Obama announces plan to close tax loopholes

WASHINGTON – President Barack Obama vowed to "detect and pursue" American tax evaders Monday as he announced a plan to close tax loopholes and clamp down on overseas shelters.
The president said he wants to prevent U.S. companies from deferring tax payments by keeping profits in foreign countries rather than recording them at home. He also called for more transparency in bank accounts held by Americans in tax havens such as the Cayman Islands.
"If financial institutions won't cooperate with us, we will assume that they are sheltering money in tax havens and act accordingly," Obama said.
The president, who hammered on this issue during his long campaign for the White House, said at a White House event that his plan would generate $210 billion in new taxes over 10 years and "make it easier" for companies to create jobs at home. Over a decade, $210 billion would make a modest dent in a federal deficit expected to swell to $1.2 trillion in 2010.
Under the plan, companies would not be able to write off domestic expenses for generating profits abroad. The goal is to reduce the incentive for U.S. companies to base all or part of their operations in other countries.
The current law, Obama said, "says you should pay lower taxes if you create a job in Bangalore, India, than if you create one in Buffalo, New York. "
He said the government also is hiring nearly 800 new IRS agents to enforce the U.S. tax code.
Congress is expected to resist significant portions of Obama's plan.
THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.
WASHINGTON (AP) — President Barack Obama proposed Monday to close U.S. tax loopholes for companies and individuals with operations or bank accounts overseas.
The president said he wants to prevent U.S. companies from deferring tax payments by keeping profits in foreign countries rather than recording them at home. He also called for more transparency in bank accounts held by Americans in tax havens such as the Cayman Islands.
"If financial institutions won't cooperate with us, we will assume that they are sheltering money in tax havens and act accordingly," Obama said.
Obama said that his plan would generate $210 billion in new taxes over 10 years and "make it easier" for companies to create jobs at home. Over a decade, $210 billion would make a modest dent in the federal deficit, expected to be $1.2 trillion in 2010.
Under the plan, companies would not be able to write off domestic expenses for generating profits abroad. The goal is to reduce the incentive for U.S. companies to base all or part of their operations in other countries.
The current law, Obama said, "says you should pay lower taxes if you create a job in Bangalore, India, than if you create one in Buffalo, New York. "
He said the government also is hiring nearly 800 new tax agents "to detect and pursue American tax evaders abroad."
Congress may resist significant portions of Obama's plan.

Swine flu cases pass 100 in US, vaccine pursued

WASHINGTON – U.S. authorities are pledging to eventually produce enough swine flu vaccine for everyone but the shots couldn't begin until fall at the earliest.
Worries about the spread of the virus mounted Thursday as the nation's swine flu caseload passed 100, and nearly 300 schools closed in communities across the country. Federal officials had to spend much of the day reassuring the public it's still safe to fly and ride public transportation after Vice President Joe Biden said he wouldn't recommend it to his family.
"There's not an increased risk there," Dr. Richard Besser, acting director of the Centers for Disease Control and Prevention, said Friday. "If you have the flu or flu-like symptoms, you shouldn't be getting on an airplane or you shouldn't be getting in the subway, but for the general population that's quite fine to do," he said.
Clinics and hospital emergency rooms in New York, California and some other states are seeing a surge in patients with coughs and sneezes that might have been ignored before the outbreak.
Scientists were racing to prepare the key ingredient to make a vaccine against the never-before-seen flu strain — if it's ultimately needed. But it will take several months before the first pilot lots begin required human testing to ensure the vaccine is safe and effective. If all goes well, broader production could start in the fall.
"We think 600 million doses is achievable in a six-month time frame" from that fall start, Health and Human Services Assistant Secretary Craig Vanderwagen told lawmakers.
"I don't want anybody to have false expectations. The science is challenging here," Vanderwagen told reporters. "Production can be done, robust production capacity is there. It's a question of can we get the science worked on the specifics of this vaccine."
Until a vaccine is ready, the government has stockpiled anti-viral medications that can ease flu symptoms or help prevent infection. The medicines are proving effective.
Reassurances from top health officials didn't stop the questions from coming.
An estimated 12,000 people logged onto a Webcast where the government's top emergency officials sought to cut confusion by answering questions straight from the public: Can a factory worker handling parts from Mexico catch the virus? No. Can pets get it? No.
And is washing hands or using those alcohol-based hand gels best? Washing well enough is the real issue, Besser said. He keeps hand gel in his pocket for between-washings but also suggested that people sing "Happy Birthday" as they wash their hands to make sure they've washed long enough to get rid of germs.
Although it is safe to fly, anyone with flu-like symptoms shouldn't be traveling anywhere, unless they need to seek medical care.
The swine flu outbreak penetrated over a dozen states and even touched the White House, which disclosed that an aide to Energy Secretary Steven Chu apparently got sick helping arrange President Barack Obama's recent trip to Mexico but that the aide did not fly on Air Force One and never posed a risk to the president.
The Washington Post identified the aide as Marc Griswold, a former Secret Service agent who was doing advance work for Chu. It said that Griswold has complained about the infection placing his family in an awkward position with family and neighbors.
"We're not the Typhoid Mary family, for goodness sake," he said. "We've been told that we're not contagious. We're already past the seven-day mark for that."
So far U.S. cases are mostly fairly mild with one death, a Mexican toddler who visited Texas with his family — unlike in Mexico where more than 160 suspected deaths have been reported. Most of the U.S. cases so far haven't needed a doctor's care, officials said.
Still, the U.S. is taking extraordinary precautions — including shipping millions of doses of anti-flu drugs to states in case they're needed. The World Health Organization is warning of an imminent pandemic because scientists cannot predict what a brand-new virus might do. A key concern is whether this spring outbreak will surge again in the fall.
The CDC confirmed 109 cases Thursday, and state officials confirm 22 more. Cases now are confirmed in New York, Texas, California, South Carolina, Kansas, Massachusetts, Indiana, Ohio, Arizona, Michigan, Nevada, New Jersey, Delaware, Maine, Colorado, Georgia and Minnesota.
Besser appeared Friday morning on ABC's "Good Morning America" and NBC's "Today" show.
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On the Net:
Health and Human Services Department swine flu site: http://us.rd.yahoo.com/dailynews/ap/ap_on_go_ca_st_pe/storytext/us_med_swine_flu_us/31858194/SIG=10s2di03h/*http://www.pandemicflu.gov

Source: Liberal-leaning Justice Souter to retire

WASHINGTON – Justice David Souter is planning to retire after nearly two decades on the Supreme Court, but his departure is unlikely to change its conservative-liberal split.
President Barack Obama's first pick for the high court is likely to be a liberal-leaning nominee, much like Souter.
The White House has been told that Souter will retire in June, when the court finishes its work for the summer, a source familiar with his plans said Thursday night. The retirement is likely to take effect only once a successor is confirmed.
The source spoke to The Associated Press on condition of anonymity because he was not authorized to speak for Souter.
Souter had no comment Thursday night, a Supreme Court spokeswoman said.
The vacancy could lead to another woman on the bench to join Justice Ruth Bader Ginsburg, currently the court's only female justice.
At 69, Souter is much younger than either Ginsburg, 76, or Justice John Paul Stevens, 89, the other two liberal justices whose names have been mentioned as possible retirees. Yet those justices have given no indication they intend to retire soon and Ginsburg said she plans to serve into her 80s, despite her recent surgery for pancreatic cancer.
Souter, a regular jogger, is thought to be in excellent health.
Interest groups immediately began gearing up.
"We're looking for President Obama to choose an eminently qualified candidate who is committed to the core constitutional values, who is committed to justice for all and not just a few," said Nan Aron, president of the liberal Alliance for Justice.
Some of the names that have been circulating include recently confirmed Solicitor General Elena Kagan; U.S. Appeals Court Judges Sonya Sotomayor, Kim McLane Wardlaw, Sandra Lea Lynch and Diane Pamela Wood; and Leah Ward Sears, chief justice of the Georgia Supreme Court. Men who have been mentioned as potential nominees include Massachusetts Gov. Deval Patrick, Harvard Law professor Cass Sunstein and U.S. District Judge Ruben Castillo of Chicago.
The Obama White House began from almost its first days in office preparing for the possibility of a retirement by thinking about and vetting potential high court nominees. Those efforts only accelerated with Ginsburg's cancer surgery.
The timing may have been unexpected, but Souter has long yearned for a life outside Washington.
He has never made any secret of his dislike for the capital, once telling acquaintances he had "the world's best job in the world's worst city." When the court finishes its work for the summer, he quickly departs for his beloved New Hampshire.
He has been on the court since 1990, when he was an obscure federal appeals court judge until President George H.W. Bush tapped him for the Supreme Court.
Bush White House aide John Sununu, the former conservative governor of New Hampshire, hailed his choice as a "home run." And early in his time in Washington, Souter was called a moderate conservative.
But he soon joined in a ruling reaffirming woman's right to an abortion, a decision from 1992 that remains still perhaps his most noted work on the court.
Souter became a reliable liberal vote on the court and was one of the four dissenters in the 2000 decision in Bush v. Gore that sealed the presidential election for George W. Bush.
Yet as Souter biographer Tinsley Yarbrough noted, "he doesn't take extreme positions." Indeed, in June, Souter sided with Exxon Mobil Corp. and broke with his liberal colleagues in slashing the punitive damages the company owed Alaskan victims of the Exxon Valdez oil spill.
Souter is the court's 105th justice, only its sixth bachelor. He works seven days a week through most of the court's October-to-July terms, a pace that he says leaves time for little else. He told an audience this year that he undergoes "an annual intellectual lobotomy" each fall.
Souter earned his bachelor's and law degrees from Harvard sandwiched around a stay at Oxford University as a Rhodes scholar.
He became New Hampshire's attorney general in 1976 and a state court judge two years later. By 1990, he was on the federal appeals court in Boston for only a few months when Bush picked him to replace Justice William Brennan on the Supreme Court.
National Public Radio first reported Souter's plans Thursday night.
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Associated Press writer Jesse J. Holland contributed to this report.

US stock futures edge up before manufacturing data

Wall Street set for modest gain as investors await reading on manufacturing activity

NEW YORK (AP) -- Stocks are set to begin May with a modest gain ahead of a key reading on U.S. manufacturing.
Wall Street, coming off its best month in nine years, has been growing more optimistic the economy is near a turnaround. Investors expect the Institute for Supply Management's manufacturing index will support that belief -- economists predict the April index will show a contraction, but the smallest one since last October.
Before the market's opening, Dow Jones industrial average futures are up 28, or 0.3 percent, at 8,154. Standard & Poor's 500 index futures are up 2.90, or 0.3 percent, at 872.90. Nasdaq 100 index futures are up 5.50, or 0.4 percent, at 1,399.00.
The S&P 500 index, a broad measure of the market, rose 9.4 percent in April. That was its biggest monthly increase since March 2000.
News on Thursday that Chrysler will be going through bankruptcy reorganization put just a small dent in Wall Street's rally, which began in early March. The Dow, still up 24.8 percent from its 12-year low on March 9, dipped 0.2 percent on the last day of the month.
The first day of May will bring not only the ISM's manufacturing index, but also data on factory orders, consumer sentiment and vehicle sales figures.
Investors will be focusing on earnings reports as well. Late Thursday, two insurers -- The Hartford Financial Services Group Inc. and MetLife Inc. -- posted losses for the first quarter. But computer security software maker McAfee Inc. said its first-quarter profit jumped 77 percent.
U.S. government bond prices slipped. The dollar was mostly lower against other major currencies. Gold prices also declined.
Light, sweet crude fell 26 cents to $50.86 a barrel in electronic trading on the New York Mercantile Exchange.
In overseas trading, Japan's Nikkei stock average rose 1.7 percent. By midday in Europe, Britain's FTSE 100 rose 0.1 percent. Germany's DAX and France's CAC-40 were closed for a holiday.

INSIDE WASHINGTON: Taxpayers to get rude surprise

INSIDE WASHINGTON: Millions of couples, retirees may have to repay some of Obama tax credit

WASHINGTON (AP) -- Millions of Americans enjoying their small windfall from President Barack Obama's "Making Work Pay" tax credit are in for an unpleasant surprise next spring.
The government is going to want some of that money back.
The tax credit is supposed to provide up to $400 to individuals and $800 to married couples as part of the massive economic recovery package enacted in February. Most workers started receiving the credit through small increases in their paychecks in the past month.
But new tax withholding tables issued by the IRS could cause millions of taxpayers to get hundreds of dollars more than they are entitled to under the credit, money that will have to be repaid at tax time.
At-risk taxpayers include a broad swath of the public: married couples in which both spouses work; workers with more than one job; retirees who have federal income taxes withheld from their pension payments and Social Security recipients with jobs that provide taxable income.
The Internal Revenue Service acknowledges problems with the withholding tables but has done little to warn average taxpayers.
"They need to get the Goodyear blimp out there on this," said Tom Ochsenschlager, vice president of taxation for the American Institute of Certified Public Accountants.
For many, the new tax tables will simply mean smaller-than-expected tax refunds next year, IRS spokesman Terry Lemons said. The average refund was nearly $2,700 this year.
But taxpayers who calculate their withholding so they get only small refunds could face an unwelcome tax bill next April, said Jackie Perlman, an analyst with the Tax Institute at H&R Block.
"They are going to get a surprise," she said.
Perlman's advice: check your federal withholding to make sure sufficient taxes are being taken out of your pay. If you are married and both spouses work, you might consider having taxes withheld at the higher rate for single filers. If you have multiple jobs, you might consider having extra taxes withheld by one of your employers. You can make that request with a Form W-4.
The IRS has a calculator on its Web site to help taxpayers figure withholding. So do many private tax preparers.
Obama has touted the tax credit as one of the big achievements of his first 100 days in office, boasting that 95 percent of working families will qualify in 2009 and 2010.
The credit pays workers 6.2 percent of their earned income, up to a maximum of $400 for individuals and $800 for married couples who file jointly. Individuals making more $95,000 and couples making more than $190,000 are ineligible.
The tax credit was designed to help boost the economy by getting more money to consumers in their regular paychecks. Employers were required to start using the new withholding tables by April 1.
The tables, however, don't take into account several common categories of taxpayers, experts said.
For example:
--A single worker with two jobs making $20,000 a year at each job will get a $400 boost in take-home pay at each of them, for a total of $800. That worker, however, is eligible for a maximum credit of $400, so the remaining $400 will have to be paid back at tax time -- either through a smaller refund or a payment to the IRS.
The IRS recognized there could be a similar problem for married couples if both spouses work, so it adjusted the withholding tables. The fix, however, was imperfect.
-- A married couple with a combined income of $50,000 is eligible for an $800 credit. However, if both spouses work and make more than $13,000, the new withholding tables give them each a $600 boost -- for a total of $1,200.
There were 33 million married couples in 2008 in which both spouses worked. That's 55 percent of all married couples, according to the Census Bureau.
-- A single college student with a part-time job making $10,000 would get a $400 boost in pay. However, if that student is claimed as a dependent on a parent's tax return, she doesn't qualify for the credit and would have to repay it when she files next year.
Some retirees face even bigger headaches.
The Social Security Administration is sending out $250 payments to more than 50 million retirees in May as part of the economic stimulus package. The payments will go to people who receive Social Security, Supplemental Security Income, railroad retirement benefits or veteran's disability benefits.
The payments are meant to provide a boost for people who don't qualify for the tax credit. However, they will go to retirees even if they have earned income and receive the credit. Those retirees will have the $250 payment deducted from their tax credit -- but not until they file their tax returns next year, long after the money may have been spent.
Retirees who have federal income taxes withheld from pension benefits also are getting an income boost as a result of the new withholding tables. However, pension benefits are not earned income, so they don't qualify for the tax credit. That money will have to paid back next year when tax returns are filed.
More than 20 million retirees and survivors receive payments from defined benefit pension plans, according to the Employee Benefit Research Institute. However, it is unclear how many have federal taxes withheld from their payments.
The American Federation of State, County and Municipal Employees union raised concerns about the effect of the tax credit on pension payments in a letter to Treasury Secretary Timothy Geithner in March.
Geithner responded that Treasury and IRS understood the concerns and were "exploring ways to mitigate that effect."
Rep. Dave Camp of Michigan, the top Republican on the tax-writing House Ways and Means Committee, said Geithner has yet to respond to concerns raised by committee members.
"So far we've got the, 'If we don't address this maybe it will go away' approach," Camp said.
IRS withholding calculator:

Police say man, 72, tied to L.A. serial killings

LOS ANGELES – Larry Manchester discovered the body on Feb. 18, 1976.
The woman, a 67-year-old retired school administrator, was dead inside her red-and-black '65 Chevy Chevelle, two blocks from her west Los Angeles apartment.
The young homicide detective popped open the trunk and saw Elizabeth McKeown lying on her side. She was naked from the chest down. She'd been beaten, raped and strangled three days earlier.
Despite his efforts and a $25,000 reward, Manchester and his colleagues could not solve the killing. For 33 years and long after he retired, Manchester, now 64, berated himself. He would clip newspaper stories about similar murders in hopes of spotting a clue.
On Thursday, the Los Angeles Police Department announced it had solved McKeown's case. The suspect, they said, was likely responsible for the murders of as many as 30 women, dating to the mid-1950s, which would make him the most prolific killer in city history.
"I was crying," Manchester said of his reaction when he learned John Floyd Thomas Jr., 72, had been arrested. "It was remarkable that they caught him."
Thomas, an insurance claims adjuster, so far is charged with two killings after cold-case detectives matched his DNA to the McKeown murder and to the 1972 strangling of Ethel Sokoloff, 68, who was sexually assaulted.
The LAPD also has partial DNA matches to two other killings, and he is a suspect in three killings in Inglewood. The Los Angeles County Sheriff's Department is looking at him in at least two other cases.
"We believe that Thomas is likely connected to many more sexually motivated murders," Deputy Chief Charlie Beck said.
Thomas was being held on $1 million bond. He could not be reached for comment, and the public defender's office said he had yet to be assigned an attorney.
Because the killings occurred before the 1977 reinstatement of the death penalty, prosecutors are seeking life in prison without parole. If Thomas is charged in later cases, they may seek death.
In Los Angeles in the mid-1970s, a man police dubbed "The Westside Rapist" entered the homes of elderly women who lived alone, raped them and choked them until they passed out or died. Beck said police believe Thomas is the rapist and may be involved in scores of unsolved rapes.
The attacks stopped in 1978 — the year Thomas went back to prison for the rape of a Pasadena woman.
He may also be involved in killings beyond Los Angeles. A decade later and 40 miles to the east, at least one elderly women in Claremont was found raped and killed. The Times reported Thomas was being investigated for the death of five elderly women in that city, but sheriff's spokesman Steve Whitmore said only one case was being looked at there.
Thomas is black. The victims in all 30 cases under review were older white women, mostly of lower incomes and often widows living alone. All were sexually assaulted and most were strangled.
Police said Thomas likely targeted the women because of their vulnerability and because they all lived alone. Cold-case detective Richard Bengston said serial killers frequently select victims of a different ethnicity.
Thomas had been twice convicted of sexual assault, and as a registered sex offender, he was required to check in annually with police.
During one visit in October, officers took a saliva swab to collect his DNA, which is a requirement for all sex offenders. Police weren't sure why he had not given a sample sooner.
Police Chief William Bratton and other officials credited Proposition 69, a voter-approved initiative that requires convicted felons and certain arrestees to submit DNA samples that are stored in a statewide database.
DNA and fingerprinting are the most important tools at a cold-case detective's disposal, Bengston said. When the killings were first investigated, there was no central computer system to quickly flag possible connections between crimes, and detectives relied on teletypewriter printouts and monthly meetings to exchange information.
Thomas was arrested at his South Los Angeles apartment on March 31, authorities said. Soon after, he resigned from his job with the State Compensation Insurance Fund in Glendale.
Born in Los Angeles, Thomas was 12 when his mother died. He was raised by an aunt and godmother and joined the Air Force in 1956. He was considered sloppy and late and was dishonorably discharged, according to the Los Angeles Times, which first reported the story.
In 1957, he was convicted of burglary and attempted rape in Los Angeles and sentenced to six years in prison. After his release, parole violations sent him back behind bars until 1966.
The allegations about Thomas stunned a friend, Earl Ofari Hutchinson, prominent host of the Los Angeles Urban Policy Roundtable and a commentator and author of books on the black experience in America.
"Shocked, shocked, shocked," said Hutchinson, who had known Thomas since about 1989. "He was very engaging, very involved, seemed very informed."
He said Thomas is married and has children.
Los Angeles police are still investigating at least a dozen other murders connected to an unidentified serial killer who has been dubbed the "Grim Sleeper."
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Associated Press writers John Antczak and Robert Jablon contributed to this story.

US military says 3 American troops killed in Iraq

BAGHDAD – Three U.S. troops have been killed in fighting west of Baghdad, the military said Friday, making April the deadliest month for American forces in Iraq since September.

At least 18 U.S. soldiers died in April, a sharp increase from March's total of nine — the lowest since the war began in March 2003.

The deaths come as a series of deadly bombings in recent weeks has raised concerns that insurgents are stepping up their efforts to re-ignite sectarian bloodshed and derail security gains that have brought overall violence to its lowest levels in recent years.

Most of the violence has targeted Iraqis since the Americans have begun pulling back from inner-city outposts and letting Iraqis take the lead in security operations. But attacks have continued against U.S. forces.

Two people were arrested following an anti-tank grenade attack against U.S. forces Wednesday in a mainly Sunni neighborhood in northwestern Baghdad, the military said.

The two U.S. Marines and one sailor were killed Thursday while conducting combat operations in Anbar province, according to a statement. Anbar is a former insurgent stronghold that has been relatively calm since Sunni tribal leaders turned against al-Qaida in Iraq.

April has been the deadliest month since September, when 25 American forces died.

The U.S. military reported 17 Americans killed in February and 16 in January.

April also saw the most troops killed in combat so far this year, as opposed to other causes. Thirteen of last month's 18 deaths were in combat compared with four among the nine in March.

In all, at least 4,281 members of the U.S. military have died in the Iraq war since it began in March 2003, according to an Associated Press count.

The military statement did not provide further details about the nature of the fighting in Anbar. It also did not identify the troops, pending notification of relatives.

Civilian deaths in Iraq in April were also higher than previous months following a series of bombings that killed more than 200 people.

At least 355 Iraqi civilians and Iraqi security forces were killed in violence in April, according to a monthly death toll issued by various Iraqi government ministries.

That compares with an Associated Press tally of at least 365 Iraqis killed — in addition to 80 Iranian pilgrims — in violence in April. In March, 335 people were killed in violence in Iraq; 283 in February and 242 in January, according to the AP figures.

President Barack Obama, who has ordered U.S. combat operations to withdraw from Iraq by the end of August 2010, called the recent attacks a "legitimate cause of concern" but stressed the violence remained low compared to previous years.

"You haven't seen the kinds of huge spikes that you were seeing for a time. The political system is holding and functioning in Iraq," he said Wednesday in Washington.

Chrysler gets labor deals in fight for survival

It looks like scrappy Chrysler LLC might yet escape the auctioneer's gavel. The smallest of the three major U.S.-based automakers cleared two major hurdles on Sunday in its quest for survival, agreeing on a concession agreement with negotiators for the United Auto Workers and winning ratification of its cost-cutting deal with the Canadian Auto Workers.
That leaves two obstacles standing between Chrysler and up to $6 billion in additional loans from the U.S. government: A partnership deal with Italy's Fiat Group SpA and an agreement to swap equity for debt with banks and hedge funds that hold $6.9 billion in secured Chrysler loans.
Details of the UAW deal weren't disclosed, but the union said it was crafted together with Chrysler, Fiat Group SpA and the U.S. government. That means the cost cuts have been blessed by the Treasury Department, which has been overseeing efforts to restructure Chrysler and its Detroit counterpart, General Motors Corp.
It also means Fiat was heavily involved in negotiations, a sign that the Italian automaker is serious about taking a 20 percent stake in Chrysler in exchange for providing the Auburn Hills, Mich., company with small-car technology.
Chrysler has been living on $4 billion in government loans and may get another $500 million to keep it alive through Thursday's deadline to restructure to the government's satisfaction. If it can't close the final deals, however, no more government money will be made available and the company almost certainly would be auctioned off in pieces under bankruptcy court supervision.
Chrysler Chief Executive Robert Nardelli told employees Monday in an e-mail that management is doing all it can to get more government aid and save their jobs.

Swine flu prompts EU warning on travel to US

The top EU health official urged Europeans on Monday to postpone nonessential travel to parts of the United States and Mexico because of the swine flu virus, and Spanish health officials confirmed the first case outside North America.
Russia, Hong Kong and Taiwan said they would quarantine visitors showing symptoms of the virus amid a surging global concern about a possible pandemic.
World stock markets fell as investors worried that the deadly outbreak could go global and derail any global economic recovery. Airlines took the brunt of the selling.
The virus was suspected in up to 103 deaths in Mexico, the epicenter of the outbreak with more than 1,600 cases suspected, while 40 cases — none fatal — were confirmed in the United States and six in Canada, the World Health Organization said.
"Today we've seen increased number of confirmed cases in several countries," WHO spokesman Paul Garwood told The Associated Press. "WHO is very concerned about the number of cases that are appearing, and the fact that more and more cases are appearing in different countries."
President Barack Obama said the threat of spreading infections is cause for concern but "not a cause for alarm."

Obama heads to Americas summit with Cuba focus

MEXICO CITY – After backing Mexico's ongoing battle against drug cartels, President Barack Obama is heading to a Western Hemisphere summit with a sudden spotlight on Cuba. The president is to fly Friday to the island of Trinidad for the 34-nation Summit of the Americas, a gathering to which Cuba, as the region's only non-democracy, is not invited. Venezuela President Hugo Chavez, a staunch ally of Cuba's communist government, vowed to torpedo a final summit communique in protest of the country's exclusion.

But Obama's move this week to ease travel and some other restrictions for Cuban-Americans brought an unprecedented reply from Havana. Raul Castro, who took over from his ailing brother, Fidel, a year ago, offered to talk to the Obama administration about all outstanding grievances.

Speaking from a meeting Chavez hosted in Venezuela, Raul Castro declared: "We have sent word to the U.S. government in private and in public that we are willing to discuss everything — human rights, freedom of the press, political prisoners, everything."

Previously, Cubans had insisted their domestic politics were their own business, and administration officials were trying to determine what to make of the development.

On Tuesday, Obama lifted limits on visits by Americans with relatives in Cuba, eased restrictions on family gifts and cash payments, and moved to allow U.S. telecom companies to expand service to the island.

But the 47-year-old U.S. trade embargo remained in place, despite pleas from U.S. allies that it's counterproductive.

"The embargo has been there long before we were even born," Mexican President Felipe Calderon said. "And yet things have not changed all that much in Cuba."

After talks with Calderon during a pre-summit stop in Mexico, Obama told reporters that further easing depends on Havana sending "signals that they're interested in liberalizing."

He also sounded a note of caution. "A relationship that effectively has been frozen for 50 years is not going to thaw overnight," he said.

Chavez said the summit's final statement and its call for greater democracy reflected American hypocrisy.

"I have no doubt there's more democracy in Cuba," he jeered.

Aides said Obama doesn't plan to meet with Chavez during a summit session, but if the fiery leftist approaches him, Obama would likely engage in polite conversation.

Obama said the gathering, being hosted by the two-island country of Trinidad and Tobago off Venezuela's coast, "offers the opportunity of a new beginning" in the region. And he expected the major focus to be on the global economic crisis, which has America's Latin American neighbors reeling as their prime export markets shut down.

The summit will aim to "jump-start job creation, promote free and fair trade, and develop a coordinated response to this economic crisis," Obama said.

Obama embraces Muslim world

President Barack Obama sought Monday to make American amends with the Islamic world after eight years of tension, declaring in a speech to the Turkish parliament that he is determined to have a “partnership with the Muslim world.”

“Let me say this as clearly as I can: the United States is not – and will never be — at war with Islam,” Obama said in remarks delivered in Ankara. “In fact, our partnership with the Muslim world is critical not just in rolling back the violent ideologies that people of all faiths reject but also to strengthen opportunities for all people.”

Obama’s declaration that the U.S. is not at war with Islam is certain to get huge play throughout the Arab world.

Former President George W. Bush said many times that Islam is a religion of peace. In a 2003 interview with the Arab news network Al Arabiya, he said: “I believe that all the world, whether they be Muslim, Christian, or any other religion, prays to the same God. That's what I believe. I believe that Islam is a great religion that preaches peace.

Obama, seeking to mend strains with a critical ally that bridges Europe and the Middle East, acknowledged “difficulties these last few years.”

Turkey, the only majority Muslim country in NATO, refused use of its territory as an invasion route to Iraq.

“I know that the trust that binds us has been strained, and I know that strain is shared in many places where the Muslim faith is practiced,” Obama said. “Our focus will be on what we can do, in partnership with people across the Muslim world, to advance our common hopes, and our common dreams. And when people look back on this time, let it be said of America that we extended the hand of friendship.

“There is an old Turkish proverb: ‘You cannot put out fire with flames.’ America knows this. Turkey knows this. There are some who must be met with force. But force alone cannot solve our problems, and it is no alternative to extremism. The future must belong to those who create, not those who destroy. That is the future we must work for, and we must work for it together.

The Arab satellite news channels Al Jazeera and Al Arabiyia carried the address live. Here is the full text of the president’s remarks. :

Mr. Speaker, Madam Deputy Speaker, distinguished members, I am honored to speak in this chamber, and I am committed to renewing the alliance between our nations and the friendship between our people.

This is my first trip overseas as President of the United States. I have been to the G-20 Summit in London, the NATO Summit in Strasbourg and Kehl, and the European Union Summit in Prague. Some people have asked me if I chose to continue my travels to Ankara and Istanbul to send a message. My answer is simple: Evet. Turkey is a critical ally. Turkey is an important part of Europe. And Turkey and the United States must stand together – and work together – to overcome the challenges of our time.

This morning I had the privilege of visiting the tomb of the great founder of your Republic. I was deeply impressed by this beautiful memorial to a man who did so much to shape the course of history. But it is also clear that the greatest monument to Ataturk’s life is not something that can be cast in stone and marble. His greatest legacy is Turkey’s strong and secular democracy, and that is the work that this assembly carries on today.

This future was not easily assured. At the end of World War I, Turkey could have succumbed to the foreign powers that were trying to claim its territory, or sought to restore an ancient empire. But Turkey chose a different future. You freed yourself from foreign control. And you founded a Republic that commands the respect of the United States and the wider world.

There is a simple truth to this story: Turkey’s democracy is your own achievement. It was not forced upon you by any outside power, nor did it come without struggle and sacrifice. Like any democracy, Turkey draws strength from both the successes of the past, and from the efforts of each generation of Turks that makes new progress for your people.

My country’s democracy has its own story. The general who led America in revolution and governed as our first President was George Washington. Like you, we built a grand monument to honor our founding father – a towering obelisk that stands in the heart of the capital city that bears Washington’s name.

It took decades to build. There were frequent delays. Over time, more and more people contributed to help make this monument the inspiring structure that still stands tall today. Among those who came to our aid were friends from all across the world, who offered their own tributes to Washington and the country he helped to found.

One of those tributes came from Istanbul. Ottoman Sultan Abdulmecid sent a marble plaque that helped to build the Washington Monument. Inscribed in the plaque was a poem that began with a few simple words, and I quote: “So as to strengthen the friendship between the two countries.” Over 150 years have passed since those words were carved into marble. Our nations have changed in many ways. But our friendship is strong, and our alliance endures.

It is a friendship that flourished in the years after World War II, when President Truman committed our nation to the defense of Turkey’s freedom and sovereignty, and Turkey committed itself to the NATO alliance. Turkish troops have served by our side from Korea to Kosovo to Kabul. Together, we withstood the great test of the Cold War. Trade between our nations has steadily advanced. So has cooperation in science and research.

The ties among our people have deepened as well, and more and more Americans of Turkish origin live and work and succeed within our borders. As a basketball fan, I’ve even noticed that Hedo Turkoglu and Mehmet Okur have got some pretty good game.

The United States and Turkey have not always agreed on every issue. That is to be expected – no two nations do. But we have stood together through many challenges over the last sixty years. And because of the strength of our alliance and the endurance of our friendship, both America and Turkey are stronger, and the world is more secure.

Now, our two democracies are confronted by an unprecedented set of challenges. An economic crisis that recognizes no borders. Extremism that leads to the killing of innocent men, women and children. Strains on our energy supply and a changing climate. The proliferation of the world’s deadliest weapons, and the persistence of tragic conflict.

These are the great tests of our young century. And the choices that we make in the coming years will determine whether the future will be shaped by fear or by freedom; by poverty or by prosperity; by strife or by a just, secure and lasting peace.

This much is certain: no one nation can confront these challenges alone, and all nations have a stake in overcoming them. That is why we must listen to one another, and seek common ground. That is why we must build on our mutual interests, and rise above our differences. We are stronger when we act together. That is the message that I have carried with me throughout this trip to Europe. That will be the approach of the United States of America going forward.

Already, America and Turkey are working with the G-20 on an unprecedented response to an unprecedented economic crisis. This past week, we came together to ensure that the world’s largest economies take strong and coordinated action to stimulate growth and restore the flow of credit; to reject the pressure of protectionism, and to extend a hand to developing countries and the people hit hardest by this downturn; and to dramatically reform our regulatory system so that the world never faces a crisis like this again.

As we go forward, the United States and Turkey can pursue many opportunities to serve prosperity for our people, particularly when it comes to energy. To expand markets and create jobs, we can increase trade and investment between our countries. To develop new sources of energy and combat climate change, we should build on our Clean Technology Fund to leverage efficiency and renewable energy investments in Turkey. And to power markets in Turkey and Europe, the United States will continue to support your central role as an East-West corridor for oil and natural gas.

This economic cooperation only reinforces the common security that Europe and the United States share with Turkey as a NATO ally, and the common values that we share as democracies. So in meeting the challenges of the 21st century, we must seek the strength of a Europe that is truly united, peaceful and free.

Let me be clear: the United States strongly supports Turkey’s bid to become a member of the European Union. We speak not as members of the EU, but as close friends of Turkey and Europe. Turkey has been a resolute ally and a responsible partner in transatlantic and European institutions. And Turkey is bound to Europe by more than bridges over the Bosphorous. Centuries of shared history, culture, and commerce bring you together. Europe gains by diversity of ethnicity, tradition and faith – it is not diminished by it. And Turkish membership would broaden and strengthen Europe’s foundation once more.

Turkey has its own responsibilities. You have made important progress toward membership. But I also know that Turkey has pursued difficult political reforms not simply because it’s good for Europe, but because it is right for Turkey.

In the last several years, you have abolished state-security courts and expanded the right to counsel. You have reformed the penal code, and strengthened laws that govern the freedom of the press and assembly. You lifted bans on teaching and broadcasting Kurdish, and the world noted with respect the important signal sent through a new state Kurdish television station.

These achievements have created new laws that must be implemented, and a momentum that should be sustained. For democracies cannot be static – they must move forward. Freedom of religion and expression lead to a strong and vibrant civil society that only strengthens the state, which is why steps like reopening the Halki Seminary will send such an important signal inside Turkey and beyond. An enduring commitment to the rule of law is the only way to achieve the security that comes from justice for all people. Robust minority rights let societies benefit from the full measure of contributions from all citizens.

I say this as the President of a country that not too long ago made it hard for someone who looks like me to vote. But it is precisely that capacity to change that enriches our countries. Every challenge that we face is more easily met if we tend to our own democratic foundation. This work is never over. That is why, in the United States, we recently ordered the prison at Guantanamo Bay closed, and prohibited – without exception or equivocation – any use of torture.

Another issue that confronts all democracies as they move to the future is how we deal with the past. The United States is still working through some of our own darker periods. Facing the Washington monument that I spoke of is a memorial to Abraham Lincoln, the man who freed those who were enslaved even after Washington led our Revolution. And our country still struggles with the legacy of our past treatment of Native Americans.

Human endeavor is by its nature imperfect. History, unresolved, can be a heavy weight. Each country must work through its past. And reckoning with the past can help us seize a better future. I know there are strong views in this chamber about the terrible events of 1915. While there has been a good deal of commentary about my views, this is really about how the Turkish and Armenian people deal with the past. And the best way forward for the Turkish and Armenian people is a process that works through the past in a way that is honest, open and constructive.

We have already seen historic and courageous steps taken by Turkish and Armenian leaders. These contacts hold out the promise of a new day. An open border would return the Turkish and Armenian people to a peaceful and prosperous coexistence that would serve both of your nations. That is why the United States strongly supports the full normalization of relations between Turkey and Armenia.

It speaks to Turkey’s leadership that you are poised to be the only country in the region to have normal and peaceful relations with all the South Caucusus nations. And to advance that peace, you can play a constructive role in helping to resolve the Nagorno-Karabakh conflict, which has continued for far too long.

Advancing peace also includes the dispute that persists in the eastern Mediterranean. Here, there is cause for hope. The two Cypriot leaders have an opportunity through their commitment to negotiations under the United Nations Good Offices Mission. The United States is willing to offer all the help sought by the parties as they work toward a just and lasting settlement that reunifies Cyprus into a bizonal and bicommunal federation.

These efforts speak to one part of the critical region that surrounds Turkey. And when we consider the challenges before us, on issue after issue, we share common goals.

In the Middle East, we share the goal of a lasting peace between Israel and its neighbors. Let me be clear: the United States strongly supports the goal of two states, Israel and Palestine, living side by side in peace and security. That is a goal shared by Palestinians, Israelis, and people of good will around the world. That is a goal that that the parties agreed to in the Roadmap and at Annapolis. And that is a goal that I will actively pursue as President.

We know that the road ahead will be difficult. Both Israelis and Palestinians must take the steps that are necessary to build confidence. Both must live up to the commitments they have made. Both must overcome longstanding passions and the politics of the moment to make progress toward a secure and lasting peace.

The United States and Turkey can help the Palestinians and Israelis make this journey. Like the United States, Turkey has been a friend and partner in Israel’s quest for security. And like the United States, you seek a future of opportunity and statehood for the Palestinians. Now, we must not give into pessimism and mistrust. We must pursue every opportunity for progress, as you have done by supporting negotiations between Syria and Israel. We must extend a hand to those Palestinians who are in need, while helping them strengthen institutions. And we must reject the use of terror, and recognize that Israel’s security concerns are legitimate.

The peace of the region will also be advanced if Iran forgoes any nuclear weapons ambitions. As I made clear yesterday in Prague, no one is served by the spread of nuclear weapons. This part of the world has known enough violence. It has known enough hatred. It does not need a race for ever-more powerful tools of destruction.

I have made it clear to the people and leaders of the Islamic Republic that the United States seeks engagement based upon mutual interests and mutual respect. We want Iran to play its rightful role in the community of nations, with the economic and political integration that brings prosperity and security. Now, Iran’s leaders must choose whether they will try to build a weapon or build a better future for their people.

Both Turkey and the United States support a secure and united Iraq that does not serve as a safe-haven for terrorists. I know there were differences about whether to go to war. There were differences within my own country as well. But now we must come together as we end this war responsibly, because the future of Iraq is inseparable from the future of the broader region. The United States will remove our combat brigades by the end of next August, while working with the Iraqi government as they take responsibility for security. And we will work with Iraq, Turkey, and all of Iraq’s neighbors, to forge a new dialogue that reconciles differences and advances our common security.

Make no mistake, though: Iraq, Turkey, and the United States face a common threat from terrorism. That includes the al Qaeda terrorists who have sought to drive Iraqis apart and to destroy their country. And that includes the PKK. There is no excuse for terror against any nation. As President, and as a NATO ally, I pledge that you will have our support against the terrorist activities of the PKK. These efforts will be strengthened by the continued work to build ties of cooperation between Turkey, the Iraqi government, and Iraq’s Kurdish leaders, and by your continued efforts to promote education and opportunity for Turkey’s Kurds.

Finally, we share the common goal of denying al Qaeda a safe-haven in Pakistan or Afghanistan. The world has come too far to let this region backslide, and to let al Qaeda terrorists plot further attacks. That is why we are committed to a more focused effort to disrupt, dismantle, and defeat al Qaeda. That is why we are increasing our efforts to train Afghans to sustain their own security, and to reconcile former adversaries. And that is why we are increasing our support for the people of Afghanistan and Pakistan, so that we stand on the side of their security, their opportunity, and the promise of a better life.

Turkey has been a true partner. Your troops were among the first in the International Security Assistance Force. You have sacrificed much in this endeavor. Now, we must achieve our goals together. I appreciate that you have offered to help us train and support Afghan Security Forces, and expand opportunity across the region. Together, we can rise to meet this challenge like we have so many before.
I know there have been difficulties these last few years. I know that the trust that binds us has been strained, and I know that strain is shared in many places where the Muslim faith is practiced. Let me say this as clearly as I can: the United States is not at war with Islam. In fact, our partnership with the Muslim world is critical in rolling back a fringe ideology that people of all faiths reject.

But I also want to be clear that America’s relationship with the Muslim work cannot and will not be based on opposition to al Qaeda. Far from it. We seek broad engagement based upon mutual interests and mutual respect. We will listen carefully, bridge misunderstanding, and seek common ground. We will be respectful, even when we do not agree. And we will convey our deep appreciation for the Islamic faith, which has done so much over so many centuries to shape the world for the better – including my own country. The United States has been enriched by Muslim Americans. Many other Americans have Muslims in their family, or have lived in a Muslim-majority country – I know, because I am one of them.

Above all, we will demonstrate through actions our commitment to a better future. We want to help more children get the education that they need to succeed. We want to promote health care in places where people are vulnerable. We want to expand the trade and investment that can bring prosperity for all people. In the months ahead, I will present specific programs to advance these goals. Our focus will be on what we can do, in partnership with people across the Muslim world, to advance our common hopes, and our common dreams. And when people look back on this time, let it be said of America that we extended the hand of friendship.

There is an old Turkish proverb: “You cannot put out fire with flames.”

America knows this. Turkey knows this. There are some who must be met with force. But force alone cannot solve our problems, and it is no alternative to extremism. The future must belong to those who create, not those who destroy. That is the future we must work for, and we must work for it together.

I know there are those who like to debate Turkey’s future. They see your country at the crossroads of continents, and touched by the currents of history. They know that this has been a place where civilizations meet, and different peoples mingle. And they wonder whether you will be pulled in one direction or another.

Here is what they don’t understand: Turkey’s greatness lies in your ability to be at the center of things. This is not where East and West divide – it is where they come together. In the beauty of your culture. In the richness of your history. In the strength of your democracy. In your hopes for tomorrow.

I am honored to stand here with you – to look forward to the future that we must reach for together – and to reaffirm America’s commitment to our strong and enduring friendship. Thank you.

Madonna to appeal court’s adoption rejection

LILONGWE, Malawi - Wealthy, famous, fabulous at 50 — but not a mother of four.

Pop star extraordinaire Madonna lost a bid Friday to adopt a second child from Malawi, rejected by a judge who said she would not bend the country’s strict residency rules even for a wealthy celebrity.

The decision came as a surprise since Malawi’s child welfare minister came out Thursday in support of the singer’s application to adopt 3-year-old Chifundo “Mercy” James.

North Korea launches rocket, defying world

SEOUL, South Korea - North Korea fired a rocket over Japan on Sunday, defying Washington, Tokyo and other world leaders who suspect the launch was cover for a test of its long-range missile technology. President Barack Obama warned the move would further isolate the communist nation.

Liftoff took place at 11:30 a.m. (6:30 p.m. ET) from the coastal Musudan-ri launch pad in northeastern North Korea, the South Korean and U.S. governments said. The multistage rocket hurtled toward the Pacific, reaching Japanese airspace within seven minutes, but no debris appeared to hit its territory, officials in Tokyo said.

The U.N. Security Council approved an emergency session for Sunday afternoon in New York, following a request from Japan that came just minutes after the launch.

New Law Poses Severe Threat to Afghan Women

WASHINGTON, April 3 (OneWorld.net) - A new law signed by Afghan President Hamid Karzai, but not yet published, would allegedly bar women from leaving their homes, working, going to school, and obtaining medical care without their husbands' permission.

• Afghan women in Kabul. © carpetblogger (flickr)"A new [decree] in Afghanistan seriously curtailing women's rights, even explicitly permitting marital rape, is a 'huge step in the wrong direction,'" said United Nations (UN) human rights chief Navi Pillay this week, calling for the law's repeal.

• "This is another clear indication that the human rights situation in Afghanistan is getting worse, not better," Pillay added. "Respect for women's rights -- and human rights in general -- is of paramount importance to Afghanistan's future security and development."

• U.S. President Barack Obama announced last week a plan to escalate the U.S. military presence in Afghanistan, drawing fire from the international women's rights group MADRE. "This plan is ill-conceived and will jeopardize Afghan lives and the country's stability," stated Vivian Stromberg, the organization's executive director. "The defense of women's rights in Afghanistan will not be achieved by military force but by negotiated agreement that respects the demands of Afghan women."

• The new legislation regarding women's rights pertains to Afghanistan's Shi'a community, which comprises roughly 10 percent of the population and most of whom belong to the Hazara ethnic community. "The new law has the active support of some of the Hazaras' male leadership, although it has been strongly opposed by other Hazaras and Afghan human rights campaigners throughout the country," reports the UN human rights agency (UNHCHR). "There are concerns the law will establish precedents that will adversely affect all Afghan women."

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Afghan Women's Rights may be Severely Restricted by New Law

From: Feminist Majority Foundation

A new Shia family law signed by Afghan President Hamid Karzai sometime last month, but not yet published, would severely restrict women's rights in Afghanistan. Karzai, according to news sources, signed the bill to court the Hazara vote in the upcoming presidential election. The law has not yet been published, but according to The Guardian contains provisions that would restrict women from leaving their homes, working, going to school, or obtaining medical care without their husbands’ permission. The law also includes a provision that women cannot refuse their husbands sex and a provision that grants child custody only to men. Ustad Mohammad Akbari, leader of the Hazara party, told The Guardian that the law gives women the right to refuse sex with their husbands if they are ill or have a "reasonable excuse" and allows women the right to leave their homes without permission in an emergency.

Shinkai Karokhail, a woman MP who worked against the legislation, told The Independent UK that the law "is one of the worst bills passed by the parliament this century….It is totally against women's rights. This law makes women more vulnerable."

The Globe and Mail reported that Secretary of State Hillary Clinton told reporters that the law "is an area of absolute concern for the United States….My message is very clear. Women's rights are a central part of the foreign policy of the Obama administration."

Also yesterday, UN Secretary General Ban Ki Moon addressed the International Conference on Afghanistan at The Hague. Among his remarks, the Secretary General said "we will continue to work to protect human rights, especially for women and girls. Women should be free to work, teach and live without oppression and fear. And children -- especially girls -- must be given the education that will help them build a better future for Afghanistan."

U.S. aims to help firms sidestep bailout rules

The Obama administration is engineering its new bailout initiatives in a way that it believes will allow firms benefiting from the programs to avoid restrictions imposed by Congress, including limits on lavish executive pay, according to government officials.

Administration officials have concluded that this approach is vital for persuading firms to participate in programs funded by the $700 billion financial rescue package.

The administration believes it can sidestep the rules because, in many cases, it has decided not to provide federal aid directly to financial companies, the sources said. Instead, the government has set up special entities that act as middlemen, channeling the bailout funds to the firms and, via this two-step process, stripping away the requirement that the restrictions be imposed, according to officials.

Police: Binghamton victims had multiple gunshots

BINGHAMTON, N.Y. – The police chief of Binghamton, N.Y., says most of the 13 victims at an immigrant center had multiple gunshot wounds.

Police Chief Joseph Zikuski said Saturday that people who knew Jiverly Wong were not surprised by his actions at the American Civic Association.

He says that until last month Wong was taking classes at the center, which helps immigrants assimilate.

He says the gunman felt people were making fun of him for his poor English language skills.

The chief says Wong wore body armor during the attack, indicating he was prepared for a confrontation with police.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

BINGHAMTON, N.Y. (AP) — The police chief of Binghamton, N.Y., says the gunman who killed 13 people at an immigrant community center wore body armor during the attack.

Police Chief Joseph Zikuski said Saturday that the gunman's name was Jiverly Wong and used the name Jiverly Voong as an alias.

Zikuski says the man had a permit for two handguns and wore body armor, indicating he was prepared for a confrontation with police.

Zikuski says that instead he committed suicide at the end of his attack on the American Civic Association.

Obama, NATO leaders cross Franco-German bridge

TRASBOURG, France – President Barack Obama, German Chancellor Angela Merkel and two dozen other NATO leaders walked across a bridge separating Germany and France in a moment of unity Saturday before a summit likely to see disagreements about Afghanistan and the alliance's future.

The leaders met French President Nicolas Sarkozy at the halfway point on the Europa bridge spanning the Rhine river — a symbolic departure from the enmity that once tore apart Europe and a setting aside of current differences, at least for a few minutes.

NATO's ability to succeed in Afghanistan is seen as a crucial test of the power and relevance of a 60-year-old alliance founded to counterbalance the Soviet Union and now fighting a rising insurgency far beyond its borders. Merkel and Sarkozy have enthusiastically endorsed Obama's new Afghan strategy but European leaders and voters remain deeply skeptical about whether more troops can stabilize a country devastated by decades of war.

The European allies have pledged a marginal increase in forces ahead of Afghanistan's national elections in August. The Obama administration has said it cannot shoulder the military burden alone, but it is now pinning its main hopes on more civilian contributions from Europe, particularly police trainers.

At the summit's opening on Friday, Obama promised to repair damaged relations with Europe and asked for support of his new strategy, which has him adding 21,000 U.S. troops to the force of 38,000 struggling against Taliban advances alongside a like number of European, Canadian and non-NATO forces

Sarkozy said at a joint news conference with Obama Friday that France "totally" endorsed and supported America's new strategy, and would contribute with development assistance and more training for police.

After her own talks with the president, Merkel said: "We have a great responsibility here. We want to carry our share of the responsibility militarily, in the area of civil reconstruction and in police training."

The allies were expected to declare in a closing communique that they endorse a united way forward in Afghanistan, with more emphasis on nonmilitary aspects of the struggle.

But Obama said upon his arrival in Strasbourg Friday that Europe should not expect the United States to bear the combat burden alone.

"This is a joint problem," Obama said. "And it requires a joint effort."

Snow may hamper search for missing Neb. family

SILVER CITY, S.D. – Authorities say they're not sure whether Friday's weather will permit
them to resume searching the rugged Black Hills of South Dakota for a family of four not
seen since a sheriff's deputy interviewed them two weeks ago about allegations of abuse.

Authorities said the Schade family could ride out the expected snowstorm by taking shelter
in one of the many abandoned mining tunnels through the area and hunt for their food.
Matthew Schade, 26, has attended a survival camp in the same area for years.

The family's car was found Tuesday and authorities searched Thursday for Matthew Schade,
his wife Rowena and their children, Devon, 11, and Sean, 8, in the rugged terrain near
the Pactola Reservoir and the village of Silver City.

The search was scaled back to about a dozen people, down from 25, after Matthew Schade told
his father by phone Thursday that the family was fine and wished to be left alone.
The search stopped entirely at nightfall because it became too difficult to navigate the
loose rock and melting snow nearly 5,000 feet in elevation.

There are few level spots in dense forest to pitch a tent, but the steep terrain is sprinkled
with abandoned mine tunnels that would make a warm, safe place for the family to wait
out the storm, sheriffs Lt. Jay Evenson said. There are deer and mountain lions that could
be hunted for food.

Because of the snow forecast for Friday, Evenson said he didn't know whether the search
would resume.

The family was last seen March 20 at its home 400 miles away in Creighton, Neb.
All four were interviewed that day by a Knox County deputy sheriff about allegations
of abuse, according to statements from Nebraska and South Dakota law enforcement agencies.

The deputy "made an offer of help and counseling. No arrests were made and no injuries
were observed," Knox County Sheriff Jim Janecek said in a release. He did not comment
further.

Matthew Schade is on probation in Nebraska for burglary, and an arrest warrant was issued
after he failed to notify a probation officer of his whereabouts, the statement said.
Rowena Schade, 29, was also on probation but authorities did say why.

Investigators said the Schades, who spent their honeymoon in the Black Hills, had talked
about relocating. It also appeared they left the house in a hurry with more than $1,000
worth of "camping survival type gear" they had recently purchased.

"We believe their intention is not to be found so we have to structure our search teams
differently to make sure we have law enforcement on them. It's pretty rugged terrain in
there," Maj. Brian Mueller of the Pennington County Sheriff's office told The Associated
Press.

For six straight years, Matthew Schade attended a survival camp in the search area through
his church and "expressed he would like to live like a hermit in the mountains," Mueller
said in news release.

Geithner on economy: 'Progress is going to be uneven'

(CNN) -- CNN's Anderson Cooper spoke Thursday with Treasury Secretary Timothy Geithner at the G-20 economic summit in London, England.

Treasury Secretary Timothy Geithner (left) sits with President Barack Obama Thursday at the G20 summit.

Geithner discussed whether the United States bears some responsibility with the global economic woes, possibility of a global regulator and how to create a stronger financial system.

The following is an edited version of the interview.

Cooper: European papers have called this the most important economic summit since World War II. What have you actually accomplished, though? What new concrete steps?

Geithner: The most important thing, again, is to get the leaders of the world -- these countries represent 85 percent of global output -- to stand together and say, we're going to act together to do what's necessary to bring this recovery back on track, and we're going to act now to start to lay the foundation for a stronger financial system in the future, a more stable system that does a better job of protecting our economies.

Cooper: But there has been a lot of finger-pointing to the U.S. Does the U.S. have anything to apologize for in terms of creating this financial crisis?

Geithner: No, I believe the U.S. bears some responsibility for this, but responsibility goes around.

I think all countries were sort of overwhelmed by the force of global capital flows. Our challenge now, though, is to make sure we're moving with the rest of the world to pull the world towards higher standards. We want us to see a race to the top, rather than a race to the bottom.

We need them to come with us if we're going to be effective in strengthening our system.

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Cooper: There have been real disagreements, most notably, France and Germany. President Obama, you, yourself, wanted them to spend more, fiscal spending, to stimulate their economies. They were unwilling to do that.

Geithner: No, I wouldn't say it that way. You know, these are the way summits work. People come with their own different interests and priorities. But the president came with a strong agenda, very, very broad support for that agenda. You will see very, very strong support for his priorities and his agenda, and the world really was with him on this.

Cooper: A lot of people in the U.S. raised their eyebrows when they heard France's president talking about a global regulator who would actually be able to cross borders, reach into the U.S. economy, deal directly with the U.S. financial markets.

Geithner: That's not going to happen, and there was really no support around the room for that.

Cooper: He said that was nonnegotiable.

Geithner: The markets are global, but regulation is still the sovereign responsibility of governments.

Cooper: There are a lot of folks wondering. Bottom line, they're wondering when is this thing going to be over? When is the bottom going to come?