Italy upbeat at end of 2012 after year of market tension

ROME: Italy is ending 2012 on an upbeat note, with renewed financial market confidence and optimism among analysts that the worst of the financial crisis is over, despite expectations of political uncertainty in the run-up to a general election in February.

The Treasury's borrowing rates were slightly higher at short, medium and long-term debt auctions last week, but were well below levels seen at the end of 2011, when Prime Minister Mario Monti took over from Silvio Berlusconi as Italy teetered on the brink amid the eurozone debt crisis.

In late November 2011, the country was paying a 7.56 per cent rate for its benchmark ten-year bonds, sparking widespread concerns it might have to ask for a bailout.

On Friday, that rate stood at 4.48 per cent.

As 2012 draws to a close, "even if public debt has breached the two trillion euros mark, Italy's ability to finance itself is no longer in doubt," said Enrico Marro in Italy's Il Sole 24 Ore financial daily.

"For 2013, optimism reigns," he concluded.

The turnaround is principally the result of two factors: the European Central Bank's promise to buy sovereign debt issued by eurozone member states without limit if necessary if they meet certain strict conditions, and Monti's decisive reforms which have restored Italy's credibility internationally.

Experts have forecast a couple of months of volatility on the markets in the lead up to the February 24 and 25 elections, but the worst appears to be over.

Italian bank Intesa Sanpaolo said "the fever should drop off in 2013 compared with 2012."

The bond spread -- a key measure of the difference between Italian and German 10-year bond yields -- has also dropped sharply over the year, dipping below 300 basis points in early December from double that figure at its peak.

While European leaders congratulated Monti on restoring calm to the markets, Berlusconi's announcement at the start of December that he is running again for prime minister sparked panic and the spread began to inch up again.

The media magnate has dismissed the spread measure as "a trick and an invention" used to bring down his government.

Investors will be watching closely in the coming weeks to see if Berlusconi's large-scale media campaign for re-election wins him potential votes from Italians tired of Monti's austerity packages and record unemployment levels.

Renewed confidence in financial markets contrasts sharply with official forecasts for economic growth over the coming year, as Italy struggles to pull itself out of a recession.

Despite Monti's "Grow Italy" plan, the economy is not expected to return to growth before the end of 2012 or the beginning of 2014.

"Business and household sentiment does not appear to have benefited from the easing market tension," Intensa Sanpaolo said.

The government has forecast a 0.2 per cent contraction of the country's gross domestic product in 2013 -- an outlook considered overly optimistic by Italy's business association Confindustria, which expects GDP to shrink by 1.1 per cent next year.

One figure is on the rise however: the number of people on Twitter following Monti, who is drumming up support for a reform-led electoral campaign.

Monti, who resigned last week after Berlusconi's People of Freedom party pulled support from the government, has said he is keen to lead the country again after the elections -- a message welcomed by the markets, European leaders and Italy's Catholic Church alike.

- AFP/ck

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Fiscal cliff: Nation on edge

STORY HIGHLIGHTS

• NEW: "We've been in discussions all day and they continue," Sen. McConnell says


• McConnell and Harry Reid should update their caucuses, perhaps with an agreement, on Sunday


• There will be major cuts and widespread tax increases without a deal by year's end


• Some congressmen say Americans have a right to be frustrated by the stalemate

As the fiscal cliff looms, what's your New Year's message to Washington? Go to CNNiReport to share your video.

Washington (CNN) -- The Senate's top Democrat and Republican are working this weekend to forge a compromise to prevent the country from going over the fiscal cliff, the combination of sweeping spending cuts and widespread tax increases that will otherwise take effect in days.

By mid-day Saturday, Senate aides from both parties reported no major developments in the talks. That may not be a bad sign, as a Democratic aide earlier said his side would probably leak a Republican offer it considers "laughable" but would keep it private if the proposals were reasonable.

Senate Minority Leader Mitch McConnell did tell reporters early Saturday evening, "We've been trading paper all day, and the talks continue into the evening."

"We've been in discussions all day and they continue," the Kentucky Republican said. "We'll let you know as soon as we have some news to make."

The Senate aides said they expect no details will be divulged until Sunday afternoon, when McConnell and Senate Majority Leader Harry Reid, D-Nevada, will update their Republican and Democratic caucuses, respectively.

House Republicans will get together sometime early Sunday night, according to a note sent to legislators and staffers. House Speaker John Boehner has called on the Senate to go first, and then his chamber -- which reconvenes Sunday -- will act.

Early Friday evening after a meeting involving President Obama, congressional leaders and top administration officials, the president said he was "modestly optimistic" the Senate leaders would reach an agreement. At the same time, he conceded, "Nobody's going to get 100% of what they want."

The weekend talks are being led by the two senators' chiefs of staff -- David Krone for Reid, and Sharron Soderstrom for McConnell -- communicating largely over the phone and by e-mail, aides said.

Staffers for Boehner, the top man in the Republican-led House of Representatives, won't directly take part in the negotiations, but they'll be kept informed by McConnell's staff, a GOP aide said. From the White House, Obama has been in close contact with negotiators, a senior administration official said Saturday.

Democrats believe Republicans should make the "first move" -- basically by saying how they want to alter the president's proposal, which calls for tax rates to stay the same for all annual family income below $250,000. The expectation is Republicans will try to raise that income threshold to $400,000 and push to keep estate taxes low; Democrats said they might be open to one such scenario, but not both.

If the two sides don't agree on a bill over the weekend, Obama said he wants his latest proposal to be put up for a vote in both the Senate and House. He predicted his plan -- which, in addition to his tax rate proposal, would extend unemployment benefits and "lay the groundwork" for deficit reduction -- would pass in both chambers with bipartisan support.

As members of Congress and their staffs talk, Obama will make his case to the public by appearing Sunday on NBC's "Meet the Press," his first appearance on a Sunday political talk show in three years. The appearance follows his weekly radio address, given Saturday, in which he said it was Republicans' "prerogative" to "let this tax hike hit the middle class," while Republican Sen. Roy Blunt of Missouri countered by accusing Democrats of spending "months drawing partisan lines in the sand."

Reid said, at the very least, that he'd prepare legislation that includes elements favored by Obama for a vote by Monday. Still, he insisted he'd first work with his GOP colleagues.

"I look forward to hearing any good-faith proposals Sen. McConnell has for altering this bill," the Nevada Democrat said.

If no legislation passes both chambers and therefore isn't signed by the president by year's end, the fiscal cliff will go into effect -- something economists warn could trigger a recession.

The lack of political movement thus far, and lack of confidence Washington politicians can get anything done with so little time left, has spurred consumer confidence to sag and stock market values to sink.

Some, like Democratic Sen. Chuck Schumer of New York, expressed cautious optimism Friday that the looming deadline, and the key players renewed engagement, would spur a deal. But others were less optimistic, with Democratic Rep. Jim Moran of Virginia saying Saturday that "I don't think we are going to be able to reach a deal, no matter how small it might be."

Republican Sen. Bob Corker of Tennessee derided the entire process so far as "a total dereliction of duty on every level."

"I've been very surprised that the president has not laid out a very specific plan to deal with this," he said on CBS "This Morning."

"But candidly, Congress should have done the same. And I think the American people should be disgusted."

The principal dispute continues to be over taxes, specifically Democrats' demand to extend most tax cuts passed under President George W. Bush while allowing higher rates of the 1990s to return on top income brackets. During his re-election campaign, Obama said doing so would protect 98% of Americans and 97% of small businesses from tax hikes.

Republicans have opposed any increase in tax rates, and Boehner suffered the political indignity last week of offering a compromise -- a $1 million threshold for the higher rates to kick in -- that his GOP colleagues refused to support because it raised taxes and had no chance of passing the Senate.

Obama and Democrats have leverage, based on the president's re-election last month and Democrats' gains in the House and Senate in the new Congress. In addition, polls consistently show majority support for Obama's position on taxes, and Democrats insist the House would pass the president's plan with Democrats joined by some Republicans if Boehner allowed a vote on it.

However, conservative activist Grover Norquist has vowed to back primary challenges against Republicans who violate his widely signed pledge not to raise taxes. Even if a deal is reached, Norquist has predicted yet more budget showdowns every time the government needs additional money to operate.

The two sides seemingly made progress early last week on forging a $2 trillion deficit reduction deal that included new revenue sought by Obama and spending cuts and entitlement changes desired by Boehner.

Boehner appeared to move on increased tax revenue, including higher rates on top income brackets and eliminating deductions and loopholes. But his inability to rally all House Republicans behind his plan raised questions about his role and what comes next.

The saga has fueled disdain for politicians by many Americans. Such contempt is deserved, said Rep. Steven LaTourette, an Ohio Republican, who is retiring from Congress.

"I think America should be embarrassed by its leadership in D.C.," he told CNN on Friday. "The fact that we have been unable to do things, and instead worried about our next elections. ... I think it's sinful."

What happens to the economy if we go over the cliff?

CNN's Jessica Yellin, Tom Cohen, Dana Bash, Deirdre Walsh, Lisa Desjardins and Kevin Liptak contributed to this report.

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Woman charged with murder in NY subway shove

Last Updated 9:37 p.m. ET

NEW YORK A woman who told police she shoved a man to his death off a subway platform into the path of a train because she has hated Muslims since Sept. 11 and thought he was one was charged Saturday with murder as a hate crime, prosecutors said.

Erika Menendez was charged in the death of Sunando Sen, who was crushed by a 7 train in Queens on Thursday night, the second time this month a commuter has died in such a nightmarish fashion.

Menendez, 31, was awaiting arraignment on the charge Saturday evening, Queens District Attorney Richard A. Brown said. She could face 25 years to life in prison if convicted. She was in custody and couldn't be reached for comment, and it was unclear if she had an attorney.

Menendez, who was arrested after a tip by a passer-by who saw her on a street and thought she looked like the woman in a surveillance video released by police, admitted shoving Sen, who was pushed from behind, authorities said.

In this image provided by the New York City Police Department, a composite sketch showing the woman believed to have pushed a man to his death in front of a subway train on Thursday, Dec. 27, 2012 is shown.

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AP Photo/New York City Police Department

"I pushed a Muslim off the train tracks because I hate Hindus and Muslims ever since 2001 when they put down the twin towers I've been beating them up," Menendez told police, according to the district attorney's office.

Sen was from India, but police said it was unclear if he was Muslim, Hindu or of some other faith. The 46-year-old lived in Queens and ran a printing shop. He was shoved from an elevated platform on the 7 train line, which connects Manhattan and Queens. Witnesses said a muttering woman rose from her seat on a platform bench and pushed him on the tracks as a train entered the station and then ran off.

The two had never met before, authorities said, and witnesses told police they hadn't interacted on the platform.

Police released a sketch and security camera video showing a woman running from the station where Sen was killed.

Menendez was arrested by police earlier Saturday after a passer-by on a Brooklyn street spotted her and called 911. Police responded, confirmed her identity and took her into custody, where she made statements implicating herself in the crime, police spokesman Paul Browne said.

The district attorney said such hateful remarks about Muslims and Hindus could not be tolerated.

"The defendant is accused of committing what is every subway commuter's worst nightmare," he said.

On Dec. 3, another man was pushed to his death in a Times Square subway station. A photo of the man clinging to the edge of the platform a split second before he was struck by a train was published on the front page of the New York Post, causing an uproar about whether the photographer, who was catching a train, or anyone else should have tried to help him.

A homeless man was arrested and charged with murder in that case. He claimed he acted in self-defense and is awaiting trial.

It's unclear whether anyone tried -- or could have tried -- to help Sen on Thursday.

Mayor Michael Bloomberg on Friday urged residents to keep Sen's death in perspective as he touted new historic lows in the city's annual homicide and shooting totals.

"It's a very tragic case, but what we want to focus on today is the overall safety in New York," Bloomberg told reporters following a police academy graduation.

But commuters still expressed concern over subway safety and shock about the arrest of Menendez on a hate crime charge.

"For someone to do something like that ... that's not the way we are made," said David Green, who was waiting for a train in Manhattan. "She needs help."

Green said he caught himself leaning over the subway platform's edge and realized maybe he shouldn't do that.

"It does make you more conscious," he said of the deaths.

Such subway deaths are rare, but other high-profile cases include the 1999 fatal shoving of aspiring screenwriter Kendra Webdale by a former psychiatric patient. That case led to a state law allowing for more supervision of mentally ill people living outside institutions.

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Woman Charged With Murder in NYC Subway Push

A woman who allegedly told New York City police she pushed a man onto the subway tracks because she hated Hindus and Muslims has been charged with murder as a hate crime.

Erica Menendez, 31, allegedly told police that she "pushed a Muslim off the train tracks because I hate Hindus and Muslims ever since 2001 when they put down the twin towers I've been beating them up."

Menendez was taken into custody this morning after a two-day search, and when detectives were interviewing her she allegedly made the statements implicating herself in Thursday night's subway-platform death.

"The defendant is accused of committing what is every subway commuter's worst nightmare -- being suddenly and senselessly pushed into the path of an oncoming train," Queen District Attorney Richard A. Brown said. "The victim was allegedly shoved from behind and had no chance to defend himself. Beyond that, the hateful remarks allegedly made by the defendant and which precipitated the defendant's actions can never be tolerated by a civilized society."

Menendez was due to be arraigned this evening. She could face 25 years to life in prison if convicted of the second degree murder charge.

On Thursday night, a woman shoved a man from a subway platform at Queens Boulevard, and the man was crushed beneath an oncoming train. Police had searched the area for her after the incident.

New York City Subway Pusher Charged With Murder Watch Video

The victim was Sunando Sen, identified by several media outlets as a graphic designer and Indian immigrant who opened a print shop, Amsterdam Copy, on Manhattan's Upper West Side. Sen was struck by the No. 7 train after the unidentified woman allegedly pushed him from the northbound platform at 40th Street and Queens Boulevard at 8:04 p.m. on Thursday.

Witnesses told police they had seen the woman mubling to herself, pacing along the platform. She gave Sen little time to react, witnesses said.

"Witnesses said she was walking back and forth on the platform, talking to herself, before taking a seat alone on a wooden bench near the north end of the platform. When the train pulled into the station, the suspect rose from the bench and pushed the man, who was standing with his back to her, onto the tracks into the path of the train," NYPD Deputy Commissioner Paul J. Browne said earlier today. "The victim appeared not to notice her, according to witnesses."

READ: What to Do If You Fall on the Subway Tracks

Police released brief surveillance video of the woman fleeing the subway station, and described the suspect as a woman in her 20s, "heavy set, approximately 5'5" with brown or blond hair."

It was New York's second death of this kind in less than a month. On Dec. 3, 58-year-old Ki-Suck Han of Queens was shoved onto the tracks at New York's Times Square subway station. Two days later, police took 30-year-old Naeem Davis into custody.

On Friday, New York City Mayor Michael Bloomberg was asked whether the attack might be related to the increase of mentally ill people on the streets following closures of institutions over the past four decades.

"The courts or the law have changed and said, no, you can't do that unless they're a danger to society. Our laws protect you," Bloomberg said on his weekly radio show.

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Ten global New Year's eats

Revelers in Madrid's Puerta del Sol eat one grape for each toll of the clock bell at midnight.

STORY HIGHLIGHTS

• Pickled herring, lentils and noodles all make appearances on global New Year's menus


• In the American South, hoppin' john, made with rice and field peas, is said to bring good luck


• King cakes are part of the festivities in many cultures

(CNN) -- Americans who celebrate on New Year's Eve with a bottle of champagne, party hats and a kiss at midnight have an important lesson to learn from the rest of the world (and certain regions of this country): The arrival of the new year is meant for feasting.

As the new year arrives around the globe, special cakes and breads abound, as do long noodles (representing long life), field peas (representing coins), herring (representing abundance) and pigs (representing good luck). The particulars vary, but the general theme is the same: to sit down and share a meal with family and friends to usher in a year of prosperity.

Where to see in the new year in style

Here are some of the common traditions around the world and a few hints about where to partake in them:

Hoppin' John, American South

A major New Year's food tradition in the American South, Hoppin' John is a dish of pork-flavored field peas or black-eyed peas (symbolizing coins) and rice, frequently served with collards or other cooked greens (as they're the color of money) and cornbread (the color of gold). The dish is said to bring good luck in the new year.

Different folklore traces the history and the name of this meal, but the current dish has its roots in African and West Indian traditions and was most likely brought over by slaves to North America. A recipe for Hoppin' John appears as early as 1847 in Sarah Rutledge's "The Carolina Housewife" and has been reinterpreted over the centuries by home and professional chefs.

The dish reportedly got its name in Charleston, South Carolina, and it is a veritable staple of Lowcountry cooking. So this is as good a place as any to eat it. Husk, the acclaimed restaurant of chef Sean Brock, often serves Hoppin' John, as does Charleston institution Hominy Grill. Not heading south for the holidays? Seersucker in Brooklyn, New York, is serving Hoppin' John from 10 a.m. to 5 p.m. on New Year's Day.

Twelve grapes, Spain

While Americans watch the ball drop in Times Square on New Year's Eve, Spaniards watch the broadcast from Puerta del Sol in Madrid, where revelers gather in front of the square's clock tower to ring in the New Year. Those out in the square and those watching at home partake in an unusual annual tradition: at the stroke of midnight they eat one grape for every toll of the clock bell. Some even prep their grapes -- peeling and seeding them -- to make sure they will be as efficient as possible when midnight comes.

6 food must-haves for 2013

The custom began at the turn of the 20th century and was purportedly thought up by grape producers in the south with a bumper crop. Since then the tradition has spread to many Spanish-speaking nations.

Those spending New Year's Eve in Madrid should head over to the Puerta del Sol before midnight. It's a lively square, surrounded by bars, restaurants and shopping, so it's a good place to be when the new year comes.

Tamales, Mexico

Tamales, corn dough stuffed with meat, cheese and other delicious additions and wrapped in a banana leaf or a corn husk, make appearances at pretty much every special occasion in Mexico. But the holiday season is an especially favored time for the food. In many families, groups of women gather together to make hundreds of the little packets -- with each person in charge of one aspect of the cooking process -- to hand out to friends, family and neighbors. On New Year's, it's often served with menudo, a tripe and hominy soup that is famously good for hangovers.

Those who live in cities with large Mexican populations shouldn't have much trouble finding restaurants selling tamales to go for New Year's Eve and Day. But gourmands who want the real deal should head to Mexico City, where steamed tamales are sold from vendors on street corners day and night. They can also be found at established restaurants like Flor de Lis or Pujol or tamale specialists like Los Tamales y Algo Mas.

In the Netherlands, fried dough balls called oliebollen are part of welcoming the new year.

Oliebollen, Netherlands

In the Netherlands, fried oil balls, or oliebollen, are sold by street carts and are traditionally consumed on New Year's Eve and at special celebratory fairs. They are doughnut-like dumplings, made by dropping a scoop of dough spiked with currants or raisins into a deep fryer and then dusted with powdered sugar.

In Amsterdam, be on the lookout for Oliebollenkraams, little temporary shacks or trailers on the street selling packets of hot fried oliebollen.

Marzipanschwein or Glücksschwein, Austria and Germany

Austria, and its neighbor to the north, Germany, call New Year's Eve Sylvesterabend, or the eve of Saint Sylvester. Austrian revelers drink a red wine punch with cinnamon and spices, eat suckling pig for dinner and decorate the table with little pigs made of marzipan, called marzipanschwein. Good luck pigs, or Glücksschwein, which are made of all sorts of things, are also common gifts throughout both Austria and Germany.

Vienna bakeries this time of year will be filled with a variety of pig-shaped sweets. Head to Julius Meinl, with more than three floors of gourmet food shopping, cafes and restaurants, to find the most impressive display of pig-shaped Champagne truffles, marzipan and chocolate in a variety of sizes.

Soba noodles, Japan

In Japanese households, families eat buckwheat soba noodles, or toshikoshi soba, at midnight on New Year's Eve to bid farewell to the year gone by and welcome the year to come. The tradition dates back to the 17th century, and the long noodles symbolize longevity and prosperity. In another custom called mochitsuki, friends and family spend the day before New Year's pounding mochi rice cakes. Sweet, glutinous rice is washed, soaked, steamed and pounded into a smooth mass. Then guests take turns pinching off pieces to make into small buns that are later eaten for dessert.

This New Year's Eve, at Manhattan Japanese restaurant En Japanese Brasserie, the chef (and willing customers) will take part in the mochitsuki. The resulting mochi will be served as dessert later in the evening. The restaurant is also serving two kaiseki menus, both featuring soba noodles as a final savory course. At midnight, they will break open a barrel of sake to welcome the New Year.

Variations on the king cake are embraced by many cultures. Some countries partake for New Year's, while in France galettes des roi are eaten on January 6.

King cake, around the globe

The tradition of a New Year's cake is one that spans countless cultures. The Greeks have the Vasilopita, the French the gateau or galette des rois. Mexicans have the Rosca de Reyes and Bulgarians enjoy the banitsa.

Most of the cakes are consumed at midnight on New Year's Eve -- though some cultures cut their cake on Christmas or the Epiphany, January 6 -- and include a hidden gold coin or figure, which symbolizes a prosperous year for whomever finds it in their slice.

Cotechino con lenticchie, Italy

Italians celebrate New Year's Eve with La Festa di San Silvestro, often commencing with a traditional cotechino con lenticchie, a sausage and lentil stew that is said to bring good luck (the lentils represent money and good fortune) and, in certain households, zampone, a stuffed pig's trotter.

The meal ends with chiacchiere -- balls of fried dough that are rolled in honey and powdered sugar -- and prosecco. The dishes find their roots in Modena, but New Year's Eve feasts thrive across the country.

In Poland and Scandinavia, herring is a typical dish for good fortune in the new year.

Pickled herring, Poland and Scandinavia

Because herring is in abundance in Poland and parts of Scandinavia, and because of their silver coloring, many in those nations eat pickled herring at the stroke of midnight to bring a year of prosperity and bounty. Some eat pickled herring in cream sauce, some have it with onions.

One special Polish New Year's Eve preparation of pickled herring, called Sledzie Marynowane, is made by soaking whole salt herrings in water for 24 hours and then layering them in a jar with onions, allspice, sugar and white vinegar. Scandinavians will often include herring in a larger midnight smorgasbord with smoked and pickled fish, pate and meatballs.

Kransekage, Denmark and Norway

Kransekage, literally wreath cake, is a cake tower composed of many concentric rings of cake layered atop one another, and they are made for New Year's Eve and other special occasions in Denmark and Norway. The cake is made using marzipan, often with a bottle of wine or Aquavit in the center and can be decorated with ornaments, flags and crackers.

Those who can't make it to Copenhagen this year for Danish treats should check out Larsen's Danish Bakery in the Ballard neighborhood of Seattle. They have a long-running mail-order business to accommodate kransekage lovers across the country and carefully pack each ring on the tower individually for easy assembly right before your New Year's Eve feast. A 10-ring cake goes for $86; an 18-ring cake is $150.

What are your New Year's dining traditions? Share your favorite dishes in the comments below.

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Gang-rape victim's body to be flown back home later Saturday

SINGAPORE: The body of an Indian woman who died in a Singapore hospital after a brutal gang-rape in New Delhi will be flown back on a chartered plane later Saturday, India's ambassador said.

"The requisite formalities (including the issue of the death certificate) for sending the body to India are being completed," Indian High Commissioner T.C.A. Raghavan told reporters, hours after the woman died of multiple organ failure at the Singapore hospital where she was being treated.

"The deceased and her family members will be flown back to India in a chartered aircraft later this afternoon," Raghavan said.

The flight is expected to arrive in Singapore around 3:00 or 4:00pm. It's understood that the body has been moved to a morgue.

When asked to provide more details on the identity of the victim, Dr Raghavan said the family has asked for their privacy.

Dr Raghavan, however, revealed that her family lives in Delhi and are Hindus. It's understood that those who are in Singapore include her parents and brothers.

He said: "It is natural the family is deeply affected by the loss they have suffered. At the same time, I will say that they have borne this loss with a great deal of fortitude and understanding. They have repeatedly asked me to say how inspired they are by the many messages of support and condolences they have received. And also this reinforces their view that the death of their child will lead to a better future for all women in India and Delhi."

Questions were raised on whether the victim's condition was affected by the flight to Singapore and whether it was the right decision.

Dr Raghavan said that the decision to move to Singapore followed consultations between doctors in India and Singapore, and that it was done with the intention to give the patient the best possible medical care.

- AFP/CNA/ck

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Obama 'modestly optimistic' on fiscal cliff deal

STORY HIGHLIGHTS

• NEW: Congressman says: "America should be embarrassed by its leadership"


• NEW: Senate leader Reid prepares bill requested by President Obama for possible vote


• Pressure is on top two Senate leaders to reach a compromise; next 24 hours crucial


• Obama says he is "modestly optimistic" a deal can be reached

As the fiscal cliff looms, what's your New Year's message to Washington? Go to CNNiReport to share your video.

Washington (CNN) -- A political summit Friday at the White House left it to the Senate's top Democrat and Republican to work out a compromise to avoid the country going over the fiscal cliff, participants said.

Senate Majority Leader Harry Reid, D-Nevada, told reporters that the next 24 hours would be "very important" toward efforts to reach a deal to lessen the harshest impacts of the fiscal cliff, a combination of broad tax hikes and deep spending cuts due to take effect at the start of the new year.

"Whatever we come up with is going to be imperfect. Some people aren't going to like it, some people are going to like it less," Reid said on the Senate floor after the high-stakes meeting with President Barack Obama, other congressional leaders and top administration officials.

Reid's Republican counterpart, Sen. Mitch McConnell of Kentucky, expressed hope that he and Reid could agree on a plan to present to their respective caucuses "as early as Sunday."

Obama said he was "modestly optimistic" that the Senate leaders would be able to forge an agreement, even as he warned "nobody's going to get 100% of what they want."

Absent such a deal, Obama said his latest proposal should be put to a vote. He predicted it would pass the House and Senate with bipartisan support.

Economists warn that continued stalemate could trigger a recession as government spending is slashed, including for the military, and taxes go up on everyone, due to the expiration of lower rates dating to the administration of President George W. Bush.

Diminished hope for a substantial agreement in Washington depressed stock indexes on Wall Street this week despite other encouraging economic news. Consumer confidence has also softened.

Prior to Friday's late afternoon meeting, which lasted just over an hour, a source familiar with the matter said Obama would propose the framework for a scaled-back agreement that he described last week.

In his later remarks, Obama described his plan as holding down tax rates on middle-class Americans -- which he described as family income up to $250,000 -- while letting rates increase for top income brackets. It also would extend unemployment benefits and "lay the groundwork" for economic growth and deficit reduction.

At the very least, Reid said he was preparing legislation for a vote by Monday that would include elements favored by Obama.

"I look forward to hearing any good-faith proposals Senator McConnell has for altering this bill," Reid said in a statement that followed his floor remarks.

The White House meeting came with the Senate back in town for a rare end-of-year appearance before a new Congress convenes January 3. Boehner plans to bring the House back on Sunday.

Senators from both parties earlier expressed opinions on the negotiations that ranged from optimism to frustration.

"When the dust settles and everything is said and done, federal individual income taxes are not going to go up on almost all Americans next year," GOP Sen. Lamar Alexander of Tennessee said.

Democratic Sen. Chuck Schumer of New York told NBC's "Today" show he was "a little more optimistic today" about a deal being reached.

"Sometimes it's darkest before the dawn," Schumer said, noting the renewed engagement by McConnell and House Speaker John Boehner, the top congressional Republicans.

Republican Sen. Bob Corker of Tennessee downplayed Friday's meeting on CBS "This Morning" as a seeming political ploy "to make it look like we're doing something."

"This is a total dereliction of duty at every level," added Corker, who has urged Republicans to compromise on the central issue of letting tax rates increase on top income brackets.

"I've been very surprised that the president has not laid out a very specific plan to deal with this, but candidly Congress could have done the same. And I think the American people should be disgusted," he said.

On Thursday, McConnell vowed his side would not "write a blank check for anything Senate Democrats put forward just because we find ourselves at the edge of the cliff."

Reid, however, argued Republicans undermined a potentially major agreement over the past two years by refusing to compromise on their opposition to higher tax rates for the wealthy.

The principal dispute continues to be over taxes, specifically Democrats' demand to extend most of the tax cuts passed under Bush while allowing higher rates of the 1990s to return on top income brackets. During his re-election campaign, Obama said this would protect 98% of Americans and 97% of small businesses from tax hikes.

Republicans have opposed any kind of increase in tax rates, and Boehner suffered the political indignity last week of offering a compromise -- a $1 million threshold for the higher rates to kick in -- that his GOP colleagues refused to support because it raised taxes and had no chance of passing the Senate.

Democrats have rejected the GOP proposals, which would extend all Bush-era tax cuts and revise prescribed spending cuts, calling them insufficient and saying they would shift too much deficit reduction burden on the middle class.

One possibility is the fiscal cliff takes effect and taxes go up in January, then Congress steps in to bring tax rates back down for at least some people -- allowing them to say they're lowering taxes, even if rates for top income brackets are higher in 2013 than they were in 2012.

Obama and Democrats have leverage, based on the president's re-election last month and Democrats' gains in the House and Senate in the new Congress. In addition, polls consistently show majority support for Obama's position on taxes, and Democrats insist the House would pass the president's plan with Democrats joined by some Republicans if Boehner allowed a vote on it.

However, anti-tax crusader Grover Norquist has vowed to back primary challenges against Republicans who violate his widely signed pledge not to raise taxes. Even if a deal is reached, Norquist predicts more budget showdowns every time the government needs additional money to operate.

The two sides seemingly had made progress early last week on forging a $2 trillion deficit reduction deal that included new revenue sought by Obama and spending cuts and entitlement changes desired by Boehner.

Boehner appeared to move on increased tax revenue, including higher rates on top income brackets and eliminating deductions and loopholes. But his inability to rally all House Republicans behind his plan raised questions about his role and what comes next.

All this has fueled disdain for politicians by many Americans. Such contempt is deserved, said Rep. Steven LaTourette, an Ohio Republican, who is retiring from Congress.

"I think America should be embarrassed by its leadership in D.C.," he told CNN on Friday. "The fact that we have been unable to do things, and instead worried about our next elections. ... I think it's sinful."

What happens to the economy if we go over the cliff?

CNN's Dana Bash, Deirdre Walsh, Ted Barrett, Greg Botelho and Kevin Liptak contributed to this report.

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Police ID man pushed to death at NY subway station

Updated 10:27 PM ET

NEW YORK New York City police have identified a man they say was shoved to his death in front of a subway train by a woman.

Police said Friday that Sunando Sen was pushed from the platform the night before. The 46-year-old Sen was from India and lived alone in Queens.

Investigators identified him through a smartphone and a prescription pill bottle he was carrying when he was struck by a 7 train. His family in India has been notified.

Police are searching homeless shelters and psychiatric units for the woman believed to have pushed him. Witnesses say she was mumbling before she shoved him without warning.

As police sought on Friday to locate the unidentified woman, Mayor Michael Bloomberg urged residents to keep the second fatal subway shove in the city this month in perspective. The news of the horrific death of Sen came as the mayor touted drops in the city's annual homicide and shooting totals.

"It's a very tragic case, but what we want to focus on today is the overall safety in New York," Bloomberg told reporters following a police academy graduation.

The incident happened around 8 p.m. Thursday on the elevated tracks at the 40th Street Station on Queens Boulevard in Sunnyside, CBS Station WCBS reports.

Play Video

Search on for suspect in 2nd subway push death

Police said witnesses saw the woman pacing and mumbling on the platform before taking a seat alone on a wooden bench. Then, as the train approached the station, witnesses said she suddenly shot forward, shoving the unsuspecting man onto the tracks, directly into the path of an oncoming Number 7 train.

The New York Police Department released surveillance video of the suspect running away from the scene. Police said the woman raced down two flights of stairs after the attack and then disappeared onto the crowded street.

Detectives described her as a heavyset Hispanic woman in her 20s, approximately 5-foot-5, with blonde or brown hair. She was last seen wearing a blue, white and grey ski jacket and grey and red Nike sneakers.

The medical examiner said Friday that an autopsy found that Sen died from head trauma.

Commuters on Friday expressed concern over subway safety.

"It's just a really sad commentary on the world and on human beings, period," said Howard Roth, who takes the subway daily.

He said the deadly push reminded him, "the best thing is what they tell you — don't stand near the edge, and keep your eyes open."

The incident marked the second deadly subway push this month. On December 3, police said 58-year-old Ki Suck Han was pushed to his death by 30-year-old Naeem Davis. The two were seen on cell phone video arguing just moments before Han was pushed to his death.

In the most recent incident, witnesses said the victim never encountered his attacker and never saw what was coming.

Anyone with information is asked to call the NYPD's Crime Stoppers Hotline at (800) 577-TIPS. The public can also submit their tips by logging onto Crime Stoppers or texting tips to 274637(CRIMES) then enter TIP577.

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Epic Journey: Did Moses' Exodus Really Happen?

In the Bible, he is called Moses. In the Koran, he is the prophet Musa.

Religious scholars have long questioned whether of the story of a prophet leading God's chosen people in a great exodus out of Egypt and the freedom it brought them afterwards was real, but the similarities between a pharaoh's ancient hymn and a psalm of David might hold the link to his existence.

Tune in to Part 2 of Christiane Amanpour's ABC News special, "Back to the Beginning," which explores the history of the Bible from Genesis to Jesus, on Friday, Dec. 28 at 9 p.m. ET on ABC.

Christian scripture says Moses was content to grow old with his family in the vast deserted wilderness of Midian, and 40 years passed until the Bible says God spoke to him through the Burning Bush and told him to lead his people, the Israelites, out of Egypt. According to tradition, that miraculous bush can still be seen today enclosed within the ancient walls of St. Catherine's Monastery, located not far from Moses' hometown.

But there was another figure in the ancient world who gave up everything to answer the call from what he believed was the one and only true God.

Archaeologists discovered the remains of the ancient city of Amarna in the 1800s. Egyptologist Rawya Ismail, who has been studying the ruins for years, believes, as other archaeologists do, that Pharaoh Akhenaten built the city as a tribute to Aten, the sun.

G.Sioen/De Agostini/Getty Images

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She said it was a bold and unusual step for the pharaoh to leave the luxurious trappings of palace life in Luxor for the inhospitable landscape of Amarna, but it might have been his only choice as the priests from the existing religious establishment gained power.

"The very powerful Amun-Ra priests that he couldn't stand against gained control of the whole country," Ismail said. "The idea was to find a place that had never been used by any other gods -- to be virgin is what he called it -- so he chose this place."

All over the walls inside the city's beautiful tombs are examples of Akhanaten's radical message of monotheism. There is the Hymn to the Aten, which translates, in part, to: "The earth comes into being by your hand, as you made it. When you dawn, they live. When you set, they die. You yourself are lifetime, one lives by you."

PHOTOS: Christiane Amanpour's Journey 'Back to the Beginning'

Some attribute the writing of the hymn to Akhanaten himself, but it bears a striking resemblance to a passage that can be found in the Hebrew Bible: Psalm 104.

"If you compare the hymns from A to Z, you'll find mirror images to it in many of the holy books," Ismail said. "And if you compare certain parts of it, you'll find it almost exactly -- a typical translation for some of the [psalms] of David."

Psalm 104, written a few hundred years later, references a Lord that ruled over Israel and a passage compares him to the sun.

"You hide your face, they are troubled," part of it reads. "You take away your breath, they die, And return to dust. You send forth your breath, they are created, And you renew the face of the earth."

Like the psalm, the Hymn to Aten extols the virtues of the one true God.

"A lot of people think that [the Hymn to Aten] was the source of the [psalms] of David," Ismail said. "Putting Egypt on the trade route, a lot of people traveled from Egypt and came back to Egypt, it wasn't like a country living in isolation."

Ismail believes it is possible that the message from the heretic pharaoh has some connection to the story of Moses and the Exodus, as outlined in the Hebrew Bible.

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2013: A year for big issues in the courts

By Jeffrey Toobin, CNN Senior Legal Analyst

December 27, 2012 -- Updated 1445 GMT (2245 HKT)

Chief Justice John Roberts re-administers the oath of office to Barack Obama at the White House on January 21, 2009.

STORY HIGHLIGHTS

• Jeffrey Toobin: 2013 will see pivotal decisions in several key areas of law


• He says Supreme Court could decide fate of same-sex marriage


• Affirmative action for public college admissions is also on Court's agenda


• Toobin: Newtown massacre put gun control debate back in the forefront

Editor's note: Jeffrey Toobin is a senior legal analyst for CNN and a staff writer at The New Yorker magazine, where he covers legal affairs. He is the author of "The Oath: The Obama White House and the Supreme Court."

(CNN) -- What will we see in 2013?

One thing for sure: The year will begin with Chief Justice John Roberts and President Obama getting two chances to recite the oath correctly.

Jeffrey Toobin

After that, here are my guesses.

1. Same-sex marriage and the Supreme Court. There are two cases, and there are a Rubik's Cube-worth of possibilities for their outcomes. On one extreme, the court could say that the federal government (in the Defense of Marriage Act) and the states can ban or allow same-sex marriage as they prefer. On the other end, the Court could rule that gay people have a constitutional right to marry in any state in the union. (Or somewhere in between.)

CNN Opinion contributors weigh in on what to expect in 2013. What do you think the year holds in store? Let us know @CNNOpinion on Twitter and Facebook/CNNOpinion

2. The future of affirmative action. In a case pending before the Supreme Court, the Court could outlaw all affirmative action in admissions at public universities, with major implications for all racial preferences in all school or non-school settings.

3. Gun control returns to the agenda. The Congress (and probably some states) will wrestle with the question of gun control, an issue that had largely fallen off the national agenda before the massacre in Newtown. Expect many invocations (some accurate, some not) of the Second Amendment.

4. The continued decline of the death penalty. Death sentences and executions continue to decline, and this trend will continue. Fear of mistaken executions (largely caused by DNA exonerations) and the huge cost of the death penalty process will both accelerate the shift.

5. Celebrity sex scandal. There will be one. There will be outrage, shock and amusement. (Celebrity to be identified later.)

Follow @CNNOpinion on Twitter

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The opinions expressed in this commentary are solely those of Jeffrey Toobin.

Part of complete coverage on

December 27, 2012 -- Updated 1445 GMT (2245 HKT)

Jeffrey Toobin says key rulings will likely be made regarding same-sex marriage and affirmative action for public college admissions.

December 28, 2012 -- Updated 0041 GMT (0841 HKT)

Frida Ghitis says that after years in which conservative views dominated the nation, there's now majority support for many progressive stances.

December 28, 2012 -- Updated 0316 GMT (1116 HKT)

John MacIntosh says gun manufacturer Freedom Group should be acquired by public-spirited billionaires and turned into a company with ethical goals.

December 27, 2012 -- Updated 0237 GMT (1037 HKT)

Bassam Gergi and Ali Breland says we should mourn for Newtown's victims, but also take steps to stop the slaughter of young people in inner cities

Get the latest opinion and analysis from CNN's columnists and contributors.

December 26, 2012 -- Updated 1445 GMT (2245 HKT)

Tseming Yang says the 25 major carbon emitters should come to an agreement just among themselves about fighting climate change.

December 25, 2012 -- Updated 1252 GMT (2052 HKT)

David Frum says the National Rifle Association's "Death Wish" style vision of America as a land of armed civilians fending off criminals is a fantasy.

December 27, 2012 -- Updated 0207 GMT (1007 HKT)

Lawrence Krauss says the nation must grieve with the families of Newtown after such a tremendous loss, but religion is not the right framework

December 26, 2012 -- Updated 1408 GMT (2208 HKT)

Jonathan Batiste says jazz is a complex, traditional and utterly contemporary art -- the language that we use to state our deepest, truest feelings

December 26, 2012 -- Updated 1540 GMT (2340 HKT)

Dean Obeidallah says "Zero Dark Thirty" and "Promised Land" present hot button issues that fire up people from the left and right.

December 26, 2012 -- Updated 1344 GMT (2144 HKT)

MADD started as a small grass-roots movement that grew and radically changed society's views on drunk driving, says Candace Lightner.

December 22, 2012 -- Updated 1706 GMT (0106 HKT)

David Gergen says the hope for cooperation is gone in the capital as people spar over fiscal cliff, gun control, and nominations

December 19, 2012 -- Updated 2054 GMT (0454 HKT)

William Bennett says having armed and trained people could help protect schools and other vulnerable places from gun violence

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