Kyle Busch to drive for Joe Gibbs Racing By JENNA FRYER, AP Auto Racing Writer

Kyle Busch to drive for Joe Gibbs Racing By JENNA FRYER, AP Auto Racing Writer
Mon Aug 6, 6:31 PM ET



CHARLOTTE, N.C. - Kyle Busch chose to drive for Joe Gibbs Racing next season and began informing other teams Monday of his decision.

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A source close to Busch told The Associated Press that the driver had selected Gibbs after a seven-week search that began when Hendrick Motorsports released the 22-year-old driver to make room for Dale Earnhardt Jr. next season. The source requested anonymity because the deal was not finalized.

"Kyle has made his decision and is in the process of informing the teams of his preference," said Jeff Dickerson, who represents Busch through Motorsports Management International.

"As there are many details that still need to be worked out, Kyle will not be making that decision public at this time."

Two car owners who had actively pursued Busch told the AP that the driver informed them Monday he had not selected their teams. They requested anonymity because they didn't reveal Busch's selection.

Gibbs currently fields cars for two-time series champion Tony Stewart, Denny Hamlin and J.J. Yeley, who is in the final year of his contract. Busch is expected to replace Yeley, who has not put up the results necessary to keep his ride.

While Stewart and Hamlin are thick in Nextel Cup title contention, Yeley is 21st in the standings with just one top-10 finish.

Busch signed with Rick Hendrick shortly before his 18th birthday and immediately began racing in the Busch Series. He had previously driven for car owner Jack Roush, but was able to void his contract when NASCAR passed a rule that said all drivers had to be at least 18.

Hendrick put him in top equipment, and moved him up to the Cup Series in 2005. Busch has scored four Cup wins, eight Busch victories and won four times in the Truck Series. He made the Chase for the championship last season, but finished 10th in the standings.

He's currently eighth, with one win this year, and on pace to make the Chase again. But he became expendable at Hendrick when the team needed to make room for Earnhardt.

Hendrick said at the time that negotiations on a new contract had stalled because so many team owners were interested in the young, talented driver, which made it easier to sign Earnhardt.

But Busch later said he was unaware of outside interest and had only been interested in extending his deal with Hendrick. He then fired his representation and moved to MMI, which also represents Stewart.

Witness lied to police for backup punter By PAT GRAHAM, AP Sports Writer

Witness lied to police for backup punter By PAT GRAHAM, AP Sports Writer
2 hours, 33 minutes ago



GREELEY, Colo. - A woman who dated a Northern Colorado backup punter accused of trying to kill the starter testified Monday she lied to police at his request.

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At first, Angela Vogel told police Mitch Cozad was with her at the time starter Rafael Mendoza was stabbed, but she said she quickly regretted that lie and 15 minutes later told investigators Cozad had left for part of the evening.

Cozad, of Wheatland, Wyo., is on trial on charges of attempted first-degree murder and second-degree assault in the Mendoza stabbing last Sept. 11. Police and prosecutors have alleged Cozad attacked Mendoza in a bid to get the starter's job.

Vogel said Cozad led her to believe that a player had been jumped by a group of people, and she didn't learn Mendoza had been stabbed until police interviewed her the next day.

"I didn't know what was going on," she said. "I was lying to the cops."

Mendoza was attacked in the parking lot of his apartment complex in Evans, a small town adjacent to Greeley. He was left with a deep gash in his kicking leg but later returned to the team. He testified he could not see who attacked him.

The trial entered its second week Monday. Prosecutors were expected to wrap up by Tuesday, and the case was expected to go to the jury later in the week.

Vogel said she and Cozad were together in the early part of the evening of Sept. 11, but he got a phone call and said he had to leave.

It wasn't clear when that call came, but at 10 p.m., Cozad called and they met up again, later going out for tacos, she said.

Police have said Mendoza was stabbed at about 9:30 p.m.

When police interviewed her on campus on Sept. 12, Vogel said: "I did what Mitch told me to, (told officers) that we were together, and I didn't say we went out for tacos."

Later, she said: "I went back to my dorm room and broke down. I was like, 'Oh my God, what did I just do?'"

She said she sought out police on her own to change her story and ran into detectives in the elevator on the way to meet with them. She said the decision to talk again was "kind of mutual."

"They were finding holes in my story, and I said 'I'm coming clean,'" she said.

During cross-examination by defense attorney Joseph Gavaldon, Vogel said she got scared when police accused her of being with Cozad on a crosstown trip to Mendoza's apartment the night of the stabbing.

"They started treating you as a suspect," Gavaldon said.

"Yes, they did," she replied.

Prosecutors showed a series of text messages that they said Cozad sent Vogel on Sept. 12 and 13. They included:

• "We were not apart between 8 and 12."

• "Please be strong for me did u say we got food?"

• "U can stop all of this."

When the prosecutor asked Vogel if Cozad ever spoke to her about stabbing someone, she said he once asked her, "What would you think would hurt the most, getting hit by a car, getting beat by a baseball bat or getting stabbed?"

"I thought it was very strange," she said.

Earlier Monday, Evans Police Detective George Roosevelt testified he found a black hooded sweat shirt in Cozad's dorm room hours after the stabbing. Roosevelt said he accompanied Cozad to his dorm room and looked around with Cozad's permission.

Mendoza has said his attacker was dressed in a black hooded sweat shirt cinched up around the face so only the eyes were visible.

Former detective Angela Quinn testified last week that another black hooded sweat shirt with white stripes on the sleeves was found in a later search of Cozad's room.

Leo Carrillo, who was Evans interim police chief at the time, described finding a black-handled knife with a 5-inch blade beside a road on Oct. 2. Carrillo has since retired.

Scott Pratt, a fingerprint specialist for the Colorado Bureau of Investigation, testified he could not find any usable prints on it.

Pacman plans to tangle in wrestling ring By TERESA M. WALKER, AP Sports Writer

Pacman plans to tangle in wrestling ring By TERESA M. WALKER, AP Sports Writer
Mon Aug 6, 6:51 PM ET



NASHVILLE, Tenn. - Adam "Pacman" Jones is stepping into the ring and giving pro wrestling a whirl.

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His latest career move was announced Monday at a new conference. The suspended Tennessee Titans cornerback, who has rarely talked to the media recently, didn't attend as promised but released a statement.

"I am a big fan of wrestling, so I wanted to give it a try," he said. "I respect wrestling and I'm not coming in like it's just a show. I want to prove that I am the greatest team-sport athlete."

Total Nonstop Action Wrestling co-founder Jeff Jarrett said Jones' daughter had arrived from Atlanta on Sunday and the player was with her.

NFL contracts prohibit non-football activities that could cause injury. Jones' agent, Michael Huyghue, said last week he had talked with the Titans about Jones' plans with TNA. The agent said Jones would not be wrestling. A response from the Titans management was not immediately available.

Jones was suspended in April for the 2007 season by NFL commissioner Roger Goodell for repeated conduct violations. He dropped his appeal of that punishment in June.

TNA announced Jones had signed his contract and was promoting Jones' appearance on its Web site. His first television appearance will be Thursday night during TNA's iMPACT! show, but the show already has been taped, including Jones' appearance.

"He's looking forward to coming in and wrestling," Jarrett said. "He wants to concentrate on the tag-team aspect of wrestling."

Jarrett said TNA has featured appearances from Chicago Bears linebacker Brian Urlacher, 2005 World Series MVP David Eckstein, Chicago White Sox catcher A.J. Pierzynski and New York Yankees outfielder Johnny Damon.

But none of those athletes appeared while suspended from their day jobs.

Asked how Jones will be portrayed, Jarrett said to tune in Thursday night and the audience will dictate whether the cornerback becomes a good guy or "heel."

"I'm a third generation in this business. The wrestling business is built literally on conflict and controversy and larger-than-life personalities. I know that the media certainly knows Pacman from one side of his personality," Jarrett said.

"I really think he's a very charismatic guy. When you get to know him from our approach — very marketable — and you'll see when you tune into the pay-per-view on Sunday the response he will get. He's a star. He's a star."

Goodell was asked about Jones' wrestling activities when he visited the Titans' camp Saturday. Goodell said it was up to Jones to decide what's in his best interest as he tries to earn his way back onto the field.

"I've often said that it's not about what you say, it's about what you do," Goodell said. "It's your actions. And I think the actions will have to determine that."

Jones has been arrested six times since being drafted by the Titans in April 2005, including June 22 when he turned himself in on two felony counts of coercion in a Las Vegas strip club fight earlier this year that left a man paralyzed.

His bid to join the Titans in training camp was denied by the NFL on July 26. Jones' case will be reviewed after the Titans' 10th game, which is Nov. 19.

Jarrett said he and other TNA wrestlers have been working with Jones, and he was impressed with the athletic ability of the first defensive player taken in the 2005 draft.

"I've never been in the ring with someone with more natural athletic ability," Jarrett said.

He wouldn't be the first Titans player to make a TNA appearance. Titans defensive end Kyle Vanden Bosch worked the corner for retired tight end Frank Wycheck at a TNA tag team match in June in Nashville.

Vanden Bosch said after Monday's morning practice that he consulted with Titans officials about what he could and could not do in that appearance. He called wrestling a "soap opera" for grown men and said Jones must weigh whether it's worth doing if team officials don't want him taking part.

"He has to keep continuing to take the little steps to get in good favor with his teammates and this organization," Vanden Bosch said. "I don't know what kind of step this is. It can be a good step. He also has to take steps to rehabilitate his image with the public."

Several Titans declined to talk about Jones. Tight end Ben Troupe said he would record Thursday night's show if the training camp schedule keeps him busy with meetings. He hopes Jones will be careful.

"I hope it's worth it, and I hope it don't violate his contract either," Troupe said.

Bonds rested, ready for home run record Mon Aug 6, 3:58 PM ET

Bonds rested, ready for home run record Mon Aug 6, 3:58 PM ET



SAN FRANCISCO - Barry Bonds is expected to return to the Giants starting lineup tonight against the Washington Nationals in what is assured of being a frenzied AT&T Park. Bonds sat out Sunday's series finale agianst the Padres in San Diego after tying Hank Aaron with his 755th career home run Saturday night.

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The Nationals, who ride a six-game winning streak into the series opener, will send rookie John Lannan to the mound in an attempt to slow Bonds on his march toward the history-making homer

Yankees edge Jays to win 4th straight 2 hours, 27 minutes ago

Yankees edge Jays to win 4th straight 2 hours, 27 minutes ago



TORONTO - Jesse Litsch's first pitch of the second inning went behind Alex Rodriguez's legs, an apparent message. The Yankees responded with some hard play — and another win.

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Robinson Cano hit a go-ahead, two-run double in a four-run sixth inning, Andy Pettitte won consecutive starts for the first time this season and the Yankees beat the Toronto Blue Jays 5-4 on Monday to extend their winning streak to four.

Yankees manager Joe Torre and some New York players moved to the top step of the dugout after the pitch to A-Rod, who stared back at plate umpire Mark Carlson and later worked out a walk. When the Yankees last played in Toronto on May 30, Rodriguez distracted infielder Howie Clark on a key popup late in the game, yelling something as he approached third base.

On Monday, Rodriguez slid hard into shortstop John McDonald while trying to break up a double play in the fourth, swiping his left arm in anger, and Johnny Damon collided with Aaron Hill on a forceout in the fifth, appearing to clip the second baseman on a leg.

The Yankees' Jorge Posada and Toronto's Matt Stairs were each hit by pitches, but no warnings were issued.

Two days after hitting his 500th home run, Rodriguez went 2-for-3 with a walk, moving his average back up to .301.

New York improved to 19-7 since the All-Star break, moved 12 games over .500 for the first time this year and stopped Toronto's home winning streak at eight. The Yankees, 9 1/2 games back in the wild-card race after play on July 7, began the day just a half-game behind Detroit, the AL wild-card leader.

With the Yankees playing a team with a winning record for the first time since July 8, Pettitte (8-7) allowed three runs and six hits in 5 2-3 innings with seven strikeouts and four walks, improving to 41-16 in August. In his 300th start for the Yankees, Pettitte tied Waite Hoyt for eighth on the team's victory list (157).

Mariano Rivera pitched the ninth for his 18th save in 20 chances, striking out Alex Rios, Vernon Wells and Frank Thomas on 16 pitches.

Melky Cabrera, who had three hits, tripled and scored on Damon's grounder in the third, but Thomas hit a two-run double in the bottom half and Wells singled in a run in the fifth.

Bobby Abreu walked and Rodriguez singled, chasing Litsch. Hideki Matsui greeted Scott Downs (1-2) with an RBI single, Jorge Posada struck out and Cano doubled to left-center for a 4-3 lead. One out later, Cabrera hit an RBI single through the right side.

Called up from Triple-A before the game, Jim Brower relieved Pettitte with runners at first and second in the sixth and retired Reed Johnson on an inning-ending lineout.

Aaron Hill homered off Luis Vizcaino in the eighth, which ended when Johnson grounded out with two on.

Litsch allowed three runs and six hits in five-plus innings.

Notes:@ Soccer star David Beckham and his Los Angeles Galaxy teammates watched the game from a private suite, and Beckham spoke with Torre before the game. Canadian teammates Ante Jazic and Kevin Harmse threw out ceremonial first pitches. ... The crowd of 42,714 was Toronto's biggest since opening day.

`Bourne Ultimatum' No. 1 at box office Mon Aug 6, 5:45 PM ET

`Bourne Ultimatum' No. 1 at box office Mon Aug 6, 5:45 PM ET



LOS ANGELES - "The Bourne Ultimatum" was accepted with pleasure by moviegoers, who identified with superspy Jason Bourne and gave the film box-office supremacy over the weekend.

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The third film in the "Bourne" franchise earned $69.3 million in its opening weekend.

The top 20 movies at U.S. and Canadian theaters Friday through Sunday, followed by distribution studio, gross, number of theater locations, average receipts per location, total gross and number of weeks in release, as compiled Monday by Media By Numbers LLC:

1. "The Bourne Ultimatum," Universal, $69,283,690, 3,660 locations, $18,930 average, $69,283,690, one week.

2. "The Simpsons Movie," Fox, $25,110,873, 3,926 locations, $6,396 average, $128,060,578, two weeks.

3. "Underdog," Disney, $11,585,121, 3,013 locations, $3,845 average, $11,585,121, one week.

4. "I Now Pronounce You Chuck and Larry," Universal, $10,626,345, 3,290 locations, $3,230 average, $91,795,450, three weeks.

5. "Harry Potter & the Order of the Phoenix," Warner Bros., $9,522,220, 3,125 locations, $3,047 average, $261,027,397, four weeks.

6. "Hairspray," New Line, $9,225,378, 3,115 locations, $2,962 average, $78,854,798, three weeks.

7. "No Reservations," Warner Bros., $6,588,375, 2,425 locations, $2,717 average, $24,175,203, two weeks.

8. "Transformers," Paramount, $6,021,472, 2,419 locations, $2,489 average, $296,379,328, five weeks.

9. "Hot Rod," Paramount, $5,310,711, 2,607 locations, $2,037 average, $5,310,711, one week.

10. "Bratz," Lionsgate, $4,208,455, 1,509 locations, $2,789 average, $4,208,455, one week.

11. "Ratatouille," Disney, $3,987,800, 1,940 locations, $2,056 average, $188,246,213, six weeks.

12. "El Cantante," Picturehouse, $3,202,035, 542 locations, $5,908 average, $3,202,035, one week.

13. "Live Free or Die Hard," Fox, $2,132,768, 1,422 locations, $1,500 average, $130,178,275, six weeks.

14. "I Know Who Killed Me," Sony/Tristar, $1,165,378, 1,320 locations, $883 average, $6,231,700, two weeks.

15. "Who's Your Caddy," MGM, $1,092,324, 962 locations, $1,135 average, $4,803,661, two weeks.

16. "Becoming Jane," Miramax, $972,066, 100 locations, $9,721 average, $972,066, one week.

17. "Talk to Me," Focus, $674,089, 187 locations, $3,605 average, $2,840,675, four weeks.

18. "Rescue Dawn," MGM, $560,903, 505 locations, $1,111 average, $4,218,459, five weeks.

19. "Knocked Up," Universal, $503,730, 392 locations, $1,285 average, $146,284,175, 10 weeks.

20. "Sicko," Lionsgate, $503,702, 349 locations, $1,443 average, $22,640,294, seven weeks.

___

On the Net:

http://www.mediabynumbers.com

___

Universal Pictures and Focus Features are owned by NBC Universal, a joint venture of General Electric Co. and Vivendi Universal; Sony Pictures, Sony Screen Gems and Sony Pictures Classics are units of Sony Corp.; DreamWorks, Paramount and Paramount Classics are divisions of Viacom Inc.; Disney's parent is The Walt Disney Co.; Miramax is a division of The Walt Disney Co.; 20th Century Fox, Fox Searchlight Pictures and Fox Atomic are owned by News Corp.; Warner Bros., New Line, Warner Independent and Picturehouse are units of Time Warner Inc.; MGM is owned by a consortium of Providence Equity Partners, Texas Pacific Group, Sony Corp., Comcast Corp., DLJ Merchant Banking Partners and Quadrangle Group; Lionsgate is owned by Lionsgate Entertainment Corp.; IFC Films is owned by Rainbow Media Holdings, a subsidiary of Cablevision Systems Corp.

Forbes: Damon's a `Bourne' moneymaker 2 hours, 5 minutes ago

Forbes: Damon's a `Bourne' moneymaker 2 hours, 5 minutes ago



NEW YORK - Matt Damon is Hollywood's best investment, says Forbes. com.

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For every dollar he was paid for his last three roles, Damon brought in $29 of gross income, the site calculated.

That put the 36-year-old "Bourne" star atop a Forbes list of 22 film heavyweights, ranked by the same financial formula.

The first two "Bourne" movies grossed an estimated $850 million at the box office and in DVD sales, Forbes said. The third installment, "The Bourne Ultimatum," opened last weekend and raked in $70.2 million at the box office. It was the biggest August film opening ever.

Brad Pitt took second place on the list, with a gross income return of $24 for each dollar of his pay, and Vince Vaughn tied with Johnny Depp for third with $21.

Pitt's ex-wife, Jennifer Aniston, is the most profitable actress with a gross income return of $17. Pitt's current significant other, Angelina Jolie, ranked sixth with $15.

"The biggest stars in Hollywood are not the actors that deliver the biggest returns," Forbes senior editor Michael Ozanian said in a statement Monday.

Russell Crowe is at the bottom of the list. His last three films — "A Good Year," "Cinderella Man" and "Master and Commander" — averaged just $5 in gross income for every dollar spent on the Oscar winner, Forbes said.

Movies starring the two Toms — Hanks and Cruise — averaged $12 and $11 of gross income, respectively. Will Smith and Denzel Washington each brought in $10.

On the comedic front, Adam Sandler brought in $9 per dollar earned, Will Ferrell and Jim Carrey $8 each).

Forbes.com calculated the net revenue for a film by adding the worldwide box office and revenues from U.S. DVD and video rentals and then subtracting its budget. The net revenue was divided by the actor's total compensation to derive gross income. The average gross income of an actor's last three films produced their box-office return.

The "Ultimate Star Payback" list was posted Monday.

___

On the Net:

Forbes:

http://www.forbes.com

(This version CORRECTS money total in paragraph 4 to $850 million.))

UK farmers pray outbreak is contained By JANE WARDELL, AP Business Writer

UK farmers pray outbreak is contained By JANE WARDELL, AP Business Writer
Mon Aug 6, 6:02 PM ET



LONDON - Michael Fordham remembers all too well the ravages of the foot-and-mouth epidemic that swept Britain in 2001 — millions of cattle destroyed and a personal financial burden almost impossible to bear.

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Six years later, government measures to contain a new outbreak of the highly contagious disease are threatening Fordham's farm of 90 head of cattle near the town of Uckfield in southern England.

"I couldn't believe it, it was absolutely staggering to think it could happen again," he said Monday. "And on top of all the flooding and bad weather."

Severe floods in June and July had already proved costly for farmers, and authorities were looking into the possibility that the flooding helped spread the virus.

On Monday night, authorities began slaughtering a new group of about 50 cattle suspected of being infected, Britain's Chief Veterinary Officer Debby Reynolds said. The cows were within the initial 2-mile radius protection zone officials set up Friday around the Surrey farm. About 120 cows were destroyed after the virus was first detected last week.

Test results from the new group were expected Tuesday, but the precautionary slaughter had already begun, Reynolds told Sky News.

The investigation was focusing on a research laboratory near the Surrey farm where two cattle were discovered with the disease last week. The strain of the disease found in the infected cattle is the same one used at the laboratory.

Fordham heard news of the outbreak when he switched on the TV after a day in the fields doing long overdue work prevented by the rising waters, such as haymaking.

Now, a swift ban imposed by the government on all movement of cattle, sheep, goats and pigs nationwide threatens the viability of Fordham's small store at Bradford Farm. He was unable to send selected cattle to the slaughterhouse this week, and a longer ban would eventually drain his supply of goods for sale.

At the national level, the Farmers Union said the government's voluntary ban on exports of livestock, meat and milk has already cost millions of dollars. The ban was imposed Saturday, a day after the discovery of the disease at the Surrey farm.

The European Commission endorsed Britain's ban Monday. Each week it lasts is expected to cost Britain millions more, and a long-term ban is also likely to cause the domestic price of British meat to plummet.

"We know from long and bitter experience that a ban on exports leads to very low prices," said National Farmers' Union director of communications Anthony Gibson. "Further price cuts could be the last straw for an awful lot of people."

The EU, which was accused of retaining its 2001 ban longer than necessary, tried to ease some of the economic impact this time. It said it would allow imports of animal products produced before July 15, which were treated in a way to inactivate the virus, and those manufactured in Britain but derived from animals reared outside the country.

Imports of British pigs and pork products have been banned by the United States, Japan, Russia and South Korea in response to the outbreak. The United States and Japan already have bans in place on British beef imports.

Britain's Meat and Livestock Commission said cattle and beef exports in 2006 were worth more than $200 million. Sheep and sheepmeat exports were valued at almost $510 million, while pig and pork exports accounted for nearly $360 million.

Exports of British beef only resumed in May 2006, reversing a 10-year ban that followed the discovery of a link between bovine spongiform encephalopathy, or mad cow disease, and the variant Creutzfeldt Jakob Disease in humans.

Many farmers are still recovering from the outbreak of foot-and-mouth in 2001, when 7 million animals were slaughtered, costing the economy around $17 billion.

"By its nature, farming is a long term business, with sheep flocks just coming out of the aftereffects of 2001," said Malcolm Corbett, the head of the National Farmers Union. "This is a real body blow to the livestock industry."

Along with domestic sales and exports, tourism could be hit.

Former Prime Minister Tony Blair's decision to shut down large swaths of the countryside and appeal for people to stay in the cities to avoid spreading the disease was blamed for worsening the 2001 outbreak's effect on tourism.

This time around, while keeping a tight reign on livestock movements, Prime Minister Gordon Brown has stressed that the countryside remains open to tourists.

Foot-and-mouth can be fatal among young hogs, sheep and cattle, while infection in older animals causes blistering on the mouth and tongue, reducing milk and meat production. Foot-and-mouth can be carried by wind and on the vehicles and clothes of people who come into contact with infected animals.

Whether the latest scare reaches the proportions of the 2001 epidemic depends on containment, and farmers have so far welcomed the government's efforts.

Brown visited an emergency response center in Reigate on Monday and promised "no resources will be spared to get to the bottom of this because we know the future of farming depends on it."

Meanwhile, Merial Animal Health, the private company that shares the research laboratory with the government's Institute for Animal Health, said it was temporarily resuming production of its foot-and-mouth vaccine to meet a government order for 300,000 doses of a strain-specific vaccine.

All Fordham can do is keep a close eye on his cattle — it can take 10 days for symptoms to show in infected animals — and hope the virus does not spread.

"You just pray when you see something resembling the symptoms, that it's not foot-and-mouth," he said. "We just hope this is an isolated incident."

Odd treadmill may help stroke survivors By LAURAN NEERGAARD, AP Medical Writer

Odd treadmill may help stroke survivors By LAURAN NEERGAARD, AP Medical Writer
2 hours, 34 minutes ago



WASHINGTON - A weird treadmill is pushing people at a Baltimore research hospital into sloppy versions of Michael Jackson's moonwalk, in hopes of training stroke survivors and others with brain injuries to walk normally again.

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The custom-built treadmill hides a split belt — one side can move one foot backward while the other moves forward, and at different speeds.

It can be a wild ride: Your brain must automatically adjust how you walk so you won't fall down.

Scientists at the Kennedy Krieger Institute are tapping into that unconscious adjustment, using a brief workout to jolt patients who usually limp and lurch back into a normal stride, one they retain for a few minutes after the treadmill stops.

The discovery: Separate nerve networks control how each leg moves, networks that can be retrained to change someone's innate walking patterns, at least temporarily.

Now the challenge is to make the better walking permanent. This fall, Kennedy Krieger's Dr. Amy Bastian will begin a government-funded study putting at least 40 stroke survivors through longer sessions with the wacky treadmill, to see if practice helps the improvement stick.

Because Kennedy Krieger is a pediatric research institute, she hopes eventually to begin a similar study with children recovering from major brain surgery.

The findings offer a glimpse into the newest frontier in rehabilitation research: How to spur brain and spinal cord circuitry to rewire itself for normal leg control after a stroke or other brain injury.

"The amazing thing about walking control (is) when you try to consciously override things, it doesn't work so well," says Bastian, who has personally tested the treadmill.

"The belts start moving and if you think about it, you start to screw it up. If you just let your system take over, it's these lower, less conscious control networks that can do this, no sweat," she explains. "Those are the ones we want to train."

A healthy brain continually adapts and reorganizes itself, a condition called plasticity. It's easiest for younger brains, but it is possible to spur this process even in older people. For example, tying down a stroke victim's good arm while repeatedly exercising the weak one strengthens arm circuitry in the stroke-damaged brain region while improving movement.

Far less research has been done on ways to improve rehab for the legs, however.

The split-belt treadmill is "a fascinating concept," says Dr. Milton Thomas of the Baylor Institute for Rehabilitation, who was amazed that Bastian's experiments didn't have people falling down. The research "showed both legs are taught to function almost independent of each other — or can be."

First, Bastian tested the funky walking on 40 healthy people. Sometimes, the treadmill moved their legs in opposite directions. Sometimes it moved one leg up to four times faster than the other.

With a 15-minute session, she essentially retrained them to walk with a lurch. No matter how hard they tried to walk normally when the session ended, they couldn't for 10 minutes or so — until automatic nerve systems recalibrated themselves again.

Tracking that adjustment, Bastian reported in the journal Nature Neuroscience last month that there are separate neural networks to control forward walking and backward walking, and each leg, too. That means researchers might target just the bad leg.

What about people with brain injuries? Thirteen stroke survivors who had limped for months saw that same brief improvement from the treadmill test, Bastian and University of Delaware physical therapist Darcy Reisman reported in the journal Brain.

That suggests the right circuitry for good walking is lying dormant in these patients, if doctors can learn to tap it.

Then Bastian tried the technique with a few children relearning to walk after surgery removed half of the brain to stop seizures. Video shows Beth Nielsen, then 4 1/2, pointing her right foot outward and dragging it. After a treadmill session, she strides correctly for a few minutes.

"One of the highlights of her day was to get to do that," says her mother, Sharon Nielsen, of Woodbury, Minn.

Beth went on to regular physical therapy, and six months later Nielsen says she walks fairly well unless she's tired.

A split-belt treadmill isn't the only approach under study. The Baylor Institute for Rehabilitation in Dallas is having success training brand-new stroke victims to walk normally by giving them specially supervised sessions on a regular treadmill as soon as they can stand but before they've tried walking on their own.

"We're extraordinarily excited about this," Thomas says.

But this is key: Wait until six months after the stroke and the Baylor method is too late. Patients who try walking on their own immediately compensate for the weak leg with a limping gait that the body soon adopts as its new normal, he explains.

So Thomas was impressed that the Baltimore team is tackling long-term limpers.

"The fact that these guys were able to disrupt the (ingrained) pattern is, I think, groundbreaking," he said. "It's going to be really interesting to see what comes of this."

_____

EDITOR'S NOTE — Lauran Neergaard covers health and medical issues for The Associated Press in Washington.

FDA approves novel drug AIDS patients By LAURAN NEERGAARD, AP Medical Writer

FDA approves novel drug AIDS patients By LAURAN NEERGAARD, AP Medical Writer
Mon Aug 6, 5:58 PM ET



WASHINGTON - The government approved a novel drug Monday to help patients with the AIDS virus who are running out of options, while acknowledging lingering questions about the pills' long-term effects.

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Pfizer Inc.'s Selzentry is the first anti-AIDS drug that works by blocking a crucial doorway, called the CCR5 receptor, that the HIV virus often uses to enter white blood cells.

New York-based Pfizer said the pill, known chemically as maraviroc, would be available next month. A spokeswoman said it would cost about the same as other HIV medicines, roughly $900 a month wholesale.

It marks the first in a new class of HIV medicines since 2003, when the FDA approved an injectible "fusion inhibitor" that blocks a slightly later stage of infection.

Researchers have long known that people who naturally lack a working version of the CCR5 doorway are somewhat resistant to HIV infection, and slow to develop AIDS if they do become infected. But the race to develop CCR5 receptor blockers slowed with concerns that this family of drugs might cause serious side effects, including liver or heart damage, and an increased risk of other infections or cancer.

The Food and Drug Administration approved Selzentry after concluding that certain hard-to-treat patients need the new option — but is requiring Pfizer to conduct further research to assess long-term side effects, said Dr. Debra Birnkrant, the agency's HIV drugs chief.

For that select group, Selzentry's "benefits clearly outweigh the risks," Birnkrant said. "That doesn't mean there aren't any risks."

The drug is not for the newly diagnosed, but only for patients whose virus is fast becoming resistant to today's HIV drugs, she stressed.

Those patients also must get a blood test to ensure the HIV strain they have uses the CCR5 pathway. Doctors would send a frozen blood sample to a San Francisco testing company, Monogram Biosciences.

Patients determined to have so-called "R5 virus" would take the twice-a-day pill in addition to their usual HIV drugs.

In a six-month study where patients added either Selzentry or a dummy pill to their regular medicine, Selzentry users were twice as likely to have their virus levels become almost unmeasurable, she said.

Topping the side-effect list is a stern warning that the drug may damage the liver, with symptoms that may at first mimic an allergic reaction. People who develop signs of hepatitis or an allergic reaction should see a doctor immediately.

Pfizer also warned that studies counted more cardiovascular problems, including heart attacks, in Selzentry users. Other side effects include dizziness, upper respiratory infections and fever.

Pfizer said it planned to use the brand name Celsentri outside the U.S. The FDA forced a spelling change for fear of mixups with similar-sounding drugs here, Birnkrant said.

Nissan shows safety technology By YURI KAGEYAMA, AP Business Writer

Nissan shows safety technology By YURI KAGEYAMA, AP Business Writer
Mon Aug 6, 5:04 PM ET



YOKOSUKA, Japan - Some Nissan cars will soon come with a gas pedal that lifts to warn of possible collisions, while the cars will automatically stop if drivers take their foot off the accelerator in response to the warning.

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The technology combines radar sensors and a computer system to assess a car's speed and the distance to a vehicle in front, Nissan Motor Co. said Monday. Cars with the new safety features will be available this year in Japan, and next year in the U.S.

The idea was to make a car that judges dangers on its own, like a friendly animal, so machine and driver can work together, said Nissan Senior Manager Yousuke Akatsu.

"It is almost like riding a horse, the way the rider can have a dialogue with the horse," he said.

As soon as drivers lift their foot off the gas pedal, the brakes kick in automatically to bring the car to a stop, Akatsu said. The car will keep going if the driver continues to step on the gas pedal.

Nissan also showed an experimental system that measures alcohol levels in a driver's sweat from sensors in the gearshift. The system stops short of locking the ignition but issues a warning in an electronic voice.

Nissan said drunken driving caused 611 fatal accidents in Japan last year. That's half the number of a decade ago, but 10 percent of fatal accidents.

The car also recognizes if a driver is drifting between lanes, and comes with a computerized camera that monitors blinking to check if a driver is drunk or drowsy.

Nissan officials said people probably wouldn't buy such an intrusive car, but the technology may have commercial uses such as in delivery trucks and taxi cabs.

More practical is the lane departure prevention technology, which swivels a car back into its lane if it swerves off. The lane technology is being offered later this year in the U.S. on the Infiniti EX luxury model.

Nissan also showed a dummy crash test to demonstrate bumper sensors that release a hinge to lift the engine hood slightly and soften the impact if a pedestrian is hit.

People hit by sporty models can be more hurt more seriously and easily, because the cars are lower to the ground and have lean designs with little space between the hood and engine. Raising the hood on impact helps absorb the shock and reduces the potential injury to a pedestrian.

The pop-up hood will be offered in Japan this year, Nissan said. Jaguar, owned by Ford Motor Co., and Honda Motor Co. already offer the feature.

Bush administration upholds phone ban By ELLIOT SPAGAT, AP Business Writer

Bush administration upholds phone ban By ELLIOT SPAGAT, AP Business Writer
Mon Aug 6, 6:38 PM ET



SAN DIEGO - The Bush administration upheld an import ban Monday on phones that contain Qualcomm Inc. chips, further threatening the introduction of new handsets.

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U.S. Trade Representative Susan Schwab said she was sticking to a long practice of declining to overrule the U.S. International Trade Commission unless conditions were "extraordinary." The executive branch has overruled the ITC only five times, most recently in 1987.

In June, the ITC banned imports of new, high-end phones that run on Qualcomm chips, raising doubts about the introduction of some models from carriers and manufacturers like LG Electronics Inc. and Samsung Electronics Co.

The ITC ruling came in patent dispute between Qualcomm and rival chipmaker Broadcom Corp. The commission found that Qualcomm infringed on a patent that protected Broadcom's technology to conserve battery power.

Qualcomm said it will ask a federal appeals court to overturn the ban. Chief Executive Officer Paul Jacobs said in a statement that he was disappointed but added that Qualcomm will pursue "all legal and technical options available" to limit the impact on consumers.

The ban applies to the high-speed EV-DO and WCDMA network technologies, which allow users to more quickly surf the Internet and download music and video.

Schwab acknowledged worries that the ban may slow the introduction of so-called third-generation, or 3G, mobile phones but said Broadcom's licensing deals with "two major wireless carriers" would soften the impact.

Verizon Wireless, whose phones run on Qualcomm chips, struck a deal with Broadcom last month to pay for each phone it sells that carry one of Qualcomm's patent-infringing chips, ducking the ban and depriving Qualcomm of a powerful ally in its legal fight. Neither the U.S. Trade Representative nor Broadcom would identify the second carrier to strike such a deal.

"We cannot comment on the other carrier at this time, but what is clear is that the market has responded with relevant companies finding ways to accommodate the ruling through agreements with Broadcom," said Broadcom attorney David Rosmann.

A spokesman for Sprint Nextel Corp., whose phones also run on Qualcomm chips, did not immediately respond to a phone message.

Schwab noted some industry players are working on alternative chip designs to avoid the ban. She said a Department of Homeland Security review found insufficient justification for overturning the ban despite concerns it would create problems for public safety agencies.

The decision, announced after markets closed, was widely anticipated by investors and analysts. Qualcomm shares rose $1.01, or 2.5 percent, to $41.78 in regular trading, then surrendered 35 cents after hours. Broadcom's shares climbed 48 cents, or 1.5 percent, to close at $33.44, then added 31 cents after hours.

Qualcomm, based in San Diego, is the world's second-largest chip supplier for mobile phones after Texas Instruments Inc. but earns much of its money from licensing fees on its patented technology. Broadcom, based in Irvine, is a newcomer to the cell phone business but has scored several legal victories against Qualcomm this year.

Publishers join case against YouTube 2 hours, 51 minutes ago

Publishers join case against YouTube 2 hours, 51 minutes ago



NEW YORK - A group of music publishing companies said Monday it is joining a copyright infringement lawsuit against Google Inc.'s video-sharing site YouTube.

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The National Music Publishers' Association said it was joining the lawsuit out of concern that many songwriters weren't receiving proper compensation when their music appeared on YouTube videos.

The lawsuit also includes as plaintiffs The Football Association Premier League and Viacom Inc., a media company that owns MTV, Paramount Pictures, Nickelodeon and Comedy Central.

The plaintiffs say YouTube is breaking the law by hosting video clips that they hold the copyrights to. However, YouTube says it's complying with the law by immediately taking down any clips found to be violating copyrights after receiving notification.

David Israelite, chief executive of the NMPA, said in a statement that the music publishers' group was "very concerned about YouTube's approach to copyright."

The lawsuits have been combined for trial purposes into one case being heard by U.S. District Judge Louis L. Stanton in New York.

Music publishing companies administer the copyrights of songwriters and composers and collect the royalties that are due to them.

A guide to the names on 'Fake Steve' By The Associated Press

A guide to the names on 'Fake Steve' By The Associated Press
Mon Aug 6, 4:51 PM ET



The "Fake Steve" blog won many fans in the technology world, serving up hilarious daily satire of what purported to be a "secret diary" of Steve Jobs, the CEO of Apple Inc.

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Trying to figure out the blogger's true identity became a favorite guessing game of the technorati, but that ended Monday when The New York Times outed Dan Lyons, an editor at Forbes magazines, as the wit behind Fake Steve.

The blog takes potshots at many major figures in the technology world, and sometimes invented nicknames for them. A guide to who's who on the Fake Steve blog:

Beastmaster: Microsoft Corp. Chairman Bill Gates

Uncle Fester: Microsoft CEO Steve Ballmer. Lyons says Ballmer looks like he was "separated at birth" from the character on the 1970s-era TV show "The Addams Family."

Squirrel Boy: Google Inc. CEO Eric Schmidt. Lyons figures Schmidt doesn't mind. "I'm sure he's laughing all the way to the bank."

My Little Pony: Jonathan Schwartz, CEO of Sun Microsystems Inc. A dig at Schwartz' pony tail, and apparently a name that insiders at Sun call him behind his back.

Bike Helmet Girl: Lyons spotted a picture online of a woman doing funky dance moves at a party while wearing a bike helmet, then posted a photo on the blog and invented a story line about Jobs having a crush on her.

Dr. Evil and Mr. Bigglesworth: Nick Denton and Owen Thomas, the owner and managing editor, respectively, of Valleywag, a Silicon Valley gossip blog that made many fruitless attempts to uncover Lyons' identity. After Thomas got hired there, someone sent Lyons a picture from an "Austin Powers" movie and suggested a resemblance with the movie's goofball villain and the white cat he holds in his lap. In a posting on Sunday, Fake Steve wrote of his outing: "My only regret is that we didn't get a chance to see Bigglesworth take a few more swings and misses."

Blogger Outed: 'Fake Steve' is Dan Lyons By SETH SUTEL, AP Business Writer

Blogger Outed: 'Fake Steve' is Dan Lyons By SETH SUTEL, AP Business Writer
Mon Aug 6, 5:00 PM ET



NEW YORK - At long last, someone has cracked one of the technology world's biggest mysteries — the identity of Fake Steve, a sharp-tongued blogger who had tech aficionados in stitches with a satiric diary purporting to be from Apple CEO Steve Jobs.

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Now for the really good part: Both the blogger and the guy who outed him are from staunch bastions of Old Media, Forbes magazine and The New York Times.

In a story published on Monday, Brad Stone of the Times outed Dan Lyons, a technology editor at Forbes, as the author of "The Secret Diary of Steve Jobs," a daily account of events in the tech industry as seen through a caricature of Jobs. The blog can be found at http://fakesteve.blogspot.com/.

"Damn, I am so busted, yo," wailed a headline on the blog's latest posting, accompanied by a mug shot of someone holding up a floppy-eared dog.

Reached by cell phone in Maine, where he had just begun a family vacation, Lyons said he has heard from several friends who found it ironic that someone from a "dead-tree" media outlet, and not a fellow blogger, had succeeded in solving the puzzle.

"They said the blogosphere is so nearsighted that they only know the world they inhabit," Lyons said, noting that several bloggers were trying to use high-tech tricks such as tracing the electronic signatures of e-mails to figure out who Fake Steve was.

Meanwhile the Times reporter did some shoe-leather reporting by contacting people in the publishing world to gather hints from a proposal for a book that Fake Steve is coming out with in the fall.

Lyons, who has written one novel already, said he found inspiration for another one while doing the blog, and was hoping to keep the identity of Fake Steve secret. However his bosses at Forbes had found out, and they were already planning to move the blog over to Forbes.com. Despite Monday's revelation, the blog will continue to be updated.

Rich Karlgaard, the publisher of Forbes, had openly speculated about the identity of Fake Steve as far back as a year ago, and said he didn't mind at all that he didn't find out that Fake Steve was in fact one of his own employees until this April.

In a posting on Forbes' site, Karlgaard said he had been asked by the Times reporter if he was angry that Lyons hadn't come forward earlier, while Karlgaard was still taking public guesses about his identity. (The publisher's last guess was John Hodgman, a comedian who plays "PC" in Apple's Macintosh TV commercials.)

Referring to Fake Steve as "FSJ," as Lyons calls himself on his own blog, Karlgaard wrote: "Angry? Dan had pulled off one of the great spoofs in journalism. I had a ringside seat to the show. Dan and I laughed for days."

Lyons, who is 46, said he stumbled into writing the Fake Steve blog 14 months ago after determining that he needed to figure out how to do a blog. Then he thought of the trend of CEOs supposedly writing personal blogs that were anything but personal.

After settling on Jobs because he was "so easy to caricature," Lyons started reading up on him, having never covered Apple as a news story. He said he found Jobs to be truly "a genius," but also "really dark."

An Apple Inc. spokesman declined to comment.

The release of Apple's much-touted iPhone came in for particular ribbing, with Fake Steve claiming in a headline that day: "29 June 2007: The day the world changed." A long posting on the phone started out "Apple faithful ..." and concluded "Namaste. Much love. Peace out. Dear Leader."

Many leading luminaries of the tech world came in for a pasting, starting with longtime Apple nemesis Bill Gates, the chairman of Microsoft, who is playfully referred to as "Beastmaster."

Lyons says he didn't intend the blog to sound mean, and had dialed back the sarcasm on occasion if readers posted comments suggesting that a particular jab had gone too far.

"If it veered into being mean and somebody complained, I'll apologize," Lyons said. "But I think most of it is not very blue and not very mean."

As the blog moves to Forbes.com, Lyons said his editors were "adamant" that it keep its edge, something that Lyons is perfectly fine with. "That's what makes it funny," Lyons said. "What if 'South Park' started being nice?"

Karlgaard, the Forbes publisher, said by phone that he doesn't expect to hear a lot of complaints about the blog even after it moves to Forbes.com.

"Dan is a huge talent, and Fake Steve Jobs attracted a following because Dan writes with exuberant energy and no inhibition. I expect it to continue," Karlgaard said. "I don't sense that people are deeply wounded by this."

Entombed microbes flourish again in lab By RANDOLPH E. SCHMID, AP Science Writer

Entombed microbes flourish again in lab By RANDOLPH E. SCHMID, AP Science Writer
Mon Aug 6, 5:04 PM ET



WASHINGTON - Microorganisms locked in Antarctic ice for 100,000 years and more came to life and resumed growing when given warmth and nutrients in a laboratory.

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Researchers led by Kay Bidle of Rutgers University tested five samples of ice ranging in age from 100,000 years to 8 million years.

"We didn't really know what to expect. We knew that microorganisms were really hardy," Bidle, an assistant professor of marine and coastal sciences, said in a telephone interview.

The findings are reported in Monday's online edition of Proceedings of the National Academy of Sciences.

The researchers tested samples of the oldest known ice on Earth and had success at growing bacteria from the younger samples.

Microorganisms from the older ice didn't do as well, growing only very slowly. Some of the oldest microorganisms were watched for as long as a year, he said, compared to the week or so it usually takes to culture bacteria.

Calling the ice cores "gene popsicles," the researchers found evidence of some the most common bacteria still around, including firmicutes, proteobacteria and actinobacteria.

These are microorganisms that have been around a long time, Bidle said, "not something Earth hasn't seen before."

Bidle's researchers found that the DNA in bacteria deteriorates sharply after about 1.1 million years.

He said that after 1.1 million years the size of the DNA gets cut in half. In the oldest ice it consisted of just 210 units strung together. Normally the DNA of the average bacterium has about 3 million units.

Studying these life forms helps in "understanding the geological and physiological limits of life on Earth under different conditions," he explained.

In addition, there is interest in looking for life on other planets and how long microorganisms might have remained viable under cold, icy conditions on places like Mars.

Finally, he added, most of life on Earth consists of microbes. "They live in every possible environment ... so learning about microbes and what they can withstand and what their limits are is important to understanding how the Earth works over long periods of time."

The research was supported by the Gordon and Betty Moore Foundation, the U.S. National Science Foundation and the Korea Antarctic Research Program.

___

On the Net:

Proceedings of the National Academy of Sciences: http://www.pnas.org

AHM files for bankruptcy By DAN SEYMOUR, AP Business Writer

AHM files for bankruptcy By DAN SEYMOUR, AP Business Writer
2 hours, 30 minutes ago



NEW YORK - American Home Mortgage Investment Corp. filed for bankruptcy protection on Monday and two other mortgage lenders said they were not accepting new applications, signs that the worst housing crunch in decades could be widening.

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American Home Mortgage, based in Melville, N.Y., and once the nation's 10th largest mortgage lender, said it fell victim to "extraordinary disruptions" that effectively cut off the funding it needed to make new loans. Falling home prices and a spike in payment defaults scared investors away from mortgage debt, including bonds and other securities backed by home loans.

Houston-based Aegis Mortgage Corp. said it would not accept any more applications and said it could not meet all of its existing funding obligations. Cleveland-based National City Corp. also stopped taking applications for new loans and lines of credit in its wholesale home equity unit.

"We are in a market now where value is a fleeting concept," JMP Securities analyst Steven C. DeLaney said of the vanishing appetite among investors for the bundles of mortgage debt that had been the funding lifeline for the industry. "The market today has just basically shut down."

As the market for mortgage debt suddenly shrinks, people trying to borrow for home purchases or refinance their existing homes are facing tougher terms and stricter standards — and are much more likely to be turned down than just a few months ago, when the industry was pushing loans even at buyers with bad credit histories.

American Home Mortgage filed for Chapter 11 bankruptcy protection in Wilmington, Del. Its 40 biggest creditors include virtually all the major names of Wall Street. At the top of the list are Deutsche Bank AG and JPMorgan Chase & Co.

Deutsche Bank had no comment. JPMorgan Chase declined to comment on its exposure.

In a statement, American Home said it lined up $50 million in debtor-in-possession financing from WL Ross & Co. LLC. WL Ross is led by billionaire Wilbur L. Ross Jr., who has rescued failed companies in the steel, coal and textile industries.

The company hired Stephen F. Cooper to be chief restructuring officer. Cooper was also chief restructuring officer for Enron Corp.

While bankrupt lenders carry ominous implications for the housing market and for consumers hoping to take out mortgages, they do not affect the status of mortgage loans already on the books.

A bankrupt lender simply means financial institutions will likely buy the company's loans as its assets are auctioned off; it does not imperil people's homes.

Likewise, Ganesh Rathnam, an analyst who tracks investment banks for Morningstar, said he does not expect Wall Street to sustain much damage from American Home, which has less than $20 billion in liabilities.

"The Wall Street banks will go and look for their next source of income, whatever that is," he said. "It is not going to bankrupt them."

American Home Mortgage joins more than 50 lenders in bankruptcy this year. It is bigger than most of the other lenders to go out of business so far, second only to New Century Financial Corp.

But unlike New Century and most other bankrupt lenders, American Home Mortgage was not a "subprime" lender. Subprime lenders cater to home buyers with spotty credit. Almost none of American Home Mortgage's $58.9 billion in home loans last year were to subprime borrowers.

Yet like other subprime lenders, American Home's decline was quick.

Last week, the company said many of its lenders wanted their money back and it was unable to deliver as much as $800 million in promised loans. It then laid off almost 90 percent of its 7,000 employees.

Houston-based Aegis Mortgage, whose owners include private-equity firm Cerberus Capital Management, said Monday it notified brokers who serve as customers that Aegis would not be able to fund loans currently in the pipeline.

Aegis Mortgage spokeswoman Pat Wente said the company's roughly 30 U.S. branches were open and its 1,300 workers on the job.

"We've just announced we're going to have to suspend lending until we get this figured out," she said. "We're in the process of reviewing all the alternatives we can."

National City said the decision to stop taking applications in its wholesale unit is one of a number of steps "taken in recent weeks to help ensure that originations are in line with existing and anticipated market conditions." National City Home Equity offers loans and lines of credit through brokers that can be used with the purchase of a home or the refinancing of one. National City is still accepting applications for such loans at its bank branches.

Separately, NovaStar Financial Inc. on Monday confirmed it temporarily halted home loans through brokers but said it was honoring existing commitments.

Friedman Billings Ramsey analyst Scott Valentin cut his price target on the company's stock to zero, saying suspending loans lays the groundwork for shutting down.

Also Monday, Luminent Mortgage Capital Inc. said it has been experiencing a significant increase in margin calls and a decrease in the amount of financing available from its lenders.

San Francisco-based Luminent said its was suspending the company's second-quarter dividend of 32 cents per share and was considering a "full range of strategic alternatives" to address its liquidity issues.

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AP Business Writers John Porretto in Houston, Joe Milicia in Cleveland, Matt Moore in Frankfurt and Stephen Bernard in New York contributed to this report.

Delphi reaches deal with 4 unions By DAVID N. GOODMAN, Associated Press Writer

Delphi reaches deal with 4 unions By DAVID N. GOODMAN, Associated Press Writer
Mon Aug 6, 4:56 PM ET



DETROIT - Delphi Corp. said Monday it tentatively agreed to contracts with four more unions, including one that recently warned a strike was possible if talks stalled.

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With the agreements, the auto parts maker continues to make progress on its emergence from bankruptcy protection. Delphi remains in talks with one more union, the United Steelworkers, about a deal.

"This series of tentative labor agreements demonstrates Delphi's continued commitment to achieving a consensual resolution with all parties in its Chapter 11 cases," John Sheehan, Delphi's chief restructuring officer, said in a statement.

"We believe these agreements, if ratified, provide additional traction towards our emergence."

Delphi and the International Union of Electronic Workers-Communications Workers of America reached a four-year contract about 10 p.m. Sunday, the union said in a news release.

The Communications Workers' industrial branch said its members will hold a ratification vote by mail. The union represents about 2,000 Delphi employees.

"We have provided significant and meaningful options for our members as they strive to survive this difficult period," said Jim Clark, president of IUE-CWA. "Our local leaders who make up the National Bargaining Committee made the best out of what was a deplorable situation."

Delphi also said Monday it reached pacts with the International Association of Machinists, the International Brotherhood of Electrical Workers and the International Union of Operating Engineers.

The other three unions and the United Steelworkers represent about 1,000 Delphi employees. Talks were to continue this week with the United Steelworkers, Delphi spokesman Lindsey Williams said Monday.

Delphi didn't release details, but said the deals include issues of work force transition and legacy pension items. The agreements are subject to union ratification and approval by bankruptcy court.

Troy-based Delphi is the former parts division of General Motors Corp., which spun it off in 1999. Delphi struggled on its own and entered bankruptcy protection in October 2005.

Delphi has said it needs to pay lower wages and get other concessions from its unions to compete against suppliers with cheaper labor costs.

Delphi recently secured wage cuts from the United Auto Workers, its largest union, representing about 16,000 Delphi employees. The Delphi-UAW deal slashes wages for longtime workers from $27 per hour to a range of $14 to $18.50 an hour.

Delphi leaders say they hope to emerge from bankruptcy by the end of the year.

On Thursday, a bankruptcy court agreed to let Appaloosa Management LP and other investors inject up to $2.55 billion into Delphi.

The agreement with the IUE-CWA includes "an array of choices ranging from retirement options to buyouts and buy downs that allow our members to make the best decision for themselves and their families," Clark said.

On July 20, the union said it planned to terminate its contracts, a first step toward a possible strike in October.

The IUE-CWA has workers at three plants that Delphi plans to keep — including Warren, Ohio, and Brookhaven and Clinton, Miss. — as well as at three the company plans to sell or close, including Kettering and Moraine, Ohio, and Gadsden, Ala.

A union official said Delphi has lined up a buyer for its Kettering plant, where about 200 full-time hourly workers and several hundred temporary workers produce suspension systems and parts.

IUE-CWA Automotive Conference Board Chairman Willie Thorpe said the work force would be smaller under the new owner. He declined to release additional details, saying the deal is still being finalized.

Williams said Delphi has not announced a buyer for the plant and that a sale would require approval by the bankruptcy court.

___

Associated Press Writer David Runk contributed to this report.

Ex-Home Depot boss to lead New Chrysler By DEE-ANN DURBIN, AP Auto Writer

Ex-Home Depot boss to lead New Chrysler By DEE-ANN DURBIN, AP Auto Writer
Mon Aug 6, 4:48 PM ET



AUBURN HILLS, Mich. - Chrysler got a taste of its new owner's swift and decisive style Monday as its chief executive was demoted and the former head of Home Depot was tapped to lead the automaker through a major restructuring.

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Bob Nardelli, who left The Home Depot Inc. in January after a shareholder rebellion over his outsized pay, was named chairman and chief executive of Chrysler LLC, replacing Tom LaSorda, who is taking the No. 2 slot. The changes came just three days after the private equity firm Cerberus Capital Management LP acquired a majority stake in Chrysler.

"The new Chrysler has the opportunity to prove that the private business model can thrive in this industry," Nardelli said. "We have an opportunity to really make a significant change in the auto industry."

LaSorda said Nardelli is a strong manager who has helped companies grow and he is happy to be working with him.

"He's always been a winner, every business," LaSorda said. "Leave the egos at the door. Let's turn around this company."

It marks the second time in less than a year that an auto-industry outsider has come to the rescue of one of Detroit's struggling automakers. Ford Motor Co. named former Boeing Co. executive Alan Mulally as its president and chief executive in September.

Aaron Bragman, an auto industry analyst with the consulting firm Global Insight, said that Detroit needs outside help as it tries to reverse its fortunes. Last month, foreign brands captured more than 50 percent of the U.S. market share for the first time ever.

"Being an outsider in the Detroit world is not really so much a difficulty as it was before as we have seen the Detroit model is in trouble," Bragman said. "This may be the time for fresh eyes."

But Bragman said he's concerned because Nardelli doesn't have product experience, and the most important part of Chrysler's restructuring will be making cars that consumers want to buy.

"Who has become the top product guy at Chrysler? Where is the product guru we had all expected to see?" Bragman said.

Nardelli said he's simply there to offer his expertise to Chrysler as it proceeds with its restructuring plan. Nardelli said he was impressed with the vision and specifics in that plan, which includes cuts of 13,000 hourly and salaried jobs in the U.S. and Canada by 2009.

"It's clear to me that Chrysler has an experienced and talented team," he said. "I'm confident that we'll continue the momentum of Chrysler's recovery.

Some wondered what effect Nardelli's hiring would have on ongoing contract talks with the United Auto Workers. Nardelli helped increase revenue and profits at Home Depot and raised the number of stores the company operates. But he resigned from the company after it came under intense criticism for his hefty pay and slumping stock price. Nardelli left Home Depot with a golden parachute worth $210 million.

Nardelli said Monday UAW President Ron Gettelfinger brought up his pay package during a recent two-hour meeting, but he added that the two established a good relationship. Nardelli said LaSorda will continue to have primary responsibility for the contract negotiations.

A message was left Monday with the UAW seeking comment.

Pete Hastings, an auto industry corporate bonds analyst with Morgan Keegan & Co., said Nardelli's aggressive leadership style may hurt the company as Chrysler and the UAW hammer out a new labor agreement. The old agreement expires Sept. 14.

"He would not have been my first choice if I had been making the decision," Hastings said. "Tact is important to get done what you need to do in transforming the company and working with the unions, and I'm not sure that's his strong suit."

Nardelli said Monday that his compensation at Chrysler would be based on the company's performance, but he wouldn't give any more details. A company official familiar with his agreement said Nardelli would make $1 a year with further compensation based on performance. The official spoke on condition anonymity because Nardelli's agreement isn't public.

Nardelli said he hopes his Home Depot pay package doesn't become an issue.

"The last thing that I would want to be as part of the new Chrysler is a distraction," Nardelli said.

Like other U.S. auto companies, Chrysler has been struggling to make a profit while sales were falling and pension and retiree health costs were rising. Chrysler made $1.8 billion in 2005 but lost $618 million in 2006 and $1.98 billion before interest and taxes in the first quarter of this year.

On Friday, DaimlerChrysler transferred an 80.1 percent stake in Chrysler to New York-based Cerberus, one of the world's largest private equity companies, in a $7.4 billion deal. The German automaker, which is to be renamed Daimler AG, retained a 19.9 percent interest in Chrysler.

Chrysler, which shot off fireworks Monday to celebrate its new status, also announced that it is reviving the company's Pentastar logo. First used in 1962, the five-pointed star is returning with a three-dimensional update. The symbol will be used on buildings, signs and corporate stationery but not on vehicles or in dealerships, LaSorda said.

Besides Nardelli and LaSorda, the 11-member Chrysler board now includes representatives from Cerberus and DaimlerChrysler as well as independent directors. Chrysler's chief operating officer, Eric Ridenour, decided to leave the automaker after 23 years, Chrysler said.

___

On the Net:

Chrysler LLC: http://www.chryslerllc.com

Oil, gas plunge on economic worries By JOHN WILEN, AP Business Writer

Oil, gas plunge on economic worries By JOHN WILEN, AP Business Writer
Mon Aug 6, 3:48 PM ET



NEW YORK - Oil and gasoline futures plunged Monday on concerns about the economy's health and as investors sold to lock in profits from last week's record-setting rally.

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September oil fell more than $3 a barrel, and gas futures slid more than 10 cents to settle below $2 a gallon. Both contracts extended declines that began Friday after the government issued weaker-than-expected employment numbers. That data added to the sentiment of a series of other government reports analysts say suggest the economy might be slowing.

"The weaker ... numbers are raising the prospect of softening U.S. commodity demand in general, and energy demand in particular," wrote MF Global UK Ltd. analyst Ed Meir in a research note.

But investors are also taking profits from the rally that sent oil prices to record levels last week, analysts said.

"It's all related to the (investment) funds dumping a portion of their long holdings," said Jim Ritterbusch, president of Ritterbusch & Associates in Galena, Ill.

Light, sweet crude for September delivery fell $3.42 to settle at $72.06 a barrel on the New York Mercantile Exchange. The contract has fallen more than $6 from the intraday price record of $78.77 it set last week.

September gasoline was off 10.31 cents to settle at $1.9259 on the Nymex.

Analysts were split, however, on whether the steep price declines of recent days portend the beginning of a sustained drop in energy prices.

"I don't think this marks the beginning of the end," said Ritterbusch, who expects oil prices to rise to $80 this fall. "It's just a deserved correction in a bull market."

Others disagree, arguing that oil prices are headed for a fall slide that could take prices down to the $60 range.

The selling wasn't limited to gasoline and oil. In other Nymex trading, September heating oil lost 9.47 cents to settle at $1.9393 a gallon. And in London, September Brent crude fell $3.58 to settle at $71.17 a barrel on the ICE Futures exchange.

But Nymex natural gas gained 11.8 cents to settle at $6.208 per 1,000 cubic feet on forecasts for hotter weather, and thus more demand for cooling, in the Northeast.

At the pump, meanwhile, gas prices also extended their declines, falling 2 cents over the weekend to a national average of $2.838 a gallon, according to AAA and the Oil Price Information Service. Retail prices, which typically lag the futures market, peaked at $3.227 a gallon in May. At that time, gas futures were rallying on concerns about the refining industry, which struggled all spring with maintenance issues and unplanned outages.

In recent weeks, refineries have boosted capacity and output, alleviating those concerns. Gas futures and retail prices have been falling for weeks.

Contributing to Monday's sell-off was data released Friday that showed speculative buying of oil contracts hit a record in the week ended July 31. Some investors worry speculation has driven prices to an unsustainable level, and have started to sell their positions, analysts said. Others, including many big investment funds, simply sell portions of their holdings to lock in profits when prices hit certain levels, Ritterbusch said.

Valero Energy Corp.'s report Monday of a weekend fire a Port Arthur, Texas, refinery did little to stop the slide.

"That's just another tip-off of a bearish situation, when the market fails to respond to bullish news," Ritterbusch said.

Valero later said there would be no effect on production.

Contributing to the day's bearish tone were the latest export numbers from the Organization of Petroleum Exporting Countries, which showed OPEC exports rose in July for the fifth consecutive month.

From here, some analysts expect a repeat of last year, when oil prices dropped nearly $20 between early August and early October.

"Prices across the spectrum are likely to fall further from current levels as we move into the second half of the year," wrote Jason Schenker, an economist at Wachovia Corp., in a research note.

Others disagree, noting that global demand remains strong.

"The scope for any extended period of weakness looks limited in our view," wrote Barclays Capital analyst Kevin Norrish in a research note.

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Associated Press Writers Pablo Gorondi in Budapest and Gillian Wong in Singapore contributed to this report.

Stocks rebound in volatile trading By TIM PARADIS, AP Business Writer

Stocks rebound in volatile trading By TIM PARADIS, AP Business Writer
Mon Aug 6, 6:17 PM ET



NEW YORK - Wall Street surged higher in a volatile session Monday, offsetting the losses it incurred Friday but showing more fractiousness than conviction in an advance that lifted the Dow Jones industrials 286 points, its biggest gain in nearly five years.

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Investors tried to balance their concerns about the availability of credit with hopes that Tuesday's Federal Reserve meeting will be a calming influence after two weeks of frenetic trading on Wall Street. In a day devoid of economic news and with few earnings reports, investors early in the session seemed to avoid making big bets, though stocks gained steam after midday and made their biggest advance in the final two hours.

Fed policy makers are widely expected to hold the nation's benchmark rate steady at 5.25 percent; as usual, the greater concern is with the Fed's economic assessment statement. This time, investors will be looking to see what the Fed says about credit.

The Dow's biggest single-session point gain since October 2002 and its largest percentage gain since June 2003 follows a number of choppy sessions in which investor sentiment has vacillated between fear about lending to occasional bursts of optimism. Eight of the last 10 sessions have seen swings greater than 100 points in the Dow. The erratic activity has followed the stock market's high seen July 19, when the Dow closed above 14,000 for the first time and the Standard & Poor's 500 index also had a record close.

"I really wouldn't read too much into it," said Charles Norton, principal and portfolio manager at GNI Capital Inc., referring to Monday's rally. "You'd like to see it be led by the market leaders, not the sort of stuff bouncing off the bottom that's been beaten up," he said referring to financial stocks and regional banks.

The Dow soared 286.87, or 2.18 percent, to 13,468.78. The blue chips closed near their highs after zigzagging throughout much of the session. On Friday, the Dow fell 281 points.

Broader stock indicators also rebounded. The S&P 500 index rose 34.61, or 2.42 percent, to 1,467.67. The Nasdaq composite index rose 36.08, or 1.44 percent, to 2,547.33.

The rally was not as widespread as the rise in the major indexes suggested, though. Advancing issues outnumbered decliners by about 6-to-5 on the New York Stock Exchange, where consolidated volume came to a very heavy 5.09 billion shares, compared with 4.54 billion shares traded Friday.

Norton noted that the session's volume had been about 20 percent to 25 percent ahead of that of Friday's in the early going but volume ended up only 8.5 percent ahead of Friday by the close. He noted that investors typically like to see volume accelerate through the day in a rising market, as such moves can suggest widespread confidence in the advance.

"I think a lot of it has to do with people sort of squaring up before the Fed on the short side," Norton said, referring to the market's move higher and investors who sell stocks "short," betting that they will fall. Such investors can be forced to buy stock to cover their positions if they believe the market is poised to move higher.

Falling oil also gave a boost to stocks. Light, sweet crude futures tumbled $3.42 to $72.06 a barrel on the New York Mercantile Exchange. Gold prices fell, while the dollar moved in a mixed range against other major currencies.

Stocks have endured a volatile couple of weeks as troubles in the global credit markets — rooted in the rise of subprime loan defaults in the U.S. — have unfolded. Some investors are concerned that bad subprime loans, those made to borrowers with poor credit, remain on the books of some financial companies and have yet to be disclosed.

Aaron Gurwitz, co-head of portfolio strategy at Lehman Brothers Investment Management, said that while he would be surprised if the Fed were to adjust short-term interest rates, the central bank could indicate it stands ready to provide liquidity should credit markets seize up. He noted, however, that the repricing of credit that's occurring in the markets isn't something the Fed would likely want to stand in the way of.

"I think it's a short-term problem," he said. "I think that the uncertainty in the credit markets, the worries about a liquidity crisis that has to be dealt with, is a risk to the financial markets — but I think it's a long way from being a risk to the macro economy or the ability of most companies to make money."

Bond prices fell after rising during Friday's stock market pullback. The yield on the benchmark 10-year Treasury note rose to 4.74 percent from 4.68 percent late Friday. Bond prices move opposite yields.

Some of the session's major corporate news related to subprime loans and credit concerns. Bear Stearns Cos. co-President and co-Chief Operating Officer Warren Spector resigned after the collapse of two hedge funds that invested in risky mortgage-backed securities. Spector was in charge of the investment bank's asset management business. Bear Stearns fell sharply on the news but then recovered after a Standard & Poor's managing director said the market overreacted when the agency lowered its long-term outlook on the financial company.

Bear Stearns rose $5.46, or 5 percent, to $113.81, after falling below $100 briefly.

Merrill Lynch & Co. rose $4.50, or 6.4 percent, to $74.55 after a UBS analyst upgraded the nation's largest brokerage. Analyst Glenn Schorr contends the problems in the subprime mortgage and credit businesses and the potential ripple effects are now baked into the share price, which had been down nearly 25 percent for the year.

Financial stocks that gained included, Dow component Citigroup Inc., which finished up $2.63, or 5.8 percent, at $48.35 after trading as low as $45.02 — below its 52-week low of $45.63. Meanwhile, SunTrust Banks Inc. rose $4.55, or 6 percent, to $80.

In other corporate news, Cooper Tire & Rubber Co. on Monday said it swung to a second-quarter profit after sales jumped 17 percent, driven by higher prices in North America and strong growth in Europe and Asia. The tire maker's results beat Wall Street's expectations. Cooper advanced $1.07, or 5.1 percent, to $22.25.

The Russell 2000 index of smaller companies rose 10.97, or 1.45 percent, to 766.39.

In trading abroad, London's FTSE 100 fell 0.57 percent, Germany's DAX index rose 0.12 percent and France's CAC-40 fell 1.16 percent.

The often volatile Shanghai Composite Index rose 1.5 percent to a record 4628.11. Japan's Nikkei stock average dropped 0.39 percent.

___

On the Net:

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

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

AFL-CIO: Unions will impact 2008 race By JESSE J. HOLLAND, AP Labor Writer

AFL-CIO: Unions will impact 2008 race By JESSE J. HOLLAND, AP Labor Writer
2 hours, 1 minute ago



CHICAGO - Union membership is down. The labor movement has split in two. Conservatives control the White House, the Supreme Court and, until last year, Congress.

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Yet AFL-CIO leaders say things are looking up as the nation's largest labor federation heads toward the 2008 presidential elections.

"We're stronger in many ways," said AFL-CIO president John Sweeney, in Chicago for the federation's executive council meeting and Tuesday forum with the Democratic presidential primary candidates.

Organized labor played a large role in Democrats taking over Congress in the midterm elections, Sweeney said, and is trying to hold on to that momentum going into 2008.

"What we see going on now leads us to believe that this will probably be the most ambitious mobilization in the history of the labor movement," Sweeney said in an interview with The Associated Press. "Workers are angry about how they're being treated, and they want to see a change."

Things have not gone well for unions since the last presidential election.

In 2004, 12.9 percent of the labor force were union members. In 2006, that number dropped to 12 percent, according to the Labor Department's Bureau of Labor Statistics. More than one-third of U.S. workers, about 35 percent, were union members in the mid-1950s.

In addition to the dropping membership numbers, the labor movement has now split in two. Seven unions consisting of 6 million members bolted the AFL-CIO in 2005 to form the group Change to Win. Those unions will meet in Chicago in September.

The AFL-CIO has 55 member unions and represents 10 million workers. They also have an affiliate, Working America, who represents 1.6 million non-unionized workers.

President Bush and Republicans in Congress have thwarted much of organized labor's initiatives, including a bill that would have made it easier to organize U.S. workers.

But organized labor is heartened by the fact that they helped push Democrats to take over the House and the Senate in the 2006 midterm elections. Unions spent more than $66 million in that election cycle — a record total — most of it going to Democratic candidates.

"It has given the members purpose, and they see what kind of power they can exert in the political system," said Gerald W. McEntee, president of the American Federation of State, County and Municipal Employees. "When you put it all together, the effort in 2008 will be larger than it was in 2004, larger than it was in 2006 and more effective than both."

The AFL-CIO hopes to show off its strength by packing Soldier Field, the home of the NFL's Chicago Bears, for an outdoors presidential forum on Tuesday. All the major Democratic presidential primary candidates will be there, and labor officials are busing in union families from all around for the event.

The weather forecast for Chicago Tuesday is for scattered thundershowers. Just in case, the AFL-CIO has ponchos for the crowd, and the candidates are set to speak on a covered stage.

"A couple of people have asked me already this morning what will happen if it rains," said Michael Carrigan, president of the Illinois AFL-CIO. "The answer is: The show goes on."

The AFL-CIO's executive council will meet Wednesday to decide whether to begin a primary endorsement process immediately or wait until later. The AFL-CIO requires a two-thirds vote for an endorsement, a threshold no candidate met during the 2004 Democratic presidential primary.

Sen. John Kerry, D-Mass., was endorsed after he became the party's nominee.

Unions are split on whether they should wait until after the primary to make endorsements.

The International Association of Firefighters — whose endorsement helped save Kerry's 2004 primary campaign — plans to endorse in September regardless of what the AFL-CIO does. "I made it clear to the political committee today," said Harold A. Schaitberger, IAFF president. "We're going to make a decision."

But the American Postal Workers Union will not endorse anyone in the primary, said William Burrus, the group's president.

"I'm a believer and my union is a believer that we've got to wrest control from the capitalists from the Republicans, from their friends in the White House as well the Congress," Burrus said. "It's unimportant who it is that does that. I don't want to play favorites in the primary."

At least one union plans to endorse in both the Republican and the Democratic primaries. The International Association of Machinists and Aerospace Workers will do so after a late August debate, a first in the union's 118-year history.

Democrats should not take their endorsement for granted in the final race, said Tom Buffenbarger, president of the machinists' group. IAM is one of the nation's largest trade unions, representing more than 720,000 active and retired members.

Thirty-five percent of IAM members are registered Republicans.

"We want to encourage our Republican members to get involved and active in their party and find the kind of candidate who looks out for working people, has a vision for working men and women, not just the oil barons and the Wall street tycoons," Buffenbarger said.

Sweeney noted that 20 percent of AFL-CIO members also are registered Republicans, and they invited GOP presidential candidates to participate in the forum but got no response. The machinists "have the right to do what their membership wants them to do," Sweeney said.

___

On the Net:

AFL-CIO: http://www.aflcio.org

Obama criticizes Clinton over lobbyists By MIKE GLOVER, Associated Press Writer

Obama criticizes Clinton over lobbyists By MIKE GLOVER, Associated Press Writer
1 hour, 55 minutes ago



LE MARS, Iowa - Democratic presidential hopeful Barack Obama criticized chief rival Hillary Rodham Clinton on Monday, contending that candidates who are comfortable with the role of lobbyists in this country have been in Washington too long.

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In an interview with The Associated Press and later at a town hall-style event, Obama said the matter would be a critical issue in his campaign for the party nomination.

Obama pointed to Saturday's bloggers forum in Chicago where he touted his promise not to take money from lobbyists. Clinton argued at the event that taking money from lobbyists was acceptable because they represented real people and real interests.

Obama declined to use Clinton's name, though he told the AP, "I profoundly disagree with her statements."

"If lobbyists for well-heeled interests in Washington are setting the agenda on the farm bill, in the energy bill, on health care legislation and if we can't overcome the power of those lobbyists then we're not going to get serious reform in any of those areas," he said. "That doesn't mean they don't have a seat at the table. We just don't want them buying every chair."

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

Obama said he accepts that lobbyists have a legitimate role in Washington, but he said they now hold too much power.

"When they've come to so dominate the debate that ordinary citizens' interests and viewpoints and concerns are drowned out then I think we've got a problem," Obama said. "This campaign is going to come down to whether you believe that it's enough just to get somebody other than George Bush in the White House to fix what ails Washington, or do you think we need to set a fundamentally new course."

The Clinton campaign released a memo from chief strategist Mark Penn in which he highlighted her lead in national polls.

"She is expanding her vote among anti-war voters, women, Democrats, the middle class and voters who believe that she has the strength and experience to make change happen," Penn wrote.

Mark Daley, a spokesman for the Clinton campaign in Iowa, called Obama's comments "disappointing" and noted the money he's taken from lobbyists in Illinois and elsewhere.

Speaking before about 200 people at a county fairgrounds in one of the most rural — and Republican — regions of the state, Obama said candidates who are comfortable with the role of lobbyists are out of touch.

"I think that if you don't think lobbyists have too much influence in Washington, then I believe you've probably been in Washington too long," said Obama.

Obama argued that without a change in the culture of Washington, the nation couldn't effectively address key issues such as health care reform.

During his town-hall meeting, Obama was also pressed on his recent suggestions that he might use military force to root out terrorists in Pakistan. He said reports of his speech have been oversimplified.

"They take a paragraph out of an eight-page speech and try to sensationalize it," he said. "When you've got a group that killed 3,000 Americans, we have an obligation to deal with that group."

Obama said most reports have overlooked his statement that he would work with Pakistani leaders and press them to act on their own, but reserve the right to act.

"That's not a pre-emptive strike against Pakistan, that's a pre-emptive strike against al-Qaida," he said.

Giuliani's daughter shifts on 2008 pick By LIBBY QUAID, Associated Press Writer

Giuliani's daughter shifts on 2008 pick By LIBBY QUAID, Associated Press Writer
2 hours, 11 minutes ago



WASHINGTON - The daughter of Republican presidential hopeful Rudy Giuliani signaled she was supporting Democrat Barack Obama, then backed off when faced with questions.

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On her Facebook profile, 17-year-old Caroline Giuliani listed herself as a member of Obama's Facebook group, "Barack Obama (One Million Strong for Barack)." She left the group Monday morning after the online magazine Slate sent an inquiry and later in the day, a spokeswoman said she did not intend to comment on the 2008 race.

"Before the presidential campaign got under way, Caroline added herself to a list on Facebook as an expression of interest in certain principles," said the spokeswoman, Joannie Danielides. "It was not intended as an indication of support in a presidential campaign, and she has removed it."

Her profile can be viewed by Facebook users who have access to New York City's Trinity School or Harvard University networks. Caroline, who is Giuliani's daughter with his second wife, Donna Hanover, recently graduated from Trinity and will attend Harvard in the fall.

Slate posted a screen shot of her profile, which uses a slightly different last name. She lists herself as having liberal political views.

Giuliani, campaigning in Iowa, declined to comment on his daughter's political preference.

"My daughter I love very much," he told reporters outside an Italian restaurant in Clear Lake. "I have great respect for her, and I'm really proud of her, and I don't comment on children, because I want to give them the maximum degree of privacy.

"The best thing to do, if you want to ask the press to leave the children alone, the best way to do it is not to comment on them one way or the other, except to say you're very proud of them, and you love them very much, which I do," he said.

The Obama campaign did not have any comment.

Giuliani, a leading Republican candidate, has asked for privacy to deal with strained relationships in his family. Son Andrew, 21, has said their relationship became distant after Giuliani's messy divorce from the children's mother and his marriage to third wife Judith Nathan.

"There's obviously a little problem that exists between me and his wife," Andrew Giuliani told The New York Times earlier this year.

In May, Giuliani attended his daughter's high school graduation but kept a low profile, sitting in a last row balcony seat with his wife and leaving without speaking to his daughter, the New York Daily News reported.

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Associated Press writer Nafeesa Syeed in Clear Lake, Iowa, contributed to this report.

Obama, Edwards criticize Clinton By MIKE GLOVER and LIZ SIDOTI, Associated Press Writers

Obama, Edwards criticize Clinton By MIKE GLOVER and LIZ SIDOTI, Associated Press Writers
2 hours, 29 minutes ago



LE MARS, Iowa - Barack Obama and John Edwards separately castigated Democratic front-runner Hillary Rodham Clinton for defending lobbyists and portrayed her as the consummate Washington insider with special interest ties.

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"If you don't think lobbyists have too much influence in Washington, then I believe you've probably been in Washington too long," Obama said Monday. Added Edwards in an Associated Press interview: "Democratic candidates, and for that matter all candidates, should just say we're not taking these peoples' money anymore because it's the way to take their power away from them, and it's the way to bring about the change that this country needs."

Among Republican hopefuls, John McCain promised to protect individual's property rights, Rudy Giuliani sidestepped a question about his daughter's apparent enthusiasm for Obama and Sam Brownback squared off with Mitt Romney over the sanctity of life.

Unencumbered now that Congress is on a monthlong break, presidential candidates from both parties descended on the leadoff contest state of Iowa, where they tested themes, rolled out proposals and maneuvered for support.

The sharpest elbows Monday came from Obama, the Illinois senator, and Edwards, the former North Carolina senator. They seized on Clinton's remarks at a weekend candidate forum in Chicago to argue she was not the candidate of change but rather a Washington creature who would maintain the status quo.

On Saturday, the New York senator drew boos and hisses from liberal bloggers when, unlike Edwards and Obama, she refused to forsake campaign donations from the special interest industry. Instead, she said: "A lot of those lobbyists, whether you like it or not, represent real Americans, they actually do."

Neither Edwards nor Obama accept money directly from federal lobbyists but both take contributions from people who work at firms with lobbying operations.

"I profoundly disagree with her statements," Obama said in an Associated Press interview here. "This campaign is going to come down to whether you believe that it's enough just to get somebody other than George Bush in the White House to fix what ails Washington, or do you think we need to set a fundamentally new course."

Unveiling his trade policy at a Cedar Rapids, Iowa, union hall, Edwards argued that President Clinton allowed corporate insiders to shape the 1993 North American Free Trade Agreement that has cost U.S. jobs. Swiping at the former president's wife, Edwards said: "It's time to have a president that always — always — puts the interests of the American people first."

In an AP interview, Edwards argued that Washington lobbyists "rig the system" of government and candidates can take away such influence by refusing money from them. Edwards added: "This is not specifically just about Senator Clinton or anybody else, it's about restoring the power of the government back to its people."

Responding to the criticism, Clinton's campaign circulated a memo arguing that opponents were threatened by polls showing her gaining ground. Said chief strategist Mark Penn: "She is the candidate of experience and change, a combination no other candidate can match."

Among Republicans, Brownback and Romney continued to tangle on abortion as they sought the backing of influential social conservatives days ahead of an Iowa test vote.

The Kansas senator derided Romney's opposition to expanded federal funds for embryonic stem-cell research as "a pro-choice position" in a radio interview and, later, posted a YouTube video assailing the former Massachusetts governor as "conveniently pro-life."

"This is the key moral issue of our day and we don't need people equivocating on it or rediscovering things," Brownback says in the video.

Romney told ABC's "Good Morning America:" "Sam Brownback is a sweet guy, but he's obviously in a pretty desperate situation at this point. I am pro-life."

By afternoon, during a stop in Florida, Romney had placed himself alongside President Reagan as a perfect conservative on a scale of 1 to 10, if Reagan were a 10. "Probably a 10 as well," Romney said in response to a question despite a history of shifting on various issues, including a complete switch on abortion.

In Clear Lake, Iowa, Giuliani refused to discuss the political preferences of his 17-year-old daughter, Caroline. Until Monday morning, her Facebook profile showed she belonged to Obama's Facebook group "Barack Obama (One Million Strong for Barack)." She left the group after the online magazine Slate inquired.

"My daughter I love very much," Giuliani told reporters before declining to comment.

A spokeswoman for Caroline Giuliani said she had added herself to the Facebook list as an expression of interest and not as an indication of support for a candidate.

McCain, for his part, courted the limited-government wing of the GOP in a Rotary Club speech in Cedar Rapids, Iowa. He criticized a 2005 Supreme Court decision giving local governments broad power to seize private property to generate tax revenue. And, he said that as president, he would "appoint strict constructionist judges" who "understand the security of private property" and, if needed, try to amend the Constitution to protect private property rights.

"Property rights protection means that the individual reaps the rewards from the sweat of his brow, not the government or those who control the government," the Arizona senator said.

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Sidoti reported from Washington. Associated Press Writers Amy Lorentzen in Cedar Rapids, Iowa; Nafeesa Syeed in Clear Lake, Iowa, and Brendan Farrington in Melbourne, Fla., contributed to this report.