Hagel to Be Obama's Defense Secretary Nominee

Jan 6, 2013 4:52pm

(Junko Kimura/Getty Images)

WASHINGTON, D.C. — President Obama will nominate former senator Chuck Hagel to be his next Secretary of Defense tomorrow.

Senior officials within the administration and Capitol Hill confirmed the pick to ABC News today after the Nebraska Republican had emerged as a frontrunner among potential candidates several weeks ago.

Hagel, 66, is a decorated Vietnam veteran and businessman who served in the senate from 1997 to 2009. After having sat on that chamber’s Foreign Relations and Intelligence Committees,  he has in recent years gathered praise from current and former diplomats for his work on Obama’s Intelligence Advisory Board as well as the policy board of the current Defense Secretary Leon Panetta.

But the former lawmaker faces an upscale battle in the coming confirmation hearings in Congress; critics on both sides of the aisle have taken aim at his record toward Israel and what some have called a lack of experience necessary to lead the sprawling Pentagon bureaucracy or its operations.

Progressives have also expressed concern about comments he made in 1998, questioning whether an “openly, aggressively gay” James Hormel could be nominated to an ambassador position by then-President Clinton. Hagel apologized for the comments last month, adding that he also supported gays in the military – a position he once opposed.

Who Is Chuck Hagel? Meet Obama’s Top Pentagon Pick

The friction with his former colleagues has left a degree of uncertainty in the air going into the hearings. Today on ABC’s “This Week,” Senate Republican Leader Mitch McConnell demurred when asked whether he would support the man who, in 2008, he had championed for his candidness and stature in foreign policy.

“I’m going to wait and see how the hearings go and see whether Chuck’s views square with the job he would be nominated to do,” he told George Stephanopoulos.

Senator Lindsey Graham was more blunt in his opposition to Hagel on CNN. The Georgia Republican called Hagel an “in your face nomination,” and said he “would be the most antagonistic secretary of defense towards the state of Israel in our nation’s history.”

If confirmed, Hagel will join a crop of new cabinet members expected to join the president in his second term, including Sen. John Kerry, D-Mass., who was nominated in December to replace Hillary Clinton as Secretary of State.

ABC’s Elizabeth Hartfield and Devin Dwyer contributed reporting.

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Venezuela lawmakers elect Chavez ally as Assembly chief

CARACAS (Reuters) - Venezuelan lawmakers re-elected a staunch ally of Hugo Chavez to head the National Assembly on Saturday, putting him in line to be caretaker president if the socialist leader does not recover from cancer surgery.

By choosing the incumbent, Diosdado Cabello, the "Chavista"-dominated legislature cemented the combative ex-soldier's position as the third most powerful figure in the government, after Chavez and Vice President Nicolas Maduro.

"As a patriot ... I swear to be supremely loyal in everything I do, to defend the fatherland, its institutions, and this beautiful revolution led by our Comandante Hugo Chavez," Cabello said as he took the oath, his hand on the constitution.

He had earlier warned opposition politicians against attempting to use the National Assembly to "conspire" against the people, saying they would be "destroyed" if they tried.

Thousands of the president's red-clad supporters gathered outside parliament hours before the vote, many chanting: "We are all Chavez! Our comandante will be well! He will return!"

If Chavez had to step down, or died, Cabello would take over the running of the country as Assembly president and a new election would be organized within 30 days. Chavez's heir apparent, Maduro, would be the ruling Socialist Party candidate.

Chavez, who was diagnosed with an undisclosed form of cancer in his pelvic area in mid-2011, has not been seen in public nor heard from in more than three weeks.

Officials say the 58-year-old is in delicate condition and has suffered multiple complications since the December 11 surgery, including unexpected bleeding and severe respiratory problems.

Late on Friday, Maduro gave the clearest indication yet that the government was preparing to delay Chavez's inauguration for a new six-year term, which is scheduled for Thursday.

'CHAVEZ IS PRESIDENT'

Maduro said the ceremony was a "formality" and that Chavez could be sworn in by the Supreme Court at a later date.

The opposition says Chavez's absence would be just the latest sign that he is no longer fit to govern, and that new elections should be held in the South American OPEC nation.

Brandishing a copy of the constitution after his win in the Assembly, Cabello slammed opposition leaders for writing a letter to foreign embassies in which they accused the government of employing a "twisted reading" of the charter.

"Get this into your heads: Hugo Chavez was elected president and he will continue to be president beyond January 10. No one should have any doubt ... this is the constitutional route," he said as fellow Socialist Party lawmakers cheered.

The opposition sat stony-faced. One of their legislators had earlier told the session that it was not just the head of state who was ill, "the republic is sick."

Last year, Chavez staged what appeared to be a remarkable comeback from the disease to win re-election in October, despite being weakened by radiation therapy. He returned to Cuba for more treatment within weeks of his victory.

Should the president have to step down after 14 years in office, a new vote would probably pit Maduro, a 50-year-old former bus driver and union leader, against opposition leader Henrique Capriles, the 40-year-old governor of Miranda state.

Capriles lost to Chavez in October's presidential election.

"I don't think Maduro would last many rounds in a presidential race. He's not fit for the responsibility they have given him," Capriles said after the vice president's appearance on state television.

Chavez's condition is being watched closely by leftist allies around Latin American who have benefited from his oil-funded generosity, as well as investors attracted by Venezuela's lucrative and widely traded debt.

The country boasts the world's biggest crude reserves. Despite the huge political upheaval Chavez's exit would cause, the oil industry is not likely to be affected much in the short term, with an extension of "Chavismo" keeping projects on track, while a change in parties could usher in more foreign capital.

(Additional reporting by Deisy Buitrago; Editing by Vicki Allen)

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ECB to ring in New Year with rates on hold

FRANKFURT: The European Central Bank will usher in 2013 with steady interest rates at its first policy meeting this year to keep up the pressure on governments to solve the debt crisis, analysts predict.

With ECB interest rates currently at record lows and its latest anti-crisis weapon ready and primed for action, central bank chief Mario Draghi will not pass up the opportunity to insist once again that only governments can resolve the long-running crisis, economists said.

"Whilst a (rate) cut cannot be entirely ruled out, we do not expect the governing council to change interest rates at its meeting on Thursday," said Commerzbank economist Michael Schubert.

"On the one hand, ECB executive board members have tried to dampen rate cut speculation over recent weeks, and on the other, important sentiment indicators have increased once again," he said.

On Friday, the closely watched Purchasing Managers Index (PMI) for the entire euro area hit a nine-month high, offering hope the single currency area could be moving out of its deep double-dip recession.

Recent data for Germany, Europe's biggest economy, have also come in better than expected.

And German Finance Minister Wolfgang Schaeuble even went so far as to say he believed the embattled eurozone was now past the peak of its three-year-long debt crisis.

Market tensions have indeed eased since the ECB unveiled its anti-crisis bazooka in September, the so-called OMT bond-purchase programme.

The scheme is credited with marking a turning point in financial market sentiment towards the crisis-wracked euro even though it has not actually been used.

With markets now calmer, the ECB has been able to keep its gunpowder dry, keeping interest rates at their all-time low of 0.75 per cent and holding fire on other emergency anti-crisis measures as well, after pumping vast amounts of liquidity into the markets at the beginning of last year.

Nevertheless, at last month's meeting, ECB chief Draghi appeared to open the door to further rate cuts, crucially revealing that there had been "wide discussion" of such a move on the decision-making governing council and that the decision to keep rates on hold was anything but unanimous.

Commerzbank's Schubert pointed out, however, that top board members -- such as Yves Mersch, Peter Praet and Joerg Asmussen -- have all sought to play down possible rate cuts recently.

Deka Bank chief economist Ulrich Kater was similarly convinced that Draghi would not announce any monetary easing at his first press conference of the year.

"The policy of low interest rates is finally making itself felt in the periphery countries, thereby taking the pressure off the monetary policy actors to come up with new stimulus measures," he said.

"For the time being, there is no immediate need to act," he said.

In the United States, the US Federal Reserve hinted last week that its own huge programme of stimulus measures was under review and could be brought to an end sometime this year.

Capital Economics economist Jonathan Loynes cautioned, however, that "having prevented catastrophe in 2012 by pledging to do whatever it takes to save the euro, the ECB will have to follow words with actions in 2013".

While Loynes said he was expecting no policy changes to be announced on Thursday, "the pressure for action may soon be irresistible".

Postbank economist Thilo Heidrich said the likelihood of a rate cut was "wide open", but that he was betting on a further quarter-point reduction in the key refi rate to 0.5 per cent in the early months of this year and the ECB would keep it there "for some time to come".

Loynes at Capital Economics said that "despite the sizeable challenges facing the ECB (in 2013), it appears unlikely that it will take any steps towards meeting them at its meeting in January.

"No doubt Draghi will reaffirm that the ECB is ready to implement OMTs... and he may even show signs of warming to the idea of a cut in interest rates," Loynes said.

"Either way, though, he is likely to keep the onus on governments by stressing once again that the ECB cannot solve the region's debt crisis single-handedly," he concluded.

- AFP/fa

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Windows laptop sales sink -- but that's just part of the problem

Will businesses and consumers spring for a Windows 8 hybrid priced at $849 that's powered by a relatively pokey Atom processor?

(Credit:
Hewlett-Packard)

Windows 8 PC sales aren't trending well, according to a new report. And consumers' addiction to low cost may be a factor.

A blurb on Friday from the NPD Group said
Windows 8 holiday sales continue to not impress.

"The launch of Windows 8...did little to boost holiday sales or improve the yearlong Windows notebook sales decline," NPD said.

More specifically, Windows laptop "holiday unit sales" were down 11 percent year-to-year, the market researcher said.

Want more deets? The average selling price of a Windows laptop rose a hair -- $2 to $420, according to NPD.

Meanwhile, the average selling price of a MacBook rose almost $100 to $1,419 on a sales drop of 6 percent.

Upshot: Both Windows lappies and MacBooks saw sales decrease, but Apple made a $100 average selling price gain versus a couple of bucks for Windows.

Maybe a bigger part of the Windows sales problem is that the mix of systems has changed compared with the glory days of
Windows 7.

That is, Windows 7 was accompanied by a crush of ultracheap netbooks, according to an analysis at the Supersite for Windows -- which had some harsh words for netbooks.

"Many of those 20 million Windows 7 licenses each month -- too many, I think -- went to machines that are basically throwaway, plastic crap. Netbooks didn't just rejuvenate the market just as Windows 7 appeared, they also destroyed it from within," Paul Thurrott wrote.

"Now consumers expect to pay next to nothing for a Windows PC. Most of them simply refuse to pay for more expensive Windows PCs."

And, by the way, shipments of systems powered by Intel's power-efficient-yet-lower-performance Atom chip -- the same class of processors used in netbooks -- are barely a trickle at this point. And to make matters worse, some, like the $849
HP Envy x2, are priced way above the $399 netbooks of holiday seasons past.

There is a counterpoint to the NPD report, however. Analysts have told CNET that demand for touch-screen Windows 8 PCs in the U.S. is strong. Rhoda Alexander, an analyst at IHS iSuppli, told CNET last month that some vendors can't keep touch-screen PCs on the shelf.

So, if supply of touch-screen displays eases and system prices drop a bit, that could drive more sales. And prove to be an advantage over Apple, which doesn't have any touch-screen MacBooks.

At $749, Samsung's Intel Atom chip-based ATIV Smart PC is about $300 more than a Windows 7 Netbook.

(Credit:
Samsung)

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Houston beats Bengals 19-13 in wild-card playoff

Houston Texans quarterback Matt Schaub passes the ball against the Cincinnati Bengals during the first quarter of an NFL wild card playoff football game Saturday, Jan. 5, 2013, in Houston. / AP Photo/Dave Einsel

HOUSTON Arian Foster ran for 140 yards and a touchdown, and the Houston Texans used a stifling defensive effort for a 19-13 win over the Cincinnati Bengals on Saturday in an AFC wild-card playoff game.

The Texans will next play at New England on Jan. 13.

Foster became the first player in NFL history to have 100-yard games in each of his first three playoff games.

The Texans (13-4) had trouble finishing drives all day and mustered only three field goals in the first half. Houston struck first after the break, with Foster scoring the game's only offensive touchdown on a 1-yard run in the third quarter to make it 16-7.

In his first playoff start, Matt Schaub had an interception returned for a touchdown by Leon Hall before halftime.

Johnathan Joseph had an interception and J.J. Watt had a sack as the Texans beat the Bengals (10-7) in the wild-card round for the second straight year. Cincinnati hasn't won a playoff game since 1991, the league's longest current streak.

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City Answers Gang-Rape Cover-Up Allegations

As Steubenville, Ohio, prepares for the high-profile rape trial of two high school football players, officials, battling allegations of a cover-up, announced the creation of a new website today to debunk rumors and create what they said would be a transparent resource for the community.

"This site is not designed to be a forum for how the Juvenile Court ought to rule in this matter," the website, called Steubenville Facts, said.

A timeline of the case, beginning with the alleged gang rape of a 16-year-old girl at a party on Aug. 11-12, 2012, is posted on the site. Summaries of Ohio law relating to the case and facts about the local police force including statistics on how many graduated from Steubenville schools, is included.

The case gained national attention last week when hacking collective Anonymous leaked a video of Steubenville high school athletes mocking the 16-year-old female victim and making crude references to the alleged rape.

Steubenville Herald-Star, Michael D. McElwain/AP Photo

"It's disgusting, and I've had people calling, numerous people call here, upset, they have seen it, one woman, two women were crying, because of what they witnessed," Jefferson County Sheriff Fred Abdalla said. "It really is disgusting to watch that video."

Anonymous has called for more arrests, however Steubenville Police have said their hands are tied.

"Steubenville Police investigators are caring humans who recoil and are repulsed by many of the things they observe during an investigation," the website said, addressing the video. "Like detectives in every part of America and the world, they are often frustrated when they emotionally want to hold people accountable for certain detestable behavior but realize that there is no statute that allows a criminal charge to be made."

Occupy Steubenville, a grassroots group, estimated 1,300 people attended a rally today outside the Jefferson County Courthouse, where rape victims and their loved ones gathered to share their stories.

The father of a teenage rape victim was met with applause when he shared his outrage.

"I've tried to show my girl that not all men are like this, but only a despicable few," he said. "And their mothers that ignore the truth that they gave birth to a monster."

Authorities investigated the case and charged two Steubenville high school athletes on Aug. 22, 2012.

The teenagers face trial on Feb. 13, 2013 in juvenile court before a visiting judge.

Attorneys for the boys have denied charges in court.

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Abbas sees Palestinian unity as Fatah rallies in Gaza

GAZA (Reuters) - President Mahmoud Abbas predicted the end of a five-year split between the two big Palestinian factions as his Fatah movement staged its first mass rally in Gaza with the blessing of Hamas Islamists who rule the enclave.

"Soon we will regain our unity," Abbas, whose authority has been limited to the Israeli-occupied West Bank since the 2007 civil war between the two factions, said in a televised address to hundreds of thousands of followers marching in Gaza on Friday, with yellow Fatah flags instead of the green of Hamas.

The hardline Hamas movement, which does not recognize Israel's right to exist, expelled secular Fatah from Gaza during the war. It gave permission for the rally after the deadlock in peace talks between Abbas's administration and Israel narrowed the two factions' ideological differences.

The Palestinian rivals have drawn closer since Israel's assault on Gaza assault in November, in which Hamas, though battered, claimed victory.

Egypt has long tried to broker Hamas-Fatah reconciliation, but past efforts have foundered over questions of power-sharing, control of weaponry, and to what extent Israel and other powers would accept a Palestinian administration including Hamas.

An Egyptian official told Reuters Cairo was preparing to invite the factions for new negotiations within two weeks.

Israel fears grassroots support for Hamas could eventually topple Abbas's Palestinian Authority (PA) in the West Bank.

"Hamas could seize control of the PA any day," Israeli Prime Minister Benjamin Netanyahu said on Thursday.

The demonstration marked 48 years since Fatah's founding as the spearhead of the Palestinians' fight against Israel. Its longtime leader Yasser Arafat signed an interim 1993 peace accord that won Palestinians a measure of self rule.

Hamas, which rejected the 1993 deal, fought and won a Palestinian parliamentary election in 2006. It formed an uneasy coalition with Fatah until their violent split a year later.

Though shunned by the West, Hamas feels bolstered by electoral gains for Islamist movements in neighboring Egypt and elsewhere in the region - a confidence reflected in the fact Friday's Fatah demonstration was allowed to take place.

"The success of the rally is a success for Fatah, and for Hamas too," said Hamas spokesman Sami Abu Zuhri. "The positive atmosphere is a step on the way to regain national unity."

Fatah, meanwhile, has been riven by dissent about the credibility of Abbas's statesmanship, especially given Israel's continued settlement-building on West Bank land. The Israelis quit Gaza unilaterally in 2005 after 38 years of occupation.

"The message today is that Fatah cannot be wiped out," said Amal Hamad, a member of the group's ruling body, referring to the demonstration attended by several Abbas advisers. "Fatah lives, no one can exclude it and it seeks to end the division."

In his speech, Abbas promised to return to Gaza soon and said Palestinian unification would be "a step on the way to ending the (Israeli) occupation".

(Editing by Dan Williams, Alistair Lyon and Jason Webb)

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Singapore, Turkey reaffirm excellent bilateral ties

ANKARA: The foreign ministers of Singapore and Turkey reaffirmed the excellent state of relations between their countries during talks in the Turkish capital, Ankara on January 4.

Singapore's Foreign Affairs and Law Minister K Shanmugam and his Turkish counterpart, Professor Ahmet Davutoglu, also discussed ways to further broaden and deepen bilateral cooperation.

In particular, they looked forward to enhancing trade and investment flows, as well as more high-level exchanges, between their countries.

Mr Shanmugam welcomed Turkey's interest to step up its engagement of ASEAN.

Mr Shanmugam, who is on an official visit to Turkey from January 3 to 5, also welcomed the opening of Singapore's embassy in Ankara.

- CNA/fa

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Library of Congress digs in to full archive of 170 billion tweets

The U.S. Library of Congress said today that it has completed a process of collecting a full, ongoing stream of tweets, and that it has begun work to archive and organize more than 170 billion tweets.

Under an agreement struck between the government institution and Twitter in 2010, the microblogging company is providing the Library of Congress with a full stream of all public tweets, starting with 21 billion generated from between 2006 and April 2010, and now supplemented with about 150 billion more posted since then.

In an announcement about the status of the project today, the library wrote that:

Twitter is a new kind of collection for the Library of Congress but an important one to its mission. As society turns to social media as a primary method of communication and creative expression, social media is supplementing, and in some cases supplanting, letters, journals, serial publications and other sources routinely collected by research libraries.

Although the Library has been building and stabilizing the archive and has not yet offered researchers access, we have nevertheless received approximately 400 inquiries from researchers all over the world. Some broad topics of interest expressed by researchers run from patterns in the rise of citizen journalism and elected officials' communications to tracking vaccination rates and predicting stock market activity.

The Library of Congress isn't entirely clear how the ongoing archive will be utilized, but it has issued a white paper (PDF) outlining the project.

This project, of course, is different than Twitter's recently announced initiative to make every user's full tweet history available to them. That effort is underway, although only some users have been given access to date.

Interestingly, the Library of Congress reported in the white paper that its two full copies of the entire archive of 170 billion tweets comprise about 133 Terabytes of data. Each tweet, the library wrote, contains about 50 accompanying metadata fields.

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At least 3 killed after small plane hits home in Fla.

A scene of a plane crash in Palm Coast, Florida, Jan. 4, 2013. / CBS/WKMG/Flagler Live

PALM COAST, Fla. Authorities say at least three people are dead after a small plane crashed into a house while trying to land at a central Florida airport.

The Florida Highway Patrol confirmed the deaths Friday afternoon.

The Federal Aviation Administration says the pilot reported mechanical problems shortly after 2 p.m. Friday. The Beechcraft BE35, which had three people onboard, had been heading to Downtown Island Airport in Knoxville, Tenn., but diverted to the Flagler County Airport. FAA officials didn't immediately know where the plane took off.

The Flagler County Sheriff's Office reports that the plane hit a Palm Coast home just east of the airport a few minutes after the pilot's call. The house caught fire and the home's owner was taken to a nearby hospital in stable condition.

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