Senate GOP proposes much smaller Sandy aid package

WASHINGTONSenate Republicans on Wednesday proposed a $24 billion emergency aid package for Superstorm Sandy victims, less than half of what Democrats hope to pass by Christmas.

The GOP alternative bill would provide more than enough money to pay for immediate recovery efforts through the spring.

Republicans complain that the $60.4 billion Democratic bill being debated in the Senate is larded with money for projects unrelated to damage from the late October storm, which battered the Atlantic coastline from North Carolina to Maine.

The Republican version does not include $13 billion Democrats want for projects to protect against future storms, including fortification of mass transit systems in the Northeast and protecting vulnerable seaside areas by building jetties against storm surges.

49 Photos

Sandy's devastation on Staten Island

Republicans said however worthy such projects may be, they are not urgently needed and should be considered by Congress in the usual appropriations process next year, not through emergency spending.

"We want to take care of urgent needs now," said Indiana Sen. Dan Coats, ranking Republican on the Senate Appropriations homeland security subcommittee, who put forward the bill. "We can look at other needs down the road when we have more time to look at them."

The GOP bill also scraps spending from the Democratic bill that is not directly related to Sandy damages, such as the $150 million for the National Oceanic and Atmospheric Administration for declared fisheries disasters in 2012 that could go to New England states, Alaska, New York and Mississippi.

The aid will help states rebuild public infrastructure like roads and tunnels and help thousands of people displaced from their homes. Sandy was the most costly natural disaster since Hurricane Katrina in 2005 and one of the worst storms ever in the Northeast.

More than $2 billion in federal funds has been spent on relief efforts so far for 11 states and the District of Columbia. The Federal Emergency Management Agency's disaster relief fund still has about $4.8 billion, and officials have said that is enough to pay for recovery efforts into early spring.

Earlier this month, Govs. Chris Christie, R-N.J., Andrew Cuomo, D-N.Y., and Dannel Malloy, D-Conn., argued in an op-ed that "in times of crisis no region, state or single American should have to stand alone or be left to fend for themselves," pointing to the "hundreds of thousands of homes and businesses damaged or destroyed, thousands still left homeless or displaced, tens of billions of dollars in economic loss" as evidence that "It's time for Congress to stand with us."

The governors, while recognizing that "our nation faces significant fiscal challenges," strive to separate the disaster-relief needs of their region from the ongoing "fiscal cliff" negotiations consuming Capitol Hill, arguing that Congress must "not allow this much-needed aid to fall in to the ideological divide."

Read More..

Obama Invokes Newtown on 'Cliff' Deal

Invoking the somber aftermath of the school massacre in Newtown, Conn., President Obama today appealed to congressional Republicans to embrace a standing "fair deal" on taxes and spending that would avert the fiscal cliff in 13 days.

"If there's one thing we should have after this week, it should be a sense of perspective about what's important," Obama said at a midday news conference.

"I would like to think that members of that [Republican] caucus would say to themselves, 'You know what? We disagree with the president on a whole bunch of things,'" he said. "'But right now what the country needs is for us to compromise.'"

House Speaker John Boehner's response: "Get serious."

Boehner announced at a 52-second news conference that the House will vote Thursday to approve a "plan B" to a broad White House deal -- and authorize simply extending current tax rates for people earning less than $1 million a year and little more.

"Then, the president will have a decision to make," the Ohio Republican said. "He can call on Senate Democrats to pass that bill or he could be responsible for the largest tax increase in American history."

Fiscal Cliff Negotiations: Trying to Make a Deal Watch Video

House Speaker John Boehner Proposes 'Plan B' on Taxes Watch Video

'Fiscal Cliff' Negotiations: Deal Might Be Within Reach Watch Video

Unless Congress acts by Dec. 31, every American will face higher income tax rates and government programs will get hit with deep automatic cuts starting in 2013.

Obama and Boehner have been inching closer to a deal on tax hikes and spending cuts to help reduce the deficit. But they have not yet had a breakthrough on a deal.

Obama's latest plan would raise $1.2 trillion in new tax revenue over 10 years, largely through higher tax rates on incomes above $400,000. He also proposes roughly $930 billion in spending cuts, including new limits on entitlement spending, such as slower annual cost-of-living increases for Social Security beneficiaries.

Boehner has agreed to $1 trillion in new tax revenue, with a tax rate hike for households earning over $1 million. He is seeking more than $1 trillion in spending cuts, with significant changes to Medicare and Social Security.

The president said today that he remains "optimistic" about reaching a broad compromise by Christmas because both sides are "pretty close," a sentiment that has been publicly shared by Boehner.

But the speaker's backup plan has, at least temporarily, stymied talks, with no reported contact between the sides since Monday.

"The speaker should return to the negotiating table with the president because if he does I firmly believe we can have an agreement before Christmas," said Sen. Chuck Schumer, D-N.Y., a White House ally.

Schumer said Obama and Boehner are "not that far apart" in the negotiations.

"If they were to come to an agreement by Friday, they could write this stuff over the Christmas break and then we'd have to come back before the New Year and pass it," Schumer said.

Obama said he is "open to conversations" and planned to reach out to congressional leaders over the next few days to try to nudge Republicans to accept a "fair deal."

"At some point, there's got to be, I think, a recognition on the part of my Republican friends that -- you know, take the deal," he told reporters.

"They keep on finding ways to say no, as opposed to finding ways to say yes," Obama added. "At some point, you know, they've got take me out of it and think about their voters and think about what's best for the country."

Read More..

Fail-safe software could stop flash crashes

HIGH-FREQUENCY trading algorithms are seriously profitable. But they are also a serious problem, leading to mysterious "flash crashes" on the world's financial markets. So would emergency fail-safes of the kind used to prevent medical robots and nuclear reactors going haywire be any help?

Philip Bond, a computer scientist at the University of Bristol, UK, thinks so. At present, suspicious trading at an exchange can be stopped by a catch-all "market halt", but that's often too late: what is needed is a reliable way of sensing when wild stock-price variations suggest a build-up to a crash. At that point a smart circuit breaker could step in, Bond told a London meeting of the Centre for the Study of Financial Innovation on 11 December.

The idea is to avoid another debacle like the flash crash of 6 May 2010, when $10 trillion was briefly knocked off the Dow Jones Industrial Average after a trading firm's high-frequency algorithm went awry. Prices mostly recovered in a matter of minutes, but the turbulence caused slumps in stock prices around the globe.

High-speed traders have a distinct advantage over traditional investors, according to research by Andrei Kirilenko, chief economist at the US Commodity Trading Futures Commission, and his colleagues. Kirilenko presented the findings on 30 November at the National Bureau of Economic Research's Market Microstructure Meeting. This skewed playing field might increase market instability even more.

Because high-frequency trading algorithms (HFTs) can work at blistering speeds - a trade every 60 microseconds is common - a lot can happen before humans have a chance to intervene. This has left governments scrambling to come up with ways to regulate the practice. The European Parliament is considering legislation that could force traders to increase trading intervals to a "safer" half a second.

But Bond and his colleagues, who examined the risks of high-speed trading for the UK government, say that enforcing a delay is wrong-headed. Making algorithms wait half a second would stop them from reacting to breaking financial news and render them useless.

Instead, they propose using circuit-breaker algorithms that will trip when trading becomes erratic. Such software monitors systems like medical robots and nuclear reactors for potentially dangerous behaviour. "HFT circuit breakers need to be considered as very high reliability software engineered to work under stressed conditions and with multiple backups," he says.

A decision is needed fast. The proportion of high frequency trades has declined in the US in recent years as they have lost some of their initial edge, but they still account for a majority of trades. And the hardware needed to get in the game is becoming more accessible - a server running a high-speed system costs only $270,000, and prices will keep falling.

Any technical backstops will have to distinguish between algorithms gone haywire and simple bad decision-making, warns Fod Barnes, an economist with UK consultants Oxera. "The HFT system is a bit more complex than just engineering," he says. "Why should those who manage to write an algorithm that makes a series of very bad trades be protected from their own folly?"

If you would like to reuse any content from New Scientist, either in print or online, please contact the syndication department first for permission. New Scientist does not own rights to photos, but there are a variety of licensing options available for use of articles and graphics we own the copyright to.

All comments should respect the New Scientist House Rules. If you think a particular comment breaks these rules then please use the "Report" link in that comment to report it to us.

If you are having a technical problem posting a comment, please contact technical support.

Read More..

50 community countdown parties to welcome 2013

SINGAPORE: Grassroots organisations under the People's Association umbrella are organising about 50 community countdown parties islandwide to usher in the new year.

80,000 residents are expected to join in the revelry, which will also feature more budding local performers. Some of the highlights include a cosplay event, stargazing, and fireworks.

For example, for the countdown at Boon Lay, local bands will perform for the residents, while at the cosplay event at the Sengkang West countdown party, organisers will try to set the first record for largest cosplay gathering in the Singapore Book of Records.

At Nee Soon GRC's countdown party, the fireworks display will be upped to five minutes - from three minutes in previous years.

People's Association's chief executive director Mr Yam Ah Mee said that in the last few years, he has noticed more youth community leaders getting involved in the planning and organising of these countdown parties.

"These youths have brought together new insights to how they would like to organise the countdown, to provide platforms for fellow other youths and fellow other residents to come - not just to watch the countdown, but to participate in the countdown. And the youths have also planned to involve more of the residents' talents so residents can showcase, using the platform of the countdown, to showcase their talents to fellow other residents," he said.

- CNA/ck

Read More..

Strauss-Kahn pimp charges weighed

By Laura Smith-Spark, CNN

updated 3:46 AM EST, Wed December 19, 2012

STORY HIGHLIGHTS

• Strauss-Kahn does not deny he attended sex parties


• But, his lawyers say, he didn't know the girls were paid for sex


• Earlier this month, he settled a civil suit with a New York hotel maid


• He also deflected two other scandals

(CNN) -- In one case after another, Dominique Strauss-Kahn has managed to put behind him the allegations of sexual misconduct that sidelined his prospects of becoming France's next president.

On Wednesday, the former chief of the International Monetary Fund -- and one time French finance minister -- will find out if he has managed a clean sweep.

A French appeals court will decide whether prosecutors should drop charges against Strauss-Kahn for his alleged participation in a prostitution ring, in what is known in France as the "Carlton affair."

Strauss-Kahn does not deny that he attended sex parties at Hotel Carlton in the northern city of Lille. But, his lawyers claim, he did not know that the young women at the parties were being paid for sex.

So, to charge Strauss-Kahn with aggravated pimping, is "unhealthy, sensationalist and not without a political agenda," his lawyers said.

Strauss-Khan, a 63-year-old economist, was widely expected to become the Socialist presidential candidate -- until his professional career imploded with an arrest in New York in May 2011.

A New York hotel housekeeper, Nafissatou Diallo, told police that a naked Strauss-Kahn emerged from a room of his spacious luxury hotel suite and tried to force himself on her, at one point dragging her into the bathroom and trying to remove her underwear.

Strauss-Kahn alleged the encounter was consensual, but stepped down from his $500,000 job at the IMF.

A grand jury indicted him on seven counts, including sexual abuse and attempted rape, but prosecutors later dropped the charges after concluding Diallo had lied about some details of the alleged attack -- despite forensic evidence that showed a sexual encounter had occurred.

Diallo then filed a civil suit against Strauss-Kahn. The two sides reached a settlement last week, the details of which have not been disclosed.

Earlier in October, a French prosecutor dropped an investigation connecting Strauss-Kahn to a possible gang rape in Washington.

The young Belgian woman whose testimony was the basis for the inquiry withdrew her previous statement and said she would not press charges -- leaving the investigation with no grounds to continue, officials said.

Strauss-Kahn also faced allegations of attempted rape from a young French writer.

Tristane Banon filed a complaint, alleging a 2003 attack. But prosecutors said the case could not be pursued because of a statute of limitations.

Strauss-Kahn denied the allegations and has since filed a countersuit in France, alleging slander.

Read More..

UBS to pay $1.5B in fines for rate manipulation

Updated 3:30 a.m. EST

GENEVA Swiss banking giant UBS AG said Wednesday it has admitted to fraud and agreed to pay some $1.5 billion to U.S., British and Swiss authorities in a probe into the rigging of global benchmark interest rates.

The settlement caps a tough year for Switzerland's biggest bank, which is one of several leading banks that has been under investigation over allegations of manipulating the benchmark LIBOR interest rate, short for London interbank offered rate. It is used to set the interest rates on trillions of dollars in contracts around the world, including mortgages and credit cards.

The rate is a self-policing system and relies on information global banks submit to a British banking authority. American and British regulators have already fined Britain's Barclays $453 million for submitting false information between 2005 and 2009 to keep the interest rate low.

UBS said some of its employees tried to rig the LIBOR rate in several currencies, but that its Japan unit, where much of the manipulation took place, entered a plea to one count of wire fraud in a proposed agreement with the U.S. Justice Department.

The statement from the UBS board of directors said some of its personnel had "engaged in efforts to manipulate submissions for certain benchmark rates to benefit trading positions."

The bank also said some of its employees had "colluded with employees at other banks and cash brokers to influence certain benchmark rates to benefit their trading positions" or had given "inappropriate directions to UBS submitters that were in part motivated by a desire to avoid unfair and negative market and media perceptions during the financial crisis."

Sergio Ermotti, who was appointed CEO of UBS AG in November 2012 in the wake of a major trading scandal, said in the statement that the misconduct does not reflect the bank's values or standards.

"We deeply regret this inappropriate and unethical behavior. No amount of profit is more important than the reputation of the firm, and we are committed to doing business with integrity," he said.

With more than $2.4 trillion in invested assets, Zurich-based UBS is one of the world's largest managers of private wealth assets. At last count, the bank had 63,745 employees in 57 countries. It has said it aims for a headcount of 54,000 in 2015.

Along with Credit Suisse, the second-largest Swiss bank, UBS is on the list of the 29 "global systemically important banks" that the Basel, Switzerland-based Bank for International Settlements, the central bank for central banks, considers too big to fail.

In 2008, UBS was forced to seek a bailout from the Swiss government when it was hard hit by the financial crisis and its fixed-income unit had more than $50 billion in losses. U.S. authorities fined UBS $780 million in 2009 for helping U.S. citizens avoid paying taxes. The U.S. government has since been pushing Switzerland to loosen its rules on banking secrecy and has been trying to shed its image as a tax haven, signing deals with the United States, Germany and Britain to provide greater assistance to foreign tax authorities seeking information on their citizens' accounts.

In April, Ermotti called Switzerland's tax disputes with the United States and some European nations "an economic war" putting thousands of jobs at risk.

In September 2011, the bank announced more than $2 billion in losses and blamed a 32-year-old rogue trader, Kweku Adoboli, at its London office for Britain's biggest-ever fraud at a bank.

Britain's financial regulator fined UBS, saying its internal controls were inadequate to prevent Adoboli, a relatively inexperienced trader, from making vast and risky bets. Adoboli has been sentenced to seven years in prison.

Read More..

Newtown Settles In for Prayerful, Somber Christmas

Residents of Sandy Hook, Conn., gather every year under an enormous tree in the middle of town to sing carols and light the tree. The tree is lit this year, too, but the scene beneath it is starkly different.

The tree looms over hundreds of teddy bears and toys, but they are for children who will never receive them. The ornaments are adorned with names and jarringly recent birth dates.

Wreaths with pine cones and white ribbons hang near the tree, one each for a life lost. A small statue of an angel child sleeps among a sea of candles.

A steady flow of well-wishers, young and old, tearfully comes to cry, pray, light candles, leave gifts and share hugs and stories.

CLICK HERE for complete coverage of the massacre at Sandy Hook.

The Christmas season is a normally joyful time for this tight-knit village, but in the wake of a shooting rampage, holiday decorations have given way this year to memorial signs. And instead of cars with Christmas trees on top, there are media vans with satellites.

Connie Koch has lived in Newtown for nine years. She lives directly behind Sandy Hook Elementary School, where Adam Lanza, 20, killed 20 children and six adults before turning the gun on himself. Earlier that Friday morning, he had also killed his mother at home.

President Obama on Newtown Shooting: 'We Must Change' Watch Video

Koch said the shocked town, which includes the Village of Sandy Hook, is experiencing a notably different Christmas this year.

"It's more somber, much more time spent in prayer for our victims' families and our friends that have lost loved ones," she said as she stood near the base of the tree.

CLICK HERE for a tribute to the shooting victims.

Her family has been touched by the tragedy is multiple ways.

"My daughter, she lost her child that she babysat for for six years," she said, holding back tears. "And for her friend who lost her mother. And for my dear friend who lost one of her friends in the school, one of the aides.

"It's hard. And there will be much prayer on Christmas morning for these people, for our community."

Koch said her community always rallies in the face of tragedy, but the term "hits close to home" resonates this time more than ever before. She says the only way to make it through is one day at a time.

"It's all you can do, one hour at a time," Koch said. "For me, I don't even want to wake up in the morning because I don't want to have to face it again. You feel like it's still just a dream and with the funerals starting, it's becoming more real. It's becoming more final."

Another Newtown parent, Adam Zuckerman, stood by the makeshift memorial with a roll of red heart stickers with the words, "In Our" above a drawing of the Sandy Hook Elementary School welcome sign. He was selling the stickers to collect money for a Sandy Hook victims' fund.

"It's a lot," he said of the events of the past few days. "We don't know how it's going to affect our community, but I feel very strongly that I needed to do something to keep it positive, to keep this community positive."

Zuckerman's 20-year-old stepdaughter came home from college for winter break the night before the shooting. As a high school student, she worked in one of the town's popular toy stores.

"She knew a lot of the kids," he said of his daughter. "Their parents brought them in over the years. We have other friends who have lost family here and good friends who are dear friends with the principal of the school. … It's pretty rough."

Read More..

Twin attack could deliver universal flu vaccine

A UNIVERSAL vaccine. It is the stuff of dreams for flu scientists, but it could be within reach if a new type of vaccine that elicits an immune response from white blood cells is combined with traditional vaccines.

Every year, between 250,000 and 500,000 people of all ages die worldwide after getting seasonal flu, partly because few people are vaccinated for it. When a novel human flu evolves in pigs or poultry and becomes pandemic, the numbers can be even higher. The solution is better vaccines for people and animals.

Flu comes back every year because when you catch it or are vaccinated, your immune system is only trained to identify the flu's large surface proteins. These proteins change from year to year, allowing flu to strike again if you haven't had an updated vaccine.

To end the need for continually updated shots, researchers have tried to create a vaccine for all flu, with varied success.

Most attempts have been vaccines designed to make us produce antibodies, aimed not at flu's surface proteins, but at internal proteins that are the same in all flu viruses. Success has been mixed. But there is another arm to the immune system. White blood cells called T-cells tend to attack a wider range of invaders than antibodies. If a vaccine sensitises them to internal flu proteins, they could potentially kill all types of flu.

Earlier this year, Sarah Gilbert and colleagues at the University of Oxford equipped the virus used in the smallpox vaccine, which stimulates this cell-mediated immunity, with two proteins common to all flu viruses. They reported that this vaccine prevented symptoms in some people experimentally infected with flu, and those that did get sick had milder symptoms.

Now Colin Butter and colleagues at the Institute for Animal Health in Compton, UK, have tested that vaccine, and a similar one made of a different live virus, in chickens (Vaccine, doi.org/jz6). Just as in people, it did not prevent infection, but the birds' T-cells responded strongly, and less of the virus was passed on.

Neither result sounds very impressive. But, says Butter, the key will be combining these vaccines with the classic kind that elicits antibodies. Gilbert reports that her team has tested such a combination in people, and has seen cell-mediated immunity to the universal proteins, as well as antibodies to specific surface proteins.

Such a combination could be more than the sum of its parts. In chickens, for example, antibodies could knock out the main virus, while T-cells mop up the variants that evade the antibodies and allow the virus to keep spreading - and evolving. "We could finally get vaccines that stop viral spread completely," says Butter.

The "universal" proteins would also give chickens and humans some protection against novel flu viruses. And because they work against all flu, such vaccines can be stockpiled to prepare for pandemics. "I'd love to have a stockpile of vaccine with both antibody and cell-mediated capabilities," says Thomas Reichert of the Entropy Research Institute in Lincoln, Massachusetts. This gives us a chance to beat an adversary we've been defeated by time and again. Or as Reichert puts it: "Now that might bring flu to the negotiating table."

If you would like to reuse any content from New Scientist, either in print or online, please contact the syndication department first for permission. New Scientist does not own rights to photos, but there are a variety of licensing options available for use of articles and graphics we own the copyright to.

All comments should respect the New Scientist House Rules. If you think a particular comment breaks these rules then please use the "Report" link in that comment to report it to us.

If you are having a technical problem posting a comment, please contact technical support.

Read More..

Report details extensive Walmart bribery in Mexico

NEW YORK: Retail giant Walmart aggressively bribed Mexican officials to get the necessary permits to open more than a dozen supermarkets across the country, the New York Times reported on Tuesday.

The newspaper said its own investigation had identified 19 store sites that were the target of bribery, and detailed one case in which more than $200,000 in bribes was paid to build a supermarket near famed Aztec ruins.

"The Times' examination reveals that Wal-Mart de Mexico was not the reluctant victim of a corrupt culture that insisted on bribes as the cost of doing business. Nor did it pay bribes merely to speed up routine approvals.

"Rather, Wal-Mart de Mexico was an aggressive and creative corrupter, offering large payoffs to get what the law otherwise prohibited," it said.

Wal-Mart "used bribes to subvert democratic governance -- public votes, open debates, transparent procedures. It used bribes to circumvent regulatory safeguards that protect Mexican citizens from unsafe construction. It used bribes to outflank rivals."

The Times said Walmart officials themselves did not pay bribes, but arranged for outside lawyers and other middlemen to deliver envelopes of cash that could not be traced back to the company.

The Times said Walmart managed to build a Sam's Club in one of Mexico City's most densely populated neighbourhoods without a construction, environmental or even traffic permit after paying bribes totalling $341,000.

It paid $765,000 in bribes to build a large refrigerated distribution centre in an environmentally fragile flood basin north of the city, the Times said.

And in the case it detailed, Walmart paid more than $200,000 in bribes to build a supermarket in the ancient city of Teotihuacan, near the town's famed step pyramids.

The Times said it used a $52,000 bribe to alter a zoning map that had been approved by the town's elected leaders, and bribed other officials to help it circumvent laws on protecting antiquities, sparking protests in 2004.

Walmart said in response to the story that it had launched an investigation a year ago into potential violations of the US Foreign Corrupt Practices Act -- which prohibits bribery -- but had not yet reached any final conclusions.

"We are committed to having a strong and effective global anti-corruption programme everywhere we operate and taking appropriate action for any instance of non-compliance," spokesman David Tovar said in the statement.

Walmart is the largest private employer in Mexico, with 221,000 people working in 2,275 stores across the country, according to the Times.

- AFP/al

Read More..

Watch Dallas Mavericks try to sing

on your computer or on the CNN Apps for iPhone® and iPad®.

iPhone, iPad and Mac are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc.

If you get CNN and HLN at home, you can watch them online and on the go for no additional chargeStart watching

Read More..