of the problems faced, problems which have been dramatically underlined by last week’s cholera outbreak which has killed more than 250 people. My recent trip also really underlined to me the importance of getting the private sector back on its feet, and of slowing the steady hemorrhaging of middle-class Haitians who flee their country every year for jobs and opportunity in the United States and Canada. My special report is here.

Here are our top stories from Washington today…

Can Obama bridge partisan divide?

President Obama faces the role of political bridge-builder when an expected surge of new Republicans comes to Washington. “I think what you’ll have is gridlock for a while then I think you’ll have some hard-won compromise,” said Republican strategist John Feehery. “The number one thing that is going to happen is the Obama agenda is going to stop in its tracks.”

For more of this analysis by Steve Holland, read here.

The “Great Game” bubbles under Obama’s India trip

President Obama’s trip to India in November will be about how New Delhi deals with the elephant in the room – the Pakistan-Afghanistan conundrum. After nine years of war, there are signs the United States and President Hamid Karzai are reaching out to talk to the Taliban, and New Delhi wants to ensure any eventual settlement protects India from the risk of militant groups on its doorstep.

For more of this analysis by Alistair Scrutton and Patricia Zengerle, read here.

U.S. Democrats off to good start in early voting

More Democrats than Republicans cast early ballots in a handful of key states, but more Republicans voted early than in 2008 when President Obama led a Democratic sweep. “The early voting numbers are favorable for Democrats, but here’s the caution — they are not as favorable as in 2008,” said Michael McDonald, a George Mason University professor who tracks early voting statistics around the country.

For more of this story by John Whitesides, read here.

State races to redraw lines of power in Washington

As Democrats struggle to keep their majorities in Congress, the next decade of party control may be determined by scores of state legislative races also on the ballot. At stake is the redrawing of electoral districts for the House of Representatives in Washington — an adjustment of boundaries that tends to favor the party in charge of each state legislature.

For more of this story, read here.

Foreclosure mess may hurt housing market, FDIC says

The foreclosure mess won’t be cleaned up quickly and could hurt the housing market, which is already a weak link in the economic recovery, regulators said.

For more of this story by Dave Clarke and Pedro Nicolaci da Costa, read here.

U.S. Treasury too rosy on bailout cost – TARP cop

The Obama administration’s latest estimate of taxpayer costs of the Wall Street bailout is too rosy and could ultimately damage public trust in government, the top bailout cop said..

For more of this story by Donna Smith, read here.

U.S. existing home sales rise, supply edges down

Sales of previously owned homes rose a greater-than-expected 10 percent in September but remained at depressed levels that point to a painful and protracted recovery for the housing market. The data did little to weaken the case for further monetary easing from the Federal Reserve, with sales far below the 5 million-unit pace usually associated with a healthy market.

For more of this story by Lucia Mutikani, read here.

Q+A-Can the US healthcare overhaul be repealed?

Republicans have vowed to repeal and replace the healthcare overhaul — or at least eliminate many of its provisions — if they achieve big victories mid-term elections. National polls show voters evenly divided on the law dubbed “Obamacare” by its opponents.

For questions and answers about the law’s future, by Patricia Zengerle, read here.

Could Republicans gut parts of Wall St reform law?

Republicans want to roll back Wall Street reforms enacted in July, but tinkering around the edges may be all they can manage. Analysts see little to no chance of a full dismantling of the law meant to prevent a repeat of the 2007-2008 financial crisis.

For questions and answers about potential tweaks to the law, by Kevin Drawbaugh, read here.

US approves world’s biggest solar power project

The Interior Department has approved a permit for the world’s biggest solar power project, which will provide electricity to up to 750,000 homes.

For more of this story, read here.

What we are blogging…

Rhode Island Democrat says Obama can “shove it” for non-endorsement

Rhode Island gubernatorial candidate Frank Caprio had some unwelcoming words for President Obama, who was scheduled to visit the state. Caprio says he learned from a reporter last night that Obama did not plan to endorse his candidacy against independent Lincoln Chafee, a former Republican senator who endorsed Obama over John McCain in 2008.

For Tabassum Zakaria’s full post, click here.

From elsewhere…

Michael Jackson top-earning dead celebrity – Forbes

Michael Jackson’s sudden death sparked an outpouring of grief around the world, but fans also opened their wallets to make him this year’s top-earning dead celebrity with $275 million, Forbes said. Elvis Presley came in second, earning $60 million from admissions to his former home, Graceland, which is now a museum and tourist attraction in Memphis, Tennessee, a Cirque de Soleil show and more than 200 licensing and merchandise deals.

For more of this story, read here.

Russian spy Chapman talks of love in first interview

Glamorous Russian spy Anna Chapman has told a popular men’s magazine she likes hopeless romantics, in her first interview since she was deported from the United States in July. The redhead said her favorite category of men are “those who need love to be the biggest and most wonderful feeling in their life,” she told Russia’s Maxim, which went on sale last week.

For more of this story, read here.

For more stories from our Washington correspondents visit www.reuters.com and stay informed.

Photo Credit: REUTERS/Kevin Lamarque (Obama greets supporters at a campaign rally in Las Vegas)

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Sunday, October 24, 2010

Washington Extra - special day

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CHINA/Before heading off to enjoy your weekend, I would encourage you to take a look at Emily Kaiser's special report on income inequality in the United States, and a growing body of opinion that links high levels of income inequality with financial crises.

It may not be a coincidence, many economists believe, that income inequality in 2007, just before the latest crisis hit, reached its highest level since before the Great Depression. ?Read on.

And in other news, as they say in the business, Dan Quayle's his spell potato can. Ben is vying to represent the Third Congressional District in Arizona, where he has come under fire for being too young and inexperienced examiner to hold office.But as our blog reports, at least he passed the spell test.

And on that note, I am off to enjoy the rest of my birthday. Have a great weekend.

Here are our top stories from Washington today…

No. surprises in seen WikiLeaks Iraq war data-Pentagon

The Pentagon does not expect big surprises from an imminent release of up to 500,000 Iraq war files by WikiLeaks, but warned that U.S. troops and Iraqis could be endangered by the dump file.The leak would be much larger than the group's publication of more than 70,000 documents in July, the largest security breach of its kind in U.S. military history.

For more of this story by Phil Stewart, read here.

Money flows into Nevada's U.S. Senate race tight

The Senate race in Nevada, which late polling suggests is a dead heat, has become a central battlefield, with backers of both parties pouring money into last-minute dams of television attack ads.A Republican victory would not only boost the party's drive for control of the Senate let purpose conservatives boast that they toppled one of the most powerful Democrats in America.

For more of this story by Mark Hosenball, read here.

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Delays this year seen for SEC plan to revamp market

Any more changes to U.S. stock markets are on hold at least until December, sources said, as the Wall Street reform bill preoccupies regulators dealing with fallout from the may "flash crash."

For more of this story by Jonathan Spicer and Rachelle Younglai, read here.

For-profit schools cannot deter scrutiny

For-profit schools are trying to lift standards their, but it may be too little too late.Exchange that schools have made - scrapping open admissions and offering free orientation periods - will not deter the Education Department from tightening regulations that could cost some schools federal dollars.And they will not head off even tougher legislation promised by Sen.Tom Harkin.

For more of this story by Diane Bartz, read here.

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Jobless rate down in most U.S. states in September

The unemployment rate dropped from the prior month in 23 states and the District of Columbia in September.Still, the number of workers dropped in a significant number of states, and only 16 states gained jobs. Nevada again had the highest unemployment rate.

For more of this story, read here.

First oil permit sought since US drill ban ended

The Interior Department has received its first application for a permit to drill a new deepwater well since its temporary ban ended.

For more of this story by Ayesha Rascoe, read here.

Policy impact if Democrats win US election

Politicians and pollsters predict a Republican win big on Nov.2 Goal sometimes elections do not turn out quite the way the experts predict.

For scenarios on what might happen if Democrats win, by Richard Cowan, read here.

How will U.S. CFTC be tough on speculators?

Companies that trade energy, metals and agricultural future and swaps are closely watching how severe of a stance the U.S. future regulator takes against speculators in new position limits for commodities.

For a Q + A on what happens next, by Roberta Rampton, read here.

American pleads guilty to trying to spy for China

Glenn Shriver, 28, pleaded guilty to one count of conspiracy to communicate national defense information, and will receive a sentence of 48 months in prison.Shriver had faced up to 10 years in prison.

For more of this story by Jeremy Pelofsky, read here.

What we are blogging…

No more Mr. Nice Guy, Republican sets sights on Obama's energy czar

Michigan Republican Fred Upton is known as a moderate who disappointed many conservatives by voting with the majority on some major issues, including the rulings bailout of U.S. automobile manufacturers.Purpose expect no. more Mr. Nice Guy if Republicans win big and he becomes chairman of the House Energy and Commerce Committee.Upton has a hit list of White House policy czars he plans to investigate, starting with White House energy adviser Carol Browner.

For Donna Smith's full post, read here.?

From elsewhere?

Top 10 places to celebrate Halloween

If encounters with ghosts, ghouls or vampires are your idea of fun, then Halloween is probably a favorite time.Places across the globe are getting ready to scare people out of their wits - and their money.

For more on Halloween hotspots from New York to Romania, read here.?

Photo credit: Reuters/stringer (panda eats her birthday cake)

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Friday, October 22, 2010

Washington Extra - take five

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Washington Extra is going to let our correspondents do the talking today.So instead of listening to my meanderings, check out these five stories: SWITZERLAND/

-Mark Hosenball's special report on Christine O'Donnell and her money problems.Her relationship with mainstream Republicans and her floundering campaign intended have led big-time donors to shun her, albeit quietly. Read here.

-John Whitesides' story is how big Republican gains in the governors' races on November 2 could dramatically reshape the U.S. political landscape for a decade, giving the party year edge on next year's redrawing of congressional district boundaries and in the 2012 presidential race.Here.

-Kim Dixon's analysis of how Republican gains and a sour post-election mood could spoil the chances of a deal on the Bush-era tax cuts, which might just end up expiring.Here

-Jon hurdle's report from Philadelphia on how Democrats have found a new bogeyman in the congressional elections: China.The China-bashing, though, isn't ain't going down well with firms like Caterpillar which has seen demand for its heavy machinery jump in China, and today appealed for U.S. policymakers not to fuel trade tensions.Here.

-Tim Gaynor's report from Las Vegas on the importance of the Hispanic vote in the Nevada Senate race, where President Barack Obama heads on Friday in an attempt to energize Harry Reid's lackluster campaign.Here.?

Enjoy.

Here are some of our other top stories today…

?Obama short women voters on West Coast tour

President Obama aimed his economic message at women voters as he campaigned on the West Coast for women candidates crucial to his Democrats' chances of keeping control of the Senate.

For more of this story by Caren Bohan, read here.

States group OKs tough health insurance rules

State insurance commissioners unanimously backed tough rules requiring health insurance companies to direct more of the premium they collect to medical care, rather than corporate employees and profits.

For more of this story by Susan Heavey, read here.

US data shows small gains, monetary stimulus seen

A batch of new data painted a picture of an economy stuck in slow-growth mode, reinforcing views the Federal Reserve will ease monetary policy further next month.

For more of this story by Lucia Mutikani, read here.

U.S. plan hits opposition at G20, FX remote agreement

G-20 officials are unlikely to reach an agreement SITA currency devaluations and capping current account balances, an informed source said on Thursday, after U.S. proposals ran into stiff opposition.

For more of this story, read here.

CFTC to oversee foreign banks dealing swaps: Gensler

The future regulator's broad new powers over swaps will apply to foreign banks dealing swaps markets in the United States, Chairman Gary Gensler told international bankers.

For more of this story, read here.

Senator presses State Department on oil sands pipeline

Senator Mike Johanns, a Nebraska Republican, criticized Hillary Clinton for remarks that led him to believe the State Department would not give a fair hearing to critics of a proposed $7 trillion pipeline to carry crude from Canada's oil sands to U.S. refineries.

For more of this story by Ayesha Rascoe, read here.

Drought risks in hide US utility bond market-report

Many investors are oblivious to growing water scarcity in the U.S. West and Southeast that poses risks to municipal bonds issued by water and power utilities, according to a new report.

For more of this story by Timothy Gardner, read here.

Nina to build, dictate US winter weather-NOAA

A strengthening the Nina will grip the U.S. this winter, bringing warmer, calendar weather across the South and cooler, moist conditions in the far northern and western parts of the country.

For more of this story by Christopher Doering, read here.

New strain of swine flu emerges - report

The H1N1 swine flu viruses may be starting to mutate, and a slightly new form has begun to Oregon in Australia, New Zealand and Singapore, researchers reported.
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For more of this story by Maggie Fox, read here.

What we are blogging…

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Midterm election enthusiasm being lost on the young

In the end, it's all about turnout.President Obama has been trying to rev up young voters, who played a strong role in his own election, to encourage them show up at the polls on Election Day.Goal a Harvard University poll of voters under age 30 finds des enthusiasm waning as the election approaches.

For Tabassum Zakaria's full post, click here.

From elsewhere…

UK lawmaker's wife accused of theft kitten

The wife of a British MP appeared in short charged with breaking into the house of her husband's coiling and stealing a tabby kitten worth 20 pounds.The 52-year-old was released on lease.On his blog, lawmaker John Hemming published a picture of the missing kitten, Beauty, and asked for anyone who had seen her to contact him at the House of Commons.

For more of this story, read here.

Photo credit: Reuters/Denis Balibouse (Christie's jewelry specialist displays rings during auction preview in Geneva in 2007)

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Wednesday, October 20, 2010

Washington Extra – a belief in tea and the Constitution

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The Tea Party takes pride in its belief in the importance and centrality of the Constitution of the United States. Indeed, Senate Republican candidate Christine O’Donnell has been reported as referring to the document as a “covenant” based on “divine principles”.

So there was some disbelieving laughter from the audience in Delaware today when O’Donnell showed she did not know the contents of the First Amendment. “Where in the Constitution is the separation of church and state?” she asked Democratic opponent Chris Coons. OBAMA/

“The First Amendment does?” O’Donnell went on to ask. “Let me just clarify: You’re telling me that the separation of church and state is found in the First Amendment?” Watch the whole eight-minute exchange here, part of a debate about whether schools should teach intelligent design or evolution.

Later, O’Donnell stumbled over the 14th and 16th amendments too. “I’m sorry I didn’t bring my Constitution with me,” she said. “Fortunately senators don’t have to memorize the Constitution.”

Just for the record (and as?a Brit you can perhaps forgive me for having to look it up), you will find the full text of the First Amendment and an explanation here. Worth looking too at Thomas Jefferson’s 1802 letter to the Danbury Baptists where he explains his belief in the need to build a “wall of separation between Church & State.”

Elsewhere on election watch, perhaps the most interesting question in the midterms is whether Democrats can hang onto their majority in the Senate. As John Whitesides explains today, they are counting on liberal-leaning West Coast states, California and Washington state, ?to preserve that fragile majority. That is exactly where President Barack Obama is heading this week.

In Colorado, our exclusive Reuters/Ipsos poll shows the Democratic incumbent narrowing the gap on Republican frontrunner Ken Buck, to just three percentage points. “Bennet seems to have some momentum,” said IPSOS pollster Julia Clark. “A Tea Party candidate like Buck should be doing better in this political environment.”

Here are our top stories from Washington today…

Obama, Democrats count on U.S. Senate wins out West?

Democrats are counting on the liberal-leaning West Coast to counter the national trend and help them preserve their fragile U.S. Senate majority. “Right now, Democrats have their best chances on the West Coast. They are in relatively good shape out there compared with the rest of the country,” said one political analyst.

For more of this story by John Whitesides, read here.

For a factbox on 12 Senate races to watch, click here.

For a factbox on 12 House races to watch, click here.

Republican lead narrows in Colorado race

Republican Ken Buck has a dwindling lead over Democratic incumbent Michael Bennet, who has gained ground in Colorado’s Senate race since August, according to a Reuters/Ipsos poll. “This race is narrowing pretty substantially,” an Ipsos pollster said, noting Buck’s support had remained frozen, while Bennet had improved by five percentage points.

For more of this story by John Whitesides, read here.

Shots fired at Pentagon, no injuries

A gunman using what investigators believe was a high-velocity rifle fired up to seven shots at the Pentagon, shattering two windows but injuring no one. No suspects have yet been identified in the incident, the first since a lone gunman in March shot and wounded two security officers near a Pentagon entrance. An official said the shooting was “a random event” and did not foresee any new security measures.

For more of this story by Phil Stewart, read here.

Pentagon tells recruiters: You must accept gays

The Pentagon has told military service recruiters they must accept applications from gays and lesbians, given a judge’s decision to strike its ban on openly-serving homosexuals. “Recruiters have been given guidance, and they will process applications for applicants who admit they are openly gay or lesbian,” said Cynthia Smith, a Pentagon spokeswoman.

For more of this story, read here.

Investors, White House press banks over mortgages

Big banks took a hit as investors threatened to seek redress over questionable mortgage bonds and the White House warned it would hold lenders accountable for any illegal foreclosure practices.

For more of this story by Jeff Mason and Al Yoon, read here.

U.S. regulators to meet Wed. on foreclosure crisis

Federal regulators will meet on Wednesday to discuss the foreclosure crisis amid concerns it could affect the housing market and broader economy after attorneys general in all 50 states launched a joint investigation into allegations against banks.

For more of this story, read here.

Housing starts at 5-month high

Housing starts hit a five-month high in September, a tentative sign of healing in the housing market, though permits for future home building fell as approvals in the volatile multi-family segment tumbled. The Commerce Department said housing starts rose 0.3 percent to a seasonally adjusted annual rate of 610,000 units, the highest level since April.

For more of this story by Lucia Mutikani, read here.

Officials hint Fed on the verge of more easing

A string of Federal Reserve officials indicated the central bank will soon offer further monetary stimulus, with one saying $100 billion a month in bond buys may be appropriate. “If we’re going to pursue another round of quantitative easing, it has to be a large enough number to make a difference,” Atlanta Fed President Dennis Lockhart said in an interview on CNBC television.

For more of this story by Mark Felsenthal and Pedro da Costa, read here.

FDIC sees lower bank failure cost, cancels fee bump

Bank regulators revised down the estimated cost of bank failures and proposed rules for how to restore the depleted insurance fund that backs bank deposits. The Federal Deposit Insurance Corp said it estimates bank failures will cost the Deposit Insurance Fund $52 billion from 2010 through 2014, compared with a prior estimate of $60 billion.

For more of this story by Karey Wutkowski, read here.

SEC brushes off flash crash report critics

The securities regulator dismissed accusations that a government review of the May flash crash inaccurately fingered a large trade by a big mutual fund for the market plunge. But a research firm said the trades occurred after the market bottomed, and another trading venue recently said a single trader could not have caused the Dow to drop 700 points in minutes before recovering sharply.

For more of this story by Rachelle Younglai, read here.

CFTC has flexibility on timing of new trade limits

The U.S. futures regulator unexpectedly signaled it has flexibility to wait to make new rules take effect on limiting the size of investment in commodity markets until it has more data on the breadth of the swaps market. The CFTC said its proposal on position limits in energy, metals and agricultural markets would be released on November 30.

For more of this story by Roberta Rampton and Christopher Doering, read here.

For a factbox on CFTC’s rule for reporting commodity swaps, click here.

Ethanol makers seek renewal of tax breaks

Attacked as subsidy addicts, ethanol makers may need help from friends in high places, including the White House, to hold on to lucrative tax breaks set to expire at the end of the year.? The industry says it is ready to discuss revisions in the incentives, worth $6 billion a year. An amalgam of food makers, livestock producers, environmentalists and deficit hawks say there is no need for subsidies.? “The ethanol industry is addicted to subsidies,” said Steve Ellis of Taxpayers for Common Sense, a good-government group. “It’s time for the decades-old ethanol party to end.”

For more of this story by Charles Abbott, read here.

Tax measures on ballots reflect U.S. economic unease

The still-struggling economy is at the root of most of the state and local tax and debt measures on ballots that could drive voters of a more fiscally conservative bent to the polls. “It’s the economy for sure,” said an elections analyst with the National Conference of State Legislatures, noting that financial measures are more prevalent than social issues, such as gay marriage and abortion, in the upcoming election.

For more of this story, read here.

What we are blogging…

McCain hails Palin power in the mid-term elections

John McCain says Sarah Palin is a “visionary” for the United States. “She has had a tremendous impact on this election cycle, as you well know, by supporting certain candidates,” McCain said in an interview on ABC’s “Nightline. “It is really a remarkable thing to observe.” The 2008 Republican presidential nominee again defended his decision to pick the then relatively unknown Palin for the number-two spot on the ticket.

For JoAnne Allen’s full post, click here.

Political Surrogate Smackdown!

For those unfamiliar with the phenomenon, the full cry of the surrogate can often be heard from coast to coast — or at least from Broadway to Reno, Nevada. At a Broadway theater on Monday night,?Michelle Obama got a glitzy introduction from Sarah Jessica Parker of “Sex and the City” fame, who called the first lady “a role model, an inspiration” and a woman who “doesn’t need a pair of heels to stand tall.”

For Deborah Zabarenko’s full post, click here.

From elsewhere…

Out with the abacus in China’s 25-bp rate rise

China shook global markets with its unexpected increase of interest rates, but the surprise was compounded for careful observers by the size of the move. The increase was the first time in modern history that Beijing adjusted deposit and lending levels by a number not a multiple of nine. “The reason is that on the abacus, adding multiples of nine was much easier than adding multiples of 10. So the modern People’s Bank of China inherited that special character from the old days,” a Beijing economist said. “But clearly, computers and market participants may prefer rounder numbers.”

For more of this story, read here.

Photo credit: Reuters/Larry Downing (shadow of President Obama seen on U.S. Constitution)

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Tuesday, October 19, 2010

Washington Extra - with better these myths Obama (or not)

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Our top story today (at least according to readers of Reuters.com):? President Barack Obama is to appear on “Mythbusters”, a television series that uses science to separate fact from fiction. It is part of a White House effort to highlight the importance of science, math and engineering, as experts warn that low interest in these subjects could damage America’s global competitiveness.

Among the myths the program has tackled before:

What’s worse, having an empty beer bottle smashed over your head or a full one?

Can a sniffer dog be thrown off the scent using household items?

USA/A myth Obama will help debunk:

The 2,000-year-old story that Greek mathematician and engineer Archimedes set fire to an invading Roman fleet using a system of mirrors to focus the sun’s rays.

Myths that Obama might wish he was debunking:

The president was not born in the United States

The economic stimulus plan failed to create any jobs

The president is a Muslim

Healthcare reform was an attempt to impose socialism by the back door.

The president is a communist.

And finally, one the president has arguably already debunked:

Obama can change the way Washington works.

Here are our (other) top stories from Washington today…

Midterm election weighs on Obama’s foreign policy

With the public fixated on high unemployment and a sputtering economy, and the 2012 presidential race approaching, President Obama is likely to keep his focus where the votes are — on domestic priorities. While predecessors have used foreign policy to stay relevant when stymied by a hostile Congress, Obama can hardly afford to be distracted from bread-and-butter issues. “The notion that somehow he’s going to earn his Nobel Peace Prize in the last two years of his term is not very realistic,” said James Carafano of conservative think tank the Heritage Foundation.

For more of this analysis by Matt Spetalnick, read here.

Obama seeks to rekindle enthusiasm of 2008 campaign

President Obama sought to recapture the magic of his 2008 campaign, holding a large open-air rally in Ohio to help struggling Democratic candidates in the Midwestern state. “Everybody said ‘No, you can’t,’ and in 2008 you showed them, ‘Yes, we can,’” Obama told a cheering crowd of 35,000 people at Ohio State University. But he acknowledged Democrats faced a tough fight.

For more of this story by Caren Bohan, read here.

U.S. regulators press banks over foreclosures

Regulators said they were advancing probes of major banks in the foreclosure crisis and want to determine whether shoddy practices caused some people to be kicked out of their homes. Stocks rose, led by gains in financial firms, as Citigroup reported stronger-than-expected profits. Bank shares were down last week on worries profits could be hurt by investigations of potentially faulty foreclosure paperwork.

For more of this story by Dave Clarke, read here.?

Industrial output falls, monetary easing seen

U.S. industrial output shrank last month for the first time in more than a year, a sign the economy was in a slow growth rut that appears certain to lead to more monetary stimulus from the Federal Reserve. “The industrial production report illustrates, if anything, economic growth is still slowing rather than beginning to pick up again, which is yet another reason for the Fed to unleash QE2,” said one analyst.

For more of this story by Lucia Mutikani, read here.

Auto safety proposals dim in political upheaval

Automakers are counting on political upheaval in Washington to bury proposed changes in safety regulation born out of congressional scrutiny of Toyota Motor Corp. Car companies have raised enough questions about what they view as burdensome new regulation to slow safety bills pushed by Democrats. Now they hope expected gains by more business-friendly Republicans in November, and the fading memory of unintended acceleration in some Toyota and Lexus models, will effectively kill sweeping proposals that include exponentially higher fines and new government recall powers.

For more of this story by John Crawley, read here.

US won’t rubber stamp offshore oil permits-official

The U.S. offshore drilling agency will not become a “permitting mill” now that its deepwater drilling moratorium has been lifted, Michael Bromwich, head of the Bureau of Ocean Energy Management, wrote in an op-ed posted on CNN’s website. But he also blasted critics who have complained permitting delays will hamper offshore oil development.

For more of this story by Ayesha Rascoe, read here.?

U.S. Justice Dept sues Michigan Blue Cross

The Justice Department has filed a lawsuit against Blue Cross Blue Shield of Michigan, accusing it of violating antitrust law by negotiating contracts with hospitals that bar the hospitals from giving Blue Cross’ rivals a better deal.

For more of this story by Diane Bartz, read here.

What we are blogging…

The chill of the Chandra Levy murder trial

The Washington summer of Chandra Levy?seems to belong to another era — one where a missing government intern and a straying congressman dominated headlines and chatter in the U.S. capital. It was the summer of 2001. Monday saw the start of jury selection in the trial of?Ingmar Guandique in Levy’s murder, a trial expected to last five weeks.

For Deborah Zabarenko’s full post, click here.

From elsewhere…

Japan recruits foreigners to improve its travel advice

Japan is planning to recruit dozens of foreigners to visit the country and give advice on how to make things more travel-friendly for non-Japanese-speaking visitors as it aims for higher tourist numbers.”What we hear is that there really isn’t enough information on things like how to buy train tickets, or how to use the baths in traditional Japanese inns,” said one official.

For more of this story, read here.

Photo credit: Reuters/Kevin Lamarque (Obama at White House Science Fair)?

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Friday, October 15, 2010

Washington Extra – Chickens come home to roost

Curses are like young chicken: they always come home to roost, to quote the title page of Robert Southey’s poem The Curse of Kehama, published in 1810.

foreclosures3The controversy over the handling of home foreclosures came back to hurt the nation’s biggest banks with a vengeance today. There may not be a lot of sympathy on Wall Street for people who missed their mortgage payments, but then again, there probably isn’t much sympathy on Main Street for the practice of “robo-signers” to approve home seizures, especially since banks probably shouldn’t have extended many of the defaulting mortgages in the first place.

Investors have no room for sentiment either way. They dumped bank stocks on fears a prolonged investigation into potentially shoddy foreclosures, one of the biggest legal probes of the mortgage industry in decades, will eat into profits. The fear: it will delay sales of bank-owned properties, draw fines from regulators, and spawn lawsuits from both homeowners and investors in mortgage-backed securities. Jamie Dimon of JP Morgan admitted it could slow down the recovery in the housing market, but said “we’re hoping it won’t kill it.”

On election watch, an interesting story on why the Afghan war is just not an issue for most voters, and another from Ohio about Democrats’ efforts to substitute organization for enthusiasm. Democratic strategist Chris Kofnis underlined what he called “the brutal reality” for his party. “Either we close the so-called enthusiasm gap before election day, or its going to be a really bad election day.”

There wasn’t much enthusiasm, though, when President Barack Obama held a televised “conversation” with an audience of young people. The brutal reality? We all know Obama’s ratings have fallen, but it was still striking how all that energy around “hope” and “change” had dissipated.

Finally, watch out on Friday for an expected announcement from the Treasury over whether to name China a currency manipulator. Political pressure is growing ahead of the elections, and the administration has been taking a tougher line with China, but on balance it still seems unlikely it will risk widening the rift with the largest U.S. creditor.

Here are our top stories from Washington today…

In election, Afghan war not on voters’ mind

Nine years into one of the longest wars in U.S. history, conflict-weary Americans are on the verge of electing a new Congress with barely a whisper of debate about the ongoing struggle in Afghanistan. A Reuters/Ipsos poll found that Americans rated Afghanistan bottom of a list of seven issues that Congress should deal with in 2011.

For more of this story by David Alexander and John Whitesides, read here.

Democrats hope organization beats enthusiasm

While his neighbors relax after work, Steve Shucard hunches over a laptop computer at his kitchen table, dialing for votes. Most of the calls to Ohio voters are wrong numbers, hang-ups or go unanswered. But once in a while, Shucard hits pay dirt — someone who pledges to support Ted Strickland for governor. Calls and door-to-door surveys by volunteers are the backbone of a get-out-the-vote effort Democrats hope will limit their losses and counter a pronounced Republican advantage in enthusiasm for the November elections.

For more of this story by John Whitesides, read here.

Bank shares hit by U.S. foreclosure woes

Growing concerns over the handling of home foreclosures hit bank shares hard, with analysts warning of harm to the fragile housing market and broader economy if the issue escalates. All 50 states have started a joint investigation of the mortgage industry, focusing on allegations that some banks did not review documents properly or submitted false statements to evict delinquent borrowers.

For more of this story by Dave Clarke and Steve Eder, read here.

For a factbox on snowballing foreclosure problems, click here.

Wall St blames homeowners in foreclosure fiasco

Wall Street’s reaction to the allegations that some banks cut corners while foreclosing on 3 million homes since 2007: Pay your mortgage in the first place. “If you didn’t pay your mortgage, you shouldn’t be in your house. Period. People are getting upset about something that’s just procedural.” said Walter Todd, portfolio manager at Greenwood Capital Associates.

For more of this story by Joe Rauch, read here.

For a graphic on foreclosures around the country, click here.

US mulls calling China currency manipulator

The Obama administration is due to say on Friday whether it believes China manipulates its currency for an unfair trade advantage, a decision that could sour ties between the? world’s two biggest economies. Read on for three options the administration could pursue and a look at the potential implications of each.

For more of this story, read here.

US state wealth tax vote shadows nationwide debate

A vote 3,000 miles from the District over tax rates, pitting the likes of Amazon’s Jeff Bezos against Microsoft founder Bill Gates’ father, shadows a wider national debate over how much the wealthy should pay. Voters will decide whether to approve Washington state’s first-ever state income tax in a ballot proposal as part of the November elections.

For more of this story by Kim Dixon, read here.

Jobless claims point to further Fed easing

New claims for jobless benefits unexpectedly rose last week, hardening the view the central bank will pump more money into the economy. The weak economic data kept the pressure on Democrats, who look likely to lose control of the House of Representatives in November, a Reuters-Ipsos poll projected.

For more of this story by Corbett Daly and Doug Palmer, read here.

Judge asked to stay ruling on US military gay ban

The Obama administration asked a federal judge to stay a ruling that would end the ban on openly gay men and women serving in the military after officials warned the injunction could undermine a Defense Department review of the “don’t ask, don’t tell” policy. “The precipitous changes to military policy required by the court’s injunction would result in a host of significant and immediate harms to the recognized public interest in ensuring that the nation has strong and effective military operations,” the administration said.

For more of this story, read here.

What we are blogging…

What changes will “Obama 2.0″ bring?

What will Obama 2.0 look like? President Barack Obama has given little hint of a major shift in his governing strategy following the midterm elections on Nov. 2, but Peter Baker’s piece in the New York Times magazine suggests changes are in the works. But it’s not clear how far-reaching they will be.

For Caren Bohan’s full post, click here.

For more stories from our Washington correspondents visit www.reuters.com and stay informed.

Photo Credit: REUTERS/Jim Bourg (Josephine Diaz (front) of Chicago and Christopher Gales (rear) of Washington chant as advocates of homeowners and people facing foreclosure protest outside the U.S. Treasury Department , Nov. 18, 2009)

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