Christie Filmed Shouting at Heckler on Jersey Boardwalk

By Terrence Dopp - Jul 7, 2012 3:10 AM GMT+0700

New Jersey Governor Chris Christie was filmed shouting at a detractor yesterday on the Seaside Heights boardwalk and the footage was posted to gossip website TMZ.com.

The Republican, who has made it clear he’s no fan of the “Jersey Shore” reality-show cast for what he says is loud and obnoxious behavior, was seen in the 29-second video in a heated exchange with a person who criticized his education policies, the website reported.

Christie, who clutches an ice cream cone during the video, was with his family on the boardwalk, TMZ reported. The governor, 49, at one point marches toward the critic as an entourage follows him.

“You’re a real big shot -- keep shooting your mouth off,” Christie, who travels with a cadre of state troopers, tells the man. “You’re a real big shot. Keep walking away. Big shot.”

Michael Drewniak, a spokesman for Christie, didn’t immediately return an e-mail seeking comment.

Christie, who took office in January 2010, has said he once asked New York Governor Andrew Cuomo to take back the cast of the “Jersey Shore,” which he said is made up of New York residents who reinforce the worst stereotypes of the Jersey Shore as a playground.

To contact the reporter on this story: Terrence Dopp in Trenton at tdopp@bloomberg.net

To contact the editor responsible for this story: Stephen Merelman at smerelman@bloomberg.net

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Particle Discovery Brings Scientists Close to Understanding Mass

By Thomas Mulier and Jason Gale - Jul 5, 2012 5:01 AM GMT+0700

Scientists seeking to explain the origins of matter discovered a particle that may support a decades-old theory of physics, bringing people closer to understanding unseen parts of the universe.

The observed particle is the heaviest boson ever found, said Joe Incandela, spokesman for one of the experiments at CERN, the European Organization for Nuclear Research, at a seminar yesterday at its Geneva headquarters. Scientists stopped short of claiming they have found the elusive Higgs boson, a theoretical particle that could explain where mass comes from.

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A graphic showing a collision of particles at the Compact Muon Solenoid experience, at CERN, in Geneva, on December 13, 2011. Photographer: Fabrice Coffrini/AFP/Getty Images

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Spokesman for one of the experiments at CERN Joe Incandela, right, gestures next to CERN Director Rolf-Dieter Heuer at a press conference in Meyrin near Geneva. Photographer: Fabrice Coffrini/AFP/Getty Images

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U.K. Physicist Peter Higgs said, "For me, it’s really an incredible thing that it’s happened in my lifetime.” Photographer: Fabrice Coffrini/AFP/Getty Images

“As a layman, I think I would say ‘we have it,’” said Rolf-Dieter Heuer, director of CERN, at a press conference in Geneva. It will take at least three to four years of research to fully understand the properties of the observed particle, Heuer said.

The announcement brings humankind closer to answering a millennia-old question that the ancient Greeks wrestled with: what is matter made of? The particle is a key to the Standard Model, a theory explaining how the universe is built, and its existence would help scientists gain a better understanding of how galaxies hold together. It also could open a door to exploring other parts of physics such as superparticles or dark matter that telescopes can’t detect.

‘Sings and Dances’

The new boson “sings and dances like” the theoretical particle, said Pauline Gagnon, a researcher on the Atlas set of experiments in Geneva, in an interview in Melbourne, where she was attending the bi-annual International Conference on High Energy Physics. “There is no doubt it comes from a different signal, different channels, with different experiments. We just need in the next few months with more data to ascertain exactly what are the properties of this particle to see if it is exactly the Standard Model Higgs boson or some variation of it."”

Particle physics is the study of the elemental building blocks that make up matter. These particles, with names such as quark, fermion, lepton and boson, can’t be subdivided. They exist and interact within several unseen ‘‘fields’’ that permeate the universe.

The field that generates mass for objects is named for U.K. physicist Peter Higgs, who in the 1960s was one of the first scientists to outline a working theory on how elemental particles achieve mass. Higgs was one of four of the theorists attending yesterday’s meeting in Geneva. He wiped a tear from his eye as the findings were presented.

Champagne for Higgs

‘‘For me, it’s really an incredible thing that it’s happened in my lifetime,” Higgs said in Geneva. In a statement, he said he would be “asking my family to put some champagne in the fridge.”

Higgs wrote that some particles -- such as photons, the basic unit of light -- don’t interact with the Higgs field, and thus don’t achieve mass. Most others do.

To put it another way, if the Higgs field were a Hollywood party, a photon would be the unknown actor who hurries through without gaining a bit of interest from others in the room. Other particles would be more like Angelina Jolie, drawing crowds of hangers-on as they move through the party.

It gets increasingly harder to stop such a cluster from moving forward and more difficult to get it moving again once it’s stopped, meeting one definition of mass.

Scientists are trying to prove the existence of the Higgs field by displaying a physical effect for the Higgs boson, a particle that lives for less than a trillionth of a second and is an excitation, or force, within the Higgs field.

Digging Deeper

Providing indirect evidence that the Higgs field exists will allow scientists to dig even deeper into the secrets of our existence, said Mark Wise, a professor of physics at California Institute of Technology.

“In some sense, this is the beginning,” Wise said of finding the boson. “Because we want to know all its properties.”

The data presented yesterday are the latest from the $10.5 billion Large Hadron Collider, a 27-kilometer (17-mile) circumference particle accelerator buried on the border of France and Switzerland. CERN has 10,000 scientists working on the project, in which billions of subatomic particles are hurled at each other at velocities approaching the speed of light.

The collider will provide more data later this year, giving scientists a more complete picture of the observed new particle. Researchers will try to determine whether it is a Higgs boson, the particle predicted by the Standard Model.

Like Columbus

“Very few physicists would privately argue that this is not a Higgs particle,” said Themis Bowcock, head of particle physics at the University of Liverpool, in a statement. “For physicists, this is the equivalent of Columbus discovering America.”

A more exotic version of the Higgs particle could help scientists understand the 96 percent of the universe that remains obscure, since observable matter only represents 4 percent of the total, CERN said.

To declare the boson is discovered, physicists use the statistical standard of “five sigma,” meaning that there should only be a 1 in 3.4 million chance that a sighting would be due to chance. The observations of the new particle have a five-sigma level of significance, Incandela said.

“The implications are very significant and it is precisely for this reason that we must be extremely diligent in all of our studies and cross-checks,” he said.

To contact the reporters on this story: Thomas Mulier in Geneva at tmulier@bloomberg.net; Jason Gale in Singapore at j.gale@bloomberg.net

To contact the editor responsible for this story: Phil Serafino at pserafino@bloomberg.net

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Mammoth Lakes, California, Files for Bankruptcy

By Steven Church and James Nash - Jul 4, 2012 3:38 AM GMT+0700

Eddy Joaquim/Getty Images

The biggest creditor listed in the Mammoth Lakes case is Mammoth Lakes Land Acquisition, which won a $30 million judgment against the town that has since grown to $43 million with interest and legal fees.

Mammoth Lakes, the High Sierra mountain resort, filed for bankruptcy to shelter itself from a $43 million legal judgment, becoming the second California municipality in a week to seek court protection from creditors.

Mammoth Lakes listed assets of more than $100 million and debt of more than $50 million in papers filed today in Sacramento, California, under Chapter 9 of the U.S. Bankruptcy Code, which is reserved for public entities such as cities, counties and special taxing districts.

The town council voted to seek bankruptcy protection after its largest creditor, Mammoth Lakes Land Acquisition, won a court order requiring the town to pay the judgment by June 30, according to a statement on the town’s website. Under Chapter 9, a municipality can halt court actions against it while seeking to reorganize its finances. The tactic is common among corporations that file so-called Chapter 11 bankruptcies.

“Bankruptcy, unfortunately, is the only option that the town is left with,” town officials said in the statement.

The filing comes six days after the northern California city of Stockton filed for bankruptcy with plans to try to impose cuts on bondholders and employees. Vallejo, California, filed for bankruptcy in 2008 and used court protection to cut retiree benefits, renegotiate labor contracts and reduce the interest paid to lenders. The city exited bankruptcy last year.

Biggest Creditor

The biggest creditor listed in the Mammoth Lakes case is Mammoth Lakes Land Acquisition, which won a $30 million judgment against the town that has since grown to $43 million with interest and legal fees. The California Public Employees’ Retirement System, or Calpers, the largest U.S. pension fund, is the second-largest unsecured creditor, owed $4.2 million.

Mammoth Lakes, a ski resort community of 8,200 near Yosemite National Park, has an annual budget of $19 million.

Mammoth Lakes Land Acquisition refused to participate in mediation between Mammoth Lakes and its creditors, according to a statement on the town’s website. That mediation, required under California law, is designed to help cities and counties avoid bankruptcy.

The company sued the town in 2006 and accused it of breaching a development agreement allowing the company to build homes, retail space, hangars and other structural improvements near the Mammoth Yosemite Airport.

In 2008, a state court awarded the company $30 million, which the town appealed. An appeals court sided with the developer, and the California Supreme Court refused to hear the case last year.

Compromise Sought

The company has tried to reach a compromise with the town, said Daniel L. Brockett, a partner at Quinn Emanuel Urquhart & Sullivan LLP in New York, which represented the developer.

The town rebuffed the developer’s offer for $2.7 million annual payments over 30 years, Brockett said in a telephone interview.

“There was no point in us participating in the mediation,” he said. “The mediation was simply so they could check off a box before going to bankruptcy court.

‘‘They just keep putting their heads in the sand and hoping that some guy in a black robe will bail them out.’’

The case is In re Town of Mammoth Lakes, 12-32463, U.S. Bankruptcy Court for the Eastern District of California (Sacramento).

To contact the reporters on this story: Steven Church in Wilmington, Delaware at schurch3@bloomberg.net; James Nash in Los Angeles at jnash24@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net

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Asian New Money Fights Russia, Constable Tops $133 Million Sale

By Scott Reyburn - Jul 4, 2012 6:00 AM GMT+0700

Paintings by Constable and Rembrandt starred at a $133 million auction in London last night that set a record total for any sale of Old Masters.

Constable’s 1824 landscape “The Lock” sold for a top price of 22.4 million pounds ($35 million), a record for the artist at auction, as Christie’s International found buyers for 84 percent of 64 lots.

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"The Lock" by John Constable. The 1824 landscape was sold by Christie's International in its auction of Old Master and British paintings in London on July 3. Source: Christie's Images Ltd. 2012 via Bloomberg.

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"A Bust of a Man in a Gorget and Cap" by Rembrandt Harmensz van Rijn. The 1626-27 panel painting was one of 15 Dutch Old Masters from the collection of Pieter and Olga Dreesmann being sold by Christie's International in London on July 3. Source: Christie’s Images Ltd. 2012 via Bloomberg.

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"Mars and Venus Surprised by Vulcan," a 1610 oil-on-copper painting by Dutch Mannerist artist Joachim Anthonisz Wtewael. It was bought by a telephone bidder for 4.6 million pounds with fees in an auction of Old Master paintings at Christie's International in London on July 3 2012. Source: Christie's Images Ltd. 2012 via Bloomberg

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"The Kiss" by Rodin. This bronze version of the marble group, cast during the artist's lifetime, was sold by the Sladmore Gallery for $2 million at the Masterpiece fair in London, running through July 4, 2012. Source: Sladmore Gallery via Bloomberg

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The pair of JAR earrings was sold for $500,000 by the dealers Symbolic & Chase at the Masterpiece fair in London. The event, now in its third year, runs through July 4, 2012. Source: Symbolic & Chase via Bloomberg

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A painting of a man with horse in a landscape by George Stubbs. The 1768 work is being offered by the Bond Street dealers Colnaghi, priced at about 1 million euros, in the Master Paintings promotion in London, running through July 6, 2012. Source: Colnaghi via Bloomberg

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An pencil study of the U.S. writer James Lord by Alberto Giacometti. This 1954 work is being exhibited by the St. James's-based dealer Stephen Ongpin in the Master Drawings promotion in London, running through July 5, 2012. Source: Stephen Ongpin Fine Art via Bloomberg

In recent years, totals at auctions of historic European paintings -- traditionally the most expensive of artworks -- have lagged behind those at sales of Impressionist and contemporary pieces. Demand last night was bolstered by new bidders from emerging economies, said Christie’s, which had showed some of the pictures in Doha, Moscow, New York, Hong Kong and Amsterdam.

“We’re seeing the internationalization of the Old-Master market,” Jussi Pylkkanen, president of Christie’s Europe, said after the sale. “Asian and Russian clients are now buying.”

Christie’s confirmed that an Asian client was the lone telephone bidder for the 1626-27 Rembrandt painting “A Man in a Gorget and Cap,” at 8.4 million pounds. The work was one of 11 paintings being sold by Pieter Dreesmann, the son of the late Dutch department-store heir Anton Dreesmann.

All the Dreesmann lots sold, raising 25.3 million pounds. Most had been acquired within the last 15 years from the Maastricht-based dealer, the late Robert Noortman.

Taste Tribute

“It was a tribute to Noortman’s taste,” the Paris-based dealer Robert Haboldt said. “The market is good for quality pictures in fine condition that haven’t been overestimated.”

The Constable was the most highly valued lot, at 20 million pounds to 25 million pounds, and was consigned by Baroness Carmen ‘Tita’ Thyssen-Bornemisza, a former Miss Spain, who became Baron Hans Thyssen-Bornemisza’s fifth wife in 1985. It had been acquired by him at Sotheby’s (BID) in 1990 for 10.8 million pounds, then a record for any British painting sold at auction.

The work was guaranteed to sell courtesy of a third party “irrevocable bidder” that dealers identified as one of the auction house’s Russian clients. There were no other bidders and the unidentified guarantor was the buyer, Christie’s said.

“There just aren’t any private collectors for this kind of picture at the moment,” the New York-based dealer Richard L. Feigen said. “The Constable sold for the price of a second-tier Warhol. It’s ridiculous.”

The event raised 85.1 million pounds with fees against an estimate of 61.8 million pounds to 88.3 million pounds, based on hammer prices. It surpassed the 68.4 million-pound previous high for an Old Master auction at Christie’s in December 2009.

Masterpiece Sale

Elsewhere, a Rodin bronze of “The Kiss” was snapped up at the Masterpiece London fair.

Now in its third year, Masterpiece is billed as the U.K. capital’s equivalent of the European Fine Art Fair in Maastricht, with the addition of luxury brands such as Rolls- Royce cars, Ruinart champagne and Vacheron Constantin watches.

More than 160 dealers are exhibiting in a temporary structure on the Chelsea Embankment. Sheikh Saud al Thani of Qatar and Charles Saatchi were among 5,175 VIPs at the preview.

Sladmore Gallery sold a bronze of “The Kiss,” cast during Rodin’s lifetime, to a Swiss collector for $2 million. A Middle East client bought a pair of earrings by the Parisian jeweler JAR from Symbolic & Chase for $500,000.

A hand-signed 1895 lithograph of Edvard Munch’s “The Scream” -- one of just 26 made -- is being offered by the Oslo- based dealer Kaare Berntsen, priced at 1.7 million pounds. The fair runs through tomorrow.

Pace Space

Pace Gallery is the latest New York contemporary-art dealership to announce that it’s opening a London space to coincide with the Frieze Art Fair in October.

It has commissioned the U.K. architect David Chipperfield to renovate a gallery in 6 Burlington Gardens, part of the Royal Academy of Arts. The space was previously occupied by Christie’s dealership, Haunch of Venison.

Pace joins fellow New York dealers Per Skarstedt, Michael Werner and David Zwirner scheduling to open spaces for Frieze.

(Scott Reyburn writes about the art market for Muse, the arts and culture section of Bloomberg News. Opinions expressed are his own.)

Muse highlights include James Russell on architecture and Hephzibah Anderson on books.

To contact the writer on the story: Scott Reyburn in London at sreyburn@hotmail.com.

To contact the editor responsible for this story: Manuela Hoelterhoff at mhoelterhoff@bloomberg.net.

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McDonald’s New CEO Focuses on Chicken Amid Shaky Economy

By Leslie Patton - Jul 3, 2012 3:38 AM GMT+0700

McDonald’s Corp. (MCD)’s new chief executive officer is playing chicken with the menu.

As Don Thompson, 49, steps into the CEO role at the world’s largest restaurant chain, customers may see more new chicken items instead of beef. Thompson is pulling from McDonald’s 160- item recipe book, which includes bone-in chicken wings and cashew teriyaki salads with chicken, to sell new food and attract cash-conscious consumers amid a shaky global economy. It’s a “tremendous opportunity,” Thompson said during a consumer conference on May 30.

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McDonald's Corp. chicken selects in San Francisco. Photographer: David Paul Morris/Bloomberg

“Some great examples include our large wrap in Europe and snack items like Chicken McBites,” he said. “Our customers have given us permission to stretch our brand, so we are entering new categories with new products.”

McDonald’s is looking to draw budget-minded Americans with chicken items, which can be priced lower than other proteins, according to Bryan Elliott, an analyst at Raymond James & Associates in St. Petersburg, Florida. “The consumer is expressing some recent signs of distress” and chicken costs are “cheap relative to beef right now by a lot,” he said.

McDonald’s, along with other fast-food operators, is facing government austerity programs in Europe, declining consumer confidence in the U.S. and slowing economic growth in Asia. Sales at McDonald’s stores open at least 13 months rose 3.3 percent worldwide in May, trailing analysts’ estimates for growth of 5.2 percent.

McDonald’s fell 0.5 percent to $88.08 at the close in New York. The company’s shares have slumped 12 percent this year, compared with a 3 percent gain for the Bloomberg U.S. Quick- Service Restaurant Index. (BNUSQSVR)

Healthier Perception

Chicken also is “perceived to be healthier,” Elliott said. “That could certainly be a factor in their thinking.”

A Big Mac has 550 calories, while a six-piece order of Chicken McNuggets has 280 calories.

Last week, the Oak Brook, Illinois-based company began selling 410-calorie Spicy Chicken McBites in the U.S. At the same time, Americans are expected to eat more poultry. Chicken consumption in the U.S. will increase 1.7 percent to 82 pounds (37 kilograms) a person in 2013, while beef consumption may decline 2.2 percent next year to 54.5 pounds, according to data from the U.S. Department of Agriculture.

Thompson, who introduced Americans to McCafe specialty coffees and smoothies, started at McDonald’s 22 years ago as an electrical engineer. He’s managed regions including Denver, San Diego and the Midwest, and was president of McDonald’s USA from 2006 to 2010, before being named chief operating officer. After Jim Skinner, the previous CEO, Thompson was the company’s highest paid executive last year -- making $4.07 million, including an $829,000 salary.

Strategic Plans

“I’ve kind of led a lot of strategic planning and initiatives,” Thompson said during a telephone interview earlier this year. He brought McCafe drinks from Australia to the U.S. in 2009 and is now introducing them in Canada. As COO, he also led remodeling efforts, added double-lane drive-throughs to stores and extended restaurant hours -- about 40 percent of U.S. locations are open 24 hours a day.

The chain has introduced snack wraps, 290-calorie oatmeal and McCafe fruit smoothies during the past five years to appeal to more health-conscious consumers and draw afternoon traffic. McDonald’s is also promoting chocolate-dipped ice cream cones and s’mores pies for a limited time in the U.S. and may test new dessert items this year, Phillip Juhan, an analyst at BMO Capital Markets in Atlanta, said in an interview.

“Dessert is going to be an area of opportunity for them and one that they’re going to push” at U.S. stores, he said.

Recipe Book

McDonald’s recipe book “can be a core strength, but it can also be a detriment if you get to be too broad with your menu,” Darren Tristano, executive vice president at Chicago-based researcher Technomic Inc., said in an interview. They have to make sure that new food can be made quickly at thousands of locations, he said.

There is no change from McDonald’s strategy -- the company’s so-called Plan to Win, Thompson said in the interview.

“A transition in leadership is not a change in strategy at McDonald’s,” Thompson said.

McDonald’s has more than 33,500 stores worldwide, of which about 80 percent are franchised.

To contact the reporter on this story: Leslie Patton in Chicago at lpatton5@bloomberg.net

To contact the editor responsible for this story: Robin Ajello at rajello@bloomberg.net

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Limits on Spending Power Seen as Health Ruling’s Legacy

By Bob Drummond - Jul 2, 2012 5:00 AM GMT+0700

The Supreme Court decision upholding President Barack Obama’s health-care law has drawn attention for limiting Congress’s authority over interstate commerce, yet constitutional scholars say its biggest impact may be a curb on lawmakers’ ability to alter state Medicaid funding.

The justices on June 28 upheld the core of the Patient Protection and Affordable Care Act, which says Americans must have health insurance or pay a penalty. The court ruled that while Congress doesn’t have power under the Constitution’s Commerce Clause to make Americans buy health policies, it can tax people who don’t have coverage.

While the rest of the health-care decision was decided on 5-4 votes among the justices, a 7-2 majority said that while Congress may put conditions on the use of money provided for expanded Medicaid programs, it couldn’t take away existing Medicaid funding from states that don’t participate.

“The holding on the Medicaid expansion could be significant,” said Jenny Martinez, a Stanford University law professor. “It could limit the federal government’s ability to change or expand spending programs once they have been in place for a while and have reached a significant scale.”

Martinez said that the justices’ Commerce Clause finding probably wouldn’t be far-reaching. “There aren’t so many laws, after all, that are similar to the Affordable Care Act in regulating so-called inaction,” she said in an e-mail.

Claim Validated

Congress’s authority to regulate interstate commerce provides the constitutional foundation for many federal laws, creating high stakes whenever the issue hits the Supreme Court.

Opponents of the health-care law said after the ruling that, while they failed to derail the insurance requirement, the section of the high court’s decision on the commerce power represented a victory in a long-running legal argument over limits on Congress’s regulatory authority.

The ruling “validates our claim that a congressional power to compel that all Americans engage in commerce was a constitutional bridge too far,” Georgetown University law professor Randy Barnett said in a statement.

While the court ultimately upheld the law, the decision “is a tremendous victory for re-establishing constitutional limits on the power of the federal government,” Wisconsin’s Republican Attorney General J.B. Van Hollen said in a statement.

‘Modest Limitation’

Still, the specific limits outlined in the health-care decision -- that Congress can’t make Americans buy something they don’t want -- may not do much to tie the government’s hands down the road, University of Michigan law professor Richard Friedman said.

That “modest limitation” on Congress’s power to regulate interstate commerce is followed, in Chief Justice John Roberts’s decision, by a constitutional road map showing lawmakers how they can use the government’s taxing authority get around it, Friedman said in an e-mail.

“All it really does is say that the commerce power doesn’t authorize Congress to require people to buy goods or services -- but this is the first time Congress has felt the need to do so,” he said. “If the need should ever arise again -- it’s highly unlikely that Congress will ever feel the need to require people to buy broccoli -- Congress can achieve much of the same result by imposing a tax, and making sure it looks like a tax.”

Gun to Head

The separate section of the decision -- in which Roberts wrote that Congress can’t use federal funding as a “gun to the head” to force states to expand Medicaid eligibility -- “is the most important part of the decision” in terms of future implications, said Anne Joseph O’Connell, a law professor at the University of California at Berkeley.

Justices Stephen Breyer and Elena Kagan, two Democratic appointees, joined the five justices picked by Republican presidents in putting a new restriction on Congress’s spending power.

“It appears that seven justices have come to the conclusion that some federal grants to the states have become such an integral part of our political system that threatening to withhold them has gone beyond Congress merely putting conditions on money that it offers and crossed the line into coercion,” Friedman said.

While the health-care law, designed to expand health- insurance coverage to millions of uninsured Americans, is the only time the federal government has required people to buy something, Congress often requires state and local governments to comply with policy restrictions as a condition for receiving federal money. Courts have generally given the U.S. government leeway to attach strings dictating the ways that federal dollars can be spent.

Drinking Age

The Supreme Court in 1987 upheld a law that withheld some federal highway funding from states that didn’t raise their legal drinking age to at least 21. The court in that case said conditions on federal funding could, hypothetically, become so pervasive that state governments had no realistic choice but to comply -- a situation that could infringe state sovereignty. The health-care decision marked the first time the justices actually held that a federal program was too coercive.

“This is the first time that they put any teeth” into what previously had been a largely academic debate about limits on Congress’s spending power, Jesse Choper, a law professor at the University of California at Berkeley, said in a telephone interview. “In many ways that is the most significant part of the decision.”

Title IX

Congress has used conditions on federal funding as a policy tool in many areas. The law known as Title IX, for example, says that schools getting federal money must provide equal athletic opportunities for women. Some federal funding for schools and libraries requires them to install Internet filters to block obscene material. The No Child Left Behind law said states had to implement specific education reforms as a condition for getting federal funds.

“The inability to cut down on existing programs in order to force states to take on new responsibilities does indicate that, in federal-state relations, the Congress has fewer powers than most had supposed,” Richard Epstein, a professor at New York University, said in an e-mail.

While restricting Congress’s legal reach under its commerce and spending authority, the high court ultimately upheld the insurance requirement under the constitutional power to levy taxes.

That holding, in fact, “could lead to a greater expansion of federal power than if they had upheld it under the Commerce Clause,” New York University law professor Barry Friedman said in a telephone interview. The court struck down “an expansion of the commerce power that wasn’t going to be used very often” and, in its place, backed a broad interpretation of what Congress can accomplish with taxes.

To contact the reporter on this story: Bob Drummond in Washington at bdrummond@bloomberg.net

To contact the editor responsible for this story: Steven Komarow at skomarow1@bloomberg.net

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Islamist Mohamed Mursi Elected Egyptian President

By Mariam Fam and Tarek El-Tablawy - Jun 25, 2012 1:11 AM GMT+0700

The Muslim Brotherhood’s Mohamed Mursi was elected Egypt’s first Islamist civilian president, capping an acrimonious race that divided a nation whose economy is reeling and where the military has curbed his authority.

Mursi, 60, defeated Ahmed Shafik, who served as Hosni Mubarak’s last premier, election commission head Farouk Sultan said in a televised press conference. Mursi won 13.2 million votes or 51.7 percent, beating Shafik who garnered 12.3 million votes or almost 48.3 percent, Sultan said.

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Newly-elected President Mohamed Mursi delivers a speech in Cairo on Sunday. Source: Egypt State TV via The Associated Press

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Muslim Brotherhood candidate Mohamed Mursi waves after casting his ballot at a polling station in the city of Zagazig on June 16, 2012. Photographer: Marwan Naamani/AFP/Getty Images

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Egyptians celebrate the election of their new president the Muslim Brotherhood's Mohamed Mursi in Tahrir Square. Photographer: Daniel Berehulak/Getty Images

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Egyptians celebrate the election of their new president Mohamed Mursi in Cairo's Tahrir Square on June 24. Photographer: Daniel Berehulak/Getty Images

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Egyptians celebrate the election of their new president, the Muslim Brotherhood's Mohamed Mursi in Tahrir Square. Photographer: Daniel Berehulak/Getty Images

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The crowd carries a Muslim Brotherhood supporter overcome by emotion as Egyptians celebrate the election of their new president Mohamed Mursi in Tahrir Square on Sunday. Photographer: Daniel Berehulak/Getty Images

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Egyptians celebrate the election victory of the Muslim Brotherhood's Mohamed Mursi in Cairo's Tahrir Square. Photographer: Khaled Desouki//AFP/Getty Images

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Fireworks above Cairo's Tahrir Square as Egyptians celebrate the election victory of the Muslim Brotherhood's candidate Mohamed Mursi. Photographer: Khaled Desouki/AFP/Getty Images

The announcement drew an uproar of cheers from tens of thousands gathered in Cairo’s Tahrir Square where supporters of the Brotherhood had been rallying for the past week against the ruling military council. In the Hamas-ruled Gaza Strip, backers of that Islamist movement fired celebratory shots in the air and hundreds waved the Egyptian flag.

“The Brotherhood wants to have a stronger presidency, and they are going to use their popular mandate and their democratic legitimacy now to aggressively push against” the ruling military council, said Shadi Hamid, director of research at the Brookings Doha Center. “That’s a key struggle to watch.”

Second Choice

Mursi was only nominated by the Brotherhood after it became apparent that its first choice, chief strategist Khairat el- Shater, was going to be disqualified because of an electoral technicality. Mursi and Shafik both claimed victory immediately after the June 16 and 17 runoff vote, sparking a week of tension in a country that has seen little stability since Mubarak’s ouster in February 2011.

Before the announcement, the military council boosted its authority at the expense of the presidency after a court ordered the dissolution of the Islamist-dominated parliament. A decree granted the military legislative powers and the ability to play a role in shaping a new constitution. The military defended its moves as being in the interests of national security.

“The Egyptian people want a real president and not a figurehead,” Muslim Brotherhood spokesman Mahmoud Ghozlan said in a telephone interview after the announcement. “The Egyptian people and the Muslim Brotherhood are keen on restoring the president’s authorities and thus are out there on the streets for the decree to be canceled.”

Ahead of the release of the results, officials boosted security across the country as tens of thousands of Mursi’s supporters gathered in Tahrir Square, the epicenter of last year’s uprising. Some businesses let their employees leave early amid worries that the outcome would trigger unrest. Official results were originally due to be released on June 21 before being postponed amid fraud allegations from the two candidates.

Military Confrontation

The military’s moves raised the possibility of a power struggle between the army and the Brotherhood after Mursi’s victory. Tensions marring the country’s transition have scared away foreign investors and tourists and hampered efforts to secure a $3.2 billion loan from the International Monetary Fund.

Israel’s government said it “appreciates the democratic process in Egypt and respects the results” of the election. “Israel looks forward to continuing cooperation with the Egyptian government on the basis of the peace treaty between the two countries, which is a joint interest of both peoples,” the office of Prime Minister Benjamin Netanyahu said today in a text message to journalists.

In Gaza, Hamas leader Mahmoud Zahar said “the loser in this battle is Israel.”

Power Struggle

Mursi’s win is unlikely to settle the longer-range challenge of the Brotherhood’s power struggle with the military and how that will play out in the country’s push to stabilize its economy and its political situation.

“There are still a lot of unknowns for the market, which will be looking for direction from the street, the presidency and progress by the constitutional committee,” Wael Ziada, head of research at Cairo-based EFG-Hermes Holding SAE, said by phone. “A lot will depend on public acceptance of the dissolution of parliament and the constitutional declaration after Mursi’s win.”

Mursi, a U.S.-trained engineer, inherits an economy that has struggled to recover since the revolt last year, as tourists and investors stayed away.

Bond Yields

The yield on Egypt’s 5.75 percent dollar bonds due in 2020 soared the most last week since they were sold in April 2010. The rate jumped 97 basis points to 7.87 percent in the week that ended June 22, according to prices compiled by Bloomberg. That included a 52 basis-point surge on the last day of the week.

The Arab country’s five-year credit default risk jumped 68 basis points last week to 723, the highest level since December 2008, according to CMA, which is owned by CME Group Inc. and compiles prices from the privately negotiated market. Egypt is among the 10 riskiest credits in the world.

“The new president arrives in a total institutional vacuum and in a seat essentially devoid of powers,” said Philippe Dauba-Pantanacce, Dubai-based senior economist at Standard Chartered Plc. “There is no constitution to define the presidential attributions, allocate and distinguish the executive from the legislative powers.”

The generals say they are committed to transferring rule to the new civilian president by the end of the month. Their critics charge they have tightened their grip in what amounts to a coup and will not cede meaningful power.

Mursi cast himself as the “revolutionary” candidate in the runoffs against Shafik, a former air force pilot and civil aviation minister, who ran on a law and order platform. He also tried to allay fears by some Christians and secular Muslims who say they were concerned that the Brotherhood may monopolize power or curb freedoms.

“The country is split into two,” said Teymour El-Derini, Cairo-based director of Middle East and North Africa sales trading at Naeem Brokerage. “The new president has to make everyone happy. There won’t be much patience.”

To contact the reporters on this story: Mariam Fam in Cairo at mfam1@bloomberg.net; Tarek El-Tablawy in Cairo at teltablawy@bloomberg.net

To contact the editor responsible for this story: Andrew J. Barden at barden@bloomberg.net

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Pelosi Joins Cantor Among Wealthiest U.S. House Leaders

By Heidi Przybyla - Jun 15, 2012 1:41 AM GMT+0700

House Minority Leader Nancy Pelosi and her Republican counterpart, Majority Leader Eric Cantor, are the wealthiest members of the U.S. House leadership, according to financial disclosure forms.

Pelosi, 72, of California tops the list of House leaders, with $40 million to $187 million in financial assets she reports with her husband, San Francisco commercial real estate investor Paul Pelosi. Most of their assets are listed as rental properties in California and partnership income in companies including investment management and restaurants.

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House Minority Leader Nancy Pelosi in the Capitol Visitor Center. Photographer: Tom Williams/CQ Roll Call/Getty Images

Cantor, 49, of Virginia listed financial assets including stocks and real estate holdings valued at almost $4 million to $9.6 million on his annual financial disclosure statement released today.

In the Senate, Minority Leader Mitch McConnell of Kentucky stands far above all his leadership counterparts, listing assets valued between at least $9.9 million and $44.5 million. Much of the wealth is held by his wife, Elaine Chao, who served as labor secretary throughout former President George W. Bush’s eight years in office.

Arizona Senator Jon Kyl, the chamber’s second-ranking Republican, reported assets between $467,000 and $1.08 million, with the bulk of it in individual retirement accounts.

Domino’s Pizza

Among Cantor’s biggest stock holdings is an investment of $500,000 to $1 million in Domino’s Pizza Inc. (DPZ) His wife, Diana, a former Goldman, Sachs & Co. (GS) vice president who is chairman of the board of the Virginia Retirement System, is a director of Domino’s Pizza and Media General Inc. (MEG), a Richmond-based newspaper and broadcast company.

The Cantors also own an Arlington, Virginia, condominium valued at between $500,001 and $1 million. He listed between $500,000 and $1 million in Bank of America bank accounts.

Maryland Democrat Steny Hoyer, the minority whip, is among the least wealthy House leaders.

He cited assets of $30,000 to $100,000. Hoyer reported he owes at least $100,000 and as much as $250,000 in a mortgage on his home in Mechanicsville, Maryland, to SunTrust Banks in Richmond.

Financial disclosure forms filed by members of Congress require lawmakers to state the value of holdings in broad ranges. Precise figures aren’t made public.

Mutual Funds

House Speaker John Boehner, an Ohio Republican who once owned a small business, listed unearned income of at least $10,116 and as much as $46,700 from mutual-fund dividends or capital-gains distributions.

Boehner listed assets valued between $1.8 million and $5.4 million. All of his stock and bond investments in companies including Intel Corp., Home Depot Inc., Honeywell International Inc., Pfizer Inc. and JPMorgan Chase & Co. (JPM) were through individual retirement accounts. He and his wife, Debbie, who works as a real estate agent, didn’t report a mortgage on their home near a golf course in suburban Cincinnati.

Pelosi, who yielded the speakership to Boehner after Republicans won control of the House, and her husband own a vineyard in St. Helena, California, valued between $5 million and $25 million.

Reid’s Assets

In the Senate, Majority Leader Harry Reid of Nevada is the wealthiest Democratic leader, listing assets between $2.78 million to $6.19 million, with much of his net worth in real estate holdings in his home state of Nevada and in Arizona. Reid, the son of a Nevada hard-rock miner, has holdings in bonds and stock mutual funds and other investments.

Patty Murray of Washington state, the fourth-ranking Senate Democrat and the only woman in the chamber’s leadership, listed assets between $564,000 and $1.5 million. Senator Charles Schumer of New York, the chamber’s third-ranking Democrat, listed assets of $320,000 to $950,000.

About 20 percent of U.S. House members applied for filing extensions this year.

Members of Congress are required to report details of mortgages on their personal residences for the first time this year, a provision included as part of a congressional ethics law. While the Senate required members to list the terms of their mortgage -- including interest rates, length and points used to pay down their rates -- the House didn’t.

Mortgage Rates

Among lawmakers paying the highest home-mortgage interest rates is Schumer, who has a 15-year mortgage taken out in 2002 at 6.85 percent.

House Financial Services Committee Chairman Spencer Bachus, an Alabama Republican who will preside over a hearing on JPMorgan next week, has 2 mortgages with the bank, according to federal disclosure documents. JPMorgan chief executive Jamie Dimon is scheduled to testify before the committee on June 19.

Senate Democrat Jay Rockefeller of West Virginia reported among the best interest rates on a 1998 loan from the United National Bank of Charleston. It is listed as New York Prime minus 1 percent. As of June 13, the prime rate was 3.25 percent.

Today’s filings also show what gifts lawmakers have received. Representative Gary Ackerman, a New York Democrat, acknowledged exceeding legal limits. Ackerman, who is retiring at the end of the year, accepted a “priceless” gift, according to his personal financial disclosure form. What did the Long Islander get?

“The blessed opportunity for 30 years to pay back, in some small measure, the good things that happened to me.” And who gave it to him? “The people,” his form said.

To contact the reporters on this story: Heidi Przybyla in Washington at hprzybyla@bloomberg.net

To contact the editor responsible for this story: Jodi Schneider in Washington at jschneider50@bloomberg.net.

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‘The Avengers’ Has Record-Setting $200.3 Million in Sales

By Michael White - May 6, 2012 10:35 PM GMT+0700

“Marvel’s The Avengers” opened as the top film in U.S. and Canadian theaters, kicking off the summer movie season with a record $200.3 million in sales this weekend for Walt Disney Co. (DIS)

Revenue topped the previous best of $169.2 million set by “Harry Potter and the Deathly Hallows: Part 2” last year, researcher Hollywood.com Box-Office said today in an e-mailed statement. Analysts had forecast sales of $150 million to $170 million for “The Avengers.”

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Jeremy Renner, Chris Evans, Scarlett Johansson perform in "The Avengers," from Walt Disney Studios. Photographer: Zade Rosenthal/Marvel via Bloomberg

Summer ticket sales are expected to surpass the record of $4.4 billion set last year, according to Jeff Bock, box-office analyst at Exhibitor Relations Co. Other films scheduled in the coming weeks include Warner Bros.’ “The Dark Knight Rises,” directed by Christopher Nolan, and Sony Corp. (6758)’s “Men in Black 3,” a sequel that reunites Will Smith and Tommy Lee Jones as government agents managing Earth’s secret alien population.

“The Avengers” is the first Marvel movie Disney is distributing since buying the comic-book company for $4.2 billion in 2009. The movie provides Burbank, California-based Disney with a hit after the box-office failure of “John Carter,” the science-fiction film released in March that resulted in a $200 million loss for the company.

Rich Ross, the head of Disney’s film unit, resigned in April, and the company hasn’t yet hired a replacement. Disney is scheduled to report fiscal second-quarter results on May 8.

Marvel Heroes

“The Avengers” brings together several Marvel heroes, including Iron Man, Thor and Captain America, who were featured singly in previous films. They must overcome egos and discord to band together to fight an army led by Loki, the unscrupulous god of Norse mythology. The movie stars Robert Downey Jr., Chris Evans and Scarlett Johansson.

The film took in $80.5 million in first-day ticket sales on May 4, according to Hollywood.com. The revenue was the second- best single-day performance after “Deathly Hallows: Part 2,” which took in $91.1 million.

“The Avengers,” directed by Joss Whedon, was the only movie opening in wide release this weekend.

To contact the reporter on this story: Michael White in Los Angeles at mwhite8@bloomberg.net

To contact the editor responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net

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Titanic II Planned by Billionaire Palmer in Chinese Yard

By David Fickling and Elisabeth Behrmann - Apr 30, 2012 5:38 PM GMT+0700

Australian mining billionaire Clive Palmer plans to build a 21st-century replica of the Titanic and sail it from England to New York accompanied by the Chinese navy by the end of 2016.

He has signed a first-stage agreement with Nanjing-based CSC Jinling Shipyard to build the ship as part of a planned fleet of luxury liners, the Gold Coast, Queensland-based businessman said in an e-mailed statement today.

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The Titanic sits under scaffolding in the spring of 1911 in this photo made available to the media by the Library of Congress. Source: Library of Congress (George Grantham Bain Collection) via Bloomberg

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April 30 (Bloomberg) -- Australian billionaire Clive Palmer plans to build a 21st century replica of the Titanic and sail it from England to New York accompanied by the Chinese navy by the end of 2016. (Source: Bloomberg)

Audio Download: Oceanograper Ballard Describes Discovering Titanic

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Clive Palmer, chairman of Mineralogy Pty. Photographer: Patrick Hamilton/Bloomberg

Palmer, whose investments include golf courses, hotels, coal and iron-ore mining projects, a nickel smelter, a soccer team and a horse stud, said the ship will have the same dimensions as the original Titanic. A move into the cruise market, where ships typically cost at least $500 million to build, is an ambitious step, Greg Johnson, an analyst with Shore Capital Group in London, said by phone.

“You’re starting from scratch with no experience,” Johnson said. “A $500 million punt is quite sizable.”

The Titanic, commissioned by White Star Line, was the largest liner in the world when built at just under 270 meters (about 880 feet) and 53 meters high. It sank on April 15, 1912, after hitting an iceberg east of Newfoundland, costing the lives of more than 1,500 passengers and crew, according to the statement. The Titanic II will, like its predecessor, have 840 rooms on nine decks, Palmer said.

Swimming Pools

“It will be every bit as luxurious as the original Titanic, but of course it will have state-of-the-art 21st century technology and the latest navigation and safety systems,” Palmer said, along with gymnasiums and swimming pools.

Palmer, 58, a former media adviser to Queensland’s late state premier Joh Bjelke-Petersen, is known for ambitious projects in varied fields.

In March he was quoted by the Sydney Morning Herald promising to invest in a blind trust to encourage media diversity in Australia, and saying that Australia’s Greens party was funded by the CIA.

He unveiled the Titanic II plan just over an hour before a separate announcement that he would stand against Australian Treasurer Wayne Swan in his seat of Lilley at a federal election due next year.

Challenge to Build

A person on duty at the managing director’s office of CSC Jinling said by phone that while he wasn’t aware of the deal, it may have been signed by the company’s marketing and sales department. Today is a public holiday in China.

The move into the cruise-ship industry, one of the few areas of heavy manufacturing still dominated by European companies, would be a challenge for a Chinese company, said Hur Sung Duck, an analyst at HI Investment & Securities Co. in Seoul.

“That’s a huge jump for a country that builds mostly bulk ships” used for carrying coal, iron ore and grains, Hur said. “I seriously find it difficult to believe it can be built by that time.”

Italy’s Fincantieri Cantieri Navali Italiani SpA, Norway’s STX Europe AS and Germany’s Meyer Werft GmbH, are the largest players in the cruise ship-building market, according to a 2010 presentation by Samsung Heavy Industries Co.

Mitsubishi Heavy Industries Ltd. (7011) last November completed two ships for Carnival Corp. (CCL), while STX Europe is owned by Changwon, Korea-based STX Corp.

‘Major Player’

“The Chinese ship-building industry with our assistance wants to be a major player in this market,” Palmer said in the statement.

The ship would sail under his company, to be name Blue Star Line in reference to the Titanic’s owner. China’s navy would be invited “to escort Titanic II on its maiden voyage to New York,” Palmer said.

Blue Star Line was registered on April 18 as a wholly-owned subsidiary of Palmer’s Mineralogy Pty., according to its only document filed with Australia’s securities regulator. Palmer and Derek Payne, manager of his Cold Mountain horse stud, are the only officers listed in the three-page filing.

The mining magnate has a fortune of A$5.05 billion ($5.3 billion) and is Australia’s fifth-richest person, according to BRW magazine rankings. He is developing coal and iron-ore mines in Australia, including the $8 billion China First coal project in Queensland state. Last year, he dropped plans to sell shares in his company Resourcehouse Ltd. in Hong Kong after commodity prices fell.

To contact the reporters on this story: Elisabeth Behrmann in Sydney at ebehrmann1@bloomberg.net; David Fickling in Sydney at dfickling@bloomberg.net

To contact the editor responsible for this story: Rebecca Keenan at rkeenan5@bloomberg.net

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‘Failing’ Syria Peace Plan Raises Question of What’s Next

By Nayla Razzouk and Nicole Gaouette - Apr 29, 2012 10:44 PM GMT+0700

At least seven people were killed in fighting throughout Syria as the U.S. said the United Nations-backed peace plan for the country was failing.

The casualties today included one soldier who defected from government forces and a child, according to the opposition Local Coordination Committees.

More than 500 people have been killed since the April 12 start of the cease-fire brokered by UN special envoy Kofi Annan, according to the website of the Local Coordination Committees. If violence continues, the U.S. and its allies anticipate putting further pressure on the regime by seeking a travel ban, additional financial sanctions and an arms embargo at the UN Security Council, U.S. State Department spokeswoman Victoria Nuland said last week in Washington.

Nuland blamed Syrian President Bashar al-Assad for the plan’s lack of success, citing attacks by government forces on civilians and the military’s failure to withdraw heavy weapons from population centers. She also said it is essential to deploy as many as 300 unarmed UN cease-fire observers in the effort to limit the violence.

Pentagon officials are drawing up plans in the event that President Barack Obama decides to pursue military options in Syria, Kathleen Hicks, an administration nominee to the Defense Department’s policy staff, told the Senate Committee on Armed Services April 26.

‘Significant Planning’

“We are doing a significant amount of planning for a wide range of scenarios, including our ability to assist allies and partners along the borders,” said Hicks, the nominee to be principal deputy undersecretary of defense for policy.

The U.S., Turkey and other allies have discussed creating a civilian aid corridor along the Turkish border with Syria as one option if the fighting continues.

The head of the UN monitoring force arrived in Damascus today, Al Arabiya reported without saying how it got the information. An advance team of 15 UN observers has reported heavy weapons in populated areas in violation of the UN agreement, Ban said.

Nuland estimated that it may take another three to four weeks to deploy the first 100 of the anticipated 300 monitors.

The head of the Arab League, Nabil el-Arabi, said Arab foreign ministers have asked him to convene a meeting of all the Syrian opposition factions on May 16, according to the Al Jazeera television channel.

To contact the reporters on this story: Nicole Gaouette in Washington at ngaouette@bloomberg.net; Nayla Razzouk in Dubai at nrazzouk2@bloomberg.net

To contact the editor responsible for this story: John Walcott at jwalcott9@bloomberg.net; Andrew J. Barden at barden@bloomberg.net

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Obama Jokes About Romney, Second Term

By David Lerman - Apr 29, 2012 12:01 PM GMT+0700

President Barack Obama unveiled his “secret agenda” for a second term last night, vowing to “win the war on Christmas” and replace the former ban on gays serving openly in the military with a policy called “It’s Raining Men.”

Then the mock agenda was abruptly cut short.

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U.S. President Barack Obama delivers remarks at the annual White House Correspondents' Association Dinner. Photographer: Kristoffer Tripplaar/Pool via Bloomberg

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Late-night comic Jimmy Kimmel, the celebrity keynote speaker of the night, delivers remarks at the annual White House Correspondents' Association Dinner. Photographer: Kristoffer Tripplaar/Pool via Bloomberg

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Actor George Clooney, left, and former U.S. Secretary of State Colin Powell attend the Bloomberg Vanity Fair White House Correspondents' Association Dinner afterparty in Washington, D.C. Photographer: Joshua Roberts/Bloomberg

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Actress Lindsay Lohan arrives for the White House Correspondents' Association Dinner. Photographer: Joshua Roberts/Bloomberg

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Actress Claire Danes, left, and Bob Schieffer of CBS News, arrive for the White House Correspondents' Association Dinner. Photographer: Joshua Roberts/Bloomberg

“I had a lot more material prepared, but I have to get the Secret Service home in time for their new curfew,” Obama deadpanned at the annual White House Correspondents’ Association Dinner.

The tuxedo-clad president, facing re-election this year, also went into campaign mode, taking aim at his likely Republican opponent in November, former Massachusetts Governor Mitt Romney.

Noting they both have degrees from Harvard University, Obama said, “I have one, he has two. What a snob.”

Turning toward former House Speaker Newt Gingrich, who has said he will announce his withdrawal from the Republican presidential primary race this week, Obama said, “Newt, there’s still time, man.”

Late-night comic Jimmy Kimmel, the celebrity keynote speaker of the night and host of ABC’s “Jimmy Kimmel Live,” returned some of the political fire on Obama.

“Remember when the country rallied around you in hopes of a better tomorrow?” Kimmel asked the president. “That was hilarious.”

Warning Obama that he might not approve of some of his jokes, Kimmel instructed: “Cover your ears, if that’s physically possible.”

Media Circus

The annual black-tie dinner is a Washington tradition dating to 1920. What was once a more modest, low-key affair for White House reporters and administration officials morphed decades ago into a televised media circus.

Hollywood celebrities now routinely flock to the event at the invitation of media organizations.

Among the big names who showed up last night were George Clooney, Steven Spielberg, Charlize Theron, Zooey Deschanel, Diane Keaton, Claire Danes, and Uggie, the dog from the Oscar- winning film “The Artist.”

Then there were the celebrities who are famous just for being famous -- and often go by a single name. There was Lindsay (Lohan). And there was Kim (Kardashian).

More than 2,000 of the elite from Washington and Hollywood crammed into a ballroom of the Washington Hilton Hotel to dine on Texas-rubbed petite filet with a Calvados sauce, along with red curry jumbo shrimp.

Dessert featured a chocolate truffle mousse layered with chocolate genoise and almond macaroon.

A-Listers

Washington A-listers included former Secretary of State Colin Powell, Defense Secretary Leon Panetta, House Majority Leader Eric Cantor and -- fresh off the presidential campaign trail-- former Pennsylvania Senator Rick Santorum.

“I guess it just wasn’t Rick’s year,” Kimmel said. “Rick’s year was 1954. It’s one thing to oppose gay marriage. It’s another thing to do it in a sweater vest.”

Obama was at times self-deprecating, at times a jokester, and at times a savvy campaigner.

“Some have said I blame too many problems on my predecessor,” Obama said. “But let’s not forget that’s a practice that was initiated by George W. Bush.”

Last year’s dinner occurred on the eve of what is arguably one of Obama’s biggest accomplishments: the killing of former al-Qaeda leader Osama bin Laden. Obama took note of the one-year anniversary, albeit with humor.

Delivered Justice

“Last year at this time, we finally delivered justice to one of the world’s most notorious individuals,” Obama said, as a photo of business tycoon Donald Trump appeared on a jumbo screen. Obama had mocked Trump at last year’s dinner.

In a friendly jab at former Alaska Governor Sarah Palin, the Republican vice-presidential nominee in 2008, Obama rewrote her now-famous joke from the 2008 Republican convention.

“What’s the difference between a hockey mom and a pit bull?” Obama asked the crowd. “A pit bull is delicious.”

The bipartisan gathering has long been a night of good humor and gentle ribbing among all of Washington’s power brokers, and Kimmel gave equal time in his monologue to mocking Republicans and Democrats.

He said Texas Representative Ron Paul, who is still a Republican presidential hopeful, looks like “the guy who gets unhooded at the end of every Scooby Doo episode.”

Welcoming Gingrich to the dinner, Kimmel said, “I guess the checks cleared,” in an apparent reference to the Georgia Republican’s mounting campaign debt.

Dog-Star

Kimmel praised Uggie, the dog-star of “The Artist,” for being able to roll over on command. “He’s a Democrat,” Kimmel said.

Still, he saved much of his ammunition for Obama, who laughed and smiled through most of the routine.

“President Obama wants everyone to have health care, whether they want it or not,” Kimmel said. “I think I figured it out. You’re not from Kenya. It’s even worse: You’re from Canada.”

Proceeds from the dinner go toward scholarships for aspiring journalists and awards for prize-winning reporting.

The first president to attend the dinner was Calvin Coolidge, in 1924.

Until 1962, the dinner was open only to men. Women were not permitted until former White House reporter Helen Thomas protested the policy and former President John Kennedy refused to attend the dinner unless the ban on women was lifted, according to the White House Correspondents Association’s website.

Observing a ballroom filled with politicians, journalists and Hollywood celebrities, Kimmel told the crowd, “Everything that is wrong with America is here tonight.”

To contact the reporter on this story: David Lerman in Washington at dlerman1@bloomberg.net

To contact the editor responsible for this story: John Walcott at jwalcott9@bloomberg.net

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Muslim Brotherhood Says Saudi Protest Reflects Egypt’s Dignity

By Tarek El-Tablawy - Apr 29, 2012 3:05 PM GMT+0700

The Muslim Brotherhood’s political arm said the protests that prompted Saudi Arabia to temporarily close its Cairo embassy and consulates reflected Egyptians standing up for their rights.

The Freedom and Justice Party, which holds nearly half the seats in parliament’s lower house, said the demonstrators were “merely expressing the Egyptian people’s aspiration to preserve the dignity of their fellow citizens who visit, live or work in Arab countries,” according to a statement on the party website.

The protests that began on April 24 outside Saudi Arabia’s embassy in Cairo were in response to the detention of Ahmed el- Gizawy, a human rights activist and lawyer who was detained earlier this month in the kingdom after officials there said he tried to smuggle in anti-anxiety tablets. The detention fueled complaints by activists on social media about the treatment of Egyptians in Saudi Arabia. Egyptians have long complained that ousted President Hosni Mubarak remained silent about how Egyptians were treated in Gulf Arab states largely to not offend the oil-rich Arab states.

“The people are voicing their conviction that insulting the dignity of Egyptians abroad is no longer tolerated after the peaceful revolution which restored their will, their voice and their dignity,” the FJP said in the statement.

Egyptian officials have sought to smooth over the potential rift, with Field Marshal Mohamed Hussein Tantawi calling King Abdullah yesterday to reaffirm the strength of ties between the two nations, the state-run al-Ahram reported today.

‘Individual Actions’

Foreign Minister Mohamed Kamel Amr said the methods used by some of the protesters were “individual actions that do not represent” the views of Egyptians as a whole, the state-run Middle East News Agency said late yesterday.

The FJP said that Egyptian-Saudi relations are “far greater than any problems” and that “dialogue and transparency in these relations can solve any problems.” The party called on Egypt’s military rulers to “take concrete steps to solve the el-Gizawy issue in a manner which ensures Egyptians’ dignity, and at the same time preserves” the strong ties between both nations.

To contact the reporter on this story: Tarek El-Tablawy in Cairo at teltablawy@bloomberg.net.

To contact the editor responsible for this story: Andrew J. Barden at barden@bloomberg.net

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