Battlelines drawn as fiscal cliff avoided

US President Barack Obama departs the White House after delivering a statement on the fiscal cliff deal, before departing to Hawaii to resume his family holiday. Source: AFP

AMERICA'S not going over the fiscal cliff, as the House of Representatives passed the last-minute deal to pull the nation away from the brink of economic chaos, 257-167.

US stocks shot up overnight in opening trade on news of a fiscal-cliff deal in Congress that prevented most tax increases and delayed sharp spending cuts.

The Dow Jones Industrial Average was up 1.8 per cent in the first minutes of trade, while the Nasdaq Composite topped 2.8 per cent. The broad-market S&P 500 gained nearly 2 per cent.

In the first trading day of the new year, Wall Street joined a global equities rally celebrating the passage of a bill that avoids the "fiscal cliff" of automatic spending cuts and tax increases.

Traders work on the floor of the New York Stock Exchange overnight, as US stocks shot up on news of a fiscal-cliff deal in Congress.

The legislation will postpone the automatic spending cuts for two months. Individuals making more than $400,000 - $450,000 for families - would pay a top income tax rate of 39.6 per cent, up from the current 35 per cent. Others would pay at 2012 rates.

But the higher taxes and brinksmanship in Washington are likely to sap strength from the fragile economy well into 2013.

A months-long political standoff over fiscal policy has already taken its toll, adding uncertainty that has discouraged consumers from spending and businesses from hiring and investing.

US President Barack Obama announces he has averted the fiscal cliff crisis late January 1 at the White House as Vice President Joe Biden listens.

The squabbling seems sure to persist after lawmakers postponed tough decisions on government spending, giving themselves a reprieve from cuts that were scheduled to begin yesterday. That just sets the stage for more hard-bargaining later. Spending cuts, when they come, could crimp growth even more.

Mr Obama, who is expected to emergency legislation into law tomorrow, told Republicans that when it comes to spending cuts, the US must find a fair way to spread its economic burden across the economy.

"We can't cut our way to prosperity," Mr Obama said, speaking in the White House press briefing room after the historic vote which ended days of tense negotiations.

House Speaker John Boehner (R-OH) walks to the House Chamber to vote in Washington DC on January 1. After fervent New Year brinkmanship, the US Congress finally backed a deal to avert a "fiscal cliff" of tax hikes and slashing spending cuts that had threatened to unleash economic calamity.

"The one thing that I think hopefully in the New Year we'll focus on is seeing if we can put a package like this together with a little bit less drama, a little bit less brinksmanship, not scare the heck out of folks quite as much," he said.

Mr Obama also warned that he would not bargain with Republicans in Congress or offer spending cuts in return for lifting the government's borrowing limit, known as the debt ceiling, in the coming months.

"While I will negotiate over many things, I will not have another debate with this Congress over whether or not they should pay the bills that they've already racked up through the laws that they passed," the president said.

House Majority Leader Eric Cantor walks to a closed-door Republican caucus meeting on January 1.

"Let me repeat. We can't not pay bills that we've already incurred. If Congress refuses to give the United States government the ability to pay these bills on time, the consequences for the entire global economy would be catastrophic, far worse than the impact of a fiscal cliff."

Reluctant House Republicans had been concerned today's bill had too few spending cuts and not enough meaningful debt reduction, had threatened to stymie the plan. Their fury was fueled further by a new report from the nonpartisan Congressional Budget Office that the package would add $US3.97 trillion to deficits over the next decade.

But they also came to realize that scuttling the package could instantly put the nation's slowly improving economy in jeopardy. Tax rates had already gone up, and automatic spending cuts were scheduled to kick in today.

Barack Obama says agreement by Congress to raise taxes on the wealthy will avert tax hikes on the middle class and government spending cuts.

In private meetings, Republicans expressed concern that once domestic financial markets re-open after the New Year's Day holiday, reaction to legislative gridlock could be severe.

It's a risk, said Representative John Fleming, "we all recognise.''

As a result, the debate became a virtual celebration of bipartisan agreement.

A day late and trillions of dollars short, Congress passed a hard-won deal to ease large portions of the fiscal cliff

"After more than a decade of criticising these tax cuts, Democrats are finally joining Republicans in making these tax cuts permanent,'' said House Ways and Means Committee Chairman Dave Camp.

The new legsilation also ties the alternative minimum tax to inflation, a relief for an estimated 30 million taxpayers who could have been hit with higher bills. Other measures include an extension of jobless benefits for the long-term unemployed and avoiding a huge cut in Medicare payments to doctors for a year.

The vote in the House came after a day of furious closed-door lobbying-and arm-twisting. US Vice President Joe Biden met for two hours with House Democrats. At the same time, Republicans met privately twice, for a total of nearly three hours. They heard opposition from Majority Leader Eric Cantor, who has a strong following among conservatives.

Republican Senators Mitch McConnell and Pat Roberts (second from right), leave the Senate chamber to meet with fellow Republicans in a closed-door session to avert the "fiscal cliff".

"There was a lot of discontent in that room,'' said Representative Steven LaTourette.

The congressional turmoil was no surprise. Republicans have long been unhappy with Democrats' reluctance to agree to big spending cuts, and were not pleased the latest deal delayed the automatic cuts.

"This does nothing about getting the $16.4 trillion debt under control", said Republican Steve Chabot from Ohio.

Republicans made a last-ditch effort to pass more spending cuts, offering to consider the same package of $US328 billion in cuts that passed on a party-line vote December 20, but could not muster enough support.

Many Republicans worried that attaching the measure would never make it through the Senate, putting the entire fiscal cliff deal at risk.

"We don't want to do anything in the House that would create a poison pill for the Senate,'' said Raul Labrador.

Few lawmakers in either party seemed happy with the plan, as the unease crossed party and ideological lines.

"This punts the problem,'' said Rep. Raul Grijalva, D-Ariz. "It just sets us up for more fights.''

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Lesbian pair's donor fights child support bid

A Kansas man who donated sperm to help a lesbian couple conceive may be on the hook for child support now that the woman have split up. Picture: Thinkstock Source: Supplied

A SPERM donor in Kansas is fighting a state effort to force him to pay child support for a child conceived through artificial insemination by a lesbian couple.

William Marotta, 46, told The Topeka Capital-Journal he's "a little scared about where this is going to go, primarily for financial reasons".

When he donated sperm to Angela Bauer and Jennifer Schreiner in 2009, Mr Marotta relinquished all parental rights, including financial responsibility.

When Ms Bauer and Ms Schreiner filed for state assistance this year, the state demanded the donor's name so it could collect child support for the now three-year-old girl.

The state contends the agreement between Mr Marotta and the women is not valid because Kansas law requires a doctor to perform artificial insemination.

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Melbourne man falls to death in Phuket

A 21-year-old Australian tourist has fallen to his death from a hotel balcony in Phuket.

The Melbourne man, identified as Sebastian Eric Faulkner, fell in the early hours of New Year's Day, Phuket police sources told AAP on Wednesday.

The Phuket News reported that Mr Faulkner sought medical assistance from a hospital on December 30, but "left without anyone noticing".

He had been travelling with friends, who are assisting authorities with their inquiries.

Members of Mr Faulkner's family are expected to arrive in Phuket on Wednesday.

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Politician pens Bollywood love song

Bollywood films are usually about love and India's communication's minister has penned a slushy love song for a new movie. Here actors Hrithik Roshan and Aishwarya Rai appear in the romantic classic Jodhaa Akbar. Source: AFP

INDIA'S communications minister, already a poet in his spare time, has found another outlet for his creative ambitions: penning a slushy love song for a new Bollywood film.

Despite his challenging role as a minister and government troubleshooter, Kapil Sibal took up an offer by actor-director Aditya Om for the film Bandook (Gun) and wrote four songs, one of which made it into the movie.

Mr Sibal's romantic number "showcases the pangs of separation of two lovers", Om said.

"His exuberant knowledge of literature has enabled him to pen beautiful luvvy-duvvy lyrics," he added. The Hindi lines include: "romantic eyes, admire shyly, declare love silently".

The film, releasing this month, looks at gun culture in northern India and the link between crime and politics.

"I really appreciate (Sibal's) knowledge of the vast subject that is portrayed in my film, which attracted him more than anything," said Om, an upcoming director looking to break into the mainstream with the release.

Mr Sibal, 64, already has two collections of poetry under his belt and has linked poems to politics in the past.

The lawyer-politician told The Economic Times newspaper that he normally wrote on his iPad during flights, and that he was very busy with work when he penned the lyrics.

"The Bandook song is already available in ringtones, though I haven't got it as yet," he added.

In his ministerial post, Mr Sibal has come under fire from free-speech activists after he championed an amendment to India's IT act in 2009, which makes it illegal to post "grossly offensive" comments online.

Hackers attacked and defaced his website in November amid protests against the law.

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Women 'must ride bikes side-saddle'

A woman rides on the back side of a motorcycle in Banda Aceh on January 2. A city in Aceh will ban women from straddling male drivers on motorbikes, dubbing the position "improper". Source: AFP

A CITY in Indonesia's Islamic law stronghold of Aceh will ban women passengers from straddling motorbikes, describing the position as "improper".

The move comes after leaders from the country's only province ruled under strict sharia law drafted a series of new bills, including banning women from wearing tight trousers, and allowing the stoning of adulterers and the flogging of homosexuals.

Under the new law, women in Lhokseumawe city, on the northern tip of Sumatra island, will have to sit "side-saddle" with their legs dangling off to one side.

"Women sitting on motorbikes must not sit astride because it will provoke the male driver. It's also to protect women from an undesirable condition," Mayor Suaidi Yahya told AFP on Wednesday.

"It's improper for women to sit astride. We implement Islamic law here."

Women are allowed to straddle motorbikes if they are driving, as long as they are dressed "in a Muslim way", Yahya said.

The mayor plans to publicise the ban in coming weeks and will discuss sanctions with local Muslim clerics before issuing a formal regulation.

Indonesia is the world's biggest Muslim-majority nation, but most practice a moderate form of Islam.

Aceh began implementing sharia law after it was granted special autonomy in 2001. Authorities now regularly cane people caught gambling or drinking alcohol.

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Stampede 'over holy water' kills 16

A stampede in Angola caused by a scramble for sachets of holy water at a evangelical vigil, has led to the death of 16 people, including four children, from asphyxia, shoving and trampling. Source: News Limited

THE official death toll from a stampede at a New Year's Eve evangelical vigil in Angola has risen to 16, as witnesses said the tragedy was caused by a scramble for sachets of holy water.

"We confirm the death of 16 people, including four children, due to asphyxia, shoving and trampling of faithful at the entrance of Cidadela Stadium," Paulo Gaspar de Almeida, deputy commander-general of the Angolan police, told AFP.

Authorities probing how the disaster happened have discovered that the 80,000-seater stadium in the capital Luanda was packed to nearly double its capacity as turnout far exceeded expectations.

"The police, firefighters and health services and church leaders, all of us, were overwhelmed by the numbers of people who descended on Cidadela Stadium," said Gaspar de Almeida.

The initial death toll had stood at 10. Police did not give further details on the six latest deaths.

Worshipper Marcelina Baptista said people were crushed when they tried to grab sachets of water believed to have supernatural powers.

"The chaos began with the arrival of the last batch of people from Luanda's outlying neighbourhoods, through the entrance ... where sachets of blessed water were placed. Everyone wanted to reach for one. That is what caused the stampede," she said.

The vigil was organised by the Universal Church of the Kingdom of God, which was founded in Brazil in 1977 and boasts of more than a million followers in Angola, according to the culture ministry.

Its overnight New Year's Eve prayer vigil in Luanda is an annual event.

The church has denied responsibility for the tragedy.

"We sought clearance to hold the service 20 days ago, and we were granted permission," Ferner Batalha, a bishop, told AFP.

Of the more than 100 wounded during the crush, 25 sustained serious injuries, he said.

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Woman trapped in supermarket for New Year's

An elderly French woman spent New Year's Eve locked inside a supermarket after emerging from the toilet to find the shop closed and the doors locked. Source: The Courier-Mail

WHILE others were celebrating the start of 2013, an elderly French woman has spent New Year's Eve locked inside a supermarket.

The 73-year-old was trapped in the supermarket in the northern city of Roubaix after emerging from the toilet to find the shop closed and the doors locked, local firefighters said.

She set off the alarms several times throughout the night but there was no answer.

She was only discovered the morning of New Year's Day around 10.30am (local time).

Despite her ordeal, the woman did not take advantage of the situation to snatch some new year's treats and spent the night without eating or sleeping.

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Ailing Chavez in 'delicate' condition: VP

Venezuelan President Hugo Chavez in April last year. Source: AFP

VENEZUELA'S vice president is returning home from a visit with Hugo Chavez in Cuba and says the ailing president's condition remains "delicate" three weeks after his cancer surgery.

With rumours swirling that Mr Chavez had taken a turn for the worse, Vice President Nicolas Maduro said on Tuesday that he had met with the president twice and had spoken with him.

"He's totally conscious of the complexity of his post-operative state and he expressly asked us ... to keep the nation informed always, always with the truth, as hard as it may be in certain circumstances," Mr Maduro said in the prerecorded interview in Havana, which was broadcast on Tuesday night by the Caracas-based television network Telesur.

Both supporters and opponents of Mr Chavez have been on edge in the past week amid shifting signals from the government about the president's health. Mr Chavez has not been seen or heard from since the December 11 operation, and officials have reported a series of ups and downs in his recovery - the most recent, on Sunday, announcing that he faced new complications from a respiratory infection.

A TV grab showing Venezuelan Foreign Minister and Vice president Nicolas Maduro during an interview in Havana on January 1.

Mr Maduro did not provide any new details about Mr Chavez's complications during Tuesday's interview. But he joined other Chavez allies in urging Venezuelans to ignore gossip, saying rumours were being spread due to "the hatred of the enemies of Venezuela."

He didn't refer to any rumours in particular, though one of them circulating online had described Mr Chavez as being in a coma.

Mr Maduro said Mr Chavez faces "a complex and delicate situation." But Mr Maduro also said that when he talked with the president and looked at his face, he seemed to have "the same strength as always."

A woman reacts as people gather to pray for Venezuela's President Hugo Chavez at a church in Caracas.

"All the time we've been hoping for his positive evolution. Sometimes he has had light improvements, sometimes stationary situations," he said.

Mr Maduro's remarks about the president came at the end of an interview in which he praised Venezuelan government programs at length, recalled the history of the Cuban revolution and touched on what he called the long-term strength of Mr Chavez's socialist Bolivarian Revolution movement.

He mentioned that former Cuban President Fidel Castro had been in the hospital, and praised Cuba's government effusively. "Today we're together on a single path," Mr Maduro said.

Critics in Venezuela sounded off on Twitter while the interview was aired, some saying Mr Maduro sounded like a mouthpiece for the Cuban government. In their messages, many Chavez opponents criticised Mr Maduro for the dearth of information he provided, accusing him of withholding key details about Mr Chavez's condition.

Mr Chavez's political opponents have complained that the government hasn't told the country nearly enough about his health, and have demanded it provide the country with a full medical report.

Even some of his supporters say they wished they knew more.

"We're distressed by El Comandante's health," said Francisca Fuentes, who was walking through a downtown square with her grandchildren on Tuesday. "I think they aren't telling us the whole truth. It's time for them to speak clearly. It's like when you have a sick relative and the doctor lies to you every once in a while."

Mr Chavez has been fighting an undisclosed type of pelvic cancer since June 2011. He has declined to reveal the precise location of the tumours that have been surgically removed. The president announced on December 8, two month after winning re-election, that his cancer had come back despite previous surgeries, chemotherapy and radiation treatment.

"There's nothing we can do except wait for the government to deign to say how he is really," said Daniel Jimenez, an opposition supporter who was in a square in an affluent Caracas neighborhood.

Jimenez and many other Venezuelans say it seems increasingly unlikely that Mr Chavez can be sworn in as scheduled on January 10 for his new term. If he dies or is unable to continue in office, the Venezuelan Constitution says a new election should be held within 30 days.

Before his operation, Mr Chavez acknowledged he faced risks and designated Mr Maduro as his successor, telling supporters they should vote for the vice president if a new presidential election was necessary.

Mr Maduro didn't discuss the upcoming inauguration plans, saying only that he is hopeful Mr Chavez will improve.

The vice president said that Mr Chavez "has faced an illness with courage and dignity, and he's there fighting, fighting."

"Someone asked me yesterday by text message: How is the president? And I said, 'With giant strength,'" Mr Maduro said. He recalled taking Mr Chavez by the hand: "He squeezed me with gigantic strength as we talked."

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Kidnapped peacekeepers freed in Darfur

A member of the rebel Sudan Liberation Army stands guard as people gather for the arrival of a UNAMID delegation in north Darfur, last May. Two UNAMID peacekeepers have just been freed after more than four months in captivity. Source: AFP

TWO Jordanian peacekeepers have been freed after 136 days of captivity in Sudan's Darfur region, the African Union-UN mission to the troubled region said.

"They are safe," UNAMID spokeswoman Aicha Elbasri said.

"This is the longest hostage-taking incident (for UNAMID)."

The peacekeepers were on their way to Khartoum and then Jordan after their release in Zalingei, capital of the recently-created Central Darfur state, she said.

"They were medically checked and they appear to be unharmed and in good health," Ms Elbasri said, adding she had no information on who the abductors may have been.

The Jordanians went missing on August 20 in Kebkabiya town, about 140 kilometres west of El Fasher, the capital of North Darfur state where the UN has warned in recent months of rising insecurity.

Their release was welcomed by Jordan's police directorate.

"Police corporals Hassan Mazawdeh and Qasem Sarhan are now at the Jordanian mission, enjoying good health," the kingdom's Public Security Directorate said in a statement, without elaborating.

"We thank the Sudanese government and the United Nations for their help, support and coordination," it added.

"We are currently in contact with the Sudanese government and the United Nations to ensure the safe return of the two corporals as soon as possible."

Jordan's police directorate said at the time that the pair disappeared while they shopped in the Kebkabiya area.

They were among a group of peacekeepers buying supplies in a market but they failed to show up at a pre-arranged meeting point at the end of the trip, the police said.

Recent years have seen a wave of kidnappings for ransom in Darfur, where ethnic rebels a decade ago began an uprising against the Arab-dominated Khartoum government.

Although violence is down from its peak, villages have been razed and rebel-government fighting, banditry, inter-Arab and tribal disputes continue to afflict the region, in Sudan's far west.

Last May, unknown captors released a British employee of the UN's World Food Program who had been held for nearly three months in Darfur.

In February, rebels of the Justice and Equality Movement freed five Turks they held captive for several months.

That followed the release in December 2011 of Italian hostage Francesco Azzara, a humanitarian worker abducted for about four months. UNAMID blamed a "criminal element".

That same year three Bulgarian helicopter pilots working under a UN contract were held for 145 days.

An analyst has said that it is often known very quickly who the kidnappers are, but negotiations take time.

Chances that the suspects will be brought to justice are slim because "there are too many links between the government people, (and) the tribes", said the analyst who declined to be named.

It was not immediately clear how many UNAMID members have been taken hostage during the five-year history of the world's largest peacekeeping mission.

Forty-three UNAMID peacekeepers have been killed in hostile action, including five in October.

Dane Smith, the US administration's senior adviser for Darfur, said in December that both militia and bandits have attacked UNAMID peacekeepers and although the Sudanese government has announced investigations "there never are any results".

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