(For more on Afghanistan, click on [ID:nAFPAK]) * Ninth such meeting gets under way * Some Democrats want war tax (Updates with meeting start, announcement likely next week) By Steve Holland WASHINGTON, Nov 23 (Reuters) – President Barack Obama began a meeting on Monday night with top advisers on Afghanistan as he closes in on a decision about whether to send thousands more U.S. troops to confront a growing insurgency. The war council with Vice President Joe Biden, Secretary of State Hillary Clinton, Defense Secretary Robert Gates and other officials got under way at 8:13 p.m. (0113 GMT on Tuesday) in the White House Situation Room. It is the ninth such meeting as Obama nears a decision on whether to add as many as 40,000 troops to an eight-year-old war that began after the Sept. 11 attacks and that has begun to try the patience of Americans. U.S. officials and Western diplomats said they expected Obama’s announcement next week, before a NATO meeting on Dec. 7 in Europe in which alliance members could agree to send thousands of additional trainers. The White House has given no firm date for the news, but “the first possible time would be sometime next week,” presidential spokesman Robert Gibbs said. There are about 110,000 foreign troops, including 68,000 U.S. soldiers, in Afghanistan fighting Taliban insurgents. The president has been reviewing war strategy in Afghanistan for the past two months after Army General Stanley McChrystal, the top U.S. commander there, said in a report that conditions were deteriorating and 40,000 additional troops were needed as the minimum to quell the insurgency. AMERICANS DIVIDED Obama’s top national security advisers, including Gates and Admiral Mike Mullen, chairman of the Joint Chiefs of Staff, are believed to have rallied around options that would send 30,000 to 40,000 more troops and trainers. Obama faces conflicting pressures on Afghanistan. Americans are divided about whether to send more troops. Republicans in Congress insist more troops are needed to prevent a Taliban resurgence, while his own Democrats in general would like to see the United States find a way out of Afghanistan. Two veteran Democratic lawmakers have called for imposing a “war tax” to pay for a troop increase. The two were David Obey, chairman of the House of Representatives Appropriations Committee, and Carl Levin, chairman of the Senate Armed Services Committee. A congressional aide said that under the idea, families earning under $150,000 a year would be taxed at 1 percent of their tax rates. The tax would be higher for those in the $150,000-to-$250,000 range and those making $250,000 or more.  Continued… Read the original: Obama meets with advisers on Afghanistan (at Reuters)

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* In talks to sell interest for between $1.3-1.5 bln-source * Talks continuing, deal could be announced on Monday-source * Heritage looking to pay a special dividend-report By Quentin Webb and Julie Crust LONDON, Nov 22 (Reuters) – British oil explorer Heritage Oil ( HOIL.L ) ( HOC.TO ) is in talks to sell its Ugandan assets to Italian oil group Eni SpA ( ENI.MI ) for between $1.3-1.5 billion, a person familiar with the matter said on Sunday Talks are continuing and a deal could be announced as early as Monday, the person said. Heritage is examining paying a special dividend to return some of the proceeds to shareholders, the person added. The Sunday Times reported that Heritage will pay a special dividend of 90 pence to 100 pence per share, citing no sources. Heritage Chief Executive Tony Buckingham, who previously ran companies which hired out mercenaries in Africa, could get about 84 million pounds ($126 million) from his 33 percent stake in the company, the paper said. Heritage, which is in talks with Turkey’s Genel Energy regarding a proposed $6 billion merger, is the operator and holds a 50 percent interest in two licences in Uganda. The fields are estimated to contain more than 700 million barrels of gross resources. Tullow Oil ( TLW.L ) holds the remainder of the two licences located in the Albert Basin, close to the Democratic Republic of Congo, and is looking to sell up to 50 percent of its stake. A spokeswoman for Eni declined to comment, while Heritage could not be reached. On Tuesday, Heritage said merger talks with Genel were ongoing and that it hoped to reach a formal agreement before the end of the year. [ID:nL0122820] It also said it was planning for early commercialisation of the Ugandan oil resources, with potential first production in 2011. (Editing by Jon Loades-Carter) ($1=.6645 Pound) ((julie.crust@thomsonreuters.com; +44 207 542 3847)) Read the r est here: Heritage, Eni close to $1.5 bln Uganda deal-source

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WASHINGTON (AP) — Invoking the memory of Edward M. Kennedy, Democrats united Saturday night to push historic health care legislation past a key Senate hurdle over the opposition of Republicans eager to inflict a punishing defeat on President Barack Obama. There was not a vote to spare. AP – Senate Majority Whip Richard Durbin of Ill., accompanied by, Sen. Jack Reed, D-R.I., left, and Sen. Robert Menendez, … The 60-39 vote cleared the way for a bruising, full-scale debate beginning after Thanksgiving on the legislation, which is designed to extend coverage to roughly 31 million who lack it, crack down on insurance company practices that deny or dilute benefits and curtail the growth of spending on medical care nationally. The spectator galleries were full for the unusual Saturday night showdown, and applause broke out briefly when the vote was announced. In a measure of the significance of the moment, senators sat quietly in their seats, standing only when they were called upon to vote. In the final minutes of a daylong session, Majority Leader Harry Reid, D-Nev., accused Republicans of trying to stifle a historic debate the nation needed. “Imagine if, instead of debating whether to abolish slavery, instead of debating whether giving women and minorities the right to vote, those who disagreed had muted discussion and killed any vote,” he said. The Republican leader, Sen. Mitch McConnell of Kentucky, said the vote was anything but procedural — casting it as a referendum on the bill itself, which he said would raise taxes, cut Medicare and create a “massive and unsustainable debt.” For all the drama, the result of the Saturday night showdown had been sealed a few hours earlier, when two final Democratic holdouts, Sens. Mary Landrieu of Louisiana and Blanche Lincoln of Arkansas, announced they would join in clearing the way for a full debate. “It is clear to me that doing nothing is not an option,” said Landrieu, who won $100 million in the legislation to help her state pay the costs of health care for the poor. Lincoln, who faces a tough re-election next year, said the evening vote will “mark the beginning of consideration of this bill by the U.S. Senate, not the end.” Both stressed they were not committing in advance to vote for the bill that ultimately emerges from next month’s debate. Of particular contentiousness to moderates is a provision for the government to sell insurance in competition with private companies, subject to state approval — a part of Reid’s bill expected to come under significant pressure as the debate unfolds. Even so, their announcements marked a major victory for Reid and the White House in a year-end drive to enact the most sweeping changes to the nation’s health care system in a half-century or more. At the White House, press secretary Robert Gibbs issued a statement saying the president was gratified by the vote, which he says “brings us one step closer to ending insurance company abuses, reining in spiraling health care costs, providing stability and security to those with health insurance, and extending quality health coverage to those who lack it.” The legislation would require most Americans to carry insurance and provide subsidies to those who couldn’t afford it. Large companies could incur costs if they did not provide coverage to their workforce. The insurance industry would come under significant new regulation under the bill, which would first ease and then ban the practice of denying coverage on the basis of pre-existing medical conditions. Congressional budget analysts put the legislation’s cost at $979 billion over a decade and said it would reduce deficits over the same period while extending coverage to 94 percent of the eligible population. At its core, the legislation would create insurance exchanges beginning in 2014 where individuals, most of them lower income and uninsured, would shop for coverage. The bill sets aside hundreds of billions of dollars in tax credits to help those earning up to 400 percent of poverty, $88,200 for a family of four. The House approved its version of the bill earlier this month on a near party line vote of 220-215, and Reid has said he wants the Senate to follow suit by year’s end. Timing on any final compromise was unclear. All 58 Senate Democrats and two independents voted to advance the bill. All 39 votes in opposition were cast by Republicans. GOP Sen. George Voinovich of Ohio was the only senator not to vote. Montana Sen. Max Baucus, the chairman of the Senate Finance Committee who has labored on health care for more than a year, flew in from his home state on a government plane for the vote and was returning afterward to be with his ailing mother. While timing made Landrieu and Lincoln the final two Democrats to announce their intentions, Sen. Paul Kirk of Massachusetts had a clear claim as the 60th vote. Appointed to office this fall after the death of Kennedy, who championed health care issues for decades, Kirk said he spoke for those “who for so many years revered and loved and elected and re-elected (him) … that I think they’re all — they all, as we do, have him in our minds and our hearts tonight. …” Sen. Chris Dodd, D-Conn., echoed those sentiments later in the evening when he referred to Kennedy’s “lifelong quest” for national health care and said “tonight and in the days to come we will pay him the highest compliment by fulfilling that” goal. At a post-vote news conference, Reid said he had talked with Kennedy’s widow, Vicki, about the vote. “We both said Ted would be happy,” Reid said. In hours of debate before the Saturday evening vote, a few Republicans piled copies of the 2,074-page bill on their desks while others criticized it as a government takeover of health care and worse. “Move over, Bernie Madoff. Tip your hat to a trillion-dollar scam,” said Sen. Kit Bond, R-Mo., likening the bill’s supporters to the imprisoned investor who fleeced millions. In her remarks, Landrieu said, “I’ve decided that there are enough significant reforms and safeguards in this bill to move forward, but much more work needs to be done.” She also touted the $100 million included in the legislation to help her state cover its costs under Medicaid, the state-federal health care program for the poor. Lincoln referred repeatedly to the political controversy surrounding the issue. She said $3.3 million has already been spent by outside groups advertising either for or against health care legislation in her state, and said, “these outside groups seem to think that this is all about my re-election. I simply think they don’t know me very well.” To finance the expanded coverage, Reid proposed higher taxes as well as cuts totaling hundreds of billions of dollars in projected Medicare payments. Hardest hit would be the private insurance Medicare plans, although providers such as home health agencies would also receive significantly less in future years than now estimated. The bill raises payroll taxes on incomes over $200,000 for individuals and $250,000 for couples. Reid eased the impact of an earlier proposal to tax high-value insurance plans, which has emerged as one of the principal methods for restraining the growth in health costs. The bill includes tax increases on insurance companies, medical device makers, patients electing to undergo cosmetic surgery and drugmakers. Associated Press writer Donna Cassata contributed to this article. See the rest here: Historic health care bill clears Senate hurdle (AP)

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WASHINGTON (AP) — Democrats have hit the magic number of 60 to move ahead on historic health care legislation. Arkansas Sen. Blanche Lincoln said on the Senate floor that she will vote with her party, hours before the 8 p.m. EST roll call. She said it was important that the Senate begin debate on a critical issue. The centrist Democrat was the lone holdout. Facing unanimous Republican opposition, Senate Majority Leader Harry Reid needed the 58 Democrats and two independents to vote to move forward on the sweeping bill to remake the nation’s health care system. Shortly before 1 p.m. EST, another centrist fence-sitter, Democratic Sen. Mary Landrieu of Louisiana, said she would vote yes. Originally posted here: Dems snare 60 votes to move ahead on health care (AP)

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WASHINGTON (AP) — A crucial first Senate vote on President Barack Obama’s health care overhaul in a rare Saturday night session looms as a test of Democratic unity and the president’s prestige. AP – Senate Majority Whip Richard Durbin of Ill., right, followed by Sen. Jack Reed, D-R.I., leave a health care … Democratic leaders are optimistic of success, but they need every Democrat and both independents to vote “yes,” and two moderates remained uncommitted ahead of the roll call, which is expected around 8 p.m. The vote will determine whether debate can go forward on Majority Leader Harry Reid’s 2,074-page bill to dramatically remake the U.S. health care system over the next decade. Most everyone would be required to purchase insurance under Reid’s legislation, and billions in new taxes would be levied on insurers and high-income Americans to help extend coverage to 30 million uninsured. Insurance companies would no longer be allowed to deny coverage to people with medical conditions or drop coverage when someone gets sick. The two holdouts are Sens. Blanche Lincoln of Arkansas and Mary Landrieu of Louisiana. A third centrist, Ben Nelson of Nebraska, announced Friday that he’d be supporting his party on the test vote, while cautioning that it didn’t mean he’d be with them on the final vote. “It is not for or against the new Senate health care bill,” Nelson said. “It is only to begin debate and an opportunity to make improvements. If you don’t like a bill, why block your own opportunity to amend it?” If that same reasoning holds with Lincoln and Landrieu, Reid, D-Nev., will have the 60 votes he needs to prevail in the 100-seat Senate. The 40 Republicans are unanimously opposed. Landrieu has made comments suggesting she’ll support the move to debate, but Lincoln, who faces a difficult re-election next year, carefully avoided taking any public position Friday. Republicans took to the Senate floor to slam the bill as a government takeover that would increase taxes and lead to rationing of health care. “Washington will tell you what is good enough coverage,” said Sen. Mike Enzi, R-Wyo. “These insurance changes will increase costs for millions of Americans.” Democrats said their legislation could make historic and necessary improvements in the country’s social safety net. “Prices of health care are marching relentlessly upwards, and so too many people don’t have coverage,” said Sen. Byron Dorgan, D-N.D. “The purpose of all of this is to try to get a handle on it somehow.” The White House issued a statement late Friday praising the Senate measure. “This bill provides the necessary health reforms that the administration seeks — affordable, quality care within reach for the tens of millions of Americans who do not have it today, and stability and security for the hundreds of millions who do,” the statement said. The action in the Senate comes two weeks after the House approved a health overhaul bill of its own on a 220-215 vote. After the vote Saturday night, senators will leave for a Thanksgiving recess. Upon their return, assuming Democrats prevail on the vote, they will launch into weeks or more of unpredictable debate on the health care bill, with numerous amendments expected from both sides of the aisle and more 60-vote hurdles along the way. Senate leaders hope to pass their bill by the end of the year. If that happens, January would bring work to reconcile the House and Senate versions before a final package could land on Obama’s desk. The bills have many similarities, including the new requirements on insurers and the creation of new purchasing marketplaces called exchanges where self-employed individuals and small businesses could go to shop for and compare coverage plans. One option in the exchanges would be a new government-offered plan, something that’s opposed by private insurers and business groups. Differences include requirements for employers. The House bill would require medium and large businesses to cover their employees, while the Senate bill would not require them to offer coverage but would make them pay a fee if the government ends up subsidizing employees’ coverage. Another difference is in how they’re paid for. The Senate bill includes a tax on high-value insurance policies that’s not part of the House bill, while the House would levy a new income tax on upper-income Americans that’s not in the Senate measure. The Senate measure also raises the Medicare payroll tax on income above $200,000 annually for individuals and $250,000 for couples. Both bills rely on more than $400 billion in cuts to Medicare. The Senate bill was written by Reid in private negotiations with White House officials, combining elements of two committee-passed bills and making additional changes with an eye to getting the necessary 60 votes. Along the way, Reid sweetened the pot for individual senators, adding federal funds for Louisiana and agreeing to support an amendment written by Sen. Ron Wyden, D-Ore., that would expand eligibility for the purchasing exchanges. Visit link: Initial Senate vote looms on health legislation (AP)

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WASHINGTON (AP) — Suitably opaque, Section 2006 takes up only a few dozen lines in a sweeping health care bill that runs to 2,074 pages and mentions neither Sen. Mary Landrieu nor her state of Louisiana. AP – Sen. Mary Landrieu, D-La., walks in the Capitol before heading into a Democratic caucus on health care reform … But the section’s purpose is indisputable: to deliver $100 million or more in federal funds to the state. And in the process clear the way for one of three moderate Democratic fence-sitters — Ben Nelson of Nebraska and Blanche Lincoln of Arkansas are the others — to help propel the legislation past its initial hurdle in a crucial Saturday vote. Nelson, Landrieu and Lincoln emerged several days ago as the last public holdouts among 58 Democrats and two independents whose votes Majority Leader Harry Reid and the White House must have to overcome the Republicans’ attempt to strangle the bill before serious debate can begin. Each has moved carefully with an eye on home-state voters. And inside the Senate, each has taken advantage of the political leverage newly available. Alone among the three, Nelson issued a statement Friday ending any lingering public suspense about his intentions. “The Senate should start trying to fix a health care system that costs too much and delivers too little for Nebraskans,” he said, adding his decision should not be seen as an indication of how he will vote on the legislation itself. Nelson had been publicly signaling his intentions for more than a week, and his words presumably came as no surprise to Reid or the White House, which issued a statement Friday saying the bill “provides the necessary health reforms that the administration seeks.” This sort of political minuet can be delicate, as shown when the Senate’s second-ranking Democrat, Dick Durbin of Illinois, said earlier on Friday that Lincoln had already confided to Reid how she planned to vote. Republicans, eager to scuttle the bill — and defeat Lincoln in 2010 — instantly accused the two-term senator of telling Democratic party leaders before informing her own constituents in Arkansas. “No other senator speaks for Senator Lincoln. She is still reviewing the bill,” declared the senator’s spokeswoman, Leah Vest DiPietro, adding her boss had not yet made up her mind. For his part, Durbin sought to quickly close the loop with a statement saying he had been unclear and misinterpreted. As for Nelson, several officials, speaking on condition of anonymity, said he had insisted Reid omit from the bill any change in the insurance industry’s protection from federal antitrust law. The House version of the legislation would expose the industry to scrutiny by both the Justice Department’s antitrust lawyers and the Federal Trade Commission. Reid, who spoke out strongly in favor of the change in antitrust treatment earlier in the fall, left it out of the bill he drafted over several weeks and unveiled on Wednesday. Lincoln has been the most close-mouthed about her intention. As a committee chairman, she is the most powerful of the group. As the only one of the three seeking re-election next year, she is also the most politically vulnerable. In public, she has asked that the bill be available for 72 hours before the vote occurs. In private, her demands have been more substantive, according to officials who did not describe them. She is virtually certain to be criticized no matter what her vote. After the House cleared its version of the legislation this month, a conservative group began airing commercials criticizing Rep. Vic Snyder, D-Ark., for voting in its favor. At the same time, MoveOn.org, a liberal organization, slammed another one of the state’s lawmakers, Rep. Mike Ross, for opposing it. A hint: At home, Lincoln has suggested her vote will be influenced by former President Bill Clinton, who was Arkansas governor for 12 years before winning the White House. Clinton recently met privately with Senate Democrats, telling them that passing an imperfect bill was better than nothing. “We don’t ever go to Washington with the idea that we’re going to create a work of art,” Lincoln said afterward. “It’s got to be a work in progress.” She and the other moderates face pressure from business groups opposed to the legislation. In a statement Friday the Business Roundtable, which represents big company CEOs, said the Senate bill “will not effect the needed changes to measurably improve the American health care system.” Democrats and the White House had seized on a report by the same group last week concluding that some of the provisions under consideration by Congress had the potential to tame runaway medical inflation. Of the three centrists, Landrieu has been the clearest about her intentions, and her interests ranged beyond health insurance to the oysters for which Louisiana is famous. When the Food and Drug Administration proposed banning sales of raw oysters from the Gulf of Mexico during warm weather months, Landrieu and others objected. A week ago, the agency thought better of the idea and shelved the plan in favor of further study. “I’m really thankful that they listened,” said Landrieu, who had met with FDA Commissioner Margaret Hamburg to discuss the issue. Over recent weeks, Landrieu has issued a string of statements outlining the areas she wanted addressed for the benefit of her constituents — issues that could be dealt with only after health legislation made it to the Senate floor. After meeting with Reid almost a month ago, she mentioned the “unique challenges Louisiana is facing in terms of Medicaid.” In a Senate speech and statement, she noted that Louisiana has the highest breast cancer death rate in the country and the lowest female life expectancy of any state. And she said, “Unless something is done, annual health care costs for small firms over the next 10 years are expected to more than double to reach $339 billion in 2018.” Landrieu can point to provisions in the legislation that are designed to attack all three problems. They include Section 2006. Reading it is of little assistance. “Special adjustment to FMAP Determination for Certain States recovering from a Major Disaster” is the title, and about two pages of similarly indecipherable legalese follows. According to the Congressional Budget Office, it will send an additional $100 million to Louisiana to help it cover costs for Medicaid, the federal-state health care program for the poor. Should Landrieu decide to side with Republicans this weekend, she would also be voting to deny her state those funds. Associated Press writer Andrew DeMillo in Little Rock, Ark., contributed to this story. Originally posted here: Moderate Dems pivotal in Saturday health care vote (AP)

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WASHINGTON (AP) — Taking aim at Wall Street and the U.S. central bank, an important House committee voted Thursday to assess fees on large financial firms to pay for the failure of their peers and to require a sweeping congressional audit of the secretive Federal Reserve. AP – Treasury Secretary Timothy Geithner testifies on Capitol Hill in Washington, Thursday, Nov. 19, 2009, before the Joint Economic … The votes were the final brush strokes to the House Financial Services Committee’s response to last year’s banking meltdown. In a surprise, however, Democratic committee Chairman Barney Frank delayed final action on a long-awaited regulatory overhaul bill until after next Thursday’s Thanksgiving national holiday. Frank said members of the Congressional Black Caucus requested the delay because they were “troubled by a lack of response to the economic situation.” Lawmakers have been pressing the Obama administration to take further steps to help the unemployed and create more jobs. “This is a critical issue for my constituents,” said committee Democrat Maxine Waters, a member of the black caucus. The votes on fees and on the Fed audit came despite objections from the Obama administration. They illustrated the strong sentiment in Congress to curb the central bank’s power and assure voters that taxpayers will not lose money in future Wall Street failures. If Frank can win final passage in his committee in two weeks, the House could vote on the full overhaul next month. The Senate Banking Committee began its own rewrite of the rules that govern Wall Street on Thursday, but the committee’s top Republican panned the bill proposed by its chairman, Democrat Christopher Dodd. From the sidelines, Treasury Secretary Timothy Geithner prodded Congress to move quickly on the measures. In seeking to have large firms pay upfront fees to dismantle failing nonbank financial institutions, the House committee rejected warnings from the Obama administration and objections from big Wall Street companies. The money would be paid into a $150 billion “dissolution fund” by firms with assets of more than $50 billion. Hedge funds with assets of more than $10 billion also would have to pay. The Federal Deposit Insurance Corp. would use the fund to unravel and break up collapsing nonbank financial firms. The FDIC, formed to protect individuals’ deposits in banks, also could borrow an extra $50 billion, provided Congress approved. Treasury Secretary Timothy Geithner and Wall Street prefer that the fee be assessed after a failed firm has been dismantled. Such a step, however, could require upfront payment by taxpayers. “This amendment will end taxpayer financed bailouts, eliminate `too big to fail’ (firms) and will create a system going forward where we force the big-bank, Wall Street fat cats to pay any mess they make,” said Democratic Rep. Luis Gutierrez. On auditing the Fed, the committee adopted a plan by Republican Rep. Ron Paul that had the support of a bipartisan roster of more than 300 members of Congress. It would give the Government Accountability Office the authority to audit the entirety of the Fed’s balance sheet, credit facilities and all securities purchase programs. Critics, led by Frank and Democratic Rep. Melvin Watt, argued that Paul’s proposal was too intrusive and could indirectly lead to higher interest rates. They proposed a more limited audit. “If we open all of the discussions, the deliberations, the transactional gives and takes, what we will do is scare off capital because other governments will not deal with our Fed,” Watt said. Paul, who ran a long-shot campaign for president last year, argued Watt’s more limited proposal would exclude much of the Fed’s work from scrutiny. “There is no reason in the world why this country and our people can’t know eventually about what’s going on in the Federal Reserve,” Paul said. In the Senate, Republican Sen. Richard Shelby, top Republican on the Senate’s banking panel, sharply criticized Dodd’s proposed legislation. “It significantly expands the federal government’s ability to bail out not only banks, but any large, politically connected company,” Shelby said. Dodd could still pass the bill with Democratic votes in his committee but would find it far more difficult to get the needed votes in the full Senate without some Republican backing. Dodd argued that a year after the near collapse of the financial system, it was now time to correct the government’s oversight. “As we sit here today, with gaping holes in our regulatory structure, we cannot tell our constituents that we’re ready to prevent another shock,” he said. Read the original post: US Panel sets fees for big firms, aims to slow Fed (AP)

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WASHINGTON (AFP) – US lawmakers criticized US President Barack Obama’s administration Thursday for not pressuring China enough over its rigid currency as they set the stage for slapping import duties on Chinese goods. As Obama returned home without any pledge from China to make its yuan flexible, Republican and Democratic lawmakers sent a letter to the Commerce Department calling for an investigation into “China?s currency manipulation.” It is “a potential first step in a process that could lead to significant, US-imposed tariffs on imports from China,” said Democratic Senator Charles Schumer, who jointly wrote the letter with Republican Senator Lindsey Graham. The Obama administration, like the Bush administration before it, has refused to brand China a currency manipulator under a law requiring it to determine whether any foreign economy manipulates its currency against the US dollar. The bipartisan move Thursday asking for the probe was “an alternative path to formally rebuke China,” Schumer said. “If the agency determines that China?s currency practices amount to a form of subsidy that is actionable under international trade agreements, the Chinese could be subject to stiff penalties,” he said. Lawmakers and several industry groups claim that Beijing was artificially weakening the yuan value to boost its export competitiveness, a factor they blamed on the record 268 billion dollar trade deficit with China last year. US Treasury Secretary Timothy Geithner faced tough questioning on the yuan issue from lawmakers Thursday during a hearing of the congressional joint economic committee, one of the rare legislative panels with both House of Representatives and Senate members. “I just think it’s time to get the stick out and say, ‘Okay, we have to do something about this. This is going the wrong direction,’” Republican Senator Sam Brownback said. Also Thursday, the US-China Economic and Security Review Commission, a congressional advisory panel, called on lawmakers to consider legislation “that has the effect of offsetting the impact on the US economy of China?s currency manipulation.” Geithner assured lawmakers he was confident China would allow its currency to be more flexible, citing a commitment Beijing had made to allow the yuan to fluctuate. “China, as I’ve said many times, has committed to move,” he said. “They understand they need to do it. I think they want to do it. And I’m actually quite confident they will do it.” Geithner acknowledged that China and several other Asian nations had intervened in the foreign exchange market, apparently to contain the rise of their currencies. “The scale of intervention declined dramatically in the peak of the crisis. It started to increase again in China and countries around the world,” he said, citing the latest financial crisis which peaked around the end of 2008. Obama, on his maiden China visit, tactfully voiced US worries that China’s yuan currency was being kept artificially low to boost Chinese exports. “I was pleased to note the Chinese commitment, made in past statements, to move toward a more market-oriented exchange rate over time,” Obama said as Chinese leader Hu Jintao looked on. “I emphasized in our discussions, as have others in the region, that doing so based on economic fundamentals would make an essential contribution to the global (economic) rebalancing effort,” Obama said. Hu made no fresh offer of action. International Monetary Fund chief Dominique Strauss-Kahn had said Beijing should let the yuan rise “sooner rather than later,” saying it would benefit both China and the global economy. “The renminbi (yuan) is undervalued. It’s not only in the interests of the global economy but also in the interests of China to have a revaluation,” Strauss-Kahn said in a trip to Beijing also this week. The yuan’s exchange rate with the dollar has been virtually at a fixed rate to the mostly weak US dollar since July 2008, three years after Beijing decided to abandon the Chinese currency’s decade-old peg to the greenback. Between 2005 and the summer of 2008, the yuan appreciated by about 21 percent, at which point Beijing set its value at around 6.8 to the dollar, said the US-China commission in its report. “The RMB (yuan) remains undervalued,” it said, adding that the extent of the undervaluation was hard to estimate because it has never been freely traded. Link: US lawmakers threaten China sanctions over currency

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* Nikkei down 1.3 pct, Topix hits 7-mth closing low * MUFG falls after announcing huge fundraising * Exporters down as yen rises * Loss-cut selling by retail investors hits shares * Volume surges to 2.6 bln shares, 50% above last week’s avg By Masayuki Kitano TOKYO, Nov 19 (Reuters) – Japan’s benchmark Nikkei share average fell 1.3 percent to a four-month closing low on Thursday, with the nation’s biggest bank Mitsubishi UFJ Financial Group ( 8306.T ) sliding after announcing a massive fundraising. MUFG fell 3.7 percent to 466 yen after saying on Wednesday it would raise $11 billion to meet stricter capital rules, the latest in a wave of fundraising that has seen Japanese companies already raise $40 billion through issuing common stock and convertible bonds this year. [ID:nT211831] Shares fell in heavy volume, and exporters took a hit as the yen rose against the dollar and other currencies, with Honda Motor Co ( 7267.T ) falling 3.5 percent to 2,740 yen. “With the capital raisings, the yen’s strength and politics, there is three times the pain,” said Tomomi Yamashita, a fund manager at Shinkin Asset Management. Concerns about the fiscal and economic policies of the new Democratic Party-led government have weighed on Tokyo shares in the past few months. The benchmark Nikkei fell 127.33 points to 9,549.47 .N225, its lowest close in four months. The Nikkei fell earlier to a four-month intraday low of 9,496.07, edging down towards support at the 200-day moving average that now lies at 9,337.29. The broader Topix index, which broke below its 200-day moving average last week, slid 1.5 percent to 837.71, its lowest closing level in nearly seven months. Trading volume surged, with 2.6 billion shares changing hands on the Tokyo exchange’s first section, compared to last week’s daily average of 1.7 billion. Masayoshi Okamoto, head of dealing at Jujiya Securities, said part of the selling pressure likely came from retail investors hit with margin calls and forced to liquidate long positions. Some in the market said the Nikkei may be oversold and that could set the stage for a rebound.  Continued… The rest is here: Nikkei falls to 4-month closing low, banks slide (at Reuters)

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WASHINGTON (AP) — Setting up a historic year-end debate, Senate Democratic leader Harry Reid unveiled his long-awaited version of legislation to reshape the nation’s health care system Wednesday night, a measure designed to extend coverage to 94 percent of eligible Americans and bar private industry from denying insurance because of pre-existing medical conditions. AP – Senate Majority Leader Sen. Harry Reid, D-Nev., speaks to the media about the Democratic health care bill on … “Tonight begins the last leg of this journey,” said the Nevada Democrat, less than two weeks after the House approved its version — and nearly 10 months after President Barack Obama’s Inauguration Day summons to action. Reid’s Senate measure would require most Americans to carry health insurance and would provide hundreds of billions of dollars in subsidies to help those at lower incomes afford it. It also would mandate that large companies to provide coverage to their workers. At its core, it would set up new insurance marketplaces — called exchanges — primarily for those who now have a hard time getting or keeping coverage. Consumers would have the choice of purchasing government sold insurance, an attempt to hold down prices charged by private insurers. Initial maneuvering on the Senate floor was expected later in the week on the measure, bitterly opposed by Republicans eager to deny Obama a victory on his top domestic priority. After weeks of secretive drafting, Reid outlined the legislation to rank-and-file Democratic senators at a closed-door meeting. “Everyone was positive,” said Sen. Amy Klobuchar, D-Minn. That didn’t mean there weren’t problems — far from it. At his news conference, Reid pointedly refrained from saying he had the 60 votes necessary to propel the bill over its first hurdle. Reid met privately earlier in the day with Sens. Ben Nelson of Nebraska, Mary Landrieu of Louisiana and Blanche Lincoln of Arkansas, moderate Democrats who have expressed concerns about the measure. With the support of two independents, Democrats have 60 seats, the precise number needed to choke off any delaying tactics by the 40 Republicans who appear united in opposition to the bill in its current form. “This bill has been behind closed doors for weeks,” said Sen. Mitch McConnell of Kentucky, the Republican leader. “Now, it’s America’s turn, and this will not be a short debate. Higher premiums, tax increases and Medicare cuts to pay for more government. The American people know that is not reform.” In general, Reid proposed an outline that is similar to the House-passed bill, but there were important differences. He called for an increase of a half percentage point in the Medicare payroll tax for individuals with income over $200,000 a year, $250,000 for couples. He also included a tax on high-value insurance policies, a measure designed to curb the appetite for expensive care. The House bill contains neither of those two provisions, relying on an income tax surcharge on the wealthy to finance the bill. Reid’s measure also calls for hundreds of billions of dollars in cuts in future Medicare spending, an attempt to satisfy Obama’s call to curtail the growth of health care spending that is fiercely opposed by Republicans. Follow this link: $849 billion health bill sets up historic debate (AP)

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By Kevin Drawbaugh Reuters – Four thousand U.S. dollars are counted out by a banker counting currency at a bank in Westminster, Colorado … {”s” : “aig,bac,c,gs,jpm”,”k” : “c10,l10,p20,t10″,”o” : “”,”j” : “”} WASHINGTON (Reuters) – Some of the world’s largest financial firms on Monday urged a top U.S. lawmaker not to pursue big bank break-up legislation, an idea attracting interest in Congress and causing alarm on Wall Street. The Financial Services Forum, a lobbying group for CEOs of firms including Goldman Sachs (NYSE: GS – News ) and JPMorgan Chase (NYSE: JPM – News ), said empowering regulators to break up “too-big-to-fail” banks “could lead to long-term damage to the U.S. economy.” The forum made its comments in a letter to U.S. House of Representatives Financial Services Committee Chairman Barney Frank, a Massachusetts Democrat, that was obtained by Reuters a day before Frank’s panel resumes work on financial reform legislation. Seeking to shift Capitol Hill’s debate on what to do about firms that may endanger global economic stability, the forum said size alone does not make firms risky. Rather, it said, over-concentration in specific markets raises levels of risk. In addition, the forum said, large firms can make bigger loans, offer customers more products and services and achieve greater geographic reach. “To be sure, ‘too big to fail’ must be eliminated. But the problem is not that some institutions are too large. It’s that there is currently no legal authority to unwind, in an orderly way, a failing financial conglomerate,” it said. Arguments about concentration risk, global competitiveness and firms’ sheer size will dominate debate in the days ahead as Congress tries to craft what is shaping up to be the most contentious piece of the government’s regulatory response to last year’s financial crisis, the worst in generations. The Obama administration and Congressional Democrats want a new way to handle failing firms. The goal is to prevent another debacle like last year’s, when Lehman Brothers collapsed, triggering a credit crisis, and taxpayers bailed out AIG (NYSE: AIG – News ), Citigroup (NYSE: C – News ) and Bank of America (NYSE: BAC – News ), among others. Frank’s committee will debate a bill beginning on Tuesday that would give the government far-reaching new powers to regulate and restructure large financial firms whose failure could undermine the broader financial system and the economy. The Senate Banking Committee has tentatively scheduled a working session for Thursday on similar legislation, introduced last week by committee Chairman Christopher Dodd. Both committees’ debates are expected to continue for some time. No final House floor vote is likely before December, and analysts don’t expect final Senate action until early 2010. At the Wall Street Journal CEO Council conference, White House Chief of Staff Rahm Emanuel said he is planning to meet members of Frank’s committee late Monday to discuss regulatory reform. He said that he expects Frank’s committee to vote on the bill this week and the full House of Representatives could start debate in the next two weeks. As soon as this week, Democratic Representative Paul Kanjorski, chairman of the House capital markets subcommittee, is expected to offer an amendment that would try to prevent firms from getting “too big to fail” in the first place. Senator Bernie Sanders, a Vermont independent, has introduced a similar bill to give government authorities the power to identify and break up firms that are too big to fail. Small- and mid-sized banks, which have demonstrated considerable political clout through the financial reform debate, will support such legislation, which would cut their largest rivals down to size, lobbyists said. In the European Union, regulators are considering measures to force banks across Europe to sell assets and sometimes even break up to compensate for massive state aid they have received. “Although we think that breaking up the larger banks would be positive for the U.S. economy as it would enhance competition … we acknowledge that any action on breaking up large banks is likely a couple years out,” said Paul Miller, policy analyst at investment firm FBR Capital Markets. (Additional reporting by John Poirier) Originally posted here: Banks sense danger, warn Congress on breakup power (Reuters)

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By Stanley White and Tetsushi Kajimoto TOKYO (Reuters) – Japan’s government could agree as much as $30 billion in new stimulus measures on Monday as economic growth is likely to slow next year due to sluggish personal spending and rising inventories. Economists doubt whether that amount will be enough to push up growth significantly as the Democratic Party-led government will fund the stimulus with money cut from a budget compiled by the previous administration. Japan’s massive national debt means the Democrats don’t have the leeway to spend much more. The economy grew 1.2 percent in the third quarter, nearly double the forecast and the fastest pace in more than two years, but that was partly due to stimulus that the previous government enacted. The better-than-expected headline figure also failed to mask signs of weakness in private consumption and factory output. Finance Minister Hirohisa Fujii said the extra budget won’t exceed 2.7 trillion yen and the cabinet could announce the details later on Monday, Kyodo news reported. “The size of the stimulus comes from what they’ve cut elsewhere, so the effect on the economy could be close to neutral,” said Satoru Ogasawara, economist at Credit Suisse in Tokyo. “Strength in domestic demand will likely continue for the remainder of this year, but we expect some softness in the economy next year.” Japan’s gross domestic product (GDP) growth was much faster than the median estimate for 0.7 percent growth and was the largest gain since the first quarter of 2007. It compared with a revised 0.7 percent expansion in the second quarter of this year, which was the first growth in five quarters. For a graphic of Japan, U.S. and Euro zone GDP, click http://r.reuters.com/car69f MINISTER LEAKS FIGURES In a headache for Prime Minister Yukio Hatoyama’s cabinet, Trade Minister Masayuki Naoshima leaked the GDP numbers to oil industry executives shortly before the embargo time, raising questions about the two-month old government’s ability to handle confidential information. December 10-year JGB futures eased to 138.74 after the GDP data, but later reversed course and climbed to 138.93 on concern that the economic growth will lose traction. “The economy is expected to continue to recover as overseas economies improve,” National Strategy Minister Naoto Kan told reporters after the data. “At the same time, the employment situation remains very bad and downside risks exist in overseas economies.” Kan added that he saw signs Japan was entering deflation and wanted to work closely with the Bank of Japan to avoid deflation from deepening. Deflation can hurt the economy because a pattern of falling prices causes consumers and businesses to delay purchases, dragging the economy down further. Private consumption rose 0.7 percent, better than a forecast for a 0.5 percent rise but slower than a 1.0 percent increase in the previous quarter. Domestic demand contributed 0.8 percentage point to growth, the first positive contribution in six quarters. CAPITAL SPENDING UP Subsidies and tax breaks enacted by the previous government helped private consumption, but the pace of the rise was slower than the quarter before and an expected fall in year-end bonuses and a soft labor market mean households will have less to spend. “With weakness ahead in private consumption or public spending, a slowdown is unavoidable in the January-March and April-June quarters,” said Kyohei Morita, chief economist at Barclays Capital in Tokyo. “The one bright spot is that capital spending turned positive. However, while this signals that capital spending is starting to rise from the bottom, the size is still not enough to promise the kind of speed that would be required to prevent a slowdown in the first half of 2010.” Capital expenditure rose 1.6 percent, the first gain in six quarters and faster than a 0.1 percent increase forecast by economists. But in an ominous sign for the manufacturing cycle, inventories of goods started to increase, contributing 0.4 percentage point to growth in July-September, the first positive contribution since October-December 2008. “Companies have been increasing production for about a year now, and inventories are likely to start piling up toward year-end and around the Chinese New Year,” said Yasuo Yamamoto, senior economist at Mizuho Research Institute in Tokyo. “This could lead to a slowdown in Japanese production and Japanese growth in April-June 2010.” Most economists say there is little chance of Japan’s economy, which extended its rebound to a second quarter, returning to recession as stimulus spending overseas should support export demand. Japan’s exports rose 6.4 percent in the third quarter, matching their increase in the previous three months. Still, downward pressure on prices remains strong, as the domestic demand deflator fell 2.6 percent in the third quarter from a year earlier, the largest drop in 51 years. Economists polled by Reuters expect Japan’s GDP to grow 0.3 percent in October-December and then slow to 0.1 percent growth in January-March 2010. (Editing by Hugh Lawson) Read the r est here: Japan extra stimulus likely, GDP fails to convince (Reuters)

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(For full coverage of Obama’s Asia visit, click ID:nOBAMAASIA]) * U.S., Japan ties strained by U.S. base plan * Obama, Hatoyama agree alliance is vital * Two leaders agree to cooperate on non-proliferation By Yoko Nishikawa and Caren Bohan TOKYO, Nov 13 (Reuters) – U.S. President Barack Obama and Japanese Prime Minister Yukio Hatoyama pledged on Friday to revitalise their strained security alliance as they adapt to a rapidly rising China. Washington’s relations with Hatoyama’s government, which has promised to oversee a diplomatic course less dependent on its long-time ally and forge closer ties with Asia, are frayed by a dispute over a U.S. military base. “I told him that the U.S-Japan alliance is the cornerstone of everything,” Hatoyama told reporters after their summit. “But given the changing times and global environment, I would like to deepen the alliance and create a new U.S.-Japan alliance that is constructive and future-oriented.” Obama, on his first trip to Asia as leader, agreed. “Our alliance will endure and our efforts will be focused on revitalising that friendship so that it’s even stronger and more successful in meeting the challenges of the 21st century.” Tokyo is the first stop in Obama’s nine-day Asian tour that takes Obama to Singapore for an Asia-Pacific summit, to China for talks on climate change and trade imbalances, and to South Korea, where North Korea’s nuclear ambitions will be in focus. Hatoyama and Obama agreed on a plan to review their alliance over the next year, with a view to deepening it as they celebrate the 50th anniversary of their security treaty. Hatoyama, whose Democratic Party defeated its long-dominant rival in an August election, repeated his view that a row over on the U.S. Marines’ Futenma air base on southern Okinawa island should be resolved as soon as possible. The base is a key part of a realignment of the 47,000 U.S. troops in Japan. [ID:nT80081] (Additional reporting by Isabel Reynolds ; Editing by Rodney Joyce and Nick Macfie) See original here: U.S., Japan vow to revitalise strained ties (at Reuters)

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NEW YORK (AP) — The rumors are true, according to Sarah Palin: The McCain-Palin campaign was not a happy family. AP – In this book cover image released by Harper, “Going Rogue: An American Life,” by Sarah Palin, is shown. … In Palin’s new memoir, “Going Rogue,” she confirms reports of tension between her aides and those of the 2008 Republican presidential candidate, Sen. John McCain. The vice presidential candidate confirms that she had wanted to speak on election night, but was denied the chance and says she was kept “bottled up” from reporters during the campaign. Palin also writes harshly of CBS anchor Katie Couric, whom she describes as “badgering” and biased. Palin’s series of interviews with Couric were widely regarded as disastrous, leaving the impression of an ill-informed candidate who was unsuited for the job. The 413-page book with 16 pages of color photos but no index comes out Tuesday, Nov. 17. The Associated Press purchased a copy Thursday. “Going Rogue,” with a first printing of 1.5 million copies, has been at or near the top of Amazon.com and other best-seller lists for weeks, ever since publisher HarperCollins announced that the book had been completed quickly and the release date was being moved up from next spring. The book follows Palin from childhood to her departure last summer as Alaska governor. It includes much of what her admirers, and detractors, expected: tributes to family and faith and patriotism, and attacks against the media and other perceived opponents. She writes about the “jaded aura” of professional campaign aides and how McCain’s entourage limited her access to the media, leading to allegations — unfounded, she says — that she was avoiding reporters. And she says that most of her legal bills were generated defending what she called frivolous ethics complaints, but she reveals that about one-tenth of the $500,000 was a bill she received to pay for the McCain campaign vetting her for the VP nod. She said when she asked the McCain campaign if it would help her financially, she was told McCain’s camp would have paid all the bills if he’d won; since he lost, the vetting legal bills were her responsibility. Written with Lynn Vincent, “Going Rogue” is folksy in tone and homespun. For example, Palin says her efforts to award a license for a massive natural gas transmission line through Alaska was turning a pipe dream into a pipeline. She writes in awe about how the McCain campaign had hired a New York stylist who had also worked on Couric. Taken aback by all the fussing, she wondered who was paying for the $150,000 worth of fancy clothes given to her and her family members by the campaign. Family members were told it was being taken care of or was “part of the convention.” The designer clothing, hairstyling and accessories later grew into a controversy. Palin shares behind-the-scene moments when the nation learned her teen daughter Bristol was pregnant, how she rewrote the statement prepared for her by the McCain campaign — only to watch in horror as a TV news anchor read the original McCain camp statement, which, in Palin’s view, glarmorized and endorsed her daughter’s situation. Palin laments that she wasn’t allowed to bring up loads of family members to the stage while McCain gave his election night concession speech, the vice presidential candidate having found out minutes earlier that she wouldn’t be permitted to give her own speech. She writes that ABC newsman Charles Gibson, who had an early interview with her, seemed bored by “substantive issues” stemming from her time as governor and that while speaking with her he “peered skeptically” at her over his glasses like a disapproving principal. She writes at length about Couric. She says that the idea to meet with Couric came from McCain campaign aide Nicolle Wallace, who told Palin that Couric — also a working mother — liked and admired her. It would be a favor to Couric, too, whom Palin notes had the lowest ratings of the network anchors. Wallace said Couric suffered from low self-esteem. And Palin replied that she almost began to “feel sorry” for Couric. She alleges that Couric and CBS left out her more “substantive” remarks and settled for “gotcha” moments. She writes that Couric had a “partisan agenda” and a condescending manner. Couric was “badgering,” biased and far easier on Couric’s Democratic counterpart, Joe Biden. She writes warmly of her childhood and her mother’s “nurturing, hospitable” personality. Her priorities were set early — faith (she would read Scripture each night before bed), hunting, current events and sports (she even dreamed of being a broadcaster alongside Howard Cosell). She remembers being a voracious reader, favorites including John Steinbeck’s “The Pearl” and George Orwell’s “Animal Farm.” Long before Tina Fey parodied her on “Saturday Night Live,” Palin enjoyed watching the show as a girl. She met her future husband, Todd Palin, in 1982. He was good-looking and mature, like no one she had ever known. He was quiet, gruff, strong, spiritual. Follow this link: Palin in book: McCain aides kept me ‘bottled up’ (AP)

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Sensitive gov’t docs leaked over peer-to-peer Published: 2009-10-30 The Congressional Committee on Standards of Official Conduct confirmed on Thursday that sensitive files from the group’s deliberations had been leaked to the public via a peer-to-peer file sharing network. Some 30 members of the House of Representatives and staff members are currently being investigated by the bi-partisan group of representatives, according to a confidential report prepared by the committee in July and leaked inadvertently by a staff member. The 22-page report summarizes the investigations of the ethics committee, according to an article in the Washington Post . “Our initial review suggests that this unlawful access to confidential information involved the use of peer-to-peer file sharing software on the personal computer of a junior staffer, who is no longer employed by the Committee, while working from home,” the committee said in a statement issued on Thursday. “The potential exposure is limited to several specific documents.” The security slip is the latest by members of Congress. Despite holding multiple hearings on the failings of federal agencies to secure their systems, multiple members of Congress have had their own systems compromised and data stolen . In 2006, a staff member of a Republican lawmaker attempted to hire hackers to change a college grade, but fell prey to practical jokers at Attrition.org. In another incident in 2004, two Republican staffers accessed thousands of confidential Democratic memos and leaked them to colleagues. In the latest incident, the committee warned colleagues to take care with confidential documents. “Although peer-to-peer technology may offer benefits to the users of such networks — whether consumers, businesses or government — they should also be aware of (the) risks that may be associates with their use,” the committee said in its statement. If you have tips or insights on this topic, please contact SecurityFocus . Posted by: Robert Lemos Visit link: Brief: Sensitive gov’t docs leaked over peer-to-peer

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