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Friday, June 29, 2012 12:15 AM PDT

Today's Reuters News Headlines - Yahoo! News: Supreme Court upholds Obama's healthcare law UK banks face new scandal; Barclays boss in peril Colorado fire claims first victim, ranks as state's most destructive House finds Attorney General Holder in contempt Blast hits Damascus, Turkey sends troops to border Euro area agrees bond support for Italy, Spain Stockton, California files for bankruptcy United Technologies sent military copter tech to China Weak first quarter growth bodes ill for economic outlook News Corp split sets stage for possible Lachlan return Analysis: After healthcare victory in court, new challenges for Obama Top court upholds healthcare law in Obama triumph U.S. grants Iran sanctions exceptions to China Romney to campaign as only hope against "Obamacare" Battle over Spain, Italy rescue erupts at EU summit Colorado Springs fire ranks as state's most destructive on record China starts "combat ready" patrols in disputed seas Obama hears health law overturned; moments later, thumbs-up Speaker Boehner renews vow to try to repeal Obama health law Jobless claims fall last week, but still high Analysis: Republicans vow to take Holder to court Exclusive: Iran grain barter deals crash; considers big buys Exclusive: Saudi readies oil line to counter Iran Hormuz threat California governor signs budget, closing deficit Rights group says Apple suppliers in China breaking labor laws Germany denies report on changed euro bond stance Analysis: Basque economy has lessons for Spain Stockton, California, to file for bankruptcy News Corp board approves company split: source Former storm Debby churns away from sodden Florida Bernard Madoff's brother to plead guilty, U.S. says Merkel to face down summit pleas for crisis action Pena Nieto wraps up campaign with victory near U.S. leaders see fallout if joint missile funds nixed FDA OKs first obesity drug in 13 years Rebels storm Pro-Assad Syrian TV channel Google goes up against Amazon, Apple with Nexus tablet Colorado wildfire expands viciously, Obama plans visit Egypt's Islamist president-elect seeks wide support Holder faces House contempt vote on gun probe Supreme Court upholds Obama's healthcare law Thu,28 Jun 2012 07:56 PM PDT Reuters - WASHINGTON (Reuters) - The Supreme Court upheld President Barack Obama's healthcare law on Thursday in an election-year triumph for him and fellow Democrats who championed the most sweeping overhaul since the 1960s of the unwieldy U.S. healthcare system. In a 5-4 ruling based on the power of Congress to impose taxes, the nation's highest court preserved the law's "individual mandate" requiring that most Americans obtain health insurance by 2014 or pay a tax. The justices also preserved, with some changes, a provision of the law expanding the Medicaid health insurance program for the poor. ... Full Story Top UK banks face new scandal; Barclays boss in peril Thu,28 Jun 2012 07:27 PM PDT Reuters - LONDON (Reuters) - Britain will expose on Friday a second scandal involving the country's banks in as many days, as Barclays boss Bob Diamond clings to his job after regulators slapped a record fine on the lender for rigging interest rates. The Financial Services Authority will announce it has found evidence that banks mis-sold products to protect small businesses against a rise in interest rates, a person familiar with the matter said. ... Full Story Top Colorado fire claims first victim, ranks as state's most destructive Thu,28 Jun 2012 10:36 PM PDT Reuters - COLORADO SPRINGS, Colo. (Reuters) - A fierce wildfire that forced the evacuation of 35,000 people at the edge of Colorado's second-most populous city has killed at least one person and incinerated 346 homes, ranking it as the most destructive blaze in state history, authorities said on Thursday. The grim news came as lighter winds helped firefighters battling to contain the inferno, which unleashed its greatest fury when it suddenly roared unchecked on Tuesday night through residential neighborhoods in the northwestern corner of Colorado Springs and nibbled at the fringe of the U.S. ... Full Story Top House finds Attorney General Holder in contempt Thu,28 Jun 2012 03:11 PM PDT Reuters - WASHINGTON (Reuters) - Attorney General Eric Holder was found in contempt of Congress on Thursday as the Republican-controlled House of Representatives sanctioned the nation's top law enforcement official for withholding some documents related to a failed gun-running probe. The mostly partisan vote of 255-67 marked the first time a sitting attorney general and presidential Cabinet member was cited for contempt by the full House. No Senate vote is necessary in this House contempt citation. ... Full Story Top Blast hits Damascus, Turkey sends troops to border Thu,28 Jun 2012 04:14 PM PDT Reuters - BEIRUT/ISKENDERUN, Turkey (Reuters) - Rebel forces attacked Syria's main court in central Damascus on Thursday, state television said, while Turkey deployed troops and anti-aircraft rocket launchers to the Syrian border, building pressure on President Bashar al-Assad. A loud explosion echoed through the streets and a column of black smoke rose over Damascus, an Assad stronghold that until the last few days had seemed largely beyond the reach of rebels. State television described it as a "terrorist" blast. Dozens of wrecked and burning cars were strewn over a car park used by lawyers and ... Full Story Top Euro area agrees bond support for Italy, Spain Thu,28 Jun 2012 09:03 PM PDT Reuters - BRUSSELS (Reuters) - Euro zone leaders agreed on Friday to take emergency action to bring down Italy's and Spain's spiraling borrowing costs and to create a single supervisory body for euro zone banks by the end of this year, a first step towards a European banking union. Responding to pleas from Spanish and Italian leaders, a midnight summit of the 17-nation currency area agreed that euro area rescue funds could be used to stabilize bond markets without forcing countries that comply with EU budget rules to adopt extra austerity measures or economic reforms. ... Full Story Top Stockton, California files for bankruptcy Thu,28 Jun 2012 08:49 PM PDT Reuters - SAN FRANCISCO (Reuters) - Stockton, California, became the largest city to file for bankruptcy in U.S. history on Thursday after years of fiscal mismanagement and a housing market crash left it unable to pay its workers, pensioners and bondholders. The filing by the city of 300,000 people followed three months of confidential talks with its creditors aimed at averting bankruptcy. "We are now a Chapter 9 debtor," Marc Levinson, the lawyer who filed the city's voluntary petition in the Eastern District of California, in Sacramento (Case 12-32118) told Reuters. ... Full Story Top United Technologies sent military copter tech to China Thu,28 Jun 2012 09:07 PM PDT Reuters - WASHINGTON (Reuters) - United Technologies Corp on Thursday admitted selling China software that helped Beijing develop its first modern military attack helicopter, one of hundreds of export control violations over nearly two decades. At a federal court hearing in Bridgeport, Connecticut, United Technologies and its two subsidiaries, Pratt & Whitney Canada and Hamilton Sundstrand Corp, agreed to pay more than $75 million to the U.S. government to settle criminal and administrative charges related to the violations. ... Full Story Top Weak first quarter growth bodes ill for economic outlook Thu,28 Jun 2012 09:55 AM PDT Reuters - WASHINGTON (Reuters) - The U.S. economy grew only modestly in the first quarter, the government confirmed on Thursday in a report that underscored the economy's vulnerability as global growth slows. Gross domestic product rose at a 1.9 percent annual rate, with motor vehicle output accounting for more than half the gain, the Commerce Department said. The growth pace, which was unchanged from a prior reading, marked a sharp step down from the fourth quarter's 3 percent advance. Auto production contributed 1.16 percentage points to GDP growth, reflecting pent-up demand that has since waned. ... Full Story Top News Corp split sets stage for possible Lachlan return Thu,28 Jun 2012 02:46 PM PDT Reuters - (Reuters) - Rupert Murdoch's decision to become chief executive of a new, separate entertainment company split off from News Corp but not to head the new publishing business sparked speculation he was setting the stage for the return of his eldest son Lachlan as an executive at the company. News Corp said on Thursday that its board had approved a plan for the $60 billion media conglomerate to be split into two publicly traded companies, publishing and entertainment, with the Murdoch family retaining control of both. ... Full Story Top Analysis: After healthcare victory in court, new challenges for Obama Thu,28 Jun 2012 04:25 PM PDT Reuters - WASHINGTON (Reuters) - As Democrats celebrated the U.S. Supreme Court's ruling on Thursday that saved President Barack Obama's sweeping healthcare overhaul, the mood inside the White House was a subdued satisfaction. There were hugs and handshakes after Obama learned of the ruling from White House counsel Kathy Ruemmler, but also a realization: Thursday's victory in court could energize Republicans who oppose the law and leave Obama with a tougher fight for a second four-year term in the White House. ... Full Story Top Top court upholds healthcare law in Obama triumph Thu,28 Jun 2012 02:35 PM PDT Reuters - WASHINGTON (Reuters) - The Supreme Court upheld President Barack Obama's healthcare law on Thursday in an election-year triumph for him and fellow Democrats who championed the most sweeping overhaul since the 1960s of the unwieldy U.S. healthcare system. In a 5-4 ruling based on the power of Congress to impose taxes, the nation's highest court preserved the law's "individual mandate" requiring that most Americans obtain health insurance by 2014 or pay a tax. The justices also preserved, with some changes, a provision of the law expanding the Medicaid health insurance program for the poor. ... Full Story Top U.S. grants Iran sanctions exceptions to China Thu,28 Jun 2012 02:47 PM PDT Reuters - WASHINGTON (Reuters) - The United States gave China a six-month reprieve from Iran financial sanctions on Thursday, avoiding a diplomatic spat with a country whose support it needs to try to quell violence in Syria and rein in Tehran's nuclear ambitions. With Thursday's decision to grant exceptions to China, which buys up to a fifth of Iran's oil exports, and Singapore, which buys Iranian fuel oil, the Obama administration has now spared all 20 of Iran's major oil buyers from its unilateral sanctions. ... Full Story Top Romney to campaign as only hope against "Obamacare" Thu,28 Jun 2012 03:44 PM PDT Reuters - WASHINGTON (Reuters) - The battle over President Barack Obama's landmark healthcare law shifted from the Supreme Court to the campaign trail on Thursday, as Republican challenger Mitt Romney asked voters to throw Obama out of office to get rid of the unpopular law. The high court's 5-4 decision to uphold the law was a setback for Romney and his fellow Republicans, who had hoped that Obama's central policy achievement would be struck down as unconstitutional. But the overhaul remains unpopular, and Romney cast the November 6 presidential election as the best chance for voters to overturn it. ... Full Story Top Battle over Spain, Italy rescue erupts at EU summit Thu,28 Jun 2012 03:16 PM PDT Reuters - BRUSSELS (Reuters) - Italy and Spain, battling searing market pressure in the euro zone's widening debt crisis, held up agreement on measures to promote growth at a European Union summit on Thursday to demand urgent action to bring down their borrowing costs. Italian Prime Minister Mario Monti and his Spanish counterpart, Mariano Rajoy, refused to sign off on a 120 billion euro ($149 billion) growth package until EU paymaster Germany approved short-term measures to ease their cost of credit, officials said. ... Full Story Top Colorado Springs fire ranks as state's most destructive on record Thu,28 Jun 2012 04:12 PM PDT Reuters - COLORADO SPRINGS, Colo. (Reuters) - A fierce Colorado wildfire that has forced the evacuation of some 35,000 people while raging for six days at the edge of the state's second-most populous city has destroyed 346 homes, Mayor Steve Bach said on Thursday, citing preliminary damage reports. If those figures hold up, the tally of lost homes in and around Colorado Springs would make the so-called Waldo Canyon Fire the state's most destructive on record, surpassing the 257 homes consumed in recent weeks by a much larger blaze north of Denver near Fort Collins. ... Full Story Top China starts "combat ready" patrols in disputed seas Thu,28 Jun 2012 06:03 AM PDT Reuters - BEIJING (Reuters) - China has begun combat-ready patrols in the waters around a disputed group of islands in the South China Sea, the Defence Ministry said on Thursday, the latest escalation in tension over the potentially resource-rich area. Asked about what China would do in response to Vietnamese air patrols over the Spratly Islands, the ministry's spokesman, Geng Yansheng, said China would "resolutely oppose any militarily provocative behavior". ... Full Story Top Obama hears health law overturned; moments later, thumbs-up Thu,28 Jun 2012 04:21 PM PDT Reuters - WASHINGTON (Reuters) - President Barack Obama was standing outside the Oval Office when he saw the news on television just after 10 a.m. Two networks, CNN and Fox News, were reporting the Supreme Court had struck down the centerpiece of his landmark healthcare law. He looked quizzically at the TV screen. Moments later, his face brightened. White House Counsel Kathryn Ruemmler walked in and flashed him two thumbs-up. The court had in fact upheld the Patient Protection and Affordable Care Act. The TV networks had reported it wrong. ... Full Story Top Speaker Boehner renews vow to try to repeal Obama health law Thu,28 Jun 2012 07:51 AM PDT Reuters - WASHINGTON (Reuters) - House of Representatives Speaker John Boehner on Thursday renewed his vow to try to repeal President Barack Obama's healthcare law after a divided Supreme Court key parts of it. "Today's ruling underscores the urgency of repealing this harmful law in its entirety," Boehner said in a statement just minutes after the court released its ruling. Boehner's Republican-led House will likely vote to repeal the measure, but Obama's fellow Democrats in the Senate are certain to block it. (Reporting By Donna Smith) Full Story Top Jobless claims fall last week, but still high Thu,28 Jun 2012 05:46 AM PDT Reuters - WASHINGTON (Reuters) - The number of Americans filing new claims for unemployment benefits fell last week, government data showed on Thursday, but remained too high to signal any major improvement in the labor market. Initial claims for state unemployment benefits fell 6,000 to a seasonally adjusted 386,000, the Labor Department said. The prior week's figure was revised up to 392,000 from the previously reported 387,000. Economists polled by Reuters had forecast claims easing to 385,000 last week. ... Full Story Top Analysis: Republicans vow to take Holder to court Thu,28 Jun 2012 03:33 PM PDT Reuters - WASHINGTON (Reuters) - Perhaps as significant as the contempt citation Congress issued to Attorney General Eric Holder is the likelihood Republicans will also go to court to enforce a congressional demand for documents - a tactic pursued only twice before in U.S. history. The Republican-led House of Representatives voted on Thursday to find Holder, the country's top law enforcement officer, in contempt of Congress for withholding documents in a botched gun-running sting operation on the U.S.-Mexico border. ... Full Story Top Exclusive: Iran grain barter deals crash; considers big buys Thu,28 Jun 2012 08:52 AM PDT Reuters - LONDON/ISLAMABAD (Reuters) - Iran's attempts to secure millions of tons of wheat via sanction-beating barter deals with India and Pakistan are failing, and Tehran is poised to pay premium prices on international markets to secure food and stave off unrest. Food is not targeted under Western sanctions aimed at deterring Iran's nuclear program, but in recent months it has paid high prices for grain to work around a freeze on financial transactions due to the measures. ... Full Story Top Exclusive: Saudi readies oil line to counter Iran Hormuz threat Thu,28 Jun 2012 12:37 PM PDT Reuters - DUBAI (Reuters) - Saudi Arabia has reopened an old oil pipeline built by Iraq to bypass Gulf shipping lanes, giving Riyadh scope to export more of its crude from Red Sea terminals should Iran try to block the Strait of Hormuz, industry sources told Reuters. Riyadh took the step as international pressure grows on Iran to curb a nuclear program that Western powers say has a covert military purpose. A European Union embargo on buying Iranian oil takes full effect on Sunday, cutting Tehran's income. ... Full Story Top California governor signs budget, closing deficit Thu,28 Jun 2012 03:30 AM PDT Reuters - SAN FRANCISCO (Reuters) - California Governor Jerry Brown on Wednesday signed a state budget passed hours earlier by lawmakers for the fiscal year beginning on July 1 that closes a $15.7 billion deficit. The legislation, which leaves California with a reserve of more than $800 million, puts into law a budget deal reached last week by Brown and fellow Democrats who control the state legislature. The two sides had fought over how much spending to cut from welfare programs and changes to the state's welfare system, but they managed to work out a compromise. ... Full Story Top Rights group says Apple suppliers in China breaking labor laws Thu,28 Jun 2012 05:01 AM PDT Reuters - HONG KONG (Reuters) - Apple Inc's suppliers in China have violated local labor laws when they imposed excessive overtime and skimped on insurance, a New York-based labor rights group said. Apple and its suppliers such as Taiwanese tycoon Terry Gou's Foxconn Technology Group have been the target of labor rights groups, which say the world's most valuable technology company are making iPhones and iPads in massive sweat shops. ... Full Story Top Germany denies report on changed euro bond stance Thu,28 Jun 2012 05:13 AM PDT Reuters - BERLIN (Reuters) - Germany's finance ministry denied a report on Thursday that suggested it had modified its opposition to euro bonds and reaffirmed its long-held view that they could only come at the end of a process towards fiscal union. Earlier the Wall Street Journal quoted Finance Minister Wolfgang Schaeuble as saying in an interview published on its website that Germany may be willing to move sooner than expected to accept shared liability of euro zone debt. Asked to comment on the reported comments, ministry spokesman Martin Kotthaus said: "This is not true. ... Full Story Top Analysis: Basque economy has lessons for Spain Thu,28 Jun 2012 04:37 AM PDT Reuters - MONDRAGON, Spain (Reuters) - Spain's dash into tourism in the 1970s and its property boom last decade largely passed by the Basque region, a cool, damp corner of the north with a reputation for separatist violence. Instead the Basques stuck with industry, by force of circumstance. Euskadi, the Basque name for the hilly province of 2 million bordering France, now outshines the rest of Spain with a better credit rating than central government, the lowest regional unemployment and borrowing costs half those of other areas. ... Full Story Top Stockton, California, to file for bankruptcy Wed,27 Jun 2012 08:27 PM PDT Reuters - STOCKTON, California (Reuters) - Stockton, California, is expected to file for bankruptcy before the end of the week, becoming the largest U.S. city to seek protection from its creditors. No one in the city of nearly 300,000 is relishing the prospect, though some see no choice. Stockton, which boomed a decade ago with workers from the San Francisco Bay area seeking affordable housing, is the most recent casualty of the housing bust of the past few years. ... Full Story Top News Corp board approves company split: source Wed,27 Jun 2012 09:49 PM PDT Reuters - (Reuters) - The board of News Corp approved in principle splitting the $60 billion media conglomerate into separate publishing and entertainment businesses, a person familiar with the situation said on Thursday. News Corp's board, overseen by 81-year-old chairman Rupert Murdoch, met on Wednesday and an announcement was expected later on Thursday on the decision to create two publicly traded companies, the source said, confirming a report in the Wall Street Journal. ... Full Story Top Former storm Debby churns away from sodden Florida Wed,27 Jun 2012 02:04 PM PDT Reuters - TALLAHASSEE, Florida (Reuters) - The remnants of Tropical Storm Debby moved out into the open Atlantic on Wednesday and rains finally eased over Florida but the state was struggling to clean up the soggy mess left behind. In Debby's wake were flooded homes and businesses, roads under water or cratered with sinkholes, and overflowing rivers that sent thousands fleeing for higher ground. Emergency managers said it was too early to gauge the extent of the damage. About 11,000 customers were without electric power in 39 counties on Wednesday, down from 29,000 on Tuesday. ... Full Story Top Bernard Madoff's brother to plead guilty, U.S. says Wed,27 Jun 2012 03:25 PM PDT Reuters - (Reuters) - Peter Madoff, the brother of imprisoned swindler Bernard Madoff, is expected to plead guilty to criminal charges on Friday, the first family member to do so since the Ponzi schemer's fraud was uncovered in December 2008. In a letter filed Wednesday in Manhattan federal court, U.S. Attorney Preet Bharara said Peter Madoff is expected to plead guilty to charges of conspiracy to commit securities fraud and other crimes, as well as falsifying records. He agreed not to seek a sentence other than 10 years in prison. Madoff, who had been chief compliance officer at Bernard L. ... Full Story Top Merkel to face down summit pleas for crisis action Wed,27 Jun 2012 03:36 PM PDT Reuters - BRUSSELS (Reuters) - German Chancellor Angela Merkel will pit herself against France and Italy on Thursday at an EU summit that could shape the euro zone's future, insisting they must put the bloc's fundamental problems ahead of pleas for emergency action. European Union leaders go into the two-day meeting in Brussels more openly divided than at any time since the debt crisis erupted in Greece in 2010 and spread over the euro zone. ... Full Story Top Pena Nieto wraps up campaign with victory near Wed,27 Jun 2012 08:01 PM PDT Reuters - MONTERREY, Mexico (Reuters) - Mexico's presidential front-runner Enrique Pena Nieto scented victory as he wrapped up his campaign on Wednesday with polls showing he should easily win Sunday's election and put the country's old rulers back in power. Voters elect a new president on Sunday and many are eager for the next government to end rampant violence by drug gangs and fire up an underperforming economy, sore points that have eroded confidence in the ruling National Action Party, or PAN. ... Full Story Top U.S. leaders see fallout if joint missile funds nixed Wed,27 Jun 2012 07:20 PM PDT Reuters - WASHINGTON (Reuters) - Defense Secretary Leon Panetta and his top weapons buyer warned U.S. lawmakers that failure to fund the final year of development work on a joint ground-based missile defense program with Italy and Germany could have serious diplomatic and financial consequences. Panetta urged Senator Daniel Inouye, the chairman of Senate Appropriations Committee, to support $400.9 million in a final year of funding for the Medium Extended Air and Missile Defense System (MEADS) built by Lockheed Martin Corp and its partners in Italy and Germany. ... Full Story Top FDA OKs first obesity drug in 13 years Wed,27 Jun 2012 02:08 PM PDT Reuters - NEW YORK/WASHINGTON (Reuters) - U.S. health regulators approved the first new weight-loss drug in 13 years, allowing Arena Pharmaceuticals Inc to bring its Belviq pill to market as public health advocates push for new solutions to the nation's growing obesity epidemic. The Food and Drug Administration, knowing that millions of Americans would be tempted to take weight-loss pills, had set an unusually high bar for approvals because of safety problems and even deaths seen with past medicines. The most notorious, known as the "fen-phen" diet-drug combo, was pulled from the market in 1997. ... Full Story Top Rebels storm Pro-Assad Syrian TV channel Wed,27 Jun 2012 03:13 PM PDT Reuters - BEIRUT (Reuters) - Gunmen stormed a pro-government Syrian TV channel headquarters on Wednesday, bombing buildings and shooting dead three employees, state media said, in one of the boldest attacks yet on a symbol of the authoritarian state. More than 150 people were killed in fierce fighting across Syria on Wednesday, 86 of them civilians, the Syrian Observatory for Human Rights said. Intensified fighting in the country have driven up the death toll averages to around 100 people per day in the past week. President Bashar al-Assad declared late on Tuesday that his country was "at war". U.S. ... Full Story Top Google goes up against Amazon, Apple with Nexus tablet Wed,27 Jun 2012 04:53 PM PDT Reuters - SAN FRANCISCO (Reuters) - Google Inc will sell its first tablet from mid-July for $199, hoping to replicate its smartphone success in a hotly contested market now dominated by Amazon.com Inc's Kindle Fire and Apple Inc's iPad. By taking a greater role in the tablet market, Google hopes to ensure that its various online services remain front-and-center to consumers amid a changing technology landscape in which tablets by Apple and Amazon are increasingly becoming gateways to the Web and Web-based content such as movies and music. ... Full Story Top Colorado wildfire expands viciously, Obama plans visit Wed,27 Jun 2012 02:44 PM PDT Reuters - COLORADO SPRINGS, Colo. (Reuters) - Firefighters struggled on Wednesday to beat back a wildfire raging at the edge of Colorado Springs that doubled in size overnight, forced more than 32,000 people from their homes and was nipping at the edges of the U.S. Air Force Academy. The blaze, fanned by hot winds, has charred a number of homes on the wooded edges of the city and was prompting fresh evacuations on Wednesday. President Barack Obama plans to travel to the area on Friday to view the damage. ... Full Story Top Egypt's Islamist president-elect seeks wide support Wed,27 Jun 2012 12:35 PM PDT Reuters - CAIRO (Reuters) - Islamist President-elect Mohamed Mursi began talks on Wednesday with groups nervous about where he will take Egypt after the generals who have ruled since Hosni Mubarak's fall make way for the republic's first civilian leader. U.S. Secretary of State Hillary Clinton urged Mursi to bring diverse groups into his government, mentioning Egypt's Coptic Christian minority, secular-minded Egyptians and young people. The U.S. ... Full Story Top Holder faces House contempt vote on gun probe Wed,27 Jun 2012 03:43 PM PDT Reuters - WASHINGTON (Reuters) - U.S. Attorney General Eric Holder faces a contempt vote by the House of Representatives on Thursday in a dispute involving a botched gun-running probe, and the chamber's top Democrat, Nancy Pelosi, said some in her party may line up with Republicans against him. The Republican-led House is to vote on whether to charge the nation's top law enforcement officer with contempt of Congress related to his withholding of documents in a gun-running sting operation on the U.S.-Mexico border code named "Fast and Furious. ... Full Story Top

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