NPR 2009-01-06

President-elect Barack Obama says the US economy is "bad and getting worse". The President-elect made his remarks today during a visit to Capitol Hill for a meeting with House and Senate leaders to talk about an economic stimulus 1 plan. For a meeting today with Senate Majority Leader Harry 2 Reid, Mr. Obama said in order to break the momentum 3 of the recession, it's important to act now. He has called for a bipartisan cooperation on an approval over the economic stimulus package that is expected to include around 300 billion dollars in middle class tax cuts.

For the first time, a woman has been named to be the government's top advocate in the Supreme 4 Court. President-elect Obama today named Harvard Law School Dean Elena Kagan to be Solicitor 5 General of the US. NPR's Nina Totenberg reports.

Kagan is unlike recent Solicitor General in that she is not an experienced Supreme Court advocate, rather she fits the model of an earlier era - when highly regarded scholars fill the post, men like Robert Bork and Archibald Cox. As dean of Harvard Law School, Kagan has won widespread praise for bringing consensus 6 to a warring faculty 7 and for stellar fundraising. Prior to that, she taught at the University of Chicago at the same time Barack Obama did. During the Clinton administration, she served as associate White House counsel and deputy assistant to the president for domestic policy. In 1999, President Clinton nominated her for a judgeship on the US Court of Appeals here in Washington. But for a year and a half, Republicans refused to act on that nomination 8. Nina Totenberg, NPR News, Washington.

President-elect Obama has picked former White House Chief of Staff Leon Panetta to head the Central Intelligence Agency; the choice of Panetta to head the CIA is among the last major nominations 9 for the incoming administration which takes over the White House January 20th. Panetta is a somewhat unexpected pick given a lack of intelligence background. Democratic officials say Mr. Obama has chosen retired 10 Admiral Dennis Blair to be his new national intelligence director.

Economic outlook continues to weaken: construction spending is down and US automakers're reporting a big decline in sales. NPR's Chris Arnold reports.

Ford 11, GM and Toyota all saw sales drop by more than 30% in December compared to the year before. Chrysler sales plunged 12 by more than 50%. Meanwhile, construction spending edged lower as the trouble in the housing market keeps home building at very low levels. Layoffs 13 have been rising as well. President-elect Barack Obama: "We've got an extraordinary economic challenge ahead of us. We are expecting a sobering job report at the end of the week. " Mr. Obama is in Washington meeting with his economic team and lawmakers. They are working on an economic stimulus package. As expected, it will include upwards 14 of 700 billion dollars worth of tax cuts and spending on things like infrastructure 15. The huge tax cuts for both individuals and businesses could help the plan quickly win bipartisan support. Chris Arnold, NPR News.

On Wall Street, the Dow Jones Industrial Average fell 81 points today. The NASDAQ lost four points. The S&P 500 also dropped four points today.

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US is joining a host of other nations that are calling for a ceasefire in the Middle East. That call comes as Israel continues its tenth day of assaults on Gaza. Meanwhile, Hamas militants 16 have continued to target Israel with rockets including one that struck an empty kindergarten. Israel has effectively cut Gaza in half after seizing the main highway. After moving into Gaza over the weekend, Israeli troops are dug in on the edge of Gaza city. President-elect Barack Obama said today he has been receiving daily briefings on situation in the Middle East, but he's offered little comments saying there can not be two voices coming from the US at the same time. Earlier today President Bush said the Jewish state is justified 17 in protecting itself against Hamas militants.

Apple CEO Steve Jobs has admitted that health problems will keep him from giving the keynote address at this year's MacWorld trade show which opens tomorrow. Elaine Korry  has more from San Francisco.

In a letter to employees, Jobs said that from now until late spring, he will undergo treatment for what he called a "Hormone 18 Imbalance". He said blood test had confirmed that a nutritional 19 problem was denying his body the proteins needed for good health. Over the past year, the Apple cofounder has suffered substantial weight loss. His gaunt appearance is leading to widespread rumors 20 about his health. Jobs said he will continue as Apple CEO while he recuperates 21. The high-profile MacWorld conference begins Tuesday in San Francisco. Apple shocked the tech community last month when it announced that for the first time Jobs would not be giving the keynote address. At that time the company insisted health concerns were not a factor in that decision. For NPR News, I'm Elaine Korry in San Francisco.

Crude oil futures 22 rose $2. 47 a barrel, ending the session at $48. 81 a barrel in New York.