Obama Poised to Name New Defense, Treasury Chiefs

With the "fiscal cliff" crisis behind him, President Obama is poised to name two new key players to his cabinet, with both announcements expected to come next week.

Obama will name the replacement for outgoing Defense Secretary Leon Panetta as soon as Monday, sources told ABC News. Former Republican Sen. Chuck Hagel is the likely nominee, they said.

Meanwhile, the president is also eyeing a replacement for outgoing Treasury Secretary Timothy Geithner, the longest-serving member of Obama's first-term economic team and one-time lead negotiator for the administration in the "fiscal cliff" talks.

Current chief of staff Jack Lew is all but certain to get the nod for Treasury, according to people familiar with Obama's thinking.

A White House spokesman cautioned that the president has not yet made a final decision on either post, calling reports about Hagel and Lew "merely guessing."

Still, when Obama returns from his Hawaiian vacation on Sunday, he's expected to waste little time filling out his team for a second term.

Geithner has said he would remain at his post "until around the inauguration" Jan. 20, a Treasury spokesperson said Thursday, putting the department potentially in transition just as the administration confronts the next financial "cliffs" over automatic spending cuts and the nation's debt limit.

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During an appearance on ABC's "This Week" in April, Geithner said the next Treasury secretary would need to be someone who is "willing to tell [Obama] the truth and, you know, help him do the tough things you need to do."

Lew, a former two-time Office of Management and Budget director and trusted Obama confidant who has held the chief of staff role since early 2012, is the front-runner for the job.

Meanwhile, Sen. John Kerry -- Obama's nominee to replace outgoing Secretary of State Hillary Clinton -- has begun making more regular appearances at the U.S. State Department before his expected confirmation later this month.

His Senate hearings are set to begin shortly after Obama's inauguration, sources say. The administration still expects Clinton to testify about the Sept. 11 Benghazi, Libya, attacks before Kerry is confirmed.

But it is the potential nomination of Republican Hagel that has caused the most stir.

Critics from across the political spectrum have taken aim at the former senator from Nebraska's record toward Israel and what some have called a lack of experience necessary to lead the sprawling Pentagon bureaucracy or its operations. The controversy has set the stage for what would be a contentious confirmation process.

"A lot of Republicans and Democrats are very concerned about Chuck Hagel's position on Iran sanctions, his views toward Israel, Hamas and Hezbollah, and that there is wide and deep concern about his policies," Sen. Lindsey Graham, R-S.C., told "Fox News Sunday."

He would not say whether Republicans felt so strongly as to expect a filibuster of the nomination.

"I can tell you there would be very little Republican support for his nomination," Graham said. "At the end of the day, they will be very few votes."

Still, Hagel, 66, a former businessman and decorated veteran who served in the Vietnam War, has won praise and admiration from current and former diplomats for his work on Obama's Intelligence Advisory Board and Panetta's Policy Advisory Board.

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Unique meteorite hints Mars stayed moist for longer

A scorched rock bought in Morocco turned out to be a diamond in the rough. The unusual meteorite may be the first sample of the Red Planet's crust ever to hit Earth, and it suggests that Mars held on to its water for longer than we thought.

The meteorite, dubbed Northwest Africa (NWA) 7034, is strikingly different from the 111 previously discovered Martian meteorites. "You could look at meteorites for the rest of your life and not find another one like this," says Carl Agee of the University of New Mexico in Albuquerque, who was part of a team that has recently analysed NWA 7034. "This is in its own new group."

The most distinctive difference is its mineral content. Previously found meteorites had unearthly oxygen isotopes that marked them as being from another planet, and their volcanic origin made Mars the most likely culprit. But compared to these meteorites, surface rocks studied by Martian rovers and orbiters are much richer in light metals such as potassium and sodium. This suggests the known meteorites came from deeper inside the Red Planet.

"We're watching data coming back from Mars, and everything that comes back doesn't look like the Martian meteorites we have in our collections," says Munir Humayun of Florida State University in Tallahassee, who was not involved in the new study. "That's kind of a bummer."

By contrast, NWA 7034's chemistry closely resembles the rock and soil studied by NASA's Spirit rover. Preliminary measurements from the Curiosity rover, which landed in August 2012, suggest its landing site also has a similar composition.

Drying era

"Finally, it looks as if we have a sample that is very similar to the rocks that the rovers are seeing," Agee says. What's more, the Moroccan meteorite may come from a period in Mars' history when the planet was drying out.

Mars is thought to have once been much warmer, wetter and more hospitable to life. Then it morphed into the dry, cold desert we see today. The oldest known Mars meteorite, called the Allan Hills meteorite, is 4.5 billion years old. The other 110 meteorites are much younger – 1.5 billion years old at most – and formed after Mars is thought to have lost its water.

NWA 7034 is 2.1 billion years old, making it the first meteorite that may hail from the transitional era. Intriguingly, it has as much as 30 times more water than previous meteorites locked up in its minerals. "It opens our mind to the possibility that climate change on Mars was more gradual," Agee says. "Maybe it didn't lose its water early on."

Hot deal

The 319.8-gram rock found its way to Agee's lab via an amateur collector named Jay Piatek. He bought it for what turned out to be a knock-down price from a Moroccan meteorite dealer, who recognised its scorched exterior as a sign that it fell from space. "It didn't look like a Martian meteorite, so it didn't have the Martian meteorite value at the time," Agee says, adding that Mars rock can go for $500 to $1000 per gram.

Piatek brought the rock to Agee's lab to find out what it was. "Honestly, I had never seen anything like it. I was baffled, initially," Agee says. "Now, about a year and a half after the first time I set eyes on this thing, we are convinced that it is Martian, a new type, and has important implications for understanding the history of Mars."

Humayun says the results so far are exciting, and that the rock's carbon content could also yield valuable insights once other researchers get their hands on it.

"What's the most exciting thing you would want to do with a rock that comes from the near surface of Mars, especially one that seems to be loaded with water?" he asks. "I would say, what about life?" Agee and colleagues found organic matter in the meteorite, he says, but it will take more work to determine whether it was of Martian or terrestrial origin.

If it's Martian, "that would spark a lot of excitement", he says.

Journal reference: Science, DOI: 10.1126/science.1228858

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Australian soy milk action widened to Japanese firms

SYDNEY: Hundreds of Australians who became sick after drinking soy milk containing dangerously high levels of iodine have widened their class action to include two Japanese companies, lawyers said.

About 600 Australians became ill after consuming Bonsoy milk, many suffering thyroid problems, up until the product was withdrawn from sale in late 2009, Maurice Blackburn Lawyers said late Thursday.

The case against the Australian brand owner Spiral Foods launched in the Victorian Supreme Court in 2010 had been widened to include manufacturer Marusan-ai Co Ltd and exporter Muso Co Ltd, the firm said.

"We say that these three companies had test results in mid-2006 which showed that Bonsoy contained extremely high levels of iodine, but they did nothing," said senior associate Irina Lubomirska in a statement.

Lubomirska said the companies had breached consumer protection laws in Australia and Japan.

"None of the three companies did anything to ensure that Bonsoy, which was marketed and sold as a premium health-food soy brand, was in fact safe to consume," she said.

The class action alleges that Spiral requested a reformulation of Bonsoy to include iodine-rich kombu instead of adding salt and that as a result the product had contained excessive iodine since mid-2003.

It also alleges that consumer concerns about iodine were repeatedly dismissed.

Victims are seeking compensation for medical expenses and loss of income as well as for the pain and suffering.

By the time Bonsoy was recalled in late 2009, after Australian authorities discovered that one glass contained seven times the upper safe dose of iodine for adults, it had been on the market for six years, Maurice Blackburn said.

Because it was touted as a healthy product, some consumers had increased their intake when they became ill, Lubomirska added.

A directions hearing on the matter is scheduled for March 8.

-AFP/ac

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Boehner chokes up during speech

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Google survives antitrust probe with little damage

SAN FRANCISCO Google has settled a U.S. government probe into its business practices without making any major concessions on how the company runs its Internet search engine, the world's most influential gateway to digital information and commerce.

Thursday's agreement with the Federal Trade Commission covers only some of the issues raised in a wide-ranging antitrust investigation that could have culminated in a regulatory crackdown that re-shapes Internet search, advertising and mobile computing.

But that crackdown didn't happen, to the relief of Google and technology trade groups worried about overzealous regulation discouraging future innovation. The resolution disappointed consumer rights groups and Google rivals such as Microsoft Corp., which had lodged complaints with regulators in hopes of legal action that would split up or at least hobble the Internet's most powerful company.

Google is still trying to settle a similar antitrust probe in Europe. A resolution to that case is expected to come within the next few weeks.

After a 19-month investigation, Google Inc. placated the FTC by agreeing to a consent decree that will require the company to charge "fair, reasonable and non-discriminatory" prices to license hundreds of patents deemed essential to the operations of mobile phones, tablet computers, laptops and video game consoles.

The requirement is meant to ensure that Google doesn't use patents acquired in last year's $12.4 billion purchase of Motorola Mobility to thwart competition from mobile devices running on software other than Google's Android system. The products vying against Android include Apple Inc.'s iPhone and iPad, Research in Motion Ltd.'s BlackBerry and Microsoft's Windows software.

Google also promised to exclude, upon request, snippets copied from other websites in capsules of key information shown in response to search requests. The company had insisted the practice is legal under the fair-use provisions of U.S. copyright law. Nonetheless, even before the settlement, Google already had scaled back on the amount of cribbing, or "scraping," of online content after business review site Yelp Inc. lodged one of the complaints that triggered the FTC investigation in 2011.

In another concession, Google pledged to adjust the online advertising system that generates most of its revenue so marketing campaigns can be more easily managed on rival networks.

Google, though, prevailed in the pivotal part of the investigation, which delved into complaints that the Internet search leader has been highlighting its own services on its influential results page while burying links to competing sites. For instance, requests for directions may turn up Google Maps first, queries for video might point to the company's own site, YouTube, and searches for merchandise might route users to Google Shopping.

Although the FTC said it uncovered some obvious instances of bias in Google's results during the investigation, the agency's five commissioners unanimously concluded there wasn't enough evidence to take legal action.

"Undoubtedly, Google took aggressive actions to gain advantage over rival search providers," said Beth Wilkinson, a former federal prosecutor that the FTC hired to help steer the investigation. "However, the FTC's mission is to protect competition, and not individual competitors."

Two consumer rights groups lashed out at the FTC for letting Google off too easily.

"The FTC had a long list of grievances against Google to choose from when deciding if they unfairly used their dominance to crush their competitors, yet they failed to use their authority for the betterment of the marketplace," said Steve Pociask, president of the American Consumer Institute.

John Simpson of frequent Google critic Consumer Watchdog asserted: "The FTC rolled over for Google."

David Wales, who was the FTC's antitrust enforcement chief in 2008 and early 2009, said the agency had to balance its desire to prevent a powerful company from trampling the competition against the difficulty of proving wrongdoing in a rapidly changing Internet search market.

"This is a product of the FTC wanting to push the envelope of antitrust enforcement without risking the danger of losing a case in in court," said Wales, who wasn't involved with the case and is now a partner at the law firm Jones Day.

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James Holmes Defense: Was He Insane?

Jan 3, 2013 5:30pm

James Holmes appears in court, Centennial, Colo., July 23, 2012. RJ Sangosti/AP Images.

ABC’s Clayton Sandell and Carol McKinley report:

A judge ruled Thursday that public defenders for accused Colorado theater shooting suspect James Holmes can call two unidentified witnesses at next week’s preliminary hearing to testify about the defendant’s “mental state.”

Arapahoe County, Colo. prosecutors had sought to keep the witnesses out of court, but Judge William Sylvester ruled that the now-25-year-old accused killer has a right to call the witnesses at a preliminary hearing.

The Jan. 7 preliminary hearing will essentially be a mini-trial in which prosecutors will present witness testimony and evidence to convince the judge that there is enough of a case against Holmes to proceed to a trial.

Witnesses to be called for the prosecution include the Aurora police lead detective, first responders, the Arapahoe County coroner and likely a computer forensic specialist, according to prosecution sources who declined to be identified, citing a gag order in the case.

A top priority, the prosecution sources say, will be showing that Holmes acted with premeditation when he allegedly murdered 12 people and wounded 58 on the night of July 20 during a midnight showing of “The Dark Knight Rises.”

Defense attorneys may pursue a legal strategy to show that Holmes was not in his right mind at the time of the shooting.

Holmes, who has not yet entered a plea, has been repeatedly described in court by his legal team as mentally ill. While a graduate student at the University of Colorado, he was in the care of a psychiatrist.

Prosecutors say they will also present photos, video and 911 calls during the hearing, which is expected to last all week.

It’s not clear what the two witnesses’ relationship is to the shooting, or to Holmes.

Prosecutors, Judge Sylvester’s order says, contend that “neither witness has personal knowledge of the events at the Century Aurora 16 Theater.”

Sylvester said the witnesses are non-expert “lay witnesses” who have so far chosen not to be interviewed by defense investigators but have been cooperating with law enforcement.

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Clinton out of hospital, keen to resume work

NEW YORK: US Secretary of State Hillary Clinton was released from a New York hospital late Wednesday and is expected to make a full recovery from a rare blood clot in her head, a top aide said.

"Secretary Clinton was discharged from the hospital this evening," Deputy Assistant Secretary Philippe Reines said in a statement, three days after the 65-year-old diplomat was admitted for treatment.

"Her medical team advised her that she is making good progress on all fronts, and they are confident she will make a full recovery," he said, adding that Clinton was "eager to get back to the office."

Earlier the top US diplomat, bundled up against the cold in a winter coat and wearing dark glasses, appeared in public for the first time in almost a month, when she came out of a building at the New York Presbyterian Hospital.

It was the first time Clinton had been seen since catching a stomach virus on returning from a trip to Europe on December 7, which triggered a series of health scares and forced her to cancel a planned visit to North Africa.

Accompanied by her smiling husband, former president Bill Clinton, as well as her daughter Chelsea and several aides, Clinton walked unaided to a waiting black van at the hospital, according to images broadcast by CNN.

Both Clinton and her family "would like to express their appreciation for the excellent care she received from the doctors, nurses and staff at New York Presbyterian Hospital Columbia University Medical Center," Reines added.

He did not say when the secretary would return to work though, promising only to issue an update in the coming days. She is due to step down after four years in office later this month, handing the baton to Senator John Kerry, who has been nominated by President Barack Obama to replace her.

"Grateful my Mom discharged from the hospital & is heading home. Even more grateful her medical team confident she'll make a full recovery," Chelsea Clinton said in a tweet.

Kerry's appointment will have to be confirmed by the new Senate, due to be sworn in on Thursday, but as a veteran, well-respected senator he is expected to sail through the hearing.

Earlier, State Department spokeswoman Victoria Nuland said Clinton had been busy keeping in touch by telephone.

"She has been talking to her staff, including today. She's been quite active on the phone with all of us," Nuland told journalists.

The globe-trotting diplomat was admitted to the hospital on Sunday after a routine scan revealed the clot in a vein behind her right ear in the space between her skull and her brain.

Her doctors Lisa Bardack, from the Mount Kisco Medical Group, and Gigi El-Bayoumi, of George Washington University, said in a statement on Monday that Clinton had not suffered a stroke or any neurological damage.

They said however they would be treating Clinton with blood thinners to break up the clot, which if left untreated could be potentially dangerous.

The effects of the stomach bug caused her to become dehydrated. She then fainted and suffered a concussion, which is thought to have brought on the blood clot.

Clinton still has some unfinished business as she wraps up her popular tenure at the State Department, and is widely expected to testify before the end of the month on the September 11 attack on a diplomatic mission in Libya.

She had been due to appear at hearings last month, after a State Department inquiry found security at the Benghazi mission was "grossly inadequate" but was forced to cancel after she fell ill. Four Americans died in the attack.

Republican Representative Peter King said he believed she still needed to testify "and I think she will be pleased to do it. I never have known Hillary Clinton to back away from a fight."

But King told CNN she should not appear before Congress "until she is absolutely in perfect health."

-AFP/ac

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Hillary Clinton discharged from New York hospital

STORY HIGHLIGHTS

• Clinton is "making good progress on all fronts" and has been discharged


• She has been hospitalized since Sunday after doctors found a blood clot in her head


• Clinton has been on the phone and talking with aides, a spokeswoman says


• The 65-year-old secretary plans to step down once the Senate confirms a successor

(CNN) -- Secretary of State Hillary Clinton was discharged from a New York hospital on Wednesday, three days after she was admitted for treatment of a blood clot in a vein between her skull and brain, the State Department announced.

"Her medical team advised her that she is making good progress on all fronts, and they are confident she will make a full recovery," Clinton spokesman Philippe Reines said in a statement announcing her release.

Clinton walked out of New York Presbyterian Hospital accompanied by her husband, former President Bill Clinton, and daughter, Chelsea, for a brief period earlier Wednesday afternoon. The appearance led to speculation about her release, which was announced a couple hours later.

She had been admitted Sunday, after doctors found the clot during a medical test related to a concussion she suffered in December.

The secretary is being treated with blood thinners to dissolve the clot, which has not resulted in a stroke or any neurological damage. Doctors expect her to make a full recovery.

Hillary Clinton through the years

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Earlier, State Department spokeswoman Victoria Nuland told reporters that Clinton was in communication with aides and there was nothing new on her condition or treatment.

Clinton "has been quite active on the phone with all of us, but she also made some calls on Saturday to a couple of foreign officials," Nuland said.

Those official calls came before the blood clot was disclosed Sunday. The first, to the joint special envoy on Syria, Lakhdar Brahimi, lasted a half hour. The second was to the prime minister of Qatar, who is also the foreign minister.

"She has begun to pick up her regular phone contact with some of her counterparts," Nuland added.

Clinton, 65, has not been publicly seen or heard from in more than three weeks since falling ill with severe stomach flu and a subsequent concussion that occurred when she fainted because of dehydration, officials said.

Questions also have been raised as to why there was almost a day's delay in explaining the precise location of the clot and why she was administered an MRI, which revealed the problem.

Nuland said officials have been "extremely forthcoming" about Clinton's health.

"We will continue to keep you updated as we have new information to share, as we've been doing all along," Nuland said. "I think that was eighth statement in some three weeks so please bear with us."

Asked how Clinton's illness might affect her plans to testify on Capitol Hill about the deadly September terror attack on the U.S. diplomatic mission in Benghazi, Libya. Nuland did not directly say whether Clinton would appear.

"She has said that she is open to going up to the Hill. We are working with them now on their schedule because there's also a question of when they are going to be in and we will let you know when we have something to share," Nuland said.

Clinton, a former first lady, New York senator and presidential candidate, does not plan to stay on for President Barack Obama's second term, but prefers to remain until her replacement is in place.

Some senators have said they would delay confirmation hearings for her proposed successor, Sen. John Kerry, until Clinton has testified on the Libya attack that killed Ambassador Christopher Stevens and three other Americans.

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Hillary Clinton discharged from hospital

WASHINGTONSecretary of State Hillary Clinton was discharged from a New York hospital Wednesday, after spending 72 hours under observation following the discovery of a blood clot in her head, the State Department said.

In a statement, spokesperson Philippe Reines said: "Her medical team advised her that she is making good progress on all fronts, and they are confident she will make a full recovery. She's eager to get back to the office."

Clinton and her family thanked her medical team "for the excellent care she received," Reines said.

Earlier Wednesday, Clinton had been seen in public for the first time in three weeks when she walked out of the Harkness Eye Institute in New York City and into a secure van along with a smiling Bill and Chelsea Clinton and accompanied by a security detail, reports CBS News correspondent Margaret Brennan.

The State Department had said Secretary Clinton was active in speaking with staff and reviewing paperwork while she continued to recover at New York Presbyterian Hospital.

Clinton was admitted to a New York hospital Sunday and was treated with blood thinners to dissolve a clot in the vein behind the right ear. Doctors found the clot during a follow-up exam stemming from a concussion she suffered in early December. She has been hospitalized for around 72 hours, which is a window of time during which it is possible to establish the proper blood thinner dosage that would be required prior to discharge according to doctors.

Clinton's doctors say there was no neurological damage.

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