Legendary Indian sitarist, composer Ravi Shankar dead at 92

LOS ANGELES (Reuters) - Sitarist and composer Ravi Shankar, who helped introduce the sitar to the Western world through his collaborations with The Beatles, died in Southern California on Tuesday, his family said. He was 92. Shankar, a three-time Grammy winner with legendary appearances at the 1967 Monterey Festival and at Woodstock, had been in fragile health for several years and last Thursday underwent surgery, his family said in a statement. "Although it is a time for sorrow and sadness, it is also a time for all of us to give thanks and to be grateful that we were able to have him as a part of our lives," the family said. "He will live forever in our hearts and in his music." In India, Prime Minister Manmohan Singh's office posted a Twitter message calling Shankar a "national treasure and global ambassador of India's cultural heritage." "An era has passed away with ... Ravi Shankar. The nation joins me to pay tributes to his unsurpassable genius, his art and his humility," the Indian premier added. Shankar had suffered from upper respiratory and heart issues over the past year and underwent heart-valve replacement surgery last week at a hospital in San Diego, south of Los Angeles. The surgery was successful but he was unable to recover. "Unfortunately, despite the best efforts of the surgeons and doctors taking care of him, his body was not able to withstand the strain of the surgery. We were at his side when he passed away," his wife Sukanya and daughter Anoushka said. Shankar lived in both India and the United States. He is also survived by his daughter, Grammy-winning singer Norah Jones, three grandchildren, and four great-grandchildren. Shankar performed his last concert with his daughter Anoushka on November 4 in Long Beach, California, the statement said. The night before he underwent surgery, he was nominated for a Grammy for his latest album "The Living Room Sessions, Part 1." 'NORWEGIAN WOOD' TO 'WEST MEETS EAST' His family said that memorial plans will be announced at a later date and requested that donations be made to the Ravi Shankar Foundation. Shankar is credited with popularizing Indian music through his work with violinist Yehudi Menuhin and The Beatles in the late 1960s, inspiring George Harrison to learn the sitar and the British band to record songs like "Norwegian Wood" (1965) and "Within You, Without You" (1967). His friendship with Harrison led him to appearances at the Monterey and Woodstock pop festivals in the late 1960s, and the 1972 Concert for Bangladesh, becoming one of the first Indian musicians to become a household name in the West. His influence in classical music, including on composer Philip Glass, was just as large. His work with Menuhin on their "West Meets East" albums in the 1960s and 1970s earned them a Grammy, and he wrote concertos for sitar and orchestra for both the London Symphony Orchestra and the New York Philharmonic. Shankar served as a member of the upper chamber of the Parliament of India, from 1986 to 1992, after being nominated by then Indian Prime Minister Rajiv Gandhi. A man of many talents, he also wrote the Oscar-nominated score for 1982 film "Gandhi," several books, and mounted theatrical productions. He also built an ashram-style home and music center in India where students could live and learn, and later the Ravi Shankar Center in Delhi in 2001, which hosts an annual music festival. Yet his first brush with the arts was through dance. Born Robindra Shankar in 1920 in India's holiest city, Varanasi, he spent his first few years in relative poverty before his eldest brother took the family to Paris. For about eight years, Shankar danced in his brother's Indian classical and folk dance troupe, which toured the world. But by the late 1930s he had turned his back on show business to learn the sitar and other classical Indian instruments. Shankar earned multiple honors in his long career, including an Order of the British Empire (OBE) from Britain's Queen Elizabeth for services to music, the Bharat Ratna, India's highest civilian award, and the French Legion d'Honneur.

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Actor Depardieu's Belgium move "pathetic": French PM

Actor Gerard Depardieu's decision to establish residency in Belgium, which does not have a wealth tax, by buying a house just over the border with France, is "pathetic" and unpatriotic, French Prime Minister Jean-Marc Ayrault said on Wednesday. Depardieu has become the latest wealthy Frenchman after luxury magnate Bernard Arnault to look for shelter outside his native country following tax hikes by Socialist President Francois Hollande. "Going just over the border, I find that fairly pathetic," Ayrault said on France 2 television. "Being a Frenchman means loving your country and helping it to get back on its feet." The "Cyrano de Bergerac" star bought a house in the Belgian village of Nechin near the border with France, where 27 percent of the population is composed of French nationals, local mayor Daniel Senesael told French media on Sunday. Depardieu also enquired about procedures for acquiring Belgian residency, he said. Yann Galut, a Socialist member of parliament, condemned the actor and proposed that France copy U.S. practice by adopting a law that would force exiles to pay full tax dues or risk being stripped of their nationality. "It is scandalous and shameful," Galut told Reuters in an interview. "The country's in dire straits. This man owes everything he has to France - the accolades, the subsidies that helped produce his films, the schools where he was educated. At the end of a career that made him extremely rich he wants nothing to do with national solidarity." Belgian residents do not pay wealth tax, which in France is now slapped on individuals with assets over 1.3 million euros ($1.70 million), nor do they pay capital gains tax on share sales. France has also imposed a 75-percent tax on incomes exceeding 1 million euros. The tax hikes have been welcomed by left-wingers who say the rich must do more to help redress public finances but attacked by some wealthy personalities and foreign critics, who say it will increase tax flight and dampen investment. Depardieu's move comes three months after Arnault, chief executive of luxury giant LVMH, caused an uproar by seeking to establish residency in Belgium - a move he said was not motivated by tax reasons. The left-leaning Liberation daily reacted with a front-page headline next a photograph of Arnault telling him to "Get lost, you rich jerk", prompting luxury advertisers including LVMH to withdraw their advertisements. Ayrault said he did not support the idea floated by Galut, and the call was also partially disowned by the leader of the Socialist group in the lower house of parliament. "I'd rather appeal to people's intelligence, to their hearts," Ayrault said. Undeterred, Galut said tax dodging may be costing the state as much as 6 to 8 billion euros ($7.8 to 10.4 billion) a year in lost income and that such amounts were "far from negligible" at a time when France is at pains to reduce a bloated debt. "Everyone is being asked to chip in, private individuals and companies alike. It's inadmissible that people who made fortunes in France refuse to share their part of the burden," he said. Galut said he was asked on Wednesday to set up a parliamentary panel that would look into the question of tax exiles, saying he would like to see action taken when parliament broaches a budget bill for 2014.

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Mick Jagger love letters fetch $300,000 at auction

A collection of love letters written by Rolling Stones frontman Mick Jagger to American singer Marsha Hunt, believed to be the inspiration for the band's hit single "Brown Sugar", sold at Sotheby's on Wednesday for 187,250 pounds ($301,000). The 10 letters, dating from the summer of 1969, had been expected to fetch 70-100,000 pounds, according to the auctioneer. "The passage of time has given these letters a place in our cultural history," Hunt said after the London sale. "1969 saw the ebbing of a crucial, revolutionary era, highly influenced by such artists as The Beatles, The Rolling Stones, James Brown and Bob Dylan. "Their inner thoughts should not be the property of only their families, but the public at large, to reveal who these influential artists were - not as commercial images, but their private selves." Hunt, with whom Jagger had his first child, Karis, told Britain's Guardian newspaper last month that she was selling the letters, written in July and August 1969, because she had been unable to pay her bills. "I'm broke," Hunt, who lives in France, told the newspaper. Jagger wrote them to Hunt while filming the Tony Richardson movie "Ned Kelly" in Australia. They showed a sensitive side of the then-young singer, who wrote about the poetry of Emily Dickinson, meeting author Christopher Isherwood and an unrealized multimedia project. Jagger's relationship with Hunt, who is African-American, was kept under wraps until 1972. Hunt has said she was the inspiration for Brown Sugar, which Jagger wrote while in Australia. The rock star also cites in the letters the disintegration of his relationship with singer Marianne Faithfull, whom he was also dating at the time, and the death of Rolling Stones' guitarist Brian Jones. There has been a surge in interest in the rock band this year, as Jagger and his three surviving bandmates celebrate the 50th anniversary of the Stones with a series of concerts, a photo book and a greatest hits album.

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Politico financier Joe L. Allbritton dies at 87

Joe L. Allbritton, the millionaire founder of Politico's parent company, died Wednesday of heart ailments in a Houston hospital. He was 87. The founder of Allbritton Communications, which launched Politico and owns several television stations, built the Washington, D.C.-based media empire after controversy-fraught years as the chief of Riggs National Bank. Born in Mississippi and raised in Texas, Allbritton was a self-made businessman, who dabbled in real estate, mortuaries and banking before entering the news business in 1974, when he purchased the struggling Washington Star newspaper. He revived the paper. Six years later, federal regulations regarding cross ownership of newspaper and television stations forced him to sell his $35 million investment. Time Inc. bought it for $217 million. Allbritton held on to his more lucrative media properties, including WJLA, an ABC affiliate in Washington, D.C. that took his initials, and helped launch NewsChannel 8, also in Washington, one of the country's first 24-hour news channels. The company he founded, which is now run by his son, Robert, has made inroads into the internet world - founding Politico in 2007 and TBD, a short-lived internet news site that the company shuttered in 2012. Though Politico is his son's creation, the elder Allbritton bankrolled the publication and has been accused of excessively involving himself in its editorial affairs. But, for all of Allbritton's successes and wealth, his career was marred by a nationwide recession in the early 1990s that Forbes magazine said brought the bank to the brink of insolvency. The economic slump left Riggs with bad loans on drastically devalued real estate, but Allbritton was also blamed by analysts for ignoring the growing suburban banking market which took business away from Riggs. Despite these woes, he refused to give up his private jet at Riggs, even as shareholders urged him to sell the Gulfstream. He was also criticized for his eagerness to do business with some shady customers He personally courted Chilean dictator Augusto Pinochet, whom human rights groups accused of killing more than 3,000 of his own citizens during his 17-year reign. And - in a 2001 letter to Teodoro Obiang Nguema, the dictator of oil-rich Equatorial Guinea - Allbritton praised the west African strongman's "reputation for prudent leadership." Obiang deposited hundreds of millions of dollars in banks controlled by Allbritton. But little of this criticism appeared in Politico's glowing, three-page obituary on its financier. The piece, bylined by editor-in-chief John F. Harris and reporter James Hohmann, makes a brief, passing mention of a federal inquiry into Allbritton's dealings with Pinochet. There is no mention of Obiang. The man, whom the Washington Post noted - in the headline of its obituary - led once-venerable Riggs to "disrepute" is praised by Politico with a laundry list of accomplishments. "He would wear Politico baseball caps and T-shirts while playing with his grandchildren. Sometimes, he would quiz executives at the company on business and editorial matters, sometimes pretending caustically to second-guess their decisions," Harris and Hohmann wrote of the former boss. "It took the publisher, adept at reading his father's sense of humor, to assure people that he was just kidding; his main involvement in the new publication was as cheerleader." It wasn't the only time Allbritton was accused of involving himself in Politico's coverage. In 2007, five months after the news agency's christening, Glenn Greenwald, then a columnist at Salon, accused Politico of having a conservative bias, pointing to Allbritton's appointment of Frederick J. Ryan Jr., a one-time assistant to President Ronald Reagan, as president and CEO of Politico. "There is nothing wrong per se with hard-core political operatives running a news organization. Long-time Republican strategist Roger Ailes oversees Fox News, of course," Greenwald wrote. "But it seems rather self-evident that a news organization run by someone with such clear-cut political biases ought to have a hard time holding itself out as some sort of politically unbiased source of news."

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Media mogul and banker Allbritton dies at 87

Joe Lewis Allbritton, a media mogul and owner of the scandal-plagued Riggs National Bank, died on Wednesday at a hospital in Houston. He was 87. Allbritton died of heart ailments, said Jerald Fritz, a senior vice president of Allbritton Communications. Allbritton's media empire included newspapers throughout the U.S. Northeast and ABC network affiliates. Allbritton's son, Robert, recently founded the influential political publication Politico. But Joe Allbritton, a Mississippi native, was famously known for owning and running Riggs, the Washington-based bank that had been a dominant force in diplomatic banking in the nation's capital. Allbritton's banking career was tarnished when it was revealed that Riggs bank failed to report suspicious activity in the accounts held by former Chilean dictator Augusto Pinochet and Equatorial Guinea officials. Riggs bank pleaded guilty in 2005 to violating anti-money laundering laws and was fined a total of $41 million. Allbritton did not seek re-election to Riggs' board of directors and the storied bank was eventually acquired by PNC Financial Services. Allbritton is survived by his wife, son and two grandchildren.

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Christmas comes slowly to austerity-hit Europe

PARIS (AP) — Across Europe, holiday "shoppers" this season are doing more browsing than buying. Retailers remain hopeful for a last-minute burst of Christmas consumerism, and some governments are encouraging it by allowing stores to open on Sunday. But with economies across the region slowing and unemployment soaring, analysts say holiday spending in Europe is bound to disappoint for the fourth year in a row. In Rome, some shopkeepers say holiday sales are down 20 percent from last year. In Paris, refurbished second-hand toys are attracting buyers. And in Spain, which has Europe's highest unemployment rate, some families are contemplating whether to give gifts at all. As in the U.S., holiday shopping is vital to many businesses: British non-food retailers can make up to 50 percent of their profits in the end-of-year push. In Germany, holiday business accounts for 30 percent of annual toy sales. But the arc of the holiday shopping seasons is a little different in every country. The Dutch open presents on Dec. 5, the eve of St. Nicholas day and the last night of their "Sinterklaas" celebration. In Spain, many children tear open presents on Jan. 6, when tradition has it the Three Wise Men brought gifts to the baby Jesus. In Britain, France and most of Europe gifts are exchanged on Dec. 25. As the 17-country eurozone slips back into recession, this festive season may mark a new normal for Europe, analysts say. Gone are the heady days when every holiday season meant a new record breached for sales. Instead, shops will have to fight it out for shoppers, hunting for bargains and quality and willing to wait for both. "Every year it comes later," said Joachim Stoll, who co-owns Leder-Stoll OHG, a leather and luggage retailer just off the glittering Zeil pedestrian shopping quarter in Frankfurt, Germany. "People wait longer and longer, even after Christmas." European retailers are crossing their fingers that a boost will still come, as it did this year for the U.S. There, total sales for the four-day weekend that kicks off the holiday shopping season around Thanksgiving in late November rose 2.7 percent to $22 billion, compared with the same period a year ago, according to ShopperTrak. Sales since then have fallen 4.4 percent compared with last year, ShopperTrak reported Wednesday. Austerity measures implemented to combat the continent's debt crisis have hit Europe's economies hard: Nine countries in the 27-member European Union are in recession and unemployment across the region is 10.7 percent. Retail sales across Europe have been on a steady decline since August and have yet to match levels last seen since the start of the Great Recession in 2008. In October, the latest month for which official figures are available, retail sales in the European Union fell 1.1 percent from the previous month and 2.4 percent from the previous year, according to Eurostat. In Germany, Europe's biggest economy, retail sales fell 3.8 percent in October from the previous year. "After a relentlessly tough year for retailers throughout 2012, many are now bracing themselves as spending doesn't seem to be headed for a big step-up at Christmas," said Shweta Chaudhury of MasterCard SpendingPulse, which estimates total U.K. retail sales across all payment forms. Many customers may only be drawn out by the very best sales. Some shoppers say they may even start shopping for the 2013 holidays in the new year sales. "There's this sort of conflicting trend, where retailers are pushing Christmas earlier and earlier each year, but at the same time shoppers are actually delaying their purchases to as late as possible," said Natalie Berg, global research director at research firm Planet Retail. "Shoppers are very savvy today, and they know that the deals will come." In an attempt to bolster sales in the run-up to Christmas, leading British department store John Lewis has already started discounts on some items ahead of its usual New Year's sales. Women's Armani chinos were discounted 70 percent, and 50 pounds ($80) has been taken off the price of a 479-pound ($780) Bosch washing machine. European officials are also doing their best to encourage shoppers. Italy ended its prohibition on stores opening on Sundays, and stores in Madrid and across France suspended their bans during the holiday season. In Rome, thousands turned out to see Pope Benedict XVI inaugurate the season on Dec. 8 with a prayer at the statue of Mary at the foot of the Spanish Steps in the heart of the city's posh shopping district. But afterward, there seemed to be more gawking then buying. "We are down about 20 percent from last Christmas season, and this is a rich area," said Lucia Ruffini, a salesperson in the Pandemonium boutique in Rome's upscale Parioli neighborhood. "Let's hope for the (post-Christmas) sales." Some shoppers, like Omero Petrocchi, have been doing their homework all year. "There are sales, super sales, discounts, super discounts and nothing more. So where I see I can spend less, I snatch (gifts)," he said while browsing on Rome's chic Via Condotti, where some of Italy's most famous designers have shops. "Then I put everything in the closet, so we already have it all for next year." But in Paris' upscale Galeries Lafayette department store, discounts were almost nowhere to be found, as shoppers buzzed around a giant Christmas tree in the store's famed central cupola. A handful of clothing racks and Christmas decorations were marked down, but there were no sales to be had in the bustling toy department. The lack of pre-Christmas sales is pushing some Parisian shoppers across town to the workshop of a non-profit group that fixes up used, donated toys. "These are toys at less than half the price of new ones that are practically new," said Antoinette Guhl, co-director of ReJoue. But she said that price is just one motivator; many shoppers are also drawn by the fact that association gives jobs and training to the unemployed and is recycling toys that otherwise would have been tossed. "It's a more responsible purchase." Bryan Roberts, an analyst with Kantar Retail, warns that it's hard to generalize about this Christmas in Europe and turnout has been "incredibly patchy." For instance, in Spain, which has the EU's highest unemployment rate at 26.2 percent, many were preparing for a more sedate holiday. "We'll have to see what the mood is among the family to see how much money we have to spend," said Elsa Barona, 59, an executive with an international food company. Barona said her immediate family — her son, daughter and her daughter's boyfriend — was still trying to decide what kind of meal to have and whether to give one another gifts; both her son and her daughter's boyfriend are unemployed. "As I'm divorced, it's down to me to pay for myself and my close family group, so things are obviously going to be tighter than in the best years."

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Feds, shuttered NM peanut butter plant reach deal

ALBUQUERQUE, N.M. (AP) — A peanut butter plant shuttered by a widespread salmonella outbreak has been given the go ahead to start harvesting a bumper crop of prized eastern New Mexico Valencia peanuts next week under an agreement that ends a tense, monthslong standoff with federal regulators. A consent decree filed in federal court Friday says Sunland Inc. can reopen its plant in Portales if it hires an independent expert to develop a sanitation plan, which then must be approved by the Food and Drug Administration. Conditions at the plant, which is the largest organic peanut butter producer in the country, prompted the FDA in November to use new authority for the first time to revoke the company's operating certificate without a court hearing. The action came after the plant was linked to a salmonella outbreak that sickened 42 people in 20 states this fall. Friday's filing reinstates Sunland's food facility registration. But the company cannot process or distribute food from its peanut butter or peanut mill plants in Portales until it has complied with the consent decree's requirements and receives written authorization from the FDA. "This consent decree prohibits Sunland from selling processed foods to consumers until it fully complies with the law," Stuart F. Delery, principal deputy assistant attorney general for the Justice Department's civil division, said in a statement. "As this case demonstrates, the Department of Justice and FDA will work together to protect the health and safety of Americans by making sure that those who produce and sell the food we eat follow the law." Sunland said the agreement came after it "provided additional information to FDA to demonstrate that recommended actions have been taken and required corrective actions are being implemented." Sunland spokeswoman Katalin Coburn said that after the decree was filed, the FDA gave the plant permission to reopen its peanut processing facility while it works on the plan for reopening the peanut butter plant. She said work will resume the day after Christmas. The Sunland plant was shuttered and hundreds of its products recalled in September and October after the salmonella outbreak was linked to Trader Joe's Valencia peanut butter manufactured at Sunland. The recall and plant shuttering came as the region was finishing a bumper harvest of the prized Valencia peanuts grown almost exclusively in the region. The peanuts are favored for organic and natural peanut-butter products because of their sweet flavor, which requires few additives. Sunland produces products for a number of national grocery and retail chains, and New Mexico Peanut Growers Association President Wayne Baker says the industry generates about $60 million in the region each year. The FDA took the unusual step in November of revoking Sunland's registration just as the plant was hoping to reopen its processing plant to begin work on the millions of pounds of Valencia peanuts piled up in barns after this year's harvest. The action was denounced as unfair and unnecessarily heavy-handed by many in the conservative farm town of Portales, where Sunland is the largest private employer. At the end of November, the plant had laid off about 30 percent of its 150 workers. Coburn said she was unsure how quickly the laid-off workers would be recalled. The FDA said inspectors found samples of salmonella in 28 different locations in the plant, in 13 nut butter samples and in one sample of raw peanuts. Inspectors found improper handling of the products, unclean equipment and uncovered trailers of peanuts outside the facility that were exposed to rain and birds. Inspectors also said employees lacked access to hand-washing sinks, and dirty hands had direct contact with ready-to-package peanuts. The FDA said it inspected the plant at least four times over the past five years, each time finding violations. Michael Taylor, the FDA's deputy commissioner for foods, said the agency's inspections after the outbreak found even worse problems than what had been seen there before. Plant officials have said they were never notified of past violations.

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Hurting Spaniards celebrate Christmas lottery wins

MADRID (AP) — Winners of Spain's cherished Christmas lottery — the world's richest — celebrated Saturday in more than a dozen locations where the top lucky tickets were sold, a moment of uplift for a country enduring another brutal year of economic hardship. The lottery sprinkled a treasure chest of €2.5 billion ($3.3 billion) in prize money around the country. Champagne corks popped and festive cheer broke out in 15 towns or cities where tickets yielding the maximum prize of €400,000 ($530,000), known as "El Gordo" ("The Fat One,)" had been bought. A total of €520 million ($687 million) was won in the eastern Madrid suburb of Alcala de Henares alone. Among the top-prize winners were 50 former workers at metal parts factory Cametal who had formed a pool to buy tickets. Their company had filed for bankruptcy and ceased paying wages five months ago. "I'm bursting with joy, I haven't fully taken it in yet," said local resident Josefina Ortega. "When others win you think to yourself it'll never happen to you, but it has." Unlike lotteries that generate a few big winners, Spain's version — now celebrating its 200th anniversary — has always shared the wealth more evenly instead of concentrating on vast jackpots, so thousands of tickets yield some kind of return. Almost all of Spain's 46 million inhabitants traditionally watch at least some part of the live TV coverage showing school children singing out winning numbers for the lottery It is so popular that frequently three €20 ($26) tickets are sold for every Spaniard and many consider lottery day as the unofficial kickoff of the holiday season. Before Spain's property-led economic boom collapsed in 2008 ticket buyers often yearned to win so they could buy a small apartment by the beach or a new car. Now people said they needed money just to get by, or to avoid being evicted from their homes. Though ticket sales were down 8.3 percent on last year, according to the National Lottery, in the days preceding the draw hundreds of people lined up to buy tickets outside outlets that have sold winning tickets before. Dolores Perez and Teresa Palacio, two lottery outlet workers in north Madrid who sold a top-prize ticket celebrated with sparkling wine as curious neighbors gathered. The fortunate winner had yet to make an appearance. "I had never sold a Christmas 'Gordo' before; I almost thought it didn't exist," said Perez, smiling broadly. "I'm so happy, I've worked here for 30 years and never before sold a 'Gordo,' until now." Since so many people chip in to buy tickets in groups, top prizes frequently end up being handed out in the same small town or in one city neighborhood. Last year's top winning number hit for 1,800 tickets in the northern town of Granen, population 2,000. Townspeople shared about €700 million ($925 million), and the rest of the €1.8 billion ($2.4 billion) was doled out in smaller prizes around Spain. Spain holds another big lottery Jan. 6 to mark the Feast of the Epiphany. It is known as "El Nino" (The Child), in reference to the baby Jesus. But the crisis will hit El Nino and all lotteries going forward. Until now, lottery winnings have been free from taxation, but now prizes above €2,000 ($2,640) will be liable to a 20 percent tax in 2013. The government has imposed stinging austerity measures this year in a bid to prevent Spain from asking for a full-blown bailout like those granted to Greece, Ireland, Portugal and Cyprus. Spain's unemployment stands at 25 percent and its economy is sinking into a double-dip recession.

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Belgium may hand Arnault tax file to Paris: press

PARIS (Reuters) - Belgian tax authorities may hand French tycoon Bernard Arnault's file to their Paris counterparts for closer scrutiny of Brussels-based companies linked to his LVMH luxury empire, according to media reports. John Crombez, Belgium's minister for fraud prevention, said any information on local "mailbox companies" held by France's richest man should be shared with Paris, newspaper De Tijd reported on Saturday. Belgian legal and government officials did not immediately return calls seeking comment. LVMH said in a statement that its Belgian companies complied with all applicable laws. Arnault, 63, caused an outcry in France earlier this year when it emerged that he was seeking Belgian citizenship, while insisting that the move was not tax-related. Other wealthy figures, including actor Gerard Depardieu, have blamed France's high tax rates and recent increases for their decisions to leave the country. Soon after taking office in May, Socialist President Francois Hollande introduced a new 75 percent rate on income above 1 million euros ($1.3 million). According to L'Echo, a Belgian daily, Arnault's holdings in the country include several companies registered at the same Brussels address with combined assets of 7 billion euros. "If Bernard Arnault is working with pure mailbox companies in Belgium we should signal this to French tax authorities," the anti-fraud minister was quoted as saying. LVMH said it was "surprised" by the press reports and denied any wrongdoing. "The companies of Groupe Arnault and LVMH have very real economic activities in Belgium, where some of them have been based for several decades," the company said in an emailed statement. "All of their activities are fully compliant with Belgian tax legislation as well as international law."

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Obama seeks scaled-down 'fiscal cliff' agreement

WASHINGTON (AP) — President Barack Obama has scaled back his ambitions for a sweeping budget bargain with Republicans. Instead, he's calling for a limited measure sufficient to prevent the government from careening off the "fiscal cliff" in January by extending tax cuts for most taxpayers and forestalling a painful set of agency budget cuts. In a White House appearance Friday, Obama also called on Congress to extend jobless benefits for the long-term unemployed that would otherwise be cut off for 2 million people at the end of the year. Obama's announcement was a recognition that chances for a larger agreement before year's end have probably collapsed. It also suggested that any chance for a smaller deal may rest in the Senate, particularly after the collapse of a plan by House Speaker John Boehner, R-Ohio, to permit tax rates to rise on million-dollar-plus incomes. "In the next few days, I've asked leaders of Congress to work toward a package that prevents a tax hike on middle-class Americans, protects unemployment insurance for 2 million Americans, and lays the groundwork for further work on both growth and deficit reduction," Obama said. "That's an achievable goal. That can get done in 10 days." Maybe, maybe not. The latest plan faces uncertainty at best in the sharply divided Senate. GOP leader Mitch McConnell of Kentucky, who wields great power even in the minority, called Friday for Senate action on a House bill from the summer extending the full menu of Bush-era tax cuts. He promised that it will take GOP votes for anything to clear the Senate, where 60 votes are required to advance most legislation. Democrats control 53 votes. Boehner, giving the GOP weekly radio address, said, "Of course, hope springs eternal, and I know we have it in us to come together and do the right thing." Earlier, Boehner said Obama needs to give more ground to reach an agreement and that both he and Obama had indicated in a Monday telephone call that their latest offers represented their bottom lines. "How we get there," he added, "God only knows." Congress shut down for Christmas and Obama flew to Hawaii with his family for the holidays. But both men indicated they'd be back in Washington, working to beat the fast-approaching Jan. 1 deadline with an agreement between Christmas and New Year's. Obama announced his plans after talking by phone with Boehner and meeting with Senate Majority Leader Harry Reid, D-Nev., who had previously pinned his hopes on an Obama-Boehner agreement and is wary of dealing with McConnell. At the White House, Obama projected optimism despite of weeks of failed negotiations. "Call me a hopeless optimist, but I actually still think we can get it done," he said. Boehner spoke in the morning, describing the increasingly tangled attempts to beat the Jan. 1 deadline and head off the perilous combination of across-the-board tax hikes and deep spending cuts. "Because of the political divide in the country, because of the divide here in Washington, trying to bridge these differences has been difficult," Boehner said. "If it were easy, I guarantee you this would have been done decades before." Obama said that in his negotiations with Boehner, he had offered to meet Republicans halfway when it came to taxes and "more than halfway" toward their target for spending cuts. It's clear, however, that there's great resistance in GOP ranks to forging a bargain with Obama along the lines of a possible agreement that almost seemed at hand just a few days ago: tax hikes at or just over $1 trillion over 10 years, matched by comparable cuts to federal health care programs, Social Security benefits and across federal agency operating budgets. Obama said he remains committed to working toward a goal of longer-term deficit reduction to reduce chronic trillion-dollar deficits while keeping tax rates in place for nearly everyone. "Even though Democrats and Republicans are arguing about whether those rates should go up for the wealthiest individuals, all of us — every single one of us — agrees that tax rates shouldn't go up for the other 98 percent of Americans," Obama said, citing statistics associated with his promise to protect household income under $250,000 from higher tax rates. Neither the House nor the Senate is expected to meet again until after Christmas. Officials in both parties said there was still time to prevent the changes from kicking in with the new year. The week began amid optimism that Obama and Boehner had finally begun to significantly narrow their differences. Both were offering a cut in taxes for most Americans, an increase for a relative few, and cuts of roughly $1 trillion in spending over a year. Also included was a provision to scale back future cost-of-living increases for Social Security recipients — a concession by the president that inflamed many liberals.. GOP officials said some senior Republicans such as Rep. Paul Ryan, R-Wis., the most recent Republican vice presidential nominee, opposed the possible agreement. But No. 2 House Republican Eric Cantor of Virginia has joined arms with Boehner. Boehner stepped back and announced what he called Plan B, legislation to let tax rates rise on incomes of $1 million or more while preventing increases for all other taxpayers. Despite statements of confidence, he and his lieutenants decided late Thursday they were not going to be able to secure the votes needed to pass the measure in the face of opposition from conservatives unwilling to violate decades-old party orthodoxy never to raise tax rates. The retreat came after it became clear that too many Republicans feared "the perception that somebody might accuse them of raising taxes," Boehner said. Boehner also said that last Monday he had told Obama he had submitted his bottom-line proposal. "The president told me that his numbers — the $1.3 trillion in new revenues, $850 billion in spending cuts — was his bottom line, that he couldn't go any further." That contradicted remarks by White House press secretary Jay Carney, who said on Thursday that Obama has "never said either in private or in public that this was his final offer. He understands that to reach a deal it would require some further negotiation. There is not much further he could go."

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