Deficit hits 5-year low, but cuts drag economy









WASHINGTON -- The federal deficit will drop to less than $1 trillion for the first time in five years, but massive spending cuts that have improved the budget outlook are also slowing the economy, according to a report released Tuesday by the Congressional Budget office.


The nonpartisan arbiter of federal budgets said the combination of new tax revenue from the "fiscal cliff" deal as well as looming cuts that kick in March 1 will push the deficit down to $845 billion for fiscal 2013. Deficits have topped $1 trillion in recent years.


The projections will fuel the coming budget debates, which started Tuesday as President Obama was calling on Congress to steer around the coming budget cuts.





The budget office said the cuts will contribute to an economy that lags in 2013. The unemployment rate likely will remain above 7.5% through the year. It predicted that the gross domestic product will be well below its potential, growing by just 1.4%, more than half a percentage point slower than would happen if the spending cuts were averted.


At the same time, the nation's debt load is expected to fluctuate but ultimately rise to record levels this decade, largely because of increased spending on healthcare and the federal safety net for older Americans with the aging of the baby boom population.


Additionally, the outlook shows how difficult it will be for House Republicans to accomplish their goal of balancing the budget in 10 years with potentially deep austerity measures.


Even though revenue is rising and spending is decreasing, the overall budget outlook remains stark. By the end of the decade, public debt is set to rise to 77% of GDP, a decade of highs on par with debt levels in World War II.


"The projected path of the federal budget remains a significant concern," the CBO wrote.


Follow Politics Now on Twitter and Facebook


Lisa.mascaro@latimes.com


Twitter: @LisaMascaroinDC





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Super Bowl ratings down from a year ago









NEW ORLEANS—





Sunday's close Super Bowl contest between the Baltimore Ravens and the San Francisco 49ers failed to beat last year's game in total viewers, CBS Corp said on Monday.


An average of 108.41 million viewers tuned in, compared with 111.3 million a year ago when the New York Giants defeated the New England Patriots on NBC. CBS said it was the third-most-watched program in television history, behind last year's Super Bowl and 2011's match-up between thePittsburgh Steelers and the Green Bay Packers, which garnered 111 million viewers.








CBS did not immediately respond to a request for comment on whether a 35-minute partial electrical blackout in the third quarter of the game affected ratings. Advertisers paid $4 million on average for a 30-second spot during the game.


Late Sunday, CBS said in a statement that "all commercial commitments during the broadcast are being honored."


 Commissioner Roger Goodell told reporters on Monday an investigation was under way to determine the cause of the disruption. He said there was no indication that Beyonce's halftime show had anything to do with the outage.


CBS said earlier on Monday that the telecast earned an average overnight household rating of 48.1 in Nielsen's metered markets, up 1 percent compared with last year's Super Bowl. CBS said the rating excludes the blackout, which occurred just after the start of the second half, between 8:45 p.m. and 9:15 p.m. Nielsen's "metered markets" represent the top 56 U.S. TV markets.


The highest-rated period during Sunday's Super Bowl occurred from 10:30 p.m. to 10:47 p.m., when the game came down to the wire and the Ravens were able to hold off a furious second-half comeback by the 49ers to win 34-31. CBS said that over those 17 minutes, an average of 113.92 million viewers were tuned in.


The Super Bowl, which determines the NFL champion for the 2012 season, is broadcast live in more than 180 countries and in more than 30 different languages. The commercials during the game regularly net a record amount of ad revenue for the network that broadcasts the game in a given year.


Analysts said stand-out commercials included Chrysler's Jeep ad featuring a patriotic salute to U.S. troops and narration by Oprah Winfrey, an Oreo ad asking viewers to vote cookie or creme, and a scantily clad male Calvin Klein model.


Bluefin labs, a firm that tracks social media activity, said viewers produced 30.6 million social media comments, up from 12.5 million last year. The most talked about ad on social media was the Dodge Ram Trucks "Farmer" commercial, followed by Taco Bell's "Viva Young" spot featuring senior citizens behaving badly, Bluefin said.


The Super Bowl also gives the network that airs it an unprecedented promotional platform for its other programming, with the time slot immediately after the game among the most coveted in television. This year CBS chose to showcase its new crime drama "Elementary," a post-modern take on "Sherlock Holmes," in that time slot.


Just under 21 million viewers stuck around after the game to watch "Elementary," making it the lowest-rated post Super Bowl show in 10 years. Part of the blame for the weak rating can be cast on the game's 35-minutes blackout, which pushed "Elementary's" start time to after 11 p.m. on the East Coast.


Last year, NBC's "The Voice" scored 37.6 million viewers in the post-Super Bowl slot. ABC's airing of "Alias" in 2003 garnered only 17.3 million viewers.


"Elementary" averages around 10 million viewers during its normal airings.





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Dell closer to buyout as price talks narrow: source


NEW YORK (Reuters) - Dell Inc moved closer to a nearly $24 billion buyout deal, with price negotiations narrowing to $13.50 to $13.75 a share in what would be the biggest leveraged buyout since the financial crisis.


Talks between Dell, the world's No. 3 computer maker, and a consortium led by its founder and chief executive, Michael Dell, to take the company private were in the final stages on Monday, a person familiar with the matter said.


An outcome is expected soon, the person said, cautioning that no final agreement had been reached and negotiations could still break down.


Dell shares fell 2.6 percent to $13.27 in afternoon trading.


Microsoft Corp, which provides its Windows software for Dell computers and is also part of the investment consortium, is expected to invest around $2 billion in the deal, while private equity firm Silver Lake is expected to put in about $1 billion, the source said.


Michael Dell is expected to roll over his roughly 16 percent stake and put in some of his own money so he has control of the company, the source added.


Dell and Silver Lake declined to comment and Microsoft did not immediately respond to a request for a comment.


The $13.50 to $13.75 per share price range being negotiated translates into an equity valuation for Dell of between $23.5 billion to $23.9 billion.


The $13.75 per share is a premium of about 23 percent to the average of $11 per share Dell traded before news of the deal talks broke and is far below the $17.61 that the shares were trading a year ago."


Dell has steadily ceded market share in PCs to nimbler rivals such as Lenovo Group and is struggling to re-ignite growth. That's in spite of Michael Dell's efforts in the five years since he retook the helm of the company he founded in 1984, following a brief hiatus during which its fortunes waned rapidly.


Any deal that Michael Dell negotiates would need the approval of a majority of the shareholders. Deals that involve the considerable stake of a founder who is also the chief executive of the company are also likely to come in for extra scrutiny over whether the board exercised its fiduciary duty.


Dell has formed a special committee to take a close look at any potential deals on the table, multiple sources with knowledge of the matter told Reuters earlier.


(Reporting by Greg Roumeliotis in New York; Additional reporting by Poornima Gupta; editing by Carol Bishopric and Kenneth Barry)



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Cause of Super Bowl power outage remains unclear


NEW ORLEANS (AP) — Who turned out the lights?


The day after the 34-minute blackout at the Super Bowl, the exact cause — and who's to blame — were unclear, though a couple of potential culprits had been ruled out.


It wasn't Beyonce's electrifying halftime performance, according to Doug Thornton, manager of the state-owned Superdome, since the singer had her own generator. And it apparently wasn't a case of too much demand for power. Meters showed the 76,000-seat stadium was drawing no more electricity than it does during a typical New Orleans Saints game, Thornton said.


The lights-out game Sunday proved an embarrassment for the Big Easy just when it was hoping to show the rest of the world how far it has come since Hurricane Katrina in 2005. But many fans and residents were forgiving, and officials expressed confidence that the episode wouldn't hurt the city's hopes of hosting the championship again.


To New Orleans' great relief, NFL Commissioner Roger Goodell said the city did a "terrific" job hosting its first pro football championship in the post-Katrina era, and added: "I fully expect that we will be back here for Super Bowls."


Fans watching from their living rooms weren't deterred, either. An estimated 108.4 million people saw the Baltimore Ravens beat the San Francisco 49ers 34-31, making it the third most-viewed program in television history. Both the 2010 and 2011 games hit the 111 million mark.


The problem that caused the outage was believed to have happened around the spot where a line that feeds current from the local power company, Entergy New Orleans, connects with the Superdome's electrical system, officials said. But whether the fault lay with the utility or with the Superdome was not clear.


Determining the cause will probably take days, according to Dennis Dawsey, a vice president for distribution and transmission for Entergy. He said the makers of some of the switching gear have been brought in to help figure out what happened.


An attorney for the state board that oversees the Superdome said the blackout did not appear to be related to the replacement in December of electrical equipment connecting the stadium to Entergy. Officials with the utility and the Superdome noted that an NFL game, the Sugar Bowl and another bowl game were played there in recent weeks with no apparent problems.


The blackout came after a nearly flawless week of activity for football fans in New Orleans leading up to the big game.


"I hope that's not what they'll remember about this Super Bowl," French Quarter artist Gloria Wallis said. "I hope that what they'll remember is they had a great time here and that they were welcomed here."


Ravens fan Antonio Prezioso, a Baltimore native who went to the game with his 11-year-old son, said the outage just extended the experience.


"The more time we could spend at the game was a good thing, as long as it ended the way it did," he said, laughing.


The city last hosted the Super Bowl in 2002, and officials were hoping this would serve as the ultimate showcase for the city's recovery. The storm tore holes in the roof of the Superdome and caused water damage to its electrical systems, and more than $330 million was spent repairing and upgrading the stadium.


Sunday's Super Bowl was New Orleans' 10th as host, and officials plan to make a bid for an 11th in 2018.


Mayor Mitch Landrieu told WWL-AM on Monday that the outage won't hurt the city's chances, and he joked that the game got better after the blackout: "People were leaving and the game was getting boring, so we had to do a little something to spice it up."


Jarvis DeBerry, a columnist for nola.com and The Times-Picayune, wrote that the power outage gave the media "an opportunity to laugh at the apparent ineptitude or suggest that the ghosts of Hurricane Katrina were haunting the Superdome."


"That's not the kind of attention the city was looking for, obviously," he wrote, "but it's certainly too soon to say if people will remember the power shortage over San Francisco's furious comeback attempt against Baltimore or if this will harm the city's future opportunities to host the Super Bowl."


Bjorn Hanson, dean of New York University's Center for Hospitality and Sports Management, said the episode shouldn't hurt the city's reputation as a big convention destination. "I think people view it for what it was: an unusual event with a near-record power draw," he said. "It was the equivalent of a circuit breaker flipping."


The American Association of Neurological Surgeons will meet in New Orleans from April 27 to May 1. Patty Anderson, director of meetings for the group, said of the blackout: "I never even gave it a second thought. To me, the city is bigger, stronger and more vibrant than it's ever been."


___


Associated Press writers Beth Harpaz, Brett Martel, Stacey Plaisance and Barry Wilner contributed to this report.


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NFL says no indication Beyonce show caused Super Bowl outage






NEW ORLEANS (Reuters) – The National Football League was still working with New Orleans officials on Monday to determine what caused the power outage at Sunday’s Super Bowl at the Superdome, so far dismissing any connection with the Beyonce halftime show.


With a record U.S. television audience watching along with viewers in 180 countries, about half the stadium lights went dark early in the second half of the game, in which the Baltimore Ravens defeated the San Francisco 49ers, 34-31.






NFL commissioner Roger Goodell told reporters on Monday an investigation was under way to determine the cause of the 35-minute disruption but one possible explanation had already been eliminated.


“There’s no indication at all that this was caused by the halftime show,” Goodell said. “I know that’s out there, that Beyonce’s halftime show had something to do with it. That is not the case from anything we have at this point.”


Entergy Corp, the utility providing power to the Superdome, said its distribution and transmission feeders were serving the Superdome at all times.


Early indications were that the outage resulted from an abnormality in the Superdome’s power system but it was too early to speculate on what went wrong, said Doug Thornton, senior vice president of the Superdome’s management company, SMG.


A piece of equipment designed to monitor electrical load sensed an abnormality in the system where the Superdome equipment intersects with Entergy’s feed into the building, triggering an automatic cut in power, SMG and Entergy said in a joint statement.


There was never any concern the power could not be restored, but it took time because of the size of the stadium and the complexities of the power system, Thornton said.


“We had people in place that could quickly work to restore power. We had experts on site, as we normally do when we have big events like this, our electrician, our electrical consultants were there and we were able to quickly work on that,” Thornton said.


“There were no injuries, people remained calm, we had a pre-programmed announcement that was actually played. These are things that we actually drilled for.”


None of the players or coaches said the stoppage had any impact on the game, and Goodell said the power problem would not adversely affect future bids by New Orleans to stage the Super Bowl, the United States’ most-watched sports event.


“I fully expect that we will be back here for Super Bowls,” Goodell said. “I hope we will be back. We want to be back … I don’t think this will have any impact at all on what I think will be remembered for one of the greatest Super Bowl weeks.”


(Editing by Daniel Trotta and Dale Hudson)


Music News Headlines – Yahoo! News





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Bullying study: It does get better for gay teens


CHICAGO (AP) — It really does get better for gay and bisexual teens when it comes to being bullied, although young gay men have it worse than their lesbian peers, according to the first long-term scientific evidence on how the problem changes over time.


The seven-year study involved more than 4,000 teens in England who were questioned yearly through 2010, until they were 19 and 20 years old. At the start, just over half of the 187 gay, lesbian and bisexual teens said they had been bullied; by 2010 that dropped to 9 percent of gay and bisexual boys and 6 percent of lesbian and bisexual girls.


The researchers said the same results likely would be found in the United States.


In both countries, a "sea change" in cultural acceptance of gays and growing intolerance for bullying occurred during the study years, which partly explains the results, said study co-author Ian Rivers, a psychologist and professor of human development at Brunel University in London.


That includes a government mandate in England that schools work to prevent bullying, and changes in the United States permitting same-sex marriage in several states.


In 2010, syndicated columnist Dan Savage launched the "It Gets Better" video project to encourage bullied gay teens. It was prompted by widely publicized suicides of young gays, and includes videos from politicians and celebrities.


"Bullying tends to decline with age regardless of sexual orientation and gender," and the study confirms that, said co-author Joseph Robinson, a researcher and assistant professor of educational psychology at the University of Illinois in Urbana-Champaign. "In absolute terms, this would suggest that yes, it gets better."


The study appears online Monday in the journal Pediatrics.


Eliza Byard, executive director of the Gay, Lesbian & Straight Education Network, said the results mirror surveys by her anti-bullying advocacy group that show bullying is more common in U.S. middle schools than in high schools.


But the researchers said their results show the situation is more nuanced for young gay men.


In the first years of the study, gay boys and girls were almost twice as likely to be bullied as their straight peers. By the last year, bullying dropped overall and was at about the same level for lesbians and straight girls. But the difference between men got worse by ages 19 and 20, with gay young men almost four times more likely than their straight peers to be bullied.


The mixed results for young gay men may reflect the fact that masculine tendencies in girls and women are more culturally acceptable than femininity in boys and men, Robinson said.


Savage, who was not involved in the study, agreed.


"A lot of the disgust that people feel when you bring up homosexuality ... centers around gay male sexuality," Savage said. "There's more of a comfort level" around gay women, he said.


Kendall Johnson, 21, a junior theater major at the University of Illinois, said he was bullied for being gay in high school, mostly when he brought boyfriends to school dances or football games.


"One year at prom, I had a guy tell us that we were disgusting and he didn't want to see us dancing anymore," Johnson said. A football player and the president of the drama club intervened on his behalf, he recalled.


Johnson hasn't been bullied in college, but he said that's partly because he hangs out with the theater crowd and avoids the fraternity scene. Still, he agreed, that it generally gets better for gays as they mature.


"As you grow older, you become more accepting of yourself," Johnson said.


___


Online:


Pediatrics: http://www.pediatrics.org


It Gets Better: http://www.itgetsbetter.org


___


AP Medical Writer Lindsey Tanner can be reached at http://www.twitter.com/LindseyTanner


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Sheriff's Dept: Brown-Ocean inquiry will be closed


LOS ANGELES (AP) — A sheriff's spokesman says an investigation into a fight between Chris Brown and Frank Ocean will soon be closed without any charges being sought.


Los Angeles sheriff's spokesman Steve Whitmore says investigators will speak with Ocean before closing the case, but the agency is unlikely to pursue a misdemeanor battery charge against Brown.


Ocean has accused Brown of hitting him during an argument outside a West Hollywood recording studio last month, but wrote on the social media site Tumblr on Saturday that he wanted the matter closed. Ocean's post stated he did not want Brown prosecuted and he had no intentions of filing a civil lawsuit.


Brown remains on probation for the 2009 beating of Rihanna and is scheduled to appear in court for a progress hearing on Wednesday.


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S&P says US to sue over ratings









Standard & Poor's on Monday said it expects to be the target of a U.S. Department of Justice civil lawsuit over its ratings of mortgage bonds prior to the recent financial crisis.

The lawsuit against the McGraw-Hill Cos unit focuses on its ratings in 2007 of various U.S. collateralized debt obligations (CDO), S&P said.

It would be the first federal enforcement action against a credit rating agency over alleged illegal behavior tied to the financial crisis.

"A DOJ lawsuit would be entirely without factual or legal merit," S&P said in a statement. "The DOJ would be wrong in contending that S&P ratings were motivated by commercial considerations and not issued in good faith."

The Justice Department was not immediately available for comment.

Several state attorneys general are expected to join the case, The Wall Street Journal said, citing people familiar with the matter. The expected charges follow the breakdown of talks between the department and S&P, the newspaper said, citing the people.

In afternoon trading, McGraw-Hill shares were down $2.39, or 4.1 percent, at $55.95.

S&P and its main rivals, Moody's Corp's Moody's Investors Service and Fimalac SA's Fitch Ratings, have long faced criticism from investors, politicians and regulators for assigning high ratings to thousands of subprime and other mortgage securities that quickly turned sour.

The rating agencies are paid by issuers for ratings, a standard industry practice that has nonetheless raised concern about potential conflicts of interest.

In January 2011, the Financial Crisis Inquiry Commission called the agencies "essential cogs in the wheel of financial destruction" and "key enablers of the financial meltdown."

McGraw-Hill had acknowledged last July that the Justice Department and SEC were probing potential violations by S&P tied to its ratings of structured products, and that it was in talks to try to avert a lawsuit.

The New York-based company had previously disclosed an SEC probe into its ratings of a $1.6 billion CDO known as Delphinus CDO 2007-1. It was not immediately clear whether that CDO is a focus of the potential lawsuits.

Last July, Mizuho Financial Group Inc agreed to a $127.5 million settlement to resolve SEC allegations that a U.S. unit obtained false credit ratings for Delphinus.

In a variety of lawsuits brought by investors, S&P has maintained that its ratings constitute opinions protected by the 1st Amendment to the U.S. Constitution.

Last August, a Manhattan federal judge refused to dismiss one such case, brought by Abu Dhabi Commercial Bank, King County in Washington state, and other investors against S&P, Moody's and Morgan Stanley over losses in Cheyne, a structured investment vehicle.

Cheyne went bankrupt in August 2007. A trial is scheduled to begin on May 6, court records show.

In its statement, S&P said it "deeply regrets" how its CDO ratings failed to anticipate the fast-deteriorating mortgage market conditions, and that it has since spent $400 million to help bolster the quality of its ratings.

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1 killed, 4 injured in crash on Tri-State Tollway









A 39-year-old Carpentersville man was pronounced dead this morning after he was involved in a three vehicle crash on the Tri-State Tollway this morning, Illinois State Police said.


The accident happened at 6:47 a.m. on the Tri-StateTollway (I-294) at mile marker 24 3/4 near Lake-Cook Road in Lake County, Illinois State police officials said.


The vehicles included a Chrysler Sebring, a tow truck and a taxi, said State Police Sgt. Tim Moore.





The accident began as the tow truck and the Chrysler Sebring were traveling east on the tollway in Deerfield, Moore said.


As the two vehicles were driving, the Sebring struck the rear of the two truck which then caused the two vehicles to pull over to the shoulder of the roadway, said Moore.


After the tow truck driver got out of his truck and was standing on the shoulder speaking to the driver of the Sebring, a taxi struck the tow truck driver. The vehicle then struck the back of the Chrysler, Moore said. In additition to the taxi driver the vehicle was carrying a passenger, Moore said.


The driver of the Chrysler, who was inside his vehicle, was pronounced dead, Moore said. The tow truck driver, who had been struck by the taxi, did not sustain life-threatening injuries, Moore said.


There were a total of three transports made to Advocate Luthern General Hospital in Park Ridge all with non-lifethreatening injuries. Police initially said there had been four people taken to hospitals for treatment.


Chicagobreaking@tribune.com


Twitter: @ChicagoBreaking






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Hackers target Twitter, could affect 250,000 user accounts


SAN FRANCISCO (Reuters) - Anonymous hackers attacked Twitter this week and may have gained access to passwords and other information for as many as 250,000 user accounts, the microblog revealed late on Friday.


Twitter said in a blog post that the passwords were encrypted and that it had already reset them as a "precautionary measure," and that it was in the process of notifying affected users.


The blog post noted recent revelations of large-scale cyber attacks against the New York Times and the Wall Street Journal, but unlike the two news organizations, Twitter did not provide any detail on the origin or methodology of the attacks.


"This attack was not the work of amateurs, and we do not believe it was an isolated incident," Twitter said. "The attackers were extremely sophisticated, and we believe other companies and organizations have also been recently similarly attacked."


Privately held Twitter, which has 200 million active monthly users, said it was working with government and federal law enforcement officials to track down the attackers.


The company did not specifically link the attacks to China in the blog post, in contrast to the New York Times and the Wall Street Journal, which both said the hackers originated in China.


Twitter, the social network known for its 140-character messages, could not speculate on the origin of the attacks as its investigation was ongoing, said spokesman Jim Prosser.


"There is no evidence right now that would indicate that passwords were compromised," said Prosser.


The attack is not the first time that hackers have breached Twitter's systems and gained access to Twitter user information. Twitter signed a consent decree with the Federal Trade Commission in 2010, subjecting the company to 10 years of independent privacy reviews, for failing to safeguard users' personal information.


(Reporting by Alexei Oreskovic; Editing by Gary Hill and Lisa Shumaker)



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