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Irish prime minister attacks Vatican

Enda Kenny says Cloyne report on child sex abuse by priests highlights dysfunction and elitism in Rome Ireland’s prime minister has launched an unprecedented attack on the Vatican, accusing it of downplaying the rape and torture of Irish children by clerical sex abusers. Enda Kenny said in parliament that the Cloyne report, released on 13 July, had exposed the Vatican’s attempt to frustrate the inquiry into child sex abuse. During a debate on the fallout from the Cloyne findings, the taoiseach said the report had illuminated the dysfunction and elitism still dominant in the Vatican. Kenny told the Dáil on Wednesday that Rome seemed more interested in upholding the church’s power and reputation than confronting the abuse of Irish children by its priests and religious orders. The Vatican’s attitude to investigations in Cloyne, which covers County Cork, was the “polar opposite of the radicalism, the humility and the compassion that the church had been founded on”, he said. Kenny said the rape and torture of children had been downplayed or “managed” to uphold the institution’s power and reputation. The all-party motion being debated in the Dáil “deplores the Vatican’s intervention which contributed to the undermining of child protection frameworks and guidelines of the Irish state and the Irish bishops”. One of the most damning findings of the Cloyne report was that the diocese failed to report nine out of 15 complaints made against priests, which “very clearly should have been reported”. The report, coming after a string of inquiries into Catholic clerical sex abuse across Ireland, has set the Irish government on a collision course with the church. Earlier on Wednesday a Vatican spokesman, Fr Federico Lombardi, speaking in a personal capacity, said nothing in the advice given by the papal nuncio to Ireland in 1997 encouraged bishops to break Irish laws. The Vatican’s advice to Irish bishops on child protection policies could not be interpreted as an invitation to cover up abuse cases, he said. Ireland’s justice minister, Alan Shatter, described the Vatican spokesman’s argument as disingenuous. Some Irish parliamentarians have called on the Fine Gael-Labour coalition to expel the papal nuncio from Ireland in protest over the Vatican’s attitude to the allegations in the Cloyne diocese. Ireland Vatican Child protection Europe Catholicism Religion Christianity Henry McDonald guardian.co.uk

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BBC gives too much weight to fringe views on issues such as climate change

A review of the BBC’s science coverage has concluded that its drive for impartiality lends too much credence to maverick views on MMR, climate change and GM The BBC is to revamp its science coverage after an independent review highlighted weaknesses and concluded that journalists boosted the apparent controversy of scientific news stories such as climate change, GM crops and the MMR vaccine by giving too much weight to fringe scientific viewpoints. The wide-ranging review found the network’s science reporting was generally of high quality, and praised the BBC for its breadth, depth and accuracy, but urged the broadcaster to tackle several areas of concern. Commissioned last year to assess impartiality and accuracy in BBC science coverage across television, radio and the internet, the review said the network was at times so determined to be impartial that it put fringe views on a par with well-established fact: a strategy that made some scientific debates appear more controversial than they were. The criticism was particularly relevant to stories on issues such as global warming, GM and the MMR vaccine, where minority views were sometimes given equal weighting to broad scientific consensus, creating what the report describes as “false balance”. The review comprised an independent report by Professor Steve Jones, emeritus professor of genetics at University College London , and an in-depth analysis by researchers at Imperial College London of science coverage across the BBC in May, June and July of 2009 and 2010. In his report, Jones lamented the narrow range of sources that reporters used for stories, poor communication between journalists in different parts of the organisation, and a lack of knowledge of the breadth of science. “The most important aspect is a vote of confidence in what BBC science is doing. It is head and shoulders above other broadcasters. As always, though, there is a but,” Jones told reporters on Wednesday. Jones likened the BBC’s approach to oppositional debates to asking a mathematician and maverick biologist what two plus two equals. When the mathematician says four and the maverick says five, the public are left to conclude the answer is somewhere in between. The report will disappoint some climate change sceptics who hoped it would find the BBC at fault for promoting a green agenda. “There is a consensus in the scientific community that anthropogenic climate change exists,” Jones said. By failing to move the debate on, the BBC was missing other stories, he added. Alison Hastings of the BBC Trust said the corporation must avoid “bias by elimination” and include dissenting voices in debates over science issues. But she added that clearer identification of individuals’ expertise and agendas would help audiences judge their comments. In further criticisms, Jones called on the BBC to be more proactive in finding stories. Many came from the south-east of England and some 75% were based on press releases, he said. “Simply by the BBC feeding rather than hunting, it is missing large amounts of scientific information,” he said. Another concern was the lack of women who either covered or appeared in stories. The BBC Trust welcomed the review and announced a raft of changes, approved by the BBC executive, to address the concerns raised. Journalists will be offered training on impartiality, and a forum will be set up within the corporation to foster better links between science journalists working in different parts of the organisation. The BBC executive said it would also appoint a new science editor to raise the profile of science in BBC news and oversee the other planned initiatives. Sir Mark Walport, director of the Wellcome Trust, said the report “highlights the issue that, from time to time, a drive for ‘impartiality at any cost’ by the BBC can lead to a highly misleading presentation of science in situations where the evidence points overwhelmingly in one direction rather than another. It is encouraging that the BBC executive and BBC Trust accept this criticism and will work with programme makers to improve their understanding of this issue.” Sir Paul Nurse, president of the Royal Society , said: “The BBC has played a significant part in creating the current surge of interest in science. The way in which it covers science is generally of a very high quality. It is, however, important that the need to separate opinion from evidence in coverage of some topics has been recognised. It is important to have debate, but marginal opinion – prominently expressed but not well based on evidence – can mislead the audience. The BBC usually respects this but the challenge is to get it right all of the time.” Bob Ward, policy and communications director at the Grantham Research Institute on Climate Change and the Environment at the London School of Economics , said it was crucial for the BBC to “challenge inaccurate and misleading claims made by bloggers, campaigners and politicians who ‘reject and deny the findings of mainstream science for ideological reasons.’ “The BBC is required by law not to sacrifice accuracy for impartiality in the coverage of controversial scientific issues such as climate change. Yet it is well known that there are particular BBC presenters and editors who allow self-proclaimed climate change ‘sceptics’ to mislead the public with unsubstantiated and inaccurate statements,” he said. Climate change Genetics Agriculture Medical research BBC Climate change scepticism Climate change GM MMR Ian Sample guardian.co.uk

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Libyan rebels push towards Zlitan

Rebel forces in Misrata say they are making gains amid heavy fighting, while minefields hamper progress in battle for Brega Libyan rebel forces in Misrata, supported by Nato air strikes, launched an offensive towards the government-held town of Zlitan on Wednesday morning, with fighters saying they were making gains amid heavy fighting. “We are now one and a half kilometres from Zlitan,” said a rebel fighter, Mohammed Ashanobah, of the Shaheed (Martyr) Brigade. “The revolutionaries attacked at eight this morning.” In eastern Libya, rebels continue to try to capture Brega, a key government-held town that is home to an oil refinery. They said they were being hampered in their efforts by extensive minefields. Nato said it destroyed six government artillery pieces around Misrata on Monday and planes hit a further 12 targets on Tuesday, marking a sharp escalation in alliance air strikes around the besieged city. Hikma hospital in Misrata reported seven fighters killed and 14 wounded by midday. Tripoli issued no casualty figures. Among the wounded were two government soldiers brought to the hospital for treatment by the man who shot them. Hiden Hassan, 37, another Shaheed Brigade fighter, said the two soldiers had driven towards them as they advanced. “They came in a Toyota and they were shooting at us,” he said. “We fired back. The Toyota stopped and they jumped out, still firing their weapons. So I shot at them, I hit them both in the legs.” He said he called on his comrades to drag the wounded men behind the frontline, and then accompanied them in a rebel pickup truck to the hospital. “They are Muslims, I am Muslim, they are Libyans, I am Libyan,” he said. “It was my duty to help.” Rebel units have failed to break the six-week deadlock around the city, and the latest offensive is important politically and militarily. Together with the Brega offensive, the rebel National Transitional Council in Benghazi hope to demonstrate to coalition forces that they can win the war and avert talk of a compromise political solution that may divide the country. Libya Middle East Chris Stephen guardian.co.uk

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Bill O’Reilly tries to reel in the wingnuts, admits GOP losing debt-ceiling PR campaign while bashing Michele Bachmann

Click here to view this media Lately Bill O’Reilly has been trying to convince his Tea Party base that Michele Bachmann is too extreme and dangerous as a GOP presidential candidate and that Congress must raise the debt ceiling. If you missed his interview with Michele Bachmann from last week, check out the above video. It would seem that the grand Wizards of the GOP are using BillO to now try and rein in the Tea Party hardliners they’ve created. Last night he revealed that on his own website his viewers voted against raising the debt ceiling by a 60-40 split. No matter how hard he tries, they ain’t buying his sales pitch for sanity. Do you believe the economy will be harmed if a debt deal is not reached? He quickly announced the results of his poll as an afterthought. Bill again made the case that the debt ceiling must be raised. He’s been very mindful to include his usual 1930s view opposed to government spending and sprinkled in that Obama wants to take all their money and give it to the poor , all so he wouldn’t lose too much favor with his base. On paper, the debt thing is boring, and many Americans are not paying attention. But the controversy will define the future of the USA. On one side, President Obama and the Democratic Party want America to become an entitlement state that compels social justice, financially supporting Americans who can’t or won’t support themselves. We’re all lazy welfare queens who want nothing more than to live off unemployment and raise family. In Bill’s eyes working in Texas in below-minimum-wage jobs like those Rick Perry is creating is such a beautiful alternative. The hell with real job creation. The debt ceiling vote was always a formality vote until Obama took office. We all pay into Social Security and Medicare, so it’s not a handout from rich people, but the word entitlement conjures up that illusion. That’s why I try to stay away from it and use the term ‘social safety nets.’ And Bill is very shrill about the reality that President Obama is proving his bully pulpit is still strong, since he’s turned all the earlier polling on the debt ceiling debate around completely to his side. Remember when all the polling looked like the latest one from Pew? By a 53% to 30% margin, most Republicans say that it will not be a major problem if the debt ceiling is not raised by Aug. 2 Now poll after poll is coming out much like the latest Gallup which has flipped that dynamic around. I’ve been writing that I had wished Obama’s approach from the the beginning of his tenure would be to explain why Keynesian policies are needed at this time of a massive financial meltdown rather than the “tightening our belts” approach which is dominating the debate now. Back to O’Reilly; He’s agreeing that the R’s are losing the PR wars, but cleverly pivots away from that into a man-crush on Marco Rubio. A new CBS poll says that Democrats are winning the PR war. When asked how the debt negotiations are being handled, 43 percent approve of the way President Obama is going about it; 31 percent say the Democrats in Congress are doing OK; and just 21 percent believe the Republicans have the correct position. That either means that the GOP is not getting its message out or the vast majority of Americans want a Western European-style entitlement state. “Talking Points” does not believe that most Americans want that, so the message seems to be the problem. Enter Florida Republican Sen. Marco Rubio, who absolutely destroyed CBS newsman Bob Schieffer on Sunday. Rubio didn’t destroy Bob Scheiffer, he just didn’t answer his questions and scowled his responses, which to BillO and Bernie Goldberg are not questions journalists should be asking anyway. Here’s the transcript. See, it’s not allowed for any journalist or Villager to bring up the name George Bush since he put this country into the hole we now face, because that hurts the GOP. Alas, it must be an Obama planted question. BOB SCHIEFFER: Well, aren’t you going to have to concede, though, Senator, that maybe the previous administration might have had a little something to do with– SENATOR MARCO RUBIO (overlapping): Sure. But– BOB SCHIEFFER: –the bad economy that the President inherited when he came into office. I mean, and– and the other part is, when you say– SENATOR MARCO RUBIO (overlapping): So when does it start getting better, Bob? We’ve discussed Obama’s policies ad nauseum here, but Rubio doesn’t have a plan himself. Sen. Rubio believes that if unemployment drops dramatically, government revenues will rise because more people will be paying taxes. He went on to say that he does believe in closing some tax loopholes that corporations and wealthy people use. Now, this is not a partisan analysis here. This is the truth. Sen. Rubio put forth his party’s position clearly and efficiently. If the Republicans want to win this vital debate, they need to follow Rubio’s lead. And that’s “The Memo.” Cutting the deficit is not a job creator and Rubio’s position of closing loopholes is not the GOP’s position at all because they consider that a tax increase. Rubio, the King of the Tea, is actually in opposition to their sacred cows. O’Reilly is quite crafty how he presents his views. He carefully trashed Michele Bachmann as often as he can, he attacks government spending as much as he can and he’s for raising the debt ceiling. At the same time he’s trying to turn Marco Rubio into the next Chris Christie.

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Undercover police officer unlawfully spied on climate activists, judges rule

Mark Kennedy acted as agent provocateur, says appeal court judgment quashing Ratcliffe-on-Soar conspiracy convictions Three senior judges have ruled that the undercover police officer Mark Kennedy unlawfully spied on protesters and arguably acted as an “agent provocateur”. In a damning ruling explaining why they quashed the convictions of 20 climate change activists, the court of appeal judges said they shared the “great deal of justifiable public disquiet” about Kennedy’s infiltration. The judges, who included the lord chief justice, said there had been a miscarriage of justice as a result of prosecutors not disclosing to the defendants vital evidence about the undercover officer. The activists discovered their convictions for conspiracy to break into Ratcliffe-on-Soar power station had been quashed on Tuesday. On Wednesday, giving their reasons for overturning the convictions, the judges made stinging criticisms about Kennedy’s undercover operation, which they said was part of long-term police infiltration of extreme leftwing groups. The judges said Kennedy “was involved in activities which went much further than the authorisation he was given, and appeared to show him as an enthusiastic supporter of the proposed occupation of the power station and, arguably, an agent provocateur”. The suggestion that an undercover police officer may have incited criminal actions is likely to be damaging to Sir Hugh Orde, who has been tipped as a replacement for the outgoing Met commissioner, Sir Paul Stephenson. Orde runs the Association of Chief Police Officers, which until recently ran the network of undercover officers sent to spy on political groups. The director of public prosecutions, Keir Starmer QC, will also be under pressure. His officials are under investigation for failing to disclose evidence about Kennedy’s operation to defence lawyers in the Ratcliffe case. The judgment said: “Something went seriously wrong with the trial. The prosecution’s duties in relation to disclosure were not fulfilled. The result was that the appellants were convicted following a trial in which elementary principles which underpin the fairness of our trial procedures were ignored. “The jury were ignorant of evidence, helpful to the defence, which was in the possession of the prosecution but which was never revealed. As a result justice miscarried.” The inquiry into allegations that the Crown Prosecution Service did not disclose evidence in the case is being led by Sir Christopher Rose, a former appeal court judge. Mark Kennedy Police Protest Crime Court of appeal Rob Evans Paul Lewis guardian.co.uk

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Dick Morris Pretends Republicans Can Allow Us to Partially Default Without Wrecking the Economy

Click here to view this media Sean Hannity had on former Clinton adviser and toe-sucker Dick Morris to discuss this debt ceiling kabuki theater and Morris was reckless enough to go on the air and pretend that some partial default would not damage the United States’ economy, or the rest of the world’s for that matter. Morris and Hannity were both irresponsible enough to claim that the warnings on not raising the debt limit from Obama administration is just a “scare tactic” and that we could be allowed to go past the deadline given by Sec. Tim Geithner and somehow figure out which bills to pay or not pay and that the bond markets would not have reacted well before then. I thought I’d seen it all with the run-up to the illegal invasion of Iraq and what our corporate media was willing to lie to us about. Sadly, every day they continue to prove me wrong with segments like this one.

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‘Hotlips’ fungus wins species naming competition

Judges said 12-year-old Rachael Blackman’s common name for the Octospora humosa perfectly captured the appearance of this lurid orange, moss-dwelling fungus • Full list of winners here A 12-year-old girl has beaten more than 5,000 entrants to win a competition to invent the best new moniker for 10 endangered and overlooked species lacking a common name. A lurid orange fungus, previously only known by its rather forgettable scientific nomenclature, Octospora humosa , was named “hotlips” by Rachael Blackman from Swindon, perfectly capturing the appearance of the moss-dwelling member of a group of fungi called discomycetes, or “discos”. “They looked a bit like lips and I thought the name suited it really well because of the bright orange colour,” said Rachael. “It’s exciting to know it will always be called hotlips.” The judges for the competition , which is run by Natural England and the Guardian, said they loved the notion of a “hotlips disco”. “It’s very simple, it’s very apt and it’s the kind of thing that people will remember, which cuts to the heart of the competition,” said Pete Brotherton, head of biodiversity at Natural England and one of a judging panel including Guardian columnist George Monbiot and Liz Holden of the British Mycologists Society. Brotherton said he hoped the popular competition, now in its second year, would draw people into the natural world and get them looking for these unheralded species, which include the largest sea squirt in Britain , a lichen that thinks it is a mushroom and a sea slug that recycles stings . “These are species that now have names. Some of them are declining and may one day in the future be saved because of that name,” added Brotherton. “Something called Nymphon gracile is challenging but if people are told the gangly lancer is on the brink of extinction this could tug the heart strings. These names could potentially make the difference between life and death for these species in the future.” Among nine other winners, who will receive a commemorative certificate from Natural England, were Diane Williamson who came up with Ascot hat, a pink-tinted mushroom that would not look out of place as race-going headgear and was first recorded near Ascot, and user greenmeeny, who suggested the sea squirt should be called Neptune’s heart. The sea squirt, which grows up to 12cm long and is large enough to have small anemones growing inside its leathery, milk-white “tunic”, must be Roman on account of its tunic, explained greenmeeny on the Guardian site . “It resembles a heart in that blood is pumped through it, and must belong to the Roman sea god Neptune because its circulation flows and ebbs back and forth like the tide.” The judges said: “We did wonder if it mattered that the species is a milky white instead of red, but we decided the heart of a sea god might be any colour.” Other species honoured with a common name for the first time included Coryphella browni , a striking sea slug with bright red tentacle-like cerata which was called scarlet lady and Chrysotoxum elegans , a medium-sized hoverfly found in the south-west England and Wales which was given the memorable name zipper-back, inspired by the stripy, zip-like markings across its abdomen. When deciding upon the overall winner, the judges had no idea that hotlips was invented by a 12-year-old. But Brotherton said it was very appropriate that Rachael had won this year’s competition. “They [younger people] look at things with a creativity and wonder that adults have sometimes lost touch with,” he said. “She’s helping to grow the next generation of naturalists and maybe she’ll be one of them.” Despite a passion for the ballet which has seen her name one of her goldfish Darcy, Rachael confirmed she would like to work as a zoologist in the future. • Full list of winners here Wildlife Conservation Biodiversity Marine life Insects Animals Taxonomy Biology Zoology Patrick Barkham guardian.co.uk

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Pension savers switched to new products to generate commission

Financial advisers get up-front fee – even where transfers or new pensions are inappropriate – Consumer Focus finds Consumers are being “churned” into different pension products, often with higher charges or risks, to generate commission for their financial advisers, according to Consumer Focus. The consumer champion says much of this churn is not appropriate and could leave consumers worse off in retirement. The report said that in every case where a pension was transferred or a new pension taken out the adviser received an up-front payment. In the cases it looked at where the fees and value of the pension pots were outlined, the average value transferred was £33,400 and the average fee £1,552 – the equivalent of 4.6% of the value of the fund. Consumer Focus is urging the Financial Services Authority and pensions minister Steve Webb to act to improve the personal pensions market and protect consumers from making a costly mistake with their retirement savings. In its report, Consumer Focus also criticised the trend for products to pay ongoing fees, or trail commission, to advisers, even if they had not reviewed a customer’s investments. The report found that pension companies paid between £200m and £800m in commission a year, of which an estimated 25% was trail commission. Deducting this from investments resulted in the saver ending up with a smaller pension pot. The report also found that disclosure of costs and charges was complex and opaque, making it virtually impossible for consumers to shop around or know what represented good value for money. Christine Farnish, chair of Consumer Focus, said the investigation showed “that practice in the individual personal pensions market still leaves much to be desired”. She added: “The complexity of costs and charges, despite years of work by regulators on disclosure, make it all too easy for savings that should be going into a pension pot to be siphoned off in costs and charges. This complexity makes it impossible for consumers to judge price, and shop around for a good deal as they would in other markets.” Farnish called on the FSA to “get a grip on this market” and asked the government to review its policy on transfers into the new National Employment Savings Trust (Nest) scheme. The scheme, which will to be introduced next year and into which workers will be automatically enrolled when they start a new job, will not allow transfers in. However, Consumer Focus said this needed to be rethought. “Allowing basic-rate taxpayers with small pots to transfer into Nest would help around 2 million modest earners to build up bigger retirement savings, and prevent unfairness from developing between new savers and people who bought private pensions before Nest was available,” it said. Ros Altmann, director general of Saga, believes transfers have been blocked as a sop to the private pensions industry: “If Nest is allowed to accept transfers, there will be more of an incentive for private firms to improve the way they behave, but so far the government has bowed to industry pressure and stopped transfers into Nest, for fear that too many private companies will lose this lucrative business.” However Tom McPhail, head of pensions research at advisers Hargreaves Lansdown, has taken issue with some of the group’s recommendations. “Not all the recommendations in this report would improve investors’ chances of achieving a decent pension. Most of the necessary reforms are already in place: they should be allowed to work through the system before any further tinkering is contemplated.” McPhail said that while Consumer Focus was right to say trail commission should not be paid where there was no ongoing service, scrapping it entirely was not the answer. “Trail commission on pension contracts is there for a purpose, it is intended to reward an intermediary for servicing an investor’s retirement saving arrangement,” he said. “Scrapping trail commission altogether is not the answer because consumers still need ongoing support in planning and managing their retirement savings.” Pensions Retirement planning Financial advisers Family finances Retirement age Work & careers Hilary Osborne guardian.co.uk

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Taliban mobile phones and website hacked

US intelligence blamed for issuing messages falsely reporting death of movement’s leader spiritual Mullah Mohammad Omar Two Taliban spokesmen said their mobile phones, emails and a website had been hacked into and messages issued on Wednesday falsely reporting the death of the movement’s supreme leader, Mullah Mohammad Omar. The one-eyed, reclusive leader is one of the most wanted men in the world, and is believed to be living in Pakistan, probably in the city of Quetta. Pakistan and the Taliban movement both deny this and say he is in Afghanistan. “This is the work of American intelligence, and we will take revenge on the telephone network providers,” said spokesman Zabihullah Mujahid, when contacted by Reuters to confirm the veracity of one text message. The messages came from phone numbers used in the past by Mujahid and a second spokesman Mohammad Qari Yousuf and said “spiritual Leader Mullah Mohammad Omar Mujahid has died” and “May Allah bless his soul”. Yousuf said the hacking was an attempt at psychological warfare by Nato-led forces. “The enemies have sophisticated technology so they can easily manipulate our website and our phone numbers. The enemies are spreading rumours because they are facing a decisive defeat and their morale is weakened,” he said . The death of Omar was reported in May, by media including Afghanistan’s private TV station TOLO. That report was dismissed by security officials in Pakistan and diplomats, US military commanders and government officials in Afghanistan. With a $10m (£6m) US bounty on his head, Omar fled with the rest of the Afghan Taliban leadership to Quetta after their government was toppled in late 2001. They formed the “Quetta shura”, or leadership council. Taliban Afghanistan Pakistan US military United States guardian.co.uk

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US debt ceiling: Gang of Six inject hope into talks

Group of influential senators make a proposal that might win the support of both President Obama and the Republicans A last-ditch plan to resolve the deadlock over America’s debt ceiling has raised hopes that the world’s biggest economy could avoid a potentially catastrophic default, as Europe remains bogged down in its own financial crisis. Financial markets rallied on Wednesday after a group of senators dubbed the “Gang of Six” unveiled a proposal that might win the support of both President Obama and the Republican opposition. Asian and European stock markets posted gains, the oil price rose, gold lost ground, and the dollar fell against the euro – all signs that investors were less fearful about the future. The Gang of Six’s plan attempts to stake out the middle ground between the two opposing sides. It includes deficit cuts of almost $4 trillion (£2.48tn) over the decade, including reductions in spending on health programmes – but may appease Democrat concerns by guaranteeing some essential services. It also calls for $1tn of increased tax revenue, but balances this with income tax rate cuts that could find favour with Republicans. Obama called the proposal a “very significant step”, and urged the three Democrats and three Republican senators to develop it. “My hope … is that they tomorrow are prepared to start talking turkey and getting down to the hard business of crafting a plan,” Obama told reporters on Tuesday. America has less than two weeks to agree a plan to raise its debt ceiling from the current maximum level of $14.3tn, which was reached in May . The US Treasury predicts that the country will run out of resources to pay its bills on 2 August, but some experts believe a deal must be reached by this Friday to allow time for legislation to be written, debated and approved. City traders were also encouraged by signs of progress in the US debt ceiling talks, but warned that investors remained wary. “The consensus has always been that political posturing would see this go to the wire before an acceptable resolution was found, but it has presented an uncomfortable scenario to holders of treasuries and arguably won’t stand to do the US any favours in the longer term,” said Ben Potter, market strategist at IG Markets. “That aside, the Dow added 202 points yesterday and gold is in retreat, two clear signs that some confidence is seeping back in to equity markets now,” Potter added. In London, the FTSE index rose by 36 points in early trading to 5826. The price of a barrel of US crude gained $1 to $98.47, while gold remained below the $1,600 mark reached on Monday. Europe’s leaders continue to struggle to agree a way forward ahead of Thursday’s crunch meeting in Brussels. Angela Merkel, the German chancellor, will meet French president Nicolas Sarkozy in Berlin on Wednesday to prepare for the meeting of eurozone heads of state and government. On Tuesday night Merkel spoke with Obama by telephone, both agreeing that it was vital to find a way forward. However, it is still not clear how a second bailout of Greece will be funded. Merkel’s warning that the situation will not be resolved with a single “spectacular event” alarmed analysts, who fear that further indecision could trigger another stage of the crisis. Spain and Italy remained under pressure in the international markets. The yields, or interest rates, on their 10-year bonds were trading at 6.06% and 5.69% respectively, slightly lower overnight but still indicating that traders view their bonds as risky . Economics US economy Republicans United States US politics Obama administration Graeme Wearden guardian.co.uk

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