Opposing view: Cut Iraq some slack 2 hours, 33 minutes ago

Opposing view: Cut Iraq some slack 2 hours, 33 minutes ago



By Clifford D. May

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Granted, Iraq's government has disappointed. Americans liberated Iraqis from Saddam Hussein and gave them the right to vote. What we couldn't give them are the institutions, values and habits required for effective democratic governance. Those they will have to develop over time, if they can.


But keep in mind: We are at least partly responsible for the Iraqi government's dysfunction. Watching the debates taking place in Washington — hardly the most inspiring example of democracy in action — Iraqis don't know whether we are going to stay to finish the job or abandon them to al-Qaeda terrorists and Iranian-backed death squads.


And as long as Iraqis think we are heading for the exit, what possible incentive do they have to make painful political compromises?


Even more pertinent: We are not fighting a war in Iraq primarily so Iraqis can have an oil law. Nor are we fighting as a favor to the Iraqi government.


We are, as noted, fighting al-Qaeda as well as Iran's proxies — America's sworn enemies, who have slaughtered Americans in the past and are committed to doing so again, if possible from bases in Iraq.


We should never surrender to such enemies — not if we have a choice. And there is increasing reason to believe that the new U.S. commander in Iraq, Gen. David Petraeus, has a strategy that can avoid America's defeat in what al-Qaeda says is the most important battle in this global conflict.


Penultimate point: While there has been little progress in Iraq's parliament, dramatic achievements are being made at the provincial level. For example, just a few weeks ago, traditional, tribal leaders in Diyala province signed an American-brokered peace agreement. They are now working with each other as well as with U.S. military forces against al-Qaeda, our common enemy.


Final point: If you think the government in Baghdad couldn't be worse, think again. Think about Afghanistan under the Taliban, or about the viciously anti-American governments in Iran and Syria. If we retreat from Iraq, that's the sort of regime we can expect to see in power.


And that would be beyond disappointing.


Clifford D. May, a former New York Times foreign correspondent, is president of the Foundation for Defense of Democracies, a policy institute focusing on terrorism

Our view on Iraq's government: It's August. It's hot in Iraq. So parliament takes a break. 2 hours, 31 minutes ago

Our view on Iraq's government: It's August. It's hot in Iraq. So parliament takes a break. 2 hours, 31 minutes ago



The Iraqi government has made little or no progress on most of the political benchmarks agreed upon between it and the Bush administration:

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* Share oil revenue. Draft law pending in parliament.


* Restore rights for former Baath Party members. Draft law pending.


* New election laws. No progress.


* Provincial elections. Scheduled to be held by the end of the year.


* Disband militias. No political progress; U.S. and Iraqi military forces have engaged militia members.


* Plan of national reconciliation. No progress.


* Amend Constitution to address Sunni concerns. Pending.


Source: Brookings Institution

A-Rod absent from Yankees' 8-homer party By JAY COHEN, AP Sports Writer

A-Rod absent from Yankees' 8-homer party By JAY COHEN, AP Sports Writer
Tue Jul 31, 11:49 PM ET



NEW YORK - Everybody but A-Rod. On the night the New York Yankees tied a franchise record by hitting eight home runs in a 16-3 rout of the Chicago White Sox, Alex Rodriguez had none. While A-Rod stayed stuck at 499 homers, he watched his teammates connect all game long.

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After completing his 0-for-5 performance, he flipped his bat into the stands behind the dugout — giving a boy one memorable souvenir. Each time he batted, flashes popped throughout Yankee Stadium.

"They took pictures of the wrong guy tonight," he said.

Sure did.

"I'm sure if you polled everybody in baseball who didn't see the game and saw eight home runs being hit, they would have guessed that Alex hit two or three of them," Yankees manager Joe Torre said.

A-Rod is hitless in 17 at-bats since he connected against Kansas City last Wednesday. His teammates, however, had no problems going deep.

Hideki Matsui homered twice, and Damon, Jorge Posada, Bobby Abreu, Melky Cabrera, Robinson Cano and Shelley Duncan hit one apiece to back Mike Mussina (6-7). New York pulled within three games of Cleveland, the AL wild-card leader — the closest Yankees have been to playoff territory since after games of April 25.

"I wish one was his," Johnny Damon said of A-Rod, who leads the major leagues with 35 homers. "He swung the bat well tonight. Unfortunately, he didn't have anything to show for it."

When the Yankees hit eight homers in a doubleheader opener at the Philadelphia Athletics on June 28, 1939, Joe DiMaggio and Babe Dahlgren hit two each, and Bill Dickey, George Selkirk, Joe Gordon and Tommy Henrich also went deep.

"That's pretty incredible," Torre said.

It was a potential night of milestones in the major leagues, with Barry Bonds trying to tie Hank Aaron's career record of 755, and Mets pitcher Tom Glavine falling short in his quest for his 300th win.

A-Rod was greeted with wild cheers before each at-bat. He came closest to becoming the 22nd player to reach 500 homers when he sent Jermaine Dye crashing into the wall in right in the fourth. Dye held on and Rodriguez made his way to the Yankees dugout.

He was taken out after seven innings and will go for 500 homers again Wednesday night against John Danks and the White Sox.

"They got history, just not the one they were here to see," White Sox slugger Paul Konerko said. "It was impressive to watch."

Abreu hit a three-run drive and Matsui connected in the first against Jose Contreras (5-14), who has lost his last seven starts and nine of his last 10. Abreu's ninth of the year reached the second row of the upper deck in right.

Matsui also connected in the sixth, giving him 13 homers in July and 21 this season.

"I was quite surprised," Matsui said of the Yankees' eight homers. "I've never really experienced anything like this."

Cano and Cabrera joined the power surge in the third, Posada went deep in the fourth and Damon connected in the seventh before Duncan's drive.

Mussina (6-7) was the beneficiary of the support, winning his second straight start. He gave up three runs and six hits in six innings. Contreras allowed seven runs and eight hits in 2 2-3 innings against his former team, his shortest outing since he lasted just one against Cleveland on April 2.

White Sox manager Ozzie Guillen was ejected by plate umpire Phil Cuzzi in the first inning. Cuzzi also tossed Konerko from the game in the sixth.

"Since 1985, I've never seen any umpire disrespect players and managers the way this guy does," Guillen said.

Juan Uribe hit a three-run homer in the second inning for Chicago but New York scored five runs in the third to chase Contreras from the game, and maybe from the rotation.

"We'll see in the next couple of days where we go from here," Guillen said. "We've given him a lot of opportunities, a lot of chances."

New York also acquired another bat before the deadline for trades without waivers, getting Wilson Betemit from the Los Angeles Dodgers for reliever Scott Proctor. Chicago also made a deal, sending outfielder-infielder Rob Mackowiak to San Diego for minor league pitcher Jon Link.

Notes:@ OF Darin Erstad (sprained left ankle) was activated from the 15-day disabled list and took Mackowiak's roster spot. ... New York will activate another reliever on Wednesday. Jeff Karstens and Edwar Ramirez are among the candidates. Hard-throwing prospect Joba Chamberlain is not in the mix but could be promoted soon. ... Yankees RHP Phil Hughes will be activated in time to start Saturday's game against the Kansas City Royals. ... Contreras entered with a 2.50 ERA in five career starts against New York.

Bullpen blows Glavine's bid to win 300th By CHRIS JENKINS, AP Sports Writer

Bullpen blows Glavine's bid to win 300th By CHRIS JENKINS, AP Sports Writer
2 hours, 3 minutes ago



MILWAUKEE - New York's bullpen cost Tom Glavine his 300th win. After Mets relievers wasted a one-run lead in the eighth, Geoff Jenkins hit a two-run homer off Aaron Sele in the 13th inning to give the Milwaukee Brewers a 4-2 victory over the Mets on Tuesday night.

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Glavine had allowed only two hits when Mets manager Willie Randolph took him out in the seventh inning with a runner on first and New York leading 2-1 with no outs. Right-hander Aaron Heilman relieved Glavine, who fidgeted and stared nervously from the Mets' bench as he accepted congratulations from his teammates.

It turned out that Glavine had a reason to be nervous, as the Mets' usually reliable bullpen couldn't nail down the victory. His next shot will come against the Chicago Cubs at Wrigley Field on Sunday.

Heilman allowed a leadoff single to J.J. Hardy, and after Ryan Braun flied out, Pedro Feliciano relieved Feliciano hit Prince Fielder with a pitch. Guillermo Mota came in and Bill Hall hit a ground-rule double to left that scored Hardy with the tying run.

Glavine's wife, Christine, slumped in her seat as Brewers' fans applauded, and she then put her chin on her right wrist and stared angrily.

Dave Bush (9-8), who was supposed to start for the Brewers on Wednesday night, came on in the 13th inning for the victory. Sele (3-1) was the loser.

The Brewers rebounded from a rough trip and held on to their one-game lead over the Chicago Cubs in the NL Central.

Glavine was looking to become the 23rd pitcher to reach the 300-win mark — and the first since former Atlanta Braves teammate Greg Maddux on Aug. 7, 2004 for the Chicago Cubs against San Francisco.

The win would have come 17 years to the day after — and just a few hundred yards away from — Nolan Ryan's 300th career win at Milwaukee's old County Stadium on July 31, 1990. Warren Spahn also recorded his 300th career victory in Milwaukee in 1961.

Glavine's mark was one of three potential baseball milestones on the line Tuesday night. Alex Rodriguez remained one away from his 500th career homer, and Barry Bonds stayed one home run from tying Hank Aaron's all-time record.

Glavine had to pitch out of a few jams as he tied a season high with five walks.

In the fourth, Glavine walked Hardy and giving up a double to Braun. Hardy then scored on a groundout by Prince Fielder, giving the Brewers a 1-0 lead and leaving Braun on third with one out.

Glavine got Hall to pop up, but walked Kevin Mench with two outs to prompt a meeting at the mound. Glavine then got Miller to fly out to right field, ending the inning.

Glavine allowed a one-out walk to Braun in the sixth, then unleashed a wild pitch that allowed Braun to go to second. Glavine got Prince Fielder to fly out, but walked Hall. Braun stole third, but Glavine got Mench to fly out to right.

New York went ahead 2-1 in sixth when, with the Brewers' infield playing in, David Wright slapped a single past Hardy at shortstop for a trying single, Carlos Delgado singled and Moises Alou hit a sacrifice fly. That eliciting vigorous applause from Christine Glavine.

Notes:@ The Mets placed All-Star OF Carlos Beltran on the 15-day DL list because of a strained left abdominal muscle. The move was retroactive to July 25. ... Mets C Paul Lo Duca continued to sit out because of a strained right hamstring. Lo Duca was disappointed he was unable to play on Tuesday with Glavine going for his 300th win. "I really wanted to be out there," Lo Duca said. ... Tuesday's attendance was 41,790, Milwaukee's 20th home sellout of the season and fifth in a row. ... The Brewers ran a second version of their famed sixth-inning sausage mascot race after the 12th inning.

Bonds homerless in win over Dodgers By JANIE McCAULEY, AP Sports Writer

Bonds homerless in win over Dodgers By JANIE McCAULEY, AP Sports Writer
7 minutes ago



LOS ANGELES - Lots of boos and little else for Barry Bonds at Dodger Stadium. Back on the road, Bonds stayed stuck at 754 home runs when he went 0-for-2 with two walks in the San Francisco Giants' 3-1 victory over the Los Angeles Dodgers on Tuesday night.

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Since moving with one of Hank Aaron's record on Friday night in San Francisco, Bonds is 1-for-9 with seven walks.

This was the opener of a six-game trip that ends in San Diego. Loved at home but reviled on the road, Bonds' main solace was that he got to head to his own home in Beverly Hills. He finished work early, coming out in the seventh inning for a pinch runner.

Earlier Tuesday, two other stars also missed chances for milestones — Alex Rodriguez failed to hit his 500th home run at Yankee Stadium and the Mets' Tom Glavine was denied his 300th victory when his bullpen wasted a lead in Milwaukee.

Bud Selig returned to see Bonds resume his quest after the commissioner missed the Giants' weekend series against Florida in San Francisco to be in Cooperstown, N.Y., for the Hall of Fame induction.

Dodger Stadium might be the ballpark where Bonds is most despised — and 56,000 fans let him know it at every opportunity. The sea of Dodger Blue in the sellout crowd booed lustily when Bonds' name was announced, then again every time when he touched the ball on defense or stepped out of the dugout to make his way to the on-deck circle.

A Bonds look alike escorted by a man dressed as Bonds' incarcerated trainer, Greg Anderson, made quite the entrance to their third-row seats behind home plate right when Bonds was coming up to bat in the first. Scott Keighley, a 47-year-old general contractor, carried an extra-large makeshift syringe that security confiscated.

His son, 22-year-old Scott Jr., sported a full gray Giants' road uniform and wore brown makeup on his face and over a swim cap to appear as a black man — and posed for many photos. They had a 3-foot asterisk taken away at the gate.

"We're not here to root for him," Scott Sr. said. "We're just getting a point across — nothing obscene."

When Bonds headed out to left field in the bottom half, a soccer ball was thrown onto the warning track behind him.

Thousands of fans chanted a popular phrase questioning Bonds' ability.

Batting practice before the game was lively.

"I love you Barry!" someone yelled from the upper decks.

Bonds saluted a fan behind home plate before stepping in to take a round of cuts.

He struck out on three pitches from All-Star Brad Penny (13-2) ending the first, walked intentionally in the third and drew another free pass in the sixth. He reached in the seventh after shortstop Rafael Furcal dropped the high popup in shallow left-center. Fred Lewis then entered to run for Bonds and took over at his spot in left field.

Next up is Mark Hendrickson, a 6-foot-9 left-hander who starts Wednesday night for the Dodgers. He hasn't surrendered a home run to Bonds in eight at-bats.

Still, Bonds was happy to get to sleep in his own bed for a few nights.

"Isn't it always nice to be home?" Bonds said before the game, sitting at a locker that's not in the corner for a change.

Notes:@ Pedro Feliz hit a go-ahead two-run single in the sixth on a clear and pretty night at Chavez Ravine. Noah Lowry (12-7) won for the sixth time in seven starts as Los Angeles fell out of first place in the NL West. ... Brad Hennessey finished for his ninth save in 11 chances. ... Penny lost for the first time in 13 starts since a defeat against the Angels in Anaheim on May 18. He had won eight straight decisions to tie his career high and had victories in his last three starts. ... Hall of Fame vice president Jeff Idelson traveled to Los Angeles on Tuesday and will be on hand until Aaron's record falls. Idelson met with Bonds at length in San Francisco last month and the slugger has discussed donating a batting helmet to the Hall. ... The Dodgers sold out for the ninth time. Wednesday and Thursday are also sellouts.

Coleman cited for disorderly conduct Tue Jul 31, 11:46 PM ET

Coleman cited for disorderly conduct Tue Jul 31, 11:46 PM ET



PROVO, Utah - Former child star Gary Coleman was cited for disorderly conduct after witnesses said they saw him in a heated argument with a woman in a parking lot.

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Coleman, 39, and the woman were in his vehicle discussing their relationship Friday night when two people saw him hit the steering wheel with his hands, Capt. Cliff Argyle said.

"Mr. Coleman was very excited and loud. ... At one point he exited his vehicle, waving his arms, yelling and screaming," Argyle said. "Vehicles were unable to exit the parking lot because of Mr. Coleman's actions."

He cooperated with officers who were called to the scene, Argyle said.

The disorderly conduct citation is a misdemeanor punishable by up to three months in jail and a $750 fine.

"What the city attorney proceeds with, I don't know," Argyle said. "It could end up being an infraction" similar to a traffic violation.

A number for Coleman could not be found Tuesday.

Coleman moved to Santaquin, about 55 miles south of Salt Lake City, in 2005, around the time he starred in "Church Ball," a comedy based on basketball leagues formed by members of The Church of Jesus Christ of Latter-day Saints.

Coleman once fought a bitter legal battle with his parents over whether he was fit to handle his own affairs. In 1999, he pleaded no contest to disturbing the peace after he punched an autograph-seeker he claimed insulted him.

He played Arnold on the sitcom "Diff'rent Strokes," which aired from 1978 to 1986.

Nicole Richie confirms she's pregnant 1 hour, 59 minutes ago

Nicole Richie confirms she's pregnant 1 hour, 59 minutes ago



LOS ANGELES - After months of rumors, Nicole Richie confirmed Tuesday that she is pregnant. "Yes I am. We are," Richie told ABC News' Diane Sawyer for an interview to be aired this week. "I'm almost four months." Richie's boyfriend, Good Charlotte frontman Joel Madden, is the father, she told ABC, which issued a news release about the interview.

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The 25-year-old star of "The Simple Life" and on-again pal of Paris Hilton also talked with Sawyer about her guilty plea last week to driving under the influence and the resulting four-day jail sentence.

"I have a responsibility and it's something that I did wrong, and if I could personally apologize to every single person that has lost a loved one from drunk driving, I would," Richie said. "And unfortunately I can't, but this is my way of paying my dues and taking responsibility and being an adult."

Richie also shared her thoughts on her hard-partying contemporaries and what effect their bad behavior has on young fans.

The interview will air on "Good Morning America" on Thursday and Friday and on "20/20" Friday night.

Weather delays Phoenix Mars mission 2 hours, 12 minutes ago

Weather delays Phoenix Mars mission 2 hours, 12 minutes ago



TUCSON, Ariz. - NASA's Phoenix Mars Lander won't blast off on the first day of its three-week launch window because of bad weather in Florida. Stormy weather at Cape Canaveral delayed loading of fuel onto the Delta 2 rocket Tuesday, delaying by a least a day the first possible launch attempt. The next launch attempt is now set for 2:34 a.m. Saturday.

Thunderstorms and lightning were forecast to move into the area during the time the fuel-loading operation was scheduled.

The Phoenix Mars mission, led by scientists at the University of Arizona in Tucson, will look for evidence of water beneath the planet's surface.

The lander should arrive at Mars 10 months after it launches and touch down in the northern plains for its three-month mission. If successful, it will be the first time since the Viking missions three decades ago that a robot will drill beneath the Martian surface.

Once it lands, Phoenix will heat the soil samples in miniature ovens to study their chemistry. The lander can detect the presence of organics, although it won't be able to tell if there's DNA or protein, said principal investigator Peter Smith, a UA scientist.

___

On the Net:

Phoenix Mars mission: http://phoenix.lpl.arizona.edu

Jet Propulsion Laboratory: http://www.jpl.nasa.gov

University of Arizona: http://www.arizona.edu

___

Information from: Tucson Citizen, http://www.tucsoncitizen.com

Archaeologists excavate ancient tannery By MARTA FALCONI, Associated Press Writer

Archaeologists excavate ancient tannery By MARTA FALCONI, Associated Press Writer
58 minutes ago



ROME - Archaeologists excavating an ancient tannery believed to be the largest ever found in Rome said Tuesday they might need to move the entire work site, which is being threatened by railroad construction. The 1,255-square-yard complex includes a tannery dating to the second or third century, as well as burial sites and part of a Roman road.

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At least 97 tubs, some measuring more than three feet in diameter, have been dug up so far in the tannery, archaeologists said.

The complex, located in the Casal Bertone area in the outskirts of Rome, lies between two tunnels of a high-speed railway being built to link Rome and Naples, said Stefano Musco, the director of the archaeological excavations.

"(Even though) there are only 109 yards of railway left to build, the archaeological complex has no chance of surviving," Musco told reporters during a tour of the dig. "Either it stays the way it is and the works are stopped or, if the railway must be built, these remains will have to be cut out and rebuilt entirely."

He said they might be moved to a nearby park.

If the complex is moved, experts would scan the area with a 3-D laser to help archaeologists replace the items in their exact positions, Musco said. The archaeologist, who declined to say how much the project would cost, said technical problems might arise from the fragmentation of the structures and the vastness of the site.

"This is an ancient industrial area — not a craftsman's workshop, but a big complex where several people used to work," he said.

Musco said the project will have to be approved by the Italian Culture Ministry. Officials at the ministry said the project would have to be discussed by a panel of experts.

"I would obviously prefer not to touch anything," Musco said. "It will be quite frustrating to see this thing being taken away."

The system of roads that spread from the capital across the ancient empire is considered one of ancient Rome's greatest engineering feats, and today's transport networks in Italy often closely follow the routes chosen by builders two millennia ago.

Oil prices dip below $78 a barrel By GILLIAN WONG, Associated Press Writer

Oil prices dip below $78 a barrel By GILLIAN WONG, Associated Press Writer
1 hour, 37 minutes ago



SINGAPORE - Oil prices fell Wednesday as traders took profits after the front-month crude futures contract closed at a record price in the previous session.

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Light, sweet crude for September delivery lost 40 cents to $77.81 a barrel in Asian electronic trading on the New York Mercantile Exchange, midmorning in Singapore.

The contract gained $1.38 to settle at $78.21 a barrel Tuesday on expectations that U.S. crude inventories fell last week.

Investors believe a weekly inventory report by the U.S. Energy Department's Energy Information Administration, due later Wednesday, will show that refiners drew down oil inventories last week as they continued to increase gasoline production, analysts said.

"Oil surged ahead yesterday to set a new settlement record for Nymex, primarily fueled by momentum buying in expectations that U.S. inventory data due today will show crude stocks falling," said Victor Shum with Purvin & Gertz in Singapore. "This morning it's edging down some due to profit taking."

Analysts surveyed by Dow Jones Newswires, on average, expected Wednesday's inventory report to show crude oil inventories fell 690,000 barrels in the week ended July 27 as refinery utilization rates rose 0.7 percentage point to 92.4 percent of operating capacity.

"If crude stocks don't fall, or if the stock drawdown is smaller than expected, then one could expect to see some liquidation by investor funds," Shum said.

Declines in crude inventories have driven oil prices higher in recent weeks even though overall stocks are comparatively high.

Vienna's PVM Oil Associates noted that "even with such a decline, U.S. crude stocks would remain some 43 million barrels above the five-year average and around 17 million barrels higher than seen in the same week last year."

Those fundamentals seem not to matter to many speculators. Analysts say large investment funds — many of which trade on technical factors — have pulled money out of gasoline futures and plowed it into oil futures in recent weeks, another factor driving high oil prices and undermining gasoline futures.

Hedge funds and other speculators have been trying, unsuccessfully, to test the all-time intraday record high of $78.40 a barrel, set last July.

"There is certainly a lot of talk about trying to push past that intraday record of $78.40 but it would take a lot of help from the inventory data to make pricing go above the record and stay there," Shum said. "The market is vulnerable to a reversal."

Crude prices have gained more than 20 percent in the past two months on a combination of refinery outages, supply reductions in Nigeria and the North Sea, and forecasts that global supply at the end of the year might not be enough to match demand. The rise has been rapid, with prices hitting fresh recent highs in 18 of the past 23 sessions.

The U.S. Energy Department report is also expected to show gasoline stocks increased 1.1 million barrels last week. Distillate stocks, which include heating oil and diesel fuel, are expected to have risen 1.4 million barrels.

September Brent crude fell 36 cents to $76.69 a barrel on the ICE futures exchange in London.

Nymex heating oil futures lost 0.3 cent to $2.1202 a gallon, while gasoline prices dropped 0.3 cent to $2.1029 a gallon.

Natural gas futures inched down to $6.189 per 1,000 cubic feet.

Murdoch wins votes to get Dow Jones By SETH SUTEL, AP Business Writer

Murdoch wins votes to get Dow Jones By SETH SUTEL, AP Business Writer
17 minutes ago



NEW YORK - After four months of campaigning, Rupert Murdoch has prevailed, winning over enough of the controlling shareholders of Dow Jones & Co. to ensure success for his $5 billion takeover bid of The Wall Street Journal's publisher.

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The storied newspaper, whose legacy reaches back more than a century to the beginnings of business journalism, will become part of Murdoch's global media conglomerate News Corp., which is also home to Twentieth Century Fox, the Fox broadcast network, Fox News Channel, MySpace, satellite TV broadcasters, and newspapers in Australia and the United Kingdom as well as the New York Post.

The Bancroft family, descended over several generations from an early owner of Dow Jones, Clarence Barron, was deeply divided over selling to Murdoch, with several members saying they feared the quality and independence of the paper would suffer under his watch.

Some family members actively sought viable alternatives to Murdoch — without success. One of them, Leslie Hill, quit Dow Jones' board Tuesday as the deal edged toward completion, the Journal reported. Two weeks ago, another director quit in protest, German publishing executive Dieter von Holtzbrinck.

The boards of both companies approved the deal Tuesday, according to a person with knowledge of the matter who requested anonymity because a formal announcement had yet to be made. That opened the way for a shareholder vote on the proposal, which would likely be held later this year.

The outcome of the vote is now largely assured since Bancroft family members and trusts representing 37 percent of the Dow Jones shareholder vote are in favor of a deal. That's more than half of the family's voting block of 64 percent.

Together with the 29 percent of the company's vote held by public shareholders, who are expected to overwhelmingly approve the deal's rich price, Murdoch now has a comfortable margin of safety for getting the deal approved.

The Bancroft family initially rebuffed Murdoch in early May, but then agreed to reconsider. Last week they heard exhaustive presentations on Murdoch's plans but remained divided.

Wrangling continued past a Monday deadline for them to signal their intentions, and on Tuesday the break came when a holdout trust agreed to support the deal, apparently after Dow Jones agreed to pay the family's advisers' fees, the Journal reported.

Murdoch had long been interested in owning Dow Jones, but it was widely assumed that the Bancroft family wouldn't sell. In the end, his price of $60 per share — a good 65 percent over the level of Dow Jones' shares before his offer became public — proved too rich to turn down.

Murdoch has said he would invest in the Journal's Washington bureau and digital operations and expand its domestic readership, taking on the two other national U.S. newspapers, The New York Times and Gannett Co.'s USA Today. He has also said he would expand the Journal's presence overseas, where it would go up against other business publications including Pearson PLC's Financial Times.

Murdoch also plans to launch a business-themed cable news channel in the United States later this year to rival General Electric Co.'s highly profitable CNBC network. Murdoch hopes Dow Jones' news resources and brand name help jump-start that channel, but he would have to negotiate out of a deal CNBC has to use Dow Jones news through 2012.

Over the years, the Bancrofts' ties to Dow Jones have become more remote, and none of them work in the company's day-to-day affairs. Spread out across the country, the family's three dozen adults include a former airline pilot, investment bankers and philanthropists.

The Bancrofts agonized over their decision, and initially rebuffed Murdoch's offer on May 1. Long proud of their tradition of keeping The Wall Street Journal independent and free from short-term pressures from investors, the family's older members considered themselves stewards of a great American journalistic institution.

However, they also had differences over the future direction of the company, and a decade ago two younger family members publicly agitated for change at Dow Jones and were sidelined.

The Bancrofts had angered Dow Jones shareholders in 2005 when the company passed provisions that would allow the Bancrofts to maintain their voting control even if they reduced their ownership stake.

Dow Jones, like several other newspaper companies, is controlled by a family through a special class of shares with powerful voting rights. Despite owning just 25 percent of the company, the Bancrofts exercise 64 percent of the shareholder vote through the more powerful Class B shares, which aren't traded publicly.

Long though to be an insulation against outside pressure or unexpected takeover offers, the two-class share structure didn't prove to be an impediment to Murdoch, who knew of the family's persistent unrest with Dow Jones' lagging share price.

Even though it was a pioneer in providing financial news and data, Dow Jones has fallen behind rivals such as Reuters Group PLC and Bloomberg LP in the business of providing real-time financial information. Its venture into the data delivery business, Telerate, turned into a bust, and it sold the business in 1998 for $510 million after paying $1.6 billion for it a decade earlier.

The Journal turned out to be particularly vulnerable to a slump in technology and financial advertising, categories on which it has traditionally had a heavy reliance. In recent years, the paper has attempted to broaden its range of advertising revenues by expanding its coverage of non-business topics such as leisure and lifestyle topics.

Nonetheless, its stock has continued to struggle. Dow Jones shares fell steadily over the past three years, from a high of just over $52 in early 2004 to the mid-$30s in the early months of 2007.

A union representing Journal reporters and other Dow Jones employees has objected to Murdoch's bid, saying he would downgrade the quality of the paper's coverage and tilt its stories to suit his business interests. Former board member James Ottaway Jr. also opposed ownership by Murdoch.

Murdoch countered with a promise not to interfere with the paper's newsroom and has agreed to set up a five-member board, whose initial members would be jointly chosen by both News Corp. and Dow Jones, with the power to approve the hiring or fire top editorial officials.

In a letter to readers published in Wednesday editions, Journal publisher Gordon Crovitz sought to allay concerns about the transition.

"Readers can rely on this: The same standards of accuracy, fairness and authority will apply to this publication, regardless of ownership," Crovitz wrote, adding later on: "My colleagues and I hope that as part of a larger company we can extend our journalism more broadly, to serve more readers better."

Latest Romney ad hones in on immigration By GLEN JOHNSON, Associated Press Writer

Latest Romney ad hones in on immigration By GLEN JOHNSON, Associated Press Writer
2 hours, 59 minutes ago



BOSTON - With a big month in Iowa looming, Republican Mitt Romney is airing a commercial focused on one of the state's hot-button issues: immigration.

Five days before the latest GOP presidential debate, and 11 days before the party's straw poll, Romney trimmed a May television ad into a 30-second spot in which he reiterates his support for legal immigration.

"We should put in place an employment verification system," Romney tells an audience member in a scene from one of his "Ask Mitt Anything" town hall meetings. "And then, when an employer is thinking of hiring someone, the federal database immediately tells them whether they're available to be working or not. If they're not, you can't hire them."

Romney assailed the immigration compromise backed by President Bush and rival Sen. John McCain, R-Ariz. The former Massachusetts governor said the deal would create amnesty for illegals already in the country. Congress subsequently killed the measure.

In mid-July in Iowa, Romney criticized GOP rival and former New York Mayor Rudy Giuliani for making the city "a sanctuary city for illegal aliens" by failing to enforce immigration laws. Romney noted that he deputized state police to enforce immigration laws and denied driver's licenses to illegal immigrants.

The theme plays well in Iowa, where the federal government has raided meat processing plants employing illegals, and where some longtime residents feel their pay is being undercut by cheaper-working immigrants.

All the GOP candidates will be in Des Moines on Aug. 5 for the debate. Romney is making a bid to win the Aug. 11 straw poll in Ames.

Campaigning in Virginia Tuesday, Romney attributed last fall's Democratic takeover of Congress to anger over the war in Iraq.

"People were upset with the lack of progress in Iraq, and since they couldn't fire the coach they fired the team," the former Massachusetts governor told reporters after a private get-acquainted session with about 200 invited guests at a Richmond hotel.

___

WASHINGTON (AP) — Republican presidential candidate Tom Tancredo promised a package of gifts, including an all-expenses-paid trip to Washington and a tour of the Capitol, to anyone who brought 25 people to the GOP straw poll in Iowa on Aug. 11.

There was one problem with the pitch — a tour of the Capitol could be a violation of House ethics rules which prohibit the use of any buildings on the Capitol grounds for campaign purposes.

Scrambling to explain, the Colorado lawmaker's campaign said it was just a spelling error.

Bay Buchanan, Tancredo's national chairwoman, said Tuesday she meant supporters would get a tour of the capital city — spelled with an 'a' — which could also include a "public tour" of the Capitol building — spelled with an 'o' — in which Tancredo would go along and point out some highlights.

"He's not offering them anything any American doesn't have access to," she said. "The difference is that Tom will be joining them. There are public tours of the U.S. Capitol."

The winners would also visit some of Tancredo's favorite places in Washington, such as several war memorials, and have dinner with him a restaurant, Buchanan said.

"The intent was to spend an afternoon in the nation's capital with Tom Tancredo going to some of the places he is familiar with and enjoys and then having dinner with him," she said. "I did intend it to mean the nation's capital."

___

DES MOINES, Iowa (AP) — Republican presidential hopeful Sam Brownback said Tuesday that if the United States pulls out of Iraq too quickly, soldiers will have to return to "clean up an even bigger mess."

"Some people think we can withdraw our troops. But I would remind them of the consequences of failure in Iraq," the Kansas senator said in remarks prepared for delivery on Tuesday night in Des Moines. "Iraq would become a safe haven for al-Qaida. It would become a failed state and risk a regional war. It would descend into genocidal chaos."

Brownback said the U.S. can win the war, but it will require a political solution — not just a military solution.

In the afternoon, Brownback visited a gun range in Ames, where he fired three guns, including an AR-15 assault rifle, the civilian version of the M-16. Three shots hit just outside the bull's-eye. Another gun he borrowed gave a kickback after it was fired, eliciting a large chuckle from Brownback.

He said in recent years he hasn't hunted much but has hosted a pheasant hunt on occasion in his home state.

"You have a Second Amendment, it is a right to bear arms, and those should be stood by, and those should be honored as a right the individual has," Brownback said.

___

BOSTON (AP) — A smattering of Bush's top donors as well as Missouri's governor and the former chairman of the Florida Republican Party round out Mitt Romney's list of national finance committee chairs and co-chairs.

John Rakolta Jr. and Tom Tellefsen join eBay chief executive Meg Whitman among the 13 chairmen, while American Financial Group Chairman Carl Lindner Jr. and Ted Welch of Ted Welch investment — both major donors to President Bush, are among the 61 co-chairmen.

Also on the roster are Gov. Matt Blunt, R-Mo.; Al Cardenas, former head of the Florida GOP, as well as some of the elite from the Mormon business community, including hoteliers William and Richard Marriott, developer Kem Gardner and cancer research advocate Jon Huntsman, the father of Utah Gov. Jon Huntsman Jr., who is supporting Romney rival Sen. John McCain, R-Ariz.

All told, Romney has led the Republican field with $44.4 million in receipts, as of June 30, although the multimillionaire has also loaned his campaign $8.9 million.

___

WASHINGTON (AP) — Sen. Hillary Rodham Clinton launched an effort Tuesday to double the amount of time relatives of wounded war veterans can take off from work to help them recover.

Clinton, the early front-runner for the Democratic presidential nomination, rounded up a bipartisan group of senators seeking to extend family leave time for spouses or parents of seriously wounded troops from 12 weeks to six months.

The lawmakers are trying to make the change as an amendment to a children's health insurance bill now working its way through Congress.

"We don't have to spend any money, we don't have to build any bureaucracy, we just have to give these families the right to care for their loved one," said Clinton.

Sens. Clinton, Elizabeth Dole, R-N.C., Lindsey Graham, R-S.C., Barbara Mikulski, D-Md., and Sherrod Brown, D-Ohio said in a conference call Tuesday that they are acting in response to recommendations offered by Dole's husband, former senator and GOP presidential candidate Bob Dole, and former Clinton administration official Donna Shalala.

Dole and Shalala earlier this month issued a report highlighting gaps in the care provided to wounded veterans of the Iraq war, and suggesting dozens of improvements.

Last week another Democratic presidential hopeful, Sen. Chris Dodd of Connecticut, introduced a bill that would allow the family or primary caregivers of wounded military personnel to take up to six months of unpaid leave. The measure would double the 12-week leave provided under the Family and Medical Leave Act, which Dodd authored.

___

CINCINNATI (AP) — Republican presidential candidate John McCain is looking for some Ohio money — and some Ohio friends — for his flagging campaign.

The Arizona senator arrived in Cincinnati for a private fundraiser Tuesday evening in the wealthy suburb of Indian Hill after attending a similar event in Cleveland. The evening event was co-hosted by former Sen. Mike DeWine at the home of developer Bob Rhein.

"I'm happy to be back in Ohio where there's lots of money," he told reporters at Cincinnati's airport. "Friends, too."

McCain needs both in this key battleground state. His campaign reported ending the second quarter of the year with $3.2 million cash on hand and $1.8 million in debts.

Still, McCain told reporters that the campaign is now in good shape, despite staff shake-ups in recent weeks.

"Money is coming in fine," he said.

___

STORM LAKE, Iowa (AP) — Democratic presidential candidate Hillary Rodham Clinton pledged Tuesday to give public schools the resources they need to properly educate children.

Clinton, addressing teachers and education advocates in this northern Iowa town, also criticized President Bush's "No Child Left Behind" education initiative, one widely scorned by teachers who argue it doesn't provide schools the money needed to meet federal standards.

"I'm not sure we've given you the tools and support you need," Clinton told the crowd. "Everything else has changed."

The New York senator trumpeted her proposal to offer $10 billion over the next decade to improve public schools.

Clinton spoke at a summer conference of the Iowa State Education Association, a union representing 32,000 teachers and one of the most potent political forces in Iowa.

___

Associated Press writers Jennifer Talhelm and Devlin Barrett in Washington, Larry O'Dell in Richmond, Va., Amy Lorentzen and Mike Glover in Iowa and Lisa Cornwell in Cincinnati contributed to this report.

Edwards assails U.S. arms sales to Arabs By NEDRA PICKLER, Associated Press Writer

Edwards assails U.S. arms sales to Arabs By NEDRA PICKLER, Associated Press Writer
24 minutes ago



WASHINGTON - Democrat John Edwards said the Bush administration's plan to sell $20 billion worth of weapons to friendly Arab states amounted to a foreign policy of convenience and he will take a tougher stance with Saudi Arabia if elected president.

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Edwards said the United States should require the Saudi government to shut down the movement of terrorists across its borders, help stabilize the Iraqi government and participate more seriously in regional security before they are offered weapons.

"Whether it's Iraq or terrorism, the Saudis have fallen way short of what they need to be doing," the 2004 vice presidential nominee told The Associated Press in a telephone interview. "And the Bush administration's response is to sell them $20 billion worth of arms, which is short-term and convenient and not what the United States should be doing."

Edwards is the first Democratic presidential candidate to speak out against the deal. Defense Secretary Robert Gates and Secretary of State Condoleezza Rice visited Saudi Arabia Tuesday as part of a two-day visit with Arab allies that opened talks on the proposed U.S. arms package.

Edwards said the arms deal could backfire by giving Iran an incentive to build its nuclear strength.

"They have to try to offset the conventional arms deficiencies that they're faced with," Edwards said. "That's the whole problem with this idea that you deal with these things in terms of what's helpful at the moment instead of what needs to be done over the long term."

Edwards called the AP from a refueling stop in Garden City, Kan., between campaign stops in California and Virginia, where he helped raise about $42,000 for legislative candidates. Virginia Democrats are trying to regain control of the state Senate majority they lost 12 years ago so that they will have more influence in redrawing congressional boundaries in 2011.

Edwards told the crowd of about 100 that he wanted to help because "we cannot move progressive agendas without having stronger positions in these state legislatures."

___

Associated Press writer Bob Lewis in Vienna, Va., contributed to this report.

___

On the Net:

http://www.johnedwards.com

Texas mom kills family, self, police say By JEFF CARLTON, Associated Press Writer

Texas mom kills family, self, police say By JEFF CARLTON, Associated Press Writer
2 hours, 20 minutes ago



q FLOWER MOUND, Texas - A stay-at-home mother in an affluent Dallas suburb fatally shot her husband and two children as they slept before killing herself, police said.

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Detectives were reviewing a suicide note left in the house, where Andrea Roberts killed her husband, Michael Lewis Roberts, and children, Micayla, 11, and Dylan, 7, police said. Each had a single gunshot wound to the head.

Their bodies were found in their beds when next-door neighbor Tim Warren and Michael Roberts' mother checked on the family in the morning at the request of her son's employer after he missed a business meeting.

Michael and Andrea Roberts, both 41, had attended Micayla's soccer game the night before, Warren said.

"They seemed like the ideal couple, the ideal mom and dad," said Warren, who has lived next to the Roberts for about seven years. "Their kids were their lives."

Michael Roberts was a caring father who ran his own consulting business, Warren said. Andrea Roberts often volunteered as a room mother in her children's classes, said Charlotte Carson, a neighbor.

"She would always volunteer and step up," Carson said. "One of her biggest flaws was she couldn't say no."

Officers had responded to a domestic dispute call at the home, about 30 miles northwest of Dallas, in January after the couple had a disagreement. There were no injuries or arrests, police Lt. Wendell Mitchell said.

By Tuesday evening, neighbors had left flowers and signs on the front porch of the red brick home. One sign read, "We love you Roberts family."

In Ohio, the deaths of a 44-year-old woman, her 10-year-old son and 7-year-old daughter whose bodies found inside a Delhi Township house Tuesday were being investigated as homicides, although murder-suicide was "certainly a possibility," Hamilton County Coroner O'dell Owens said.

The woman's 24-year-old daughter, who doesn't live at the house, found the bodies, Owens said.

Japan's agriculture minister resigns By MARI YAMAGUCHI, Associated Press Writer

Japan's agriculture minister resigns By MARI YAMAGUCHI, Associated Press Writer
28 minutes ago



TOKYO - Japan's scandal-embroiled agriculture minister stepped down Wednesday, taking responsibility for a shattering election defeat for the ruling party.

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Norihiko Akagi's resignation came amid calls for Prime Minister Shinzo Abe to step down following Sunday's defeat, one of the Liberal Democratic Party's worst in its almost five-decade rule over Japan.

In Japan's hierarchical and conformist culture, it is considered fitting that leaders take responsibility for such failures by resigning. Prime ministers in the past have voluntarily stepped down after similar electoral defeats.

"There is no doubt about the cause of the ruling party's election loss. I feel very sorry, and I have decided to step down," Akagi said on nationally televised news.

Akagi had been hit by an embarrassing accounting scandal, which was widely viewed as a major reason behind the ruling election loss.

The opposition Democratic Party won a landslide, emerging as the top party in the 242-seat upper house of parliament for the first time ever.

Criticism had been growing against Abe's administration, but prime minister himself has refused to take responsibility. Instead, he announced he would soon make changes in his unpopular Cabinet.

Several ruling party members joined opposition members in criticizing Akagi's departure as an attempt deflect the public's anger away from Abe.

"It serves nothing but a negative impact," said senior ruling lawmaker Yoichi Masuzoe. "It would be seen as a life-extension measure to delay a planned Cabinet reshuffle. I can only say the prime minister's Office has lost an ability to make a rational judgment."

Akagi is suspected of reporting $730,000 in office expenses over the past decade for a political office that was registered at his parents' address and was defunct.

Akagi took office in June, replacing his predecessor, who committed suicide following money and bribery scandals. Akagi had denied any wrongdoing.

Chief Cabinet Secretary Yasuhisa Shiozaki told reporters Akagi had tendered his resignation, and that it was accepted.

Sunday's upset was fueled by voters angry about money scandals, ministers' gaffes — including those perceived as insulting to women, the elderly and atomic bombing victims — and a fiasco centered around the loss by the government of 50 million people's pension records.

The Democratic Party, the top opposition group, became the No. 1 party in the upper house for the first time ever, although the Liberal Democrats still control the majority in the more powerful lower house, where seats were not up for grabs.

Although calls for Abe's resignation intensified, there is no clear way Abe can be kicked out against his will.

The world of Japanese politics has long relied on backroom deals and consensus-building to get things done quietly and quickly. And, the upper house technically doesn't choose the prime minister, a power reserved for the lower house.

But pressures appeared to be closing in on 52-year-old Abe, who was heralded as a reformist when he took office last year with promises of making Japan more assertive on the international stage.

Ichiro Ozawa, the Democrats' leader, made clear the opposition would make Abe's ouster a rallying cry.

"I do not believe that such action that defies common sense and rules will receive the understanding of the people," Ozawa said at a party meeting on nationally televised news.

Minoru Morita, a politics expert who has written books about the Liberal Democrats, said Abe was making a grave error and was leading his party to an even more disastrous defeat in the next election.

In the past, the Liberal Democrats revived their popularity by showing remorse following election defeats, especially through the symbolic resignation of the prime minister, he said.

"Mr. Abe is being infantile," Morita said in a telephone interview. "Never in the history of the Liberal Democratic Party has the prime minister refused to step down for a nationwide election defeat."

Even if Abe is replaced, political turmoil is expected to continue.

Besides badgering Abe to quit, the opposition has vowed to push for snap elections in the lower house.

Abe reiterated his determination to hang on to his job.

"I will be sorry about matters that I need to be sorry about," he told reporters.

___

Associated Press Writer Tokyo reporter Yuri Kageyama contributed to this report.

U.N. approves Darfur peacekeeping force By EDITH M. LEDERER, Associated Press Writer

U.N. approves Darfur peacekeeping force By EDITH M. LEDERER, Associated Press Writer
43 minutes ago



UNITED NATIONS - The U.N. Security Council unanimously approved a 26,000-strong peacekeeping force for Darfur on Tuesday to try to help end four years of fighting that has killed more than 200,000 people in the vast Sudanese region.

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The force — the first joint peacekeeping mission by the African Union and the United Nations — will replace the beleaguered 7,000-strong AU force now in Darfur no later than Dec. 31.

U.N. Secretary-General Ban Ki-moon said the resolution will send "a clear and powerful signal" of the U.N.'s commitment to help to the people of Darfur and the surrounding region "and close this tragic chapter in Sudan's history."

But Ban, who has made Darfur a top priority since taking over as U.N. chief on Jan. 1, stressed that "it is only through a political process that we can achieve a sustainable solution to the conflict."

The secretary-general said it is crucial that a meeting of the parties to the conflict in Arusha, Tanzania, later this week, "yield positive results so as to pave the way for negotiations and, ultimately, a peace agreement."

Sudan's U.N. ambassador, Abdalmahmood Abdalhaleem Mohamad, told reporters the government would discuss the resolution, which "contained many positive elements, and also it went to considerable extent to satisfy our concerns."

He had reacted harshly to earlier versions of the resolution, calling one circulated last week "ugly" and "awful." Britain and France, the key sponsors of the resolution, then stripped some tough language including the threat of sanctions which Sudan and China opposed.

U.S. Ambassador Zalmay Khalilzad warned that if Sudan doesn't comply with the resolution "the United States will move for the swift adoption of unilateral and multilateral measures."

"Now Sudan faces a choice. Sudan can choose the path of cooperation or defiance," he said. "We look to its government to do the right thing and pursue the path of peace."

Earlier Tuesday, Britain's new prime minister, Gordon Brown, told a U.N. audience that "if any party blocks progress and the killings continue, I and others will redouble our efforts to impose further sanctions."

Britain's U.N. Ambassador Emyr Jones Parry said the AU-U.N. force will be the largest peacekeeping force in the world.

The conflict in Darfur began in February 2003, when ethnic African tribes rebelled against what they consider decades of neglect and discrimination by the Arab-dominated government. Sudan's government is accused of retaliating by unleashing a militia of Arab nomads known as the janjaweed — a charge it denies.

The poorly equipped and underfunded African Union force has been unable to stop the fighting, and neither has the Darfur Peace Agreement, signed a year ago by the government and one rebel group. Other rebel factions called the deal insufficient, and fighting has continued.

The U.N. and Western governments have pressed Sudan since November to accept a three-stage U.N. plan for a joint force.

After stalling for months, Sudanese President Omar al-Bashir agreed in April to a "heavy support package" to strengthen the AU force, including 3,000 U.N. troops, police and civilian personnel along with aircraft and other equipment. The resolution calls for its speedy deployment.

The resolution authorizes the much larger 26,000-strong hybrid force, which will be called UNAMID and have "a predominantly African character," as Sudan demanded.

The force will have up to 19,555 military personnel, including 360 military observers and liaison officers, a civilian component including up to 3,772 international police, and 19 special police units with up to 2,660 officers.

Estimates vary widely on the combined size of the two main rebel groups operating in the region, the Sudan Liberation Army and Justice and Equality Movement. Jane's Information Group puts the number at 10,000 fighters, while the Washington, D.C.-based Center for Strategic and International Studies estimates around 1,200 to 2,000.

The Janjaweed militia peaked at about 10,000 fighters with the Brussels-based International Crisis Group saying one faction is believed to have about 3,000 to 4,000 under arms.

Jane's said in 2005 that the overall size of Sudan's national army was 94,300 troops.

The resolution calls on U.N. member states to finalize their contributions to the hybrid force in 30 days, and the U.N. and the AU to agree on the final military composition during the same period.

The final draft has one section under Chapter 7 of the U.N. Charter, which deals with threats to peace and security and can be militarily enforced.

It authorizes UNAMID to take "the necessary action" to protect and ensure freedom of movement for its own personnel and humanitarian workers.

It also authorizes the hybrid force to take action to "support early and effective implementation of the Darfur Peace Agreement, and prevent the disruption of its implementation and armed attacks, and thus to protect civilians, without prejudice to the responsibility of the government of Sudan."

There is "nothing enjoyable in these type of things but we will deliver our commitments," Mohamed, the Sudanese envoy, said when asked about Sudan's reaction to the mandate for the new force.

GM reports 2Q profit of $891 million By TOM KRISHER, AP Auto Writer

GM reports 2Q profit of $891 million By TOM KRISHER, AP Auto Writer
Tue Jul 31, 5:28 PM ET



DETROIT - General Motors Corp. ran its string of profitable quarters to three on Tuesday when it announced second-quarter net income of $891 million that came largely from overseas operations.

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The earnings growth in Europe, Latin America, Asia and other areas eclipsed lingering problems in North America. Although GM showed vast improvement in its backyard, it still posted a net loss of $39 million there.

Nonetheless, quarterly profits announced by GM and Ford raised hopes that at least two of the Detroit Three were headed in the right direction after billion-dollar losses and talk of possible bankruptcies.

"I think it's brightening up," David Healy, an analyst with Burnham Securities, said of the clouds that had been hanging over Detroit. "Both companies have shrunk about one-third of their hourly work force and they've closed a lot of plants. They're basically adjusting to the level of business that they're doing now."

Ford Motor Co. last week posted its first quarterly profit in two years at $750 million, although the company warned it had not turned the corner to consistent profitability. Chrysler Group's second-quarter earnings results have been delayed until August by the pending sale of 80.1 percent of the company to Cerberus Capital Management LP.

The second-quarter profits may be bad timing, coming on the heels of the formal start to contract talks with the United Auto Workers, although analysts say the companies can still point to losses in North America to show the need for concessions.

GM's second-quarter profit was a huge reversal from the $3.4 billion loss it posted in the same period last year.

"Our heavy commitment to key growth markets around the world really paid off in strong growth and earnings," Chairman and Chief Executive Rick Wagoner said in a statement.

The net loss in North America was a major improvement over the second quarter of last year, when GM lost $3.95 billion.

In the second quarter of 2006, GM took a giant after-tax charge of $3.7 billion for early retirement and buyout offers that eventually reduced its hourly work force by more than 34,000.

The latest profit amounted to $1.56 per share for the April-June period, compared with a loss of $5.98 per share a year ago.

Revenue fell to $46.8 billion from $53.9 billion a year ago due largely to the sale of 51 percent of GM's former financial arm, GMAC Financial Services.

The latest profit total included $520 million in charges associated with the bankruptcy reorganization of Delphi Corp., GM's former parts arm, and other restructuring costs for GM's North American unit.

GM said its adjusted net income, excluding one-time items, was $1.4 billion, or $2.48 per share. On a comparable basis, 15 analysts polled by Thomson Financial forecast earnings of $1.13 per share.

GM shares fell 21 cents to $32.40 in trading Tuesday after rising as high as $34.65 earlier in the session.

The Detroit-based company said its net income from continuing global automotive operations was $618 million, compared with a net loss of $3.48 billion in the year-ago period.

The quarterly results exclude Allison Transmission, which GM intends to sell in the third quarter and has classified as a discontinued operation.

In Europe, the company had net income of $217 million, versus a net loss of $39 million in the same quarter last year.

The company's Asia Pacific unit posted a net profit of $227 million, compared with $376 million in the year-ago quarter, which included $212 million from the sale of GM's interest in Japanese automaker Isuzu.

In its Latin America, Africa and Middle East unit, GM said explosive growth helped it to its best quarterly net income in a decade at $213 million versus $139 million a year ago.

GM still owns 49 percent of New York-based GMAC, which on Monday reported that losses from its home lending operations caused second-quarter profits to fall 63 percent.

GMAC reported a quarterly profit of $293 million, compared with $787 million in the same period last year.

Chief Financial Officer Fritz Henderson said GM is confident it will achieve its target this year of $9 billion worth of annual cost cuts.

He would not predict when GM would make a net profit in North America, but said restructuring costs for Delphi should be less in the second half of the year, and income should rise with the Allison Transmission sale closing.

Henderson predicted revenue growth in emerging markets for the third quarter while sounding a note of caution for North America, mainly due to weak home sales and high fuel prices, which have reduced pickup truck sales.

"The challenge we have in North America and the U.S. remains foremost in our minds as we frankly are able to grow in a number of other markets around the world that have more robust growth opportunities," he said.

For the remainder of the year, he said GM expects continued improved automotive earnings and improved but still negative operating cash flow.

Henderson would not comment on whether the quarterly profit would affect the union contract talks.

The company likely is to seek concessions from the union and wants to cut a $25 per hour labor cost disparity with its Japanese competitors.

GM said its revenue per vehicle increased $1,540 in the quarter compared to the year-ago period, reflecting a more profitable product mix, reduced low-profit fleet sales and its strategy of bringing sales prices closer to the sticker and relying less on incentives.

Henderson said GM sold more high-end GMC Sierra and Chevrolet Silverado pickup truck models, but that likely will abate in the second half of the year as a wide array of lower-end models becomes available.

Already, though, the company has been forced to raise incentives on some pickup models, including zero percent financing for 60 months on extended and crew cab models to counter a highly competitive market.

Henderson said the escalation of pickup truck incentives has him worried for the second half of the year.

"We'll do what we need to do to be competitive, but there's a cost to it," he said.

___

On the Net:

General Motors Corp.: http://www.gm.com

AHM woes drag Wall Street By DAN SEYMOUR, AP Business Writer

AHM woes drag Wall Street By DAN SEYMOUR, AP Business Writer
2 hours, 54 minutes ago



NEW YORK - Shares of American Home Mortgage Investment Corp. plunged 90 percent Tuesday after the company raised fears it may become insolvent, renewing concern about worsening credit quality in the mortgage market and killing a Wall Street rally.

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The struggling mortgage lender said its financial backers have essentially pulled the plug. The Wall Street banks that lend American Home Mortgage money for home loans — which include firms like UBS AG, Bear Stearns Cos., and JPMorgan Chase & Co. — will not extend the company any more money, and some have demanded back the money they have lent.

American Home shares, which were halted all day Monday, plummeted when trading finally began at about 2 p.m. EDT and ended the day at $1.04 a share, down from $10.47 on Friday before the company first disclosed the depths of its financial woes.

The Dow Jones industrial average, which had been up as much as 140 points earlier in the day, reversed course after the resumption of trading in the company's stock and then kept falling. It fell 1.1 percent or almost 146 points for the day.

Keefe, Bruyette & Woods analyst Bose George said American Home Mortgage will probably go bankrupt, or at least be restructured into something leaving very little value for shareholders.

"The chances are low," he said of the company's prospects for survival. "The situation is radically going to be altered."

American Home Mortgage said it has over the last three weeks paid "very significant" margin calls, which occur when a lender demands compensation after a borrower's collateral loses value. The company still faces "substantial" unpaid margin calls.

This echoes reports from a number of other mortgage lenders of late, including New Century Financial Corp., the Irvine, Calif.-based lender that filed for bankruptcy protection earlier this year.

American Home Mortgage hired Lazard Ltd. and Milestone Advisors to assist in evaluating the company's options. One of those options, the company said, is an "orderly liquidation of its assets."

The company failed Monday to deliver $300 million in mortgages promised to home buyers, and said it expects to be unable to finance $450 million to $500 million in additional mortgages Tuesday.

The reason American Home Mortgage's lenders are balking is the mortgage loans that act as collateral for the company's credit lines have sunk in value. The market where investors buy mortgage loans has suffered "unprecedented disruption" this year, the company said, and it is having trouble selling its mortgages.

Last year, the lender sold two-fifths of its loans to Countrywide Financial Corp., Deutsche Bank AG, and Wells Fargo & Co.

Dozens of mortgage lenders have gone bankrupt this year as more people miss payments on home loans, housing prices sag and skittish investors flee risky mortgage debt.

But while most of the bankrupt lenders catered to "subprime" borrowers — or borrowers with checkered credit histories — almost none of American Home Mortgage's $58.9 billion in loans last year were classified as subprime.

American Home Mortgage specializes in adjustable-rate mortgages, which carry interest rates that reset according to certain benchmark interest rates. This type of debt has hamstrung a lot of borrowers in the past year because interest rates have jumped.

The company also lends to so-called Alt-A borrowers, or borrowers that cannot document their income. While Alt-A credit is not considered as unreliable as subprime, it is a step down from prime. Some banks, such as M&T Bank Corp., have recorded accounting charges this year assuming a worsening in Alt-A mortgage credit.

Alliance Bancorp, an Alt-A lender based in Brisbane, Calif., went bankrupt this year.

Separately, ratings agency Moody's Investors Service said it is increasing its assumptions for losses on pools of Alt-A loans. As delinquencies in Alt-A debt mount, Moody's said it sees signs that Alt-A loans were underwritten using similar standards to subprime loans.

Wall Street skids on subprime anxiety By MADLEN READ, AP Business Writer

Wall Street skids on subprime anxiety By MADLEN READ, AP Business Writer
1 hour, 42 minutes ago



NEW YORK - Wall Street resumed its downward skid Tuesday, falling sharply as renewed concerns about soured home loans blew away what had looked like a solid recovery rally. The Dow Jones industrials lost nearly 150 points, while investors seeking safety moved into bonds.

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Early in the session, stocks soared following strong earnings from General Motors Corp. and Sun Microsystems Inc. and amid somewhat mixed economic data. But the market pulled back after American Home Mortgage Investment Corp. said Tuesday it hasn't been able to tap into its credit lines and has hired advisers to consider its options, including the sale of its assets.

Wall Street has been concerned about lenders after some loans made to borrowers with poor credit have gone bad, and that anxiety contributed to the market's big plunge last week. Tuesday's trading showed how vulnerable the market remains, and how any advance can quickly evaporate.

"Anything that argues for higher (interest) rates and worsening credit conditions will be something that takes the air out of the market," said Denis Amato, chief investment officer at Ancora Advisors. He said the market's short-lived advance was in part made possible by a temporary easing of credit fears.

The Dow fell 146.32, or 1.10 percent, to 13,211.99 after being up as much as 140 points during the session. The move lower undid a nearly 93 point gain the blue chips saw Monday in a partial rebound from the 585 points they lost over the course of Thursday and Friday.

Broader stock indicators fell. The Standard & Poor's 500 index declined 18.64, or 1.26 percent, to 1,455.27, and the Nasdaq composite index fell 37.01, or 1.43 percent, to 2,546.27.

Bond prices, which move opposite yields, rose as investors quickly fled stocks. The 10-year Treasury note's yield fell to 4.75 percent from 4.81 percent late Monday.

Oil prices closed above $78 a barrel for the first time Tuesday on the New York Mercantile Exchange, advancing $1.38 to $78.21.

The dollar was mixed against other major currencies. Gold prices closed higher on the New York Mercantile Exchange.

"Everyone is walking on pins and needles and with the gains that were behind everybody I think they're a little more susceptible to the bad news," Amato said, referring to the tenuous nature of the session's early rally.

The initial gains came after a mixed batch of economic reports. The Commerce Department's year-over-year core personal consumption expenditures — a closely watched inflation measure — rose 1.9 percent in June, within the Federal Reserve's comfort zone. The report also showed that personal spending last month inched up 0.1 percent, its slowest pace in nine months.

And while a report from the Conference Board indicated that consumer confidence jumped to a six-year high, June construction spending dipped and the July Chicago purchasing manager's index indicated weaker-than-expected growth. The report is considered a precursor to the Institute for Supply Management's national manufacturing index, which is due Wednesday.

The market had received a boost from better-than-expected earnings from automaker GM and Sun Microsystems, which makes networking equipment. The stock market's gains Monday and decline Tuesday follow last week's sharp pullback, which was fueled by persistent worries that a deteriorating lending environment will make it harder for companies to borrow money.

As the market's about-face Tuesday shows, investors should expect continued volatility, one observer noted.

"The bottom line is volatility has picked up, and it's going to continue to pick up," said Jeff Schappe, chief investment officer at BB&T Asset Management, adding that there is potential for the market to drop another 5 percent. Last week, the Dow Jones industrial average tumbled about 5 percent from its record close of 14,000.41, reached earlier in July.

"I think investors need to not focus on the day-to-day volatility in the market, and look at the longer term," Schappe said. He noted that while credit jitters will likely keep riling the market for a while, the long-term view looks positive.

In corporate news, American Home fell $9.43, or 90 percent, to $1.04 following disclosure of its difficulties.

Adding to unease over American Home, Moody's Investors Service said it is raising its assumptions for losses on pools of Alt-A loans, which are above supbrime but below prime loans in terms of credit quality. The move could stir concerns that credit problems are spreading beyond subprime loans to a higher quality of borrower.

GM fell 21 cents to $32.40. The stock had been up much of the session after releasing its better-than-expected quarterly earnings, but followed the rest of the market lower. The company said it benefited from higher sales in markets worldwide.

Sun Microsystems jumped 21 cents, or 4.3 percent, to $5.10.

Though core inflation — which strips out volatile food and energy prices — has been registering at fairly mild levels, many investors are still concerned that energy prices will keep crimping consumer spending.

Investors also remain worried about credit getting tighter due to the faltering housing market. On Tuesday, a housing index released by Standard & Poor's showed that U.S. home prices fell for a fifth consecutive month in May by the steepest drop in about 16 years.

However, merger and acquisition activity hasn't appeared to be damped yet by tougher lending standards.

Billionaire investor Nelson Peltz's Triarc Cos. said he is willing to offer $37 to $41 a share to buy Wendy's International Inc., while The Wall Street Journal reported that its parent company, Dow Jones & Co., and Rupert Murdoch's News Corp. are close to a deal. The Bancroft family, controlling shareholders of Dow Jones, agreed to vote in favor of News Corp's bid, the newspaper reported.

Wendy's rose $1.34, or 4 percent, to $35.03.

Dow Jones shares rose $5.82, or 11.3 percent, to $57.38, while News Corp. fell 18 cents to $22.66.

Declining issues outnumbered advancers by about 9 to 7 on the New York Stock Exchange, where consolidated volume came to 4.18 billion shares compared with 4.04 billion traded Monday.

The Russell 2000 index of smaller companies fell 8.11, or 1.03 percent, to 776.12.

In Asian trading, Japan's Nikkei stock average fell 0.23 percent, Hong Kong's Hang Seng index jumped 1.96 percent, and China's Shanghai Composite Index rose 0.7 percent to a new record.

In European trading, Britain's FTSE 100 rose 2.48 percent, Germany's DAX index advanced 1.71 percent, and France's CAC-40 rose 1.85 percent.

___

On the Net:

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

Wyeth reassures analysts on Pristiq By LINDA A. JOHNSON, AP Business Writer

Wyeth reassures analysts on Pristiq By LINDA A. JOHNSON, AP Business Writer
1 hour, 9 minutes ago



TRENTON, N.J. - Federal regulators' demand for further testing of a nonhormonal drug for menopause symptoms should not delay approval of the same drug as a depression treatment, executives at drugmaker Wyeth said late Tuesday.

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In a conference call to address concerns triggered by the Food and Drug Administration's decision to require an entire new study of the drug Pristiq, officials at Wyeth said they will work closely with the FDA to speed the drug's approval as the first nonhormonal treatment for menopause symptoms.

On July 16 the FDA said it wants more data on Pristiq's effects on the heart and liver because a very small number of women in studies of the drug for menopause symptoms — mood swings, hot flashes and trouble sleeping — had serious heart or liver complications. The FDA requested Wyeth conduct a randomized, placebo-controlled clinical trial of one year or longer, a huge blow to Wyeth.

"We believe Pristiq is a safe, effective and much-needed nonhormonal therapy" for menopause, Greg Norden, Wyeth's chief financial officer, told analysts during a conference call Tuesday.

Executives at Madison, N.J.-based Wyeth also said FDA officials have reassured them that the additional safety data required to get approval as a menopause symptom treatment will not hold up approval of Pristiq as a depression treatment.

"We continue to believe it will receive approval in the first quarter of 2008" for depression, Norden said.

The study the FDA requested means the company likely won't be able to reapply for approval of the drug as a menopause drug for about 18 months, and the agency will then have about six months to review the new data and reach a decision.

The company had been counting on the drug's approval last week — or at least nothing more than a short delay — to help it rebound from a huge drop in sales of its Premarin and Prempro after the federal Women's Health Initiative in 2002 linked Prempro to higher rates of heart attacks, strokes, breast cancer and other problems. Subsequent research has found the risks were generally limited to women taking hormones in their 60s and 70s.

The two drugs were once the company's top sellers.

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On the Net: http://www.wyeth.com

Murdoch seen close to winning Dow Jones By SETH SUTEL, AP Business Writer

Murdoch seen close to winning Dow Jones By SETH SUTEL, AP Business Writer
17 minutes ago



NEW YORK - Rupert Murdoch appeared to be on the verge of clinching a deal to buy Dow Jones & Co., reportedly lining up sufficient support Tuesday to take over stewardship of The Wall Street Journal publisher from the family that has controlled it for more than a century.

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If he succeeds, Murdoch would gain one of the great trophies of U.S. journalism and a newspaper that is considered required daily reading among the business and power elite.

The deal would also expand Murdoch's already massive global media and entertainment empire News Corp., which owns the Fox broadcast network; Fox News Channel, the Twentieth Century Fox movie and TV studio; MySpace; newspapers in Australia and the U.K.; and several satellite TV broadcasters.

The Journal reported on its Web site Tuesday that a key Bancroft family trust had reversed itself and decided to support the deal, likely meaning that votes representing about 38 percent of Dow Jones' shareholder vote were now in favor of selling to Murdoch.

Combined with the 29 percent of Dow Jones shares that are publicly held and very likely to support Murdoch, the $5 billion deal appeared to have critical mass.

However, a Bancroft family spokesman cautioned that family members were still being polled about their positions and that it was too early to conclude that a particular level of support had been reached. The family controls a total of 64 percent of Dow Jones' vote through a complicated series of trusts.

The next step is for Murdoch's News Corp. to decide whether it has enough support from the Bancroft family to proceed. The media conglomerate wants to have well over a simple majority committed to the deal in order to avoid the risk of it falling apart later. News Corp.'s board was expected to meet Tuesday at 4 p.m., and Dow Jones' board was to meet later in the evening.

News Corp. hasn't said what it would consider to be a sufficient level of support for the deal, but a company spokesman said Monday that it was "highly unlikely" to proceed with the deal if support from the family remained at the level reported at that time — about 29 percent.

Dow Jones shares rose sharply Tuesday on hopes that a deal was close, and were getting closer to Murdoch's offering price of $60 a share, indicating growing confidence the deal will go through. Dow Jones shares rose $5.82, or 11.3 percent, to $57.38.

Members of the Bancroft family had a 5 p.m. deadline Monday to tell the family's lead trustee how they would vote, but negotiations apparently continued over other matters in an attempt to persuade holdout votes to sign on. The Journal reported Tuesday that Dow Jones' board had agreed to set aside funds to pay the Bancroft family's advisory fees, which could total at least $30 million.

Representatives of News Corp. and Dow Jones on Tuesday declined to comment on the continuing negotiations.

Over the past few weeks investors have been steadily pushing Dow Jones shares below the $60 price Murdoch has offered, reflecting increasing doubts about the deal going through.

The Bancroft family has been deeply divided over whether to sell to Murdoch, largely over concerns that his management style could affect the papers' coverage.

Murdoch says any concerns about corporate meddling in the Journal's news pages are unwarranted. News Corp. has agreed to create a committee that would have to sign off on any decision to hire or fire top editors at the paper.

In a lengthy letter to fellow family members last week, Bancroft descendant Crawford Hill urged them to vote for a sale, saying the family hadn't taken an active enough role in overseeing Dow Jones and was now "paying the price for our passivity over the past 25 years."

Dow Jones' board has tentatively approved the deal, and the final decision now rests with the Bancrofts. Besides several Bancroft family members, including Dow Jones director Christopher Bancroft, Murdoch's bid is also being opposed by former board member Jim Ottaway Jr., whose family controls 7 percent of the shareholder vote.

On Tuesday, Thomas Walker, who worked on the global copy desk at The Wall Street Journal, said outside of the Dow Jones building in lower Manhattan that he was quitting rather than see the paper sold to Murdoch. "I don't want to work for the man," he said.

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Associated Press Writer Sonia Moghe contributed to this report.

Obama ad focuses on special interests By NEDRA PICKLER, Associated Press Writer

Obama ad focuses on special interests By NEDRA PICKLER, Associated Press Writer
2 hours, 28 minutes ago



WASHINGTON - Democratic Sen. Barack Obama tried to distance himself from the city where he works Tuesday with a new television ad running in the leadoff presidential nominating state of Iowa.

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The ad, "Take it Back," features the Illinois senator speaking in Springfield, Ill., when he formally announced his candidacy and vowing to take back power from special interest groups in Washington if he's elected president.

"They think they own this government," Obama says in the ad. "But we're here today to take it back."

The ad also includes Obama delivering one of his biggest applause lines, one that confronts his biggest weakness — that's he too inexperienced to be president after just 2 1/2 years in the Senate.

"I know that I haven't spent a lot of time learning the ways of Washington," Obama says. "But, I've been there long enough to know that the ways of Washington must change."

The ad is meant to draw a distinction with Obama's chief rival for the nomination — New York Sen. Hillary Rodham Clinton. She argues her time in Washington has prepared her to lead from her first day in office, but Obama is trying to turn her experience into a negative at a time when voters are dissatisfied with government.

Former North Carolina Sen. John Edwards, another leading candidate in the Iowa race, also has been running against Washington politics. Edwards served one term in the Senate and was the 2004 vice presidential nominee.

In Obama's ad, an announcer says the senator has been a leader on ethics reform and has refused contributions from political action committees and Washington lobbyists.

Obama has taken money from lobbyists registered in his home state of Illinois, however, some of whom have federal interests. When lobbyists registered in Washington have given money to his campaign, Obama has returned it.

Edwards has made the same commitment.

Ethics legislation is approaching final approval in Congress this week. The House voted overwhelmingly Tuesday to require lawmakers to disclose more details of their bids to fund pet projects and their fundraising help from lobbyists.

Obama's television ads also will be accompanied by targeted radio commercials that end with a tag line that says "Paid for by Obama for America, not Washington lobbyists."

Obama also plans to hang signs that say "Not Paid for by PAC or Federal Lobbyist Money" in his campaign offices across Iowa.

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Associated Press Writer Mike Glover in Iowa contributed to this report.

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On the Net:

http://www.barackobama.com

Giuliani offers health care plan By HOLLY RAMER, Associated Press Writer

Giuliani offers health care plan By HOLLY RAMER, Associated Press Writer
2 hours, 8 minutes ago



ROCHESTER, N.H. - Republican presidential hopeful Rudy Giuliani on Tuesday offered a consumer-oriented solution to the nation's health care woes that relies on giving individuals tax credits to purchase private insurance.

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Critical to Giuliani's plan is a $15,000 tax deduction for families to buy private health insurance, instead of getting insurance through employers. Any leftover funds could be rolled over year-to-year for medical expenses.

Campaigning in this first primary state, Giuliani said his goal is to give individuals more control over their health care. The former New York mayor said as more people buy plans, insurers will drop their prices, making insurance affordable to those who lack it now.

"Government cannot take care of you. You've got to take care of yourself," he said. "As more of us do that, the cheaper it will become and the higher in quality it becomes."

Giuliani offered the broad outline of his plan but his campaign did not provide many specifics. Asked how much his plan would cost and how many of the people without insurance it would help, Giuliani said he won't have those answers for two or three months.

He also acknowledged that it could take years for insurers to drop their prices and make insurance affordable to those who don't have it.

Democratic candidates John Edwards and Barack Obama have proposed more detailed steps to deal with the 47 million Americans lacking health insurance. Edwards' plan has an individual mandate requiring all Americans to have coverage. Employers would have to share the cost of insuring workers or pay into a public program.

Edwards estimates that his plan would cost $90 billion to $120 billion per year and would be financed by repealing President Bush's tax cuts on those making more than $200,000 per year.

Obama's plan calls for the creation of a public program similar to the health plan offered to federal employees, and a National Health Insurance Exchange for consumers to shop among private plans. Employers would have to share the cost of insuring workers.

Obama estimates his plan would cost $50 billion to $65 billion per year, paid for by letting Bush's tax cuts expire on those making more than $250,000 per year.

Giuliani used his appearance to continue criticizing the Democratic candidates, contending that their plans amount to socialized medicine.

"We've got to solve our health care problem with American principles, not the principles of socialism," he said. "I know Democrats will say this is unfair, I know they'll squeal... But I'm a realist. I face reality, which is: if you take more people and have government cover it, it's called socialized medicine."

He argued that Edwards' plan would cost twice what the Democratic candidate estimated.

Giuliani also spoke in favor of tort reform, saying those who are legitimately injured by doctors should be compensated, but damages should be capped and those who file frivolous lawsuits should have to pay the physician's legal fees.

"If a person gets injured, he should be compensated, but he shouldn't get the brass ring or win the lottery," Giuliani said.

The New Yorker leads in several national polls, but trails Republican rival Mitt Romney by double digits in a recent New Hampshire survey.

Answering questions Tuesday afternoon at a hospital in Norwalk, Conn., Giuliani acknowledged that the U.S. health care system has flaws but said it is still the best in the world and would benefit from a market-based solution to the insurance issue.

In response, Democratic National Committee spokeswoman Karen Finney said, "the Giuliani-Bush health care plan has already been rejected by the American people as a risky scheme."

Edwards assails U.S. arms sales to Arabs By NEDRA PICKLER, Associated Press Writer

Edwards assails U.S. arms sales to Arabs By NEDRA PICKLER, Associated Press Writer
1 hour, 23 minutes ago



WASHINGTON - Democrat John Edwards said the Bush administration's plan to sell $20 billion worth of weapons to friendly Arab states amounted to a foreign policy of convenience and he will take a tougher stance with Saudi Arabia if elected president.

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Edwards said the United States should require the Saudi government to shut down the movement of terrorists across its borders, help stabilize the Iraqi government and participate more seriously in regional security before they are offered weapons.

"Whether it's Iraq or terrorism, the Saudis have fallen way short of what they need to be doing," the 2004 vice presidential nominee told The Associated Press in a telephone interview. "And the Bush administration's response is to sell them $20 billion worth of arms, which is short-term and convenient and not what the United States should be doing."

Edwards is the first Democratic presidential candidate to speak out against the deal. Defense Secretary Robert Gates and Secretary of State Condoleezza Rice visited Saudi Arabia Tuesday as part of a two-day visit with Arab allies that opened talks on the proposed U.S. arms package.

Edwards said the arms deal could backfire by giving Iran an incentive to build its nuclear strength.

"They have to try to offset the conventional arms deficiencies that they're faced with," Edwards said. "That's the whole problem with this idea that you deal with these things in terms of what's helpful at the moment instead of what needs to be done over the long term."

Edwards called the AP from a refueling stop in Garden City, Kan., between campaign stops in California and Virginia, where he helped raise about $42,000 for legislative candidates. Virginia Democrats are trying to regain control of the state Senate majority they lost 12 years ago so that they will have more influence in redrawing congressional boundaries in 2011.

Edwards told the crowd of about 100 that he wanted to help because "we cannot move progressive agendas without having stronger positions in these state legislatures."

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Associated Press writer Bob Lewis in Vienna, Va., contributed to this report.

___

On the Net:

http://www.johnedwards.com

Analysis: Fred Thompson faces few bumps By LIZ SIDOTI, Associated Press Writer

Analysis: Fred Thompson faces few bumps By LIZ SIDOTI, Associated Press Writer
1 hour, 10 minutes ago



WASHINGTON - Republican Fred Thompson has faced a series of bumps in his preliminary campaign, casting doubt on the strength of his would-be candidacy and raising questions about his potential for success.

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Despite the difficulties, the "Law & Order" actor and former Tennessee senator continues to post strong marks in national surveys and early primary state polls five months before voting begins. But his transformation from a man simply flirting with a bid to one on the brink of an official candidacy has been far from smooth the past few months.

His challenge: living up to the hopes of dispirited Republicans searching for a conservative to rally around in the wide-open race.

"The expectation levels are sky high right now, so that means if you don't meet them financially, you don't meet them organizationally and you don't meet them message-wise, you're in trouble," said Joe Gaylord, a Republican consultant close to former House Speaker Newt Gingrich, who also may enter the GOP race.

Thompson has had difficulty on all three fronts in recent weeks.

He has:

_Sidelined his campaign-manager-in-waiting and watched a few other aides flee what Republican critics and allies alike describe as a woefully muddled organization in which Thompson's wife, Jeri, has extraordinary control. Other staffers are considering leaving as well, seemingly frustrated with the lack of direction.

_Reported collecting nearly $3.5 million in his first fundraising month, surpassing comparable totals of some likely rivals but lagging his backers' original $5 million goal. GOP officials say subsequent fundraising has fallen off some, which could indicate soft support for Thompson or reflect the traditionally slow summer.

_Fumbled questions about his past lobbying and his current policy positions. He was dogged for weeks by his conflicting answers about whether he lobbied in 1991 for a family planning group. Now, he is under fire for reportedly saying he would sign legislation replacing all federal taxes with a sales tax, only to have his spokeswoman deny such a pledge.

The difficulties appear to be lending credence to months-long skepticism about Thompson's hunger for the quest, including whether he is ready for the rough-and-tumble of a presidential campaign and committed to doing the work necessary.

Republican observers, who privately express dismay about the state of Thompson's bid while speculating about him possibly missing his shot, argue in the next breath that there's still time for him to perform well given the uncharacteristically early race and the unsettled GOP field.

Thompson supporters insist they are unfazed.

They dismiss the signs of discontent as inside-Washington issues that voters outside the Beltway will ignore. They attribute any difficulties to growing pains common for a start-up campaign.

"Everything's operating just fine," said Mack Mattingly, a former senator from Georgia backing Thompson. "I think we're doing real well in the polls, I think we're doing well in the fundraising areas, and I'm content with the campaign structure."

Another supporter, Carl Ricker, a GOP fundraiser and a real estate developer in Ashville, N.C., argued that Thompson remains in a strong position and said: "He's going to gain more momentum and do even better once he announces formally."

Initially, Thompson's advisers indicated he would enter the race as early as July. But the month came and went, and the tentative plan was pushed back until the fall. The longer timetable allows Thompson to work out the kinks.

Late to the game compared to major rivals Rudy Giuliani, Mitt Romney and John McCain, Thompson toyed with the idea of running throughout the spring but only made his intentions clear in early June when he established the "Friends of Fred Thompson, Inc.," committee to "test the waters" of a presidential bid.

He spent the past few months setting up headquarters in Nashville and northern Virginia, hiring a few dozen staffers, giving a few speeches and raising money.

All the while, his supporters have enthusiastically portrayed him as nothing short of the second coming of conservative icon Ronald Reagan. They pumped him up as the Republican who can rally the party's right-leaning establishment and upend the Democratic nominee in the general election.

The expectations for Thompson indeed are high — perhaps too high. If the past few weeks are any indication, he runs a significant risk of failing to meet them.

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EDITOR'S NOTE: Liz Sidoti covers presidential politics for The Associated Press.

Group to deliver Bibles with newspapers By MATT CURRY, Associated Press Writer

Group to deliver Bibles with newspapers By MATT CURRY, Associated Press Writer
2 hours, 6 minutes ago



FORT WORTH, Texas - Everything from detergent to computer discs is packaged with the Sunday newspaper. So why not Bibles?

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A Christian ministry wants to deliver custom-designed New Testaments to newspaper subscribers around the country as part of an effort to find innovative ways to spread a Christian message. But even in the Bible Belt, not everyone thinks that's a good idea.

International Bible Society-Send the Light is planning on spending hundreds of thousands of dollars to distribute Bibles with 11 newspapers during 2007 and 2008. New Testaments would be packaged in pouches on the outside of newspapers, much like soap or other sample products.

The Fort Worth Star-Telegram announced in May it would deliver more than 200,000 New Testaments the last Sunday of the year. David House, the newspaper's reader advocate, said he received about 70 e-mails split between backers and those opposed to packaging the scriptures with newspapers.

"Do you have any idea how blatantly offensive this boneheaded move is to the thinking public?" a Fort Worth reader wrote in one of several letters to the editor on the topic.

Some of the outcry has come from one of the least likely sources — Christians. Bob Ray Sanders, the Star-Telegram's vice president and associate editor, said some worried that the Bibles tossed on the lawn with the newspaper would be thrown away because most people already own a Bible.

"I expected that we'd get some criticism, but I thought it would be coming from people who were not Christian or not religious at all. Many of the complaints we got were from people who were Christian and didn't like the idea," said Sanders.

After an initial outcry in May, the paper told subscribers they could opt out of the delivered Bibles, which include the New Testament and local Christian testimony.

One reader wondered if he could halt other newspaper ads he doesn't like.

"Please note on my account that I want to receive the New Testament and 'opt out' of all other forms of unwanted solicitation and advertising. I want no toxic hair cream, no aspartame-filled gum or any other form of unwanted advertising and solicitation," he wrote.

The Colorado-based International Bible Society published the New International Version of the Bible in 1978, and is one of the world's largest translators and distributors of scriptures. The group merged with Carlisle, England-based Send the Light, one of the largest distributors of Christian literature, earlier this year.

The Bible ministry's "City Reachers" project aims to reach newspaper subscribers in eight regions next year, according to its Web site. Three others, including the one in Fort Worth, are scheduled this year.

But fundraising for the projects has been slow. None has raised even half the money needed to finance the initiative yet. In Fort Worth, the group faces an Oct. 31 deadline to raise $438,000; so far, only a little more than $13,000 has been collected through church offerings and other efforts.

If the money can't be raised, the project may be delayed.

The society's Paul Tolleson said major fundraising in Fort Worth and other cities has only just begun. Some campaigns already have been delayed, but none have been canceled.

Tolleson expressed frustration with the complaints.

"It's disappointing that anyone would object to getting a Bible, which is the best read book in the whole world and has been for hundreds of years. They have the right to do with it what they want to," he said. "Do they object to getting a bag of Quaker oatmeal or Tide detergent or an AOL disc?"

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Associated Press Writer Angela K. Brown contributed to this report.

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On the Net:

City Reachers: http://www.ibs.org/cityreachers/index.php