President Barack Obama has softened his demand for higher taxes at upper income levels and agreed to curtail future inflation adjustments for recipients of Social Security pensions as part of accelerating talks with Republicans to avoid a “fiscal cliff,” people familiar with the talks said Monday. The maneuvering is aimed at reaching an agreement to rein in deficit spending before an automatic year-end hike in taxes for nearly all wage-earners hits, as well as deep spending cuts in defense and i

MANILA (AFP) ― Asian countries have a unique opportunity to use their new-found prosperity to make progress on social issues and promote fairness, the head of the International Labor Organization said Sunday.Director general Guy Ryder said Asian nations were turning away from reliance on cheap labor and exports to fuel growth, and had realized the value of higher wages and boosting domestic demand.“It is time for Asia to turn its attention to matching its economic success with social progress. I

Italian Prime Minister Mario Monti’s looming resignation this week may threaten progress in fighting the three-year debt crisis even as European leaders wrap up the year with newly won breathing room.Monti, under pressure from euro-area and business leaders to enter the Italian election campaign, plans to quit once parliament passes his budget this week. Former Prime Minister Silvio Berlusconi withdrew support from Monti’s government of non-politicians Dec. 6. The Italian upper house starts deba

Willing to boost spending if needed and keep credit easy so long as inflation stays low

Gas prices will soon drop to their lowest level of the year.By Monday, the national average should fall below the $3.28 a gallon that drivers paid on Jan. 1, according to analysts. The drop is a gift for those hitting the road during what is expected to be the busiest Christmas travel season in six years.Still, it’s more like a stocking stuffer. That’s because for the second straight year, Americans will spend a record amount on gasoline. The government estimates that gas averaged $3.63 a gallon

European Union car sales fell to a 19-year low, with French companies PSA Peugeot Citroen and Renault SA and Italian competitor Fiat SpA posting the biggest drops, as a recession in countries using the euro hurt demand.Eleven-month registrations in the 27-nation EU fell 7.6 percent to 11.3 million vehicles, the lowest figure for the period since 1993, the Brussels-based European Automobile Manufacturers’ Association, or ACEA, said today in a statement. The decline was propelled by a 10 percent p

Warren Buffett, the billionaire chairman of Berkshire Hathaway Inc., told the Allentown Morning Call that the Pennsylvania community is “our kind of place” for investing in a newspaper. Buffett, who has spent more than $340 million on 80 newspapers, was asked by the publication if he would consider purchasing it. The Morning Call is owned by Tribune Co., which may put dailies up for sale as the company emerges from bankruptcy, people familiar with the matter said last week. “We haven’t heard any

The Federal Reserve sent its clearest signal to date Wednesday that it will keep interest rates super-low to support the U.S. economy even after the job market has improved significantly.The Fed said it plans to keep its key short-term rate near zero until the unemployment rate reaches 6.5 percent or less _ as long as expected inflation remains tame. Unemployment is now 7.7 percent.That plan adds detail to what the Fed had said before: that it expects to keep the rate low until at least mid-2015

The Federal Reserve will spend $45 billion a month to sustain an aggressive drive to keep long-term interest rates low. And it says it plans to keep a key short-term rate near zero until unemployment drops below 6.5 percent.The policies are intended to help an economy that the Fed says is growing only modestly with 7.7 percent unemployment in November.Stocks and bond yields rose after the Fed's statement was released Wednesday after its final policy meeting of the year. The Dow Jones industrial

VIENNA (AP) ― Tough decisions await OPEC oil ministers sitting down this week for a policy meeting. The 12-nation cartel has to deal not only with how much crude to produce for the next few months but must also fill a senior position coveted both by Saudi Arabia and archrival Iran.With world supplies ample, there is some rationale for curbing output when the ministers meet Wednesday in Vienna.Oil inventories in the major industrialized countries are high, with an energy boom in the United States