'Fiscal cliff' takes center stage









Now that Wall Street knows President Obama will stay in the White House, investors' attention has returned to looming crises facing the U.S. and European economies.

Major stock indexes were down more than 2 percent midway through the first trading session after election day.

At the top of the agenda is the "fiscal cliff," the automatic spending cuts and tax hikes looming at year's end. If Obama cannot successfully resolve the crisis with a House still controlled by Republicans, economists have warned that the "cliff" could slow growth and push the U.S. back into recession.

"We've gotten certainty on the presidency and now we move into the uncertainty of where we were before -- the fiscal cliff," said Quincy Krosby, a market strategist at Prudential Financial. "The market's not going to have much patience to wait to see when the negotiations begin in earnest and how they evolve."

The Dow Jones industrial average regained some ground but was still down 303 points, or 2.3 percent, to 12,943 in midday trading.

The broader Standard & Poor's 500 index was down 32 points, or 2.2 percent, to 1,396. The Nasdaq was down 71 points, or 2.4 percent, to 2,941.

Corporations reported sluggish revenues in the third quarter, signaling slowing economic growth regardless of the fiscal cliff, Krosby noted. Declining company fortunes could lead to job cuts and further drags on economic growth as consumer demand falls.

Also weighing on investors' minds: Continuing worries out of Europe. Economic data out of Germany indicate that not even the continent's most powerful economy is immune to the Eurozone slowdown, as European Central Bank President Mario Draghi noted in remarks Wednesday.

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Obama and Romney deadlocked in polls

Election Day arrives, sending voters streaming to the polls to pick the next president and the candidates themselves scrounging for last-minute votes. The presidential contest is likely to be close, hinging on a few key states like Ohio









President Barack Obama and Republican challenger Mitt Romney battled down to the wire on Tuesday, mounting a last-minute Election Day drive to get their supporters to the polls in a handful of states that will decide the winner in a neck-and-neck race for the White House.

Capping a long and bitter presidential campaign, Americans cast their votes at polling stations across the country. At least 120 million people were expected to render judgment on whether to give Obama a second term or replace him with Romney.

National opinion polls show Obama and Romney in a virtual dead heat, although the Democratic incumbent has a slight advantage in several vital swing states, most notably Ohio, that could give him the 270 electoral votes needed to win the state-by-state contest.

Obama stayed in hometown Chicago, reaching out to swing-state voters on the phones and via satellite while the other three candidates had a high noon show-down along the shore of Lake Erie.








In an awkward convergence of campaign planes that underscored the importance both sides have pinned on Ohio, Vice President Joe Biden made a surprise landing in Cleveland just minutes after Romney touched down, in what looked like an attempt to steal the Republican's thunder.

Romney stayed on board until the Biden motorcade cleared the tarmac, which soon became even more crowded when his Republican running mate, Paul Ryan, landed to join the Cleveland visit.

The rush for Ohio and its 18 electoral votes highlighted the importance of the state to both campaigns' victory plans. Polls going into Election Day showed Obama with a narrow lead there, and Romney said the eleventh-hour campaigning was meant to leave him with no regrets.

"I can't imagine an election being won or lost by, let's say, a few hundred votes and you spent your day sitting around," Romney told Richmond radio station WRVA earlier in the day. "I mean, you'd say to yourself, 'Holy cow, why didn't I keep working?' And so I'm going to make sure I never have to look back with anything other than the greatest degree of satisfaction on this whole campaign."

Meanwhile, Americans headed into polling places in sleepy hollows, bustling cities and superstorm-ravaged beach towns deeply divided. All sides were awaiting, in particular, a verdict from the nine battleground states whose votes will determine which man can piece together the 270 electoral votes needed for victory.

Obama has more options for getting there. So Romney decided to make the late dash to Cleveland and Pittsburgh on Tuesday while running mate Ryan planned another stop in Richmond, Va.

Obama visited a campaign office close to his home in Chicago and was met by applause and tears from volunteers before he picked up a phone to call voters in neighboring Wisconsin. He told reporters that the election comes down to which side can get the most supporters to turn out.

"I also want to say to Gov. Romney, 'Congratulations on a spirited campaign.' I know his supporters are just as engaged, just as enthusiastic and working just as hard today," the president said. The tightness of the race didn't keep Obama from winding down with his traditional Election Day basketball game with friends.

Romney also congratulated the president for running a "strong campaign."

"I believe he's a good man and I wish him well," Romney said at a campaign call center near Pittsburgh that was crowded with volunteers. He added that Obama is a "good father," but said it's just time for a change at the White House.

HOUSE AND SENATE ALSO IN PLAY


It wasn't just the presidency at stake Tuesday: Every House seat, a third of the Senate and 11 governorships were on the line, along with state ballot proposals on topics ranging from gay marriage and casino gambling to repealing the death penalty and legalizing marijuana. Democrats were defending their majority in the Senate, and Republicans doing likewise in the House, raising the prospect of continued partisan wrangling in the years ahead no matter who might be president.

The forecast for Election Day promised dry weather for much of the country, with rain expected in two battlegrounds, Florida and Wisconsin. But the closing days of the campaign played out against recovery efforts after Superstorm Sandy. Election officials in New York and New Jersey scrambled to marshal generators, move voting locations, shuttle storm victims to polling places and take other steps to ensure everyone who wanted to vote could do so.

In New York City, authorities planned to run shuttle buses every 15 minutes in storm-slammed areas to bring voters to the polls. In Ocean County along the New Jersey coast, officials hired a converted camper to bring mail-in ballots to shelters in Toms River, Pemberton and Burlington Township.

"This is the happiest vote I ever cast in my life," said Annette DeBona as she voted for Romney in Point Pleasant Beach, N.J. The 73-year-old restaurant worker was so worried about not being able to vote that she called the police department several days in advance, as well as her church, to make absolutely sure she knew where to go and when.

Renee Kearney, of Point Pleasant Beach, said she felt additional responsibility to vote this Election Day. The 41-year-old project manager for an information technology company planned all along to vote for Obama, but said her resolve was strengthened by his response to Sandy.

"It feels extra important today because you have the opportunity to influence the state of things right now, which is a disaster," Kearney said.

Election Day came early for more than a third of Americans, who cast ballots days or even weeks in advance. An estimated 46 million ballots, or 35 percent of the 133 million expected to be cast, were projected to be early ballots, according to Michael McDonald, an early voting expert at George Mason University who tallies voting statistics for the United States Elections Project. None of those ballots were being counted until Tuesday.

Biden and his wife, Jill Biden, were among the first voters Tuesday at a polling place in Greenville, Del., Biden's home state. Smiling broadly, Biden waited in line with other voters and greeted them with a handshake. Outside he sent a message to people across the country who may encounter crowded polling places. "I encourage you to stand in line as long as you have to," he said.

The Obamas voted last month in an effort to encourage supporters to vote early. The men on the GOP ticket each voted with their wives at their side Tuesday in their hometowns — Romney in Belmont, Mass., and Ryan in Janesville, Wis. — then met in Cleveland for some retail politicking. The last-minute nature of the swing made it too difficult to arrange a big public event, but their hope was their joint visit would get local news coverage that might translate to more support.

Romney and Ryan visited a campaign office in in Richmond Heights, Ohio, to thank volunteers. "This is a big day for big change," Romney said." The pair then stopped at a nearby Wendy's for quarter-pound hamburgers.

Ten miles to the west, Biden stopped at the Landmark Restaurant lunch counter and apologized for the commotion his entourage caused. He told diners in one booth he understands they just came to get some spaghetti "and Joe Biden shows up."

Both sides cast the Election Day choice as one with far-reaching repercussions for a nation still recovering from the biggest economic downturn since the Great Depression and at odds over how big a role government should play in solving the country's problems.

"We can make sure that we make even greater progress going forward in putting folks back to work and making sure that they've got decent take-home pay, making sure that they have the health insurance that they need, making sure we're protecting Medicare and Social Security," Obama said in an interview broadcast Tuesday on "The Steve Harvey Morning Show." ''All those issues are on the ballot, and so I'm hoping that everybody takes this seriously."

Romney argued that Obama had his chance to help Americans financially and blew it. "If it comes down to economics and jobs, this is an election I should win," Romney told Cleveland station WTAM.

With both sides keeping up the onslaught of political ads in battleground states right into Election Day, on one thing, at least, there was broad agreement: "I am ready for it to be over," said nurse Jennifer Walker in Columbus, Ohio.

The election played out with intensity in the small subset of battleground states: Colorado, Iowa, Florida, New Hampshire, Nevada, North Carolina, Ohio, Virginia and Wisconsin. Romney's late move to add Pennsylvania to the mix was an effort to expand his options, and Republicans poured millions into previously empty airwaves there.

In the campaign's final hours, voters around the country echoed the closing arguments of the two presidential candidates.

Jim Clark, a 42-year-old computer administrator from Topeka, Kan., is a registered Republican who voted for Obama in 2008, seeking change. But he voted Tuesday for Romney after losing a full-time job two years ago and working temporary assignments since then.

"I'm just ready for a change," Clark said. "It's tougher for me, personally. The economy has not improved."

Lauren Clay, 28, a doctoral student in disaster science and management, voted for Obama.

"He has a done a really good job given what he was handed four years ago," she said.

___

The Associated Press and Reuters contributed.





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Exclusive - Amazon to win EU e-book pricing tussle with Apple

BRUSSELS (Reuters) - European Union regulators are to end an antitrust probe into e-book prices by accepting an offer by Apple and four publishers to ease price restrictions on Amazon, two sources said on Tuesday.


That decision would hand online retailer Amazon a victory in its attempt to sell e-books cheaper than rivals in the fast-growing market publishers hope will boost revenue and increase customer numbers.


"Faced with years of court battles and uncertainty I can understand why some of these guys decided to fold their cards and take the whipping," said Mark Coker, founder of Smashwords, an ebook publisher and distributor that works with Apple.


"It's certainly another win for Amazon," he added. "I have not seen the terms of the final settlement, but my initial reaction is that it places restrictions on what publishers can do, slowing them down just when they need to be more nimble."


A spokesman at the EU Commission said its investigation was not yet finished. Amazon and Apple declined to comment.


In September, Apple and the publishers offered to let retailers set prices or discounts for a period of two years, and also to suspend "most-favored nation" contracts for five years.


Such clauses bar Simon & Schuster, News Corp. unit HarperCollins, Lagardere SCA's Hachette Livre and Verlagsgruppe Georg von Holtzbrinck, the owner of German company Macmillan, from making deals with rival retailers to sell e-books more cheaply than Apple.


The agreements, which critics say prevent Amazon and other retailers from undercutting Apple's charges, sparked an investigation by the European Commission in December last year.


Pearson Plc's Penguin group, which is also under investigation, did not take part in the offer.


The EU antitrust authority, which in September asked for feedback from rivals and consumers about the proposal, has not asked for more concessions, said one of sources.


"The Commission is likely to accept the offer and announce its decision next month," the source said on Tuesday.


Antoine Colombani, spokesman for competition policy at the European Commission, said: "We have launched a market test in September and our investigation is still ongoing."


Amazon declined to comment, while Apple did not respond to an email seeking comment.


Companies found guilty of breaching EU rules could be fined up to 10 percent of their global sales, which in Apple's case could reach $15.6 billion, based on its 2012 fiscal year.


AGGREGATE PRICING


UBS analysts estimate that e-books account for about 30 percent of the U.S. book market and 20 percent of sales in Britain but are minuscule elsewhere. When Amazon launched its Kindle e-reader, it charged $9.99 per book.


Apple's agency model let publishers set prices in return for a 30 percent cut to the maker of iPhone and iPad.


The U.S. Department of Justice is investigating e-book prices. HarperCollins, Simon & Schuster and Hachette have settled, but Apple, Pengin Group and Macmillan have not.


The DOJ settlement required that retailers must at least break even selling all ebooks from a publisher's available list, according to Coker and Joe Wikert, general manager and publisher at O'Reilly Media Inc.


It was not clear if EU regulators will include a similar requirement, which would prohibit Amazon from pricing all ebooks at a loss, said Wikert, a former publishing executive.


In the United States, Amazon will likely price popular titles at a loss and try to make up the difference on a publisher's other ebooks, he said.


Coker said any such rule could be dangerous in Europe, which still has distinct markets.


"It could allow a single retailer to charge full price in a large market like the U.K., and then sell below cost or for free in multiple smaller markets as a strategy to kill regional ebook retailing upstarts before they take root," Coker said.


FROWNING ON ONLINE TRADE CURBS


Antitrust regulators tend to frown on restrictions on online trade and the case is a good example, said Mark Tricker, a partner at Brussels-based law firm Norton Rose.


"This case shows the online world continues to be a major focus for the Commission," he said.


"These markets change very quickly and if you don't stamp down on potential infringements of competition rules, you can have significant consequences."


(Additional reporting by Alistair Barr in San Francisco; Editing by Rex Merrifield, David Goodman and David Gregorio)


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Broadway takes a big hit from Superstorm Sandy
















NEW YORK (AP) — Superstorm Sandy, which darkened Broadway for four days, predictably ravaged the box offices around Times Square, with shows losing more than $ 8.5 million from the previous week.


The Broadway League, the national trade association for the Broadway industry, released data Tuesday that showed, as expected, all shows took a hit. One of the hardest hurt was the Matthew Broderick musical “Nice Work If You Can Get It,” which lost $ 538,853.













Since the storm actually affected two weeks of data, the League estimates that grosses managed just $ 33.66 million for that period, a drastic fall from the same time frame last year, where the box offices earned $ 42.2 million. Attendance also plunged 19 percent from the 10-year average.


The storm, which struck last Monday, forced all 40 Broadway theaters to shutter the night before. All shows were up and running by Thursday night, but the damage had been done, though few expect the pain to last.


“It will come back to its former life, there’s no question about it. Broadway is New York and everyone celebrates the theater in this city,” said Barry Weissler, who has been producing work on Broadway since 1982. “It’s catch-up time.”


Most shows on Broadway have eight performances a week, but Sandy forced many, including “The Phantom of the Opera,” ”The Heiress,” ”Who’s Afraid of Virginia Woolf?” and “Chicago” to put on just six shows. “Glengarry Glen Ross” and “Evita” only managed five shows. Altogether, 48 individual performances were canceled.


Other shows that took a beating include “Wicked,” which lost $ 490,996, though it still managed to pull in $ 1,166,275. The least hurt was “Rock of Ages,” which lost just $ 59,209.


Sandy joins other recent shocks to have rocked Broadway finances, including the Sept. 11 attacks, which shuttered theaters for two days, and Hurricane Irene in 2011 that wiped away a weekend’s revenue.


“Storms will not stop us, the terrible tragedy of 9/11 will not stop us. Theater will continue. It’s one of the oldest art forms known to man and it will continue,” said Weissler, who together with his wife, Fran, has produced such shows as “Grease,” ”Chicago” and “Annie Get Your Gun.”


The League said that the losses from Hurricane Irene were actually larger than for Sandy. Not only were 66 individual performances scrapped for Irene, but the storm struck during the busy summer, not the slower fall.


But Sandy may have hurt off-Broadway theaters more. The SoHo Rep and The Bank Street Theater lost power and had some flooding, while many other downtown theaters lost power, including the MCC Theatre and SoHo Playhouse. The Canal Park Playhouse canceled all November and December performances.


The infectious drumming show “Blue Man Group” was quieted, the immersive, genre-bending show “Sleep No More” was stilled, and The Public Theater was shut down for almost a week. The lobby at its home at Astor Place is now a collection site for post-Sandy supplies.


Entertainment News Headlines – Yahoo! News



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Global Update: Polio Eradication Efforts in Pakistan Focus on Pashtuns


Michael Kamber for The New York Times







Polio will never be eradicated in Pakistan until a way is found to persuade poor Pashtuns to embrace the vaccine, according to a study released by the World Health Organization.




A survey of 1,017 parents of young children found that 41 percent had never heard of polio and 11 percent refused to vaccinate their children against it. The survey was done in Karachi, Pakistan’s largest city and the only big city in the world where polio persists; it was published in the agency’s November bulletin.


Parents from poor families “cited lack of permission from family elders,” said Dr. Anita Zaidi, who teaches pediatrics at the Aga Khan University in Karachi. Some rich parents also disdained the vaccine, saying it was “harmful or unnecessary,” she added.


Pashtuns account for 75 percent of Pakistan’s polio cases even though they are only 15 percent of the population. Wealthy children are safer because the virus travels in sewage, and their neighborhoods may have covered sewers and be less flood-prone.


Pashtuns are the largest ethnic group in next-door Afghanistan, where polio has also never been wiped out. Most Taliban fighters are Pashtun, and some Taliban threatened to kill vaccinators earlier this year. Two W.H.O. vaccinators were shot in Karachi in July.


Rumors persist that the vaccine is a plot to sterilize Muslims. But the eradication drive is recruiting Pashtuns as vaccinators and asking prominent religious leaders from various sects to make videos endorsing the vaccine.


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Political futures traders pick Obama









WASHINGTON -- The votes of traders in political futures have been pouring in for months, and they say President Obama lands a second term in Tuesday's election.

The chances that Obama is reelected stood at about 71% on Tuesday morning on Intrade, near a one-month high and up about 3% for the day in early trading. The chances that Republican Mitt Romney wins the presidency were about 29%, close to a low for the past month and down about 4%.

Most people buying political futures on the site also apparently believe that Republicans will retain control of the House and Democrats will hold on to their majority in the Senate.





Intrade's futures have an excellent track record. They accurately predicted the result in every state in the 2004 presidential election, and all but two in the 2008 contest, according to CNNMoney.

This year, Intrade gives Obama a 73% chance of winning the crucial battleground state of Ohio, with Romney at about 27% as of Tuesday morning. And the site predicts that Obama will win 294 electoral votes to Romney's 235.

The market will remain open all day, "until a winner is clearly known," an Intrade spokesman said.

Intrade bettors correctly predicted in January that Romney would win the Republican nomination, but at no point in the 2012 presidential campaign did the political futures traders have Romney beating Obama.

That's somewhat surprising given that Obama's odds of winning plunged in the summer of 2011 to about even money after the contentious battle over raising the nation's debt ceiling and the Standard & Poor's credit downgrade that followed.

But Romney has closed a huge late-September gap on Intrade's presidential election market, when Obama's reelection odds neared 80%.

ALSO:

Romney top bet to win Iowa on political futures trading site

Obama's reelection odds sink on political futures trading site

Wall Street may rally regardless of presidential election winner

Follow Jim Puzzanghera on Twitter and Google+.





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