NPR 2008-08-13

Georgia's president now says he agrees with the European Union plan that would call for a ceasefire with Russia. The plan brokered 1 by France calls for both Russian and Georgian troops to return to their original positions. Speaking to reporters after talks with French President Nicolas Sarkozy, Georgia's leader Mikheil Saakashvili said while a few sticking points remain, he agrees with the basic document. "This is a political document, but we mean it, if general principles are there. We need legal details, we need Security Council resolution, we need also, we need more presence on the ground of international observers, and the whole internationalization of the process. " The Kremlin for its part also agreed to the ceasefire, saying the aggressor has been punished. Moscow launched a devastating 2 assault on the former Soviet 3 republic after it moved into South Ossetia last week. Hundreds, perhaps thousands are believed to have died in five days of fighting.

The oil pipeline 4 that runs through the center of Georgia has been shut. Larry Miller 5 has more from London.

BP says its pipeline which carries 90, 000 barrels a day of Caspian Sea oil has not suffered any damage, but that until the fighting between Georgia and Russia stops, there are no plans to reopen it. BP describes the closure as a precautionary measure, and says it will not affect production. According to a spokesman, there are sufficient storage facilities, and some of the oil can be transported by trucks and trains. Another oil pipeline, the world's second largest that runs through southern Georgia into Turkey, were shut prior to the fighting after an explosion on the Turkish section. BP says the temporary loss of a pipeline should not affect the price of oil. However the International Energy Agency warns an extended conflict poses a threat to key oil and gas supplies. For NPR News, I'm Larry Miller in London.

Federal budget deficit 6 has ballooned to almost triple what it was last year. The Treasury 7 Department says in July the deficit was more than 102 billion dollars. NPR's Yuki Noguchi reports.

Government spending dipped far more into the red this year. The deficit grew as the government spent money on economic stimulus 8 checks and 15 billion dollars to cover receipts at failed financial institutions. The Treasury Department's report also said that for the 10 months of this fiscal 9 year, the budget deficit stands at more than 371 billion dollars, or more than twice what it was for the full year last year. Meanwhile the Commerce Department said the trade deficit narrowed in June. A boom in exports narrowed the trade gap about 4%. That's the biggest gain in exports in more than four years. Yuki Noguchi, NPR News Washington.

A Japanese bank is offering three billion dollars to buy the remaining 35% of California's UnionBanCal Corp as it looks for growth. San Francisco-based UnionBanCal said it's evaluating the offer from Mitsubishi UFJ Financial Group.

On Wall Street, the Dow fell 139 points.

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US men's gymnastics team has won a bronze medal, despite losing two team members ahead of the Olympics. Jessica Gallaher has details from Beijing.

Many speculated whether the US would medal at all. This after Olympic veterans and twin brothers Paul and Morgan Hamm withdrew from the team due to injuries before the Games even began. Despite the lack of faith from some, US coach Kevin Mazeika says he was confident they would win. When the final scores were presented, US gymnast Johnason Horton was a little more blunt. He screamed "Nobody believed in us. Nobody believed in us. " Meanwhile China took home the gold, finishing first in five of the six apparatuses 10, leaving the silver to the Japanese. For NPR News, I'm Jessica Gallaher in Beijing.

After months of higher food prices brought on by record prices for corn and soybeans, some relief may be coming for consumers. There is word from the government farmers this year are on track to produce the second biggest corn crop in history and the fourth largest soybean crop. Ephraim Leibthe is an Agriculture Department economist 11. He says the increase in crop level should start to show up at the supermarket, bringing down prices for some things in the months ahead. "I think that we are still gonna have higher meat prices in the near term, six to twelve months, because, as I said, feed prices are still a lot higher than they were in the past and it takes a while for the industry to react. " Still economists 12 say don't expect a drop in prices to happen overnight. They say prices for many crops are double what they were a year ago.

Crude oil futures 13 ended the session lower. The near-month contract for benchmark crude fell $ 1. 44 a barrel to end the session at just over 113 dollars a barrel on the New York Mercantile Exchange.