Senate Approves 'Fiscal Cliff' Deal, Sends to House

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Syrian government forces go on attack on first day of year

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Reuters could not independently verify the reports and the footage.

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

BOMBARDMENT

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

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

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

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

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

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

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

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

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

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

The midnight gunfire caused alarm.

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

(Editing by Peter Graff and Angus MacSwan)

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Football: Brazil starlet Lucas relishing PSG challenge

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

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

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

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

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

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

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

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

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

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

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

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

- AFP/fa

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

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

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

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

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

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

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

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

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

(Inputs from PTI)

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FDA approves 1st new tuberculosis drug in 40 years

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

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

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

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

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

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Time's Up: Sides Closing In on 'Fiscal Cliff' Deal

Congressional and White House negotiators are closing in on a deal to avert across-the-board tax hikes and spending cuts that take effect at midnight, as the nation teeters on the edge of the so-called fiscal cliff.

An emerging tentative agreement would extend current tax rates for households making $450,000 or less; extend the estate tax at its current level of 35 percent for estates larger than $5 million; and prevent the Alternative Minimum Tax from hammering millions of middle-class workers, sources said.

The deal would also extend unemployment benefits set to expire Tuesday and avert a steep cut to Medicare payments for doctors.

Both sides also seem willing to delay by three months automatic spending cuts to defense and domestic programs, the sources said, setting the stage for continued fiscal debate in the next few months tied to the debt ceiling.

Vice President Joe Biden and Senate Minority Leader Mitch McConnell, R-Ky., are leading the negotiations, sources said, holding several "good" conversations late into Sunday night and continuing a dialogue early this morning.

They are trying to broker an elusive compromise on taxes and spending that can win the support of bipartisan majorities in the Senate and House.

Even if a deal is reached between Biden and McConnell, members in both chambers would still need to review it and vote on it later today.

Failure of Congress to act on a tax measure by Tuesday morning would trigger income tax hikes on all Americans. The average family would pay an extra $3,446 in 2013 under the higher rates, according to the Tax Policy Center.

Regardless of the "cliff," virtually all workers are due to see less in their paychecks starting in January when the temporary 2 percent payroll tax cut will expire.

More than $1 trillion in automatic spending cuts to defense and domestic programs will also begin to take effect later this week unless Congress delays or replaces them.

"It is absolutely inexcusable that all of us find ourselves in this place at this time," Sen. Joe Manchin, D-W.Va., said Sunday night on the Senate floor.

"Something has gone terribly wrong when the biggest threat to our American economy is our American Congress," he said, echoing a frustration shared by many Americans.

Republican and Democratic Senate leaders wrangled all weekend over the outlines of a deal, but those talks eventually hit a brick wall on GOP insistence that Social Security savings be included in a deal.

"I want everyone to know I'm willing to get this done, but I need a dance partner," McConnell said Sunday, noting that he had directly reached out to Biden to break the impasse.

As part of any deficit reduction deal, the White House wants to raise income tax rates on people making more than $250,000 a year, a threshold on which President Obama campaigned for re-election.

Republicans, caving on outright opposition to any tax increases, want a higher income threshold for the tax hike of around $450,000, sources said. They also want to prevent the estate tax from rising above its current 35 percent rate on estates of $5.1 million or more.

"There is still significant distance between the two sides, but negotiations continue," Senate Majority Leader Harry Reid of Nevada said Sunday evening. "There is still time to reach an agreement, and we intend to continue negotiations."

Both sides say the cost of failure is high.

"If we are not able to reach an agreement, it will be dire," Sen. Jon Kyl, R-Ariz., said Sunday on ABC's "This Week." "Probably at least another million jobs lost, an unemployment rate over 9 percent, and putting us back into recession."

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Senate report faults State Department, intelligence on Benghazi

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

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

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

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

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

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

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

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

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

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

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

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

(Editing by Warren Strobel and David Brunnstrom)

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HTC hopes to get ahead of competition in 2013

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

- CNA/xq

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Delhi gang rape: New Year party plans dropped, toned down

CHANDIGARH/NEW DELHI: Some hotels, clubs and business houses dropped or toned down New Year's Eve party plans, as the death of the Delhi gang-rape victim cast a shadow on revelry.

The Press Club of India (PCI) cancelled its New Year's Eve celebrations in New Delhi while a Congress MLC in Maharashtra Charan Singh Sapra appealed to people to stay away from merrymaking.

Following nation-wide grief and anger over the death of the 23-year-old girl, the Punjab and Haryana governments have also cancelled their planned programmes to usher in the New Year, officials said in Chandigarh.

While Haryana government cancelled its lunch tomorrow, several hotels and clubs in the region, including Press Club of Chandigarh, too decided not to host any party.

Several business houses in Chandigarh have also decided to cancel or tone down events, the officials said.

"We are not going to celebrate New Year's Eve in the club as a mark of respect to the brave girl who died after battling for life for 13 days," Anil Anand, secretary general PCI, said in New Delhi, condoling the death of the physiotherapy student.

The club will remain open but there will be no celebrations, he said.

In Mumbai, Sapra said people should offer prayers in memory of the gang-raped girl who died yesterday after battling for life for nearly two weeks.

"This (New Year's Eve) may be marked as a mourning period and a tribute to the brave-heart," Sapra said in a statement issued in Mumbai.

He said New Year may be ushered by organising prayer meetings in various religious places so that the victim's soul rests in peace.

Following the death of the Delhi gang-rape victim, bookings in five-star hotels in Delhi and Mumbai are reportedly down by at least 15-20 per cent because the sentiment has been impacted by the horrific incident.

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Kenya hospital imprisons new mothers with no money

NAIROBI, Kenya (AP) — The director of the Pumwani Maternity Hospital, located in a hardscrabble neighborhood of downtown Nairobi, freely acknowledges what he's accused of: detaining mothers who can't pay their bills. Lazarus Omondi says it's the only way he can keep his medical center running.

Two mothers who live in a mud-wall and tin-roof slum a short walk from the maternity hospital, which is affiliated with the Nairobi City Council, told The Associated Press that Pumwani wouldn't let them leave after delivering their babies. The bills the mothers couldn't afford were $60 and $160. Guards would beat mothers with sticks who tried to leave without paying, one of the women said.

Now, a New York-based group has filed a lawsuit on the women's behalf in hopes of forcing Pumwani to stop the practice, a practice Omondi is candid about.

"We hold you and squeeze you until we get what we can get. We must be self-sufficient," Omondi said in an interview in his hospital office. "The hospital must get money to pay electricity, to pay water. We must pay our doctors and our workers."

"They stay there until they pay. They must pay," he said of the 350 mothers who give birth each week on average. "If you don't pay the hospital will collapse."

The Center for Reproductive Rights, which filed the suit this month in the High Court of Kenya, says detaining women for not paying is illegal. Pumwani is associated with the Nairobi City Council, one reason it might be able to get away with such practices, and the patients are among Nairobi's poorest with hardly anyone to stand up for them.

Maimouna Awuor was an impoverished mother of four when she was to give birth to her fifth in October 2010. Like many who live in Nairobi's slums, Awuor performs odd jobs in the hopes of earning enough money to feed her kids that day. Awuor, who is named in the lawsuit, says she had saved $12 and hoped to go to a lower-cost clinic but was turned away and sent to Pumwani. After giving birth, she couldn't pay the $60 bill, and was held with what she believes was about 60 other women and their infants.

"We were sleeping three to a bed, sometimes four," she said. "They abuse you, they call you names," she said of the hospital staff.

She said saw some women tried to flee but they were beaten by the guards and turned back. While her husband worked at a faraway refugee camp, Awuor's 9-year-old daughter took care of her siblings. A friend helped feed them, she said, while the children stayed in the family's 50-square-foot shack, where rent is $18 a month. She says she was released after 20 days after Nairobi's mayor paid her bill. Politicians in Kenya in general are expected to give out money and get a budget to do so.

A second mother named in the lawsuit, Margaret Anyoso, says she was locked up in Pumwani for six days in 2010 because she could not pay her $160 bill. Her pregnancy was complicated by a punctured bladder and heavy bleeding.

"I did not see my child until the sixth day after the surgery. The hospital staff were keeping her away from me and it was only when I caused a scene that they brought her to me," said Anyoso, a vegetable seller and a single mother with five children who makes $5 on a good day.

Anyoso said she didn't have clothes for her child so she wrapped her in a blood-stained blouse. She was released after relatives paid the bill.

One woman says she was detained for nine months and was released only after going on a hunger strike. The Center for Reproductive Rights says other hospitals also detain non-paying patients.

Judy Okal, the acting Africa director for the Center for Reproductive Rights, said her group filed the lawsuit so all Kenyan women, regardless of socio-economic status, are able to receive health care without fear of imprisonment. The hospital, the attorney general, the City Council of Nairobi and two government ministries are named in the suit.

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Associated Press reporter Tom Odula contributed to this report.

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