Wall Street drifts after two-day run, Dow record in sight

NEW YORK (Reuters) - U.S. stocks edged higher on Thursday with investors hard-pressed to lift indexes to multi-year highs despite strong economic data.


The U.S. economy ticked up in the fourth quarter, reversing an earlier estimate showing contraction, and a drop in new claims for unemployment benefits last week added to a string of data that suggests the economy improved early this year.


Still, the positive revision to GDP data was expected and the claims continue a trend that is baked into prices. The market lacks catalysts as it digests its recent move higher, according to Kevin Caron, market strategist at Stifel, Nicolaus & Co in Florham Park, New Jersey, where he helps oversee $120 billion in assets under management.


"That's why I think you're seeing a fairly listless trading environment today," Caron said.


The Dow was within striking distance of a record high after a more than 7 percent year-to-date run. The Dow transports index <.djt>, seen as a bet on future growth, is up almost 13 percent this year and hit a record intraday high Thursday before turning slightly negative.


The Dow Jones industrial average <.dji> rose 14.79 points or 0.11 percent, to 14,090.16, the S&P 500 <.spx> gained 3.12 points or 0.21 percent, to 1,519.11 and the Nasdaq Composite <.ixic> added 9.13 points or 0.29 percent, to 3,171.39.


The Dow's intraday record, set October 11, 2007, stands at 14,198.10.


The S&P 500 has gained more than 2 percent in the past three sessions.


Equity markets suffered steep losses earlier in the week on concerns over the impact of an Italian election on the European economy, but bounced back on strong data and recent comments by Federal Reserve Chairman Ben Bernanke that showed continued support for the Fed's economic stimulus policy.


J.C. Penney Co Inc slumped 17.9 percent to $17.38 after the department store reported a steep drop in sales on Wednesday. Groupon Inc also slumped on weak revenue, with the stock off 20 percent at $4.76.


Cablevision shares tumbled nearly 10 percent after the cable provider took a $100 million hit on costs related to Superstorm Sandy and posted deeper video customer losses than expected.


Mylan Inc shares were on track to close at their highest ever after the generic drugmaker posted a 25 percent rise in fourth-quarter profit and said it will buy a unit of India's Strides Arcolab Ltd. Shares were last up 3.8 percent at $29.66.


Investors were keeping an eye on the debate in Washington over U.S. government budget cuts that will take effect starting Friday if lawmakers fail to reach agreement on spending and taxes. President Barack Obama and Republican congressional leaders arranged last-ditch talks to prevent the cuts, but expectations were low that any deal would emerge.


With 93 percent of the S&P 500 companies having reported results so far, 69.5 percent have beaten profit expectations, compared with a 62 percent average since 1994 and 65 percent over the past four quarters, according to Thomson Reuters data.


Fourth-quarter earnings for S&P 500 companies are estimated to have risen 6.2 percent, according to the data, above a 1.9 percent forecast at the start of the earnings season.


(Reporting by Rodrigo Campos, additional reporting by Ryan Vlastelica; Editing by Nick Zieminski)



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Rodman tells Kim Jong Un he has 'friend for life'


SEOUL, South Korea (AP) — Ex-NBA star Dennis Rodman hung out Thursday with North Korea's Kim Jong Un on the third day of his improbable journey with VICE to Pyongyang, watching the Harlem Globetrotters with the leader and later dining on sushi and drinking with him at his palace.


"You have a friend for life," Rodman told Kim before a crowd of thousands at a gymnasium where they sat side by side, chatting as they watched players from North Korea and the U.S. play, Alex Detrick, a spokesman for the New York-based VICE media company, told The Associated Press.


Rodman arrived in Pyongyang on Monday with three members of the professional Harlem Globetrotters basketball team, VICE correspondent Ryan Duffy and a production crew to shoot an episode on North Korea for a new weekly HBO series.


The unlikely encounter makes Rodman the most high-profile American to meet Kim since the young North Korean leader took power in December 2011, and takes place against a backdrop of tension between Washington and Pyongyang. North Korea conducted an underground nuclear test just two weeks ago, making clear the provocative act was a warning to the United States to drop what it considers a "hostile" policy toward the North.


Kim, a diehard basketball fan, told the former Chicago Bulls star he hoped the visit would break the ice between the United States and North Korea, VICE founder Shane Smith said.


Dressed in a blue Mao suit, Kim laughed and slapped his hands on the table before him during the game as he sat nearly knee to knee with Rodman. Rodman, the man who once turned up in a wedding dress to promote his autobiography, wore a dark suit and dark sunglasses, but still had on his nose rings and other piercings. A can of Coca-Cola sat on the table before him in photos shared with AP by VICE.


"The crowd was really engaged, laughed at all of the Globetrotters antics, and actually got super loud towards the end as the score got close," said Duffy, who suited up for the game in a blue uniform emblazoned with "United States of America. "Most fun I've had in a while."


Kim and Rodman chatted in English, but Kim primarily spoke in Korean through a translator, Smith said after speaking to the VICE crew in Pyongyang.


"They bonded during the game," Smith said by telephone from New York after speaking to the crew. "They were both enjoying the crazy shots, and the Harlem Globetrotters were putting on quite a show."


The surprise visit by the flamboyant Hall of Famer known as "The Worm" makes him an unlikely ambassador at a time when North Koreans are girding for battle with the U.S. Just last week, Kim guided frontline troops in military exercises.


North Korea and the U.S. fought on opposite sides of the three-year Korean War, which ended in a truce in 1953. The foes never signed a peace treaty, and do not have diplomatic relations.


Thursday's game ended in a 110-110 draw, with two Americans playing on each team alongside North Koreans, Detrick said. The Xinhua News Agency first reported on the game, citing witnesses who attended.


After the game, Rodman addressed Kim in a speech before a crowd of tens of thousands of North Koreans, telling him, "You have a friend for life," Detrick said.


At a lavish dinner at Kim's palace, the leader plied the group with food and drinks as the group made round after round of toasts.


"Dinner was an epic feast. Felt like about 10 courses in total," Duffy said in an email to AP. "I'd say the winners were the smoked turkey and sushi, though we had the Pyongyang cold noodles earlier in the trip and that's been the runaway favorite so far."


Duffy said he invited Kim to visit the United States, a proposal met with hearty laughter from the North Korean leader.


"Um ... so Kim Jong Un just got the (hash)VICEonHBO crew wasted ... no really, that happened," VICE producer Jason Mojica wrote on Twitter.


Rodman's trip is the second attention-grabbing U.S. visit this year to North Korea. Google's executive chairman, Eric Schmidt, made a four-day trip in January to Pyongyang, but did not meet the North Korean leader.


Extending an invitation to a man known as much for his piercings, tattoos and bad behavior as for his basketball may seem inexplicable. But Kim is known to love the NBA, and has promoted sports since becoming leader.


"We knew that he's a big lover of basketball, especially the Bulls, and it was our intention going in that we would have a good-will mission of something that's fun," Smith said. "A lot of times, things just are serious and everybody's so concerned with geopolitics that we forget just to be human beings."


Rodman's agent, Darren Prince, said Rodman wasn't concerned about criticism about making a visit to an enemy nation.


"Dennis called me last night and said it's been a great experience and he made this trip out of the love of the USA ," he said. "It's all about peace and love."


___


Associated Press NBA writer Brian Mahoney contributed to this report from New York. Follow AP's Korea bureau chief Jean Lee at twitter.com/newsjean.


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Syria war is everybody's problem






STORY HIGHLIGHTS


  • NEW: United States will give food and medical aid to rebel fighters for the first time

  • NEW: It's not clear how much that aid is worth, but $60 million will go to opposition council

  • NEW: "Behave as a human being," opposition leader urges Syrian president

  • U.S. officials are considering more nonlethal military aid




Rome (CNN) -- The United States stepped further into Syria's civil war Thursday, promising rebel fighters food and medical supplies -- but not weapons -- for the first time in the nearly two-year conflict that has claimed more than 60,000 lives and laid waste to large portions of the country.


Secretary of State John Kerry said the aid would help fighters in the high-stakes effort to topple Syrian President Bashar al-Assad, a conflict that has already spawned an enormous humanitarian crisis as refugees flee the fighting.


The ongoing fighting also poses the persistent threat of widening into a destabilizing regional crisis.


"The United States' decision to take further steps now is the result of the continued brutality of a superior armed force propped up by foreign fighters from Iran and Hezbollah, all of which threatens to destroy Syria," Kerry said after meeting opposition leaders in Rome.


Kerry didn't say how much that aid would be worth, but did announce that the United States would separately give $60 million to local groups working with the Syrian National Council to provide political administration and basic services in rebel-controlled areas of Syria.








READ: U.S. weighing nonlethal aid to Syrian opposition


That's on top of $50 million in similar aid the United States has previously pledged to the council, as well as $385 million in humanitarian assistance, Kerry said.


"This funding will allow the opposition to reach out and help the local councils to be able to rebuild in their liberated areas of Syria so that they can provide basic services to people who so often lack access today to medical care, to food, to sanitation," he said.


Islamist Influence


That aid is partly an effort to hem in radical Islamist groups vying for influence in Syria after the fall of al-Assad, a senior State Department official told CNN.


"If the Syrian opposition coalition can't touch, improve and heal the lives of Syrians in those places that have been freed, then extremists will step in and do it," the official said.


Sheikh Ahmed Moaz al-Khatib, president of the Syrian National Council, said concerns about Islamist influence had been overstated.


"We stand against every radical belief that aims to target Syria's diverse social and religious fabric," he said.


READ: Inside Syria: Exclusive look at pro-Assad Christian militia


U.S. officials hope the aid will help the coalition show what it can do and encourage al-Assad supporters to "peel away from him" and help end the fighting, the official said.


The opposition council will decide where the money goes, Kerry said.


But the United States will send technical advisers through its partners to the group's Cairo headquarters to make sure it's being used properly, the senior State Department official said.


Additional aid possible


In addition to the decision to give rebel fighters food and medical supplies, President Barack Obama is thinking about training rebels and equipping them with defensive gear such as night vision goggles, body armor and military vehicles, according to sources familiar with the discussions.


The training would help rebels decide how to use their resources, strategize and maybe train a police force to take over after al-Assad's fall, one of the sources said.


READ: Syrian army in Homs is showing strains of war


Kerry did not announce that sort of aid Thursday, but said the United States and other countries backing the rebels would "continue to consult with each other on an urgent basis."


An official who briefed reporters said the opposition has raised a lot of needs in the Rome meetings and the administration will continue to "keep those under review."


"We will do this with vetted individuals, vetted units, so it has to be done carefully and appropriately," the official said.


Humanitarian crisis


The conflict began with demands for political reform after the Arab Spring movement that swept the Middle East and Africa, but descended into a brutal civil war when the al-Assad regime began a brutal crackdown on demonstrators.


At least 60,000 people have died since the fighting began in March 2011, the United Nations High Commissioner for Human Rights said in early January.


Another 940,000 had fled the country as of Tuesday, while more than one in 10 of Syria's 20 million residents have been forced to move elsewhere inside the country because of the fighting, the United Nations High Commissioner for Refugees said.


The situation is nearing crisis proportions, with the dramatic influx of refugees threatening to break the ability of host nations to provide for their needs, Assistant High Commissioner Erika Feller told the U.N. Human Rights Council on Tuesday


"The host states, including Jordan, Lebanon, Turkey, Iraq, Egypt and the North African countries, have been exemplary in their different ways, but we fear the pressure will start to overwhelm their capacities," she told the council, according to a text of her remarks posted on the United Nations website.


Al-Khatib said it's time for the fighting to stop.


"I ask Bashar al-Assad for once, just once, to behave as a human being," he said. "Enough massacres, enough killings. Enough of your bloodshed and enough torture. I urge you to make a rational decision once in your life and end the killings."


READ: Syrian war is everybody's problem


Jill Dougherty reported from Rome, and Michael Pearson reported and wrote from Atlanta. CNN's Elise Labott also contributed to this report.






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Pope leaves Vatican before abdication

Pope Benedict XVI gives final farewell at Vatican. (WGN - Chicago)










VATICAN CITY (Reuters) - Pope Benedict left the Vatican on Thursday after pledging unconditional obedience to whoever succeeds him to guide the Roman Catholic Church at one of the most crisis-ridden periods in its 2,000-year history.

The first pope in six centuries to step down, Benedict flew off in a white Italian air force helicopter for the papal summer villa south of the capital where he took up temporary residence.






Bells rang out from St Peter's Basilica and churches all over Rome as the helicopter circled Vatican City and flew over the Colosseum and other landmarks to give the pontiff one last view of the city where he is also bishop.

"As you know, today is different to previous ones," he told an emotional, cheering crowd in the small town of Castel Gandolfo in his last public remarks as pope.

"I will only be the supreme pontiff of the Catholic Church until 8 p.m and then no longer. I will simply be a pilgrim who is starting the last phase of his pilgrimage on this earth."

He turned and went inside the villa, never to be seen again as pope.

In an emotional farewell to cardinals on Thursday morning in the Vatican's frescoed Sala Clementina, Benedict appeared to send a strong message to the top echelons of the Church as well as the faithful to remain united behind his successor, whoever he is.

"I will continue to be close to you in prayer, especially in the next few days, so that you are fully accepting of the action of the Holy Spirit in the election of the new pope," he said. "May the Lord show you what he wants. Among you there is the future pope, to whom I today declare my unconditional reverence and obedience."

The pledge, made ahead of the closed-doors conclave where cardinals will elect his successor, was significant because for the first time in history, there will be a reigning pope and a former pope living side by side in the Vatican.

Some Church scholars worry that if the next pope undoes some of Benedict's policies while his predecessor is still alive, Benedict could act as a lightning rod for conservatives and polarize the 1.2 billion-member Church.

Before boarding the helicopter, Pope Benedict said goodbye to monsignors, nuns, Vatican staff and Swiss guards in the San Damaso courtyard of the Holy See's apostolic palace. Many of his staff had tears in their eyes as the helicopter left.

As the helicopter took off, he sent his last message on Twitter: "Thank you for your love and support. May you always experience the joy that comes from putting Christ at the centre of your lives".

Benedict will spend the first few months of his retirement in the papal summer residence, Castel Gandolfo, a complex of villas boasting lush gardens, a farm and stunning views over Lake Albano in the volcanic crater below the town.

At 8 p.m. (1900 GMT/2 p.m. ET) the papacy will be officially vacant and two Swiss Guards that ceremonially watch over the summer villa will march away and not return until the new pope takes possession of the hilltop residence.

Benedict will stay until April when renovations are completed on a convent in the Vatican that will be his new home.

PAPAL PROBLEMS

With the election of the next pope taking place in the wake of sexual abuse scandals, leaks of his private papers by his butler, falling membership and demands for a greater role for women, many in the Church believe it would benefit from a fresh face from a non-European country.

A number of cardinals from the developing world, including Ghanaian Peter Turkson and Antonio Tagle of the Philippines are two names often mentioned as leading candidates from the developing world who listen more.

"At the past two conclaves, the cardinals elected the smartest man in the room. Now, it may be time to choose a man who will listen to all the other smart people in the Church," said Father Tom Resse, a historian and senior fellow at the Woodstock Theological Center at Georgetown University.

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U.S. to give Syrian rebels medical, food aid, not arms


ROME (Reuters) - The United States said on Thursday it will for the first time give non-lethal aid to Syrian rebels and more than double its aid to Syria's civilian opposition, disappointing opponents of President Bashar al-Assad clamoring for Western weapons.


The United States cast the aid as a way to bolster the rebels' popular support. It will include medical supplies, food for rebel fighters and $60 million to help the civil opposition provide basic services like security, education and sanitation.


U.S. Secretary of State John Kerry announced the new steps after a meeting of 11 mostly European and Arab nations within the "Friends of Syria" group.


The aid did not appear to entirely satisfy the Syrian National Council opposition, a fractious Cairo-based group that has struggled to gain traction inside Syria, especially among disparate rebel forces.


"Many sides ... focus (more) on the length of the rebel fighter's beard than they do on the blood of the children being killed," Syrian National Coalition President Moaz Alkhatib said at an appearance with Kerry and Italian Foreign Minister Giulio Terzi.


TALKS ON PRIME MINISTER POSTPONED


In what analysts described as a sign of disappointment, Syria's political opposition has postponed talks to choose the leader of a provisional government, two opposition sources told Reuters in Beirut.


Opposition leaders hoped a Saturday meeting in Istanbul would elect a prime minister to operate in rebel-controlled areas of Syria, threatened by a slide into chaos as the conflict between Assad's forces and insurgents nears its second anniversary.


While one source said the meeting might happen later in the week, a second source said it had been put off because the three most likely candidates for prime minister had reservations about taking the role without more concrete international support.


"The opposition has been increasingly signaling that it is tired of waiting and no one serious will agree to be head of a government without real political and logistical support," said Syrian political commentator Hassan Bali, who lives in Germany.


Bali said the United States and other members of the core "Friends of Syria" nations appeared intent "on raising the ante against Assad but are not sure how."


A final communique said participants would "coordinate their efforts closely so as to best empower the Syrian people and support the Supreme Military Command of the (rebel) Free Syrian Army in its efforts to help them exercise self-defense".


More than 70,000 Syrians have been killed in a fierce conflict that began with peaceful anti-Assad protests nearly two years ago. Some 860,000 have fled abroad and several million are displaced within the country or need humanitarian assistance.


The United States has given $385 million in humanitarian aid but U.S. President Barack Obama has so far refused to give arms, arguing it is difficult to prevent them from falling into the hands of militants who could use them on Western targets.


On Thursday, however, Kerry said the United States would for the first time provide assistance - in the form of medical supplies and the standard U.S. military ration known as Meals Ready to Eat, or MREs - to the fighters.


A U.S. official told reporters it would give the aid only to carefully vetted fighters, adding the United States was worried that "extremists" opposed to democracy, human rights and tolerance were gaining ground in the country.


"Those members of the opposition who support our shared values ... need to set an example of a Syria where daily life is governed neither by the brutality of the Assad regime nor by the agenda of al Qaeda affiliated extremists," the official said.


If sending non-lethal assistance goes smoothly, it could conceivably offer a model for providing weaponry should Obama ultimately decide to do so.


The continued U.S. refusal to send weapons may compound the frustration that prompted the coalition to say last week it would shun the Rome talks. It attended only under U.S. pressure.


Many in the coalition say Western reluctance to arm rebels only plays into the hands of Islamist militants now widely seen as the most effective forces in the struggle to topple Assad.


However, a European diplomat held out the possibility of Western military support, saying the coalition and its Western and Arab backers would meet in Istanbul next week to discuss military and humanitarian support to the insurgents.


With fighting raging on largely sectarian lines, French President Francois Hollande said at a Moscow summit that new partners were needed to broker talks on ending the crisis, winning guarded support from Russian President Vladimir Putin.


"We think that this dialogue must find a new form so that it speaks to all parties," said Hollande, giving few details of his proposal.


Putin said Russia - one of Assad's staunchest allies - would look at Hollande's proposal, "which I think we could consider with all our partners and try to carry out."


REBELS WANT ANTI-TANK, ANTI-AIRCRAFT ARMS


Russia has said Assad's departure must not be a precondition for talks and a political solution, while the West has sided with Syria's opposition in demanding his removal from power.


Kerry's offer of medical aid and food rations fell far short of rebel demands for sophisticated anti-tank and anti-aircraft weapons to help turn the tables against Assad's mostly Russian-supplied forces.


It also stopped short of providing other forms of non-lethal assistance such as bullet-proof vests, armored personnel vehicles and military training to the insurgents.


Last week the European Union opened the way for direct aid to Syrian rebels, but did not lift an arms embargo on Syria.


Kerry said the U.S. role should not be judged in isolation but in the context of what other nations will do.


"What we are doing ... is part of a whole," he said. "I am absolutely confident ... that the totality of this effort is going to have an impact of the ability of the Syrian opposition to accomplish its goals."


(Writing by Alistair Lyon; Editing by Mark Heinrich and Roger Atwood)



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S&P 500 rises more than 1 percent

LOS ANGELES (Reuters) - Carrie Fisher, who played Princess Leia in the original "Star Wars" trilogy, was briefly hospitalized due to her bipolar disorder, the actress' spokeswoman said on Tuesday after video emerged of Fisher giving an unusual stage performance. The video came from a show Fisher gave aboard a cruise ship in the Caribbean last week, according to celebrity website TMZ, which posted the clip. The clip shows Fisher, 56, singing "Skylark" and "Bridge Over Troubled Waters," at times appearing to struggle to remember the lyrics. ...
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Benedict: Pope aware of his flaws?




Pope Benedict XVI delivers his last Angelus Blessing to thousands of pilgrims gathered in Saint Peter's Square on February 24.




STORY HIGHLIGHTS


  • Sister Mary Ann Walsh: Pope Benedict acknowledged that he made mistakes

  • Walsh: In firestorm over scholarly quotes about Islam, he went to great lengths to atone

  • Walsh: Similarly, he quickly reversed a decision that had angered Jews and repaired ties

  • Even his stepping down is a nod to his humanity and his love of the church, she says




Editor's note: Sister Mary Ann Walsh is director of media relations for the U.S. Conference of Catholic Bishops and a member of the Sisters of Mercy of the Americas Northeast Regional Community. She is a former foreign correspondent at Catholic News Service (CNS) in Rome and the editor of "John Paul II: A Light for the World," "Benedict XVI: Essays and Reflections on his Papacy," and "From Pope John Paul II to Benedict XVI."


(CNN) -- One of the Bible's paradoxical statements comes from St. Paul's Epistle to the Galatians: "Power is made perfect in infirmity."


The poetic statement proclaims that when we are weak, we are strong. Pope Benedict XVI's stepping down from what many consider one of the most powerful positions in the world proves it. In a position associated with infallibility -- though that refers to formal proclamations on faith and morals -- the pope declares his weakness.



Sister Mary Ann Walsh

Sister Mary Ann Walsh



His acceptance of frailty speaks realistically about humanity: We grow old, weaken, and eventually die. A job, even one guided by the Holy Spirit, as we Roman Catholics believe, can become too much for us.


Acceptance of human frailty has marked this papacy. We all make mistakes, but the pope makes them on a huge stage.


He was barely into his papacy, for example, when he visited Regensburg, Germany, where he once taught theology. Like many a professor, he offered a provocative statement to get the conversation going. To introduce the theme of his lecture, the pope quoted from an account of a dialogue between the Byzantine Emperor Manuel II Paleologus and an unnamed Muslim scholar, sometime near the end of the 14th century -- a quote that was misinterpreted by some as a condemnation of Mohammed and Islam.


Opinion: 'Gay lobby' behind pope's resignation? Not likely


Twice, the pope emphasized that he was quoting someone else's words. Unfortunately, the statement about Islam was taken as insult, not a discussion opener, and sparked rage throughout the Muslim world.


The startled pope had to explain himself. He apologized and traveled two months later to Istanbul's Blue Mosque, where he stood shoeless in prayer beside the Grand Mufti of Istanbul. Later he hosted Muslim leaders at the Vatican at the start of a Catholic-Muslim forum for dialogue. It was a human moment -- a mistake, an apology and atonement -- all round.










A similar controversy erupted when he tried to bring the schismatic Society of St. Pius X back into the Roman Catholic fold.


In a grand gesture toward reconciliation, he lifted the excommunication of four of its bishops, unaware that one, Richard Williamson, was a Holocaust denier. This outraged many Jews. Subsequently the Vatican said the bishop had not been vetted, and in a bow to modernity said officials at least should have looked him up on the Internet.


In humble response, Benedict reiterated his condemnation of anti-Semitism and told Williamson that he must recant his Holocaust views to be fully reinstated. Again, his admission of a mistake and an effort to mend fences.


News: Scandal threatens to overshadow pope's final days


Pope Benedict XVI came from a Catholic Bavarian town. Childhood family jaunts included trips to the shrine of the Black Madonna, Our Lady of Altotting. He entered the seminary at the age of 13. He became a priest, scholar and theologian. He lived his life in service to the church. Even in resigning from the papacy, he embraces the monastic life to pray for a church he has ever loved.


With hindsight, his visit to the tomb of 13th century Pope Celestine V, a Benedictine monk who resigned from the papacy eight centuries before, becomes poignant.


In 2009, on a visit to Aquila, Italy, Benedict left at Celestine's tomb the pallium, a stole-like vestment that signifies episcopal authority, that Benedict had worn for his installation as pope. The gesture takes on more meaning as the monkish Benedict steps down.


We expect the pope to be perfect. Catholics hold him to be the vicar of Christ on earth. He stands as a spiritual leader for much of the world. Statesmen visit him from around the globe. He lives among splendid architecture, in the shadow of the domed St. Peter's Basilica. All testify to an almost surreal omnipotence.


Complete coverage of the pope's resignation


In this world, however, walked a vulnerable, human person. And in a paradox of life, his most human moment -- giving up the power of office -- may prove to be his most potent, delivering a message that, as St. Paul noted many centuries ago, "Power is made perfect in infirmity."


Follow @CNNOpinion on Twitter.


Join us at Facebook/CNNOpinion.


The opinions expressed in this commentary are solely those of Mary Ann Walsh.






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Obama to meet with leaders over $85B in sequestration cuts




















Speaker of the House John Boehner tells Scott Pelley in a "CBS Evening News" interview that a budget deal is now out of his hands.




















































WASHINGTON -- President Barack Obama will meet with top congressional leaders on Friday to discuss the deep, automatic government spending cuts slated to go into effect that day, congressional aides said.


Known as the sequester or sequestration, the cuts amount indiscriminate across-the-board reductions in federal spending totalling $85 billion. Some 750,000 jobs could be lost, and many government services disrupted.


Talks to avert the cuts have been all but non-existent between leaders and the White House. Mostly lawmakers are now focused on ways to rearrange the way the cuts will fall across defense and domestic accounts.








Obama is set to meet with Republican Speaker of the House of Representatives John Boehner, Senate Republican Leader Mitch McConnell, Democratic Senate Majority leader Harry Reid and Nancy Pelosi, the House Democratic leader.


"The meeting Friday is an opportunity for us to visit with the president about how we can all keep our commitment to reduce Washington spending," McConnell said in a statement.


"We can either secure those reductions more intelligently, or we can do it the president's way with across-the board cuts. But one thing Americans simply will not accept is another tax increase to replace spending reductions we already agreed to," he said.


Republicans on Capitol Hill immediately questioned Obama's intent.


"If the president is serious about stopping the sequester, why did he schedule a meeting on Tuesday for Friday when the sequester hits at midnight on Thursday?” asked a Republican congressional aide who was not authorized to talk about the private meeting. "Either someone needs to buy the White House a calendar, or this is just a belated farce.  They ought to at least pretend to try."


Transportation secretary Ray LaHood told White House reporters last week that proposed cuts to eht U.S. Federal Aviation Administration would lead to delayed flights, shuttered control towers, and irate travelers.


Reuters and Lisa Mascaro, the Los Angeles Times






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Iran upbeat on nuclear talks, West still wary


ALMATY (Reuters) - Iran was upbeat on Wednesday after talks with world powers about its nuclear work ended with an agreement to meet again, but Western officials said it had yet to take concrete steps to ease their fears of a secret weapons program.


The United States, China, France, Russia, Britain and Germany offered to ease sanctions slightly in return for Iran curbing its most sensitive work, but had made clear they expected no breakthrough in the talks in Kazakhstan, the first in eight months.


U.S. Secretary of State John Kerry said the talks had been "useful" and that a serious engagement by Iran could lead to a comprehensive deal in a decade-old dispute that has threatened to trigger a new Middle East war.


Iran's foreign minister said in Vienna he was "very confident" a deal could be reached and its chief negotiator said he believed the Almaty meeting could be a "turning point".


The two sides agreed to hold expert-level talks in Istanbul on March 18 to discuss the offer, and return to Almaty for political discussions on April 5-6, when Western diplomats made clear they wanted to see substantive movement by Iran.


"Iran knows what it needs to do, the president has made clear his determination to implement his policy that Iran will not have a nuclear weapon," Kerry said in Paris.


A senior U.S. official in Almaty added: "What we care about at the end is concrete results."


ISRAELI WARNING


Israel, assumed to be the Middle East's only nuclear-armed power, was watching the talks closely. It has strongly hinted it might attack Iran if diplomacy and sanctions fail to ensure that it cannot build a nuclear weapon. Iran denies any such aim.


Israeli Prime Minister Benjamin Netanyahu said economic sanctions were failing and urged the international community to threaten Iran with military action.


Western officials said the offer presented by the six powers included an easing of a ban on trade in gold and other precious metals, and a relaxation of an import embargo on Iranian petrochemical products. They gave no further details.


In exchange, a senior U.S. official said, Iran would among other things have to suspend uranium enrichment to a fissile concentration of 20 percent at its Fordow underground facility and "constrain the ability to quickly resume operations there".


This appeared to be a softening of a previous demand that Iran ship out its entire stockpile of higher-grade enriched uranium, which it says it needs to produce medical isotopes.


Iran says it has a sovereign right to enrich uranium for peaceful purposes, and wants to fuel nuclear power plants so that it can export more oil.


But 20-percent purity is far higher than that needed for nuclear power, and rings alarm bells abroad because it is only a short technical step away from weapons-grade.


Iran's growing stockpile of 20-percent-enriched uranium is already more than half-way to a "red line" that Israel has made clear it would consider sufficient for a bomb.


ELECTION LOOMING


The U.S. official said the latest proposal would "significantly restrict the accumulation of near-20-percent enriched uranium in Iran, while enabling the Iranians to produce sufficient fuel" for their Tehran medical reactor.


Iran had previously indicated that 20-percent enrichment was up for negotiation if it received the fuel from abroad instead.


Chief negotiator Saeed Jalili suggested Iran could discuss the issue, although he appeared to rule out shutting down Fordow. He said the powers had not made that specific demand.


Western officials were aware that the closeness of Iran's presidential election in June is raising political tensions in Tehran and made rapid progress unlikely.


One diplomat in Almaty said the Iranians appeared to be suggesting at the negotiations that they were opening new avenues, but that it was not clear if this was really the case.


"Everyone is saying Iran was more positive and portrayed the talks as a win," said Iran expert Dina Esfandiary of the International Institute for Strategic Studies. "I reckon the reason for that is that they are saving face internally while buying time with the West until after the elections."


The Iranian rial, which has lost more than half its foreign exchange value in the last year as sanctions bite, rose some 2 percent on Wednesday, currency tracking web sites reported.


(Additional reporting by Fredrik Dahl in Almaty, Georgina Prodhan in Vienna, Zahra Hosseinian in Zurich, Gabriela Baczynska in Moscow, Dan Williams in Jerusalem and Marcus George in Dubai; Writing by Timothy Heritage and Fredrik Dahl; Editing by Kevin Liffey)



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Dow, S&P rise as Bernanke defends policy, warns on cuts

NEW YORK (Reuters) - Stocks mostly rose on Tuesday after Federal Reserve Chairman Ben Bernanke defended the Fed's bond-buying stimulus before Congress, but warned forced spending cuts that could be triggered this week represented a headwind for the economy.


Gains in homebuilders and other consumer stocks, following strong economic data, kept the S&P 500 nearly unchanged, while a 5 percent jump in Home Depot lifted the Dow industrials. The PHLX housing sector index <.hgx> rose 2 percent.


Stocks hit session highs shortly after Bernanke, in testimony before the Senate Banking Committee, strongly defended the Fed's bond-buying stimulus program that has been essential for the stock market's recovery.


However, he also urged lawmakers to avoid sharp spending cuts set to go into effect on Friday, which he warned could combine with earlier tax increases to create a "significant headwind" for the economic recovery.


"He really came down foursquare on the bearish camp with respect to the potential economic impact of these cuts. That's a surprise, and that's probably why the market's a little nervous right now," said Michael Jones, chief investment officer of Riverfront Investment Group in Richmond, Virginia.


The Dow Jones industrial average <.dji> rose 74.64 points or 0.54 percent to 13,858.81. The S&P 500 <.spx> gained 1.78 points or 0.12 percent to 1,489.63. The Nasdaq Composite <.ixic> dropped 5.84 points or 0.19 percent to 3,110.41.


The S&P 500 failed to move above 1,500, a closely watched level that was technical support until recently, but could now become a hurdle.


Cable network AMC Networks was the Nasdaq's biggest percentage decliner after the home of popular shows such as "The Walking Dead" and "Mad Men" reported a quarterly profit way below analysts' estimates. Its stock fell 7.4 percent to $53.77.


Equities continued to be weighed by concerns about a stalemate in Italy after a general election failed to give any party a parliamentary majority, posing the threat of prolonged instability and European financial crisis.


The FTSEurofirst-300 index of top European shares <.fteu3> unofficially closed down 1.3 percent at 1,150.58. The benchmark Italian index <.ftmib> tumbled 4.9 percent.


Dow component Home Depot Inc was the top gainer in both the Dow and the S&P 500 after the world's largest home improvement chain reported adjusted earnings and sales that beat expectations. Home Depot's shares jumped 5.5 percent to $67.46.


Macy's Inc shares climbed 2.8 percent to $39.60 after the department-store chain stated it expects full-year earnings to be above analysts' forecasts because of strong holiday sales.


Economic reports that showed strength in housing and consumer confidence also supported stocks.


U.S. home prices rose more than expected in December, according to the S&P/Case-Shiller index. Consumer confidence rebounded in February, jumping more than expected, and new-home sales rose to their highest in 4-1/2 years.


(Reporting by Rodrigo Campos; Additional reporting by Sam Forgione; Editing by Jan Paschal)



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