Senate Approves 'Fiscal Cliff' Deal, Sends to House

Two hours after a midnight deadline for action, the Senate passed legislation early New Year's Day to avert the so-called fiscal cliff with an overwhelming vote of 89-8.

Senate passage set the stage for a final showdown in the House, where a vote could come as early as today.

"While neither Democrats nor Republicans got everything they wanted, this agreement is the right thing to do for our country and the House should pass it without delay," President Obama said in a statement shortly after the vote.

"There's more work to do to reduce our deficits, and I'm willing to do it. But tonight's agreement ensures that, going forward, we will continue to reduce the deficit through a combination of new spending cuts and new revenues from the wealthiest Americans."

The bill extends Bush-era tax cuts permanently for individuals making less than $400,000 per year and couples making less than $450,000 but allows the top marginal tax rate on incomes above those levels to rise to 39.6 percent.

Capital gains taxes would rise to 20 percent from 15 percent.

The measure would raise the estate tax from 35 to 40 percent for estates larger than $5 million, prevent the alternative minimum tax from hammering millions of middle-class workers and extend unemployment benefits for one year.

'Fiscal Cliff': Lawmakers Scramble for Last-Minute Deal Watch Video

Lawmakers also decided at the last minute to use the measure to prevent a $900 pay raise for each member of Congress due to take effect this spring.

The steep "sequester" budget cuts scheduled to go into effect with the New Year -- a $1.2 trillion hit to defense and domestic programs -- would be postponed for two months.

"I've said all along our most important priority is protecting middle-class Americans, this legislation does that," Senate Majority Leader Harry Reid, D-Nev., said early this morning prior to the vote.

The deal at hand does little to address the nation's long-term debt woes, however, and does not entirely solve the problem of the "fiscal cliff."

Indeed, the last-minute compromise -- far short from a so-called grand bargain on deficit reduction -- could set up a new showdown on the same spending cuts in two months amplified by a brewing fight on how to raise the debt ceiling beyond $16.4 trillion. That new fiscal battle has the potential to eclipse the "fiscal cliff" in short order.

Reid said he is "disappointed" they were unable to achieve a broader deal but that the compromise was necessary.

"We tried," he said. "If we did nothing, the threat of a recession is very real."

Speaking after Reid, Senate Minority Leader Mitch McConnell, R-Ky., called the deal an "imperfect solution" and noted this should not be the model on how things get done in the Senate.

McConnell also thanked Vice President Joe Biden, who visited Capitol Hill late Monday night and brokered the deal with Senate Republicans.

The measure must now move to the Republican-led House.

Five Senate Republicans and three Democrats voted against the plan, but the large margin of passage was seen as boosting the bill's prospects in the House, even though fiscal conservatives were poised to vehemently oppose the deal when it comes to the floor for a vote.

House Speaker John Boehner of Ohio said the House would not vote on any Senate-passed measure "until House members, and the American people, have been able to review" it.

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Syria starts 2013 with aerial strikes and clashes

BEIRUT (Reuters) - Syrians woke on New Year's Day to countrywide aerial bombardment, while President Bashar al-Assad's forces and rebels fighting to topple him clashed on the outskirts of the capital.

Residents of Damascus entered the new year to the sound of artillery hitting southern and eastern districts that form a rebel-held crescent on the outskirts of the capital, the center of which is still firmly under government control.

In the center, soldiers manning checkpoints fired celebratory gunfire at midnight, causing alarm in a city where streets were largely deserted.

"How can they celebrate? There is no 'Happy New Year'," Moaz al-Shami, an opposition activists who lives in the capital's central Mezzeh district, said over Skype, his voice trembling with anger.

He said rebel fighters attacked one checkpoint in the district of Berzeh early on Tuesday. Opposition groups said mortar bombs hit the southwest suburb of Daraya, where the army launched a military offensive on Monday to retake the battered district.

Assad's air force pounded Damascus's eastern suburbs, as well as rebel-held areas in the second city Aleppo, and several rural towns and villages, opposition activists said.

An estimated 45,000 people have been killed in the revolt, which started in early 2011 with peaceful protests demanding democratic reforms but turned into an armed uprising after months of attacks on protesters by security forces.

A resident of the central city of Homs, who asked to remain anonymous, said shells had landed on the Old City early on Tuesday.

Homs lies on the strategic north-south highway and parts of the ancient city have been leveled during months of clashes. Government forces ousted rebels from the city early last year but militants have slowly crept back in.

"The Old City is under siege. There is shelling from all sides," he said.

The opposition-linked Syrian Observatory for Human Rights, a British-based monitoring group, reported 160 people killed on the final day of 2012, including at least 37 government troops. The group's reports cannot be verified.

BOMBARDMENT

The civil war in Syria has become the longest and deadliest of the conflicts that rose out of the uprisings that swept through the Arab world over the past two years.

Many Sunni Muslims, the majority in Syria, back the rebellion, while Assad, who hails from the Shi'ite-derived Alawite minority sect, is backed by some minorities who fear revenge if he falls. His family has ruled Syria harshly since his father seized power in a coup 42 years ago.

Assad's forces have lately relied more on aerial and artillery bombardment, rather than infantry. Residential areas where rebels base themselves have been targeted, killing civilians unable to flee. Schools and queues of people buying bread have been hit.

Rebels have taken swathes of the north and the east but have struggled to hold cities, complaining that they are defenseless against Assad's Soviet-built air force.

A year ago, many diplomats and analysts predicted Assad would leave power in 2012. But he has proved resilient and none of his inner circle have defected. He still largely retains control of his armed forces.

Diplomatic efforts to end the war have faltered, with the rebels refusing to negotiate unless Assad leaves power and him pledging to fight until death.

Most Western and Arab states have called for him to leave power. He is supported by Russia and Shi'ite Iran.

In the final days of 2012, international mediator Lakhdar Brahimi called on countries to push the sides to talk, saying Syria faced a choice of "hell or the political process".

One Damascus resident, who asked not to be identified for security reasons, said the usual new year's eve crowds were absent from the increasingly isolated capital.

"There was hardly anyone on the streets, no cars, no pedestrians. Most restaurants, cafes and bars were empty," she said. Some young people gathered at three bars in the old city.

"There was music but nobody was dancing. They just sat there with a drink in their hands and smoking. I don't think I saw one person smile," she said. The midnight gunfire caused alarm.

"It was very scary. No one knew what was going on. People got very nervous and started making phone calls. But then I discovered that at least on my street, the gunfire was celebratory."

(Editing by Peter Graff and Alison Williams)

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Syria backs plan for talks to end conflict

DAMASCUS: Syria's government on Monday welcomed any initiative for talks to end bloodshed in the country, after UN-Arab League envoy Lakhdar Brahimi said he had a peace plan acceptable to world powers.

The Damascus regime's stand, expressed by Prime Minister Wael al-Halaqi, came amid a flurry of diplomatic activity led by Brahimi to find ways to end the 21-month conflict.

But the violence still raged, with activists reporting the gruesome discovery of dozens of tortured, headless corpses in the northern Damascus district of Barzeh and adding that nearly 90 percent of the 45,000 people killed so far died in 2012.

"The government is working to support the national reconciliation project and will respond to any regional or international initiative that would solve the current crisis through dialogue and peaceful means and prevent foreign intervention in Syria's internal affairs," Halaqi told parliament.

He said the revolt against the regime of President Bashar al-Assad must be resolved only by the Syrian people, "without external pressures or decrees."

Halaqi said the country was "moving toward a historic moment when it will declare victory over its enemies, with the goal of positioning Syria to build a new world order that promotes national sovereignty and the concept of international law."

His remarks came after Brahimi said the conflict was worsening "by the day."

Speaking after talks in Russia, the veteran Algerian troubleshooter said on Sunday he had crafted a ceasefire plan "that could be adopted by the international community."

"I have discussed this plan with Russia and Syria... I think this proposal could be adopted by the international community," Brahimi said, without going into detail.

"There is a proposal for a political solution based on the Geneva declaration foreseeing a ceasefire, forming a government with complete prerogatives and a plan for parliamentary and presidential elections," he said, referring to a peace initiative world powers agreed to in June.

That plan was rejected by Syria's opposition, which insists Assad must go before any national dialogue can take place.

Russia and China have so far vetoed three UN Security Council draft resolutions seeking to force Assad's hand with the threat of sanctions.

The violence has escalated, with activists reporting the discovery of 30 tortured bodies in Damascus.

"Thirty bodies were found in the Barzeh district. They bore signs of torture and have so far not been identified," said the Syrian Observatory for Human Rights, which relies on medics and activists on the ground in compiling its tolls.

The Syrian Revolution General Commission, a grassroots network of anti-regime activists, gave a higher estimate of 50 bodies, saying "their heads were cut and disfigured to the point that it was no longer possible to identify" them.

These reports could not be verified independently because of restrictions on international media.

The Observatory said three civilians were killed on Monday in air attacks on the town of Douma northeast of Damascus, while fierce clashes erupted in Daraya southwest of the city.

In Idlib province, fighters from Al-Nusra Front -- blacklisted by Washington as a terror group -- and other rebels who are besieging the Wadi Deif base also clashed with troops at a nearby military post, the Observatory said.

It said at least 160 people were killed on Sunday, including 78 civilians, and that nearly 90 percent of the 45,000 people killed so far died in 2012.

It put the 2012 death toll at 39,362 people, including 28,133 civilians.

On Sunday, regime forces unleashed a fierce offensive in the central city of Homs after overrunning Deir Baalbeh, a key neighbourhood, a day earlier in fighting which left dozens dead.

A video released by the Syrian Revolution General Commission showed the bodies of nine male victims from Deir Baalbeh lying on the ground, their faces bloody and mutilated.

- AFP/xq

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Online services for Madden NFL 11, others get the ax

Electronic Arts has once again announced that a wide array of its games will soon no longer be playable online.

The company has updated its Online Service Updates page to announce that Madden NFL 11 for the
PlayStation 3,
Xbox 360, and
Wii will lose its online playability on January 11. FIFA Soccer 11, NBA Live 10, and NHL 11 are among the other titles that will no longer be playable.

EA has several times in the past removed online services for older titles. In a statement posted to its Web site, the game publisher said that the decision to end online play comes when "the number of players still enjoying the older games dwindles to a level -- fewer than 1 percent of all peak online players across all EA titles -- where it's no longer feasible to continue the behind-the-scenes work involved with keeping these games up and running."

EA's decision to remove online services from games are seldom met with backlash. The company has in the past done a good job of determining which games most folks aren't playing, and has kept online those titles that are still popular.

However, GamesIndustry.biz, which was first to report on the decision, reported today that EA's upcoming closure of NBA Live 10 and NBA Jam means its gamers won't have any NBA titles to play online on their consoles. NBA Elite 11 and NBA Live 13 were both cancelled, leaving no other recent NBA games for EA's users. Still, NBA console gamers will have one place to play their favored sport online: 2K Sports' NBA 2K13 currently offers online play.

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Pregnant U.S. woman missing in Afghanistan

KABUL The father of a pregnant American woman missing in Afghanistan has broken his silence over her disappearance to make a desperate plea for her safe return.

James Coleman, father of 27-year-old Caitlan Coleman, told The Associated Press his daughter was traveling with her Canadian husband when she vanished in early October. The last communication came from Caitlan's husband, Josh, who said he was in an Internet cafe on Oct. 8, in what he described as an "unsafe" part of Afghanistan. Caitlin was due to give birth in January.

An Afghan official has claimed the couple was kidnapped in Wardak province, west of the capital Kabul. So far, however, there has been no clear evidence they were abducted. Many insurgent groups operate in the area, but none have claimed responsibility for their disappearance, or demanded a ransom.

"I'm not sure whether they have been kidnapped by the Taliban or not," Taliban spokesman Zabihullah Mujahid told CBS News on Monday. "We are still investigating."

The U.S. Embassy in Kabul would only confirm that it was in contact with Coleman's family and was "coordinating closely with the Canadian authorities."

"Due to privacy considerations we cannot provide additional information about the case," embassy spokesman David Snepp told CBS News in a written statement.

A spokesperson for the governor of Wardak province, Shahidulla Shahid, was also unable to shed much light on the couple's fate.

"We are aware that an American woman and her husband have disappeared," he told CBS News, "but our investigation has found no lead in the case."

James Coleman was at pains to even explain why his daughter was in the war-torn country to begin with. He described her to the AP as "naive" and "adventuresome," and suggested she and Josh might have been looking for an opportunity to start working for an aid agency.

Since Caitlan's disappearance, the family has become increasingly concerned about her health, as she needs regular medical attention for a liver condition.

"Our goal is to get them back safely and healthily," he said. "I don't know what kind of care they're getting or not getting. We're just an average family and we don't have good connections with anybody and we don't have a lot of money."

The couple started traveling last July, passing through Russia, Kazakhstan and Tajikistan before entering Afghanistan.

The country is generally deemed unsafe for tourists and the area where they vanished is particularly dangerous for foreigners. Last year a German tourist was killed while traveling through central Afghanistan and a Canadian tourist was kidnapped not far from where Caitlan and her husband were last heard from.

Caitlan's father said the couple liked to travel primarily in small villages, getting to know locals along the way, and had said they were "heading into the mountains" before they disappeared.

Had they done so, they would have faced danger not only from Taliban groups and criminal gangs, but also from the elements. Temperatures in Afghanistan have consistently dropped below freezing in recent weeks, and conditions in the mountains are particularly harsh at this time of year.

Caitlan's father is holding out hope for his daughter's safe return.

"We appeal to whoever is caring for her to show compassion and allow Caity, Josh and our unborn grandbaby to come home," he told the AP.

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Deal or No Deal, 'Cliff' Debate Will Linger Into 2013

Dec 31, 2012 6:00am

AP Photo/ Evan Vucci

Analysis

The fiscal cliff is just the beginning.

Regardless of whether Democrats and Republicans reach some kind of last-minute bargain to avoid the worst effects of tax hikes and spending cuts, the disaster that has been the fiscal cliff negotiations has broad implications for the Washington agenda in 2013 and beyond.

The tone has been set for the new year, and possibly for the rest of President Obama’s time in office: Washington’s divisions are the only point that matters anymore. Call if dysfunction or call it just plain broken, just don’t call it capable of even small legislative moves that involve compromise.

Hopes of a grand bargain on fiscal policy, involving entitlement spending, tax rates, and the debt ceiling, disappeared weeks ago. All that’s left are fading possibilities involving the delaying portions of tax increases and restoring some planned cuts.

Those are moves that actually make the deficit outlook worse. More saliently, they should be the politically easy things to get done, yet Congress is paralyzed and the president appears powerless to do anything meaningful to prod action.

The other items Obama ticked through this weekend as part of his second-term agenda – immigration reform, energy and environmental policy, infrastructure investments, gun control – look like dreams in this environment.

The causes are manifold, and the blame doesn’t have to be equally distributed for the ramifications to be real. The fact is that Republicans – who will control at least one house of Congress for at least half of the president’s second term – do not now and may not ever see sufficient political benefit to offer the types of concessions Democrats are insisting on.

If an election couldn’t change that, there’s precious little left that can. Name the issue and it’s all too easy to see similar dynamics derailing meaningful reform.

Washington is now broken beyond the point where bold individual leadership can even fix it. The forces at play are bigger than the ability of the president, House Speaker John Boehner, or any other person or persons to turn them around without the certain promise of a revolt in the party ranks that would leave them out of effective power.

The cliff metaphor suggests a jump into a void, but at least one that has a bottom. Yet as the nation watches this slow-motion wreck, the depths of dysfunction have yet to be fully explored.

SHOWS: World News

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Assad's forces battle to retake Damascus suburb

AMMAN (Reuters) - Elite Syrian government troops backed by tanks battled on Monday to recapture a strategic Damascus suburb from rebels who have advanced within striking distance of the center of Syria's capital.

Five people, including a child, died from army rocket fire that hit the Daraya suburb during the fighting, opposition activists said. Daraya is part of a semi-circle of Sunni Muslim suburbs south of the capital that have been at the forefront of the 21-month-old revolt against President Bashar al-Assad.

"This is the biggest attack on Daraya in two months. An armored column is trying to advance but it is being held (back) by the Free Syrian Army," said Abu Kinan, an opposition activist in the area, referring to a rebel group.

Clashes were also reported near the airport in Aleppo, Syria's largest city, which is in the north. Insurgents have made that airport a target in the hope of limiting government access to Aleppo, which is largely under rebel control.

Rebels have taken much of the north and east of Syria over the past six months, but government forces still hold most of the densely populated southwest around the capital, the main north-south highway and the Mediterranean coast.

Government forces scored a victory on Saturday, pushing rebels out of Deir Baalbeh, a district in Homs, an important central city that straddles the highway linking Damascus with the north and the Mediterranean.

Some opposition activists have said scores or even hundreds of people were executed in Deir Baalbeh by troops that seized it after several days of fighting. However, reports of killings there on a large scale could not be verified.

More than 45,000 people are estimated to have been killed in the 21-month war, the longest and deadliest of the revolts that began throughout the Arab world two years ago. Mainly Sunni Muslim rebels are fighting to topple Assad, a member of the Alawite minority sect whose family has ruled Syria since his father seized power 42 years ago in a coup.

The opposition refuses to hold peace talks unless Assad relinquishes power, and military successes over the last six months have reinforced its belief it can drive him out by force.

However, government troops still heavily outgun the fighters and maintain air bases scattered across the country.

The Damascus suburbs have become one of the major fronts of the war, with the rebels hoping to finally bring their uprising to the capital, heart of Assad's power.

Activist Abu Kinan said that tens of thousands of civilians had fled Daraya during weeks of government assault on the suburb, but that 5,000 remained, along with hundreds of rebels. Daraya is located near the main southern highway connecting Damascus to the Jordanian border 85 km (50 miles) to the south.

Activists said Republican Guard forces are trying to push back rebels who have been slowly advancing from the outskirts of Damascus to within striking distance of government targets and central districts inhabited by Assad's Alawite minority sect.

Assad's forces have mostly relied on aerial and artillery bombardment, rather than infantry. Rebels have been able take outlying towns and have clashed with government troops near Damascus International Airport, halting flights by foreign airlines.

Another activist in Damascus with links to rebels, who did not want to be named, said Daraya has been a firing position for rebels using mortars and homemade rockets. From it, they have been able to hit a huge presidential complex located on a hilltop overlooking Damascus and target pro-Assad shabbiha militia in an Alawite enclave nearby known as Mezze 86.

"So far they have missed the palace but they are getting better. I think the regime has realized that it no longer can afford to have such a threat so close by, but it has failed to overrun Daraya before," he said.

"HELL OR THE POLITICAL PROCESS"

The opposition is backed by most Western and Arab states, while Assad has enjoyed the diplomatic protection of Moscow, which sells arms to his government and maintains a naval base in one of his ports.

Western countries have been searching for signs that Moscow is lifting its protection of Assad, hoping that would bring him down much as Russia's withdrawal of support heralded the fall of Serbian leader Slobodan Milosevic 12 years ago.

Moscow said on Saturday that it has no power to make Assad leave office, and accused the rebels of prolonging the bloodshed by refusing to negotiate with him.

U.N. envoy Lakhdar Brahimi has called on outside powers to push all sides to talk, arguing that Syria faces a choice of "hell or the political process".

Brahimi is touting a peace plan agreed to in principle by international powers six months ago, but the plan does not explicitly call for Assad to be excluded from power, which the opposition regards as a precondition to any talks.

The opposition-linked Syrian Observatory for Human Rights said that rebels clashed with government troops near Aleppo's international airport. Rami Abdelrahman, the British-based Observatory's director, told Reuters by phone that fighting flared on Sunday night and continued into Monday morning.

He said no flights were departing or arriving from the airport. Syria's state airline canceled at least one flight there over the weekend.

Nevertheless, the government's seizure of Deir Baalbeh in Homs is a reminder that its forces are still capable of recapturing territory from the lightly armed rebels. Syria's state news agency SANA said government forces seized a large cache of weapons and ammunition after capturing the district.

(Writing by Peter Graff; Editing by Oliver Holmes and Mark Heinrich)

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Hotel occupancy rates rise during festive period

SINGAPORE: Despite the grim economic outlook, occupancy rates of hotels and budget hostels rose during the festive period this year.

Hotels which Channel NewsAsia spoke to say on average, room occupancy rates are more than 90 per cent.

Tan Ningxi, marketing communications manager at Royal Plaza on Scotts said: "During this festive period, our business travellers will be home for the holidays. So we'll have more leisure guests. These leisure guests come mainly from Asia Pacific and there are also some locals. There are about 5 to 10 per cent more of the locals and they're usually here for the countdown parties, shopping, or to see the Christmas light-up."

At a hotel located further from town, there are twice as many locals staying during the festive period, compared to non-peak periods.

Budget hostels have also seen occupancy rates rise by some 20 per cent.

As many venues at restaurants and hotels are may be fully booked at the end of the year, a youth hostel has decided to rent out its balcony.

This gives its guests or members of the public another option for events or gatherings.

With the arrival of more tourists and changing minds of locals, those in the hospitality sector feel demand for rooms during the festive season will remain strong.

- CNA/xq

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Windows 8 wrestles with PC's legacy

I spend precious little time in Metro when using a traditional laptop.

(Credit:
Microsoft)

I'm by no means the first one to say this but
Windows 8 and older PCs make an odd couple.

But let me back up for a second. Before the release of Windows 8 on October 26, I tested Windows 8 on
tablets only, such as the Intel-based Samsung slate that Microsoft sold in its stores. And I was impressed with Metro.

That was then. Windows 8 Pro 64-bit is now installed on my Dell Adamo laptop. And I rarely venture into the Metro UI unless if I'm forced to.

Of course if you're one of the relative few who have a tablet like the Samsung slate or Microsoft's Surface or a touch-screen laptop like Acer's Aspire S7, yeah, then Metro is front and center, as it should be.

But on a traditional laptop it's problematic. That's why Apple, probably the biggest single force behind the rise of the touch interface, hasn't done something similar with its OSes.

Making iOS the launch point and default interface on Macs would not go over well, Steve Job's edict nixing the idea of touch on laptops notwithstanding.

So, Microsoft is going where Apple won't. Intel -- still Microsoft's single most important hardware partner -- is going there too, by the way. The chipmaker said recently that it has chosen Windows 8 "as the standard operating system for Ultrabooks and tablets in our enterprise environment."

But I don't think -- despite Microsoft's upbeat announcement about Windows 8 licenses -- the hundreds of millions of users out there with plain old PCs will warm to the concept of a touch-based launch UI.

Acer's president, Jim Wong, stated this concern rather bluntly to Digitimes this week. The Windows 8 interface could "dramatically delay adoption by consumers," he said.

I'll expand on that by saying that until touch-based laptops and hybrids are both plentiful and cheap, Windows 8 may not gain much traction. And that may take a while.

Let me close on a positive note, though. I like Windows 8. It's faster than
Windows 7 on my Dell and more stable. That's good enough for me.

And Microsoft should spend more time pitching these straightforward Windows 8 merits until touch becomes mainstream.

64-bit Windows 8 Pro on my Dell Adamo.

(Credit:
Brooke Crothers)

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Fifth victim of Russia plane crash dies

Russian police investigators and emergency services teams work at the Tu-204 jet crash site near the Vnukovo airport outside Moscow on December 29, 2012. Four people were killed and four were injured when a Russian-made airliner overshot a runway on landing at a Moscow airport and crashed onto a nearby highway, officials said. / KIRILL KUDRYAVTSEV/AFP/Getty Images

MOSCOW Investigators on Sunday examined flight recorders and other evidence to try to determine the cause of the airliner crash in Moscow that killed five people, an official said.

14 Photos

Plane crash in Moscow kills 4

The Tu-204 belonging to Russian airline Red Wings was carrying eight people, all of them crew members, when it careered off the runway Saturday while landing at Moscow's Vnukovo Airport.

It went partly into an adjacent highway, broke into pieces and caught fire.

Four people were pronounced dead soon after the crash and the airline said on its Twitter account that a fifth, a flight attendant, died Sunday. Those who died Saturday were the pilot, co-pilot, flight engineer and another attendant, Red Wings said.

The survivors were reported in critical or serious condition in Moscow hospitals.

Vladimir Markin, a spokesman for Russia's main investigative agency, was quoted by Russian news agencies saying the data recorders were being examined, along with fuel samples.

In addition, he said flight documents for the plane have been taken from the airline for examination.

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