NPR 2011-07-19

House Republicans are spearheading a bill that they say would cut, cap and balance the federal budget. President Obama says if it gets to his desk, he'll veto it. NPR's Ari Shapiro reports this is all part of the contentious 1 debate over reducing deficits 2 and raising the debt ceiling.

The White House accuses Republicans of pursuing "an empty political statement and unrealistic policy goals." The so-called "cut, cap and balance" plan deeply cuts spending, rules out tax increases and calls for a balanced budget amendment 4 to the Constitution before Congress raises the debt ceiling. The plan has no chance in the Democrat-controlled Senate. It's more of a statement of purpose by House Republicans. The president‘s veto threat is just as emphatic 5 a statement calling the bill politics as usual. This back-and-forth shows just how far apart the two parties remain on the debt ceiling negotiations 6. If Congress does not increase the country's borrowing limit by August 2nd, the US may not be able to pay all of its financial obligations and risks going into default. Ari Shapiro, NPR News, Washington.

Now, NPR's Yuki Noguchi has been monitoring the showdown's impact on the markets where US stocks are ending the day lower for at least a couple reasons.

There are concerns that negotiations among lawmakers in the US aren't making progress on raising the debt ceiling. Meanwhile, leaders of the European Union are said to meet later this week. Inventors appear worried about the ability of banks and politicians to contain the spread of the debt crisis that began in Greece. Investors 7 sold off their Italian and Spanish bonds. Gold prices, meanwhile, continue to soar in what is another sign of shaken faith in the markets. Yuki Noguchi, NPR News, Washington.

A former Ohio attorney general is President Obama's choice to direct the new consumer protection bureau. Today, the president formally nominated Richard Cordray, who still needs to be confirmed by the Senate.

A new twist of the scandal surrounding Rupert Murdoch's media empire. A whistle-blower from the now defunct 8 News of the World has been found dead at his home, north of London. Larry Miller 9 reports Sean Hoare was the first to allege 10 that former editor Andy Coulson, who later served as Prime Minster David Cameron's communications chief, knew the newspaper had hacked 11 people's cell phones in pursuit of stories.

Hoare was a former News of the World showbiz reporter. Police say his death is unexplained and not thought to be suspicious, but that their investigation 12 is ongoing 13. He made his phone-hacking 14 claims to the New York Times, saying not only did Coulson know about the hacking, he actively 15 encouraged staff to intercept 16 calls of celebrities 17. Of Coulson's subsequent denial, Hoare told the BBC it's a lie. Coulson was arrested last week, and the prime minister has been sharply criticized for hiring him. Most recently, Hoare told the Times that reporters paid police to use their technology to track people through their cell phone signals. For NPR News, I'm Larry Miller in London.

News Corp. shares of the company tumbled today in New York 4.5%.

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Judges in Milan are rejecting a request from lawyers for Italian Prime Minister Silvio Berlusconi to move his sex trial out of court to a special parliamentary appointed tribunal. NPR's Sylvia Poggioli reports this is just one of four current cases pending 3 against Berlusconi.

The prime minister, who admits to a fondness for young women, stands accused of having paid for sex with an underage Moroccan pole dancer. He's also charged with abuse of office in trying to cover up the affair. Berlusconi denies the charges and claims Milan magistrates 18 are politically biased 19 against him. His critics say he's trying to escape ordinary justice by moving the trial to a special tribunal for ministers, where he would get a more favorable hearing. Today's ruling means the case will go ahead and resume in October. Berlusconi did not appear in court, where there was also a hearing in another case where he stands accused of corruption 20. Sylvia Poggioli, NPR News, Rome.

Marine 21 General John Allen is now in charge of international troops in Afghanistan. He assumed command at a ceremony in Kabul today from General David Petraeus, who recently became the director of the CIA. Allen will oversee 22 the US military drawdown in Afghanistan, which began earlier this month.

Tropical Storm Dora is expected to gain strength in the Pacific off southern Mexico. Dora is expected to become a hurricane by Wednesday. However, the National Hurricane Center in Miami says it does not expect the storm to make landfall.

Before the close on Wall Street, Dow Jones Industrial Average down 93 points, or 0.25%, at 12,387 in trading of three billion shares; NASDAQ was down 25, under 1%, at 2,765.

I'm Lakshmi Singh, NPR News.