Protesters surge around Egypt’s presidential palace

CAIRO (Reuters) – Tens of thousands of Egyptian protesters surged around the presidential palace on Friday and the opposition rejected President Mohamed Mursi‘s call for dialogue to end a crisis that has polarized the nation and sparked deadly clashes.

The Islamist leader’s deputy said he could delay a December 15 referendum on a constitution that liberals opposed, although the concession only partly meets a list of opposition demands that include scrapping a decree that expanded Mursi‘s powers.

“The people want the downfall of the regime” and “Leave, leave,” crowds chanted after bursting through barbed wire barricades and climbing on tanks guarding the palace of Egypt‘s first freely elected president.

Their slogans echoed those used in a popular revolt that toppled Mursi’s predecessor Hosni Mubarak in February 2011.

Vice President Mahmoud Mekky said in a statement sent to local media that the president was prepared to postpone the referendum if that could be done without legal challenge.

The dialogue meeting was expected to go ahead on Saturday in the absence of most opposition factions. “Tomorrow everything will be on the table,” a presidential source said of the talks.

The opposition has demanded that Mursi rescind a November 22 decree giving himself wide powers and delay the vote set for December 15 on a constitution drafted by an Islamist-led assembly which they say fails to meet the aspirations of all Egyptians.

The state news agency reported that the election committee had postponed the start of voting for Egyptians abroad until Wednesday, instead of Saturday as planned. It did not say whether this would affect the timing of voting in Egypt.

Ahmed Said, leader of the liberal Free Egyptians Party, told Reuters that delaying expatriate voting was made to seem like a concession but would not change the opposition’s stance.

He said the core opposition demand was to freeze Mursi’s decree and “to reconsider the formation and structure of the constituent assembly”, not simply to postpone the referendum.

The opposition organized marches converging on the palace which elite Republican Guard units had ringed with tanks and barbed wire on Thursday after violence between supporters and opponents of Mursi killed seven people and wounded 350.

Islamists, who had obeyed a military order for demonstrators to leave the palace environs, held funerals on Friday at Cairo’s al-Azhar mosque for six Mursi partisans who were among the dead. “With our blood and souls, we sacrifice to Islam,” they chanted.

“ARM-TWISTING”

In a speech late on Thursday, Mursi had refused to retract his November 22 decree or cancel the referendum on the constitution, but offered talks on the way forward after the referendum.

The National Salvation Front, the main opposition coalition, said it would not join the dialogue. The Front’s coordinator, Mohamed ElBaradei, a Nobel peace laureate, dismissed the offer as “arm-twisting and imposition of a fait accompli”.

Murad Ali, spokesman of the Brotherhood’s Freedom and Justice Party (FJP), said opposition reactions were sad: “What exit to this crisis do they have other than dialogue?” he asked.

Mursi’s decree giving himself extra powers sparked the worst political crisis since he took office in June and set off renewed unrest that is dimming Egypt’s hopes of stability and economic recovery after nearly two years of turmoil following the overthrow of Mubarak, a military-backed strongman.

The turmoil has exposed contrasting visions for Egypt, one held by Islamists, who were suppressed for decades by the army, and another by their rivals, who fear religious conservatives want to squeeze out other voices and restrict social freedoms.

Caught in the middle are many of Egypt’s 83 million people who are desperate for an end to political turbulence threatening their precarious livelihoods in an economy under severe strain.

“We are so tired, by God,” said Mohamed Ali, a laborer. “I did not vote for Mursi nor anyone else. I only care about bringing food to my family, but I haven’t had work for a week.”

ECONOMIC PAIN

A long political standoff will make it harder for Mursi’s government to tackle the crushing budget deficit and stave off a balance of payments crisis. Austerity measures, especially cuts in costly fuel subsidies, seem inevitable to meet the terms of a $ 4.8-billion IMF loan that Egypt hopes to clinch this month.

U.S. President Barack Obama told Mursi on Thursday of his “deep concern” about casualties in this week’s clashes and said “dialogue should occur without preconditions”.

The upheaval in the most populous Arab nation worries the United States, which has given billions of dollars in military and other aid since Egypt made peace with Israel in 1979.

The conflict between Islamists and opponents who each believe the other is twisting the democratic rules to thwart them has poisoned the political atmosphere in Egypt.

The Muslim Brotherhood’s spokesman, Mahmoud Ghozlan, told Reuters that if the opposition shunned the dialogue “it shows that their intention is to remove Mursi from the presidency and not to cancel the decree or the constitution as they claim”.

Ayman Mohamed, 29, a protester at the palace, said Mursi should scrap the draft constitution and heed popular demands.

“He is the president of the republic. He can’t just work for the Muslim Brotherhood,” Mohamed said of the eight-decade-old Islamist movement that propelled Mursi from obscurity to power.

(Additional reporting by Omar Fahmy; Writing by Edmund Blair and Alistair Lyon; Editing by Giles Elgood)

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No Grammy love for Justin Bieber, One Direction

LOS ANGELES (Reuters) – Irate fans of Justin Bieber and boy band One Direction took to social media on Thursday to voice their outrage after being snubbed by the Grammys for a chance to win the biggest honors in the music industry.

Indie-pop band fun and rapper Frank Ocean led the 2013 nominations, tying with The Black Keys, Mumford & Sons, Jay-Z and Kanye West for six nods. But The Recording Academy overlooked some of the year’s biggest and most commercially successful artists in Wednesday’s nominations.

While Bieber, 18, who won three American Music Awards in November, stayed quiet on his omission, his manager Scooter Braun took to Twitter.

“Grammy board u blew it on this one. the hardest thing to do is transition, keep the train moving. The kid delivered. Huge successful album, sold out tour, and won people over. … This time he deserved to be recognized,” Braun posted in a series of tweets.

Many of Bieber’s 31 million Twitter fans quickly followed suit, with hashtags such as #BieberForGrammys trending on the micro-blogging service.

The Canadian singer, who has never won a Grammy, in June released album “Believe,” showcasing a more grown-up image. The album, which produced top 10 hits “Boyfriend” and “As Long As You Love Me,” has sold more than 1.1 million copies.

British boy band One Direction was also left empty-handed despite their debut album “Up All Night” having topped the Billboard 200 album chart.

The quintet has performed sold-out shows across the world and won three MTV video music awards earlier this year.

The Grammy Awards are voted on by members of The Recording Academy and recognize achievement in 81 categories.

Lady Gaga, rapper Nicki Minaj and Korea’s Psy also failed to snag any nominations.

While Gaga hasn’t released new music this year, focusing on her global tour, Minaj released “Pink Friday: Roman Reloaded,” which topped the Billboard 200 chart and spawned singles such as “Starships.”

Psy may have YouTube’s most watched video ever with “Gangnam Style,” – over 897 million views – but he missed out on becoming the first Korean artist to receive a Grammy nod.

The Grammy Awards will be handed out at a live performance show and ceremony on February 10 in Los Angeles.

(Reporting By Piya Sinha-Roy; editing by Jill Serjeant and Todd Eastham)

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Actor Stephen Baldwin charged in NY tax case

WHITE PLAINS, N.Y. (AP) — Actor Stephen Baldwin was charged Thursday with failing to pay New York state taxes for three years, amassing a $ 350,000 debt.

Rockland County District Attorney Thomas Zugibe said Baldwin, of Upper Grandview, skipped his taxes in 2008, 2009 and 2010.

The youngest of the four acting Baldwin brothers pleaded not guilty at an arraignment and was freed without bail. His lawyer, Russell Yankwitt, said Baldwin should not have been charged.

“Mr. Baldwin did not commit any crimes, and he’s working with the district attorney‘s office and the New York State Tax Department to resolve any differences,” Yankwitt said.

The district attorney said Baldwin could face up to four years in prison if convicted. The actor is due back in court on Feb. 5.

Zugibe said Baldwin owes more than $ 350,000 in tax and penalties.

“We cannot afford to allow wealthy residents to break the law by cheating on their taxes,” the district attorney said. “The defendant’s repetitive failure to file returns and pay taxes over a period of several years contributes to the sweeping cutbacks and closures in local government and in our schools.”

Thomas Mattox, the state tax commissioner, said, “It is rare and unfortunate for a personal income tax case to require such strong enforcement measures.”

Baldwin, 46, starred in 1995′s “The Usual Suspects” and appeared in 1989′s “Born on the Fourth of July.” He is scheduled to appear in March on NBC’s “The Celebrity Apprentice.”

His brothers Alec, William and Daniel are also actors.

A bankruptcy filing in 2009 said Stephen Baldwin owed $ 1.2 million on two mortgages, $ 1 million in taxes and $ 70,000 on credit cards.

In October, Baldwin pleaded guilty in Manhattan to unlicensed driving and was ordered to pay a $ 75 fine. Earlier this year, he lost a $ 17 million civil case in New Orleans after claiming that actor Kevin Costner and a business partner duped him in a deal related to the cleanup of the 2010 Gulf of Mexico oil spill. The actors and others had formed a company that marketed devices that separate oil from water.

Baldwin co-hosts a radio show with conservative talk figure Kevin McCullough.

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Could Medicaid Benefits Get Pushed Off the Fiscal Cliff?

Medicaid provides benefits to more than 60 million Americans, including millions of children, who might not otherwise be able to afford medical care. This sizable government program has been sheltered from large federal cuts but is now vulnerable because of the ongoing talks in Washington to close the budget gap and avoid the fiscal cliff.Sharp cuts to Medicaid would hobble health care reform and hamper efforts to reduce overall health care spending, argues Sara Rosenbuam, a professor of health law and policy at the George Washington University School of Public Health and Health Services in Washington, DC, in an essay published online December 5 in the New England Journal of Medicine.Medicaid is relatively protected from automatic budget cuts by the Budget Control Act. The program is insulated from the across-the-board spending reduction known as sequestration which is set to take effect if Congress and the president fail to reach a compromise by the end of the year.However, there are still many ways Medicaid–and with it, some of the Affordable Care Act’s promised health care reform changes–could lose ground during the budgetary negotiations. Medicaid is a tempting target: a massive federal program that is only set to grow. Initially, the Affordable Care Act extended its coverage to some 20 million people as states expand eligibility to those who had not previously qualified but who have trouble obtaining private insurance. But in June, the U.S. Supreme Court undercut this provision, ruling that states were not required to extend additional eligibility.Rosenbaum argues that reducing coverage would mean that many millions will continue to go without medical coverage, continuing the shift of expenses on to insurers and other patients. The Congressional Budget Office has estimated that insuring people through Medicaid costs 50 percent less per person than subsidizing private insurance from a state-run health insurance exchange. “The problem is that Medicaid’s cost is driven by high enrollment, not excessive per capita spending,” Rosenbaum notes. “As a result, there’s very little money to wring out of Medicaid without shaking its structure in ways that reduce basic coverage.”Medicaid is an effective and efficient investment in health care for large numbers of people, she writes. For example, “much of the health care that Medicaid beneficiaries receive is furnished through safety-net providers such as community health centers, which are highly efficient and accustomed to operating on tight budgets.”One proposal to help trim the federal budget, as outlined by the House Budget Committee, run by Paul Ryan, would remove all of the Affordable Care Act’s Medicaid expansions in states and instead give out set grants for states to provide coverage for some qualifying residents. This option is estimated to save some $ 2 trillion in the next 10 years, but, Rosenbaum argues, it is based on “an arbitrary limit” rather than actual, changing needs. “Recent and ongoing demographic shifts…and recent tragedies, such as Hurricane Sandy, underscore the way in which uncontrollable events can cause unexpected surges in the need for government assistance,” she writes.”Such blunt force strategies would leave many poor and disabled Americans without the basic services they need to stay healthy,” Rosenbaum said in a prepared statement. Instead, she suggests redoubling efforts to increase the program’s efficiency, looking to reduce costs of caring for the most expensive patients, such as those that require long-term institutional care and use both Medicaid and Medicare.Other proposals limit states’ abilities to generate funds for Medicaid by levying taxes on hospitals or pharmacies. They also seek to reduce states’ abilities to use Medicaid funds to invest in public hospitals and other centers that care for beneficiaries. “Changing the rules would destabilize these institutions at the very time when expanded insurance coverage is creating greater demand for care,” Rosenbaum writes.But Medicaid is a plump and tempting budgetary target. And unlike Medicare, which provides coverage for seniors, Medicaid does not enjoy the same level of vocal (and financial) support. As Rosenbaum notes, often “Medicaid beneficiaries lack political clout.”

Follow Scientific American on Twitter @SciAm and @SciamBlogs.Visit ScientificAmerican.com for the latest in science, health and technology news.
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Negotiators see glimmers of progress on farm bill

WASHINGTON (Reuters) – With a week left to act, agricultural leaders in Congress are still deadlocked on two major issues for a new U.S. farm bill, cuts in crop subsidies and reductions in food stamps, said two of the four key negotiators on Thursday.

But the leaders of the House and Senate agriculture committees suggested that recent talks had yielded at least some progress.

Without reauthorization, U.S. farm policy would revert to the provisions of the Agricultural Act of 1949, the last “permanent” farm bill and one crafted for an entirely different U.S. economy.

Among other things, if lawmakers do not agree on a new bill, milk prices in U.S. grocery stores could double next month under terms of the fall-back statute which would also limit plantings while pushing up farm subsidies by billions of dollars.

A new farm bill would now likely be absorbed into an overall budget-cutting bill that could avert the looming “fiscal cliff” of tax increases and spending cuts. Farm spending cuts of $ 23 billion to $ 35 billion have been floated.

In speeches at a farm policy conference in Washington on Thursday, the leaders of the House and Senate Agriculture committees were adamant the final version of the five-year, $ 500 billion bill must include elements that are lightning rods for controversy.

Congress is scheduled to adjourn for the year on December 14, although top Republicans have said it will not adjourn until a solution to the fiscal cliff has been announced.

“I would rather have nothing” than a farm bill that does not give farmers the option of price supports, said House Agriculture chairman Frank Lucas. “You need to give our producers a choice.”

The Senate version of the farm bill, passed in June with proposed spending cuts totaling $ 23 billion, would replace traditional farm subsidies with an insurance-like program that compensates grain and oilseed growers when revenue from a crop is more than 11 percent below average.

Senate Agriculture chairwoman Debbie Stabenow said on Thursday that there were strong differences between the House and Senate versions.

“I would never accept what the House did” in slashing $ 16 billion in funding for food stamps, the steepest cuts in a generation for a program that helps millions of lower-income Americans keep food on the table.

The Senate bill would cut food stamps by $ 4 billion.

Nonetheless, Lucas and Stabenow said a compromise may be agreed upon in time to become part of a must-pass deficit bill.

An Oklahoma Republican, Lucas said “a lot of progress” has been made in closed-door discussions among the four leaders of the committees. Stabenow, a Michigan Democrat, echoed that sentiment.

“I am very encouraged by the negotiations … If people of good will sit around the table, you can work it out,” she said.

There are some areas of agreement. Both sides would cut conservation spending by $ 6 billion and crop subsidies by more than $ 13 billion, partly by ending direct-payment subsidies now issued regardless of need.

They also would expand the federally subsidized crop insurance system, now the largest strand in the farm safety net, and convert cotton subsidies to an insurance program, which would resolve a World Trade Organization ruling against the U.S. cotton program.

Still, farm subsidies and food stamps are the chief disputes. And Lucas said a transition period may be needed to allow time to put the new law into effect.

He left open the possibility of another round of the $ 5 billion-a-year direct payment program, depending on the savings demanded by congressional leaders.

The precise target for farm spending cuts may be determined as part of high-level deal-making between the White House and Congress. The White House has suggested cuts of $ 32 billion, for example, including reduction in crop insurance.

(Reporting by Charles Abbott; editing by Ros Krasny and Jim Marshall)

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Toronto mayor to stay in power pending appeal of ouster

TORONTO (Reuters) – Toronto Mayor Rob Ford can stay in power pending an appeal of a conflict of interest ruling that ordered him out of his job as leader of Canada’s biggest city, a court ruled on Wednesday.

Madam Justice Gladys Pardu of the Ontario Divisional Court suspended a previous court ruling that said Ford should be ousted. Ford’s appeal of that ruling is set to be heard on January 7, but a decision on the appeal could take months.

Justice Pardu stressed that if she had not suspended the ruling, Ford would have been out of office by next week. “Significant uncertainty would result and needless expenses may be incurred if a by-election is called,” she said.

If Ford wins his appeal, he will get to keep his job until his term ends at the end of 2014. If he loses, the city council will either appoint a successor or call a special election, in which Ford is likely to run again.

“I can’t wait for the appeal, and I’m going to carry on doing what the people elected me to do,” Ford told reporters at City Hall following the decision.

Ford, a larger-than-life character who took power on a promise to “stop the gravy train” at City Hall, has argued that he did nothing wrong when he voted to overturn an order that he repay money that lobbyists had given to a charity he runs.

Superior Court Justice Charles Hackland disagreed, ruling last week that Ford acted with “willful blindness” in the case, and must leave office by December 10.

Ford was elected mayor in a landslide in 2010, but slashing costs without cutting services proved harder than he expected, and his popularity has fallen steeply.

He grabbed unwelcome headlines for reading while driving on a city expressway, for calling the police when a comedian tried to film part of a popular TV show outside his home, and after reports that city resources were used to help administer the high-school football team he coaches.

The conflict-of-interest drama began in 2010 when Ford, then a city councillor, used government letterhead to solicit donations for the football charity created in his name for underprivileged children.

Toronto’s integrity commissioner ordered Ford to repay the C$ 3,150 ($ 3,173) the charity received from lobbyists and companies that do business with the city.

Ford refused to repay the money, and in February 2012 he took part in a city council debate on the matter and then voted to remove the sanctions against him – despite being warned by the council speaker that voting would break the rules.

He pleaded not guilty in September, stating that he believed there was no conflict of interest as there was no financial benefit for the city. The judge dismissed that argument.

In a rare apology after last week’s court ruling, he said the matter began “because I love to help kids play football”.

Ford faces separate charges in a C$ 6 million libel case about remarks he made about corruption at City Hall, and is being audited for his campaign finances. The penalty in the audit case could also include removal from office.

(Reporting by Claire Sibonney; Editing by Janet Guttsman, Russ Blinch, Nick Zieminski; and Peter Galloway)

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U.S. agency backs Apple in essential patent battle

WASHINGTON (Reuters) – Google unit Motorola Mobility is not entitled to ask a court to stop the sale of Apple iPhones and iPads that it says infringe on a patent that is essential to wireless technology, the U.S. Federal Trade Commission said on Wednesday.

In June, Judge Richard Posner in Chicago threw out cases that Motorola, now owned by Google, and Apple had filed against each other claiming patent infringement. Both companies appealed.

In rejecting the Google case, Posner barred the company from seeking to stop iPhone sales because the patent in question was a standard essential patent.

This means that Motorola Mobility had pledged to license it on fair and reasonable terms to other companies in exchange for having the technology adopted as a wireless industry standard.

Standard essential patents, or SEPs, are treated differently because they are critical to ensuring that devices made by different companies work together.

Google appealed to the U.S. Court of Appeals for the Federal Circuit. The FTC said in its court filing that Posner had ruled correctly.

The commission, which has previously argued against courts banning products because they infringe essential patents, reiterated that position on Wednesday.

“Patent hold-up risks harming competition, innovation, and consumers because it allows a patentee to be rewarded not based on the competitive value of its technology, but based on the infringer’s costs to switch to a non-infringing alternative when an injunction is issued,” the commission wrote in its brief.

The case is Apple Inc. and NeXT Software Inc. V. Motorola Inc. and Motorola Mobility Inc., in the U.S. Court of Appeals for the Federal Circuit, no. 2012-1548, 2012-1549.

(Reporting By Diane Bartz)

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Brazilian architect Oscar Niemeyer dies, aged 104

RIO DE JANEIRO (Reuters) – Oscar Niemeyer, a towering patriarch of modern architecture who shaped the look of modern Brazil and whose inventive, curved designs left their mark on cities worldwide, died late on Wednesday. He was 104.

Niemeyer had been battling kidney ailments and pneumonia for nearly a month in a Rio de Janeiro hospital. His death was confirmed by a hospital spokesperson.

Starting in the 1930s, Niemeyer’s career spanned nine decades. His distinctive glass and white-concrete buildings include such landmarks as the United Nations Secretariat in New York, the Communist Party headquarters in Paris and the Roman Catholic Cathedral in Brasilia.

He won the 1988 Pritzker Architecture Prize, considered the “Nobel Prize of Architecture” for the Brasilia cathedral. Its “Crown of Thorns” cupola fills the church with light and a sense of soaring grandeur despite the fact that most of the building is underground.

It was one of dozens of public structures he designed for Brazil’s made-to-order capital, a city that helped define “space-age” style.

After flying over Niemeyer’s pod-like Congress, futuristic presidential palace and modular ministries in 1961, Yuri Gagarin, the Russian cosmonaut and first man in space, said “the impression was like arriving on another planet.”

In his home city of Rio de Janeiro, Niemeyer’s many projects include the “Sambadrome” stadium for Carnival parades. Perched across the bay from Rio is the “flying saucer” he designed for the Niteroi Museum of Contemporary Art.

The collection of government buildings in Brasilia, though, remain his most monumental and enduring achievement. Built from scratch in a wild and nearly uninhabited part of Brazil’s remote central plateau in just four years, it opened in 1960.

While the airplane-shaped city was planned and laid out by Niemeyer’s friend Lucio Costa, Niemeyer designed nearly every important government building in the city.

BECAME NATIONAL ICON

An ardent communist who continued working from his Copacabana beach penthouse apartment in Rio until days before his death, Niemeyer became a national icon ranking alongside Bossa Nova pioneer Tom Jobim and soccer legend Pelé.

His architecture, though, regularly trumped his politics.

Georges Pompidou, a right-wing Gaullist former French president, said Niemeyer’s design for the Communist Party of France headquarters in Paris “was the only good thing those commies ever did,” according to Niemeyer’s memoirs.

Prada, the fashion company known for providing expensive bags and wallets, thought the Communist Party building in Paris so cool it rented it for a fashion show.

Even the 1964-1985 Brazilian military government that forced Niemeyer into exile in the 1960s eventually found his buildings congenial to their dreams of making Brazil “the country of the future.”

His work is celebrated for innovative use of light and space, experimentation with reinforced concrete for aesthetic value and his self-described “architectural invention” style that produced buildings resembling abstract sculpture.

Initially influenced by the angular modernism of French-Swiss architect Le Cobusier, who worked with Niemeyer and Costa on a visit to Brazil in the 1930s, his style evolved toward rounded buildings that he said were inspired by the curves of Rio’s sunbathing women as well as beaches and verdant hills.

“That is the architecture I do, looking for new, different forms. Surprise is key in all art,” Niemeyer told Reuters in an interview in 2006. “The artistic capability of reinforced concrete is so fantastic – that is the way to go.”

Responding to criticism that his work was impractical and overly artistic, Niemeyer dismissed the idea that buildings’ design should reflect their function as a “ridiculous and irritating” architectural dogma.

“Whatever you think of his buildings, Niemeyer has stamped on the world a Brazilian style of architecture,” Dennis Sharp, a British architect and author of The Illustrated Encyclopedia of Architects and Architecture, once said of Niemeyer.

LIFELONG COMMUNIST

Niemeyer’s legacy is heavily associated with his communist views. He was a close friend of Cuba’s revolutionary leader Fidel Castro and an enemy of Brazil’s 21-year military dictatorship.

“There are only two communists left in the world, Niemeyer and myself,” Castro once joked.

Niemeyer remained politically active after returning to Brazil, taking up the cause of a militant and sometimes violent movement of landless peasants. He said in 2010 that he was a great admirer of Luiz Inacio Lula da Silva, the former labor leader who was Brazil’s president from 2003 to 2010.

Niemeyer once built a house in a Rio slum for his former driver and gave apartments and offices as presents to others.

Despite his egalitarian views, Niemeyer had no illusions that his buildings were helping to improve social justice.

Far from the model city Niemeyer had envisioned, Brasilia today is in many ways the epitome of inequality. Planned for 500,000 people, the city is now home to more than 2.5 million and VIPs keep to themselves in fenced-in villas while the poor live in distant satellite towns.

“It seemed like a new era was coming, but Brazil is the same crap – a country of the very poor and the very rich,” he said in another Reuters interview in 2001.

In a 2010 interview in his office, he was quick to blame Costa for things many dislike about Brasilia, such as its rigid ordering into homogenous “hotel,” “government,” “residential” and even “mansion” and “media” districts that can make finding a newspaper or groceries a chore.

“I just did the buildings,” he said. “All that other stuff was Costa.”

Despite Niemeyer’s atheism, one of his first significant early works was a church built in homage to St. Francis, part of a complex of modern buildings in Belo Horizonte, Brazil.

That work won the confidence of the city’s mayor Juscelino Kubitschek. When he became president, he tapped Niemeyer to help realize the dream of opening up Brazil’s interior by moving the capital from coastal Rio to the empty plains of central Brazil.

Despite years of bohemian living, Niemeyer remained married for 76 years to Annita Baldo, his first wife. He married his second wife, long-time aide Vera Lucia Cabreira, in 2006 at the age of 99. She survives him, as do four grandchildren.

Niemeyer’s only daughter, an architect, designer and gallery owner, Anna Maria, died on June 6 at the age of 82.

(Additional reporting by Brian Ellsworth; Editing by Todd Benson and Kieran Murray)

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Obama, Boehner talk; Geithner prepared to go off “cliff”

WASHINGTON (Reuters) – Republicans in Congress and President Barack Obama consumed much of Wednesday talking up their positions on the “fiscal cliff” and though Obama and Republican House Speaker John Boehner spoke by phone, neither side offered any new compromises in public.

Nor was the phone call, a rarity, followed by any immediate announcement of a face-to-face meeting that has been widely anticipated all week and was explicitly requested early in the day by House of Representatives Republican leader Eric Cantor.

Asked in an interview with CNBC if the administration was ready to go over the so-called fiscal cliff if Republicans don’t come around on taxes, Obama‘s chief negotiator, Treasury Secretary Timothy Geithner, responded: “Oh, absolutely.”

Facing spending cuts and tax increases that start to take effect in January unless Congress acts, Republicans on Capitol Hill were privately acknowledging that they were taking a public relations thrashing at the hands of the White House, which has marshaled a campaign-style offensive that involves some of the very “job-creators” Republicans say they are protecting.

Obama met with another such corporate group on Wednesday, The Business Roundtable, renewing his call to include tax hikes on the wealthiest 2 percent of Americans as part of the final resolution and for including an increase in the nation’s borrowing limit.

U.S. stocks rose on Wednesday after Obama also said a deal to avert the fiscal cliff was possible within a week, though he expressed it as a hope not a prediction.

The confrontation has become an endless loop of familiar talking points and well-worn positions. Republican leaders have balked at raising any tax rates, and Democrats have resisted Republican calls for cuts in entitlements like the Medicare and Medicaid healthcare programs.

Obama said there could be a quick deal if Republican leaders dropped their opposition to raising tax rates for those making more than $ 250,000 a year in exchange for spending cuts and entitlement reforms.

“If we can get the leadership on the Republican side to take that framework, to acknowledge that reality, then the numbers actually aren’t that far apart,” Obama told The Business Roundtable.

“Another way of putting this is we can probably solve this in about a week. It’s not that tough, but we need that conceptual breakthrough,” he said.

Geithner reiterated that there would be no deal without higher tax rates on the wealthy and without a change in congressional rules making it harder to block an increase in the U.S. debt ceiling.

“There is no prospect (for) an agreement that doesn’t involve rates going up on the top 2 percent of the wealthiest Americans,” he told CNBC.

The two sides have submitted proposals to cut deficits by more than $ 4 trillion over the next 10 years, but differ on how to get there. Republicans propose $ 1 trillion more in spending cuts than Obama, while the president wants $ 800 billion more in tax increases and $ 200 billion to boost the sluggish economy.

Republicans have shown cracks in their solidarity on taxes, however, with some saying they would be willing to let rates rise on the wealthiest 2 percent in exchange for extending low rates for the other 98 percent of taxpayers.

‘WE HAVE TO RAISE REVENUE’

Republican Senator Tom Coburn of Oklahoma said he could accept some higher tax rates as part of a long-term solution to the threat posed by spiraling U.S. debt. He said the path to prosperity would require at least a $ 9 trillion package of spending cuts and tax increases over 10 years, rather than the $ 4 trillion being discussed now.

“Personally I know we have to raise revenue. I don’t really care which way we do it. Actually, I would rather see the rates go up than do it the other way because it gives us a greater chance to reform the tax code and broaden the base in the future,” Coburn said on MSNBC.

With no resolution in sight and the fiscal cliff looming, the White House budget office has told all federal agencies to begin planning for possible automatic spending cuts that will start taking effect in January without a deal, the White House said.

White House spokesman Jay Carney said the Office of Management and Budget needed to take certain steps to be ready if an agreement is not reached and asked federal agencies for information so it could complete calculations on the required cuts.

Economists have predicted that failure to reach an accord could trigger another recession, and business executives and investors in the financial markets have watched the back and forth anxiously.

Jim McNerney, chairman of the Business Roundtable and chairman and chief executive officer of Boeing Co., called for non-stop negotiations to break the stalemate.

“We encourage both sides to work around the clock, if necessary, to avoid the severe repercussions that inaction would have on U.S. economic growth and job creation,” McNerney said in a statement after Obama’s appearance before the executives.

Obama’s call for including an increase in the debt ceiling in a final package seemed likely to complicate the negotiations.

In his speech to executives, Obama said it was a “bad strategy” for Republicans to believe they would have more leverage next year to extract concessions from the White House by threatening to let the United States default.

A debt ceiling standoff between the White House and House Republicans in 2011 brought the country perilously close to default and resulted in an embarrassing debt rating downgrade.

“I want to send a very clear message to people here: We are not going to play that game next year,” Obama told the executives.

The focus on the debt ceiling is already raising concerns among market watchers.

“The more the Republicans talk about raising or not raising the debt limit, that really makes the market nervous, and makes the White House more nervous than Congress,” said John Brady, managing director at R.J. O’Brien & Associates in Chicago. “The cliff can be punted into the future, but the debt ceiling can’t be.”

(Additional reporting by Kim Dixon, Alina Selyukh, David Alexander, Richard Cowan, Steve Holland and Rodrigo Campos; Writing by John Whitesides; Editing by Eric Beech)

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UK warned on debt ‘credibility’

5 December 2012 Last updated at 14:28 ET

The UK’s failure to meet a key public debt target “weakens the credibility” of its top AAA credit rating, the Fitch ratings agency has said.

Debt will now not fall as a proportion of the country’s output until 2016-17, a year later than Chancellor George Osborne had targeted.

Fitch said that the Autumn Statement confirmed the scale of the challenge facing the UK.

In March, it said the UK’s AAA rating was under threat.

A cut to the credit rating would mean that the country is perceived as more risky to lend to, thereby raising the cost of borrowing from international investors.

The Office for Budget Responsibility, the independent body that makes economic forecasts for the government, announced that the UK will miss its debt target and the economy will contract by 0.1% this year – a big revision from the time of the Budget in March, when it said that the economy would grow 0.8% this year.

Growth forecasts for the next five years were also cut.

“We forecast gross general government debt to peak at 97% in 2015-16, approaching the upper limit of the level consistent with the UK retaining its AAA status,” Fitch said.

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“The government has chosen not to chase the supplementary target by deploying additional consolidation measures over the next two years. In our view, missing the target weakens the credibility of the UK’s fiscal framework, which is one of the factors supporting the [AAA] rating.”

It warned in March that it could downgrade the UK in the next few years if the government does not contain the level of public debt.

Fitch said it would formally review the UK’s rating after the next Budget in March 2013.

In February, rival agency Moody’s also warned that the UK’s credit rating may be cut in future, potentially increasing borrowing costs.

Confusion on borrowing

On borrowing figures, the chancellor said that debt would not begin to fall as a proportion of the country’s output until 2016-17, which is a year later than the government’s target.

Before the statement, many analysts had predicted that the budget deficit, which is the amount the government is having to borrow in the current year, would be higher than it was last year.

However, it is now forecast to fall from £121bn in 2011-12 to £108bn in 2012-13.

But there was some confusion about how that had been achieved, with shadow chancellor Ed Balls complaining about the full figures not being in the Mr Osborne’s statement.

BBC economics editor Stephanie Flanders said that the deficit figure had fallen because the government had decided to use the proceeds from the sale of licences to run 4G mobile phone services to reduce this year’s borrowing.

Without that, she said, the deficit would have risen “maybe by a couple of billion pounds”.

There was also a reduction in the deficit of £11.5bn in the current year as a result of the Asset Purchase Facility.

As a result of the Bank of England’s quantitative easing programme, the central bank currently owns a lot of the government’s debt.

If anybody else had lent money to the government it would have had to pay interest on those loans.

The government has now decided it should not be paying interest to the Bank of England, and the benefit of that has reduced the deficit and will continue to do so for the next four years.

BBC News – Business

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