Obama and Boehner get along fine; politics is the problem

WASHINGTON — In summer 2011, negotiations between President Obama and House Speaker John A. Boehner over raising the debt ceiling featured plenty of drama.

There were private grumbles, a very public round of golf, a phone call from the White House that went unreturned and, overall, a lost opportunity to secure a "grand bargain" on spending and taxes.

Now, as high-stakes talks between Obama and Boehner rev up again, the lessons of that summer appear to be producing a new steadiness and comfort level between the two men.

After weeks of private phone calls and public posturing, the Ohio Republican quietly ducked into the White House on Sunday for his first one-on-one meeting with the president since mid-2011. The goal this time: forging a deal to avoid $500 billion in tax increases and spending cuts set to take effect in early January.

The face-to-face session came and went without a flood of leaks or post-meeting spin by either camp. The two sides even issued identical brief statements saying "lines of communication remain open," a far cry from Boehner's public complaint last Friday that prospects for compromise were "nowhere."

Obama had greased Sunday's meeting by giving Boehner a bottle of fine Italian wine — a Brunello di Montalcino — for his birthday on Nov. 17. Red wine was the speaker's drink of choice during the tense talks last year to raise the federal debt ceiling.

Boehner, for his part, didn't just call the president to wish him happy birthday. The son of a barkeeper sang him the first verse of the "Boehner Birthday Song," a three-sentence chant that ends with a Polka-style "Hey!"

"Personality has never been a roadblock to an agreement," said Brendan Buck, a Boehner spokesman. "The two men get along very well."

White House spokesman Jay Carney returned the sentiment: "The president likes and respects Speaker Boehner and looks forward to continuing to work with him."

If a deal falls apart, it probably will be a matter of politics, not personalities.

Members of the Republican right flank are all but certain to revolt if Boehner agrees to the president's proposal to raise taxes on the wealthiest Americans. And Obama will take heavy flack from left-leaning Democrats if he agrees to spending cuts sought by the GOP in Medicare, Social Security and other popular entitlement programs.

For weeks, the president has tried to build public pressure on Republicans. He kept the campaign up on Monday at a diesel engine plant near Detroit, where he suggested he was the one seeking a middle ground.

"I've said I will work with Republicans on a plan for economic growth, job creation and reducing our deficits and that has some compromises between Democrats and Republicans," Obama said. "I understand people have a lot of different views."

But Obama has not tried to go around or embarrass Boehner by seeking support from other Republican lawmakers. Boehner, in turn, has made a concerted effort to tone down the conservative critics in his ranks.

Obama had little one-on-one contact with Boehner, then the House Republican leader, in the first two years of his presidency. As the debt ceiling battle escalated in June 2011, the two men staged their first notable meeting on neutral territory: the golf course at Andrews Air Force Base. Obama and Boehner played on the same team, beating Vice President Joe Biden and Ohio Gov. John Kasich.

"They really made an effort with the theatrics with the golf game, for example, to show a message of reassurance that these people were not blood enemies," said Ross Baker, a professor of American politics at Rutgers University.

The game was followed by secret meetings, and they began to hammer out a $4-trillion "grand bargain" deficit-cutting deal. The talks were torpedoed and resuscitated throughout July. They came to an acrimonious end on July 22, with Boehner accusing Obama of moving the goal posts on new tax revenue.

Obama, appearing on television, groused about being "left at the altar" for the second time that month. Aides said Boehner had not returned the president's phone call.

Instead of a historic bargain, Congress passed a smaller deficit reduction bill at the 11th hour, including automatic across-the-board spending cuts now at play in the "fiscal cliff" talks.

Neither man seems to be holding a grudge — for now.

kathleen.hennessey@latimes.com

melanie.mason@latimes.com

Lisa Mascaro and Michael A. Memoli in the Washington bureau contributed to this report.

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A Google-a-Day Puzzle for Dec. 11

Our good friends at Google run a daily puzzle challenge and asked us to help get them out to the geeky masses. Each day’s puzzle will task your googling skills a little more, leading you to Google mastery. Each morning at 12:01 a.m. Eastern time you’ll see a new puzzle posted here.

SPOILER WARNING:
We leave the comments on so people can work together to find the answer. As such, if you want to figure it out all by yourself, DON’T READ THE COMMENTS!

Also, with the knowledge that because others may publish their answers before you do, if you want to be able to search for information without accidentally seeing the answer somewhere, you can use the Google-a-Day site’s search tool, which will automatically filter out published answers, to give you a spoiler-free experience.

And now, without further ado, we give you…

TODAY’S PUZZLE:

Note: Ad-blocking software may prevent display of the puzzle widget.

Ken is a husband and father from the San Francisco Bay Area, where he works as a civil engineer. He also wrote the NYT bestselling book "Geek Dad: Awesomely Geeky Projects for Dads and Kids to Share."

Read more by Ken Denmead

Follow @fitzwillie and @wiredgeekdad on Twitter.

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Jenni Rivera’s family hopes Mexican-American singer still alive

LOS ANGELES (Reuters) – The family of Mexican-American singer Jenni Rivera said on Monday they are holding onto hope that she may still be alive, although U.S. officials said earlier that she died on Sunday in a plane crash in Mexico.

“In our eyes, we still have faith that our sister will be OK,” Rivera’s brother Juan told reporters outside the family house near Long Beach, California.

“We thank God for the life that he has given … my sister,” said Juan Rivera, also a singer. “For all the triumphs and successes she has had, and we expect that there will be more in the future.”

Rivera, 43, died after the small jet she was traveling in crashed in northern Mexico on Sunday, U.S. officials said. Rivera’s father, Pedro, told Telemundo television on Sunday that everyone on the plane had died. So far, authorities have not announced the recovery of any bodies.

The U.S. National Transportation Safety Board said it was helping Mexican authorities with the investigation of the crash of the private Learjet LJ25.

The plane crashed at about 3:30 a.m. local time (4.30 a.m. EST) in the municipality of Iturbide some 70 miles south of Monterrey, from which the singer and six others were en route to Mexico City.

Rivera was to perform in the city of Toluca, 40 miles southwest of Mexico city, in central Mexico after a concert in Monterrey on Saturday night.

It is not clear what caused the crash, and the Mexican transportation ministry said the wreckage was strewn so far about that it was difficult to recognize the crash site.

Rivera was born in Long Beach to Mexican immigrants and lived in suburban Los Angeles. She was a giant figure in the Mexican folk nortena and banda genres.

She had sold 15 million albums in her 17-year career and garnered a slew of Latin Grammy nominations.

“The entire Universal Music Group family is deeply saddened by the sudden loss of our dear friend Jenni Rivera,” the singer’s record label said in a statement.

“From her incredibly versatile talent to the way she embraced her fans around the world, Jenni was simply incomparable,” Universal added in the statement. “Her talent will be missed; but her gift of music will be with us always.”

In recent years Rivera had branched out into television with a reality television show and as a judge on the Mexican version of the singing competition “The Voice.”

(Reporting by Eric Kelsey; Editing by Jill Serjeant and Lisa Shumaker)

Music News Headlines – Yahoo! News

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Rate of Childhood Obesity Falls in Several Cities

PHILADELPHIA — After decades of rising childhood obesity rates, several American cities are reporting their first declines.

The trend has emerged in big cities like New York and Los Angeles, as well as smaller places like Anchorage, Alaska, and Kearney, Neb. The state of Mississippi has also registered a drop, but only among white students.

“It’s been nothing but bad news for 30 years, so the fact that we have any good news is a big story,” said Dr. Thomas Farley, the health commissioner in New York City, which reported a 5.5 percent decline in the number of obese schoolchildren from 2007 to 2011.

The drops are small, just 5 percent here in Philadelphia and 3 percent in Los Angeles. But experts say they are significant because they offer the first indication that the obesity epidemic, one of the nation’s most intractable health problems, may actually be reversing course.

The first dips — noted in a September report by the Robert Wood Johnson Foundation — were so surprising that some researchers did not believe them.

Deanna M. Hoelscher, a researcher at the University of Texas, who in 2010 recorded one of the earliest declines — among mostly poor Hispanic fourth graders in the El Paso area — did a double-take. “We reran the numbers a couple of times,” she said. “I kept saying, ‘Will you please check that again for me?’ ”

Researchers say they are not sure what is behind the declines. They may be an early sign of a national shift that is visible only in cities that routinely measure the height and weight of schoolchildren. The decline in Los Angeles, for instance, was for fifth, seventh and ninth graders — the grades that are measured each year — between 2005 and 2010. Nor is it clear whether the drops have more to do with fewer obese children entering school or currently enrolled children losing weight. But researchers note that declines occurred in cities that have had obesity reduction policies in place for a number of years.

Though obesity is now part of the national conversation, with aggressive advertising campaigns in major cities and a push by Michelle Obama, many scientists doubt that anti-obesity programs actually work. Individual efforts like one-time exercise programs have rarely produced results. Researchers say that it will take a broad set of policies applied systematically to effectively reverse the trend, a conclusion underscored by an Institute of Medicine report released in May.

Philadelphia has undertaken a broad assault on childhood obesity for years. Sugary drinks like sweetened iced tea, fruit punch and sports drinks started to disappear from school vending machines in 2004. A year later, new snack guidelines set calorie and fat limits, which reduced the size of snack foods like potato chips to single servings. By 2009, deep fryers were gone from cafeterias and whole milk had been replaced by one percent and skim.

Change has been slow. Schools made money on sugary drinks, and some set up rogue drink machines that had to be hunted down. Deep fat fryers, favored by school administrators who did not want to lose popular items like French fries, were unplugged only after Wayne T. Grasela, the head of food services for the school district, stopped buying oil to fill them.

But the message seems to be getting through, even if acting on it is daunting. Josh Monserrat, an eighth grader at John Welsh Elementary, uses words like “carbs,” and “portion size.” He is part of a student group that promotes healthy eating. He has even dressed as an orange to try to get other children to eat better. Still, he struggles with his own weight. He is 5-foot-3 but weighed nearly 200 pounds at his last doctor’s visit.

“I was thinking, ‘Wow, I’m obese for my age,’ ” said Josh, who is 13. “I set a goal for myself to lose 50 pounds.”

Nationally, about 17 percent of children under 20 are obese, or about 12.5 million people, according to the Centers for Disease Control and Prevention, which defines childhood obesity as a body mass index at or above the 95th percentile for children of the same age and sex. That rate, which has tripled since 1980, has leveled off in recent years but has remained at historical highs, and public health experts warn that it could bring long-term health risks.

Obese children are more likely to be obese as adults, creating a higher risk of heart disease and stroke. The American Cancer Society says that being overweight or obese is the culprit in one of seven cancer deaths. Diabetes in children is up by a fifth since 2000, according to federal data.

“I’m deeply worried about it,” said Francis S. Collins, the director of the National Institutes of Health, who added that obesity is “almost certain to result in a serious downturn in longevity based on the risks people are taking on.”

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Boeing 787 Plane Works to Overcome Snags

Stuart Isett for The New York Times

The upper deck of a Boeing 787 Dreamliner being assembled in Everett, Wash. The basic model, called the 787-8, can carry 210 to 250 passengers.

After years of delays in producing its much-anticipated 787 aircraft, Boeing seemed in recent months to be turning a corner, streamlining production and increasing the pace of deliveries.

But a pair of embarrassing problems last week revived concerns about the reliability of the plane, the first commercial aircraft to make extensive use of lightweight carbon composites that promise big fuel savings for airlines.

A United Airlines 787 flying from Houston to Newark was diverted to New Orleans last Tuesday after one of its six electric generators failed midflight. That same day, the Federal Aviation Administration ordered inspections of fuel line connectors on all 787s, warning of a risk of fuel leaks and fires.

Aviation experts cast these issues as minor hiccups and said it was typical for new planes to experience such problems, particularly in the first few years of production.

On Monday, an aerospace analyst, David E. Strauss of UBS, raised another concern — whether the cost of building the planes was coming down fast enough for individual plane sales to become profitable by early 2015, as Boeing has projected.

Boeing officials have said that the company will earn enough on subsequent sales to average a percentage profit in the low single digits on the first 1,100 planes, which includes deliveries into 2021. Company officials said late Monday that they remained confident in their projections.

But in a research report, Mr. Strauss said that Boeing’s costs did not appear to be declining rapidly enough for sales to turn profitable in 2015 and that the program could continue to spend $4 billion to $5 billion more than it gained in revenue over the next three years. Unless the company can bring down the costs more quickly as it gains experience in building the planes, Mr. Strauss wrote, Boeing may not begin to make a profit on each plane until 2021.

A lot is riding on the success of the 787 Dreamliner, a risky technological and commercial bet for Boeing, which is based in Chicago. The company has so far delivered 38 of the jets to eight airlines, including United Airlines, All Nippon Airways of Japan and Poland’s LOT. It has outlined ambitious plans to double its production rate to 10 planes a month by the end of 2013. It is also starting to build a stretched-out version and mulling an even larger one after that, to make the venture more profitable.

But with the combination of the problem on the United flight and the F.A.A. directive, “This was too much news about the 787 in one day,” said Addison Schonland, an aviation analyst and a partner at Airinsight.com. “But remember, it’s a brand-new airplane. When you start flying it around, you start discovering things. Over all, the number of hiccups has been fantastic.”

The basic model, called the 787-8, can carry 210 to 250 passengers about 8,000 nautical miles, the distance from New York to Singapore, and has a list price of $206.8 million. Early customers, however, are receiving big discounts to make up for the delays caused by a series of manufacturing problems. The first stretched version for 250 to 290 passengers, the 787-9, is listed at $243.6 million and could be ready in early 2014.

Mr. Strauss estimated that Boeing was recently spending $232 million to build each plane but charged customers, on average, only about half that.

Given Wall Street’s concerns, Boeing’s stock has been in limbo for more than three years, trading in a narrow range around $75 a share.

“Boeing has not had a major snafu on the 787 for over a year now, but we think most investors remain skeptical as to whether Boeing can keep this up,” Robert Stallard, an analyst at RBC Capital Markets, said in a note to clients last month.

Boeing has acknowledged that it outsourced too much of the work on the plane to suppliers who were willing, collectively, to cover billions of dollars of the development costs. Many parts needed reworking. That and other design changes forced the company to set up a separate line in Everett, Wash., to handle the extra work on the first 65 jets. It has also built a 787 plant in Charleston, S.C., with an entirely new work force.

Still, even with all of the headaches, the 787 has enabled Boeing to jump ahead of its European rival, Airbus, in exploiting the lightweight carbon composites. Half of the plane by weight is made with composites instead of aluminum and other metals. Airbus said last week that it had finished assembly on the first A350, its rival to the 787. Its entry into commercial service is not expected before the second half of 2014.

Passengers who have flown on 787s this year have raved about the experience, and the first airlines using them also seem satisfied.

United will begin using the 787 internationally in January, with flights from Houston to Lagos, Nigeria. “There is a tremendous amount of promise for customers preferring this airplane over others,” said Jeff Smisek, chief executive of United. “It still has a new-plane smell.”

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Plenty of smoke clouds the future of legalized pot in Washington

SEATTLE — Customers have been drifting into Jay Fratt's alternative pipe and tobacco shop, Smokin J's, in the days since Washington state's marijuana law took effect, wondering when cannabis would take its place on the shelves next to the handblown glass pipes.

Hold on, he told them. Fratt is, before anything else, a businessman, and he quickly realized there was a lot of smoke in the details.

First of all, the law setting up the nation's first legal regulatory system for retail pot won't allow sales until next year. And the federal government still considers marijuana illegal.

Then there are the taxation provisions: Can legal retailers compete with the black market when they have to pay over 25% in taxes? What about the provision that says marijuana shops can't stock anything but pot and pot supplies? What would happen to the Vancouver, Wash., shopkeeper's tie-dye baby jumpsuits, his "Stoner" trivia games, his meditating Buddha tapestries?

The euphoria that accompanied the debut of the initiative making it legal in Washington for adults to possess an ounce or less of marijuana faded shortly after midnight Thursday, when about 150 people gathered at the base of the Space Needle in Seattle to toke up in celebration.

By Friday morning, the bureaucrats, the lawyers and the suits from Wall Street were pulling into town as state regulators began setting up what could become a $1-billion industry, built precariously on a product whose possession the federal government considers a felony.

State officials estimate that pot will soon be selling legally for about $12 a gram, with annual consumption of 85 million grams — a potential bonanza in state tax revenue of nearly $2 billion over the first five years.

"I'm telling my clients, if I had a collective and I knew that legalization was coming and I knew they were going to be licensing people and I was already in the business, I'd be one of the first people going to apply for a license," said Jay Berneburg, a Tacoma, Wash., lawyer who held a seminar recently about getting into the retail trade.

"You could make a million dollars in five days. There's going to be people lined up to buy marijuana, just because they can," he said.

Venture capitalists are moving in. Brendan Kennedy and Michael Blue, two Yale University MBA graduates with backgrounds in Silicon Valley, have raised $5 million through their private equity firm, Privateer Holdings, believed to be the first in the nation to focus strictly on marijuana-related companies.

"We realized this was and is the biggest opportunity we think we'll probably see in our lifetimes," Blue said.

Their first acquisition was Leafly.com, a website that rates strains of marijuana for their medicinal properties. Users can plug in their ZIP codes and find out which products available in their areas produce the effects they're looking for, from "giggly" to the ability to treat migraines.

Vaporizers are another product they're looking at — anything that doesn't directly involve buying or selling marijuana. Privateer is offering investors the chance to make money in an arena most venture capitalists can't touch under standard partnership agreements, which normally spell out that investments not in compliance with federal law are prohibited. That means, they figure, an opportunity for stunning profits with little competition from other investment firms — though one has to listen to a lot of Bob Marley at trade shows.

"I've studied a lot of industries. I've never seen one that had this unique set of circumstances," Kennedy said. "It's highly fragmented, it's very unstructured, there's no leaders, there's no standards. The entire topic is taboo, and there's no involvement by Wall Street ... which is a unique opportunity, right?"

The state Liquor Control Board is asking for a staff of 40 to help set up a network of possibly 300 or more state-licensed retail stores. The board must also figure out how to regulate growers and packagers.

That process will take much of the next year. Though it has been legal since Thursday for adults to use small amounts of marijuana away from public view, they can't buy it, sell it or grow it until regulations are in place. Exemptions remain for medical users under existing law.

"Nowhere in the nation, or in the world, have they set up a regulatory system for recreational marijuana use. I think that's where we're kind of charting new ground," said Pat Kohler, director of the board.

"There will have to be a set of regulations set up on how much they can grow, what kind of security they need to have, can they grow it indoors — all these things need to be discussed."

In part, Kohler said, Washington will be looking to Colorado — where voters approved a similar statute that goes into effect in January — which has in place regulations for medical marijuana more comprehensive than Washington's laissez-faire approach.

She said it would also be logical to model regulations on rules governing the liquor industry. Until this year, when alcohol sales were privatized, hard liquor in Washington was sold at state-licensed stores that, like those to be set up under the marijuana law, sold nothing but alcohol under tight regulation and taxation.

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A Google-a-Day Puzzle for Dec. 10

Our good friends at Google run a daily puzzle challenge and asked us to help get them out to the geeky masses. Each day’s puzzle will task your googling skills a little more, leading you to Google mastery. Each morning at 12:01 a.m. Eastern time you’ll see a new puzzle posted here.

SPOILER WARNING:
We leave the comments on so people can work together to find the answer. As such, if you want to figure it out all by yourself, DON’T READ THE COMMENTS!

Also, with the knowledge that because others may publish their answers before you do, if you want to be able to search for information without accidentally seeing the answer somewhere, you can use the Google-a-Day site’s search tool, which will automatically filter out published answers, to give you a spoiler-free experience.

And now, without further ado, we give you…

TODAY’S PUZZLE:

Note: Ad-blocking software may prevent display of the puzzle widget.

Ken is a husband and father from the San Francisco Bay Area, where he works as a civil engineer. He also wrote the NYT bestselling book "Geek Dad: Awesomely Geeky Projects for Dads and Kids to Share."

Read more by Ken Denmead

Follow @fitzwillie and @wiredgeekdad on Twitter.

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UK hospital says royal prank call appalling after nurse death

LONDON/PERTH, Australia (Reuters) – The London hospital that treated Prince William‘s pregnant wife Kate condemned on Saturday an Australian radio station that made a prank call seeking information about the duchess, after the apparent suicide of a nurse who answered the phone.

There has been renewed soul-searching over media ethics after Jacintha Saldanha, 46, the nurse who was duped by the station’s call to the King Edward VII hospital, was found dead in staff accommodation nearby on Friday.

The owners of Sydney’s 2DayFM said it had done nothing wrong and no one could have foreseen the tragic outcome of the stunt, but two leading Australian firms suspended their advertising.

The hoax, in which the radio hosts – posing as Britain‘s Queen Elizabeth and Prince Charles despite Australian accents – successfully inquired after Kate’s medical condition, has made worldwide headlines.

The hospital’s chairman Lord Glenarthur urged the station’s owners to ensure that such an incident could never happen again.

“It was extremely foolish of your presenters even to consider trying to lie their way through to one of our patients, let alone actually make the call,” he said in a letter to Southern Cross Austereo Chairman Max Moore-Wilton.

“Then to discover that, not only had this happened, but that the call had been pre-recorded and the decision to transmit approved by your station’s management, was truly appalling.”

The immediate consequence had been the humiliation of two “dedicated and caring” nurses, he said. “The longer term consequence has been reported around the world and is, frankly, tragic beyond words,” Glenarthur added.

Australians from Prime Minister Julia Gillard to people in the street expressed their sorrow and cringed at how the hoax had crossed the line of acceptability.

Two large companies suspended their advertising from the popular Sydney-based station and a media watchdog said it would speak with 2DayFM’s owners.

The hoax raised concerns about the ethical standards of Australian media, as Britain’s own media scramble to agree a new system of self-regulation and avoid state intervention following a damning inquiry into reporting practices.

Southern Cross Austereo Chief Executive Rhys Holleran told a news conference in Melbourne on Saturday that the company would work with authorities in any investigation. He said he was “very confident” that the radio station had done nothing illegal.

“This is a tragic event that could not have been reasonably foreseen and we are deeply saddened by it. Our primary concern at this stage is for the family of Nurse Saldanha.”

Holleran added that 2DayFM radio hosts Mel Greig and Michael Christian were “completely shattered” by Saldanha’s death. The pair will stay off the air indefinitely, he said.

London detectives have sent a request to Sydney police to question the two presenters, Britain’s Sunday Times said.

“Officers have been in contact with Australian authorities,” a spokesman for London’s Metropolitan Police said.

Two high-profile Australian firms, the Coles supermarket group and phone company Telstra, said they were suspending advertising with the station.

Austereo said all advertising on 2DayFM had been shelved until at least Monday in a mark of respect to advertisers whose Facebook pages were inundated with thousands of hate messages.

The Twitter accounts of Greig and Christian were removed shortly after news of the tragedy in London broke.

SOCIAL MEDIA OUTRAGE

Social media were inundated with angry messages to the radio station in what has become the latest shock radio story to rile the Australian public. Earlier this year 2DayFM was reprimanded by Australia’s independent communications regulator after a radio host talked a 14-year-old girl into revealing on air that she had been raped.

So-called “shock jock” radio announcers are frequently denounced in Australia for their deeply personal and often derogatory attacks on politicians and ordinary citizens.

Communications Minister Stephen Conroy said that the independent broadcast regulator, the Australian Communications and Media Authority, had received complaints about the hoax.

The media fallout from the tragedy could extend beyond Australia’s shores, said British radio presenter Steve Penk, who has made a career out of prank calls.

“I think it will probably be the death of the wind-up phone call. I think (British media regulator) Ofcom will wrap it in so much red tape that it will make it almost impossible to get these things on the air,” he told Sky News.

Saldanha lived with her husband and two children in the western English city of Bristol. She moved to Britain from India around 10 years ago, British media reports said.

Her husband’s family, who live in the southern Indian state of Karnataka, told news agency Asian News International they would miss their “good-natured and beautiful” relative.

“At eight o’clock in the morning, he (Saldanha’s husband) rang up to say that she is no more, more than that we do not know about what actually happened. She is dead, that’s all,” said Camril Barboza, Saldanha’s mother-in-law.

The British royal family has long had an uneasy relationship with the media, which sank to its lowest after the 1997 death of Prince William’s mother Diana in a Paris car crash.

Palace officials acted swiftly this summer when a French magazine printed topless photos of Kate on holiday, taking legal action to curb republication.

Saldanha’s death threatens to cast a pall over the enthusiastic public welcome given to Kate’s pregnancy, which dominated newspaper front pages this week.

(Writing by Tim Castle and Jeremy Laurence; Editing by Mark Heinrich and Stephen Powell)

Celebrity News Headlines – Yahoo! News

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Italy Grapples With Polluting by Ilva, a Giant Steel Maker

Alessandro Penso for The New York Times

The Ilva steel plant, in Taranto, Italy, above, employs thousands of workers but is seen as a health threat by residents and courts.

TARANTO, Italy — Every morning, Graziella Lumino cleans the black soot from her kitchen window, which looks out on the hulking Ilva steel plant where her husband, Giuseppe Corisi, worked for 30 years.

After he died this year at the age of 64 from violent, sudden-onset lung cancer, his friends put a plaque on the wall of their apartment building: “Here lived the umpteenth death from lung cancer. Taranto, March 8, 2012.”

Today, Ilva, which is among the largest plants in Europe and produces more than 30 percent of Italy’s raw steel, is at the heart of a clash over the future of Italian industry, one that pits economic concerns against environmental ones and the power of the government against the judiciary amid Italy’s struggle to compete in a global economy.

After a court ordered sections of the plant closed and steel from it impounded last month, arguing that it had violated environmental laws and was raising serious health concerns in the area, the government passed an emergency decree that would allow it to continue operating while cleaning up its act, saving 20,000 jobs nationwide. Magistrates said that the new law, which must be approved by Parliament, violated the Constitution by allowing the executive branch to circumvent the judiciary.

In many ways, the Ilva plant is an emblem of the Italian economy that the technocratic government of Prime Minister Mario Monti inherited last year and has been trying to repair before elections expected early next year. It is the product of decades of physical and political neglect, an aging industrial giant that came of age in the economic boom of the late 20th century and is struggling to keep pace in the 21st.

For Italy, though, the plant is too big to fail. It produces about 8 percent of European steel — and the government estimates that stopping production would cost the Italian economy more than $10 billion a year.

But the environmental concerns are real. Dark plumes of smoke billow from stacks dominating the landscape, while dust from the plant stains the white tombstones in the local cemetery a rusty pink. An ordinance forbids children from playing in unpaved lots. In 2008, a local farmer was forced to slaughter 2,000 sheep after they were deemed contaminated with dioxin.

Some studies have found that cancer rates in Taranto, an ancient harbor in the heel of Italy’s boot, are over 30 percent higher than the national average, and far higher for certain cancers, particularly of the lungs, kidneys and liver, as well as melanomas.

Bruno Ferrante, the president of Ilva, said that the Riva Group, which owns the plant, has been spending from $325 million to $400 million a year to upgrade the plant since it bought it in 1995.

Mr. Ferrante added that cancer rates had been falling recently — government-approved studies bear that out — but acknowledged that there was more to be done. “The pink dust is certainly a problem, and we are aware of it,” he said.

Arguments about the plant’s economic importance fall on deaf ears here. “Health comes first,” Ms. Lumino said, sitting in her apartment with photos of her husband, including one on a chain that hung from her neck. He was one of many Ilva workers sent into early retirement in 1998 after the plant found evidence of asbestos contamination. “If you have money but not your health, what good is it?” she asked.

Ms. Lumino remembered a time before the plant was built. “There were farms, clean air, olive and almond trees,” she said. “We would picnic by the coast every Easter Monday.”

Even with the new decree, the conflict is far from over. The decree orders the Riva Group to invest $3.8 billion to reduce its emissions and bring the plant up to code before 2016, the deadline for other European countries to modernize.

If Riva fails to do so, the new law would give the government more powers to intervene. If Riva is unable to raise enough money to modernize, it could ask for European Union subsidies or sell the plant, which could jeopardize Italy’s European standing.

Brazilian companies are already eying Ilva, according to Italian news media reports. Mr. Ferrante said that Riva had no intention of selling and had a “pretty significant” ability to borrow more money and also draw on European Union cofinancing.

Gaia Pianigiani contributed reporting.

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Auction for A123 Systems Won by Wanxiang Group of China

DETROIT — Wanxiang Group, a large Chinese auto parts maker, won a high-stakes auction on Sunday for assets of A123 Systems, the bankrupt American battery maker that was a centerpiece of the Obama administration’s loan program for electric vehicles.

A123, which filed for bankruptcy in October after chronic losses and a damaging battery recall, said Wanxiang agreed to pay $256 million for its automotive and commercial operations, including its three factories in the United States.

But the sale excludes A123’s business with the United States government and its military contracts. That portion of the company will be sold to a small energy company based in Illinois, Navitas Systems, for $2.2 million.

Spinning off the government-related business to an American buyer was meant to quell concerns about transferring sensitive military technology to the Chinese, said A123’s chief executive, David Vieau.

“We think we have structured this transaction to address potential national security concerns,” he said in a statement.

From the start, some Republicans in Congress have opposed Wanxiang’s efforts to buy A123, which received a $249 million federal grant to spur domestic manufacturing of batteries.

The deal, which requires approval of a United States bankruptcy judge, would expand Wanxiang’s share of the global market for lithium-ion batteries used in new electric cars like the Fisker Karma.

The A123 sale is the latest in a series of acquisitions of North American energy and manufacturing companies by state-owned and privately held Chinese firms.

Last week, the Canadian government cleared a $15 billion takeover of Nexen, the energy giant, by the state-owned China National Offshore Oil Corporation, or Cnooc.

Wanxiang outbid three other companies in the auction conducted for the bankruptcy court by the Chicago law firm Latham & Watkins. One of the three, Johnson Controls, based in Wisconsin, had tried to buy A123 as it was entering bankruptcy.

But Wanxiang has been in aggressive pursuit of A123 since earlier this year, when the Chinese company first offered emergency loans to keep the failing battery maker afloat.

The president of Wanxiang’s fast-growing American subsidiary, Pin Ni, said the deal would accelerate its growth in the American automotive and alternative-fuel industries. “We think adding A123 to our portfolio of businesses strongly aligns with our strategy of investing in automotive and clean tech industries in the U.S.,” he said.

The subsidiary, Wanxiang America, which is based near Chicago, owns several auto-parts firms and other companies and employs 3,000 American workers.

But the A123 deal is by far its most prominent and riskiest acquisition.

In addition to the approval of the bankruptcy judge, the deal requires the approval of the Committee on Foreign Investment in the United States, a broad-based group led by the Treasury Department that reviews foreign takeovers of American companies.

Mr. Ni expressed confidence that Wanxiang was the best owner for A123, when it would need considerable investment to meet production commitments for automakers like Fisker Automotive and General Motors. “We are committed to making the long-term investments necessary for A123 to be successful,” he said.

A123, which is based in Waltham, Mass., was once one of the most promising recipients of federal loans under the Obama administration’s $2 billion program to stimulate the electric-car industry in the United States.

But consumers have been slow to buy electric vehicles in large numbers, crippling any chance for A123 to make a profit. It also stumbled when its first big shipment of batteries to Fisker proved defective and needed to be recalled.

The company’s bankruptcy became a political issue in the recent presidential campaign, and its potential sale to Wanxiang has fueled concerns that China will benefit from technology developed with financing by American taxpayers.

One member of Congress, Marsha Blackburn, Republican of Tennessee, wrote in a blog, “The Hill,” on Friday that any sale of A123 to the Chinese had “significant implications” for American national interests.

At least two dozen other members of Congress have also opposed the deal, along with the Strategic Materials Advisory Council, a group of former American military and industry leaders.

“The writing is on the wall,” Ms. Blackburn wrote. “The administration must review and then reject any deal involving Wanxiang.”

The bankruptcy auction began last week, when Wanxiang, Johnson Controls, and the electronics makers NEC Corporation of Japan and Siemens AG of Germany submitted secret bids for A123’s assets.

The agreement announced by A123 on Sunday said that Wanxiang made the highest bid, but did not disclose the other offers.

According to the deal, Wanxiang would acquire A123’s automotive, electric-grid and commercial business assets, including all of its technology, products, customers, and factories in Michigan, Massachusetts and Missouri, which will continue to operate.

Wanxiang would also take control of A123’s fledgling operations in China, including its interest in a joint battery venture with Shanghai Automotive, the country’s biggest carmaker.

A123’s much smaller government division, which is concentrated in Michigan, will go to the little-known Navitas Systems.

There was no immediate comment from Navitas, which is described on its Web site as a newly formed company offering integrated design and technology for the energy-storage industry.

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