May 23, 2013

Daimler CEO wants Mercedes to regain top spot by 2020: paper

410d915011744b62f6e6cdba98a35a72 Daimler CEO wants Mercedes to regain top spot by 2020: paper

() – (DAIGn.DE) hopes to return the automaker to the top spot in the premium ahead of Audi (VOWG_p.DE) and (BMWG.DE) by 2020, he said in an interview with a German paper.

“I am confident that we will be ahead of our rivals by 2020 at the latest,” he told Boersen-Zeitung in an interview published on Saturday.

He said he hoped to reach that target during his time in office. Zetsche’s contract currently runs until December 2013 but is expected to be extended by three years in February.

Daimler has already promised 2 billion euros ($2.6 billion)in cost cuts at the Mercedes-Benz division by the end of 2014 after warning in October that it would miss its target this year by euros.

Zetsche told the paper Mercedes had failed to keep up with its rivals in the compact car market and in .

(Reporting by Bryan; editing by Jane Baird)

Tennis: Serena tops Li at WTA Championship / Federer escapes upset at Swiss Indoors

b8cdb312b4f83fe03b04c1b91d3b145e Tennis: Serena tops Li at WTA Championship / Federer escapes upset at Swiss Indoors
of USA serves to Li Na of China during day two of the season ending TEB BNP Paribas WTA Championships Tennis at the Sinan Erdem Dome on , 2012 in , Turkey.
(October 23, 2012 – Source: Julian Finney/ Europe)

ISTANBUL (AP) — proved Wednesday at the WTA Championships that even when her serve is malfunctioning, she can still beat a top player.

Williams beat 2011 Na of China 7-6 (1), 6-3 for her second win in round-robin matches to close in on the semifinals at the tournament for the top eight players in the world.

In another Red Group , top-ranked Azarenka saved two before rallying past Angelique Kleber of Germany 6-7 (11), 7-6 (2), 6-4 in her first match at the event.

Williams had six double-faults and won only 51 percent of points on her first serve. But Li also struggled on serve – there were eight breaks in the first set and three more in the second.

“My serve just didn’t go in. Every time I got my first serve in, I was surprised,” Williams said. “But knowing I was able to still, for me, zero serve compared to how I normally serve – I think it’s something good I can take out of the match.”

She has won 28 of her past 29 matches and captured , U.S. Open and this year. The highest ranking she can achieve at the end of the year is No. 2 because of injuries and missed tournaments.

At one point, Williams got so frustrated at dropping serve that she uncharacteristically smashed her racket.

“No, I don’ rackets in matches. Although I didn’t hit it hard,” she said. “Maybe I don’t know my own strength.”

The first set was full of missed opportunities. The eighth-ranked Li took a 4-1 lead before Williams won the next . Serving for the set, the American again dropped serve. Li was unable to hold, though, and Williams had another chance to serve out the set – only to lose it at love.

Williams took control of the match in the second set by saving a – in a game that lasted nine minutes – to hold and lead 4-1.

The American wasted two to break Li, but closed it out on her own serve when the sent a long.

Both Azarenka and Kleber smashed rackets in the second, highly entertaining match.

Kleber is making her debut in the event after winning two titles and climbing to No. 5 this year after finishing 2011 at No. 32. She was down a break in the second set, but led 5-4 after prevailing in a game that went to nine deuces and lasted 13 1/2 minutes.

Azarenka then saved two match points before capturing the second tiebreaker. The Belarusian closed it out on Kerber’s serve, hitting a forehand winner on her first match point.

Azarenka needs one more round-robin win to secure the No. 1 ranking for the year.

Earlier, defending champion Petra Kvitova withdrew from the tournament because of a viral illness and was replaced by Samantha Stosur.

The event splits players into two groups, with the top two in each advancing.

Federer escapes upset at Swiss Indoors; Del Potro wins

BASEL, Switzerland (AP) – Roger Federer edged Thomaz Bellucci of Brazil 6-3, 6-7 (6), 7-5 Wednesday to advance to the quarterfinals of his hometown Swiss Indoors tournament.

The top-ranked Federer saved four consecutive set points in the second-set tiebreaker before the 34th-ranked Bellucci tied the second-round match.

It was not until match point that Federer, who held serve throughout, had the decisive break-point chance in the decider.

Federer will face either Benoit Paire of France or Lukasz Kubot of Poland in the final eight Friday. Paire beat fifth-seeded Andreas Seppi of Italy, 4-6, 6-2, 6-3 in a first-round match.

Also advancing to the quarterfinals was third-seeded Richard Gasquet of France who beat Federer’s boyhood friend Marco Chiudinelli, 6-1, 6-4. Grigor Dimitrov of Bulgaria had 17 aces in defeating France’s Julien Benneteau 7-6 (5), 6-7 (1), 7-6 (3).

In other first-round action, second-seeded Juan Martin del Potro of Argentina eased past Alejandro Falla of Colombia 6-4, 6-1; Marinko Matosevic of Australia upset seventh-seeded Florian Mayer of Germany 6-2, 6-3; and France’s Paul-Henri Mathieu beat Henri Laaksonen of Switzerland 6-2, 7-5.

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Tennis: Djokovic, Tsonga win at China Open

b6004f6c05cd105dbbb51fcb493fcda6 Tennis: Djokovic, Tsonga win at China Open
of Serbia celebrates winning against of Germany during the Day 4 of China Open at the China National Center on October 2, 2012 in , China.
(October 1, 2012 – Source: Feng Li/ AsiaPac)

(AP) – won his opening at the China Open by defeating German qualifier Michael Berrer 6-1, 6-7 (3), 6-2 on Tuesday in his first since losing the Open final.

Third-seeded Jo- Tsonga downed Uzbekistan’s , 4-6, 6-1, 7-6 (3), firing 14 .

Russia’s beat seventh-seeded German Tommy Haas 6-4, 4-6, 6-2.

Among the women, Li Na defeated Russian 6-1, 6-2, and overcame Japanese qualifier Ayumi Morita, 6-4, 6-3. downed Romanian 6-2, 6-1.

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Why There’s No Turning Back in the Middle East

6f09309325433228b710901b889712b1 Why There’s No Turning Back in the Middle East

The year of the revolutions began in January, in a small country of little importance. Then the protests spread to the region’s largest and most important state, toppling a regime that had seemed firmly entrenched. The effect was far-reaching. The air was filled with talk of liberty and freedom. Street protests cropped up everywhere, challenging the rule of autocrats and monarchs, who watched from their palaces with fear.

That could be a description of events in Tunisia and as those countries’ peaceful revolutions have inspired and galvanized people across the . In fact, it refers to popular uprisings 162 years earlier that began in Sicily and France. The revolutions of 1848, as they were called, were remarkably similar in mood to what is happening right now in the . (They were dubbed the springtime of peoples by historians at the time.) The backdrop then, as now, was a recession and rising food prices. The monarchies were old and sclerotic. The young were in the forefront. New information technologies — mass newspapers! — connected the crowds. (See pictures of protests spreading across the Middle East.)

Except that the story didn’t end so well. The protesters gained power but then splintered, fought one another and weakened themselves. The stayed loyal to the old order and cracked down on protests. The monarchs waited things out, and within a few years, the old regimes had reconstituted themselves. “History reached its turning point, and failed to turn,” wrote the British historian A.J.P. Taylor.

Will history fail to turn in the Middle East? Will these protests in Yemen, Bahrain, Jordan and beyond peter out, and in a few years, will we look back at 2011 and realize that very little actually changed? It’s certainly possible, but there are two fundamental reasons the tensions that have been let loose in the Middle East over the past few weeks are unlikely to disappear, and they encompass two of the most powerful forces changing the world : youth and technology. (See TIME’s complete coverage of Egypt.)

The central, underlying feature of the Middle East’s crisis is a massive youth bulge. About 60% of the region’s population is under 30. These millions of young people have aspirations that need to be fulfilled, and the regimes in place right now show little ability to do so. The protesters’ demands have been dismissed by the regimes as being for Islamic fundamentalism or a product of Western interference. But plainly these are homegrown protests that have often made the West uneasy as they have shaken up old alliances. And what the protesters want in the first place is to be treated as citizens, not subjects. In a recent survey of Middle Eastern youth, the No. 1 wish of the young in nine countries was to live in a free country, although, to be sure, jobs and the desire to live in well-run, modern societies ranked very high as well.

Young people are not always a source of violence. The West experienced a demographic bulge — the famous baby boom in the decades after World War II — that is known mainly for fueling economic growth. China and , likewise, have a large cohort of young workers, and that adds to those countries’ economic strength. But without economic growth, job opportunities and a sense of dignity, too many young people — especially young — can make for mass discontent. That is what has happened in the Middle East, where the scale of the youth bulge is extreme — perhaps the largest in the world right now. From 1970 to 2007, 80% of all outbreaks of conflict occurred in countries where 60% or more of the population was younger than 30. And even places where the baby boom produced growth are not without problems. The peak years of the West’s bulge came in the late 1960s, a period associated with youth rebellions and mass protests. (See the top 10 famous protest plazas.)

Journalists, politicians and scholars have all noted the Middle East’s youth problem. But the region’s governments have done little to address it — youth unemployment remains staggeringly high, by some measures close to 25%. The oil boom has certainly helped the Gulf countries pay off their people in various ways, but more than half of those who live in the Middle East are in lands that do not produce oil. Moreover, oil has proved a curse in the rich countries, where the economies have little to offer other than extracting hydrocarbons, where armies of foreigners do all the work and where regimes continue to offer their people a basic bargain: we will subsidize you as long as you accept our rule. Rattled by recent developments, Kuwait and Bahrain both decided to give all of their citizens bonuses this year ($3,000 in Kuwait, $2,700 in Bahrain).

Those payments are a reminder that in the Middle East, there are two modes of control: mass repression and mass bribery. Perhaps the latter, used in the Gulf states, will prove more effective — though in Bahrain, the regime faces specific challenges, with a Sunni minority ruling over a Shi’ite majority. The broader predicament facing both systems, however, is a population that is increasingly aware, informed and connected. It’s too simple to say that what happened in Tunisia and Egypt happened because of Facebook. But technology — satellite , computers, mobile phones and the — has played a powerful role in informing, educating and connecting people in the region. Such advances empower individuals and disempower the state. In the old days, information technology favored those in power, because it was one to many. That’s why revolutionaries tried to take over radio stations in the 1930s — so they could broadcast information to the masses. Today’s technologies are all many to many, networks in which everyone is connected but no one is in control. That’s bad for anyone trying to suppress information. (Comment on this story.)

Of course, the state can fight back. The Egyptian government managed to shut down Egyptians’ access to the Internet for five days. The Iranian regime closed down cell-phone service at the height of the green movement’s protests in 2009. But think of the costs of such moves. Can banks run when the Internet is down? Can commerce expand when cell phones are demobilized? Syria has only now opened access to Facebook, but its basic approach remains to keep the world tightly at bay — which is a major obstacle to economic growth and to tackling that vital problem of youth unemployment. can stay stable as long as it stays utterly stagnant. (And that stability is for the short term anyway.) For regimes that need or want to respond to the aspirations of their people, openness becomes an economic and political necessity.

The modernizing imperative — societies need to embrace more openness to make progress — is why I am allowing myself to be optimistic about the progress of the youth revolutions. It’s easy to be disappointed when looking at the Middle East’s sad recent history. And yet something in the region feels as if it is changing. Warren Buffett once said that when anyone tells him, “This time it’s different,” he reaches for his wallet because he fears he’s going to be swindled. Well, I have a feeling that this time in the Middle East, it’s different. But I have my hand on my wallet anyway.

Egypt’s military promises to abide by international pacts

3d28491fa237cb09257489f2f74480a6 Egypt’s military promises to abide by international pacts

CAIRO (AP) — Egypt’s rulers have promised the country will abide by its international agreements, a nod to allay concerns that Egypt’s peace deal with Israel could be threatened following the ouster of former president Hosni Mubarak.

The military also has asked the current , appointed by Mubarak, to continue operating until a new one is formed. It also says it is committed to eventually handing power to an elected administration.

Saturday’s military statement is its first indication of the next steps after Mubarak’s fall, but it left unanswered the of how long the current government would stay in place.

Earlier Saturday, the military relaxed a nighttime curfew and banned current and ex-government officials from traveling abroad without permission.

The curfew now starts at midnight and ends at 6 a.m. instead of 8 p.m. to 6 a.m.

A Cairo airport official said there is a list of former regime members and current officials with state institutions who are not allowed to leave the country without permission from the state prosecutor or the Supreme Council of the Armed Forces.

The official, who spoke on condition of anonymity because he wasn’t authorized to release the information, declined to identify those on the list.

Meanwhile, many protesters vowed to stay camped in a central Cairo square until they hear “clear assurances” that their demands for democracy will be met.

Burnt-out vehicles were being towed away and Egyptian soldiers swept the streets and cleared barricades to open at least road leading to Tahrir, or Liberation, Square after a night of jubilant celebration and nearly three weeks of protests that forced Mubarak to surrender power to the military.

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PHOTOS: Top shots from three weeks of protests
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MEDIA: Crisis leads viewers to sample CNN
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PROTESTERS: Egyptians celebrate Mubarak’s exit

Protesters were divided. Some took down their makeshift tents and headed home. Others vowed to stay put until the military, which has pledged to shepherd reforms for greater democracy, issues a promised statement on its next steps.

Those could include the dissolving of parliament and creation of a transitional government.

“We have to see how the will orchestrate a democratic transfer of power. We have to wait and see,” said Ali Mohammed, a sales manager camped out on the square.

Under a banner reading “the people managed to oust the regime,” two other protesters argued about whether to clear the downtown square near the famed Egyptian museum.

Shopkeeper Gomaa Abdel-Maqsoud says he’s been in Tahrir Square since the protests began on Jan. 25 and is ready to go. He says “I have never seen such happiness in peoples’ faces before; what else do I want?” he asked.

Nadal Saqr, a university professor, insisted protesters should stay until the army offers “clear assurances” that their demands for democracy are met.

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REACTION: Wary China warns of ‘chaos’ after uprising
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FUTURE: U.S. policy uncertain as Egypt shifts
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ALLIES: U.S. military chairman to reassure Israel, Jordan

Elsewhere, Egyptians in coffee houses and on the street scoured newspapers for details about the astonishing events from the day before — when hundreds of thousands marched on Mubarak’s palaces in Cairo and Alexandria and besieged state TV, leading the military to effectively carry out a coup at the please of protesters.

The 82-year-old former leader, meanwhile, remained with his family in the Red Sea resort of Sharm el-Sheikh, according to local officials, who spoke on condition of anonymity because they weren’t authorized to release the information.

Mubarak’s downfall at the hands of the biggest popular uprising in the modern history of the Arab world had stunning implications for the United States and the West, Israel, and the region, unsettling rulers across the Mideast.

President ’s senior military adviser was heading to the Mideast Saturday to reassure two key allies — Jordan, facing its own rumblings of civil unrest, and Israel, which sees its security at stake in a wider transformation of the Arab world.

Adm. Mike Mullen, chairman of the Joint of Staff, was stopping first in Amman for meetings Sunday with senior Jordanian officials, including King Abdullah II. Jordan has seen five weeks of protests inspired by unrest in Tunisia and later Egypt, though the numbers of marchers has been decreasing.

He then was to Tel Aviv for meetings and ceremonies Sunday and Monday marking the retirement of his Israeli counterpart, Lt. Gen. Gabi Ashkenazi, and talks with Prime Minister and President Shimon Peres. Mullen had no plans to visit Egypt on this trip.

Israel is deeply worried about the prospect that Mubarak’s ouster could lead to the emergence of a government less friendly to the Jewish state.

Any break seems unlikely in the near term. The military leadership supports the treaty. Anti-Israeli feeling is strong among Egyptians, and a more democratic government may take a tougher line toward Israel in the chronically broken-down peace process. But few call for outright abrogating a treaty that has kept peace after three wars in the past half-century.

Mubarak shuffles cabinet but protesters say “Go!”

d738a46e8138984aece98815a0d1b66c Mubarak shuffles cabinet but protesters say “Go!”

Tens of thousands have gathered in central Cairo for a seventh day of protest, calling for a general strike.

Police have been ordered back to the streets, to positions they abandoned on Friday, but it is not clear whether they are returning to central Cairo.

The demonstrators are also planning a huge march to take place on Tuesday.

Protesters want President Hosni Mubarak to step down after 30 years in power. He has promised political reform and has now announced a new cabinet.

The state TV announcement said Interior Minister Habib al-Adly, who correspondents say is widely despised by protesters, had been replaced.

The president has ordered his new Prime Minister, Ahmed Shafiq, to push through democratic reforms and create new jobs.

Correspondents say all the signs continue to suggest that the only change the protesters will settle for is Mr Mubarak’s removal from office.

Policeman directing traffic Some police have been seen directing traffic

Meanwhile, Moodys Investor Services has downgraded ’s bond rating and changed its outlook from stable to negative, following a similar move by Fitch Ratings last week. Both cited the political crisis.

‘Protest of millions’

But there were signs of disagreement within the opposition, with the largest group, the Muslim Brotherhood, appearing to go back on its endorsement of leading figure Mohamed ElBaradei as a negotiator with Mr Mubarak.

As demonstrations enter their seventh day, correspondents say there are at least 50,000 people on Tahrir Square in the centre of the city.

At the scene
Kevin Connolly News, Cairo

On the seventh day of the crisis which will help define Egypt’s future, the extraordinary is beginning to feel ordinary. The now familiar rhythms of a day of protest are re-establishing themselves.

Demonstrators remain on Tahrir Square, their strength hard to assess as their numbers fluctuate over the course of the day.

Egypt remains trapped in the pre- age to which censorship has dragged it back. Military helicopters drone overhead.

The role of the remains enigmatic. Troops are on the street and military checkpoints have been playing a more assertive role in controlling traffic crossing the bridges over the Nile.

The soldiers see themselves as a force for stability and while some of their armoured vehicles are daubed with graffiti that reads “Down with Mubarak” it’s also true that the very act of preserving order helps the old regime to maintain its on power.

The opposition is declaring a general strike and talks of bringing a million people onto the streets tomorrow but it’s far from clear that they have the coherent structure to keep sustained pressure focused on the Mubarak administration.

One possible outcome of this remains a Hosni Mubarak who will be re-booted rather than booted out.

The BBC’s Jim Muir in Cairo says the military, who have cordoned off the square with tanks, are very relaxed and letting people come and go.

Elsewhere the streets are busy and things appear to be returning to normal, with some police returning and seen directing traffic.

But there are no riot police, and our correspondent says the government is being quite clever in keeping the unpopular police force out of contact with the protesters.

There are plans for a “protest of the millions” march on Tuesday.

Our correspondent says this is an attempt to reinvigorate the movement, as many are wondering what to do next if Mr Mubarak stays in power, as he is showing every sign of doing.

Mr ElBaradei has been mandated by opposition groups to negotiate with the regime.

But a spokesman for the largest opposition group, the Muslim Brotherhood, appeared to reject this position.

“The people have not appointed Mohamed ElBaradei to become a spokesman of them,” Mohamed Morsy told the BBC.

“The Muslim Brotherhood is much stronger than Mohamed ElBaradei as a person. And we do not agree on he himself to become representing [sic] this movement, the movement is represented by itself, and it will come up with a committee… to make delegations with any government.”

Thousands have rallied in Alexandria, and there have also been sizeable demonstrations in Mansoura, Damanhour and Suez.
Economic impact

The unrest is having an impact on the Egyptian economy, beyond the closure of shops and businesses and the call for a general strike.

Egypt’s crisis

* Most populous Arab nation, with 84.5 million inhabitants
* Authoritarian President Hosni Mubarak has ruled for 30 years
* Protests against corruption, lack of democracy, inflation, unemployment
* Triggered by overthrow of President Zine al-Abidine Ben Ali of Tunisia

* Army – the deciding factor
* Anxious waiting game
* Why Egypt matters

Many counties including the , China and the Netherlands are evacuating their citizens, leading to chaotic scenes at Cairo airport as air traffic becomes congested and flights are cancelled or delayed.

Tourism is a vital sector in the Egyptian economy, accounting for about 5-6% of GDP.

International pressure is growing for some kind of resolution.

In the strongest language yet, both US President and his Secretary of State Hillary Clinton talked about the need for an “orderly transition” to a democratic future for Egypt.

The White House says Mr made a number of calls about the situation over the weekend to foreign leaders including Turkish Prime Minister Recep Tayyip Erdogan, King Abdullah of Saudi Arabia and British Prime Minister David Cameron.

The protests in Egypt are top of the agenda of a meeting of European Union foreign ministers in on Monday.

The unrest in Egypt follows the uprising in Tunisia which ousted President Zine al-Abidine Ben Ali two weeks ago after 23 years in power.

1a0dc3681d8ba2638d41c458de2ec2b5 Mubarak shuffles cabinet but protesters say “Go!”

Pres. Obama adjusts course toward the center

07af0d054e628fae655c3bcf520b3a46 Pres. Obama adjusts course toward the center

WASHINGTON — A carefully calibrated State of the Union Address Tuesday night marked the culmination of a three-month transformation that has rebooted ’s presidency and launched his re-election campaign.

Call it Obama 2.0.

The president acknowledged the capital’s changed political landscape, congratulating Republican John Boehner for his election as House speaker and citing the Ohioan’s life story as an example of the American dream.

STATE OF THE UNION: Fact checking Obama’s speech
PHOTOS: Images from the president’s State of the Union
FULL TEXT: Obama’s prepared remarks

“With their votes, the American people determined that governing will now be a shared responsibility between parties,” Obama said. “We will move forward together, or not at all.”

After two years of fierce partisan combat over a health care bill — now signed into law, albeit still under — the president proposed more centrist policies in a less combative tone than he did in his previous addresses to Joint Sessions of Congress. He made a point of reaching out to Republicans and distanced himself a bit from fellow Democrats on issues such as capping carbon emissions (not a word about it) or tightening gun controls in the wake of the Tucson shooting (ditto).

He devoted nearly all of the address to the overriding issue of the economy, repeating the word “jobs” 45 times in 61 minutes.

“We’re looking at a different phase of the Obama presidency,” says Democratic analyst Simon Rosenberg, president of the think tank NDN. “It’s a new strategy, a new team and a very different environment than he faced before. It is the second chapter of the administration.”

The speech follows a series of seismic changes at the White House in the wake of sagging presidential job-approval ratings and a stern rebuke from voters in the midterm elections.

In the past few months, the president has overhauled his inner circle of White House advisers, replacing the hard-charging Rahm Emanuel with the business-savvy William Daley as chief of staff. David Axelrod and other top aides are being dispatched to to set up the re-election campaign committee.

And Obama cited as evidence of the possibilities for bipartisan compromise legislation passed during the lame-duck session Congress, reached after making concessions to congressional Republicans. For instance, he agreed to let the Bush-era tax cuts be extended for the most affluent, a move that prompted outrage from his Democratic base.

In the meantime, his job approval has bumped up, hitting the 50% watermark in the daily Gallup Poll this month after being mired in the 40s since last spring.

In his speech, Obama offered no mea culpa, no lessons learned, for anything he’s done over the past two years. He defended his signature health care law almost in passing. “I’ve heard rumors that a few of you have some concerns about the new health care law,” he said to scattered laughter, then urged the legislators not to “refight … the battles of the last two years.”

In a nod to criticism that his administration has gone too far in expanding ’s reach and cost, he proposed a five-year freeze on some categories of federal spending and called for bipartisan cooperation to make more far-reaching cuts, although he didn’t specify any.

CONGRESS: GOP questions spending freeze
FULL TEXT: Rep. Paul Ryan’s GOP response

But he also argued that only by expanding spending on clean energy, science and math and the nation’s infrastructure could the expect to “win the future” — that is, to thrive against such emerging powerhouses as China and India.

That fundamental philosophical divide over the role of government is the ground on which this year’s legislative battles, and next year’s presidential campaign, is likely to be fought.

Before Obama arrived on Capitol Hill on Tuesday, House Republicans passed a resolution embracing much deeper cuts, also unspecified, that would trim the budget to pre-Obama levels.

“The American people have rejected the idea that we can spend and borrow our way to prosperity,” Boehner said. House Budget Chairman Paul Ryan characterized Obama’s “investments” as just more stimulus spending.

That underscores a risk for Obama as he aims to walk down the middle. He could end up criticized by both sides: by conservatives demanding more concessions and liberals disenchanted because he has sidelined their priorities.

The perils and possibilities ahead are reminiscent of those faced after Democrats lost control of the House and Senate in the 1994 midterms.

At least for now, Obama is following the Clinton comeback playbook: Hire new advisers, tack to the center, go back to the themes that helped you win the job in the first place, keep some distance from your fellow Democrats, reach out to the other side.

And, most of all, hope for an improving economy.

“We are poised for progress,” Obama said near the start of his speech, using some of the most optimistic language of his presidency in talking about the economy. Near the end, in a paean to the American spirit, he declared repeatedly: “We do big things.”

Chinese president faces chilly welcome in U.S. Congress

13d651d668e7ff1a3bfd5bc5777e6550 Chinese president faces chilly welcome in U.S. Congress

Obama hosts White House state dinner
STORY HIGHLIGHTS

* Chinese President to meet with Congress leaders on Capitol Hill
* remains a key sticking point between the U.S. and China
* White House dinner honors Hu
* The last White House state dinner for China was 13 years ago

(CNN) — After all the niceties of a state dinner at the White House, the reception Chinese President Hu Jintao receives on Capitol Hill Thursday may be a bit chilly in comparison.

Hu is scheduled to meet separately with Senate Majority Leader Harry Reid and House Speaker John Boehner. Neither attended Wednesday night’s dinner in honor of the Chinese leader.

Reid called Hu a “dictator” in a Tuesday television interview, but quickly recanted his words.

“Maybe I shouldn’t have said dictator, but they have a different type of government than we have and that is understatement.”

RELATED TOPICS

* Hu Jintao
* China
* U.S. Congress
*

“Obviously, he believes strongly in the American political system and our form of government,” Jon Summers said. “He also believes that it is important for us to continue our dialogue with the Chinese government about a wide range of issues which are critical to both countries, including our economy, Iran, North Korea.”

Senate Republican Leader Mitch McConnell also did not attend the state dinner. House Minority Leader Nancy Pelosi did, despite being a vocal critic of China on human rights issues.

U.S. President Barack Obama stressed common interests between the nations while toasting the Chinese leader at the White House.

“While it’s easier to focus on our differences of culture and perspective, let us never forget the values that our people share,” Obama said while raising a glass to Hu.

“A reverence for , the belief that with education and hard work and sacrifice, the future is what we make of it and, most of all, our desire to give our children a better life,” Obama said, enumerating what he called common values between the U.S. and China in toasting Hu.

Hu, toasting Obama at the first formal state dinner for China in 13 years, praised the U.S. president for bringing the two countries closer together.

“In recent years, particularly over the last two years since President Obama took office, China-U.S. relations have made strong headway,” Hu said.

“We have increased exchanges in cooperation in a wide range of areas, maintained close communication and coordination on major international and regional issues, and played a positive role in promoting peace, stability and prosperity in the Asia Pacific region and the whole world.”

“We agreed that our two countries should increase contacts at the top and other levels, strengthen strategic mutual trust through dialogue and communication, intensify exchanges and cooperation in all fields, and step up communication and coordination on international and regional issues,” he said.

Earlier Wednesday, Obama and Hu met behind closed doors for several hours as top officials from both countries worked to address issues tied to the global economic crisis, international , the environment and human rights.

Obama administration officials used the president’s meeting with Hu to highlight economic progress between the two countries, announcing ’s approval of $45 billion in new contracts for U.S. companies to export goods to China. The contracts will support an estimated 235,000 American jobs, according to the White House.

Human rights remained a key sticking point for the two men. The United States has objected for decades to, among other things, China’s handling of Tibet and political dissidents such as Nobel Peace Prize Laureate Liu Xiaobo, who remains in prison.

Obama on Wednesday defended his administration’s decision to engage with China despite those differences, pointing out that “China has a different political system than we do” and is at a “different stage of development.”

“I have been very candid with President Hu about these issues,” Obama told reporters, and “occasionally, they are a source of tension.”

But “we can engage and discuss these issues in a frank and candid way,” he said.

Hu defended his country’s human rights record, arguing that “China recognizes and also respects the universality of human rights.” At the same time, he said, it is important to account for “different national circumstances.”

“We will continue our efforts to improve the lives of the Chinese people” and promote “democracy and the rule of ,” he said. At the same time, Beijing is willing to engage with Washington on the basis of “mutual respect” and the principle of “noninterference” in domestic affairs.

Hu started his three-day trip to the United States on Tuesday afternoon.

The formal state dinner for Hu on Wednesday evening is the third such occasion of his administration.

Among the 225 dignitaries who attended were former presidents Jimmy Carter and Bill Clinton. Former secretaries of state Madeleine Albright, George Schultz and Henry Kissinger were also at the dinner.

The last White House state dinner for China was in October 1997.

South Korea agrees military talks with North

91d23e9395b0ce2978b75ebf55074cb0 South Korea agrees military talks with North

has agreed to hold high-level talks with the North, officials say, in a move that could ease tension on the peninsula.

The North’s minister proposed the talks earlier in a telegram to his southern counterpart.

It comes after months of tension over the sinking of a southern warship last March, and the North’s shelling of a southern island in November.

On Wednesday, the US and urged the two sides to reopen talks.

Officials at the South’s defence ministry said the North had made its latest offer of talks in a telegram sent to southern Defence Minister Kim Kwan-jin, signed by the North’s Armed Forces Minister Kim Young-chun.

The North had made several offers of talks earlier this month, but they were all dismissed by Seoul.

The South’s Unification Ministry restated on Thursday that the North must “take responsible measures” over the shelling of Yeonpyeong island and the sinking of the Cheonan warship before talks could begin.

But Pyongyang has always denied torpedoing the warship, and says it was provoked into shelling the island.
‘Fence-mending’

On Wednesday, China’s President and US President released a joint statement urging Korean dialogue after a meeting in .

“The and China emphasised the importance of an improvement in North-South relations, and agreed that sincere and constructive inter-Korean dialogue is an essential step,” the two leaders said.

And the North’s state-run news agency KCNA called for the US to reopen talks with Pyongyang.

“The US would be well advised to re-examine its hostile policy towards the DPRK [] and make a U-turn towards dialogue and fence-mending,” its report said.

The US is among the countries involved in talks over the North’s nuclear programme.

Pyongyang pulled out of the talks in April 2009, shortly before conducting a nuclear test.

Southern defence officials said on Thursday that they would propose to Pyongyang reopening dialogue on denuclearisation.

Relations between the two Koreas plunged to new lows after the South’s Cheonan warship was sunk in March, with the loss of 46 lives.

An international report later blamed the North for the sinking – allegations denied by Pyongyang.

On 23 November, the North killed four people when it shelled Yeonpyeong island – its first attack on a civilian area since the 1950-53 war ended.

The South responded with a series of military exercises close to the border.

Hu Jintao in US: Obama to host talks on key issues

b7dc005c62f8bc373559b939d8e22288 Hu Jintao in US: Obama to host talks on key issues

’s President Hu Jintao has arrived at the White House for talks with his US counterpart , on the first full day of his US state visit.

Mr Obama welcomed him in a lavish ceremony with fanfares and drum rolls.

The two leaders are expected to tackle thorny issues from currency and trade disputes to defence and security matters, that have dogged relations.

At a joint news conference, President Hu is expected to face questions on China’s human rights record.

Hundreds of human rights activists have held protests outside the White House.

Mr Hu arrived at Andrews Air Force base outside Washington on Tuesday and was greeted by US Vice-President Joseph Biden before attending a private dinner at the White House hosted by President Obama.

As Mr Hu dined, activists outside the White House held aloft banners urging the US president to to “admonish Hu” over China’s human rights abuses.

In particular they want him to call for the release of the jailed winner Liu Xiaobo, correspondents say.

Western TV reports of Mr Hu’s trip broadcast in China were blacked out when the crowds of protesters were shown: One report showing footage of human rights protesters demonstrating outside the White House was blacked out for 30 seconds.

‘Tough talk’

Analysts say Mr Hu’s four-day visit is the most important by a Chinese leader in 30 years given China’s growing , economic and diplomatic clout.

“Start Quote

There are countless ways of characterising the relationship between these two nations, but almost everyone is animated by the idea that we are witnessing an historic shift”

End Quote Damian Grammaticas

* Grammaticas: Powerplays and mistrust

The White House is laying on a full formal reception with a military guard, lunch at the state department, dinner at the White House, and meetings with some of America’s most powerful business leaders from firms like General Electric, Coca-cola and Boeing.

During talks in the Oval Office, White House aides have said that the US president will engage his counterpart on the top issues.

“Whether we’re dealing with economic discussions, whether we’re dealing with those in the security realm, or whether we’re doing those with human rights, I think this is an argument that we have and we’ll continue to make to the Chinese and push them to do better,” spokesman Robert Gibbs told reporters.

The BBC’s Damian Grammaticas in says the US wants a co-operative relationship, but is starting to talk tougher over ’s management of its exchange rate and its support for the regime in North Korea.

These differences could surface when the two presidents hold a rare, joint press conference later, he says.
‘Critical juncture’

This is likely to be Mr Hu’s last state visit to the US before a handover of power is completed in China in 2013.

US Secretary of State said America and China were “at a critical juncture to determine how good the co-operative relationship between our two countries can be”.

“I believe that the Chinese and American governments and people need to work together towards solving problems in a win-win way,” Mrs told China’s CCTV.

As the world’s two biggest economies, she said, China and the US shared special responsibilities over such issues as the threat to world stability posed by nuclear programmes in Iran and North Korea, and the need for a concerted response to climate change.

“We will continue to have our disagreements but that should not interfere with dealing with these other big issues that we face,” added Mrs Clinton.

In a separate interview for the US network ABC, the secretary of state said some Chinese “entities” were not complying with UN sanctions against Iran over its nuclear programme, and that the US was pushing Beijing very hard on this issue.

Graphic showing the balance of trade between the US and China, US exporting $81.8bn and importing $344.1bn
The US buys far more than it sells to China – the US claims this is because China has kept its currency artificially weak. In fact trade with China accounts for 14.3% of all US trade – the States only does more trade with Canada.

Graph showing how China’s economy has grown in relation to the US
Until the 1990s, the US economy grew strongly while China remained relatively stagnant. Since 2000 China’s growth rate has surged, driven by economic reforms, a huge workforce and massive investment.

Graphic comparing China and the US defence budgets
The US defence budget is the biggest in the world at around $700bn. China has the second largest – but its official military budget has soared since 1999 as the country’s economy has grown.

Graphic comparing the relative size of America and Chinas population
China is the most populous country in the world ahead of and the US. Its huge population has helped drive economic growth but it has also put huge stress on resources and air and water pollution are big problems.

us china trade slide01v2 464 Hu Jintao in US: Obama to host talks on key issues

us china trade slide02 464 Hu Jintao in US: Obama to host talks on key issues

us china trade slide03 464 Hu Jintao in US: Obama to host talks on key issues

us china trade slide04 464 Hu Jintao in US: Obama to host talks on key issues

Correspondents say both sides recognise the deep divisions that have strained relations over the past year – the value of the yuan, the huge trade gap, human rights, and US arms sales to Taiwan. The US is also concerned by China’s growing military strength.

Earlier this month, during a trip to China by US Defence Secretary Robert Gates, Beijing confirmed that it had tested a prototype J-20 stealth fighter, invisible to radar.

The US has also bolstered its support for its East Asian allies, most notably South Korea and Japan, amid maritime rivalries with China in the Pacific.

Hu Jintao’s itinerary

* 18 Jan: Arrives in Washington, has private dinner with US President Barack Obama
* 19 Jan: Series of bilateral meetings followed by joint press conference; lunch with Vice-President Joe Biden; formal state dinner
* 20 Jan: Visits Capitol Hill to meet congressional leaders; departs for Chicago
* 21 Jan: Leaves Chicago for Beijing

* What China and the US want from visit
* In pictures: Chinese state visits to US

The two powers have been at loggerheads over how to curb North Korea’s belligerent behaviour and advancement of its nuclear programme.

In a rare interview with foreign media, Mr Hu acknowledged the “differences and sensitive issues”, but said co-operation rather than confrontation would serve both sides best.

Later in the week, Mr Hu is expected to travel to Chicago, where some predict he will sign a series of trade and investment agreements.

The US is encouraging China to buy tens of billions of dollars of aircraft from Boeing, car parts, agricultural goods and beef.

Trade between the US and China is worth $400bn, up from $100m 30 years ago, when the US formalised relations with the communist state.

China also holds the world’s largest foreign currency reserves at $2.85tn and a major share of US government debt.

Ahead of Mr Hu’s arrival in the US, a Chinese trade mission signed six deals with US companies in worth $600m (£376m) – which analysts say is an attempt to create a “positive” atmosphere for the talks.