Obama Puts Pressure on GOP in Cliff Talks

WASHINGTON—President Barack Obama sought to increase pressure on Congressional Republicans by attempting to hold them responsible if talks to prevent the so-called fiscal cliff collapse.

Mr. Obama, in an appearance on NBC's "Meet the Press," which was taped Saturday, cast himself as a reasonable broker prepared to make concessions, while depicting GOP leaders as unwilling to let taxes rise on the wealthiest Americans. Many in the GOP make the opposite case, blaming the budget impasse on Democrats, who are blocking any change to the nation's costly entitlement programs.

The president sounded uncertain whether Congress would pass legislation by year's end ...

Global stocks drop, dollar up as "cliff" deadline looms

(Reuters) - World stocks declined, the dollar gained and U.S. shares fell for a fifth day on Friday as the White House and U.S. lawmakers closed in on the "fiscal cliff" deadline with no deal in place.

President Barack Obama and Democratic and Republican lawmakers met Friday as they faced just days to reach a budget deal to avert massive tax increases and spending cuts that could drag the U.S. economy, the world's biggest, into recession.

The two sides are attempting to smooth over sharp differences on raising taxes on the wealthiest Americans and cutting spending on politically sensitive social welfare programs such as Medicare and Medicaid. But investors were skeptical that a deal could be accomplished before the deadline.

The MSCI all-world share index .MIWD00000PUS was down 0.5 percent, and the pan-European FTSEurofirst 300 .FTEU3 ended down 0.6 percent.

In U.S. trading, the Standard & Poor's 500 Index .SPX was down 15.67 points, or 1.11 percent, at 1,402.43, marking a fifth straight decline for the longest losing streak in three months.

The Dow Jones industrial average .DJI was down 158.20 points, or 1.21 percent, at 12,938.11, while the Nasdaq Composite Index .IXIC was down 25.59 points, or 0.86 percent, at 2,960.31.

"There's a pretty good chance that we won't have something in hand by year-end," said Jonathan Golub, chief U.S. equity strategist at UBS, in New York. "It should be pretty obvious that that is now the majority case."

Golub, however, said investors were still counting on a deal that would avoid most of the tax hikes and spending cuts next year even if it does come after the deadline.

Allowing $600 billion of higher taxes and spending cuts to start in January would prevent U.S. debt spilling beyond a $16.4 trillion agreed limit. Analysts fear the measures could wipe as much as 4 percent off the country's growth rate.

Energy companies were among the biggest decliners on Wall Street, with shares of Exxon Mobil (XOM.N) down 2 percent at $85.10 and the S&P energy index .GSPE leading sector losses.

DOLLAR RISES

The U.S. dollar edged up to a two-week high against major currencies as investors waited to see if U.S. politicians can strike a last-minute budget deal.

"Headline risk is likely to remain a driver of FX markets in the near term," said Eric Theoret, FX strategist at Scotia Capital in Toronto.

An agreement on the U.S. budget would be viewed as positive for riskier currencies such as the euro and Australian dollar, while a deadlock is deemed positive for the safe-haven and highly liquid dollar.

Against a basket of currencies at 79.930, the dollar was last up 0.1 percent at 79.665 .DXY.

At the same time, expectations that Japan will inject new stimulus into its economy pushed the yen to yet another two-year low for a third straight day.

The dollar was steady against the yen at 86.06 yen, having earlier risen to 86.63 yen, its strongest since August 2010.

In the U.S. bond market, benchmark Treasury debt prices rose for a third consecutive session on safe-haven buying as the faded hopes for a deal on the fiscal cliff.

Benchmark 10-year notes traded 12/32 higher in price, with yields falling to 1.69 percent, marking the lowest in two weeks and down from 1.73 percent late Thursday. Benchmark notes posted their biggest daily dip in yield in over seven weeks and were down about 8 basis points on the week.

OIL EASES

U.S. February crude slipped 7 cents, or 0.08 percent, to settle at $90.80. Trade was choppy, awaiting news on the U.S. budget talks, but the market was pressured by data showing that fuel stockpiles rose sharply and crude stocks fell less than expected last week.

Brent February crude fell 18 cents, or 0.16 percent, to settle at $110.62.

In other commodity markets, U.S. gold futures for February delivery settled down $7.80, or 0.5 percent, at $1,655.90 an ounce in New York.

Traditionally a safe haven and inflation hedge that investors rush to in times of trouble, gold has lately behaved like a risk asset - often rising and falling with the stock market and sometimes following the dollar.

Obama: Congress must meet fiscal cliff deadline

President Obama used his Saturday radio address toecho his demand that Congress act before the nation falls off a "fiscal cliff" that includes automatic tax hikes and budget cuts.

"You meet your deadlines and your responsibilities every day," Obama told his radio audience. "The folks you sent here to serve should do the same. We cannot let Washington politics get in the way of America's progress."

Obama spoke as Senate Democratic and Republican leaders work this weekend on a package that could be voted on as early as Monday. Any plan must also approved by the Republican-run House.

Tuesday, New Year's Day, marks the start of the fiscal cliff, a series of automatic tax increases and program cuts -- including defense -- that gradually take effect if the parties are unable to reach a new debt reduction agreement. The federal debt now exceeds $16 trillion.

If the Senate cannot strike a deal this weekend, Obama said in his radio speech he will ask the Senate to vote on a "basic package." That plan would maintain unemployment benefits and extend the George W. Bush-era tax cuts for all Americans except those who make more than $250,000 a year.

"I believe such a proposal could pass both houses with bipartisan majorities -- as long as these leaders allow it to come to a vote," Obama said. "If they still want to vote no, and let this tax hike hit the middle class, that's their prerogative. But they should let everyone vote."

In the Republican radio address, Sen. Roy Blunt, R-Mo., said the GOP wants to make sure that a debt reduction doesn't include tax increases that could hurt the economy.

"We still can avoid going over the fiscal cliff if the President and the Democrat-controlled Senate step forward this week and work with Republicans to solve this problem and solve it now," Blunt said.

Senate Majority Leader Harry Reid, D-Nev., and GOP counterpart Mitch McConnell, R-Ky., said they hope to have a plan ready when the Senate and House reconvene Sunday -- two days before New Year's Day and the fiscal cliff deadline. Reid hopes to have a vote on Monday.

India gang-rape suspects to face murder charges

NEW DELHI - Indian police charged six men with murder on Saturday, hours after a woman who was gang-raped and beaten on a bus in New Delhi nearly two weeks ago died in a Singapore hospital.

New Delhi police spokesman Rajan Bhagat said the six face the death penalty if convicted, in a case that has triggered protests across India for greater protection for women from sexual violence, and raised questions about lax attitudes by police toward sexual crimes.

As the body of the 23-year-old student was being readied for the flight from Singapore back to India, police sealed off parts of the capital, New Delhi, and braced for more angry demonstrations like the ones last week, when thousands of Indians - most of them young and furious - poured into the streets to protest against the gang rape of the student.

They were also protesting against rape in general which, they say, often goes unpunished - or the victims are blamed, says correspondent Elizabeth Palmer.

To help restore calm, a clearly rattled Indian Prime Minister Manmohan Singh had to make a statement on national TV.

"I assure you that we will make all possible efforts to ensure security and safety of women in this country," said Singh.

He said he was aware of the emotions the attack has stirred, adding it was up to all Indians to ensure that the young woman's death will not have been in vain.

Widespread public outrage means all eyes are on the police inquiry into the December 16 gang rape, which occurred when the victim and her male friend were picked up by six men joyriding on a bus.

The victim "passed away peacefully" early Saturday at Mount Elizabeth hospital in Singapore with her family and officials of the Indian Embassy by her side, Dr. Kevin Loh, the chief executive of the hospital, said in a statement.

After 10 days at a hospital in New Delhi, the Indian capital, the woman was brought Thursday to Mount Elizabeth, which specializes in multi-organ transplants. Loh said the woman had been in extremely critical condition since Thursday, and by late Friday her condition had taken a turn for the worse, with her vital signs deteriorating.

"Despite all efforts by a team of eight specialists in Mount Elizabeth hospital to keep her stable, her condition continued to deteriorate over these two days," Loh said. "She had suffered from severe organ failure following serious injuries to her body and brain. She was courageous in fighting for her life for so long against the odds, but the trauma to her body was too severe for her to overcome."

The woman and a male friend, who have not been identified, were on a bus in New Delhi after watching a film on the evening of Dec. 16 when they were attacked by six men who raped her. The men beat the couple and inserted an iron rod into the woman's body, resulting in severe organ damage. Both were then stripped and thrown off the bus, according to police.

Indian police have arrested six people in connection with the attack, which left the victim with severe internal injuries, a lung infection and brain damage. She also suffered from a heart attack while in the hospital in New Delhi.

Indian High Commissioner, or ambassador, T.C.A. Raghavan told reporters that the scale of the injuries the woman suffered was "very grave" and in the end "proved too much."

He said arrangements were being made to return her body to India later Saturday.

The frightening nature of the crime shocked Indians, who have come out in the thousands for almost daily demonstrations.

As news of the victim's death reached New Delhi early Saturday, hundreds of policemen sealed off the high-security India Gate area, where the seat of India's government is located, in anticipation of more protests. The area is home to the president's palace, the prime minister's office and key defense, external affairs and home ministries.

The area had seen battles between protesters and police for days after the attack.

Ten metro stations in the vicinity also were closed Saturday, Bhagat said.

Police were allowing people to assemble at the Jantar Mantar and Ramlila grounds, the main areas allotted for protests in New Delhi, he said.