Bush to put economic progress on agenda

BEN FELLER,

Associated Press Writer

President Bush chose Wall Street as the stage to bring his economic message out from the shadows of the Iraq war.

In a speech Wednesday in New York City, Bush was expected to tout optimistic economic trends, part of a strategy this week to put pocketbook issues in the forefront of attention — if only briefly.

Bush is also likely to challenge corporate leaders to show responsibility, particularly in the area of executive pay. That's a nod to Americans who have grown disgusted with stories of enormous salaries and other perks for CEOs.

The president concedes that bitterness over the nearly four-year-old war in Iraq has overshadowed economic news of the day.

"People are working and wages are up," he said in an interview Tuesday with ABC News. "But we're in a time of war. And it's — war's unsettling. War's negative. And I understand that."
In an unusual approach for the White House, Bush said little about the economy in his State of the Union address last week, betting that the topic could get a bigger spotlight on its own. His New York appearance comes a day after his economic speech at a manufacturing plant in Peoria, Ill., where he promoted free trade and tax cuts.

For a symbolic sign of the resilience of the economy, the president chose to speak at the venerable Federal Hall on Wall Street.
In the original building on this site, American government took root — George Washington took his oath of office there, and the Congress and Supreme Court made their home there. The current hall, which dates to 1842, is now a museum that helped provide emergency shelter when terrorists destroyed the World Trade Center, just a few blocks away.
Shortly after that attack on Sept. 11, 2001, Bush went to Federal Hall to assure business leaders that the economy would bounce back and grow. He returns on Wednesday to tout the recovery and keep pushing his agenda.

Bush is expected to call for changes in enforcement of the Sarbanes-Oxley Act, which was passed in response to a wave of corporate accounting scandals. The administration is heeding concerns from companies that the law, which tightens controls on financial reporting, has gone too far and is imposing unreasonable costs.

Just before Bush's visit, the White House said it would keep funding health programs for sick ground zero workers, enough to keep the effort alive at least through 2007. Still, sick Sept. 11 workers planned a rally timed to his visit.

The public's optimism about the economy has grown since the end of the year, reflected in rising approval of Bush's handling of that economy — now at 43 percent in AP-Ipsos polling. Optimism about the economy was as high as it's been in the last year — a reflection of lower gas prices, rising wages, strong jobs reports and steady interest rates.

The economy lost momentum in the late summer, growing at a lackluster 2 percent pace, mostly reflecting fallout from the housing slump. Even with the loss of economic altitude, though, the jobs climate has been sturdy. The nation's unemployment rate is at 4.5 percent, a historically low figure. Inflation, meanwhile, has calmed down, helped out by lower energy prices.
The Bush administration contends it hasn't gotten much credit for a solid economy considering what the nation has dealt with — terrorist attacks, corporate accounting scandals, the launch of the war and Hurricane Katrina.

Democrats respond that Bush is giving a misleadingly rosy picture.
"President Bush can deliver all the economic pep talks he wants, but the fact remains that his failed leadership has led to the worst job recovery on record, stagnating household incomes, a rise in poverty and record deficits," said Stacie Paxton, spokeswoman for the Democratic National Committee.

Since Bush took office in 2001, the country has seen one in five manufacturing jobs disappear, a total of 2.96 million lost jobs. The U.S. trade deficit is expected to climb to a fifth consecutive record when final 2006 figures are totaled next month.

Bush is also seeking to assure the business community of his opposition to tax increases.
Some conservatives have been grown jittery that Bush may bend on taxes, particularly on Social Security, as part of a potential compromise with the new Democratic majority in Congress. The White House has delicately sought to end speculation about any tax increase while showing enough flexibility to get Democrats to negotiate about entitlements.

In his ABC interview, Bush was blunt in a warning to Democrats: "I've got a veto that will prevent them from raising taxes."

Concern for Nigerian press as polls loom

Concern for Nigerian press as polls loom

ABUJA (Reuters)

Britain expressed concern on Tuesday over press freedom in Nigeria ahead of April's landmark elections, citing the detention of four newspaper editors and the unsolved killing of a well-known journalist in Lagos.

The State Security Services (SSS) detained two editors from Leadership newspaper and two from the Abuja Inquirer on January 9 and 10 over political articles. They were freed within days but are still under investigation by the SSS."We are concerned at the recent actions taken against journalists of Leadership and the Abuja Inquirer," said Britain's High Commissioner to Nigeria Richard Gozney.

"Journalists should be free to cover the elections without intimidation, full stop," he said, addressing a meeting between the Independent National Electoral Commission and journalists.
Nigerians are due to elect their president, state governors and MPs in April elections that should mark the first democratic transition from one civilian government to another since independence from Britain in 1960.

Gozney also expressed concern over the December 22 killing of Godwin Agbroko, a well-known journalist and the head of the editorial board of This Day newspaper. Agbroko was shot in his car in Lagos in circumstances that have not been clarified.
Days later, part of the office building of This Day in Lagos burnt down in a fire that has also not been explained.

"We are very concerned at the tragedies that have hit This Day and we hope that ... there will be a full investigation whose results will be made public," Gozney said.
Press freedom has improved in Nigeria since it returned to civilian rule in 1999 after three decades of almost continuous military dictatorship, and newspapers frequently publish articles critical of government.

But the SSS, which answers to the presidency, is listed as a "predator of press freedom" by campaign group Reporters Without Borders. It occasionally arrests journalists, including two who were charged with sedition last year over a story saying the president's new jet was second-hand.

Bombs kill 36 in Iraq on Shiite holy day

Bombs kill 36 in Iraq on Shiite holy day

BAGHDAD, Iraq -

Assailants struck Shiite worshippers in three Iraqi cities Tuesday, killing at least 36 people in bombings and ambushes during the climax of ceremonies marking Ashoura, the holiest day in the Shiite calendar. Police, meanwhile, questioned hundreds of suspects rounded up after a fierce weekend battle aimed at preventing even deadlier attacks.

Stocks drop as economic worries offset eBay's gain

Emily Chasan

Stocks fell on Thursday as weak home sales data renewed worries about the strength of the U.S. economy, offsetting optimism about strong earnings reports from companies, such as eBay Inc. (Nasdaq:EBAY - news).
The Dow industrials closed at a record high on Wednesday, buoyed by optimism about stronger-than-expected earnings.
But a report on Thursday showed sales of previously owned U.S. homes took their biggest tumble in 17 years in December and emphasized expectations that a weaker economy will slow corporate profit growth.
"Questions remain as to what comes next for the economy," said Joseph Battipaglia, chief investment officer for Ryan, Beck & Co. in Philadelphia. "Corporate profits are coming in well, but they are certainly at a more contained pace than we've seen heretofore and the housing numbers were not good, which perpetuates the idea that there is weakness in the consumer side of the equation."
The Dow Jones industrial average (^DJI - news) was down 48.31 points, or 0.38 percent, at 12,573.46. The Standard & Poor's 500 Index (^SPX - news) was down 7.68 points, or 0.53 percent, at 1,432.45. The Nasdaq Composite Index (^IXIC - news) was down 16.59 points, or 0.67 percent, at 2,449.69.
Pressuring the Dow, shares of American International Group Inc. (NYSE:AIG - news) fell 1.4 percent to $68.92 after the world's largest insurer said it wants to buy the outstanding 38.1 percent of 21st Century Insurance Group (NYSE:TW - news) that it doesn't already own.
Shares of 21st Century surged 26.9 percent to $21.05 and ranked as the NYSE's biggest percentage gainer.
Shares of eBay jumped 8.3 percent to $32.49 on Nasdaq, a day after the online marketplace reported earnings that topped Wall Street's expectations.
St. Jude Medical Inc. (NYSE:STJ - news) shares advanced 4.5 percent to $41.45 on the NYSE after the maker of artificial heart valves and implantable defibrillators said quarterly net earnings rose from a year ago.
Shares of Exxon Mobil Corp.(NYSE:XOM - news) were the heaviest weight on the S&P 500 as crude oil for March delivery fell 72 cents to $54.65 a barrel. Exxon Mobil's shares dropped 1.2 percent at $73.99 and also dragged on the Dow.

Suicide car bomber kills 26 in Baghdad

QASSIM ABDUL-ZAHRA,

Associated Press Writer

A suicide car bomber struck a mostly Shiite neighborhood Thursday in central Baghdad, killing 26 people, hours after the prime minister promised the coming U.S.- Iraq security sweep in the capital would pursue militants wherever they were hiding.

The blast occurred shortly after two rockets slammed into the heavily fortified Green Zone. Two hours later, a second huge explosion rocked the area.
Police said they had blown up a second car bomb that had been disabled before its second suicide bomber could detonate it.

A massive plume of black smoke rose into the air on the east bank of the Tigris River and heavy gunfire rang out in the aftermath of the explosions.
The suicide bomber struck in the central neighborhood of Karradah, the second to hit the area in three days. At least three policemen were among the 26 dead from the latest bombing and 54 people were wounded, police and hospital officials said.

Angry Shiite residents took to the streets chanting, "We want the Sunnis out!" There is a small Christian and Sunni population in that section of the city.
The blast destroyed three minivans, 11 cars and dozens of shops, as well as the neighborhood's post office, according to a resident.

It struck shortly after the explosions in the Green Zone, which houses the U.S. and British embassies and Iraqi government offices. The public address system inside the compound could be heard warning in English that people should take cover because "this is not a drill."
The U.S. military said initial reports indicated that at least two rockets struck the Green Zone. U.S. Embassy spokesman Lou Fintor told The Associated Press that there were no deaths and the situation was under control, adding: "The embassy is functioning normally."

Karradah has been the site of several bombings, including one on Tuesday that killed four people and wounded seven.

Ambulances raced from the scene, at least one with the back door still open and bodies stacked in the back, according to AP Television News video.

Prime Minister Nouri al-Maliki told lawmakers that the coming U.S-Iraqi security sweep in Baghdad would not be the last battle against militants, and he said the insurgents would not be safe anywhere in the country.

Al-Maliki did not reveal the details of the plan, which he has dubbed "Operation Imposing Law," or say when it would begin.

But he promised to go after those behind Baghdad's rampant violence no matter where they tried to hide, although he promised to ensure the human rights of innocent Iraqis.

"We are full of hope. We have no other choice but to use force and any place where we receive fire will not be safe even if it is a school, a mosque, a political party office or home," he said. "There will be no safe place in Iraq for terrorists."

On Wednesday, U.S. and Iraqi troops battled Sunni insurgents holed up in high-rise buildings on Haifa Street in the heart of Baghdad, with snipers on roofs taking aim at gunmen in open windows as Apache attack helicopters hovered overhead.

The Defense Ministry said 30 militants were killed and 27 captured Wednesday.
The military reported separately that an American soldier was killed Wednesday in clashes near the city's center, but officials declined to give more specifics or say if it was connected to the Haifa Street fighting. Two U.S. Marines also were reported killed Tuesday in combat in Anbar province, the military said.

Government spokesman Ali al-Dabbagh said the latest joint raid was aimed at clearing the area, which sits just north of the heavily fortified Green Zone, of "terrorists and outlaws." He promised such operations would continue as U.S. and Iraqi troops prepare for a broader security crackdown to stanch the sectarian bloodletting that has turned Baghdad into a battlefield.
But the operation drew condemnation from a Sunni group that said it was further proof that the Shiite-led government was targeting the minority sect.

The hard-line Association of Muslim Scholars called the Haifa Street crackdown "a campaign of genocide" against Sunnis and said several buildings had been damaged and people killed. It said it had not determined the exact number of casualties.

President Bush has committed 21,500 extra troops in a surge he hopes will succeed where other efforts have failed in quelling the sectarian violence.

Al-Maliki, a Shiite, also has placed high hopes on the operation and promised it will target Shiite militias and Sunni insurgents equally.

Past attempts by U.S. forces and Iraqis to secure the capital have failed, and many critics said it was because al-Maliki had intervened to prevent the crackdowns from going after members of the Shiite Mahdi Army militia that is run by one of his political backers, anti-American cleric Muqtada al-Sadr.

The militia force is believed responsible for much of the recent sectarian killing in Baghdad and central Iraq. Its forces and death squads have deeply infiltrated Iraqi security forces.
The crackdown "aims to disarm all groups and only leave weapons in the hands of the government," al-Maliki said. "This plan will not be the last. The battle between us and terrorists is open and continuous."

Meanwhile, the mayor of Baghdad's Sadr City said he reached agreement with political and religious groups to keep weapons off the streets of the heavily populated Shiite militia stronghold and has presented the deal to U.S. and Iraqi government officials in an apparent attempt to avoid a crackdown on the area.

Rahim al-Darraji said Iraqi troops will be in charge of security in the sprawling district in eastern Baghdad. His comments come amid fears that Sadr City, the main headquarters of the Mahdi Army militia, could be a major target in the planned crackdown.

Al-Maliki said five committees will be set up to work in conjunction with the military as it and U.S. troops conduct the security plan to deal with political, media, public services, economic and community outreach aspects.
He said Baghdad would be divided into nine sectors and Iraqi troops would be in the lead, backed by American forces.

The last of five additional U.S. brigades to help with the security sweep are scheduled to arrive in the Iraqi capital in May. The first, a brigade of the 82nd Airborne Division, arrived last week.
In other violence, a bomb attached to a motorcycle exploded in one of Baghdad's busiest market areas, killing at least five people and wounding 20, police said.

The blast hit the Shorja market district about 11 a.m., said police, who gave the casualty toll. The market is a major point for wholesalers to sell food, clothing and house products.
A bomb also struck a market in the religiously mixed area of Baiyaa in western Baghdad at 10:45 a.m., killing one civilian and wounding seven, police said.

Both areas have been the targets of bombings previously as insurgents seek busy commercial targets to maximize the casualties.

In northern Iraq, gunmen killed Hussein Abdul Aziz Ahmed, a member of the local council in Gayyara, about 20 miles south of Mosul, as he was driving to work, police said

Ford posts record loss of $12.7B in 2006

TOM KRISHER,

AP Business Writer

Ford Motor Co. lost $5.8 billion in the fourth quarter amid slumping sales and huge restructuring costs, pushing the fabled automaker's deficit for the year to $12.7 billion, the largest in its 103-year history.
The annual loss reported Thursday surpassed its previous record for a year of $7.39 billion set in 1992. It earned $1.44 billion in 2005.
The Dearborn-based company expects continued losses for this year. It expects to burn up $10 billion in cash on automotive operations through 2009 and spend another $7 billion to invest in new products.
Excluding special items, Ford lost $1.50 per share in all of 2006, worse than Wall Street predicted. Fourteen analysts polled by Thomson Financial expected a loss of $1.35 per share for the year, excluding special items.
Ford said that special items associated with restructuring costs totaled $9.9 billion for the year as the company continues efforts to shrink itself to match reduced demand for its cars and trucks.

Microwave experiments cause sponge disasters

Reuters

Reports about a study that found microwave ovens can be used to sterilize kitchen sponges sent people hurrying to test the idea this week -- with sometimes disastrous results.
A team at the University of Florida found that two minutes in the microwave at full power could kill a range of bacteria, viruses and parasites on kitchen sponges.
They described how they soaked the sponges in wastewater and then zapped them. But several experimenters evidently left out the crucial step of wetting the sponge.
"Just wanted you to know that your article on microwaving sponges and scrubbers aroused my interest. However, when I put my sponge/scrubber into the microwave, it caught fire, smoked up the house, ruined my microwave, and pissed me off," one correspondent wrote in an e-mail to Reuters.
"First, the sponge is worthless afterwards so you have to throw it out instead of using it. And second your entire house stinks like a burning tire for several hours, even with windows/doors open," complained another.
Aaron Hoover, a press officer at the University of Florida, said several other news organizations received similar complaints, although no one had complained directly to the university.
"We figured, 'wow, we better let people know right away that the sponge should be wet,"' Hoover said in a telephone interview.
The university issued the following advisory: "To guard against the risk of fire, people who wish to sterilize their sponges at home must ensure the sponge is completely wet. Two minutes of microwaving is sufficient for most sterilization. Sponges should also have no metallic content. Last, people should be careful when removing the sponge from the microwave as it will be hot."