Penis knifing suspect to be arraigned

Catherine Kieu Becker, 48, is facing torture and aggravated mayhem charges in the knifing incident.Catherine Kieu Becker, 48, is charged with aggravated mayhem and tortureShe is accused of drugging her husband and cutting off his penis, police sayThe couple is going through a divorce, according to policeBecker is to be arraigned Friday in Orange County Superior Court

Los Angeles (CNN) -- A Southern California woman accused of cutting off her husband's penis and throwing it into a garbage disposal was scheduled to be arraigned Friday on torture and aggravated mayhem charges in an Orange County court.

Catherine Kieu Becker, 48, who is also known as Que Anh Tran, is also facing special allegations, or sentencing enhancements, for great bodily injury and personal use of a deadly weapon, specifically a knife, according to the felony complaint.

If convicted on all counts, she faces a maximum sentence of life without the possibility of parole, prosecutors said.

Becker, of Garden Grove, California, is being held without bond, said Farrah Emami, spokeswoman for the Orange County District Attorney's office.

An initial police investigation alleged Becker put a drug or poison in her 60-year-old husband's dinner Monday evening to make him sleepy.

Prosecutors have said they are waiting on toxicology reports about the alleged drugging.

Becker told authorities he "deserved it" when they arrived at the scene after she called 911, the police report said. Becker and her husband are going through a divorce.

On the night of July 11, Becker and her husband argued about friends staying at their Garden Grove residence, prosecutors said in a press release.

Becker served her husband dinner, and after feeling tired at about 9 p.m., he went to bed, authorities said.

Becker allegedly tied her husband's legs and arms to the four corners of the bed with nylon rope, according to the district attorney's office. As he woke, she pulled down his pants, grabbed his penis and severed it with a knife, prosecutors said.

Becker then took the penis to the kitchen, threw it into the garbage disposal, and turned it on, "mutilating the organ," the prosecutors' statement said.

The husband underwent emergency surgery at UC Irvine Medical Center, authorities said.

On Thursday, Emami said prosecutors weren't commenting on the husband's condition out of respect for his privacy.

The Orange County case has been widely compared to the 1993 attack against John Wayne Bobbitt by his then-wife, Lorena, who cut off his penis with an 8-inch carving knife while he slept.

Lorena Bobbitt then drove away, tossing the penis out her car window. The penis was eventually found and surgically reattached.

Lorena Bobbitt was later found innocent by reason of insanity. During her testimony, she tearfully described her life at the hands of her abusive husband.

In a separate trial, Bobbitt was acquitted of sexually assaulting his wife. After successful surgery to reattach his penis, Bobbitt made appearances on "The Howard Stern Show." He also made a number of adult films.

Quoting : CNN.com

Does football want Tiki Barber back?

Tiki Barber would like to return the National Football League four years after he retired.Tiki Barber is looking to return to the NFL four years after retiringBarber retired at the top of his game to pursue a TV careerHis contract wasn't renewed by NBC, and he also left his wife Barber made headlines off the field with comments about his teammates and coachesEditor's Note: Shaun Powell is a columnist for NBA.com and covered Tiki Barber when he played for the Giants.

CNN -- He was a guy who, with a football under his arm, had more moves than U-Haul, a Pro Bowl running back who could change directions enough to make you suspect his helmet hid a navigation device.

Tiki Barber had a talent for avoiding violent collisions, which is surprising when you see him now, a beaten man who looks like he ran full-steam into Ray Lewis in a foul mood.

He is woozy, flattened by a series of personal and professional blind-side hits, desperate enough to attempt a return to football at 36 and four years away from the game. His is a cautionary tale of someone who was the smartest guy in the locker room and flaunted it; who thought he was beyond football and soon regretted it; who gave the impression that life was solid until it he helped shatter it.

An athlete who was seemingly charmed was racing all alone toward the end zone and fumbled on the 5, and now we ask: Is this a comeback story worth rooting for?

With the NFL lockout over and training camp beckoning, the greatest running back in the long history of the New York Giants would really love to be puking on a field in 100-degree heat right now. Two-a-days never looked so good to a player who, either bored or arrogant or both, walked away from the game and millions of dollars while still in his prime. He claimed he lost his desire, although in his final game, he rushed for 137 yards against a tough Eagles defense. In his final season, he rushed for 1,662 yards and over five yards a carry. Most likely, he left football because the voice inside Barber's head called him the next Bryant Gumbel.

Well. Look what happened. Has anyone in football fallen so fast and so hard without committing a crime? OK, besides Brett Favre?

He was chewed up by the cutthroat world of network television. Barber might be the only regular in the history of the "Today" show who didn't make it to "tomorrow." His chair on the set of NBC's Sunday night football show was unceremoniously removed from the set, too. The Giants won the Super Bowl the year after he retired.

On the home front, a nasty and public divorce followed, and the bloodthirsty tabloids then found the other woman, a 23-year-old intern. Without a TV career, a stable family or football, Barber disappeared from sight, certainly humbled, definitely hurting.

He says he's coming back to football because the desire has returned. But after a pricey divorce, and the lack of income recently, don't you suspect money is the greatest motivator for someone who just lost a bundle?

The dagger then twisted again inside his gut when he was booed last fall by Giants' fans during a stadium ceremony inducting him and others into the Ring of Honor. Barber would've been treated better had he run out in a Redskins' uniform.

In an HBO interview this spring with Gumbel, of all people, Barber revealed he was depressed.

"I crafted this career, right?" he said. "And then I had gotten to the point where I was right where I wanted to be and then I failed. It's hard to deal with."

Even before he became the No. 22 all-time leading rusher with 10,449 yards, life got complicated for Barber. He torpedoed his coach, Tom Coughlin. Barber said the Giants were "outcoached" in the 2005 playoffs, a 23-0 loss to the Panthers, and after retiring, said Coughlin's demanding style wore on him. And while at NBC, Barber said Coughlin was "in a crisis because of the perception that he is losing the team."

Before, Barber stuck his nose in Michael Strahan's contract negotiations. Barber said Strahan should've taken the Giants' initial offer and helped the club get under the 2002 salary cap ("Michael's not thinking about the team. He's thinking about himself.").

Later, in his final days with the Giants, he took a shot at Eli Manning, saying the quarterback's motivational speeches were "almost comical" and questioned Manning's leadership skills. (Manning led the Giants to that Super Bowl win the first season after Barber retired). Some of Barber's teammates weren't sure whether to throw him the football or a punch. He was loved for what he could do on a Sunday and often loathed for what he might say or do the rest of the week.

He had it all: rugged looks, a rich contract, intelligence and a thriving football career, in addition to a wife and kids. A Renaissance man in New York; what could be better?

"Tiki always thought of himself as being much more than a football player, and that was the problem," says a former teammate. "It kind of rubbed people around here the wrong way, because we were football players first and foremost, and this was his way of saying he was better than us. Well, isn't it strange how he's now saying he wants to be a football player again?"

Yes, it is strange how the unraveling of Tiki Barber wasn't due to dogfighting or some other crimes we've seen committed by too many football players. He didn't cheat his teammates or coaches out of an honest effort on the field like Albert Haynesworth.

Barber's "crime" was reaching for a pass thrown far over his head, for being too smart for his own good, for thinking he could be better discussing world events on TV than playing football. And for someone who enjoyed the perks of fame, it wasn't too comfortable when he ditched his wife -- pregnant with twins at the time -- for a young girlfriend and experienced the flip side of celebrity in the big city.

So, what's left, at this point?

The idea welcome mat was pulled from under him when the Tampa Bay Buccaneers, his twin brother Ronde's team, said this week that Tiki wasn't in their plans. There's an outside chance with the Steelers because Barber is friendly with coach Mike Tomlin. Wherever Barber's name is raised, there will be questions about his locker room presence, which was an issue with the Giants. And of course, whether he's still durable and effective after not taking a hit in four years.

There's no chance with the Giants, who'd rather take another shot (excuse the pun) with Plaxico Burress than reunite Barber with Coughlin.

Anyway, at 36 and playing a position that wears out 25-year-olds, his days of getting 20 carries a game are likely gone, along with the ability to generate big money. This is not the direction Tiki Barber thought he'd travel when he walked out on the Giants four years ago.

"I need the game," he says now.

But does the game need him?

The opinions expressed in this commentary are solely those of Shaun Powell.

Quoting : CNN.com

Deadly heat wave hits U.S. east coast

What makes this heat wave so hot?Weather service: Triple-digit temperatures to remain across the eastern U.S.Weather expected to cool off slightly beginning Sunday, forecasters sayAbout 100 concert-goers overcome by heat at Vans Warped TourOne says she got "overheated and I got really dizzy" Read more about the heat wave from CNN affiliates KYW, WKOW, WPXI, KSFY and KTTC.

(CNN) -- A heat wave blamed for as many as two dozen deaths settled over portions of the East Coast as the National Weather Service issued an extreme heat warning for much of the Mid-Atlantic, saying Friday would be the hottest day in the region.

The highest heat index values -- how hot it feels -- could reach 115 degrees in some locations, the weather service said.

"These triple-digit temperatures are forecast to remain in place across the eastern U.S. through Saturday," it said.

How hot is it where you live? Share your photos, videos and stories

The weather was expected to cool off slightly to the mid-90s by Sunday, according to the National Weather Service.

The warnings came as the heat wave broke 55 record highs and tied 60 more records in portions of the Midwest and the Ohio Valley, forecasters said.

Millions were also being warned to avoid strenuous activity and exercise outdoors after the National Weather Service issued a number of code red air quality alerts -- meaning air pollution levels are considered unhealthy for the general population -- in a handful of cities, including Baltimore and Washington D.C.

Beat-the-heat advice from a pro

The heat has affected many outdoor activities, prompting one Minneapolis movie theater marquee to read, "We have AC. Who cares what's playing," and one Canadian couple to forgo their original plans while visiting the Twin Cities.

Scott Hoffort and his wife, Colleen, of Saskatchewan, Canada, arrived in Minneapolis Sunday with their camping gear, planning for a vacation spent mostly outdoors at a campground. Instead they're now doing "more touristy" things.

"We went from camping in a tent to staying in hotels, so that we could get air conditioning," said Hoffort said. "We spent a fair amount of time in the Mall of America yesterday because of the heat."

Heat hurts your insides too

About 100 people, primarily teenagers, were overcome Thursday by the heat at the Vans Warped Tour in Camden, New Jersey, where more than 12,000 people gathered at the outdoor concert, authorities said.

"I just, I guess got overheated and I got really dizzy," 17-year-old Maureen Meckly, who attended the concert, told CNN affiliate KYW. "I had to grab onto her (friends') shoulder to tell her I was passing out."

In Wildwood, New Jersey, tourists and residents beat the heat by heading to the ocean.

What a heatstroke feels like

But for some working hot food concession stands at Morey's Piers in Wildwood there was little relief.

"Sometimes it's so hot, I can't even breathe," Erik Perez, who works at Curley's Fries, told KYW.

In Newark, New Jersey, Mayor Cory Booker announced that facilities were available in every ward to help keep citizens cool.

"It is imperative that our residents drink plenty of fluids, stay indoors in a cool climate, and avoid strenuous activity," Booker said in a statement. "I urge our senior citizens and Newark residents who lack air conditioning to come to one of our cooling centers."

In New York, Con Edison called on customers to stay cool and not waste energy.

"Store owners who leave doors open with the A/C running could be subject to fines from the city," ConEd said.

The first confirmed heat-related death in Kansas City was declared Thursday, but it stemmed from a death last month. A 57-year-old man was found dead in his home on June 5, according to Dan Ferguson, who works for Jackson County.

In addition to the man's death, there are 13 other possible heat-related deaths in Missouri -- the youngest was a woman in her mid-30s, and the oldest were two women in their mid-70s, said Jeff Hershberger, spokesman for the Kansas City Health Department.

It may take six weeks to several months for officials to process toxicology tests to determine whether all 13 died of heat-related causes, Hershberger said.

In Wisconsin, a 65-year-old man from Fountain Prairie was confirmed by health officials to have died from heat-related causes Thursday, according to CNN affiliate WKOW. Columbia County Medical Examiner Angela Hinze said the man had underlying medical conditions that were made worse when he was helping a family member outside with housework.

In Oklahoma, four heat-related deaths have been confirmed since May, said Cherokee Ballard, a spokeswoman for the state medical examiner. Three of those occurred in the past 30 days, including a 3-year-old boy in a car in Norman and a 69-year-old man from Blackwell, she said.

An additional eight Oklahoma deaths may be related to the heat, she said, with most occurring in July.

CNN affiliate WPXI reported Thursday that a child accidentally locked in a hot car was rescued in Spring Hill, Pennsylvania. The girl's mother locked her keys in the car and immediately called for help, the report said. The girl was not hurt.

The high heat is also taking its toll on animals.

In South Dakota, 1,500 head of livestock have been lost to the heat, Larry Olsen of the Farm Service Agency told CNN affiliate KSFY.

Dozens of cattle died south of Harmony, Minnesota, CNN affiliate KTTC reported. And on a cattle farm just across the border in northern Iowa, an estimated 100 cattle died, the report said.

At the Brookfield Zoo just outside Chicago, staff kept water misters in exhibits and gave some animals huge blocks of ice filled with meat and fruit.

CNN's Chris Welch, Sean Morris, Jacqui Jeras, Dave Alsup, Phil Gast, Chelsea J. Carter and Marlena Baldacci contributed to this report.

Quoting : CNN.com

41 feared dead in China bus fire

Chinese police investigate the burnt wreckage of a double-decker bus on Friday.The number of fatalities is an initial reportSix people including the driver are rescued and hospitalized

Beijing (CNN) -- Forty-one passengers are feared dead in a bus fire in central China, state media reported Friday.

Six people including the driver were rescued and hospitalized, Sun Jun, deputy director of the local government information office, told CNN.

The number of fatalities is an initial report, according to state-run CCTV.

"The fire was so big that some bodies were burned beyond recognition -- and the death toll is being tallied," Sun said.

It was unclear what caused the fire and an investigation is under way.

The bus was on a highway in Xinyang city in Henan province.

CNN's Eve Bower and Haolan Hong contributed to this report.

Quoting : CNN.com

IMF urges China to strengthen yuan

NEW YORK (CNNMoney) -- China's economy is growing rapidly, but the International Monetary Fund believes it could be doing so on stronger footing, if the government were to loosen its tight grip on its currency.

"A stronger renminbi would increase household income, boost consumption, make China's manufacturing products more affordable for the Chinese people, and help build a stronger service economy," economist Nigel Chalk, the IMF's mission chief for China, said in a statement.

That statement comes as United States officials have long urged China to allow its currency the renminbi -- or yuan -- to appreciate more rapidly. Between 2008 and 2010, China had pegged the yuan to the dollar, keeping its value artificially low.

U.S. officials claim that China continues to manipulate the yuan, giving Chinese exporters an unfair advantage that has created global trade imbalances.

Over the past year, the currency has appreciated 5.5% against the weakening U.S. dollar. Once economists take China's rapid inflation into account though, the yuan has actually depreciated, the IMF said.

A stronger yuan that floats more freely against international currencies could help China lessen imbalances in its economy, including high inflation, the report said.

Rapidly rising food prices, a possible real estate bubble and a decline in credit quality are all potential risks that could impede China's rapid growth, it said.

Nevertheless, the IMF expects China's gross domestic product to grow 9.6% this year and 9.5% in 2012.

In contrast, growth in the U.S. is forecast to pick up only 2.5% in 2011 and 2.8% in 2012.

Chinese authorities disagreed with the IMF's currency recommendations, the report said. 

Quoting : CNN

Obama on U.S. debt crisis: 'We are almost out of time.'

Obama: 'Power is in our hands'NEW: House passes Speaker Boehner's plan to raise the debt ceiling while cutting spendingSen. Reid promises the Senate will defeat the Boehner planObama urges Senate Democrats and Republicans to take the leadCongress must raise the $14.3 trillion debt ceiling by August 2 or risk an unprecedented default

Washington (CNN) -- The Republican-controlled House of Representatives on Friday narrowly passed Speaker John Boehner's plan to raise the nation's the debt ceiling and slash government spending, sending the measure to Senate Democrats who have promised to immediately defeat it.

Boehner's proposal was approved by the House in a sharply polarized 218-210 vote that was delayed by a day while the speaker rounded up support from wary tea party conservatives.

Even if defeated in the Senate, the Boehner plan now is the Republican negotiating position for hammering out a deal with congressional Democrats and President Barack Obama to avert a possible government default next week.

Friday's vote was a critical test of Boehner's control over his tea party-infused GOP caucus. The speaker was forced to quell a right-wing revolt over the measure after a number of members complained that it doesn't do enough to shrink the size of government and stem the tide of Washington's red ink.

Boehner, R-Ohio, managed to sway several of those members by including a provision requiring congressional passage of a balanced budget amendment to the Constitution before the debt ceiling can be extended through the end of 2012.

In his floor speech before the vote, Boehner called the proposal imperfect but necessary, and he criticized Obama and congressional Democrats for rejecting all deficit reduction measures passed by the House so far.

"We've tried to do our level best ... but some people continue to say no," Boehner said, adding: "I stuck my neck out a mile to try to get an agreement with the president of the United States."

His voice rising to a shout, Boehner continued to cheers and applause from fellow Republicans: "It is time for this administration and the other party across the aisle -- put something on the table. Tell us where you are."

Democratic leaders vehemently object both to the balanced budget amendment and the requirement of a second debt ceiling vote before the next election. They argue that reaching bipartisan agreement on another debt ceiling hike during an election year could be nearly impossible, and that short-term extensions of the limit could further destabilize the economy.

The debt crisis: Where things stand

Earlier in the day, Obama urged Senate Democrats and Republicans to take the lead in the congressional deliberations.

Boehner's plan "has no chance of becoming law," Obama said. "The time for putting party first is over. The time for compromise on behalf of the American people is now. ... It's important for everybody to step up and show the leadership that the American people expect."

"This is not a situation where the two parties are miles apart," the president insisted. But "we are almost out of time."

Obama -- sleepless in recent nights due to the crisis, according to a senior administration official -- urged Americans to contact their members of Congress "to keep the pressure on Washington."

For their part, Senate Democrats have repeatedly said they are prepared to quickly vote down Boehner's proposal. Senate Majority Leader Harry Reid, D-Nevada, has been pushing his own plan to raise the debt limit, though he will need to win over at least seven Senate Republicans to win the 60 votes necessary to overcome a certain filibuster.

Reid announced Friday morning that he intends to "take action" on a Senate bill by the end of the day.

Reid blasted Boehner's decision to include a mandatory balanced budget amendment provision in the GOP plan, calling the addition of "even more stuff in this right-wing leaning bill. ... It's really hard to comprehend."

Sen. Chuck Schumer, D-New York, accused Boehner of "adding all kinds of unrealistic poison pills to his plan."

But Senate Minority Leader Mitch McConnell, R-Kentucky, argued Senate Democrats were doing little to actually resolve the crisis.

"I would suggest to my friends on the other side ... that they start taking their responsibilities as a majority party a little more seriously, because at this point, the only people who are disregarding the consequences of default are Senate Democrats -- not the Republicans in the House -- but them," McConnell said.

As the political maneuvering continues, the clock continues to tick down. If Congress fails to raise the current $14.3 trillion debt ceiling by August 2, Americans could face rising interest rates and a declining dollar, among other problems.

Some financial experts have warned of a downgrade of America's triple-A credit rating and a potential stock market plunge. The Dow Jones Industrial Average dropped for a sixth straight on Friday.

Without an increase in the debt limit, the federal government will not be able to pay all its bills next month. Obama recently indicated he can't guarantee Social Security checks will be mailed out on time.

Leaders of both parties now agree that any deal to raise the debt ceiling should include long-term spending reductions to help control spiraling deficits. But they differ sharply on both the nature and timetable of the cuts.

Are baby boomers to blame?

Despite the strong partisan rhetoric, there have been signs of a growing recognition of a need for further compromise. Earlier this week, McConnell called for renewed negotiations with Obama, and indicated that his party must be willing to move away from some of its demands.

Sources close to the negotiations have also said that Vice President Joe Biden is very much in the mix of back-channel conversations on a possible fallback position.

White House Chief of Staff Bill Daley said Thursday that, presuming the Boehner plan wins House approval and gets blocked in the Senate, the next step is for everyone "to take a step back in the Congress and look at where is a point of compromise."

Daley said that similarities between the Boehner and Reid plans "may be the grounds for a deal that, hopefully, both parties can pass."

Both plans suffered setbacks earlier this week when the nonpartisan Congressional Budget Office released reports concluding that they fell short of their stated deficit reduction goals.

Boehner's plan, which has since been revised, proposed generating a total of $917 billion in savings while initially raising the debt ceiling by $900 billion. The speaker has pledged to match any debt ceiling hike with dollar-for-dollar spending cuts.

His plan, however, would require a second vote by Congress to raise the debt ceiling by a combined $2.5 trillion -- enough to last through the end of 2012. It would create a special congressional committee to recommend additional savings of $1.6 trillion or more.

Any failure on the part of Congress to enact mandated spending reductions or abide by new spending caps would trigger automatic across-the-board budget cuts.

Listen up, Washington; we've been there

The plan, as amended Friday, also calls for congressional passage of a balanced budget amendment to the Constitution before the second vote to raise the debt ceiling, which would likely be required at some point during the winter.

As for Reid's plan, it would reduce deficits over the next decade by $2.2 trillion. Democrats have promised that the final version of the plan will contain additional savings -- enough to match any required debt ceiling hike through 2012.

Reid's plan would cut spending by $1.8 trillion, including $1 trillion in savings based on the planned U.S. withdrawals from military engagements in Afghanistan and Iraq.

Limiting future discretionary spending would save $751 billion, while an estimated $375 billion would be saved in interest payments due to reduced borrowing because of the spending cuts.

Reid's plan also would establish a congressional committee made up of 12 House and Senate members to consider additional options for debt reduction. The committee's proposals would be guaranteed by a Senate vote with no amendments by the end of the year.

Among other things, Reid has stressed that his plan meets the key GOP demand for no additional taxes. Boehner, however, argued this week that Reid's plan fails to tackle popular entitlement programs such as Medicare, which are among the biggest drivers of the debt.

A recent CNN/ORC International Poll reveals a growing public exasperation and demand for compromise. Sixty-four percent of respondents to a July 18-20 survey preferred a deal with a mix of spending cuts and tax increases. Only 34% preferred a debt reduction plan based solely on spending reductions.

According to the poll, the public is sharply divided along partisan lines; Democrats and independents are open to a number of different approaches because they think a failure to raise the debt ceiling would cause a major crisis for the country. Republicans, however, draw the line at tax increases, and a narrow majority of them oppose raising the debt ceiling under any circumstances.

CNN's Ted Barrett, Kate Bolduan, Gloria Borger, Keating Holland, Brianna Keilar, Jeanne Sahadi, Xuan Thai, Jessica Yellin and Deirdre Walsh contributed to this report

Quoting : CNN.com

U.S. loses $1.3 billion in exiting Chrysler

 

As government wraps up the Chrysler bailout, Treasury says it likely lost $1.3 billion on the deal.

NEW YORK (CNNMoney) -- U.S. taxpayers likely lost $1.3 billion in the government bailout of Chrysler, the Treasury Department announced Thursday.

The government recently sold its remaining 6% stake in the company to Italian automaker Fiat. It wrapped up the 2009 bailout that was part of the Troubled Asset Relief Program six years early.

"The fact that the company has done so well -- that they were able to go out and raise private capital to repay us the loan so quickly, is really the big story," said Tim Massad, Treasury assistant secretary for financial stability.

Fiat paid the Treasury a total of $560 million for the remaining shares, as well as rights to shares held by the United Auto Workers retiree trust. Fiat now owns a 53.5% stake in the company.

Originally, the government committed a total of $12.5 billion to the struggling automaker, Old Chrysler, and the company's newly formed Chrysler Group. Of those funds, $11.2 billion have been returned through principal repayments, interest and cancelled commitments, the Treasury said. The new Chrysler Group paid back $5.1 billion in loans in May.

As part of the loan agreement, Chrysler was given until 2017 to return the bailout funds. If it had taken the full term, the interest accrued on the loans could have significantly reduced the government's losses.

Overall, $1.3 billion will not be recovered from the bankrupt Old Chrysler, but Massad still called it a "major accomplishment."

That's because the government originally expected it would lose much more on the auto bailout. Initial estimates from the Congressional Budget Office in 2009, predicted the government would lose $40 billion on the overall auto bailout.

Now it estimates, by the time the $80 billion program is completely wrapped up, taxpayers will have lost $14 billion.

The Treasury Department also considers the auto bailout a success because the industry has recently shown signs of a recovery.

In the year leading up to the Chrysler and General Motors' bankruptcies, the auto industry lost 400,000 jobs. Since the bailout, about 113,000 of those jobs have been recovered.

"We didn't make the auto interventions to make money, we made them to save jobs -- and on that front, we dramatically succeeded," Massad said.

General Motors (GM, Fortune 500) has already repaid loans it received from the bailout, but the Treasury still owns about one-third of GM's shares, worth approximately $16 billion.

TARP overall, was originally authorized to cost $700 billion, but the Treasury Department has only paid out $411 billion.

Of that amount, $101 billion have yet to be paid back, mostly due to losses from assistance to AIG and mortgage modification programs.

The bank bailout part of TARP is expected to turn a profit of $20 billion, making up for some of those losses. 

First Published: July 21, 2011: 1:00 PM ET

Quoting : CNN

Japan records surprise trade surplus

Containers are loaded onto a cargo ship at Tokyo's port in Japan on July 21 as the country returned to a trade surplus.Market forecast a deficit of Y150bn for June; Japan posted a trade surplus of Y70.7bn ($898.4m)Companies still face power restrictions following the devastating March 11 tsunami and earthquakeConcerns remain over power shortages and export implications of a strong yen

(FT) -- Japan posted an unexpected trade surplus for the first time in three months, adding to signs that manufacturers are recovering from the huge disruption caused by the March 11 earthquake and tsunami.

Japan returned to a narrow trade surplus of Y70.7bn ($898.4m) in June, compared with a market forecast for a deficit of Y150bn, data from the finance ministry showed.

The pace of the decline in exports slowed to 1.6 per cent to Y5,775.9bn, compared with double-digit falls in the previous two months. Meanwhile, imports rose 9.8 per cent to Y5,705.2bn, a smaller increase from May's 12.3 per cent rise.

Companies so far appear to be coping with power restrictions during peak times by shifting some production to weekends, as the crisis continues at the Fukushima Daiichi plant and while other nuclear facilities remain offline following regular checks amid a lack of political clarity over restarting them.

However, it is unlikely to be plain sailing for Japanese exporters. There remain concerns about power shortages ahead, particularly during the peak summer month of August.

Economists also highlight worries over external demand that could hamper a full recovery for manufacturers. Markets have been concerned for some time about a slowdown in the US and China, while huge uncertainties surrounding the eurozone debt crisis raise questions over future demand for Japan's exports.

"We see a cloud over external demand that should be regarded as a downside risk for exports over the medium term," said Chiwoong Lee at Goldman Sachs. The US bank has cut its forecast for US growth this year to 2.3 per cent from 2.5 per cent.

Kyohei Morita, an economist at Barclays Capital, said that concerns about a global slowdown are valid but that he does not expect a decline that would derail a recovery in exports. He added that although the Chinese government is taking measures to rein in inflation, policy could become more stimulative ahead of next year's National Congress of the Communist Party. Combined with expectations for lower power constraints at the end of the year, the Japanese economy should experience a V-shaped recovery in early 2012, he said.

A strong yen is another cause for concern among Japan's exporters. The currency has appreciated close to levels not seen since the G7 intervention in March when the yen shot up to a record of Y76.25 against the US dollar following the natural disaster. This makes exported Japanese goods less competitive and adds pressure to companies to shift more production overseas.

The yen was trading at Y78.70 against the dollar as of midday in Tokyo.

© The Financial Times Limited 2011

Quoting : CNN

PM denies any 'inappropriate' BSkyB talk

Cameron: 'You ought to listen'A law firm used by News International is authorized to talk to the police and lawmakersThe number of officers investigating phone hacking has been boosted to 60Cameron denies inappropriate conversations over News Corp.'s bid to take over BSkyBThe Home Affairs Committee criticizes News International and police in a scathing report

London (CNN) -- Prime Minister David Cameron told British lawmakers during a heated session Wednesday that if he had known then what he knows now about his one-time communications director, former News of the World editor Andy Coulson, he would not have hired him.

Cameron faced more than 130 questions as he made a statement to the House of Commons, where members of Parliament grilled him over his relationships with those at the heart of a phone-hacking scandal at the News of the World. That was Britain's largest Sunday newspaper until it was closed July 10 amid a controversy that has riveted Britain and unfolded at a dizzying pace in the past two weeks.

Cameron's appearance in Parliament grew so contentious that legislators were reminded at least twice to be quiet and let the prime minister have his say. It shifted the focus squarely to the political realm, a day after dramatic testimony that focused on the actions of media executives.

News of the World journalists are accused of hacking into the voice mail of potentially thousands of people and of bribing police. The scandal has rattled the foundations of the British press, police and political establishments.

In the House of Commons, lawmakers repeatedly questioned Cameron over his relationship with senior executives at Rupert Murdoch's News Corp., whose British arm, News International, owned News of the World. He also faced sharp questions about his knowledge of the phone-hacking claims and his judgment in hiring Coulson.

The rowdy special session -- which was followed by a general debate on public confidence in media and the police -- came hours after Parliament's Home Affairs committee issued a scathing report about the scandal.

Legislators said in the report that they "deplored" obstruction by News International when lawmakers first tried to probe accusations of illegal eavesdropping by journalists working for Murdoch. The report also criticized police for failing to investigate the case properly.

News International said in a statement late Wednesday that the law firm Harbottle and Lewis had been authorized to answer questions from the police and parliamentary committees.

Earlier, John Whittingdale, chairman of Parliament's Culture, Media and Sport Select Committee, told lawmakers that News International had refused to release the law firm -- which holds papers related to the phone-hacking claims -- from its duty of client confidentiality.

Questioned about his ties to those involved in the scandal, Cameron denied having had "inappropriate conversations" about Murdoch's efforts to take full ownership of British satellite broadcaster BSkyB in meetings with executives of News Corp.

Cameron also insisted that Coulson should be considered "innocent until proven guilty" of phone hacking or of hiding it while at News of the World. If Coulson lied about it, Cameron said, he should be prosecuted.

Coulson, who resigned his government post in January, has since been arrested.

Cameron's decision to hire Coulson left the prime minister "hamstrung by a conflict of interests" when police began investigating allegations of illegal phone hacking by the News of the World, said opposition leader Ed Miliband.

Miliband urged Parliament to ensure that the aftermath of the scandal does not turn out to be "an event where the whirlwind blows through and nothing really changes."

Opposition politicians also accused Cameron of failing to give a straight answer over whether he had discussed News Corp.'s BSkyB takeover bid, which has since been dropped, with officials, including News International's former chief executive Rebekah Brooks.

Cameron, in turn, sought to deflect the pressure by saying the previous Labour government had done nothing to take responsibility for misconduct that occurred while it was in power and was instead presenting a "litany of rather pathetic conspiracy theories to try and win a political game."

The prime minister has formed a committee, composed of civil rights campaigners and former top journalists, to take part in a wide-ranging inquiry into phone hacking and other illegal practices by journalists.

The "torrent of revelations and allegations" has shaken public trust in the media, in police and in politicians, Cameron told lawmakers. "People desperately want us to put a stop to the illegal practices," he said.

The committee will be able to summon witnesses who will testify under oath, he said.

Shami Chakrabarti, director of the human rights group Liberty, will serve as a panel member of the judicial inquiry, Liberty said Wednesday. She called her acceptance of the role "a vote of confidence in the vital role of independent judicial process in times of national difficulty."

Senior police officer Sue Akers said Wednesday that the number of officers and staff working on the latest investigation into phone hacking, known as Operation Weeting, had been boosted from 45 to 60.

The Home Affairs Committee's report, released Wednesday, criticized News International, the police and ministers who failed to pursue concerns raised by previous investigations.

"We are astounded at the length of time it has taken for News International to cooperate with the police but we are appalled that this is advanced as a reason for failing to mount a robust investigation," it said.

Within the Metropolitan Police, it cited former Assistant Commissioner Andy Hayman, who led a previous phone-hacking investigation, and John Yates, who resigned Monday as assistant commissioner after coming under fire over his failure to reopen the investigation.

The committee described Hayman's conduct as "unprofessional and inappropriate," while Yates' decision in 2009 "not to conduct an effective assessment of the evidence in police possession was a serious misjudgment," it said.

The committee's report names neither the elder Murdoch nor his son James, a top executive for News International and News Corp.

Rupert Murdoch left the United Kingdom on Wednesday, News International told CNN, a day after he and his son testified before a different Parliament committee.

Earlier, News Corp.'s Management and Standards Committee, set up in the wake of the scandal, said it had stopped paying legal fees for Glenn Mulcaire -- the private investigator accused of carrying out mass phone hacking for News of the World.

News Corp.'s payment of Mulcaire's fees was raised by members of a parliamentary committee who questioned the Murdochs on Tuesday.

Australian Prime Minister Julia Gillard weighed in Wednesday on the controversy, saying the Australian arm of Murdoch's empire, News Ltd., had "hard questions" to answer.

"When there has been a major discussion overseas, when people have seen telephones hacked into, when people have seen individuals grieving have to deal with all of this, then I do think that causes us to ask some questions here in our country," Gillard said.

Rupert Murdoch e-mailed employees of News Corp. on Tuesday to say he was "shocked and appalled" by the allegations of phone hacking and police bribery by journalists working for his News of the World tabloid.

"I have never tolerated the kind of behaviour that has been described over these past few weeks. It has no place at News Corporation," he wrote after testifying Tuesday.

Both Murdochs said they are not to blame in the scandal, which has raised questions of how much top executives knew about illegal phone hacking and when.

Testy exchanges peppered Tuesday's nearly three-hour session, as the father and son were pressed for answers on who may have authorized or known of reporters' hacking of voice mails.

Asked by one lawmaker, "Do you accept that ultimately you are responsible for this whole fiasco?" Rupert Murdoch responded: "No."

After declaring it was "the most humble day of my life," the elder Murdoch let James Murdoch do most of the talking. When called upon, Rupert Murdoch said he knew little of the day-to-day details of his holdings and that he might hear more from a News of the World editor about extra soccer coverage than a payout to a phone-hacking victim.

Asked whether he had considered resigning, Rupert Murdoch replied: "No, because I feel that the people I trusted, I don't know at what level, let me down and I think they behaved disgracefully, betrayed the company and me, and it's for them to pay."

He added, "I think that frankly I'm the best person to clear this up."

The Culture, Media and Sport Select Committee also heard from Brooks, who had previously worked as the editor of News of the World. She testified she never paid a police officer or sanctioned a payment to the police. Journalists at News of the World are accused of bribing police to get private details about people, including members of the royal family.

She resigned July 15 over the scandal and was arrested and questioned by police two days later. Her lawyer, Steven Parkinson, said Monday his client is not guilty of any crime.

The scandal began with the phone-hacking claims involving reporters from News of the World -- which led its parent company, News Corp., to shut the paper -- and quickly broadened into allegations that journalists had paid police for confidential information.

Murdoch's News Corp. encompasses Fox News, The Wall Street Journal, the New York Post, and Harper Collins publishers in the United States. News International -- a British subsidiary of News Corp. -- owns the Sun, The Times and The Sunday Times in Britain.

CNN's Richard Allen Greene, Laura Smith-Spark, Jonathan Wald, Laura Perez Maestro, Andreena Narayan, Atika Shubert, Anna Stewart, Bharati Naik and Tom Watkins contributed to this report.

Quoting : CNN

Obama may accept short-term debt deal

 Sen. Tom Coburn, R-Oklahoma, rejoined the "Gang of Six" after withdrawing from the group.NEW: Anti-tax crusader says likely deal will contain no tax hikesPresident Obama calls the debt ceiling problem "self-created" in some waysSpokesman puts strict limits on a possible short-term debt-ceiling extensionThe United States must raise its $14.3 trillion debt ceiling by August 2 or risk a default

Washington (CNN) -- President Barack Obama held separate meetings Wednesday with top congressional Democrats and Republicans as part of ongoing talks on a measure that would raise the nation's debt ceiling by August 2 to avoid a government default.

With time running out to reach an agreement, the possibility of a comprehensive deficit-reduction deal sought by Obama appeared less likely, with the president and Congress instead being forced to focus on a narrower goal of increasing the government borrowing limit in the next 13 days so it can pay its bills after August 2.

At his daily briefing, White House Press Secretary Jay Carney signaled to reporters that Obama would be willing to accept a short-term increase in the debt ceiling -- which caps the amount of money the government can borrow -- if it is tied to agreement by both parties on a broader deficit reduction deal sought by the president.

Obama previously rejected such a short-term increase in the debt ceiling, and Carney's remarks sought to bolster support for a compromise in the talks as the deadline for default nears.

"We believe a short-term extension absent an agreement to a larger deal is unacceptable," Carney said.

He later issued a statement on the matter that said Obama opposes a short-term extension of the debt limit, but "the only exception to that is in the event that both sides reach a deal on a long-term extension of the debt limit plus significant deficit reduction, and we needed a very short-term extension (like a few days) to allow a bit of extra time for a bill to work its way through the legislative process."

So far, the main sticking point in negotiations has been Republican refusal to accept increased tax revenue sought by Obama and Democrats as part of a deal. Spurred by conservatives elected with tea party backing, Republicans seek to shrink the size of government through spending cuts while either keeping tax revenues where they are now or reducing them through a reformed system.

A bipartisan group of U.S. senators who have unveiled a $3.7 trillion debt reduction plan. Its members are: Republicans: Saxby Chambliss of Georgia, Mike Crapo of Idaho and Tom Coburn of Oklahoma.
Democrats: Dick Durbin of Illinois, Kent Conrad of North Dakota and Mark Warner of Virginia.

Obama argues for a balanced approach that includes spending cuts and increased tax revenues to enable the government to continue what he calls critical spending for future economic growth in education, infrastructure development and clean energy.

In addition, Republicans are linking proposals to shrink the mounting federal deficit to getting their support for raising the federal debt ceiling, while Obama and Democrats say the two issues should be separate to prevent politics from affecting the U.S. credit rating in the event of a government default.

Anti-tax crusader Grover Norquist, whose Americans for Tax Reform is spearheading Republican opposition to any tax increase, told CNN on Wednesday that a likely deal will mean "the president will get less money than he wanted, the Republicans will get less spending cuts than they wanted, but it won't raise anybody's taxes."

Top Democrats from both chambers met with Obama for about 50 minutes on Wednesday afternoon. Later, the top two House Republicans -- Speaker John Boehner and Majority Leader Eric Cantor -- met with the president for about 80 minutes.

Boehner then gathered with members of his staff and six first-term House Republicans -- elected in last year's tea party-backed conservative wave -- for talks over pizza in a Capitol building conference room.

Earlier, Democratic and Republican sources confirmed that the top four House leaders -- Boehner, Cantor, Minority Leader Nancy Pelosi and No. 2 Democrat Steny Hoyer -- had their own meeting to discuss proposals to raise the debt ceiling.

The White House meetings came a day after Senate negotiators from both parties, the so-called "Gang of Six," unveiled the possible compromise plan, and the House voted 234-190 almost completely on party lines to pass a tea party-inspired "cut, cap and balance" bill dismissed by Obama and Democrats.

Key administration and congressional officials are currently focused on the new bipartisan $3.7 trillion debt reduction plan by the "Gang of Six" -- the latest effort to avoid a potentially catastrophic default next month on the federal government's financial obligations.

Obama has offered strong praise for the initiative, calling it "broadly consistent" with his own approach to debt reduction because it mixes tax changes, entitlement reforms and spending reductions. However, Carney made clear Wednesday that Obama was not adopting the plan outright, and that further negotiations on specific provisions would be necessary.

Senate Democratic leaders have expressed skepticism that they will be able to increase the debt limit and pass the "Gang of Six" plan by the looming August 2 deadline.

If Congress fails to raise the current $14.3 trillion debt ceiling by that date, Americans could face rising interest rates, a declining dollar and increasingly jittery financial markets, among other problems.

The seriousness of the overall situation was reinforced last week when a major credit-rating agency, Standard and Poor's, said it was placing the United States' sovereign rating on "CreditWatch with negative implications." Another major agency -- Moody's Investors Services -- said it would put America's bond rating on review for a possible downgrade.

In an interview Wednesday with KMBC-TV of Kansas City, Missouri, Obama called the situation "a self-created crisis in some ways" because of political intransigence.

"It has to do with folks who are digging into set positions rather than saying how do we solve a problem," Obama said.

The House Republicans' "cut, cap and balance" bill would raise the debt ceiling while imposing strict caps on all future federal spending and making it significantly tougher to raise taxes -- the solution favored by hard-line conservatives.

The bill -- which also requires Congress to pass a balanced budget amendment to the Constitution before raising the debt ceiling -- has little chance of clearing the Democratic-controlled Senate or surviving a certain presidential veto.

The Tuesday vote did, however, allow rank-and-file Republicans to clearly demonstrate their preference for steps favored by many in the tea party movement even as their leadership seeks a middle ground with Democrats.

"While President Obama simply talks tough about cutting spending, House Republicans are taking action," Boehner, R-Ohio, said in a statement after the vote.

Obama said before the vote that legislators "don't have any more time to engage in symbolic gestures."

"We have a Democratic president and administration that is prepared to sign a tough package that includes both spending cuts (and) modifications to Social Security, Medicaid and Medicare that would strengthen those systems and allow them to move forward, and would include a revenue component," Obama added. "We now have a bipartisan group of senators who agree with that balanced approach. And we've got the American people who agree with that balanced approach."

Obama also refused to rule out a fallback plan proposed by Senate Minority Leader Mitch McConnell, R-Kentucky, that would raise the debt ceiling up to $2.5 trillion through the 2012 election. Carney said the McConnell plan, now being worked out with Senate Majority Leader Harry Reid, D-Nevada, is not the preferred option but must be ready to go in case a bigger deal proves unattainable.

Under the "Gang of Six" plan -- put together by three Democrats and three Republicans -- $500 billion in budget savings would be immediately imposed, with marginal income tax rates reduced and the controversial alternative minimum tax ultimately abolished.

The plan would create three tax brackets with rates from 8% to 12%, 14% to 22%, and 23% to 29% -- part of a new structure designed to generate an additional $1 trillion in revenue. It would require cost changes to Medicare's growth rate formula, as well as $80 billion in Pentagon cuts.

Sen. Tom Coburn, R-Oklahoma, announced Tuesday that he had decided to rejoin the group. Coburn had recently withdrawn due to a dispute over entitlement cuts, but declared Tuesday that the plan, which now includes $116 billion in entitlement health care cost savings, has "moved significantly, and (is) where we need to be."

The other members are Republican Sens. Saxby Chambliss of Georgia and Mike Crapo of Idaho, and Democratic Sens. Dick Durbin of Illinois, Kent Conrad of North Dakota and Mark Warner of Virginia.

Other legislators supporting the plan included two conservative Republicans -- Sen. Lamar Alexander of Tennessee and Rep. Roger Wicker of Mississippi -- while another GOP conservative, Sen. Jeff Sessions of Alabama, raised questions about whether it achieves necessary spending cuts and raises taxes.

"We don't have 60 votes, but we're moving toward it," Durbin, the Senate majority whip, told reporters Wednesday, referencing the number of votes necessary to overcome a potential filibuster and win Senate approval.

A spokesman for Boehner said Tuesday the "Gang of Six" plan is similar in concept to what Boehner and Obama had discussed in their negotiations so far, "but also appears to fall short in some important areas."

Other House Republican leaders, including Majority Leader Eric Cantor of Virginia and Budget Committee Chairman Rep. Paul Ryan of Wisconsin, also questioned the plan's call for increased tax revenue and commitment to reducing future costs.

Asked about such resistance to the plan's tax provisions, Chambliss said Wednesday that those raising questions "need to read the plan."

Meanwhile, Durbin pointed out that the plan still must be drafted into legislative language and analyzed by the Congressional Budget Office before it can be considered.

Reid said he's open to incorporating some elements of the proposal into the fallback bill he is working out with McConnell.

Several new public opinion polls, meanwhile, show that a majority of Americans want legislators to forge a comprehensive deal that includes spending cuts and tax hikes instead of refusing to yield from their starting positions.

At the heart of the tax dispute has been Obama's call for more revenue by allowing tax cuts from the Bush presidency to expire at the end of 2012 for families making more than $250,000. The president's ideal plan would keep the lower tax rates for Americans who earn less.

Obama noted last week he is not looking to raise any taxes until 2013 or later. In exchange, the president said, he wants to ensure that the current progressive nature of the tax code is maintained, with higher-income Americans assessed higher tax rates.

But resistance to higher taxes is now a bedrock principle for most Republicans, enforced by conservative crusaders such as Norquist. His group has sponsored a high-profile pledge to oppose any tax increase. The pledge has been signed by more than 230 House members and 40 senators, almost all of them Republicans.

Despite their differences, leaders from both parties insist they are committed to reaching an agreement that will allow them to raise the debt ceiling before August 2. McConnell's fallback proposal would give Obama the power to raise the borrowing limit by a total of $2.5 trillion, but also require three congressional votes on the issue before the 2012 general election.

Specifically, Obama would be required to submit three requests for debt ceiling hikes -- a $700 billion increase and two $900 billion increases. Along with each request, the president would have to submit a list of recommended spending cuts exceeding the debt ceiling increase. The cuts would not need to be enacted in order for the ceiling to rise.

Congress would vote on -- and presumably pass -- "resolutions of disapproval" for each request. Obama would likely veto each resolution. Unless Congress manages to override the president's vetoes -- considered highly unlikely -- the debt ceiling would increase.

The unusual scheme would allow most Republicans and some more conservative Democrats to vote against any debt ceiling hike while still allowing it to clear.

McConnell and Reid are also working on two critical additions to the plan, according to congressional aides in both parties. One would add up to roughly $1.5 trillion in spending cuts agreed to in earlier talks led by Vice President Joe Biden; the other would create a commission meant to find more major spending cuts, tax increases and entitlement reforms.

Changes agreed to by the commission -- composed of an equal number of House and Senate Democrats and Republicans -- would be subject to a strict up-or-down vote by Congress. No amendments would be allowed.

Sources say the panel would be modeled after the Base Closing and Realignment Commission, which managed to close hundreds of military bases that Congress could not otherwise bring itself to shut down.

CNN's Ted Barrett, Kate Bolduan, Lisa Desjardins, Paul Steinhauser, Deirdre Walsh, Xuan Thai and Jessica Yellin contributed to this report.

Quoting : CNN

Warren Jeffs to represent himself in sexual assault trial

Polygamist leader Warren Jeffs declined to give an opening statement Thursday after firing his attorneys in his sexual assault trial.NEW: Warren Jeffs says FBI agents "touched ... sacred" objects in a 2008 raidNEW: Representing himself, Jeffs repeatedly interrupts prosecutors in the caseJeffs fired his lawyers Thursday, but then declined to give an opening statementThe sect leader is being tried for sexual assault; he's also been charged with bigamy

San Angelo, Texas (CNN) -- Polygamist sect leader Warren Jeffs ended his self-imposed silence at his sexual assault trial Friday, repeatedly interrupting prosecutors and launching into a diatribe on religious freedom while acting as his own one-man defense team.

The defendant is charged with two counts of sexual assault on a child and one count of bigamy stemming from a 2008 raid on a ranch near Eldorado, Texas, run by his church, the Fundamentalist Church of Jesus Christ of Latter-Day Saints. This month's trial addresses the first two counts, as Jeffs is expected to be tried later on the bigamy charge.

Several people took the stand Friday in San Angelo, Texas, including a doctor who conducted DNA tests on one of Jeffs' alleged sexual assault victims and her baby; a Texas child protective services agent who took part in the raid; and an FBI agent who took various items from the ranch.

Representing himself, Jeffs interrupted when FBI agent Jeff Broadway began to describe what he found on a computer seized in the raid. Broadway said the computer contained lists of people living at the ranch, including their names, ages and birthdays.

Jeffs then spent about an hour objecting to Broadway's testimony on the grounds that it violated religious freedom, claiming the FBI agents "touched upon what we find sacred to salvation."

"This must stop, in a land ... where we maintain the constitutional right of religious freedom," he said. "We are not a fly-by-night religious organization that just appeared within your borders. Mockery must seize. This is sacred to us, and must remain sacred."

But prosecutors responded that Jeffs' First Amendment arguments were not valid in this case. Over frequent interruptions by Jeffs -- including more than six in a row -- they argued that freedom of religion does not extend to polygamy or infringing on a child's rights.

Eventually, Judge Barbara Walther asked the jury to leave the courtroom. She then urged Jeffs to seek the advice of his available defense counsel, who remained on hand despite his successful attempt on Thursday to fire them so that he could represent himself.

The religious leader had argued Thursday that he felt no counsel could adequately represent him, saying it was necessary "for true justice to be served."

Walther granted the request, but did not push back the plan to have opening arguments later that afternoon.

Prosecutor Eric Nichols told jurors that they would hear an audiotape documenting the sexual assault of a 12-year-old girl. He also promised to present DNA evidence proving that Jeffs fathered a baby girl with a 14-year-old girl.

But when the time came for Jeffs -- who had been verbose earlier in the day -- to talk, he instead sat quiet. He remained that way, with his head down, for about a minute as jurors looked back and forth between him and the judge.

Walther said she understood that, by Jeffs' silence, he had chosen not to give a statement. Then she gave prosecutors the go-ahead to start calling witnesses.

The judge previously had told jurors that she expected the trial could last two to three weeks. But that was before Jeffs won the right to represent himself.

On Friday, prosecutors said that they had worked late into the night readjusting their approach and vowed to rest their case by next Tuesday.

Jeffs' breakaway sect is believed to have about 10,000 followers. Their practice of polygamy, which the mainstream Mormon Church renounced more than a century ago, is part of their doctrine.

The sect's leader, Jeffs, was on the FBI's 10 Most Wanted list when he was arrested five years ago during a routine 2006 traffic stop in Las Vegas.

He was convicted in Utah of two counts of being an accomplice to rape, for using his religious influence over his followers to coerce a 14-year-old girl into marrying her 19-year-old cousin. Afterward, he was sentenced to two consecutive prison terms of five years to life.

But in July 2010, the Utah Supreme Court overturned his convictions, ruling that the jury instructions were erroneous. Utah Attorney General Mark Shurtleff told HLN this week that he would be open to putting Jeffs on trial again in his state.

Meanwhile, the Texas legal proceedings were set off after about 400 children were taken from the sect's Yearning for Zion ranch in 2008. Child protection officials said they found a "pervasive pattern" of sexual abuse on the ranch through forced marriages between underage girls and older men.

But the Texas Supreme Court ruled the state had no right to remove the children. The court also said the state lacked evidence to show that the children faced imminent danger of abuse. Most of the children were returned to their families, although some men at the ranch were charged with sexual abuse.

In Session's Jim Kyle contributed to this report.

Quoting : CNN.com

Tesla shares pop on $100 million Toyota deal

NEW YORK (CNNMoney) -- Shares of Tesla Motor jumped nearly 5% on Wednesday after the company disclosed a $100 million deal with Toyota to provide parts for an electric version of the Rav4.

Tesla will provide an "electronic power train system" for Toyota's crossover SUV, which is expected to start production next year, according to a regulatory filing.

Shares of Tesla rose $1.30, or 4.6%, to $29.19 in afternoon trading. Toyota's stock was flat a $84.30 a share.

Under the agreement disclosed Wednesday, Tesla will supply Toyota with all the parts necessary to power an electric Rav4, including a battery, charging system, inverter, motor, gearbox and software.

Tesla (TSLA) will also provide certain services related to the company's battery and powertrain technology.

The Japanese auto giant announced plans to invest $50 million in the boutique electric carmaker last year as part of a partnership to develop new technology.

Toyota (TM) did not immediately respond to a request for comment.

The two automakers announced plans last year to produce an electric Rav4, but they had not previously disclosed the agreement's financial terms.

Tesla currently sells the Tesla Roadster, a two-seat electric sports car that goes for over $100,000. In 2012, the company plans to begin production of the Model S, an electric sedan capable of seating up to seven people. That car will be built at a Fremont, Calif., plant that had been jointly operated by Toyota and General Motors (GM, Fortune 500) prior to GM's bankruptcy.

Toyota used an earlier version of the Rav4 as an electric vehicle in the 1990s during a time that California required automakers to sell vehicles with engines that produced zero emissions. That electric Rav4 competed against GM's EV1 electric car.

Some of those electric Rav4s are still in operation, including several that Toyota uses at its Newark, N.J., port facilities.

Toyota, which is already the industry sales leader in gas-electric hybrid cars, is also looking for other partners to develop future alternative fuel technologies. In fact, executives have said they expect collaboration with other companies to be a key part of Toyota's alternative fuel strategy.

Toyota executives have, in the past, expressed doubts about the market potential for purely electric cars. They cited the vehicles' high cost, relatively short driving distance, long charging times and questionable battery technology.

Last year, Toyota revealed a concept version of a tiny electric "city car" with a 40-mile range. That car was under development, Toyota said at the time, and intended primarily for short-term rental use within cities.

Toyota plans to introduce a plug-in version of the Toyota Prius hybrid in 2011, but that vehicle would still use a gasoline engine as its primary power source.

-- CNNMoney senior writer Peter Valdes-Dapena contributed to this report.  

Quoting : CNN

Intel reports record sales - again

NEW YORK (CNNMoney) -- If the PC is dead, Intel hasn't gotten the memo.

The world's largest microchip maker stared down strong headwinds in its bread and butter personal computer business, and grew sales in that segment by 11%.

That's quite an accomplishment, considering U.S. PC shipments fell 5.6%, compared to the same three-month period a year ago, according to a closely followed study by Gartner. Worldwide PC shipments grew just 2.3%.

The consumer PC market had been growing strongly for years, driven primarily by the rise of low-priced netbooks, most of which featured Intel's Atom processor, designed for smaller devices.

But that segment of the market is being replaced by the iPad and other tablets, which Intel has struggled to get its chips into. Atom sales fell 15% in the quarter.

Intel's CEO Paul Otellini said on a conference call with investors that the consumer business remains mixed: PC sales in emerging markets like East Asia and Latin America are growing strong, but sales remain soft in more mature markets like the United States and Europe.

Corporate PC sales remained strong, Intel said, since many companies are in the midst of a so-called "hardware refreshment cycle." Businesses are buying up a slew of new PCs to replace their aging ones.

Otellini said the company is feeling "increasing confidence" about the second half of the year, and he predicted "modest growth" of 8% to 10% for 2011. That's down a bit from the company's previous forecast, but in line with Gartner's expectations of a 9.3% rise.

Intel expects PC-related revenue, however, to grow even stronger, as customers are buying computers with more powerful processors. Intel's chips are in about 80% of the world's PCs.

Shares of Intel (INTC, Fortune 500) were down very slightly after hours after initially rising.

Analysts still expressed concern that Intel has struggled to take advantage of the rapidly growing smartphone market. Though the company has some exposure to mobile devices via its cloud computing business, Intel lacks the direct presence in the mobile market held by companies like Qualcomm and ARM Holdings (ARMH), the British chip designer whose processors are used by Apple (AAPL, Fortune 500) and other smartphone vendors.

Intel maintains that its chips will start appearing inside smartphones next year.

Rival Qualcomm (QCOM, Fortune 500), which is the largest mobile phone chipmaker, raised its outlook Wednesday after reporting quarterly profit and sales that exceeded analysts' expectations.

The Santa Clara, Calif.-based company said its net income in the second quarter rose to $3 billion, or 54 cents per share, up 2% from a year earlier.

Results included a one-time charge of 5 cents per share. Without the charge, Intel said it earned 59 cents per share. Analysts polled by Thomson Reuters, who typically exclude one-time items from their estimates, forecasted earnings of 51 cents per share.

Sales for the company rose 21% to a record $13 billion, topping forecasts of $12.8 billion. It was Intel's fifth consecutive quarter of record revenue.

Otellini said the company expects to grow annual revenue in the "mid-20% range," in-line with analysts' expectations of 22% annual growth.

Intel's chief PC microchip rival, AMD (AMD, Fortune 500), is scheduled to release its results tomorrow. 

First Published: July 20, 2011: 4:42 PM ET

Quoting : CNN

Nigerian oil firm takes on global players

Seawolf Oilfield Services CEO Adolor UwamuNigerian oil exports worth $59 billion last yearSeawolf Oilfield Services is Nigeria's only offshore drilling contractorSeawolf CEO says there are not enough skilled Nigerians in oil and gas industry

(CNN) -- Nigeria is Africa's top oil producer, with exports worth $59 billion last year, but the industry has long been dominated by foreign players.

Overseas corporations, with a multinational workforce, have traditionally been chosen to carry out drilling operations, but one company bucking the trend is Seawolf Oilfield Services, Nigeria's only offshore drilling contractor.

CNN's Robyn Curnow sat down with Adolor Uwamu, CEO of Seawolf, to discuss the challenges of doing business in Nigeria and competing with the big boys of oil production.

CNN: You're one of the few African players in this business in Nigeria -- why is that?

Adolor Uwamu: It's a capital intensive business -- a business of high complexity -- and drilling rigs cost quite a bit of money.

It's a business that has been controlled and operated by, I would say, about five to seven global players worldwide who operate in different regions of the world but mostly American and European.

CNN: Why did you start (Seawolf)? Surely there are easier ways to make money?

AU: Because there was an opportunity for Nigerians to get into the business. Nigeria is the seventh or eighth-largest producer of oil in the world. It's the major industry in Nigeria and Nigerians are not actively in the business.

For the last 40 years oil and gas drilling in Nigeria has been undertaken by the global players.
--Adolor Uwamu, CEO Seawolf Oilfield Services

We're not involved in the business at the sufficient level that we should be. For the last 40 years oil and gas drilling in Nigeria has been undertaken by the global players.

CNN: Has the Nigerian government now said: "Listen, we need more local people in our industries?"

AU: The Nigerian government has greatly encouraged the participation of local players in the industry across the spectrum of services. Not just in drilling but in other services in the oil and gas business.

That encouragement is providing the environment for Nigerians to increase their skills and increase their participation, which has overall benefits for the economy.

CNN: But it's still about the private sector actually financing this and actually fueling this opportunity isn't it? The government can only do so much.

AU: That is correct, the government will provide the enabling environment which is what they're doing, but they need the participation and cooperation of the private sector to finance the participation in the industry.

CNN: What for you is the biggest challenge?

AU: The biggest challenges for us has been developing the talent that is required at that global level.

CNN: So there's just not enough skilled Nigerians to work on your oil rigs?

AU: There are not enough skilled Nigerians in general in the oil and gas industry, which is the issue that the government is trying to correct by encouraging and putting in place the enabling environment to increase the Nigerian participation.

The reason why there's not been sufficient Nigerian involvement is because historically there's a lot of transfer of talent globally from the more established Western countries working in Nigeria. The result of that over years is not enough participation by Nigerians in the industry.

CNN: Do you think Nigeria has failed to capitalize on the opportunities oil could have offered ordinary Nigerians?

AU: I wouldn't agree with that, I would say that we've been less than optimal in our management over oil resources but we haven't missed the boat. There are still opportunities.

I would say in the last couple of years we've done well in terms of monetizing our gas resources and now I believe the government should focus on revamping the downstream industry, ensuring that the refineries work, increase the refining capacity in the country.

CNN: That's key, isn't it?

AU: It is key, because what it does is it prevents us from importing refined petroleum products, which is less than an optimal situation when you're the seventh-largest producer of crude oil in the world.

Quoting : CNN

Sources: U.S. deal over debt emerging

NEW: Congressional Democratic leaders meet for almost two hours with ObamaSources say a $3 trillion deficit-reduction plan is under discussionThe White House spokesman denies a report that Obama and Boehner are close to a dealThe United States must raise its $14.3 trillion debt ceiling by August 2 or risk a default

Washington (CNN) -- President Barack Obama is continuing to pursue the most "significant deficit reduction package possible," White House Press Secretary Jay Carney said Thursday, the latest indication officials are keeping a variety of options open while trying to hammer out an agreement to raise the nation's debt ceiling and avoid an unprecedented default.

The president and Vice President Joe Biden met for almost two hours Thursday with Democratic leaders from the House and Senate as sources indicated the negotiations were focusing on a deal to cut $3 trillion in federal deficits over the next 10 years that would be accompanied by a debt ceiling increase.

According to the congressional aides who spoke on condition of not being identified, the possible deal remains in limbo over a disagreement on whether to extend Bush-era tax cuts for families earning more than $250,000 a year. Nothing has been agreed to yet, they noted.

The possible deal would include spending cuts expected to total $1 trillion or more agreed to in earlier negotiations led by Vice President Joe Biden, the sources said. It also would reform entitlement programs by changing the eligibility age for Medicare over time, and using a more restrictive inflation index for Social Security benefits, according to the sources.

On taxes, it would permanently extend the Bush tax cuts for families earning less than $250,000 while allowing the cuts to expire at the end of 2012 for those with income above that, the aides said. At the same time, the deal would include a commitment to reform the tax code next year, which is expected to lower all tax rates and eliminate loopholes and subsidies, the sources said.

However, House Speaker John Boehner, R-Ohio, wants the deal to make all of the Bush tax cuts permanent while keeping the commitment to tax reform, the sources said. Republicans oppose any tax hikes, and their resistance has been a major obstacle to any deal in the negotiations so far.

Some sources said the deal would work in two stages, with spending cuts and a debt ceiling increase occurring right away while entitlement reforms and tax reforms would occur later.

Earlier, Carney denied a report by the New York Times that Obama and Boehner were close to reaching a deal.

"There is no deal. We are not close to a deal," Carney told reporters. "There is no progress to report."

A spokesman for Boehner's office echoed Carney, denying any reportable progress. House Majority Leader Eric Cantor, R-Virginia, told reporters he was "unaware of any deal that has been struck."

Other signs pointed to possible movement in the talks. Carney signaled to reporters earlier in the week that Obama may now be willing to sign a short-term debt limit extension if Democratic and Republican leaders are close to agreement on a broader deficit reduction deal that includes both tax hikes and spending reforms.

Obama previously indicated he would veto any short-term extension.

Boehner huddled with some Republican freshmen after meeting with Obama on Wednesday night, and is set to hold a previously unannounced meeting with the entire House GOP caucus Friday. He told reporters Thursday that while some House Republicans wouldn't compromise, he didn't believe they "would be anywhere close to the majority."

The highly contentious negotiations -- reflecting the core ideological beliefs of both parties -- have now become a race against the clock. If Congress fails to raise the $14.3 trillion limit by August 2, Americans could face rising interest rates, a declining dollar and increasingly jittery financial markets, among other problems.

The seriousness of the overall situation was reinforced last week when a major credit-rating agency, Standard and Poor's, said it was placing the U.S. sovereign rating on "CreditWatch with negative implications." Another major agency -- Moody's Investors Services -- said it would put America's bond rating on review for a possible downgrade.

"Even if Washington did raise the debt ceiling after just a few harrowing days following a default ... we envisage that the economy could fall quickly back into recession," Standard and Poor's said in a report Thursday.

As congressional leaders searched for a compromise, the Democratic-controlled Senate planned to vote Friday on the so-called "cut, cap and balance" plan passed by the Republican-controlled House this week.

The measure would allow an increase in the debt ceiling only after Congress passes a balanced-budget amendment to the Constitution and imposes both major spending cuts and caps on future spending as a percentage of the country's gross domestic product.

"Cut, cap and balance" is widely acknowledged to have virtually no chance of clearing the Senate or overcoming a promised presidential veto. Voting on it, however, allows Republicans to demonstrate their preference for steps favored by many in the tea party movement.

Lawmakers are also continuing discussions focused on the $3.7 trillion debt reduction blueprint put forward by the "Gang of Six," a group of three Democratic and three Republican senators.

Under the group's proposal, $500 billion in budget savings would be immediately imposed, with marginal income tax rates reduced and the controversial alternative minimum tax ultimately abolished.

The plan would create three tax brackets with rates from 8% to 12%, 14% to 22%, and 23% to 29% -- part of a new structure designed to generate an additional $1 trillion in revenue. It would require cost changes to Medicare's growth rate formula as well as $80 billion in Pentagon cuts.

Obama has praised the plan, calling it "broadly consistent" with his approach to debt reduction because it mixes tax changes, entitlement reforms and spending reductions.

Congressional leaders, however, have warned that there is most likely not enough time to translate the Gang of Six plan into legislation, tie it to a debt ceiling hike and pass it by August 2. In addition, the proposal has been hit with a barrage of criticism from both the right and the left.

Conservatives have complained about some of the plan's tax changes, while liberals have warned it would cut entitlement benefits too deeply.

One huge stumbling block to a bipartisan agreement has been staunch GOP opposition to any form of a tax hike. Over the past several years, resistance to higher taxes has become a bedrock principle for most Republicans, enforced by conservative crusaders such as Grover Norquist. His group -- Americans for Tax Reform -- has sponsored a high-profile pledge to oppose any tax increase.

The pledge has been signed by more than 230 House members and 40 senators, almost all of them Republicans.

A Washington Post editorial Thursday, however, reported Norquist had told the newspaper that allowing the Bush-era tax cuts to expire -- a move worth up to $4 trillion in additional revenue -- would not constitute a violation of the pledge.

Asked to comment on Norquist's interpretation, Boehner said he believes allowing the Bush tax cuts to expire would amount to a tax hike and added: "I've never voted to raise taxes and I don't intend to."

Sen. Chuck Schumer, D-New York, said Republicans should use the opening provided by Norquist to help reach a bipartisan accord.

"This is a coded message from one of the truest believers in the Republican Party that it's time for conservatives to step back from the brink," Schumer said. "Norquist has given us a potential path forward."

Norquist himself sought to clarify his remarks, declaring in an interview with MSNBC that while allowing the Bush tax cuts to expire may not technically violate the pledge, he would still oppose such a move.

If a larger deal cannot be reached, leaders from both parties have indicated they are still willing to consider a version of a fallback plan proposed Senate Minority Leader Mitch McConnell, R-Kentucky.

McConnell's plan would give Obama the power to raise the borrowing limit by a total of $2.5 trillion, but also require three congressional votes on the issue before the 2012 general election.

Specifically, Obama would be required to submit three requests for debt ceiling hikes -- a $700 billion increase and two $900 billion increases. Along with each request, the president would have to submit a list of recommended spending cuts exceeding the debt ceiling increase. The cuts would not need to be enacted for the ceiling to rise.

Congress would vote on -- and presumably pass -- "resolutions of disapproval" for each request. Obama would likely veto each resolution. Unless Congress manages to override the president's vetoes -- considered highly unlikely -- the debt ceiling would increase.

The unusual scheme would allow most Republicans and some more-conservative Democrats to vote against any debt ceiling hike while still allowing it to clear.

McConnell and Senate Majority Leader Harry Reid, D-Nevada, are also working on two critical additions to the plan, according to congressional aides in both parties. One would add up to roughly $1.5 trillion in spending cuts agreed to in the Biden talks; the other would create a commission meant to find more major spending cuts, tax increases and entitlement reforms.

Changes agreed to by the commission -- made up of an equal number of House and Senate Democrats and Republicans -- would be subject to a strict up-or-down vote by Congress. No amendments would be allowed.

CNN's Ted Barrett, Kate Bolduan, Lisa Desjardins, Deirdre Walsh and Jessica Yellin contributed to this report.

Quoting : CNN

Apple's Lion makes a move toward mobile

Apple says Lion, the newest version of its Mac operating system, has 250 new features.Apple's Mac OS X Lion released on Wednesday
The new operating system for Macs adopts features from mobile devices
New system has 250 new features, Apple says

(CNN) -- Lion, the latest version of Apple's operating software for its Mac computers, was released to the public on Wednesday. It's an update that continues to blur the line between software on mobile devices and desktop computers.

Marking the eighth major release of new software for Apple computers, Mac OS X Lion offers 250 new features, according to the company.

With multi-touch gesturing, full-screen app display and access to the Mac App Store built directly into the software, the system was clearly designed to make working on a Mac more similar to working on an iPad.

"Lion is the best version of OS X yet, and we're thrilled that users around the world can download it starting today," said Philip Schiller, Apple's senior vice president of Worldwide Product Marketing, said in a written statement.

"Lion makes upgrading a Mac easier than ever before; just launch the Mac App Store, buy Lion with your iTunes account, and the download and install process will begin automatically."

Walt Mossberg of All Things Digital called Lion Apple's "most radical new MacIntosh operating system in years," calling it a "giant step in the merger of the personal computer and post-PC devices like tablets and smartphones."

The new system, however, does not run iPhone or iPad apps (at least, not yet) and it does run Adobe Flash -- something Steve Jobs and company have summarily banished from their mobile devices.

Its touch features use a touchpad, making them similar, but not exactly the same, as what iPhone and iPad users may be used to on their touchscreens.

Mossberg said he likes the system, but warned that new users may suffer during their transition.

"Switching to Lion will require a major adjustment even for veteran Mac users, though it will be easier for those who use iPhones or iPads," he wrote. "Lion will significantly increase the learning curve for Windows users switching to the Mac."

Brian X. Chen of Wired wrote that "some of Lion's iOS-like features scale up very well, while others behave very poorly in a desktop environment."

He found the software's iPad-like scrolling feature distracting and dizzying (he eventually disabled it) but said he enjoyed the system's app-opening full-screen mode and praised new sharing and auto-save functions.

Mac OS X Lion is available as a $29.99 upgrade for people with the latest version of the Snow Leopard operating system. It will be available at Apple Stores in August for $69.99.

Lion is the latest in a long line of cat-named operating systems rolled out by Apple for its computers. Past versions have included Cheetah, Puma, Jaguar, Panther, Tiger, Leopard and Snow Leopard.

Whether the king of the jungle marks the last version of feline-named software remains to be seen -- but we're still holding out hope for Jaguarundi.

Quoting : CNN

Google's Eric Schmidt: We were late going social

Google's Schmidt: Company should have focused more on connecting people Google+, the search giant's new online social network, is "a partial answer" to FacebookSchmidt feels "absolutely comfortable" with fall hearing before U.S. antitrust committee

Tokyo (CNN) -- Looking back on his decade as Google's CEO, Eric Schmidt said the company should have focused more on connecting people -- a hole that allowed the emergence of rival internet giant Facebook.

"Fundamentally, what Facebook has done is built a way to figure out who people are. That system is missing in the internet as a whole. Google should have worked on this earlier," Schmidt, now the executive chairman of Google, said in an interview with CNN.

"I think that's the area where I would have put more resources, developing these identity services and ranking systems that go along with that. That would have made a big difference for the internet as a whole."

Three weeks ago, the company rolled out Google+, the search giant's online social network, which Schmidt called "a partial answer" to Facebook. Schmidt would not predict whether Google+ would be a full success or not.

Google+ has a 'celebrity acquisition plan'

But Google+ is off to a promising start, especially with tech-savvy early adopters. It has added 10 million members, Google reported on its quarterly earnings call last week.

"The lesson to be learned in high tech, you need to move through these new phenomena very quickly and you need to get the details right. Otherwise you're left behind," Schmidt said.

Larry Page, co-founder of Google, took over Schmidt's role as CEO earlier this year. Schmidt said the shift in leadership was to speed up decision making, not out of concerns the company was falling behind in innovation.

Tech elite struggling to define Google+

In a swing through Asia-Pacific that brought him into Tokyo on Tuesday, Schmidt hailed the "mobile revolution" in a region that has one of the world's highest rate of mobile users. Yet Google's smartphone operating system, Android, is lagging behind other competitors in the important Asian market.

Android's market share in North America tops 50%, while its share in Asia-Pacific is 34%, according to an analysis by Strategy Analytics. Still, it's growing fast in the region -- last year only 6% of smartphones were powered by Android.

Owning the portable digital space will become increasingly important as computing moves away from PCs.

"The PC, which you remember grew out of the IBM desktop model, if you're sitting in a corporation makes sense for someone who sits at a desk all day. What if people don't?" Schmidt said.

Google+ users are nearly all male

"The new generation of phones is so much more capable. So we're going from a situation where the average citizen didn't have that much power to a point where they can know everything and they can organize very quickly. That may bring down a government as in the case of the Arab Spring, but it may also challenge vested interests in a democracy."

As far as privacy concerns with cell phone location tracking, Schmidt called worries "legitimate." However, Android users have the option of whether to be tracked.

"Ultimately, it's not for us to judge what choice you make. It is up to us to give you that choice," Schmidt said. "In general, real-time location tracking and face recognition will ultimately be pretty heavily regulated because of the possible threat to individual liberty."

Schmidt said he feels "absolutely comfortable" with an upcoming appearance before the U.S. Senate Judiciary Committee's antitrust subcommittee in the fall, which is expected to probe Google's dominance over the web.

"Governments have a proper role to take a look at this and any time a company like Google has the amount of information we have, it's appropriate to review it," he said. "It doesn't bother us. We think there will be more of it. Information is simply too important."

Quoting : CNN

NFL owners agree to deal with players

NFL owners ratify deal to end lockoutPlayers considering terms of revenue-sharing agreementOwners call for the free-agent signing period to begin WednesdayNFL provides details of what owners approvedThe two sides have been at odds since March when the NFL imposed a lockout

Atlanta (CNN) -- National Football League owners approved a 10-year labor and revenue-sharing agreement with players, who were considering the terms Thursday evening.

Owners, meeting in Atlanta, agreed by a 31-0 vote to end the current lockout. Team facilities could be open by Saturday, NFL Commissioner Roger Goodell said, if players approve the deal.

Player representatives were engaged in a conference call Thursday night in which they were expected to discuss the proposal and the recertification of the NFL Players Association, which dissolved after the lockout began in March.

NFL Players Association: 'There is no agreement'

Players, who have several days to ratify the proposal, were reviewing possible sticking points.

New Orleans Saints player Heath Evans, referring to the collective-bargaining agreement, tweeted: "The owners tried 2 slip many things n2 the CBA 'they' voted on that were NEVER agreed 2!"

The proposed collective-bargaining agreement would last through the 2020 season.

"I do feel good" about the prospects of resolving the situation, Falcons player representative Coy Wire told CNN before Goodell announced the terms.

Carolina Panthers majority owner Jerry Richardson called the compromise "fair and balanced."

The proposed agreement includes a new rookie compensation system, a salary cap of $142.4 million per club in 2011 and additional retirement benefits, according to the NFL.

In a bid to reduce injuries, the pact limits practice times and full-contact practices. Clubs receive credit for actual stadium investment and up to 1.5% of revenue each year.

The first preseason game -- the annual Pro Football Hall of Fame Game, between the Chicago Bears and St. Louis Rams -- has been canceled because of the delay in opening camps, Goodell said. It had been scheduled for August 7.

The regular season is set to open on September 8.

The owners call for the free-agent signing period to begin Wednesday.

The league's owners imposed the lockout on March 11, suspending the then-labor deal in hopes of creating a new financial structure.

Athletes Tom Brady, Drew Brees, Peyton Manning and seven others subsequently filed an antitrust lawsuit against the league on behalf of other current and eligible NFL players. A judge in early April joined that action with another filed by retired players.

Since the lockout, the two sides have faced off in courts and around conference tables. The major issues have revolved around how to divide the billions of dollars of revenue reaped via the league each year, rules of free agency, a possible rookie wage scale, retirement benefits and a host of other matters.

The heart of the issue between the players and the owners was how to divide the league's $9 billion in revenue.

Under the old agreement, NFL owners took $1 billion off the top of that revenue stream. After that, the players got about 60%.

The owners said the old labor deal didn't take into account the rising costs related to building stadiums and promoting the game. The players argued that the league has not sufficiently opened up its books to prove this.

CNN's Lateef Mungin, Kevin Conlon, Phil Gast and David Mattingly contributed to this report.

Quoting : CNN