US stocks slip after GDP report, mixed earnings

Madlen Read and Sara Lepro , The Associated Press , New York Fri, 01/30/2009 10:12 PM Business Stocks turned lower Friday as investors worried that the U.S. economy, though perhaps not as troubled as feared in late 2008, is only getting worse.The Commerce Department said gross domestic product, the widely followed measure of the economy, shrank at a 3.8 percent pace in the final three month of the year. That compared with a 0.5 percent decline in the previous quarter.Friday's reading was much better than the 5.4 percent drop economists expected.Still, the figure could be revised lower in the months ahead - and some analysts believe th economy has been contracting in early 2009 at an even faster pace. Earnings reports have been disappointing, and layoffs have been piling up."GDP is a backward-looking piece of information," said Craig Peckham, market strategist at Jefferies & Co. "It's hard to pinpoint a highly convincing case that e economic and earnings picture will improve."Exxon Mobil Corp. last year surpassed its own record for annual earnings by a U.S. company, but saw a big drop in profit during the fourth quarter. Chevron Corp.'s fourth-quarter results also suffered from the late-2008 plunge in oil prices.And consumer-products company Procter & Gamble Co. said that while fourth-quarter quarter profit jumped 53 percent after selling its Folgers coffee business, sales dipped 3 percent on weakening demand for its products - which include Tide detergent, Olay skin cream and Crest toothpaste.Declining sales are also hitting Honda Motor Co. hard - the Japanese automaker slashed its 2009 profit target by more than half as its earnings dropped 90 percent in the latest quarter.And Japanese electronics maker NEC Corp. said it will cut 20,000 jobs worldwide as it reported a $1.46 billion loss for the fourth quarter.In midmorning trading, the Dow Jones industrial average futures fell 48.91, or 0.60 percent, to 8,100.10. The Standard & Poor's 500 index fell 5.92, or 0.70 percent, to 839.22, and the Nasdaq composite index fell 7.92, or 0.53 percent, to 1,499.92.The Russell 2000 index of smaller companies fell 0.52, or 0.11 percent, to 452.72.On Thursday, the Dow Jones industrial average sank 226 points, while other indicators tumbled more than 3 percent, on news that unemployment claims reached a record high and that new home sales hit a record low. This erased all of the gains from the previous day, when stocks soared on hopes that the government will take bad debt off banks' books.Volatility has been high this week, with the market zigzagging on a mix of earnings and economic news as investors try to determine what the rest of 2009 will bring. Unrelenting concerns about the shaky banking industry have also kept investors from buying with confidence.A bit of good news came from Amazon.com Inc. late Thursday, which reported that its fourth-quarter profit rose 9 percent and easily surpassed analysts' forecasts. The online retailer also provided an optimistic forecast for 2009.Amazon shares rose $8.85, or 17.7 percent, to $58.85.Exxon rose $1.53, or 2 percent, to $78.53.Chevron rose 97 cents to $71.59.Procter & Gamble fell $1.94, or 3.3 percent, to $56.28.Bond prices rose early Friday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 2.80 percent from 2.87 percent late Thursday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.24 percent from 0.23 percent.

Bush leaves note for Obama in Oval Office

The Associated Press , Washington Tue, 01/20/2009 7:24 PM World Continuing a White House ritual, President George W. Bush left a note in the Oval Office for President-elect Barack Obama, wishing him well as he takes the reins of the executive branch. The White House on Tuesday declined to provide specific details of the message the two-term Republican left for the incoming Democrat, saying only that Bush wrote it on Monday and left it in the top drawer of his desk. "The theme is similar to what he's said since election night about the fabulous new chapter President-elect Obama is about to start, and that he wishes him the very best," White House press secretary Dana Perino said Tuesday. During his last moments in the Oval Office, former President Ronald Reagan scribbled a note for his successor on a notepad with a turkey insignia that said "Don't let the turkeys get you down." He, too, slipped the note in the presidential desk for his successor, President George H.W. Bush. Four years after that, the elder Bush left a note for President Bill Clinton. And eight years after that, Clinton wrote a note for Bush, and included a copy of the message he had received from Bush's father. Bush's final half-day as president includes a goodbye to Washington and a hello from fellow Texans. On Tuesday morning, the president and first lady Laura Bush will welcome Obama and his wife, Michelle, to the White House. The Bushes, the Obamas, Vice President-elect Joe Biden, his wife, Jill, and leaders of the Joint Congressional Committee on Inaugural Ceremonies will have coffee in the Blue Room. After the swearing-in ceremony for Obama at the Capitol, Bush will take a helicopter to Andrews Air Force Base, where he'll make private remarks inside a hangar. The Bushes then will fly to Midland, Texas, on the familiar blue-and-white presidential aircraft, although it will be called Special Air Mission 28000 instead of Air Force One because Bush will no longer be president. While the inauguration frenzy continues in Washington, thousands of well-wishers are expected to greet the Bushes at Centennial Plaza in Midland - the same place the president stopped on his way to the nation's capital for his own inauguration in 2001. While Bush was born in New Haven, Connecticut, he spent his childhood in Midland. He returned there as an adult in the 1970s and met the future first lady. After the rally, the Bushes are flying to Waco, Texas, on their way to their 1,600-acre (650-hectare) ranch in nearby Crawford.

Pope gives Obama his blessing

The Associated Press , Vatican City Tue, 01/20/2009 9:28 PM World Pope Benedict XVI is giving Barack Obama his blessing and prayers as the American becomes president. The Vatican released the text of a telegram Benedict sent Obama a few hours before the presidential swearing-in ceremony on Tuesday. In the telegram, the pope told Obama he was praying that God would grant him "unfailing wisdom and strength" in carrying out his responsibilities. Benedict also urged Obama to stick to his resolve in promoting understanding and peace among peoples. The pontiff also expressed hope Obama's leadership would help Americans use ethical principles and spiritual values in building a just society. Benedict said attention must be paid to the poor, the outcast, the hungry and "those who have no voice."

India appoints ambassador to ASEAN

Veeramalla Anjaiah, , The Jakarta Post, , Jakarta Thu, 01/08/2009 10:37 AM World
India has appointed one of its top diplomats, N. Ravi, as its ambassador to the Association of Southeast Asian Nations (ASEAN), of which it is a dialogue partner.
The Secretary-General of the 10-member regional grouping, Surin Pitsuwan, welcomed the decision and said he hoped that it will boost relations between India and the ASEAN.
"ASEAN has enjoyed a close partnership with India since 1995 when it progressed from a sectoral dialogue partner to become a full dialogue partner," Surin said in a statement sent to The Jakarta Post on Wednesday.
"I believe ... Ravi's appointment will further enhance ASEAN-India strategic partnership that has since spanned political, security, economic and social dimensions."
Ravi will not be based in Jakarta.
"He will be based in New Delhi and he will come to Jakarta from time to time to attend ASEAN meetings," the Indian Embassy's political counselor Muktesh Pardeshi told the Post on Wednesday.
Ravi is currently working as the Secretary (East) at India's Ministry of External Affairs in New Delhi.
Ravi, who joined the foreign ministry in 1973, is not new to the ASEAN region. He worked as Indian ambassador to Vietnam from 2004 to 2006 and is currently in charge of Southeast Asian affairs in New Delhi. He has also served in Belgrade, Tokyo, Thimpu, Munich and Moscow in various capacities for Indian diplomatic missions.
In late August 2008, both India and ASEAN concluded negotiations on a Trade in Goods Agreement with an aim to establish a free trade area encompassing 1.7 billion people with a combined GDP of US$2.3 trillion.
The ASEAN Secretariat said that negotiations on a Trade in Services and Investment Agreements between the two began recently.
India's trade with ASEAN countries is around $40 billion with a joint goal of increasing this to $50 billion by next year.
According to Surin, India is the seventh ASEAN Dialogue Partner to have appointed its ambassador to the regional grouping. The other six are the US, China, Japan, South Korea, Australia and New Zealand

Symbolic meeting with predecessors marks Obama day

THE PRESIDENT CLUB: President-elect Barack Obama is welcomed by President George W. Bush for a meeting at the White House in Washington on Wednesday with former presidents (from left) George H.W. Bush, Bill Clinton and Jimmy Carter. AP/J. Scott Applewhite

Steven R. Hurst , The Associated Press , Washington Thu, 01/08/2009 12:55 PM World

President-elect Barack Obama lunched at the White House on Wednesday with the current chief executive and three former presidents, a symbolic show of support that Obama said provided "advice, good counsel and fellowship."Before the meeting - the first such in the executive mansion since 1981 - Obama told Americans that reforming massive government entitlement programs would be "a central part" of his effort to control federal spending, even as he pushes Congress to appropriate hundreds of billions of dollars to jolt the crumbling economy.At the gathering less than two weeks before Obama's inauguration, the president-elected stood for photos flanked by former President George H.W. Bush on one side and his son, President George W. Bush, on the other. Presidents Bill Clinton and Jimmy Carter, both smiling broadly, stood with them."I just want t thank the president for hosting us," Obama said."All the gentlemen here understand both the pressures and possibilities of this office," said Obama, who takes office Jan. 20. "For me to have the opportunity to get advice, good counsel and fellowship with these individuals is extraordinary."Durng the brief photo opportunity, the current president wished Obama well before all five men headed to a private lunch that lasted about 90 minutes."One message that I have and I think we all share is that we want you to succeed. Whether we're Democrat or Republican we care deeply about this country," Buh said. "All of us who have served in this office understand that the office itself transcends the individual."Bush and Obama also met privately for roughly 30 minutes in the Oval Office before the lunch. Details of the one-on-one meeting, coming just 13 days before Obama's inauguration, were not revaled although they were expected to focus on grim current events - the war in the Gaza Strip and the crippled U.S. economy.And all parties were determined to keep details of what was discussed at the lunch confidential.Describing the gathering in only broad terms, Obama press secretary Robert Gibbs aid: "The president and the former presidents had helpful advice on managing the office, as well as thoughts on the critical issues facing the country right now. The president-elect is anxious to stay in touch with all of them in the coming years."While Obama pledged to take a knife to unnecessary goverment spending and to reform entitlements, he provided few details at the news conference where he named Nancy Killefer to the newly created position as chief performance officer. She is assigned the tasks of eliminating government waste and improving efficiency.The promise to cut unnecessary government spnding, coincided with a Congressional Budget Office estimate that Obama would inherit a $1.2 trillion federal deficit for fiscal 2009."We expect that discussion around entitlements will be a part, a central part of those plans," Obama said. "And I would expect that by February, in line with the announcement of at least a rough budget outline, we will have more to say about how we're going to approach entitlement spending."For the first time, Obama gave a ballpark price tag for his massive economic plan designed to put a floor under the country's deepening recession. Aides have said it could cost as much as $775 billion over two years. Outside economists have suggested as much as $1.2 trillion would be needed."We expect that it will be on the high end of our estimates but will not be as high as some economists have recommended because of the constraint and concerns we have about the existing deficit," Obama said.On Thursday, he plans to give a speech on the economy at George Mason University in Virginia where he will lay out his reasons for pressing Congress to quickly approve his still-evolving economic plan.Meanwhile, lawmakers have been distracted by an ugly bit of political theater that unfolded in Congress on Tuesday when the Senate barred Roland Burris from taking Obama's vacated Illinois Senate seat. Burris was appointed by the state's embattled governor, Rod Blagojevich, who stands accused of trying to sell the position to the highest bidder.On Wednesday, Burris met with Senate Majority Leader Harry Reid as the Senate Democrats looked for a way to defuse the standoff and set forth the legal steps under which they would welcome him into the Senate.Senate Majority Leader Harry Reid said the Senate is awaiting a court ruling in a case that tests whether the Illinois secretary of state is required to sign Burris' certification.Burris, who would be the Senate's only black member, said Wednesday he expects "very shortly" to represent the state of Illinois in the U.S. Senate.Also Wednesday, Senator Dianne Feinstein of California, the incoming chair of the Senate Intelligence Committee, said she intends to support President-elect Barack Obama's choice for CIA chief, Leon Panetta. Feinstein had earlier expressed reservations about the choice of Panetta, a former White House chief of staff without a formal background in the intelligence community. Obama had not consulted with Feinstein before making the choice, and subsequently apologized to her for the lapse.

Pope calls for cease-fire in Gaza

The Associated Press , Vatican City Thu, 01/08/2009 6:30 PM World Pope Benedict XVI has called for a cease-fire in Gaza and the resumption of peace talks. He says a cease-fire is indispensable for restoring acceptable living conditions to the population and has condemned violence in "whatever form it takes." The pontiff also says it is crucial that political leaders who can work for reconciliation emerge in upcoming elections. Israel is scheduled to hold elections Feb. 10. Benedict's new appeal came as part of a broad-ranging speech Thursday to the Holy See's diplomatic corps. He has also encouraged efforts to get Israelis and Palestinians to hold peace talks. Israel says its offensive in Gaza is aimed at stopping Hamas rocket fire. Nearly 700 Palestinians have died in the attacks.