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Articles
Monday May 8, 2006
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Thank you, A. Wallace
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Dollar touches one-year low against euro
The dollar recovered after hitting fresh one-year lows against the euro and sterling on market expectations that the Federal Reserve will soon end its cycle of tightening US interest rates, analysts said.
The euro struck 1.2787 dollars in early European trading on Monday, its highest point since May 12, 2005.
In late European trade, the euro fell back to 1.2725 dollars from 1.2726 dollars late on Friday in New York.
The dollar fell to 111.48 yen, from 112.46 dollars on Friday.
Sterling hit 1.8688 dollars in early trading, its highest level since May 12, before falling back to 1.8588 dollars, unchanged from its level on Friday.
"The soft April jobs report at the end of last week appeared to seal the case for only one more interest rate hike from the Fed before a pause," Calyon analyst Mitul Kotecha said, explaining the fall of the dollar earlier in the day.
Dealers said that the dollar had recovered later Monday as investors adopted more cautious positions ahead of a decision on US interest rates on Wednesday.
With an increase in the key interest rate to 5.00 percent seen as a done deal, the focus is on the post-meeting statement for any hints on whether the Fed will pause in its two-year monetary-tightening cycle.
"There are still some expectations that the Fed will raise its interest rates to 5.25 percent but the statement is likely to be dovish," said Mamoru Ashimoto, a deputy general manager at Shinsei Bank.
US job creation weakened last month to its slowest pace since after Hurricane Katrina in August but wages took off in a warning sign for the Federal Reserve, dealers said.
US employers added 138,000 new jobs in April, the slowest pace since October and much less than Wall Street's forecast of 200,000.
Comments from European Central Bank chief Jean-Claude Trichet on Monday had also helped to support the euro in early trading, analysts said.
Trichet warned on Monday that policymakers would have to work to avoid a repeat of the knock-on effects of high oil prices that gripped the world in the 1970s, adding to expectations that the ECB will raise rates next month.
The yen was supported also by comments from Bank of Japan governor Toshihiko Fukui suggesting that Japanese interest rates could start to rise soon.
Speaking to reporters Sunday, Fukui said the first stage of the BoJ's move away from quantitative easing is nearing completion and that excess liquidity in the Japanese economy will be gone in "a few weeks".
The euro was changing hands at 1.2725 dollars against 1.2726 late on Friday, 141.87 yen (143.13), 0.6845 pounds (0.6851) and 1.5617 Swiss francs (1.5610).
The dollar stood at 111.48 yen (112.46) and 1.2272 Swiss francs (1.2265).
The pound was being traded at 1.8588 dollars (1.8588).
On the London Bullion Market, the price of an ounce of gold fell to 675.50 dollars per ounce, from 678 dollars late on Friday.
LONDON (AFP)
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Bush faces new battle over CIA nomination
The White House says it will nominate General Michael Hayden to run the CIA and defended the move to name a top military officer to run the civilian intelligence agency.
"General Hayden is the president's nominee" to replace Porter Goss, who resigned abruptly as CIA director Friday, National Security Advisor Stephen Hadley told CNN television.
News that Hayden, who ran the military's National Security Agency (NSA) from 1999 to 2005, leaked out at the weekend and lawmakers have expressed doubts about President George W. Bush's decision.
Hayden is currently deputy to National Intelligence Director John Negroponte.
Lawmakers, led by influential Republicans, said they opposed a military officer running the civilian Central Intelligence Agency.
Hadley said the Air Force general's record in transforming the NSA bureaucracy made him the right choice to lead the CIA, which has been damaged by intelligence failures over the September 11 attacks and the Iraq war.
"The issue is whether he is the best person to do this job and the president strongly believes he is," Hadley said on ABC television.
If approved by Congress, he will take over the human-intelligence- oriented CIA which has faced a storm of criticism over its failure to detect the September 11, 2001 attacks and the faulty information on weapons of mass destruction which Bush used to justify the invasion of Iraq in March 2003.
The CIA leadership has been infuriated by leaks from within the agency over intelligence and political matters.
But top US lawmakers have expressed concern about putting a military officer in charge of the agency, setting up a possible congressional showdown over Hayden with the White House.
Ruling Republican and opposition Democratic legislators cited Hayden's support for a controversial domestic spying program as a worry.
"Bottom line, I do believe he's the wrong person, the wrong place, at the wrong time," Representative Pete Hoekstra, a Republican who heads the House Intelligence Committee, said on Sunday.
"We should not have a military person leading a civilian agency at this time," Hoekstra said.
"The danger of having the military take over intelligence is that the military has a very different perspective on the world," he said. "They're worried about today and wars and threats to the United States in the short term and how we might respond militarily."
Senator Pat Roberts, the Republican chairman of the Senate Intelligence Committee, said Sunday that Hayden could ease those concerns by resigning as an Air Force general and naming civilians as his deputies.
Still, Roberts, who praised the general's intelligence expertise, would not say whether he would vote for Hayden's nomination. His committee must endorse the nomination and send it to the full Senate for approval.
"I'm not in a position to say that I am for General Hayden and will vote for him," he said.
Democratic Senator Dianne Feinstein said: "You can't have the military, I think, control most of the major aspects of intelligence."
But Hadley pointed out that there have already been military officers in charge at the CIA.
Lawmakers expect to grill Hayden over the NSA's eavesdropping program, which some believe might have broken laws against spying on US citizens.
"I have some very pointed questions," Republican Senator Arlen Specter, head of the Senate Judiciary Committee, told Fox News. "I want to know what the program is. We cannot judge its constitutionality without knowing what the program is."
Goss, a Republican politician and former CIA agent, quit as the agency's leader after less than two years in the job.
He upset the US spy establishment when he named some of his congressional allies to top jobs and used strongarm tactics in a bid to reform agency. The White House has denied reports that Goss was forced out.
WASHINGTON (AFP)
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Former Aide to Rep. Ney Pleads Guilty
A former top aide to Rep. Bob Ney (news, bio, voting record), R Ohio, pleaded guilty Monday in the Jack Abramoff influence peddling scandal, admitting he conspired to corrupt Ney, his staff and other members of Congress with trips, free tickets, jobs, meals and campaign events.
The criminal investigation of Abramoff's lobbying operation has now claimed Abramoff and three former congressional staffers: Neil Volz on Monday, as well as Tony Rudy and Michael Scanlon, who both worked for former House Majority Leader Tom DeLay, R-Texas.
All four are now government witnesses whose prison terms may depend in part on how cooperative they are with federal prosecutors in the investigation involving lawmakers, their aides and members of the Bush administration.
"They're singing for their supper," Ney lawyer Mark Tuohey said of Abramoff, Volz, Rudy and Scanlon. The lawyer said many of the allegations regarding Ney are incorrect and that "the government has been sold a bill of goods by Mr. Abramoff."
Tuohey said Volz was under "extraordinary pressure" to assist the Justice Department probe.
Volz said he engaged in a conspiracy, the intent of which was "to influence members of Congress in violation of the law."
In a nine-page document that focused on Ney's conduct, Volz enumerated 16 actions he said his old boss took on behalf of Abramoff clients. During the period from January 2000 through April 2004, Volz said Abramoff and his lobbyists gave Ney and members of his staff trips to Lake George in New York state, New Orleans, the Fiesta Bowl in Tempe, Ariz., in 2003, and a weeklong golfing retreat to the Old Course at St. Andrews in Scotland.
In addition, Volz wrote, Abramoff provided the congressman and his staff numerous tickets to concerts and sporting events in the Washington, D.C., area; regular meals and drinks at restaurants including Abramoff's restaurant Signatures, and unreported use of Abramoff's box suites at the MCI Center Arena in Washington and Camden Yards Stadium in Baltimore for political fundraisers for Ney and for candidates and political organizations he supported.
Tuohey said the congressman and his staff paid their own expenses on the trips that were inside the United States and that the congressman is "not really" a golfer. Tuohey said Ney's reason for going to Scotland was "because of the official business portion" — a meeting with representatives of the Scottish Parliament and a separate meeting with U.S. military officials. A scheduled meeting with some representatives of the British Parliament did not occur.
Ney's public filing for the Scotland trip took place two years afterward, a mixup that Ney's legal team says was due to papers being misfiled or mislaid.
Volz, 35, worked for Ney from 1995 until early 2002, when he went to work for Abramoff.
Are these accusations accurate? U.S. District Judge Ellen Segal Huvelle asked Volz during a court proceeding.
"Yes, your honor," Volz replied.
"Mr. Volz, how do you wish to plead?" asked the judge.
"Guilty, your honor," Volz replied. Volz faces up to five years in prison and a $250,000 fine.
The court papers did not detail the conduct of other congressmen, but it said that Ney, acting with Volz and others, agreed to:
_Sponsor legislation to lift a ban against commercial gambling by the Tigua Indian tribe, an Abramoff client in Texas.
_Sign a letter opposing creation of a commission to study Indian gambling.
_Assist Abramoff in obtaining government property for Abramoff's private school in Maryland.
The court papers also say that after asking Volz what Abramoff wanted the congressman to say, Ney assured the Tiguas in Texas that Abramoff was effectively representing them and that Ney would continue to press for legislation on their behalf.
In a 2003 meeting to assist Abramoff clients, Ney told Housing Secretary Mel Martinez that one of Ney's priorities would be housing for American Indians.
Among the projects on which Volz worked was securing a contract for Foxcom Wireless, an Israeli communications company, to improve cell phone reception in House office buildings.
In a conference phone call with reporters, Ney's lawyers acknowledged that the congressman met with Abramoff about a wireless contract for the House buildings. The lawyers added that Ney, then chairman of the House Administration Committee, also met with Haley Barbour, now the governor of Mississippi, who was lobbying for a competing firm at the time. Ney has said he would have been within his rights to award the contract on his own, but instead held an open competition and awarded it based on merit to the firm represented by Abramoff, Foxcom Wireless.
"The Department of Justice has now appeared in federal court four times and has been unable to even allege that Congressman Ney was bribed," Ney spokesman Brian Walsh said in a defiant statement.
The conspiracy charge that Volz pleaded guilty to states that in exchange for a "stream of things of value" supplied to Ney, the congressman agreed to take favorable official action on behalf of clients of Abramoff and Volz.
By PETE YOST, Associated Press Writer
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Text messages give '411' on teen sex
San Francisco just launched the nation's first text-messaging program aimed to shoot instant cellphone messages to sexually active young people seeking advice about sex and health. The service focuses on everything from what to do "if ur condom broke" to whom to call "if ur feeling down ... like u wanna xcape ur life."
Written in the abbreviated style of text messaging, SexInfo is open to anyone with cellphone text messaging. But it is aimed at sexually active 12- to 24-year-olds in San Francisco, especially blacks, whose rates of sexually transmitted diseases have increased in the past year, says Jacqueline McCright of the San Francisco Department of Public Health.
Kids, McCright says, "often do not get accurate information from their friends, and many times their parents don't discuss sexual issues with them. This is a way that they can get quick, easy information confidentially."
The service, based on a London program that launched in 2004, provides instant, automated responses to specific questions about pregnancy, HIV, sex and depression. Kids send a text message to 36617 (Metro PCS users use a different number) with the word "SexInfo." They are then sent a list of codes from which to choose.
"I think kids will use it," says Alexis McBride, 16, a junior at John O'Connell High School in San Francisco, who says she sends "about 100" text messages a day. "Kids text a lot," she adds.
Organizers expect other cities to pick up on the program and are hoping it develops into a national service where live operators answer text messages in real time.
"We launched San Francisco as a small pilot to show what the possibilities are," says Deb Levine, executive director of Internet Sexuality Information Services (ISIS), the non-profit organization hired to run SexInfo. "It's very clear that public health advocates are watching San Francisco to see what we're doing - I have gotten e mails from colleagues across the country."
The city health department paid ISIS $40,000 to develop SexInfo and will spend $20,000 to market it and about $2,500 a month to maintain it. Messages direct youths to San Francisco health services.
Jennifer Hartstein, psychologist with Montefiore Medical Center in the Bronx, N.Y., worries that text responses lack detail and will help teens avoid parental involvement, giving them one more way that they can keep secrets from parents. Still, she calls the service "a wonderful and innovative response" to the problem of sexually transmitted diseases among teens.
By Janet Kornblum, USA TODAY
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