NPR 2009-03-17

The White House appears to be sharing the outrage 1 of many average citizens over how insurance giant American International Group has apparently 2 used some of the billions in federal bailout money it received. Amid reports that AIG, which has received roughly 170 billion dollars in government money, is paying 165 million dollars in executive bonuses, there's been a firestorm of public outrage. The president vowed 3 he will use every legal avenue to try to prevent the company from paying out bonuses. AIG, which also revealed that it has paid banks and other firms some 90 billion dollars, has said it's contractually obligated to pay bonuses to its executives and includes those who are part of the division where the company's financial crisis originated.

The White House has rejected South Carolina Governor Mark Sanford's request to use part of his state's share of stimulus 4 money to pay down South Carolina's debt. NPR's Brian Naylor reports.

Sanford, a Republican, has frequently criticized the stimulus, saying it will lead to higher taxes and debt. He's spoken out against the part of the stimulus package that aims to expand state unemployment benefits. And last week he requested an exemption 6 to use some 700 million dollars slated 7 for schools and other government services to pay down the state's debt. But White House Budget Director Peter Orszag said in a letter to Sanford that the federal stimulus law does not allow for such an exemption. The governor has said he would reject some of the stimulus money if he can't get flexibility 8 in how to spend it. The South Carolina Legislature could vote to overrule Sanford's decision. Brian Naylor, NPR News, Washington.

US military is reporting today that an American jet shot down an unmanned Iranian surveillance aircraft last month over Iraqi territory. According to a statement released today, the incident took place last month some 60 miles northeast of Baghdad. US officials say they tracked the unmanned plane for more than an hour before it was shot down.

Defense 10 Secretary Robert Gates will skip a NATO summit next month in order to stay in Washington and work on the defense budget. NPR's Mary Louise Kelly reports.

The NATO summit is planned for early April in Strasbourg, France and Kehl, Germany. It's time to celebrate the 60th anniversary of the alliance. The gathering 11 is also expected to provide a forum 12 for President Obama to lay out his new strategy for Afghanistan and Pakistan and try to win the backing of NATO allies for his plans there. Secretary Gates was expected to go, instead he'll stay put in Washington in order to focus on what Pentagon Spokesman Brian Whitman calls "one of the most challenging budget reviews in years." Whitman denied any other reason for the change of plans and noted 13 the US will be well represented at the summit with both President Obama and National Security Advisor 14 James Jones planning to attend. Mary Louise Kelly, NPR News, Washington.

On Wall Street today, the Dow Jones Industrial Average fell 7 points to close at 7,216. The NASDAQ dropped 27 points. The S&P 500 closed down 2 points today.

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Mexico says it plans to boost tariffs 15 on roughly 90 US-made products. That follows the announcement last week from the US it will cancel a pilot program that allows some Mexican trucks to transport goods within the US. The Mexican Economy Department in announcing the sanction cited the fact US decision violates a provision of the North American Free Trade Agreement that was supposed to have opened the cross-border trucking years ago. Mexican government did not name the products that will be affected 16 or specify 17 how much such tariffs will go up.

The world's biggest oil exporting nation Saudi Arabia says crude oil prices are too low. A Saudi energy minister spoke 5 at a conference in Switzerland. From Geneva, Alex Helmick reports.

Less than a year ago, crude oil prices soared to more than $140 a barrel. Now in the midst of an economic crisis the prices have plummeted 18 to around $40 a barrel. And ministers from oil producing nations say the future of their economies and the global economy depends on higher prices. Ali al-Naimi is Saudi Arabia's Petroleum 19 Minister. "You need between $60 and $70 or $60 and $75 to allow marginal producers to continue producing ethanols, tar 9 sands, heavy oils what alike." Al-Naimi says his country will continue to keep oil production below the international quota 20 because, he says, there is not enough global demand. For NPR News, I'm Alex Helmick in Geneva.

Output from the nation's mines and factories tumbled for the forth 21 straight month in February. The government says factories were running at just 67.4 percent of capacity. That's their lowest level on records going back to 1948.