NPR 2010-12-17

President Obama is expressing cautious optimism about the way the war's progressing in Afghanistan. NPR's Rachel Martin reports the White House releases its long-awaited progress report today.

The president took the podium flanked by the Vice 1 President Joe Biden, Secretary of Defense 2 Robert Gates and Secretary of State Hillary Clinton. It was meant as a show of solidarity 3 for a war strategy in Afghanistan that the president says is working despite challenges.

"In many places, the gains we've made are still fragile and reversible. But there is no question we are clearing more areas from Taliban control and more Afghans are reclaiming 4 their communities."

The administration's review says that success in Afghanistan depends on getting rid of the insurgents 5' safe havens 6 in Pakistan. Still, the president said enough progress has been made to move forward with plans to bring some US troops home in July of 2011. Rachel Martin, NPR News, Washington.

The Wikileaks founder 7 under diplomatic fire for releasing secret documents about the wars in Afghanistan and Iraq is out on bail 8. Today, a British judge allowed Julian Assange to walk free on more than $300,000 bail. Sweden lost its appeal to keep Assange locked up while it tried to extradite him for questioning in a sex crimes investigation 9. Today, Assange said this was a welcome break in what's turned out to be a lengthy 10 ordeal 11.

"If justice is not always an outcome, at least it is not dead yet."

While he fights extradition 12, Assange also faces diplomatic fire for releasing record amounts of secret diplomatic cables and other clssified documents.

There's a fresh sign that consumers are more willing to spend. NPR's Giles Snyder reports that stronger demand for imported goods helped push the trade deficit 13 wider in the third quarter.

The Commerce Department says imports were up 1.7 percent from the previous quarter, growing to more than $494 billion and pushing up the current account deficit by more than three percent. It's the fifth straight quarterly increase and the current account deficit is now at its highest in two years. The new data suggests that consumers are more optimistic about where the economy is headed. They're buying more imported products, especially clothing, shoes and household appliances. Exports also showed healthy gains up to 2.2 percent, as a weaker dollar makes some American-made products more attractive overseas. The current account is the broadest measure of foreign trade, because it includes investiments between the United States and other countries. Giles Snyder, NPR News, Washington.

The tax-cut compromise President Obama struck with congressional Republicans last week is under review in the House. A day after it easily passed the Senate, House Democrats 14 are trying to make changes to the more than 800-billion-dollar package that includes a two-year extension of Bush-era tax cuts or also extending unemployment insurance to millions of Americans.

This is NPR News.

Two young men have pleaded guilty to setting a series of church fires in East Texas earlier this year. Bill Zeeble with member station KERA in Dallas reports the defendants 15 face life in prison.

In a Tyler Texas court, 20-year-old Jason Bourque and 22-year-old Daniel McAllister admitted to setting the fires in January and February. Nobody was injured, but ten churches were destroyed or damaged and state and federal officials launched an investigation. Thanks to security video and other evidence, the two boyhood friends were arrested in February. They waived 16 the jury trial. Bourque pleaded guilty to five counts of arson 17 and three counts of attempted arson. McAllister admitted to a pair of arson counts and two attempted arson counts. Prosecutors 18 want life sentences for both men. Sentencing is set for January 10th of next year. For NPR News, I'm Bill Zeeble in Dallas.

New signs fell for the week. Housing market construction rose nearly four percent from October to November. Following two months of declines, the gains attributed mainly to breaking ground on single family homes. But overall, the sector's recovery remains 19 sluggish 20. The pace of housing starts is the slowest as it's been since April of 2009.

Pakistani intelligence reporting today a suspected US missile strike against militants 21 in the Khyber region, they say seven people were killed.

Here's the latest from Wall Street. The Dow Jones Industrial Average up 47 points at 11,505; on use of some positive economic news out today, the NASDAQ Composite Index rising 80 at 2,635; S&P 500 up six at 1,242.

I'm Lakshimi Singh, NPR News, Washington.