Football: Transfer talks stall for AC Milan's Robinho






MILAN: AC Milan's bid to sell Robinho to Brazilian top flight side Santos floundered early on Saturday after the clubs failed to agree on a transfer fee, it was reported.

Milan have slapped a 10m-euro price tag on the talented Brazilian while Santos offered only seven million, according to ANSA news agency.

ANSA also reported that another Brazilian side that had shown an interest in purchasing Robinho, Atletico Mineiro, had now called off talks.

Citing Brazilian newspaper Folha de Sao Paulo, it said Atletico could not meet Milan's 10m euro asking price nor Robinho's wage demands.

Milan's former Brazilian striker Alexandre Pato on Thursday joined Brazilian side Corinthians in a four-year deal thought to be worth 15 million euros.

The Serie A giants sit seventh in Serie A, 17 points adrift of leaders Juventus, ahead of the visit of Siena on Sunday.

- AFP/xq



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Armstrong's lawyer: No mea culpa talks









By Jillian Martin and Chelsea J. Carter


updated 2:48 AM EST, Sat January 5, 2013









STORY HIGHLIGHTS


  • The New York Times report cites unnamed associates and doping officials in its report

  • Cyclist's lawyer says his client was not in discussion with U.S. or world anti-doping agencies

  • Armstrong was stripped of his seven Tour de France titles and banned for life

  • Cyclist has repeatedly denied using banned performance-enhancing drugs




(CNN) -- Lance Armstrong's attorney denied his client was in discussion with the U.S. or world anti-doping agencies following a report by The New York Times that the disgraced cycling icon was contemplating publicly admitting he used illegal performance-enhancing drugs.


Attorney Tim Herman in an email to CNN Sports late Friday did not address whether Armstrong told associates -- as reported by the newspaper -- that he was considering the admission as a way to restore his athletic eligibility.


Armstrong was stripped of his seven Tour de France titles and banned for life last year after the U.S. Anti-Doping Agency found there was overwhelming evidence that he was directly involved in a sophisticated doping program.









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Disgraced cyclist Lance Armstrong is the subject of annual Bonfire Night celebrations in the British town of Edenbridge. An effigy of Armstrong will be burned during the celebrations, which mark the foiling of Guy Fawkes' "gunpowder plot" to blow up the Houses of Parliament and kill King James I in 1605. The Edenbridge Bonfire Soceity has gained a reputation for using celebrity "Guys," including Tony Blair, Jacques Chirac and Saddam Hussein.






Up in flames



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Armstrong has repeatedly and vehemently denied that he used banned performance-enhancing drugs as well as illegal blood transfusions during his cycling career.


In the past, Armstrong has argued that he took more than 500 drug tests and never failed. In its 202-page report that detailed Armstrong's alleged use of performance-enhancing drugs and blood transfusions, the USADA said it had tested Armstrong less than 60 times and the International Cycling Union conducted about 215 tests.


The agency did not say that Armstrong ever failed a test, but his former teammates testified as to how they beat tests or avoided the tests altogether.


The New York Times, citing unnamed associates and anti-doping officials, said Armstrong has been in discussions with USADA officials and hopes to meet with David Howman chief of the World Anti-Doping Agency. The newspaper said none of the people with knowledge of Armstrong's situation wanted to be identified because it would jeopardize their access to information on the matter.


Under World Anti-Doping Agency rules, an athlete who confesses to using performance-enhancing drugs may be eligible for a reinstatement.


Armstrong has been an icon for his cycling feats and celebrity, bringing more status to a sport wildly popular in some nations but lacking big-name recognition, big money and mass appeal in the United States.


He fought back from testicular cancer to win the Tour from 1999 to 2005. He raised millions via his Lance Armstrong Foundation to help cancer victims and survivors, an effort illustrated by trendy yellow "LiveSTRONG" wristbands that helped bring in the money.


The cyclist's one-time high-profile relationship with singer Sheryl Crow also kept him in the public eye.


But Armstrong has long been dogged by doping allegations, with compatriot Floyd Landis -- who was stripped of his 2006 Tour de France title after failing a drug test -- making a series of claims in 2011.


Armstrong sued the U.S. Anti-Doping Agency last year to stop its investigation of him, arguing it did not have the right to prosecute him. But after a federal judge dismissed the case, Armstrong said he would no longer participate in the investigation.


In October 2012, Armstrong was stripped of his titles and banned. Weeks later, he stepped down from the board of his foundation, Livestrong.


It is unclear whether Armstrong would face criminal prosecution for perjury should he confess. Armstrong was involved in several cases where he gave sworn testimony that he never used banned drugs.


Armstrong and his publicist did not immediately respond to a CNN requests late Friday and early Saturday for comment on The New York Times report.









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Tsunami warning canceled for Alaska, Canada

JUNEAU, Alaska A powerful earthquake sparked a tsunami warning for hundreds of miles of Alaskan and Canadian coastline, but the alert was canceled when no damaging waves were generated.



The magnitude 7.5 quake did generate a tsunami, but the Alaska Tsunami Warning Center said the waves didn't pose a threat.



The temblor struck at midnight Friday (1 a.m. PST Saturday) and was centered about 60 miles west of Craig, Alaska, the U.S. Geological Survey said.



The tsunami followed minutes later and was eventually expanded to include coastal areas from Cape Fairweather, Alaska, to the northern tip of Vancouver Island, Canada — an area extending more than 700 miles.



A center had warned that "significant widespread inundation of land is expected," adding that dangerous coastal flooding was possible.



In its cancellation statement, the center said that some areas were seeing just small sea level changes.



"A tsunami was generated during this event but no longer poses a threat," the center said.



After one community reported seeing just a small wave, the police in the coastal town of Cordova said they had no reports of any problems.



The Alaska Earthquake Information Center said the quake was widely felt but it received no reports of any damage.



In addition to the warning, a tsunami advisory was briefly in effect for some Alaska coastal areas to the north of the warning zone, as well as to the south of the zone, from the Washington state border to the northern tip of Vancouver Island.



A tsunami warning means an area is likely to be hit by a wave, while an advisory means there may be strong currents, but that widespread inundation is not expected to occur.

Read More..

Myanmar: Evolution, not revolution




Tourists walk around the Shwedagon Pagoda in Yangon in April. The tourism industry is set for expansion.




STORY HIGHLIGHTS


  • Myanmar is undergoing incremental change, welcomed by all, says Parag Khanna

  • But he says people still tread lightly, careful not to overstep or demand too much

  • Myanmar has survived succession of natural and man-made ravages, Khanna adds

  • With sanctions lifted, foreign investment is now pouring in from Western nations




Editor's note: Parag Khanna is a Senior Research Fellow at the New America Foundation and Senior Fellow at the Singapore Institute of International Affairs. His books include "The Second World," "How to Run the World," and "Hybrid Reality."


Yangon, Myanmar (CNN) -- Call it a case for evolution instead of revolution. While the Arab world continues in the throes of violence and uncertainty, Myanmar is undergoing incremental change -- and almost everyone seems to want it that way.


The government is lightening up: holding elections, freeing political prisoners, abolishing censorship, legalizing protests, opening to investment and tourists and welcoming back exiles. But the people still tread lightly, careful not to overstep or demand too much. Still, the consensus is clear: Change in Myanmar is "irreversible."


Read more: Aung San Suu Kyi and the power of unity


As the British Raj's jungle frontier, Burma was a key Asian battleground resisting the Japanese occupation of Southeast Asia during World War II. As with many post-colonial countries, the euphoria of independence and democracy in 1948 gave way in just over a decade to the 1962 coup in which General Ne Win nationalized the economy and abolished most institutions except the army.



Parag Khanna

Parag Khanna



Non-alignment gave way to isolationism. Like Syria or Uzbekistan, Myanmar became an ancient Silk Road passageway that almost voluntarily choked itself off, choosing the unique path of a Buddhist state conducting genocide, slavery, and human trafficking.


Watch: Myanmar in grip of economic revolution


The military junta began its increasingly cozy rapproachment with Deng Xiaoping's China in the 1970s, just as China was opening to the world, and used cash from its Golden Triangle drug-running operations to pay for Chinese weapons.


Mass protests, crackdowns and another coup in 1988 led to a rebranding of the junta as the State Law and Order Restoration Council (SLORC) and the country's official renaming as the Union of Myanmar.


Terrorized, starving and homeless: Myanmar's Rohingya still forgotten


The 1990 elections, in which Aung San Suu Kyi's National League for Democracy (NLD) won a majority of the seats, were annulled by the SLORC, which continued to rule until 2011 when it was formally disbanded. Most international sanctions on Myanmar have now been lifted.






Read more: Myanmar: Is now a good time to go?


In just the past few years, Myanmar has survived a succession of natural and man-made ravages, from the brutal crackdown on the Saffron Revolution of 2007 (led by Buddhist monks but more widely supported in protest against rising fuel prices and economic mismanagement), to Cyclone Nargis (which killed an estimated 200,000 people in 2008) to civil wars between the government's army and ethnic groups such as the Kachin in the north and Shan and Karen in the east, and communal violence between the Muslim Rohingya (ethnic Bengalis) and Buddhist Rakhine in the west.


There are still approximately 150,000 Karen refugees in Thailand (and over 300,000 total refugees on the Thai-Burmese border) and more than 100,000 displaced Rohinya living in camps in Sittwe. So difficult is holding Myanmar together that even Aung San Suu Kyi, who helps lead the national reconciliation process, ironically advocated the use of the army (which kept her under house arrest for almost two decades) to pacify the rebellions.


Though sectarian conflict between Muslims and Buddhists in Rakhine underscores the Myanmar's tenuous search for national unity, the genuine efforts at religious pluralism are reminiscent of neighboring India: Every religion is officially recognized, and days are given off for observance. Surrounding Yangon's downtown City Hall is not only the giant Sule Pagoda but also a mosque, synagogue, church and Jain temple. The roundabout is therefore a symbol of the country's diversity -- but also the place where protesters flock when the government doesn't live up to promises.


Q&A: What's behind sectarian violence in Myanmar?


Scarred from decades of oppressive and ideological rule and still beset by conflict, it is therefore against all odds that Myanmar would become the most talked about frontier market of the moment, a top Christmas holiday destination and a case study in democratic transitions. Myanmar's political scene is now a vibrant but cacophonous discourse involving the still-powerful army; upstart parliament; repatriated civilian advisers; flourishing civil society, including human rights groups, ambitious business community, the Buddhist religious community, and a feisty media (especially online).


The parliament is pushing for accountability in telecom and energy contracts, and its speaker, Shwe Mann, is already maneuvering to challenge the chairman of his Union Solidarity and Development Party (USDP) -- current president Thein Sein -- in the 2015 elections.


In the meantime, however, the establishment in Yangon and the new capital of Napyidaw need to focus much more on building capacity. Thein Sein, who traded in his uniform for indigenous attire in 2011, has reshuffled the Cabinet to make room for functional experts in the energy and economic portfolios. He's even spearheaded an anti-corruption drive, admitting recently that Myanmar's "governance falls well below international standards." By many accounts he is also very open to advice on investment and other reforms.


He will need it, as Myanmar faces crucial tests of its international credibility in the coming years. In 2013, Myanmar will play host to the World Economic Forum (WEF) as well as the Southeast Asian Games. In 2014 it will chair the ASEAN regional group, and in 2015 it is expected to enter a new ASEAN Free Trade Area.


The military's power is still pervasive, placing it somewhere on the spectrum between Indonesia, where military influence has been rolled back, and Pakistan, where the military still dominates. On the streets, it's often difficult to know who is in charge.


One numerological fetish led to the driving side being unilaterally changed, making Myanmar the rare place where the steering wheel is (mostly) on the right, and cars drive (mostly) on the right. At least a dozen official and private newspapers (though private daily papers are not allowed yet) are on offer from meandering street hawkers, while you inch through Yangon's increasingly dense daily traffic jams.


At this time of year, visitors to Burma enjoy crisp, smoky morning air and dry, starry nights. Yangon is undergoing a construction boom, with faded colonial embassies turned into bustling banks, the national independence column being refurbished and redesigned with a park, and tycoons building columned mansions near downtown -- and seeking Buddhist blessings by pledging lavish donations for the construction of even more monasteries and pagodas.


By 2020, the population of Yangon could easily double from the current 5 million, at which point it may look like a mix of Calcutta and Kuala Lumpur.


Thant Myint-U, the grandson of former U.N. Secretary-General U Thant and noted historian of modern Burma, now wears several hats related to ethnic reconciliation, foreign donor trust funds and urban conservation. He says that as foreign aid flows grow from trickles into a flood, they have to be systematically focused on sustainable employment creation and infrastructure. USAID has pledged to spend more than $150 million in Myanmar in the next three years.



Myanmar's opening, however, is strongly motivated by an anti-Chinese sentiment that is part of a much wider global blowback against China's commercial and strategic encroachment
Parag Khanna



Outside of Yangon, the pace of Burmese society slows to a timeless pace -- as do Internet connections. On village roads, cycle rickshaws and monks with parasols amble by fruit vendors and car part stalls. Whether at the Dhammayazika Pagoda in Bagan or Mandalay Hill in that city, locals enjoy watching sunrises and sunsets as much as tourists.


Traveling around Myanmar, one observes the paradox of a country that has massive potential yet still needs just about everything. Yangon's vegetable market is a maze of tented alleys overflowing with cabbage, pineapples, eggplant and flowers, but they are still transported by wheelbarrows and bicycles. Ox-drawn ploughs still power farming in much of the country, meaning agricultural output of rice, beans and other staples could grow immensely through mechanization.


Similarly, the British-era light-rail loop circling Yangon takes about three hours to ride once around, with no linking bus services into downtown. But with cars already clogging the city, a major transport overhaul is essential. The communications sector actually needs to be re-invented. At present, the country's Internet and mobile phone penetration are only just growing; both are still governed by India's 1886 Telegraph Act. Mobile penetration is only 3 million but could easily grow to 30 million (half the population) within the next couple of years, as the price of SIM cards come down (so far from $2,000 to about $200), and foreign telecoms are allowed in to provide data coverage.


With sanctions lifted, foreign investment is now pouring in from Western nations, in addition to the players who have been making inroads for years such as China, Thailand and Singapore. The paradox, however, is that Myanmar lacks the infrastructure (physical and institutional) to absorb all the investor interest.


Major nations have thus focused on special economic zones that they themselves effectively run. The way Japan has moved into Myanmar, one would think that its World War II imperialism has been forgotten. After their major bet on the Thilawa special economic zone south of Yangon, Japanese contractors have plans to deepen the Yangon River's estuary so that cargo ships can sail directly up to the city's shores and offload more containers of cars that are already being briskly snapped up at busy dealerships.


Besides natural gas and agriculture, everyone agrees that tourism will comprise an ever-larger share of the country's GDP. Especially with much of the country off-limits to foreigners due to security restrictions and the military's economic operations, tourists already clog all existing suitable hotels in Yangon, Bagan and Mandalay, meaning a massive upgrade is needed in the hospitality sector.


Annual tourist visits are climbing 25% annually to an estimated 400,000 for 2012. Daily flights arrive packed from around the region, with longer-haul routes beginning from as far afield as Istanbul and Doha.


Still, Myanmar is a traveler's dream come true. In Bagan, you can walk or take a sunrise jog around countless pagodas that feel like they haven't been touched in 800 years -- some actually haven't. There is also the sacred and enchanting Golden Rock; the pristine beaches of Ngwe Saung, which rival the best of Thailand and the Philippines; the temperate climate of Inle Lake; the Himalayan foothills near Putao in far northern Kachin state where one can trek; the rich dynastic history of Mandalay; and the languorous Irrawaddy River cruises that harken to George Orwell's "Burmese Days."


Yangon has a pleasant charm and gentle energy, with vast gardens and riverside walks, the grandeur of centuries-old monuments such as the Shwedegon Pagoda, a fast-growing cultural scene of art galleries and music performances, and a melting pot population of all Myanmar's tribes as well as industrious overseas Indians and Chinese, who make up 5% of the nation's population.


Mandalay in particular is where one feels the depth of China's demographic penetration into Myanmar, owing not only to recent decades of commercial expansion from gems trading to real estate but also centuries of seasonal migrations across the rugged natural border with Yunnan province. Some have begun to call the Shan region "Yunnan South."


The combination of the Saffron Revolution, civil strife, sanctions, its economic lag behind the rest of ASEAN, and the status of becoming a captive resource supplier to China all played crucial roles in Myanmar's opening. China has traditionally been a kingmaker in isolated and sanctioned countries and well-placed to capitalize on the infrastructural and extractive needs of emerging economies as well.


For China, Myanmar represents a crucial artery to evade the "Malacca trap" represented by its dependence on shipping transit through the Straits of Malacca. In 2011 China was still far and away the largest foreign investor in Myanmar, bringing in $5 billion (of a total of $9 billion) across their 2,000-kilometer (1250-mile)-long border. The massive ongoing investments include 63 hydropower projects, a 2,400-kilometer (1500-mile) Sittwe-to-Kunming oil pipeline from the Bay of Bengal and a proposed gas pipeline to China's Yunnan beginning at Myanmar's Ramree Island -- not to mention an entire military outfitted with Chinese tanks, helicopters, boats and planes.


Myanmar's opening, however, is strongly motivated by an anti-Chinese sentiment that is part of a much wider global blowback against its commercial and strategic encroachment. Even well-kept generals are fundamentally Burmese nationalists and awoke to the predicament of total economic and strategic dependence on China. The government has taken major steps to correct this excessive tilt, suspending a major hydroelectric dam project at Myitsone and re-evaluating Wanbao Mining company's giant copper mine concession near Monywa.


Myanmar is now deftly playing the same multi-alignment game mastered by countries such as Kazakhstan in trying to escape the Soviet-Russian sphere of influence: courting all sides and gaining whatever one can from multiple great powers and neighbors while giving up as little autonomy as possible.


India sees Myanmar as the crucial gateway for its "Look East" policy and is offering substantial investments in oil and gas as well as port construction and information technology; Europe has become a larger investor, especially Great Britain; Russia is being courted as a new arms supplier; Japan is viewing Myanmar as its new Thailand for automobile production; and of course, U.S. President Barack Obama visited in December, paving the way not only for greater U.S. investment but even for Myanmar to potentially participate in the Cobra Gold military exercises held annually with America's regional allies.


Obama was not only the first U.S. president to visit Myanmar but also the first to call it by that name, conceding ground in a long-running dispute. The administration hopes that North Korea, Asia's still frozen outcast, will learn the lessons from Myanmar's steady but determined opening.


But countries that are playing multi-alignment don't have to thaw domestically -- witness Saudi Arabia and Kazakhstan. Myanmar is simultaneously undergoing political liberalization and international rehabilitation -- a tricky and laudable feat for sure but not one North Korea is likely to emulate entirely. What the two do have in common, however, is the growing realization that having China as a neighbor is both a blessing and a curse.


During my visit to the "Genius Language School," where university students go for professional English tutoring, I asked the assembled round table whether they were happy that Obama came to visit and whether they considered America a friend. All giggled and chanted: "Yes."


Then I asked, "Are you afraid of China?" And the answer came in immediate, resounding unison: "Yes!"


Follow @CNNOpinion on Twitter


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The opinions expressed in this commentary are solely those of Parag Khanna.






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King speaks to sceptical Spaniards






MADRID: After a year blighted by embarrassing scandals, Spain's King Juan Carlos moves to repair his damaged reputation Friday with the broadcast of a rare televised interview to mark his 75th birthday.

No details of the pre-recorded interview had leaked from the royal palace ahead of its airing on Friday evening, but Spanish media trailed it by scrutinising the recent tribulations of the king, a key player in Spain's modern history.

Juan Carlos has recently appeared hobbling around on crutches after having both hips replaced, but any sympathy for his health has been overshadowed by scandals over elephant-hunting in Africa and a corruption probe implicating his family.

In a poll published Thursday by El Mundo newspaper, only half of people expressed a positive judgement of his reign, compared with three-quarters a year ago.

Juan Carlos, who turns 75 on Saturday, won respect in Spain for helping guide it to democracy after the death of dictator Francisco Franco in 1975.

But the king's image suffered last year from two scandals.

The first was a corruption case against his son-in-law Inaki Urdangarin, the duke of Palma, who went before a judge in February.

The other was an expensive game-hunting trip the king himself made to Botswana, seen as an unacceptable extravagance while Spain suffered in a recession.

Thursday's poll showed general support for having a monarchy in Spain has fallen to 54 percent, six points down from a year ago and "a historic low", according to the newspaper.

For days ahead of the interview broadcast, national television has aired old footage including Juan Carlos's solemn address, dressed in his officer's uniform, condemning an attempted coup on February 23, 1981.

A generation after those historic events, the poll found that nearly 58 percent of people aged between 18 and 29 said they thought a monarchy was not the best form of governance for Spain.

El Mundo suggested people of this generation do not share their parents' reverence for the king since they "did not live through the transition and are not very interested in it".

In his annual Christmas speech to the nation, Juan Carlos called on Spaniards to unite against the current economic crisis that has thrown millions out of work.

"We cannot ignore that there is pessimism, and that its effects are felt in the social climate we are living in," the king said, after a year of mass street demonstrations and two general strikes.

Of all the measures to combat the crisis, "the main stimulus that will get us out of this crisis is called confidence," he said in the speech, in which he made a point of appearing without crutches, standing beside his desk.

Observers saw this as one in a series of efforts to strengthen the monarchy's standing.

"The royal palace has launched in recent months a studious marketing operation to improve the image of the king," El Mundo wrote in an editorial.

In this week's poll nearly 45 percent of people questioned said Juan Carlos should abdicate to make way for his son, Felipe, 44.

-AFP/fl



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Bill that caused GOP fight up for vote









By Ben Brumfield and Tom Watkins, CNN


updated 7:23 AM EST, Fri January 4, 2013









STORY HIGHLIGHTS


  • FEMA warns money is running out of the flood insurance program

  • The last House session canceled a vote on $60 billion in aid

  • Congress will consider a $51 billion package later

  • FEMA urges "timely congressional action"




(CNN) -- The House is poised to vote Friday on a $9.7 billion Superstorm Sandy aid package after delays over fiscal cliff bickering and a warning from federal officials that funds are running out.


Frustrated victims of the massive October storm in the Northeast watched this week as a vote on a much larger $60 billion package got canceled.


Lawmakers are expected to pass the first portion Friday and weigh in on the remaining $51 billion in broader aid on January 15.


The Federal Emergency Management Agency notified the outgoing Congress on Tuesday -- its last day in session -- that without additional borrowing authority, it will run out of money within days to compensate storm victims under the National Flood Insurance Program.
















The large aid package not voted on included more than $9.7 billion in new borrowing authority, according to the federal emergency agency.


It urged "timely congressional action" to meet survivors' needs.


Rep. Peter King blasts his own party


Outgoing lawmakers dropped what seemed like a sure thing for the suffering region into the lap of the new Congress, which convened Thursday. It will now consider it in two parts.


Republicans in the last Congress criticized proposed congressional "pork" spending in the bill that was unrelated to Sandy needs.


Democrat and Republican lawmakers in the region, including New Jersey Gov. Chris Christie, had unleashed a firestorm of criticism at their own party in the House for not addressing the measure as originally planned.


"New Jersey deserves better than the duplicity we saw on display," Christie said, adding, that this is "why the American people hate Congress."


GOP civil war over Sandy relief


Later, closed-door meetings with House Republicans from the Northeast and their leaders Eric Cantor and John Boehner calmed some sentiments.


Boehner is the House speaker while Cantor is the Majority leader.


Democrats were less mollified.


"It's really unbelievable how Speaker Boehner and his party could just walk away," said Christine Quinn, speaker of the New York City Council. "To promise us a vote weeks from now? Why should we believe him at all? It's just shocking."


In a statement, Boehner and Cantor said "critical aid" to storm victims should be the first priority of the new Congress. Both were re-elected and have retained their leadership positions in the new House.


The Senate, which had already approved the larger Sandy plan that the House declined to consider, is expected to sign off on the scaled-back version Friday as well, according to a Democratic leadership aide.


But Senators will hold off on any further action.









Read More..

Video shows teens joking about alleged rape victim

(CBS) In August, the family of a 16-year-old girl accused multiple Steubenville, Ohio, high school students of raping her while she was passed out during a night of pre-football-season partying.

Two Steubenville High School football players have been indicted for rape, and the case is set to go to trial in February. But on Wednesday, a video appeared online that depicts teenage males who appear to be joking about details of the alleged rape.

The nearly 13-minute video posted on YouTube consists mostly of one teenage male hysterically laughing as he entertains an unseen cameraman and others in the room with remarks such as "They raped her harder than that cop raped Marcellus Wallace in 'Pulp Fiction'," and, "They raped her quicker than Mike Tyson raped that one girl." 

The New York Times reported last month that photos of the alleged rape victim were posted on social media. In one, according to the paper, the girl "is shown looking unresponsive as two boys carry her by her wrists and ankles."

The case has generated controversy partly because it has been playing out online, and partly because in Steubenville, where the high school football team is a source of great civic pride, the Times reports that some say the incident is an example of the perils inherent in granting teen athletes special stature. 

Multiple versions of the video were posted on YouTube on Jan. 2. A group of hackers called KnightSec, who claim affiliation with Anonymous, say they have collected and posted information about the students accused in the attack - as well as those they believe shot and appeared in the video. In an online message, the group threatened to release what they compiled, "unless all accused parties come forward by new years day and issue a public apology to the girl and her family."

The video, which has more than 100,000 total views, appears to have been recorded on the night of the incident. One male recalls seeing the girl vomit, and more than one of the males refer to "that girl" as being drunk. So drunk, apparently, that the teen on whose face the video camera is focused cracks himself up joking that she is "so dead."

"She is deader than Trayvon Martin," he laughs, referring to the Florida teen killed in February 2012.

The teen also makes remarks implying that he may have witnessed at least some of the incident: "You didn't see how they carried her out," he says. And: "They peed on her, that's how you know she's dead."

And also: "She is so raped right now."

The alleged victim is not named in the video and her name has not been released. CBS affiliate WTRF reports that Anonymous plans to rally in support of the alleged victim at the Jefferson County Courthouse on Jan. 5.

Steubenville Police Chief Bill McCafferty did not return Crimesider's calls for comment, but released a statement to WTRF that reads, in part, "The Steubenville police department has been aware of this recent video that was released. Since late August 2012 the subject who made the video was interviewed. This has all been turned over to the prosecutors which are the Ohio Attorney General's Office, who is prosecuting this case."

In the video now being circulated, excerpts of which are above, one voice off camera tells the speaker, "this isn't funny" and that his remarks are "childish."

"That's like, rape," says the unseen male. "They raped her."

"What if that was your daughter?" says another off-camera male.

"But it isn't," says the teen making the jokes. "If that was my daughter I wouldn't care, I'd just let her be dead."

Eventually, someone asks the cameraman, "Are you still videotaping?"

The cameraman replies with a laugh: "Yes."

Additional reporting by Will Goodman


Read More..

Chelsea Clinton Raises Profile During Mom's Illness













While Hillary Clinton was in the hospital it was daughter Chelsea -- not the secretary of state or the former president Bill Clinton -- who spoke for the family.


She, along with the State Department, doled out what little information the family wanted to share in a series of tweets and when her mother was released from the hospital, it was Chelsea who delivered the thanks on behalf of her parents, tweeting her gratitude to the doctors as well as those who kept her mother in their thoughts while she recovered from a blood clot.


When Hillary Clinton leaves office, possibly at the end of this month, it will be the first time since 1982 that a Clinton will not be holding a public office.


The watch will be on whether Hillary Clinton makes another run for the White House in 2016, but almost inevitably people will also be watching to see if Chelsea Clinton decides to run for office, too.


"Americans always look for dynasties: Bush, Kennedy, Cuomo, Clinton … it's some kind of continuity. There will always be pressure on her to run for public office," said Hank Sheinkopf, a Democratic political strategist in New York.


"She's learning from the two best politicians in recent American history and she understands when to hold them and when to fold them," Sheinkopf said.


That sense of dynasty could also present a significant hurdle.






James Devaney/Getty Images











Secretary of State Clinton: Mystery Health Issues Watch Video









Secretary of State Hillary Clinton Undergoing Blood-Thinning Therapy Watch Video





"She's got to A, demonstrate that she has the charisma of her father, or B, demonstrate that she has the policy chops of her mother. And I think like most people she is somewhere in between," a former Hillary Clinton aide from her 2008 campaign said. "People are judging her through each of her parents and it's an impossible standard."


Chelsea Clinton, 32, has inched towards a possible political career in recent statements and has become more politically active.


In an interview with Vogue published in August she was more open to it than she has been in the past, telling the magazine, "Before my mom's (presidential) campaign I would have said no," but "now I don't know."


"I believe that engaging in the political process is part of being a good person. And I certainly believe that part of helping to build a better world is ensuring that we have political leaders who are committed to that premise. So if there were to be a point where it was something I felt called to do and I didn't think there was someone who was sufficiently committed to building a healthier, more just, more equitable, more productive world? Then that would be a question I'd have to ask and answer."


Clinton also spoke of a change in her private to public life:


"Historically I deliberately tried to lead a private life in the public eye," she told the magazine. "And now I am trying to lead a purposefully public life."


Besides her work as a special correspondent with NBC, Chelsea Clinton has taken on high profile roles with her father's Clinton Global Initiative. She sits on several corporate boards and has both moderated and sat on panels discussing both women in politics and childhood obesity, among other issues.


She has also worked toward making same-sex marriage legal in New York last year, as well as gay marriage referendums in Maine, Maryland, Wisconsin and Washington state, all of which were successful in November. She has also been active in superstorm Sandy recovery, most notably delivering aid to the devastated Rockaways with her father.






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How Donald Trump hijacks U.S. media






STORY HIGHLIGHTS


  • Howard Kurtz: Donald Trump said the GOP can go nuclear in budget showdown

  • Kurtz: It's remarkable that Trump draw attention no what what he says

  • He says it's so easy to hijack the media in the age of Twitter

  • Kurtz: Journalists like sexy stories but shouldn't lose focus of what's important




Editor's note: Howard Kurtz is the host of CNN's "Reliable Sources" and is Newsweek's Washington bureau chief. He is also a contributor to the website Daily Download.


(CNN) -- After a year of national gridlock that ended on the precipice of a cliff, Donald Trump went nuclear.


The man who called Barack Obama's re-election a travesty said Republicans could gain control of the budget showdown because they "are sitting there with a nuclear weapon": the specter of voting against a rise in the debt ceiling in the coming weeks. In other words, the GOP could get its way by again threatening to push the country into default.


The remarkable thing here is not Trump's apocalyptic advice but that the man who still doesn't concede that the president was born in Hawaii draws attention no matter what he says. The colorful businessman has a knack for hijacking the media -- and he's hardly alone.


Watch: Hey Fox, Hillary Clinton was sick after all



Howard Kurtz

Howard Kurtz



In fact, one of the most striking developments in recent years is how easy it is to carry out the hijacking. You don't need a weapon, nuclear or otherwise. You don't have to be a famous zillionaire to pull it off. In the Twitter age, almost anyone can capture the spotlight for 15 seconds.



We're so easy. If it's new, novel or naughty, we are there.


A critical mass of tweeters hijacked the presidential debates by turning Big Bird and "binders full of women" into trending topics. What, you thought what was most important was what the candidates said during those 90-minute face-offs? Nope, it's just as much about winning the post-game chatter. A single "oops" by Rick Perry enables the press to wipe out everything else that was said.


Watch: Are critics being too harsh on Chelsea Clinton?


Clint Eastwood, telling Obama (in the guise of an empty chair) to perform an anatomically impossible act? That hijacked Mitt Romney's convention.


Eric Fehrnstrom inadvertently hijacked his boss' campaign when he compared Romney's election strategy to an Etch A Sketch. Nothing like a kid's toy to seize the attention of grown-up journalists.


Any invocation of a celebrity has great hijacking potential, even if the story is a sprinkling of fairy dust.


The political press recently surrendered to the notion that Ben Affleck might run for John Kerry's Senate seat in Massachusetts. This was based on nothing more than local chatter, amplified by Politico. Affleck shrewdly kept the door ajar -- such speculation helps in the gravitas department --but on Christmas Eve, he gave the press a lump of coal by admitting he wasn't running.


Watch: Were the media swept away by fiscal cliff madness?


Next the media got excited by the idea that Ted Kennedy Jr. would run for office -- until he quickly popped that trial balloon.


Sometimes the hijacker wants no part of the limelight but is swept along for the ride.


Paula Broadwell was embedded in the nation's consciousness for weeks after her affair with David Petraeus prompted his resignation as CIA director. And her romantic rival, Jill Kelley, became a captive as well.


Racial tension can grab the media's attention like few other issues.


There are more than 15,000 murders annually in the United States, but only a few move beyond local headlines. The killing of Trayvon Martin, initially overlooked even in Florida, became a national sensation once activists persuaded the media that race played a role in the teenager's shooting (a perception deepened by NBC's misleading editing of George Zimmerman's 911 call). Week after week of routine murders in cities such as Chicago barely register on the radar.


Most journalists gravitate toward sensational and sexy stories (and I haven't been immune to the temptation) because we want the clicks and the ratings. And perhaps to alleviate our own boredom with the daily grunt work of reporting. The on-and-off negotiations over the fiscal cliff have been tedious and incremental. Along comes Trump and boom, you've got an easy headline.


The problem with all this media hijacking goes beyond the strange twists and turns along the way. It's that we cede control of what's important.


Follow us on Twitter @CNNOpinion


Join us on Facebook/CNNOpinion


The opinions expressed in this commentary are solely those of Howard Kurtz.






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Delhi gang-rape suspects formally charged






NEW DELHI: Indian police on Thursday formally charged five men with murder, kidnapping and rape following the fatal gang-rape of a young woman that appalled the nation.

"We have filed the charge sheet against the five accused," an investigating police officer told a magistrate hearing the case in the Saket court complex in New Delhi.

The five men, who could face the death penalty if convicted, were not present when the media were allowed into the courtroom. Journalists were initially prevented from listening to proceedings, sparking chaotic scenes outside.

The men face at least seven charges, including murder, kidnapping, rape, robbery and attempting to destroy evidence. The next hearing in the case was set for January 5.

A police charge sheet under Indian law lays out the charges against the accused and details the key evidence against them.

The 23-year-old victim in the gang-rape case, who died at the weekend from her horrific injuries, gave a statement to police immediately after the attack.

Her boyfriend, who was with her at the time and was also attacked, has also given an account.

- AFP/xq



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Argentina presses claim to Falklands




Cristina Fernandez de Kirchner during the 30th anniversary of the Falklands war, in Ushuaia, Argentina on April 2, 2012.




STORY HIGHLIGHTS


  • Argentina says Britain stripped the Falkland Islands away 180 years ago

  • The countries went to war over the islands in 1982, when Argentina put troops there

  • Argentina, which calls the islands Las Malvinas, wants sovereignty negotiations

  • British government says there won't be sovereignty talks unless islanders want them




London (CNN) -- Argentinian President Cristina Fernandez de Kirchner is once again calling on the UK to hand back the Falkland Islands -- known in Argentina as Las Malvinas -- accusing Britain of blatant colonialism.


In an open letter to British Prime Minister David Cameron, which was published in the British press, she says that Britain stripped the islands away from Argentina 180 years ago on Thursday's date: January 3.


Read more: Falkland Islands will vote on political status


The two countries went to war over the territory in 1982, when the then-Argentinian military government landed troops on the islands.










Argentina put its death toll from the conflict at around 645. Britain's civil and military losses amounted to 255.


Falklands war wounds still fresh, 30 years later


In the letter, which was copied to U.N. Secretary-General Ban Ki-moon, the Argentinian president writes: "The Argentines on the Islands were expelled by the Royal Navy and the United Kingdom subsequently began a population implantation process similar to that applied to other territories under colonial rule.


"Since then, Britain, the colonial power, has refused to return the territories to the Argentine Republic, thus preventing it from restoring its territorial integrity."


She quotes a 1965 U.N. resolution inviting the two countries to negotiate a solution to the sovereignty dispute and calls on the British to abide by the resolution.


Read more: Why tensions are rising over Falklands


Located in the South Atlantic Ocean, about 480 kilometers (298 miles) east of the tip of South America, the Falklands have long been coveted as a strategic shipping stopover and potential wellspring of natural resources.


The Falklands, which raise their own taxes but rely on the United Kingdom for defense and foreign policy, are one of 14 British overseas territories and have been under British rule since 1833.


Read more: Chavez, allies call for sanctions against Britain over Falklands


The British government swiftly rejected the idea of negotiations, saying the Falkland Islanders have chosen to be British.


In a statement, the British Foreign Office said the islanders remain free to choose their own futures and "have a right to self-determination as enshrined in the U.N. Charter. This is a fundamental right for all peoples."











The statement added: "There are three parties to this debate, not just two as Argentina likes to pretend. The islanders can't just be written out of history.


"As such, there can be no negotiations on the sovereignty of the Falklands Islands unless and until such time as the islanders so wish."


The islanders are due to hold a referendum on their political status this March but were also quick to dismiss the Argentinian position.


"We are not a colony," said Barry Elsby, a member of the Legislative Assembly of the Falkland Islands. "Our relationship with the United Kingdom is by choice."


The exchange comes amid rising tension over the islands, which are home to about 3,000 people.


In February of last year, the Argentinian leader accused the British of militarizing the South Atlantic after the Royal Navy sent its warship HMS Dauntless to the region. Then, in June of 2012, Fernandez confronted Cameron at the G-20 meeting and tried to hand him a letter about the islands -- something he refused to accept.


Argentinian leader denounces 'militarization' of the South Atlantic


The dispute flared again ahead of the London 2012 Olympics, when Argentina released a video boosting its Olympic team that was filmed on the islands. The advertisement showed Argentinian field hockey star Fernando Zylberberg training in the streets of Port Stanley in the Falklands. The video ends with the slogan: "To compete on English soil, we train on Argentine soil."







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Hillary Clinton discharged from hospital

WASHINGTONSecretary of State Hillary Clinton was discharged from a New York hospital Wednesday, after spending 72 hours under observation following the discovery of a blood clot in her head, the State Department said.

In a statement, spokesperson Philippe Reines said: "Her medical team advised her that she is making good progress on all fronts, and they are confident she will make a full recovery. She's eager to get back to the office."


Clinton and her family thanked her medical team "for the excellent care she received," Reines said.

Earlier Wednesday, Clinton had been seen in public for the first time in three weeks when she walked out of the Harkness Eye Institute in New York City and into a secure van along with a smiling Bill and Chelsea Clinton and accompanied by a security detail, reports CBS News correspondent Margaret Brennan.


The State Department had said Secretary Clinton was active in speaking with staff and reviewing paperwork while she continued to recover at New York Presbyterian Hospital.


Clinton was admitted to a New York hospital Sunday and was treated with blood thinners to dissolve a clot in the vein behind the right ear. Doctors found the clot during a follow-up exam stemming from a concussion she suffered in early December. She has been hospitalized for around 72 hours, which is a window of time during which it is possible to establish the proper blood thinner dosage that would be required prior to discharge according to doctors.

Clinton's doctors say there was no neurological damage.

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Senate Swears in a Historic 20 Female Senators












Today the Senate will make history, swearing in a record-breaking 20 female senators – 4 Republicans and 16 Democrats – in office.


As the 113th Congress is sworn in today on Capitol Hill, ABC "World News" anchor Diane Sawyer has an exclusive joint interview with the historic class of female Senators.


Diane Sawyer's complete interview will air on World News this evening.


"I can't tell you the joy that I feel in my heart to look at these 20 gifted and talented women from two different parties, different zip codes to fill this room," Sen. Barbara Mikulksi, D-Md., said while surrounded by the group of women senators. "In all of American history only 16 women had served. Now there are 20 of us."


Senator-elect Deb Fischer, R-Neb., becomes today the first women to be elected as a senator in Nebraska.


"It was an historic election," Fischer said, "But what was really fun about it were the number of mothers and fathers who brought their daughters up to me during the campaign and said, "Can we get a picture? Can we get a picture?' Because people realize it and -- things do change, things do change."


The women senators all agree that women will be getting things done in this new Congress, a sign of optimism felt for the new Congress, after the bruising battles of the 112th Congress.




"We're in force and we're in leadership positions, but it's not just the position that we hold. I can tell you this is a can-do crowd," Mikulski said of both Democrats and Republican senators in the room. "We are today ready to be a force in American politics."


And while the number of women in the Senate today makes historic, many of the women agreed that they want to keep fighting to boost those numbers. Sen. Barbara Boxer, D-Calif., said that women are still "underrepresented" in the Senate.


"I think that until we get to 50, we still have to fight because it's still a problem," Boxer said. "I think this class as you look around, Republicans and Democrats... I think that because of this new class and the caliber of the people coming and the quality of the people coming, I think that hopefully in my lifetime -- and I really do hope and pray this is the case -- we will see 50 percent. "


No Sorority Here, Even With the Will to Work Together


The cooperation does not make them a "sorority," Sen. Dianne Feinstein, D-Calif., says. There are real differences in ideology and personality and they don't want their gender to define them as senators.


But the women also admit that they believe having more women in the room would help in fierce negotiations, compromise, and legislating on Capitol Hill, traits they say do not come as naturally to their male colleagues in the Senate. That sentiment enjoys bipartisan support among the women of the Senate.


"What I find is with all due deference to our male colleagues, that women's styles tend to be more collaborative," Sen. Susan Collins, R-Maine, said.


Sen. Claire McCaskill, D-Mo., said by nature women are "less confrontational." Sen-elect Mazie Hirono, D-Hawaii, says that women are "problem solvers."


Sen. Amy Klobuchar, D-Minn., says that women have a camaraderie which helps in relationships that are key to negotiations on Capitol Hill, something she says comes natural to women more than men.


"I think there's just a lot of collaboration between the women senators and... advice and really standing up for each other that you don't always see with the men," she said.






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Time to rebrand in Lincoln's image?




Wade Henderson thinks the modern Republican Party should look to Abraham Lincoln for some inspiration.




STORY HIGHLIGHTS


  • Wade Henderson: January 1 is 150th anniversary of the Emancipation Proclamation

  • He says GOP should look to Lincoln, a canny politician who led moral fight on civil rights

  • He says GOP has history of civil rights support that it has largely abandoned in recent years

  • Henderson: In 2012, election minority voters unimpressed; GOP should return to roots




Editor's note: Wade Henderson is the president and CEO of The Leadership Conference on Civil and Human Rights and The Leadership Conference Education Fund.


(CNN) -- On January 1, the nation will commemorate the 150th anniversary of the Emancipation Proclamation, which legally freed slaves in the secessionist Southern states. Meanwhile, thousands of theaters will still be presenting the film "Lincoln," portraying the soon-to-be-martyred president's efforts in January 1865 to persuade the House of Representatives to pass the 13th Amendment, outlawing slavery throughout the nation.


Coming at a time when many Republicans are seeking to rebrand their party, these commemorations of the first Republican president raise this question: Why not refashion the Grand Old Party in the image of the Great Emancipator?


Steven Spielberg's historical drama, as well as the biography upon which it is based, Doris Kearns Goodwin's "Team of Rivals: The Political Genius of Abraham Lincoln," both remind today's Americans that Lincoln was not only a moral leader but also a practical politician. The political identity that Lincoln forged for the fledgling Republican Party -- uniting the nation while defending individual rights -- was a winning formula for half a century, with the GOP winning 11 of 13 presidential elections from 1860 through 1908.



Wade Henderson

Wade Henderson



Moreover, support for civil rights persisted in the party throughout the last century. Among the Republican presidents of the 20th century, Theodore Roosevelt famously hosted Booker T. Washington at the White House. Dwight Eisenhower ordered federal troops to Little Rock, Arkansas, to enforce school desegregation. Richard Nixon expanded affirmative action. And George H. W. Bush signed the Americans with Disabilities Act into law.


Brazile: A turning point for freedom in America, 150 years later




In the U.S. Senate, such prominent Republicans as Edward Brooke of Massachusetts (the first African-American senator since Reconstruction), Jacob Javits of New York and Everett Dirksen of Illinois were strong supporters of civil rights, as were governors such as Nelson Rockefeller in New York, George Romney in Massachusetts and William Scranton in Pennsylvania.


Former California Gov. Earl Warren served as chief justice when the Supreme Court issued its decision in Brown v. Board of Education, ordering the desegregation of the nation's schools. As recently as 1996, the Republican national ticket consisted of two strong civil rights advocates, former Kansas Sen. Bob Dole and former New York Rep. Jack Kemp.



Unfortunately, by 2012, the Republican Party had veered far from its heritage as the party of Lincoln. Prominent Republicans supported statewide voter suppression laws that hit hardest at vulnerable minorities or called for the "self-deportation" of immigrants and their families.


While some Republican senatorial nominees needlessly offended women, leading moderates such as Maine Sen. Olympia Snowe and Ohio Rep. Steven LaTourette opted for retirement. In what I hope was rock bottom, 38 Senate Republicans rebuffed their former presidential nominee Bob Dole -- a wheelchair-bound war hero -- to block an international civil and human rights treaty for people with disabilities.


Not surprisingly, the GOP in the presidential race lost the black vote by 87 points, the Asian-American vote by 47 points, the Latino vote by 44 points and the women's vote by 11 points, according to CNN exit polls. As Republicans reflect on their path forward with minority voters and persuadable whites, there are opportunities to advance civil rights.










While the GOP has increasingly promoted diverse candidates, it has not yet begun to reflect the values of our diverse nation. Fiscally conservative officeholders can fight for civil and human rights.


Just a few years ago, Alabama Sen. Jeff Sessions championed a reduction in the sentencing disparity between people charged with possession of crack and powder cocaine. These are two forms of the same drug, but crack cocaine is used more by minorities and carried much harsher punishments for possession. Working with Sessions, civil rights advocates pushed to reduce this disparity significantly -- among the greatest advances in criminal justice reform in decades.


Looking toward to the 113th Congress, several civil rights initiatives would fit conservative values. They need congressional champions. Conservative lobbyist Grover Norquist and conservative strategist Richard Viguerie have called for criminal justice reforms that would reduce the number of prisoners in U.S. prisons.


The U.S. Chamber of Commerce has joined the civil rights coalition's call for federal initiatives to narrow the educational achievement gap between minority and white students. And more Republicans are joining Jeb Bush's support for comprehensive immigration reform that provides a pathway to citizenship for long-term, law-abiding residents.


Most importantly, the GOP must embrace one of Lincoln's most enduring legacies, the 15th Amendment, which guaranteed the right to vote regardless of race. The GOP must stop trying to suppress voters and begin to champion electoral reform that shortens lines and helps more people to vote.


I don't expect another Abraham Lincoln or Frederick Douglass from the modern Republican Party -- I'll settle for a few more Jeff Sessions. When Republicans consider the consequences for their party's narrow appeal, they'll try to return to their roots.


I'm happy to help.


Follow @CNNOpinion on Twitter


Join us at Facebook/CNNOpinion


The opinions expressed in this commentary are solely those of Wade Henderson.






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Tennis: Impressive Azarenka reaches Brisbane International quarter-finals






BRISBANE, Australia: World number one Victoria Azarenka moved into the quarter-finals of the Brisbane International with a hard-fought 6-3, 6-3 win over German Sabine Lisicki on Wednesday.

Azarenka was made to work hard for her win by the hard-hitting Lisicki, who traded punishing ground strokes with the top seed but was let down by a high error rate -- 36 unforced errors compared with only nine from her opponent.

In a match much closer than the score suggests, Lisicki had her chances but was unable to take them.

She had eight break points on Azarenka's serve but was only able to convert three, whereas Azarenka -- who won her maiden WTA title in Brisbane in 2009 -- broke Lisicki six times to seize the advantage.

The German also served poorly, landing only 52 per cent of her first serves and sending down five double faults. But she stayed in the match thanks to the quality of her hitting from the baseline.

"I knew what kind of player she is and I felt like she did improve from maybe the last time we played," Azarenka said.

"I just knew that there is something that I have to deal with. So I was prepared to take some bullets today.

"But I just tried to stay focused on executing my game. I knew she was going to make some, she was going to miss some, so I just had to stay with her and look for my chance."

Azarenka now plays Kazakhstan qualifier Ksenia Pervak in the quarter-finals.

Earlier, Germany's Angelique Kerber, the only player to defeat Serena Williams since the French Open in May, came from behind to beat unheralded Puerto Rican Monica Puig in three sets.

The 24-year-old fourth-seed looked in huge trouble as she trailed 1-4 in the third set but fought back to force a tiebreak.

Puig then led 4-0 in the tiebreak only for Kerber to fight back again and take the match 3-6, 6-4, 7-6 (9/7) in two and a half hours.

She will next take on Russia's Anastasia Pavlyuchenkova in the quarter-finals.

"I was just thinking point by point (when she was down in the third set)," Kerber said.

"I was not thinking 'What's happening?' I was just really on court and just trying to hit the ball, move very well, and just fight for every point.

"It was a surprise how she played. I didn't know her before, but I'm sure that she'll be in the top 50 soon."

Sloane Stephens set up a quarter-final against fellow American Serena Williams when she beat Sweden's Sofia Arvidsson 6-3, 6-4. Ukraine's Lesia Tsurenko, who only came into the tournament when Maria Sharapova pulled out, downed Australia's Jarmila Gajdosova 1-6, 6-1, 6-4.

- AFP/fa



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Crises averted, but more fights loom






STORY HIGHLIGHTS


  • NEW: Reid accused Boehner of "dictatorship" Friday; Boehner responded with profanity

  • The vote prevents tax increases for more than 98% of Americans

  • It also wards off $110 billion in automatic cuts to domestic and military spending

  • Most Americans will still see a payroll tax increase after a 2011 cut expires




Washington (CNN) -- After exhaustive negotiations that strained the country's patience, the House approved a bill to avert the dreaded fiscal cliff, staving off widespread tax increases and deep spending cuts.


In the 257-167 vote late Tuesday, 172 Democrats and 85 Republicans favored the bill; 16 Democrats and 151 Republicans opposed it.


The plan approved Tuesday maintains tax cuts for individuals earning less than $400,000 per year and couples earning less than $450,000. It will raise tax rates for those who make more, marking the first time in two decades the rates jump for the wealthiest Americans.


Just hours before the bill passed, House Speaker John Boehner pitched to fellow Republicans the idea of amending the Senate-approved bill to add a package of spending cuts. He cautioned about the risk in such a strategy, saying there was no guarantee the Senate would act on it.










By the end of the night, he was among the Republicans who voted for the bill as written.


President Barack Obama said he would sign the bill into law, but he did not say when. After the vote, he flew to Hawaii to rejoin his wife and daughters on their winter vacation.


Had the House not acted, and the Bush-era tax cuts that were set last decade expired fully, broad tax increases would have kicked in. In addition, $110 billion in automatic cuts to domestic and military spending would have taken place.


The combined effect could have dampened economic growth by 0.5%, possibly tipping the U.S. economy back into a recession and driving unemployment from its current 7.7% back over 9%, according to economists' estimates.


While the package provides some short-term certainty, it leaves a range of big issues unaddressed.


It doesn't mention the $16.4 trillion debt ceiling that the United States reached Monday.


It also delays for two months the so-called sequester, a series of automatic cuts in federal spending that would have taken effect Wednesday and reduced the budgets of most agencies and programs by 8% to 10%.


Come late February, Congress will have to tackle both those thorny issues.


Obama warned Congress that he will not tolerate another act of prolonged brinksmanship.


"While I will negotiate over many things, I will not have another debate with this Congress over whether or not they should pay the bills that they've already racked up through the laws that they've passed," he said after the Tuesday night vote.


"We can't not pay bills that we've already incurred. If Congress refuses to give the United States government the ability to pay these bills in time, the consequences for the entire global economy would be catastrophic -- far worse than the impact of the fiscal cliff."


How they voted: House | Senate


A partial victory


While the deal gives Obama bragging rights for raising taxes on the wealthiest Americans, it also leaves him breaking a promise.


Obama had vowed to raise tax rates for the top-earning 2% of Americans, including those with household income above $250,000 and individuals earning more than $200,000.


Raising the threshold for higher tax rates shrinks the number of Americans affected.


While nearly 2% of filers have adjusted gross incomes over $250,000, only 0.6% have incomes above $500,000, according to the Tax Policy Center.


Some House Republicans weren't exactly overjoyed in voting for the plan.


"I'm a very reluctant yes," said Rep. Nan Hayworth, an outgoing Republican representative from New York.


"This is the best we can do, given the Senate and the White House sentiment at this point in time, and it is at least a partial victory for the American people," she said. "I'll take that at this point."


Conservative lobbyist Grover Norquist, whose Americans for Tax Reform pushes candidates to sign a pledge never to raise taxes, said the plan preserves most of the Bush tax cuts and won't violate his group's beliefs.


"The Bush tax cuts lapsed at midnight last night," Norquist tweeted Tuesday. "Every (Republican) voting for Senate bill is cutting taxes and keeping his/her pledge."


The timing of the vote was crucial, as a new Congress is set to be sworn in Thursday. And without a breakthrough, the entire process would have had to start over.


Specifics of the plan


The legislation will raise roughly $600 billion in new revenues over 10 years, according to various estimates.


According to the deal:


-- The tax rate for individuals making more than $400,000 and couples making more than $450,000 will rise from the current 35% to the Clinton-era rate of 39.6%.


-- Itemized deductions will be capped for individuals making $250,000 and for married couples making $300,000.


-- Taxes on inherited estates will go up to 40% from 35%.


-- Unemployment insurance will be extended for a year for 2 million people.


-- The alternative minimum tax, a perennial issue, will be permanently adjusted for inflation.


-- Child care, tuition and research and development tax credits will be renewed.


-- The "Doc Fix" -- reimbursements for doctors who take Medicare patients -- will continue, but it won't be paid for out of the Obama administration's signature health care law.


The Democratic-led Senate overwhelmingly approved the bill early Tuesday before passing it to the House.


As news about the fiscal cliff's deflection spread across the world, several markets reacted positively Wednesday.


Australia's ASX All Ordinaries index added 1.2%. South Korea's KOSPI gained 1.5%, and the Hang Seng in Hong Kong advanced 1.9%. Tokyo's Nikkei and the Shanghai Composite remain closed for holiday celebrations but will reopen later in the week.


More fiscal cliffs loom


Payroll taxes still set to go up


Despite the last-minute fiscal cliff agreements, Americans are still likely to see their paychecks shrink somewhat because of a separate battle over payroll taxes.


The government temporarily lowered the payroll tax rate in 2011 from 6.2% to 4.2% to put more money in the pockets of Americans. That adjustment, which has cost about $120 billion each year, expired Monday.


Now, Americans earning $30,000 a year will take home $50 less per month. Those earning $113,700 will lose $189.50 a month.


With the latest battle round over, lawmakers will next set their sights on the other items on their docket of congressional squabbles over money: the debt ceiling and resolving the sequester.


Obama said he hopes leaders in Washington this year will focus on "seeing if we can put a package like this together with a little bit less drama, a little less brinksmanship (and) not scare the heck out of folks quite as much."


He thanked bipartisan House and Senate leaders for finally reaching a resolution Tuesday, but said Congress' work this year is just beginning.


"I hope that everybody now gets at least a day off I guess, or a few days off, so that people can refresh themselves, because we're going to have a lot of work to do in 2013."


Read more: 5 things to know about the fiscal cliff


Angry rhetoric flew


In the tense days leading up to the deal, heated words flew between some Democrats and Republicans.


On Friday, after Democratic Senate Majority Leader Harry Reid accused Boehner of holding a "dictatorship" in his chamber, the House speaker responded with a profanity.


"Go f— yourself," Boehner said to Reid, according to a source with knowledge of the exchange in a White House lobby.


Dana Bash reported from Washington, and Holly Yan reported from Atlanta. CNN's Rich Barbieri, Charles Riley, Josh Levs, Dana Ford, Matt Smith, Jessica Yellin, Deirdre Walsh and Ted Barrett contributed to this report.






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House GOP blasted for scrapping Sandy aid vote

WASHINGTON New York area-lawmakers in both parties erupted in anger late Tuesday night after learning the House Republican leadership decided to allow the current term of Congress to end without holding a vote on aid for victims of Superstorm Sandy.

Rep. Peter King, R-N.Y., said he was told by the office of Majority Leader Eric Cantor of Virginia that Speaker John Boehner of Ohio had decided to abandon a vote this session.

Cantor, who sets the House schedule, did not immediately comment. House Democratic Whip Steny Hoyer of Maryland told reporters that just before Tuesday evening's vote on "fiscal cliff" legislation, Cantor told him that he was "99.9 percent confident that this bill would be on the floor, and that's what he wanted."

A spokesman for Boehner, Michael Steel said, "The speaker is committed to getting this bill passed this month."

A House Republican aide confirmed to CBS News producer Jill Jackson that the House would not take up the bill during this session.

In remarks on the House floor, King called the decision "absolutely inexcusable, absolutely indefensible. We cannot just walk away from our responsibilities."

The Senate approved a $60.4 billion measure Friday to help with recovery from the October storm that devastated parts of New York, New Jersey and nearby states. The House Appropriations Committee has drafted a smaller, $27 billion measure, and a vote had been expected before Congress' term ends Thursday at noon.




29 Photos


Cleaning up after Sandy






29 Photos


Superstorm Sandy: State-by-state snapshots



More than $2 billion in federal funds has been spent so far on relief efforts for 11 states and the District of Columbia struck by the storm, one of the worst ever to hit the Northeast. The Federal Emergency Management Agency's disaster relief fund still has about $4.3 billion, enough to pay for recovery efforts into early spring, according to officials. The unspent FEMA money can only be used for emergency services, said Rep. Frank Pallone Jr., D-N.J.

New York, New Jersey, Connecticut, District of Columbia, West Virginia, Virginia, Maryland, New Hampshire, Delaware, Rhode Island, Pennsylvania and Massachusetts are receiving federal aid.

Sandy was blamed for at least 120 deaths and battered coastline areas from North Carolina to Maine. New York, New Jersey and Connecticut were the hardest hit states and suffered high winds, flooding and storm surges. The storm damaged or destroyed more than 72,000 homes and businesses in New Jersey. In New York, 305,000 housing units were damaged or destroyed and more than 265,000 businesses were affected.

"This is an absolute disgrace and the speaker should hang his head in shame," said Rep. Eliot Engel, D-N.Y.

"I'm here tonight saying to myself for the first time that I'm not proud of the decision my team has made," said Rep. Michael Grimm, R-N.Y. "It is the wrong decision, and I' m going to be respectful and ask that the speaker reconsider his decision. Because it's not about politics, it's about human lives."

"I truly feel betrayed this evening," said Rep. Nita Lowey, D-N.Y.

"We need to be there for all those in need now after Hurricane Sandy," said Rep. Gregory Meeks, D-N.Y.

The House Democratic leader, Rep. Nancy Pelosi of California, said she didn't know whether a decision has been made and added, "We cannot leave here doing nothing. That would be a disgrace."

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Obama Hails 'Cliff' Deal, Warns of Next Fiscal Fight













Minutes after the House of Representatives approved a bipartisan Senate deal to avert the "fiscal cliff" and preserve Bush-era tax cuts for all Americans making less than $400,000 per year, President Obama praised party leaders and wasted little time turning to the next fiscal fight.


"This is one step in the broader effort to strengthen our economy for everybody," Obama said.


Obama lamented that earlier attempts at a much larger fiscal deal that would have cut spending and dealt with entitlement reforms failed. He said he hoped future debates would be done with "a little less drama, a little less brinksmanship, and not scare folks quite as much."


But Obama drew a line in the sand on the debt ceiling, which is set to be reached by March.


"While I will negotiate over many things, I will not have another debate with this Congress over whether they should pay the bills for what they've racked up," Obama said. "We can't not pay bills that we've already incurred."


An hour after his remarks, Obama boarded Air Force One to rejoin his family in Hawaii, where they have been since before Christmas.






AP Photo/Charles Dharapak















'Fiscal Cliff' Negotiations: Congress Reaches Agreement Watch Video





House Republicans agreed to the up-or-down vote Tuesday evening, despite earlier talk of trying to amend the Senate bill with more spending cuts before taking a vote. The bill delays for two months tough decisions about automatic spending cuts that were set to kick in Wednesday.


A majority of the Republicans in the GOP-majority House voted against the fiscal cliff deal. About twice as many Democrats voted in favor of the deal compared to Republicans. One hundred fifty-one Republicans joined 16 Democrats to vote against the deal, while 172 Democrats carried the vote along with 85 Republicans.


The Senate passed the same bill by an 89-8 vote in the wee hours of New Year's Day. If House Republicans had tweaked the legislation, there would have been no clear path for its return to the Senate before a new Congress is sworn in Thursday.


The vote split Republican leaders in the House. House Speaker John Boehner, R-Ohio, voted yes, and so did the GOP's 2012 vice presidential candidate, Rep. Paul Ryan, R-Wis.


But House Majority Leader Eric Cantor, R-Va., the No. 2 Republican in the House, voted no. It was his opposition that had made passage of the bill seem unlikely earlier in the day.


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


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


"Now the focus turns to spending," said Boehner in a statement after the vote. "The American people re-elected a Republican majority in the House, and we will use it in 2013 to hold the president accountable for the 'balanced' approach he promised, meaning significant spending cuts and reforms to the entitlement programs that are driving our country deeper and deeper into debt."


Republicans hope that allowing the fiscal cliff compromise, which raised taxes without an equal amount of spending cuts, will settle the issue of tax rates for the coming debates on spending.






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