Reuters: Politics: Veteran Democrat, Republican newcomer win Massachusetts Senate primaries

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Veteran Democrat, Republican newcomer win Massachusetts Senate primaries May 1st 2013, 03:44 Congressman Ed Markey (D-MA) arrives to meet with House Democrats and U.S. Vice President Joseph Biden about a solution for the ''fiscal cliff'' on Capitol Hill in Washington January 1, 2013. Credit: Reuters/Joshua Roberts By Scott Malone BOSTON | Tue Apr 30, 2013 11:10pm EDT BOSTON (Reuters) - A Democratic Massachusetts lawmaker who has spent more than three decades in Congress will face off against a Republican who is a political novice and former Navy SEAL in the race to fill the state's open U.S. Senate seat. Primary voters on Tuesday picked Democrat Ed Markey and Republican Gabriel Gomez as their candidates in the June 25 special election, the second such race the state has seen in three years. A Gomez victory could help Republicans move toward their goal of retaking a majority in the Senate, where they currently have 45 seats. There are 53 Democrats and two independents. Markey was the first candidate to enter the race and polls showed him with a solid lead against all potential Republican opponents. Gomez's result was more of a surprise as a better-known rival, former U.S. Attorney Michael Sullivan, led in earlier polls. While Democratic candidates typically enjoy a strong advantage in liberal-leaning Massachusetts, Markey and his party still have vivid memories of the state's last special U.S. Senate election three years ago when Republican Scott Brown upset state Attorney General Martha Coakley. "Gomez's nomination adds an element of uncertainty," said Peter Ubertaccio, a professor of political science at Stonehill College in Easton, Massachusetts. "He's a newcomer who has pulled off a very interesting victory and has money, and that is going to add an element of unpredictability to the general election." THE BATTLE BEGINS The two nominees immediately turned their fire one another. Markey told a crowd of cheering supporters that if elected to the Senate he would continue to stand up for hot-button liberal issues including gun control and access to abortion, and sought to tie his rival to the national Republican Party. "The Republican Super PACs see this election as their first shot at stopping President (Barack) Obama's agenda," Markey said. "Mark my words, these outside special interests are going to march right into Massachusetts beginning tomorrow morning." Gomez, meanwhile, portrayed himself as more independent, saying he supported term limits for elected officials. "If you're looking for an independent voice, a new kind of Republican, take a look at our campaign," Gomez said. Turnout was light in an off-cycle election that came a little more than two weeks after a bombing attack at the Boston Marathon that caused all five candidates to pause their campaigns and knocked the election off the front pages of local papers. Markey was first elected to the House in 1976. He is ranking member of the chamber's Natural Resources Committee and outspoken on environmental issues. Born of Colombian immigrants, Gomez's first language was Spanish. He entered the military after graduating from the U.S. Naval Academy in Annapolis, Maryland, and became a pilot before entering SEAL training. After leaving the Navy in 1996, he went on to graduate from Harvard Business School and joined private equity firm Advent International. The seat became available when John Kerry became the U.S. Secretary of State. Democrat Kerry had served as U.S. Senator from Massachusetts since 1985. Markey bested fellow Democratic Representative Stephen Lynch, while Gomez faced State Representative Daniel Winslow, as well as Sullivan. Gomez drew criticism from his primary rivals for having written a letter to the state's Democratic Governor Deval Patrick, asking to be appointed to the seat on an interim basis. Patrick instead tapped his former chief of staff, William Cowan, who serves as interim senator and did not enter the race. The winner of the June vote will serve alongside the state's current senior Senator, Democrat Elizabeth Warren, who last year unseated Brown. (Reporting by Scott Malone; Editing by Grant McCool, Philip Barbara and Lisa Shumaker) Link this Share this Digg this Email Reprints

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Reuters: Politics: NYC mayoral hopeful's aides broke finance rules: prosecutors

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NYC mayoral hopeful's aides broke finance rules: prosecutors May 1st 2013, 01:26 New York City Comptroller and mayoral candidate John Liu speaks in support of a demonstration against the New York Police Department's ''stop and frisk'' crime-fighting tactic outside of Manhattan Federal Court in New York, March 18, 2013. Credit: Reuters/Lucas Jackson By Jonathan Allen NEW YORK | Tue Apr 30, 2013 9:26pm EDT NEW YORK (Reuters) - Closing arguments began on Tuesday in the fraud trial of two former fundraising associates of John Liu, a Democratic candidate in New York City's mayoral race, with prosecutors saying that he would have known the campaign routinely used illegal methods to solicit funds. Prosecutors told the jury that Jia Hou, the campaign's former treasurer, and Xing Wu Pan, a fundraiser for Liu, were following a "playbook" used frequently in Liu's campaign when they recruited straw donors, who are then illegally reimbursed for their donations. Hou and Pan have pleaded not guilty to charges that they broke campaign financing rules by using straw donors in an attempt to fraudulently get money from the city's donation-matching program. Liu, the city's comptroller, has not been charged with any crimes following the federal investigation of his campaign. His lawyer said on Tuesday he was never aware of any wrongdoing in his campaign. Liu ranks third in the large Democratic field seeking to succeed Mayor Michael Bloomberg, an independent serving his third and final term, according to an NBC New York-Marist poll conducted earlier this month. In 2011, Pan was secretly recorded several times by an undercover FBI agent who posed as a Texan restaurateur called Richard Kong, who said he was trying to secure a meeting with Liu to ask for help with opening a restaurant chain in the city. Pan arranged for the agent to donate $16,000 to Liu's campaign through 20 straw donors and organized a fundraising event at a restaurant to complete the transaction and meet with Liu, prosecutors say. The New York City Campaign Finance Board limits the amount an individual can donate to a campaign to $4,950, in part to try to prevent wealthy people from having an outsize influence in elections. Pan explained to the agent that Liu and his campaign staff would know he was the real source of the funds through "code words." "The code words are, ‘It's your event'," Justin Anderson, a prosecutor from the office of the U.S. attorney for New York's southern district, told the jury at Manhattan federal court. "Now what that's code for is, it's Richard's money." SECRET RECORDINGS In secret recordings replayed to the jury on Friday, Pan can be heard introducing the agent to Hou and Liu in that way shortly before the agent has a private meeting with Liu. "It would defeat the whole purpose of the straw donor scheme if the candidate didn't know where the money is coming from," Anderson told the jury. "That's the whole point of these people funneling large donations into a campaign - it's to get credit for it." Hou, as treasurer, also deliberately ignored signs that contributions were coming from straw donors and failed to fully report so-called intermediaries who helped collect donations to the campaign finance board, he said. "They simply followed the campaign playbook, they selected straw donors themselves who they thought could carry them over the goal line," Anderson said, saying their actions were part of "a corrupt scheme to undermine an election, conceal a source of campaign contributions, hide intermediaries and cheat the city out of the public's money." Pan's lawyers say their client was a victim of entrapment who only agreed to the straw donor scheme because of pressure from the undercover agent. Hou's lawyers have pointed to her youth and inexperience - she was 24 when she became treasurer - and said she always followed the advice of campaign lawyers in interpreting campaign financing rules. Paul Shechtman, a lawyer for Liu who testified earlier in the trial, criticized the prosecutors' approach of suggesting Liu knew of illegal methods in his campaign. "It's a sad day when a great office substitutes rhetoric for evidence," he said by telephone after the hearing. "There is not a shred of evidence at the trial or in the last three years that John Liu knew anything about any wrongdoing that might be connected to his campaign." Pan, of Hudson County in New Jersey, and Hou, of Queens County in New York, each face one count of conspiracy to commit wire fraud and one count of attempting to commit wire fraud. Each charge carries a maximum sentence of 20 years in prison. Hou has also been charged with obstruction of justice and making false statements. Defense lawyers for both defendants are due to make their closing arguments on Wednesday before the jury begins deliberating. (Editing by Scott Malone and Philip Barbara) Link this Share this Digg this Email Reprints

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Reuters: Politics: Obama to nominate Tom Wheeler as FCC chair: official

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Obama to nominate Tom Wheeler as FCC chair: official Apr 30th 2013, 20:47 U.S. President Barack Obama smiles before he speaks to the media in the Brady Press Briefing Room at the White House in Washington, April 30, 2013. Credit: Reuters/Larry Downing

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Reuters: Politics: Obama says too soon to declare demise of his domestic agenda

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Obama says too soon to declare demise of his domestic agenda Apr 30th 2013, 21:03 U.S. President Barack Obama is pictured as first lady Michelle Obama (not pictured) speaks during an event on finding employment for military veterans who have returned from service, in the East Room of the White House in Washington, April 30, 2013. Credit: Reuters/Jason Reed By Jeff Mason WASHINGTON | Tue Apr 30, 2013 5:03pm EDT WASHINGTON (Reuters) - With his fight for tighter gun control measures defeated and prospects for a deficit reduction pact dim, President Barack Obama sought on Tuesday to project an image of a leader still in control of a faltering domestic policy agenda. At a surprise news conference, Obama made the case that recent defeats did not mean he was a lame-duck leader, and said he was hopeful immigration reform would become law. "As Mark Twain said, you know, rumors of my demise may be a little exaggerated," the president told reporters at the White House when asked whether he had "the juice" to push his policy priorities through Congress. Obama started off his second term this year with energetic promises to tackle climate change, reduce gun violence, push immigration reform, and fix the budget. But so far, many of his initiatives have fallen flat. Modest changes to background checks for gun buyers failed in the U.S. Senate, and across-the board spending cuts known as "sequester" went into effect despite efforts by the Obama administration to stop them. The president noted on Tuesday that the United States had a divided government with Republicans controlling the House of Representatives and the Democratic-controlled Senate requiring 60 out of 100 votes to pass legislation. "Despite that, I'm actually confident that there are a range of things that we're going to be able to get done," he said. "I feel confident that the bipartisan work that's been done on immigration reform will result in a bill that passes the Senate, passes the House, and gets on my desk. And that's going to be a historic achievement." Both political parties have an incentive to pass immigration reform after Hispanic voters supported Obama overwhelmingly in the 2012 election. Obama praised a Senate version of the bill and said he would keep an open mind to a similar, perhaps more conservative, version in the House as long as it met the criteria of strengthening border security and creating a pathway for undocumented workers to become citizens. "If they meet those criteria, but they're slightly different than the Senate bill, then I think that we should be able to come up with an appropriate compromise," he said." "If it doesn't meet those criteria, then I will not support such a bill." LEGACY, BUDGET WOES Political observers generally say the president has roughly a year before focus in Washington turns to the 2014 mid-term elections, rendering him less able to dominate the agenda. Broad immigration reform this year would give Obama a policy victory that would help define his legacy. A major deal on the deficit is less likely. Obama said he would continue to reach out to lawmakers in the opposing party to work on an elusive deficit deal, but he did not indicate a great deal of optimism that a broad agreement was possible. "I've had some good conversations with Republican senators so far. Those conversations are continuing," he said, referring to recent dinners he has had that some have dubbed a charm offensive. "I think there's a genuine desire on many of their parts to move past not only sequester but Washington dysfunction. Whether we can get it done or not, we'll see." The president seemed to show some vindication over the recent uproar over the economic effects of the sequester cuts after taking criticism earlier this year for overselling how damaging they would be. "The notion was somehow that we had exaggerated the effects of the sequester - remember?" Obama said. "What we now know is what I warned earlier ... is happening. It's slowed our growth. It's resulting in people being thrown out of work. And it's hurting folks all across the country." (Reporting by Jeff Mason; Editing by David Brunnstrom) Link this Share this Digg this Email Reprints

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Reuters: Politics: Virginia governor says unaffected by reported FBI probe

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Virginia governor says unaffected by reported FBI probe Apr 30th 2013, 19:29 Virginia Governor Bob McDonnell speaks at the Conservative Political Action Conference (CPAC) during their annual meeting in Washington, February 19, 2010. Credit: Reuters/Joshua Roberts By Gary Robertson RICHMOND, Virginia | Tue Apr 30, 2013 3:29pm EDT RICHMOND, Virginia (Reuters) - Virginia Governor Bob McDonnell on Tuesday declined to confirm a newspaper report that the FBI was investigating his relationship with a political campaign donor but said that any probe would not affect his ability to govern the state. McDonnell, a Republican who has been mentioned as a possible 2016 presidential contender, told Washington's WTOP radio that "there is nothing going on that impairs my ability to serve the people of Virginia." The Washington Post on Tuesday reported that the Federal Bureau of Investigation was trying to determine whether McDonnell had taken any government actions that would have benefited the donor's company, Star Scientific Inc, a nutritional supplements maker in Henrico County, Virginia. The governor declined to say in the radio interview "whether there is or is not an investigation" by the FBI into his relationship with Jonnie Williams, the chief executive of Star Scientific. Williams and Star Scientific have given McDonnell and his political action committee more than $120,000 in publicly disclosed campaign contributions and gifts. McDonnell said that the donor had derived no "special benefits." McDonnell has acknowledged that he stayed at Williams' home near Roanoke, Virginia, and drove the executive's sports car, a Ferrari, back to Richmond. The governor has also said that Williams gave gifts to him and his family, including writing a check for $15,000 to pay for catering at his daughter's wedding in 2011. The governor said that the check represented a gift to his daughter and her fiance, and under Virginia law he did not need to report it on his annual disclosure form. The Washington Post report said McDonnell allowed Star Scientific to use the governor's mansion for a luncheon in 2011 to mark the launch of a Star Scientific product, Anatabloc. Williams and a spokesman for Star Scientific did not immediately respond to requests for comment. A spokesman for the Department of Justice in Washington, which has taken over press inquiries into the case from the U.S. Attorney's office in Richmond, declined to comment. The governor's office also did not respond to requests for comment. McDonnell was elected governor in 2009 and state law bars him from re-election. Speculation about a possible FBI probe was triggered on Monday when the governor's former chef, Todd Schneider, filed papers in Richmond Circuit Court seeking dismissal of embezzlement charges against him. Schneider contended in part that he was a whistleblower who had alerted federal and state authorities to wrongdoing in the governor's office. (Editing by Ian Simpson and Grant McCool) Link this Share this Digg this Email Reprints

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Reuters: Politics: Senate panel to probe Texas fertilizer plant explosion

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Senate panel to probe Texas fertilizer plant explosion Apr 30th 2013, 19:07 U.S. Senator Barbara Boxer (D-CA), chairman of the Senate Committee on Environment and Public Works, speaks during the nomination hearing for Gina McCarthy to be administrator of the Environmental Protection Agency (EPA), on Capitol Hill in Washington April 11, 2013. Credit: Reuters/Joshua Roberts

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Reuters: Politics: Kerry pledges to answer Benghazi questions, laments 'misinformation'

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Kerry pledges to answer Benghazi questions, laments 'misinformation' Apr 30th 2013, 18:49 U.S. Secretary of State John Kerry delivers a statement after a meeting with Afghan President Hamid Karzai and Pakistani Army Chief General Ashfaq Parvez Kayani in Brussels April 24, 2013. Credit: Reuters/Evan Vucci/Pool

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Reuters: Politics: Obama says economics, security to be themes in Mexico visit

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Obama says economics, security to be themes in Mexico visit Apr 30th 2013, 17:46 President Barack Obama waves after speaking in the Brady Press Briefing Room at the White House in Washington, April 30, 2013. Credit: Reuters/Larry Downing

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Reuters: Politics: Lawmakers urge SEC to bar forced Wall Street arbitration

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Lawmakers urge SEC to bar forced Wall Street arbitration Apr 30th 2013, 16:09 Traders work on the floor at the New York Stock Exchange, April 12, 2013. Credit: Reuters/Brendan McDermid By Sarah N. Lynch WASHINGTON | Tue Apr 30, 2013 12:09pm EDT WASHINGTON (Reuters) - A group of 37 federal lawmakers urged U.S. securities regulators to prohibit Wall Street brokers from forcing customers to sign away their legal right to sue. "If arbitration offers investors an efficient forum to resolve disputes, as some argue, investors may choose that option - but they should be given the choice," the lawmakers wrote in a letter to Securities and Exchange Commission Chair Mary Jo White on Tuesday. Brokerages typically require customers to sign pre-dispute arbitration agreements when opening their accounts. Under such agreements, disputes between a brokerage and a customer go to arbitration; customers are prohibited from suing in court. The agreements have also been widely used by other types of firms, including credit card companies, who say they help reduce legal costs and prevent frivolous litigation. Critics say the agreements erode customers' legal rights and often result in arbitration rulings against customers. The 2010 Dodd-Frank Wall Street reform law gives the SEC the authority to scale back or prohibit the use of arbitration agreements, but the agency has not exercised that power. State securities regulators went to Capitol Hill earlier this month to lobby on the issue and help gather signatures for the letter to White. The issue came into the spotlight recently after Charles Schwab Corp expanded the mandatory arbitration clauses in its customer contracts to include class action waivers. The Financial Industry Regulatory Authority tried to fight the Schwab move by filing a disciplinary action, saying the class action waiver violated its rules. But a hearing panel upheld Schwab's measure in February. FINRA is appealing the ruling to the National Adjudicatory Council, a FINRA appellate body that reviews disciplinary decisions. In the letter to White, the lawmakers said they were alarmed by the Schwab case and said it should be a catalyst for the SEC to act. "We are deeply concerned that the commission's failure to respond to the dangers posed by widespread forced arbitration will weaken existing investor protections," they wrote. "Given the uncertainty created by the recent FINRA decision, we urge the commission to act quickly to exercise its authority ... to prevent this practice and protect investor rights." The lawmakers signing the letter, all of them Democrats or Independents, were led by Democratic Senator Al Franken of Minnesota. Whether the letter will carry weight with the SEC remains to be seen. White was sworn in as SEC chair earlier this month and has not yet publicly discussed many of her policy views. Earlier this month, one SEC commissioner, Luis Aguilar, called for the SEC to take steps to scale back or limit the use of mandatory arbitration agreements. "We need to support investor choice," Aguilar, a Democrat, said in a speech before the North America Securities Administrators Association, a group of state regulators. Among the senators signing the letter to White were Massachusetts Democrat Elizabeth Warren and Ohio Democrat Sherrod Brown. Among the U.S. House members signing it were Democrat Ed Markey of Massachusetts and Democrats John Conyers, Jr. and Chris Van Hollen, both of Maryland. (Reporting by Sarah N. Lynch; editing by John Wallace) Link this Share this Digg this Email Reprints

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Reuters: Politics: Arms makers welcome dialogue with Pentagon as budget woes rise

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Arms makers welcome dialogue with Pentagon as budget woes rise Apr 30th 2013, 16:06 U.S. Defense Secretary Chuck Hagel speaks during a briefing on the Defense Department's FY2014 budget at the Pentagon in Washington April 10, 2013. Credit: Reuters/Kevin Lamarque

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Reuters: Politics: Obama says implementing health law harder as some states opt out

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Obama says implementing health law harder as some states opt out Apr 30th 2013, 15:58 U.S. President Barack Obama gestures while talking in the Brady Press Briefing Room at the White House in Washington, April 30, 2013. Credit: Reuters/Larry Downing

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Reuters: Politics: Obama vows new push to close Guantanamo detention camp

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Obama vows new push to close Guantanamo detention camp Apr 30th 2013, 15:35 U.S. President Barack Obama gestures while speaking in the Brady Press Briefing Room at the White House in Washington, April 30, 2013. Credit: Reuters/Larry Downing

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Reuters: Politics: Retired Justice O'Connor casts doubt on Bush v. Gore ruling

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Retired Justice O'Connor casts doubt on Bush v. Gore ruling Apr 30th 2013, 15:44 Former Supreme Court Justice Sandra Day O'Connor testifies at a hearing held to provide an update from the Alzheimer's Study Group on Capitol Hill in Washington March 25, 2009. Credit: Reuters/Kevin Lamarque

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Reuters: Politics: Obama: evidence chemical weapons used in Syria, questions remain

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Obama: evidence chemical weapons used in Syria, questions remain Apr 30th 2013, 15:25 U.S. President Barack Obama talks to the media in the Brady Press Briefing Room at the White House in Washington, April 30, 2013. Credit: Reuters/Larry Downing

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Reuters: Politics: Low Massachusetts voter turnout seen for Senate race after bombing

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Low Massachusetts voter turnout seen for Senate race after bombing Apr 30th 2013, 14:07 By Scott Malone BOSTON | Tue Apr 30, 2013 9:52am EDT BOSTON (Reuters) - Voters in Massachusetts on Tuesday go to the polls to pick the Democratic and Republican contenders for the state's open seat in the U.S. Senate, after campaigns that were briefly suspended by the Boston Marathon bombings. All five candidates, two Democrats and three Republicans, took several days off campaigning after the April 15 attacks, which killed three people and injured 264 others, but they roared back into a more spirited debate last week. "The terrorist attack really focused people's attention elsewhere," said Peter Ubertaccio, professor of political science at Stonehill College in Easton, Massachusetts. "We're looking at some very low turnout." About 10 percent fewer absentee ballots, which can be a barometer of interest, have been requested by voters in each party than in a special Senate election primary in 2009, according to Brian McNiff, a spokesman for Secretary of the Commonwealth William Galvin. The seat became available when President Barack Obama said in December that he planned to name John Kerry the U.S. Secretary of State. Democrat Kerry had served as U.S. Senator from Massachusetts since 1985. Democratic Representative Ed Markey, who was first to enter the race, leads in opinion polls both against his party rival and all three Republicans. On the Democratic side, Markey faces fellow U.S. Congressman Stephen Lynch. The Republican candidates are former U.S. Attorney Michael Sullivan, private equity executive and former Navy SEAL Gabriel Gomez and State Representative Daniel Winslow. The two party primary winners will contest a special election on June 25. Polls of Democratic voters in March and April showed Markey with a solid lead over Lynch. The Republican race has been more fluid, with Sullivan, one of the better-known candidates leading in a March poll by WBUR/MassInc Polling but the newcomer Gomez edging him out in an April poll by Western New England University. All three polls showed the Democratic candidates handily beating their Republican rivals in theoretical one-on-one general election matchups. REPUBLICAN SURPRISE? One result that could shake things up would be a win by Gomez, a newcomer to politics who would be likely to focus a general election campaign on unregistered voters and Democrats who were unimpressed with their candidate, Ubertaccio said. "We've proceeded along with the presumption that Sullivan is the front runner in the Republican party," said Ubertaccio, the Stonehill College political science professor. However, the memory of January 2010 when Republican Scott Brown defeated Democrat Martha Coakley in the special election, means Democrats will take any challenger seriously. The seat was made vacant by the death in August 2009 of Edward M. Kennedy of the Democratic Party who had served as U.S. Senator since 1962. "The Republican candidate, whoever it is, faces a huge uphill battle going into the general election," Ubertaccio said. "Either Markey or Lynch, and more importantly the Democratic party are not going to be caught snoozing for a second special election." SECURITY FOCUS After maintaining a cordial detente for much of their campaign, Lynch last week turned up the heat on front runner Markey, criticizing his record on security. Lynch noted in a debate in Springfield that his party rival had voted against the joint terrorism task force, the investigative team lead by the Federal Bureau of Investigation that ran the marathon bombing probe and caught two suspects. Markey, meanwhile, has pushed back on Lynch's record on social issues, including his vote against the 2010 U.S. health care reform law that Lynch argued was flawed. Among the Republicans, Sullivan has sought to play up his record on security -- he helped prosecute shoe bomber Richard Reid, who is serving a life sentence for trying to blow up a plane over the Atlantic in December 2001. Gomez, the son of Colombian immigrants whose first language was Spanish, has campaigned on his outsider status. This is his first run for office, though he drew criticism from rivals for asking Massachusetts Governor Deval Patrick, a Democrat, to appoint him to the job on an interim basis. Winslow, who had also served in the administration of former Massachusetts Governor Mitt Romney, has cast himself as a legislator with practical experience. (Reporting by Scott Malone; Editing by Grant McCool) Link this Share this Digg this Email Reprints

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Reuters: Politics: N.Y. Governor Andrew Cuomo signs deal for 2014 book

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N.Y. Governor Andrew Cuomo signs deal for 2014 book Apr 30th 2013, 14:14 New York Governor Andrew Cuomo speaks during a swearing-in ceremony in the War Room of the Capitol in Albany, New York January 1, 2011. Credit: Reuters/Mike Groll

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Reuters: Politics: Saudi-U.S. relations to withstand North American oil boom

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Saudi-U.S. relations to withstand North American oil boom Apr 30th 2013, 05:04 Saudi Arabian Oil Minister Ali al-Naimi listens to journalist during an OPEC meeting in Vienna December 12, 2012. Credit: Reuters/Heinz-Peter Bader By Timothy Gardner WASHINGTON | Tue Apr 30, 2013 1:04am EDT WASHINGTON (Reuters) - Experts say Asia and Iran are the keys to maintaining a strong - but evolving - U.S.-Saudi Arabia energy relationship. Saudi Oil Minister Ali al-Naimi is expected to share his optimistic view on the future of Asian oil demand on Tuesday when he gives a major energy speech, billed as the first in the United States in four years. As the United States produces oil at the highest levels in 20 years thanks to the shale boom, Saudi Arabia's confidence in Asian markets could help keep relations between the two countries on track. "The Saudis don't see the North American oil boom as a threat, not in the context of the global oil market," said a Washington-based energy consultant to governments and businesses, who did not want to be named. Naimi said in a speech early this month in Doha that nobody should fear new oil supplies when global demand is rising, adding that Asia's population growth should be a driver for future oil demand. He is expected to repeat that message during his speech at the Center for Strategic and International Studies in Washington on Tuesday. Saudi Arabia, the main source of global spare oil production capacity, will be one of the few places with the ability to supply China and other Asian countries. In contrast, extra barrels from North Dakota and Texas will be consumed in the United States, at least until laws are changed to allow the country's producers to export substantial amounts of crude. SPECIAL RELATIONSHIP The relationship between Riyadh and Washington may be changing but the two countries still share important goals on balancing oil markets going forward. One is to keep oil prices from going too high in order to keep Iran from in check. The United States is trying to choke funds to Tehran's disputed nuclear program through the application of sanctions on its oil sales. High global crude prices could hurt that effort. Saudi Arabia, a longtime foe of Iran, also does not want Iran to get nuclear weapons and is expected to keep oil prices stable. "We are still partners but less intimate partners than we once were," said Chas Freeman, who served as U.S. ambassador to Saudi Arabia under former President George H. W. Bush. For decades Saudi Arabia and the United States had a special relationship: the kingdom provided the United States oil, and the United States provided Saudi Arabia protection against enemies. As Saudi Arabia becomes less of an important supplier to the United States, the world's biggest oil consumer, some see that special relationship declining. Even as Saudi looks to other markets, it still is the second largest oil exporter to the United States after Canada, with shipments averaging 1.4 million barrels per day in the first 10 months of last year. As part of the changing relationship, Saudi has been buying tens of billions of dollars worth of U.S. military aircraft while turning to other oil customers. "Saudi seems to be arming themselves on the assumption that they are going to have to play a larger role in their own defense," Freeman said. Analysts will be watching for clues in Naimi's speech that in the face of weak demand from Europe and flat Asian near-term consumption, the kingdom may want to support oil prices from falling. David Goldwyn, who led international energy affairs at both the State Department and the Department of Energy, said if Naimi's lead message is the need to keep oil prices stable, it could signal a production cut is likely in the near future. (Reporting by Timothy Gardner; Editing by Bill Trott) Link this Share this Digg this Email Reprints

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Reuters: Politics: Sanford deflects talk of affair in South Carolina debate

Reuters: Politics Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

Sanford deflects talk of affair in South Carolina debate Apr 30th 2013, 04:21 Former South Carolina Governor Mark Sanford makes a point during the debate with Democrat Elizabeth Colbert Busch for the South Carolina 1st Congressional district in Charleston, South Carolina April 29, 2013. Credit: Reuters/Randall Hill By Harriet McLeod CHARLESTON, South Carolina | Tue Apr 30, 2013 12:21am EDT CHARLESTON, South Carolina (Reuters) - Former Governor Mark Sanford deflected criticism of an extramarital affair leveled in a debate on Monday by his opponent for a South Carolina congressional seat, political newcomer Elizabeth Colbert Busch. Sanford, a Republican, is hoping to revive his political career after he famously disappeared from the state in 2009 while he was governor to visit his mistress in Argentina, telling aides that he was hiking the Appalachian Trail. Colbert Busch, the sister of television comedian and political satirist Stephen Colbert, is a Democratic businesswoman making her first run for public office. The election to fill the seat left vacant when Republican congressman Tim Scott was appointed to the Senate will be held on May 7. Sanford formerly held the congressional seat between 1995 and 2001. In addition to the affair, he has been hurt by accusations by his ex-wife, Jenny Sanford, that he trespassed on her property. "Some in the national media seem to think it's a race between Jenny Sanford and Stephen Colbert," moderator John Avlon said in opening the debate. For the most part, the candidates sought to prove otherwise. While they spent much of the debate carving out their differences on federal spending and immigration, the debate's most peculiar moment came when Colbert Busch raised the Appalachian Trail incident but failed to get a reaction out of Sanford, who said he had not heard the jab. "When we talk about fiscal spending and we talk about protecting the taxpayers, it doesn't mean you take that money we saved and leave the country for a personal purpose," Colbert Busch said. Amid boos and laughter from the audience, Sanford said: "I couldn't hear what she said." "Repeat it, I didn't hear it, I'm sorry," he said. COLBERT BUSCH LEADS POLL A Public Policy Polling survey released earlier this month found Colbert Busch leading among likely voters 50 percent to Sanford's 41 percent. The poll followed the revelation that Sanford's ex-wife had accused him in court documents of trespassing at her home, and the National Republican Congressional Committee's announcement it would no longer take part in Sanford's campaign. Sanford said he had gone to his ex-wife's house in February while she was out of town to watch the Super Bowl with one of their sons and that he had been unable to reach her to ask for the permission required under their divorce settlement. For much of the debate, Sanford sought to remind voters of his conservative credentials, while Colbert Busch sought to dismiss Sanford's claim that, if elected, she would do the bidding of labor unions and her liberal supporters in Congress. "I want to be very clear, Mark," Colbert Busch said. "Nobody tells me what to do. I am a fiscally conservative, independent tough businesswoman. Let's talk about reaching across the aisles and being practical." Colbert Busch, business development director of Clemson University's Restoration Institute, said that, if elected, she would cut her own salary by $10,000. Sanford touted his record of fiscal conservatism in three terms in Congress and two terms as governor. "I would look back on my time in Congress as a short patch in Washington when budgets were actually balanced. I was against earmarks before being against earmarks was cool," he said. On immigration reform, Sanford argued for a more robust guest worker program and an extended "low-tech fence." Colbert Busch said she supports legislation in the U.S. Senate that offers a "tough and fair" path to citizenship for illegal immigrants. While Colbert Busch's famous brother did not come up, Sanford did get one other opportunity to address the scandal that derailed his political career. Asked if he regretted voting for President Bill Clinton's impeachment in 1998, after Clinton admitted to an affair, Sanford responded by saying he would reframe the question. "Do you think that President Clinton should be condemned for a mistake he made in his life for the rest of his life?" Sanford said. (Reporting by Harriet McLeod; Editing by Edith Honan and Eric Beech) Link this Share this Digg this Email Reprints

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