Morning Bulletin – Thursday, April 2, 2009
A roundup of news, schedules, and key stories from CBS News Political Director Steve Chaggaris:
This morning, Mr. Obama "and his South Korean counterpart agreed Thursday on the need for a 'stern, united' international response if North Korea goes ahead with a planned rocket launch, as Obama juggled that intensifying crisis thousands of miles away and a global effort to fix the sagging economy," reports the Associated Press' Mark S. Smith.
"North Korea says it will send a communications satellite into orbit on a multistage rocket sometime from Saturday to Wednesday, but the U.S., South Korea and Japan call the plan a cover for testing long-range missile technology and a potential violation of a U.N. Security Council resolution banning ballistic activity by North Korea. Obama told Chinese President Hu Jintao on Wednesday that the U.S. would consider the launch provocative and that the U.S. would seek punishment at the United Nations in response."
"Opening the main plenary session of the meeting the prime minister hopes will contribute to the reshaping of capitalism and the revival of the stalled global economy, Brown said there was a significant element of agreement on the text of a final communique. 'I believe that the text that has been circulated already reflects a very high degree of consensus and agreement between all of us,' he said.
"After a display of last-minute brinkmanship yesterday by France and Germany, who are demanding tougher action on financial regulation, world leaders have just a few hours to finalise an agreement that has been in preparation for months. Stephen Timms, the financial secretary to the Treasury, told reporters at the ExCel centre in London's eastern Docklands that finance ministers had discussed over breakfast the creation of a list of tax havens that refused to comply with international standards on transparency and information exchange – a key Franco-German demand.
"He said there was agreement that such countries needed to be named and shamed, but debate continued around the timing of the publication of the list. Timms said there was a lively debate at the summit, but he was optimistic about the outcome."
Yesterday, Mr. Obama sat down with Chinese President Hu Jintao and Russian President Dmitry Medvedev and accepted invitations to visit both countries later this year; Russia in July and China TBD. He also spent time with British Prime Minister Gordon Brown and Queen Elizabeth II.
"President Obama talked dinosaurs with Prime Minister Gordon Brown's young sons, nuclear weapons with the Russian president, trade with the Chinese president and squeezed in a visit to Buckingham Palace, where he gave Queen Elizabeth II that most American of gifts, an iPod," writes the Washington Post's Kevin Sullivan.
"The first full day of Obama's first trip as president outside North America was a whirl of high-minded, high-stakes diplomacy and an old-fashioned charm offensive."
"Despite intense secrecy, word still got out that Michelle Obama would be touring a cancer center Wednesday, drawing an instant crowd. It's been a long time since an American first lady was greeted so enthusiastically in London. 'She just looks like a very charming, sophisticated woman and she will represent America well,' said one British woman.
"While the first lady was asked if she would have tea, it turn out the burning question on the minds of British women was why Michelle Obama ever carries a handbag, according to CBS News correspondent Sheila MacVicar."
MacVicar's "CBS Evening News" story:
PRESIDENT'S SCHEDULE: In addition to G20 related events today, Mr. Obama will meet separately with Saudi and Indian leaders. At 12:45 pm ET, he'll hold a news conference. Tomorrow, he heads to Strasbourg, France for the NATO summit. First Lady Michelle Obama visits the Royal Opera House and a girls' school today.
BUDGET: "House Republicans on Wednesday offered a budget vision sharply at odds with the Democratic proposal, calling for sweeping tax cuts, major changes in Medicare and a suspension of the economic stimulus program," reports the New York Times' Carl Hulse.
4910801"The Republican plan, introduced after days of ridicule from Democrats about the absence of an alternative to President Obama's proposal, would also freeze most domestic spending for five years, increase Pentagon spending, permanently extend the Bush-era tax breaks and eliminate any taxes on successful investments in 2010 as a way to spur the economy. Republicans said they would spend $4.8 trillion less than Democrats over 10 years. ...
"The Republican budget has no chance of passing as Democratic majorities in the House and Senate press for approval of their own $3.5 trillion spending plans by the end of the week. But House Republicans, breaking with Senate Republican leaders, calculated that offering their alternative could bolster their credibility and quell criticism that they had become the 'Party of No.' A group of Senate Republicans led by Senator John McCain of Arizona proposed its own budget alternative that would freeze federal spending except for military and veterans programs. After goading Republicans into coming up with a budget, Democrats immediately described it as badly flawed, saying it contained draconian cuts that Americans — and even some Republican lawmakers — would not support. They said it marked a return to the same style of tax-cutting economics that contributed to the current financial crisis and noted wryly that it was unveiled on April 1."
"Rep. Paul Ryan (R-Wis.), the senior Republican on the House Budget Committee, said the plan would stabilize the rising national debt by requiring the nation to borrow about $6 trillion over the next 10 years, $3.3 trillion less than would be required under the budget request submitted by President Obama," adds the Washington Post's Lori Montgomery.
"Annual deficits also would be slightly lower than under the revised budget plans that emerged last week from the House and Senate budget committees. The revised Democratic proposals would require the nation to borrow about $4 trillion over the next five years, compared with $3.1 trillion in new borrowing under the GOP alternative. Still, the national debt would continue to climb under the GOP plan, topping out at around 75 percent of the economy, Ryan said -- an improvement over Obama's proposal but a good deal higher than the 40 percent debt the nation was running before the recession began. The proposal comes as the House and Senate debate Obama's $3.5 trillion spending plan for the fiscal year that begins in October. Leaders in both chambers expect the Obama plan to pass easily when final votes are held by the end of the week."
AFGHANISTAN: "President Barack Obama is weighing whether to deploy 10,000 more troops to Afghanistan but lawmakers on both sides of the aisle are questioning an increased commitment and seeking specific measures of progress against the deteriorating conditions in Afghanistan and Pakistan," reports the Wall Street Journal's Yochi J. Dreazen.
"When President Obama took office, the U.S. had about 38,000 troops in Afghanistan. The White House has announced plans to send 21,000 reinforcements in coming months, increasing the tally to almost 60,000. Mr. Obama will decide this fall whether to order 10,000 more troops to Afghanistan next year, senior Pentagon officials told a Senate panel Wednesday, bringing the total to almost 70,000."
MINNESOTA SENATE RECOUNT: "The Minnesota Senate race is headed for a decision, as is Norm Coleman. Tuesday's ruling by a three-judge panel that limits its election review to about 400 additional ballots is provoking a fresh debate among political analysts and leaders in both parties: How should the Minnesota Republican, now down 225 votes, weigh the likelihood of prevailing on appeal against the potential political costs of dragging out the contest against Democrat Al Franken?" writes the Minneapolis Star Tribune's Kevin Diaz.
"On Wednesday, the court's decision did not seem to be tempering Coleman's plans. His own lawyers say he is likely to lose his current bid before the panel, and Coleman promised a national radio audience Wednesday that he will move quickly to appeal if necessary. 'You have to file in 10 days,' he told Fox News Radio. 'We're going to file quicker than 10 days, I can assure you.' He said that if all the votes are counted, he will win. Coleman's GOP allies in Congress, meanwhile, are urging patience."
"The legal fight between Al Franken and Norm Coleman is headed to the desk of Gov. Tim Pawlenty — a no-win predicament for a Minnesota Republican with his eye on a White House run in 2012," adds Politico's Manu Raju.
ALSO TODAY: Health and Human Services Secretary Nominee Kathleen Sebelius has a second confirmation hearing, this time in front of the Senate Finance Committee at 10am ET. Expect the issue of her $8,000 in back taxes to be raised.
Former AIG CEO Maurice Greenberg testifies in front of the House Oversight and Government Reform Committee at 10am ET.
PRESIDENT'S FOREIGN TRIP
LA Times' Christi Parsons and Henry Chu, "G-20 leaders dine in London, across a great divide"
Washington Post's Michael D. Shear and Scott Wilson, "Obama, Medvedev Pledge Cooperation"
NY Daily News' Richard Sisk, "President Obama, First Lady Michelle Obama meet Queen Elizabeth II at Buckingham Palace"
FINANCIAL INDUSTRY BAILOUT
Katie Couric's interview with Treasury Secretary Tim Geithner:
NY Times' David Sanger and Mark Landler, "Conceding U.S. Lapses, Obama Resists New Bank Rules"
LA Times' Ralph Vartabedian and Tom Hamburger, "AIG targeted by shareholder lawsuit"
Politico's Victoria McGrane, "House takes another whack at AIG"
FOREIGN POLICY
NY Times' Elisabeth Bumiller, "Petraeus Warns About Militants' Threat to Pakistan"
LA Times' Karen DeYoung, "Lugar Urges Obama to Open Talks With Cuba, Ease Restrictions"
FORMER SEN. TED STEVENS
CBS News' Bob Orr, "Huge Win For Ted Stevens"
Washington Post's Paul Kane, "Ex-Senator's Friends Say His Victory Is Bittersweet"
HEALTH CARE
NY Times' Jim Rutenberg, "Health Critic Brings a Past and a Wallet"
OBAMA ADMINISTRATION
Reuters' Donna Smith, "Senate likely to back Sebelius for U.S. health chief"
NY Times' Eric Licthblau, "After Attacks, Supporters Rally Around Choice for Top Administration Legal Job"
Wall Street Journal's Karl Rove, "The President Is 'Keeping Score'"
NY-20 SPECIAL ELECTION
Albany Times Union's Jennifer A. Dlouhy, "Divining signs of victory in race"
The Hill's Reid Wilson and Aaron Blake, "If it's Coleman vs. Franken II, GOP ready in N.Y.-20"
CBSNews.com's Political Hotsheet, "Winner Weeks Away In New York Congressional Race"
FUTURE RACES
Associated Press' Ben Evans, "Democratic leader tempers expectations for 2010"
The Hill's Aaron Blake, "Preventing 60: Hope for Republicans may be two elections away"
2009 NY Mayor: NY Post's David Seifman, "GOP Boss Coy on Bloomberg"
2010 FL Senate: South Florida Times' Renee Michelle Harris, "Meek Raises $1.5 Million in First Quarter"
2010 PA Senate: Meadville Tribune's Pat Bywater, "Specter foe to decry stimulus in downtown protest"
2012 Presidential: Wall Street Journal's Alex Roth and Valerie Bauerlein, "Stimulus Stance Isolates Sanford"
2012 Presidential: Politico's Alex Eisenstadt, "Romney sounds like candidate at event"
ETC.
Boston Globe's Maria Sacchetti, "Obama's aunt granted 10-month extension to fight deportation"
Associated Press, "Todd Palin: $150K on clothes 'out of our control'"