Boehner failed. Now what

Washington awoke Friday morning to a possibility that has been widely shrugged off for weeks, but suddenly seems chillingly real: Could the government actually default?

The delay and disintegration of a House vote on the debt limit late Thursday is the latest sign that Congress is mired in legislative gridlock just four days before the Aug. 2 deadline for lifting the country’s borrowing authority.

House Speaker John Boehner (R-Ohio) vowed to return to his bill Friday, but Thursday’s chaos — hours of private meetings, praying and postponed votes — raises fresh concerns that the country is stumbling toward a possible default and downgrade of its credit rating.

“I felt for some time that a default was likely,” Rep. Barney Frank (D-Mass.), the top Democrat on the House Financial Services Committee, told POLITICO. “Now, it’s more likely than not.”

Democrats predicted the postponed vote would provide the leverage they need to convince Boehner to take a different course, one that involves striking an agreement that can pass the House and Senate with bipartisan support.

Despite the disarray, Democrats and Republicans actually aren’t that far apart on a possible compromise. It’s really just a question of whether the White House and congressional leaders, particularly the House speaker, choose to seal the deal.

Boehner is the wild card. He will quickly need to decide if he should push a bill through the House with Democratic votes — a move certain to infuriate conservatives already angry with the direction of the talks. That appears to be the only way Congress will avert a default.

But Boehner has shown no willingness to take this step, alarming the White House and Senate leaders who have been quietly shaping the contents of a deal that could move through Congress rapidly by the deadline or within a few days of it.

Another possibility is that Boehner pulls back and moves to his right. His speakership is undoubtedly endangered, and it's possible he will choose to shore up his flank rather than raise the debt ceiling. That would be dangerous for the economy, but it is not, given last night's humiliation, unthinkable.

Perhaps the primary wild card is what happens when the market opens today. If Wall Street assesses this as yet another day of Washington nonsense en route to an inevitable deal, then congressional leaders will find they have a bit more time to dawdle and negotiate. If the market decides that Boehner's inability to control his caucus is evidence that things really are different this time, it could drop precipitously. If that happens, the leadership of both parties might dispense with the legislation meant to message and figure out how to pass the legislation meant to lift the debt ceiling. It would be about time.

It's really not that hard to see what the final deal will eventually look like. And in a sense, last night's vote -- or, more to the point, non-vote -- is irrelevant to it. Boehner was aways going to need to assemble a coalition of more moderate Republicans and Democrats to get a deal. Last night's vote was a referendum on Boehner, but it had little to do with reaching an actual deal. So the optimistic spin is that the GOP's failure will move the Republican leadership to embrace the bipartisan strategy they were always going to have to adopt at the end. The pessimistic spin is that they now know pushing a compromise bill through the House could truly harm their careers and will hide from it. But they can only hide for so long. That's the problem with being in the leadership. Eventually, you have to lead.

Live So You Think You Can Dance: Judges Predict Who Will Be the Final

Last night on Jimmy Kimmel Live!, Lady Gaga, for whom even the Bowling Hall of Fame figures among her many illustrious awards, will absolutely not rent bowling shoes. Her decision is not an issue of hygiene but rather her colossal devotion to her little monsters... and her image. Plus: the female stars of music really run the late night world in this compilation; Beyoncé, off of a powerful performance of "Best Thing I Never Had," tells the host she ran across the Great Wall of China; Kirstie Alley, having caught the dancing bug, shows David Letterman how to dance in New York City clubs, causing discomfort for the host during some especially intimate moments; and Glee's Jayma Mays performs the old 'sip 'n smile' in a coffee commercial that has percolated into her gleeful acting career. Watch our compilation to see what you missed.

Caitlynn and Jordan stood together holding hands while Jess and Tadd waved to their fans and family. Then it was announced that Jordan and Jess would be going home.

When we caught up with the two after the show, they were far from upset and are excited about the rest of the season, tour and what's to come.

"It's bittersweet to leave at this point in the competition," Jess said. "We've been attached to the show for quite some time so it's hard, but it's almost over though. Two weeks! It will be a blink of an eye. I think was an opportunity to show our talents. [As far as the future] I'm going back to New York, working, hopefully getting another show I'd love to be part of and branching out to other things. I'd love to do choreography and singing and acting. You never know what lies ahead of you, but whatever happens it's for a reason."

"After tour I would love to get into film and singing for a while and I haven't had the chance to because I'm a dancer," Jordan added. "It would be awesome to get into that and just be in this industry. I love it."

Talking with the judges after the show, they explained their decision to let Jess and Jordan go.

"Well, we all knew when we hit the top 10 it was going to be difficult," judge Mary Murphy said. "They are all really great dancers. Jess and Tadd both had great solos. So what are you going to do? One just slightly edged out the other one. Tadd came out with a totally different solo and kind of shocked us! Tadd really did fight for his life and showed us a different side. That made it a little bit easier."

"We went in with different ideas. We were unanimous in a very short period of time," Nigel Lythgoe added. "We all believe that the girls did a really bad job tonight. We went back to Caitlynn's tango. Mary reminded us how brilliant Caitlynn was in the tango and I think that brought us into focus a little bit more."

As the finale rapidly approaches, Nigel did share his idea of who he feels will be in the final four.

"We do think that we'll probably end up with Marko and Sasha and Melanie and another in the finale," he said. "That's what all the voting has been all these weeks now. There is nothing, especially when they are getting better and better that leads me to believe that is going to change in any way. So who is going to be the other guy there?"

Mary says she thinks it could be a wild card like Ricky to nab that finale spot.

"For me Ricky is a dark horse that is coming through under the radar," she said. "I think he's quite surprising, he gives unbelievable duets in this competition. I have serious respect for Ricky, and he has this cute boyish charm that I don't think we should underestimate him."

However, guest judge Rob Marshall feels Tadd still may have the edge to go all the way.

"My gut feeling is Tadd has more of an edge because he is different and he comes from a unique place," he said. "When you watch Marko and Ricky they both have this incredible ballet technique. That's where they come from. Tadd comes from a different place and i think that may be embraced because it's different."

Do you agree with the judges pick for the final four? Are you happy with Jess and Jordan's elimination? Who do you think should be America's best dancer? Let us know in the comments.

Cowboys and Aliens' review: Genre mashup not quite firing on all cylinders

Set in the old West desert town of Absolution, Cowboys & Aliens has almost everything you'd expect to see in a classic Western: gunslingers, shoot-outs, saloons ... and aliens.

Just think of it as gourmet comfort food.

"Hopefully it's a really, really smart version of a very simplistic concept," actor-turned-director Jon Favreau tells NPR's Mary Louise Kelly.

As a director, Favreau is best known for his Iron Man mega-hits, but he says he was cautious not to let his latest film devolve into a sci-fi action popcorn movie.

"The trick is to discipline it so that the scale of the film remains a Western all the way through," he says. "Make it feel like a Western, don't immediately turn it into Independence Day."

Before they can settle their score, however, the other half of the movie's title -- the aliens -- finally figure into things, laying siege to Absolution in a midnight raid and carrying away a number of its residents.

Favreau has proven before that he can direct action sequences, and he does it again here, with a scene that is intense, prolonged and just plain big. The problem is that it takes so dadgum long to happen. We all know aliens will come into play -- it's right there in the title -- but Favreau insists on playing it coy, teasing us with the pretend mystery of what's in store for unsuspecting Absolution.

It takes a shade over 30 minutes before the aliens finally make their entrance, and even then we only see their shiny, trilobite-like ships. Another 15 minutes are wasted before we actually see one of the creatures.

That "make-'em-wait" conceit worked in Spielberg's "Jaws." Here, though, it's so self-consciously done that it feels as if Favreau is simply killing time, sacrificing story for the sake of his big reveal.

In between, there's a lot of chatting, a lot of attempted one-liners, a lot of Craig's character piecing together his past, as the human characters -- friend and foe alike -- band together to rescue their loved ones and defend their dusty little corner of the universe.

They end result is a genre mashup that does a decent job of serving both genres -- sci-fi and Western -- but one that doesn't really excel at either.

Tropical Storm Don 2011

Tropical Storm Don developed after being classified as an invest for nearly a week. The fourth tropical cyclone and fourth named storm of the 2011 Atlantic hurricane season, Don developed on July 27 from a persistent tropical wave in the southeastern Gulf of Mexico.

Meteorological history

The genesis of Tropical Storm Don was from a tropical wave first identified off the west coast of Africa in mid-July. Preceded by a surge of deep tropical moisture, it tracked westward over the open Atlantic for several days, with minimal convection confined to the monsoon trough. Throughout its journey, the wave became increasingly embedded within a broad area of cyclonic wind flow, enhancing the convection. The National Hurricane Center first mentioned the potential for gradual tropical cyclogenesis on July 21, when it was positioned about 750 mi (1200 km) to the east of the Windward Islands. As it neared the islands the next day, it briefly became better defined, although a spell of vertical wind shear and proximity to land impeded further development. Still in the vicinity of abundant moisture, the system generated largely scattered thunderstorms over much of the northeastern Caribbean, all the while deteriorating in organization.

Convection waxed and waned for several days during its passage through the Greater Antilles, and by July 25 significant redevelopment was not expected. The following morning, however, shower and thunderstorm activity reintensified south of western Cuba while the wave retraced to the west-northwest and slowed. It continued to gain in organization over the waters of the Yucatán Channel; radar data early on July 27 suggested a surface circulation was in the process of forming. In addition to surface wind estimates of 40 mph (65 km/h), a reconnaisance aircraft flight into the system confirmed the presence of a closed albeit elongated circulation center, prompting the NHC to initiate advisories on Tropical Storm Don at 2100 UTC that day. At the time, it was located about 120 mi (190 km) north of Cozumel, Mexico, steered along the southern periphery of a low- to mid-level ridge over the northern Gulf of Mexico.

Preparations

After the storm was named, officials in Texas began making preparations for Don. The University of Texas Medical Branch in Galveston issued a level one alert for Don, and city officials began preparing for a possible evacuation.

On July 27, Oil companies throughout the western Gulf of Mexico began removing non-essential personnel from their rigs and platforms in preparation for the storm. The next day, BP, Royal Dutch Shell, Anadarko and Apache announced the evacuations of some of the oil facilities in the area, while Exxon-Mobil began preparing the Baytown Refinery for a possible strike from the storm.

The state civil protection agency in Quintana Roo warned that the tropical wave from which Don formed was capable of dropping 80 to 150 mm (3.1 to 5.9 in) of rainfall over the state, while producing sustained winds of 35 to 45 km/h (22 to 28 mph) and gusts up to 65 km/h (40 mph). After Don was designated as a tropical storm, the Yucatán state government issued a green-level alert. The alert indicated that although the tropical storm was located close to the state, it was only considered to be slightly dangerous.

Late on July 27, the National Hurricane Center issued Tropical Storm Watches from Port Mansfield, Texas to San Luis Pass, Texas. Six hours later, the Tropical Storm Watch was extended southwards to the international border.

Impact

Several oil companies stopped oil production as a result of Don; by midday on July 28, 6.8% of oil production and 2.8% of natural gas production in the Gulf had been shut in ahead of the storm.

Current storm information

As of 4 p.m. CDT (2100 UTC) July 28, Tropical Storm Don is located within 30 nautical miles of 24.9°N 91.3°W, about 425 mi (690 km) east-southeast of Corpus Christi and about 395 mi (635 km) east of Brownsville. Maximum sustained winds are 40 knots (45 mph, 75 km/h), with stronger gusts. Minimum central pressure is 1005 mbar (hPa; 29.68 InHg), and the system is moving northwest at 14 kt (16 mph, 26 km/h).

Tropical storm force winds extend outward up to 85 miles (140 km) from the center of Don.

Smurfs' review, Blue creatures roll into New York City for a little family fun

Reboots of fondly remembered cartoon characters usually go one of two ways: They travel a high road marked by loving, carefully stewarded re-creation along the lines of the recent version of “Winnie the Pooh,” or they return as hip-hop-dancing caricatures spewing pop-cultural references like “Alvin and the Chipmunks.”

In “The Smurfs,” a small group of the blue, mushroom-dwelling woodland scamps raps along to the Run-DMC/Aerosmith version of “Walk This Way” while Neil Patrick Harris plays “Guitar Hero.” Yes, this is how director Raja Gosnell (“Scooby Doo”) and a group of four writers variously responsible for “Zookeeper,” “Are We There Yet?” “Daddy Day Camp” and “Norbit” decided to approach Belgian artist Peyo's beloved creations — by sending them through a wormhole into fast-paced New York City, where Smurf-out-of-water laughs theoretically ensue.

If this idea sounds overly familiar, it's because “The Smurfs” is basically “Enchanted” with cute, blue fairy-tale creatures instead of Amy Adams. Papa Smurf (voiced by Jonathan Winters), Clumsy Smurf (Anton Yelchin), Brainy Smurf (Fred Armisen), Smurfette (“California Gurls” singer Katy Perry) and new addition Gutsy Smurf (Alan Cumming) are pursued by evil wizard Gargamel (Hank Azaria, chewing every bit of scenery in Manhattan) and his cat Azrael, who want to extract their Smurf essence and rule the world or something.

What you don't know is that once Gargamel (played with mania that looks like an aneurysm by Hank Azaria, in full Sid & Marty Krofft-villain mode) follows the Smurfs through a portal, which appears every blue moon, into New York City, they're hardly distinguishable from other Times Square visitors.

They're lost, they natter on and eventually they befriend a frazzled ad man (Neil Patrick Harris, again part of a curious venture) about to become a father.

The ad man and Papa Smurf, voiced by Jonathan Winters, bond. Smurfette, voiced by Katy Perry for some reason, finds a friend in the ad man's wife.

Every other word is "Smurf": "Smurf off!," "No smurfing way!," etc. It always sounded strange; now it also sounds self-absorbed.

Azaria channels his inner Charles Nelson Reilly, which helps, as does an evil emoting cat. Kids under 7 will likely giggle at some too-harsh pratfalls, not care about a grown man's fear of procreation, not get all the tiny innuendos and possibly miss how the movie is a fairly successful tourism ad for New York (FAO Schwarz gets prominent play). Director Raja Gosnell also made "Scooby-Doo" and "Beverly Hills Chihuahua." At least for families, this is a bit smurfing better than those.

Soldier accused of planning new Fort Hood attacks

FORT WORTH, Texas — Pfc. Naser Jason Abdo, after raising suspicions at a Killeen, Texas, gun shop where he bought 6 pounds of gunpowder and several boxes of shotgun shells, was in police custody in Killeen on Thursday, accused of plotting to kill fellow soldiers in a frightening reprise of the November 2009 massacre at Fort Hood.

Abdo, 21, who grew up in Garland outside Dallas, was close to pulling off a "terror plot" in which the intended target was troops based at Fort Hood, said Killeen Police Chief Dennis Baldwin.

"We would probably be here today giving you a different briefing had he not been stopped," Baldwin said in a news conference Thursday afternoon.

Abdo is a Muslim and sought a discharge because he said he was conflicted about his faith and his military service. An infantryman, he was most recently stationed at Fort Campbell, Ky.

Baldwin said the early investigation, led by the FBI, has led them to believe that Abdo did not have accomplices.

Abdo, wanted by Army authorities since he was declared absent without leave from his Fort Campbell unit nearly a month ago, was arrested Wednesday at a hotel.

It is not known at this point why he traveled to Fort Hood, but a soldier such as Abdo who could legitimately bring weapons onto a base brought back memories for those familiar with the shooting deaths of 13 people at the base on Nov. 5, 2009. Army Maj. Nidal Malik Hasan faces the death penalty for that attack.

Abdo joined the Army in March 2009. A year later he requested conscientious objector status and was not deployed with his unit to Afghanistan.

Base officials quickly issued a statement to reassure soldiers. “At this time, there has been no incident at Fort Hood,’’ officials said. “We continue our diligence in keeping our force protection at appropriate levels.’’

Abdo, who joined the Army in April of 2009, gained national attention last summer when he refused to deploy with his unit to Afghanistan, insisting his Muslim faith prevented him from serving. He fought his deployment since 2010 and gave multiple interviews.

“I was under the impression that I could serve both the US Army and my God simultaneously,’’ he said in a television interview with CNN last summer. “As the time had come near to deployment, I started really asking myself . . . whether God would accept what I was doing and whether I was really meant to go to war as opposed to the peace that Islam preaches.’’

Army officials said Abdo was granted conscientious objector status in May, but his discharge was put on hold after the Army said it had discovered child pornography on his computer.

James Branum, a lawyer who represented Abdo during his conscientious objector case but who is not representing him in this matter, said Abdo had been “pretty upset’’ about the child pornography charges. “He told me that in good conscience he could not plead guilty,’’ he said.

In June a military grand jury referred his case to a general court-martial. Abdo disappeared shortly after.

A spokeswoman for the Killeen Police Department said Abdo was being held on charges of possessing obscene material and being absent without leave.

The Washington Post reported that after he was charged with child pornography, Abdo hitchhiked from Kentucky to Killeen, according to officials. After checking into a motel there, he went to the same gun store where Hasan bought a high-powered semiautomatic pistol two years ago.

David Cheadle, store manager of Guns Galore, said Abdo grabbed six cans of smokeless gunpowder but asked what smokeless gunpowder was prompting suspicion.

“It just didn’t sit right,’’ he said, adding that Greg Ebert, an employee who spoke with Abdo, then called the police.

Don closes on Texas coast, will spread much-needed rain

BP, ExxonMobil, Anadarko, Apache and Royal Dutch Shell shut in output from offshore platforms

--U.S. government says 6.8% of Gulf oil production, 2.8% of natural gas shut-in

--Tropical Storm Don moving toward Texas coast

--Don isn't expected to gain hurricane strength, NHC said

--ExxonMobil begins storm preparations at Baytown, Texas, refinery, nation's largest

(Adds tropical storm warnings in 4th paragraph and updates storm location in 5th paragraph)

Don had maximum sustained winds of 50 mph (85 kph) with higher gusts at 5 a.m. ET, quickly spinning toward the west-northwest at 14 mph (22 kph).

The storm was about 290 miles (470 km) southeast of Corpus Christi and about 245 miles (395 km) east of Brownsville.

"Some strengthening is possible until landfall, with weakening likely by Saturday morning," the hurricane center said.

Tropical storm force winds extend outward up to 105 miles (170 km), but mainly to the north and east of the storm's center.

It's not often that news of a tropical storm is welcomed, but Don's expected heavy rainfall may prove to be a silver lining for Texas.

"Some parts of Texas are more than 15 inches below average (for rainfall). This storm will likely not be a drought-buster, but could at least put a dent in and around where the storm makes landfall," CNN meteorologist Dave Hennen said Thursday. If Don "does not intensify into a hurricane, this is likely a good thing."

Any rain would be a welcome relief for many Texas farmers, who are suffering from the third worst drought in recorded history, according to the U.S. Department of Agriculture.

Most farmers have adopted an "I'll believe it when I see it" attitude when it comes to predicted rain, Texas Agriculture Commissioner Todd Staples said.

He also noted that even with the drought, this rain might not be a good thing for cotton farmers in coastal regions.

"We needed the rain during the growing season and we're getting it during harvesting -- it's the complete reverse here," he said.

"Along the Gulf Coast they're harvesting cotton and it could add insult to injury because the rain lowers the quality and makes harvesting difficult," he said. "All of this results in higher prices to the consumer because our supplies will be more limited."

Despite the drawbacks for the cotton industry, Staples said there's no denying the state desperately needs the rain.

"Unfortunately, no part of Texas has escaped the damage of this drought," he said. "We welcome Tropical Storm Don as much as we're looking forward to Friday night football.

Corpus Christi, Texas, resident Aubrey Carter, 87, has been diligently waking up at 3 a.m. to water her grass during the designated water restrictions.

"We are looking forward to Don coming because the drought has been so severe and everybody needs rain," she told CNN.

MaryJane Crull, marketing director at the South Texas Botanical Gardens in Corpus Christi, told CNN, "We're excited about it if Don remains a low-key tropical storm. ... We can handle six to eight inches of rain without a problem."

Wetlands on the property need the rain, Crull said.

"This will put water back in them and this will make birds and wildlife on our property happy and make visitors happy as well."

Companies with personnel along the Texas coast were quickly preparing.

ExxonMobil began evacuating nonessential personnel from offshore facilities in the path of the storm Thursday, spokesman Patrick McGinn said. Gross production of approximately 8,000 barrels per day of liquids and 50 million cubic feet per day of natural gas was shut down.

The U.S. Coast Guard issued a warning Thursday afternoon, urging people to plan and prepare ahead of the storm. The statement cautions residents to stay clear of beaches, to take action early -- including securing boating equipment and hazardous materials -- and to evacuate as necessary.

Single Tweet Draws Rowdy Ravers to Hollywood

When a deejay sent a Twitter message Wednesday telling people to come to a concert in Hollywood celebrating the release of a movie about raves, he wrote: "Let's see if the magic of social networking will work today."

Well, it did — in ways he never imagined.

His tweet brought hundreds to Hollywood Boulevard, creating a near riot that closed off a busy section of the thoroughfare in front of Grauman's Chinese Theatre for hours. The Los Angeles Police Department arrested three people on suspicion of felony vandalism in connection with damage to three police cruisers.

Officials said they were still considering criminal or civil actions against those who organized the event.

"Our personnel are working in conjunction with LAPD to investigate this incident. Once we receive the files and review everything we will make a determination about whether there was any criminal behavior," said John Franklin, a spokesman for the city attorney's office.

The deejay, known as Kaskade, did not return calls seeking comment. But he released a statement Thursday saying he didn't mean to incite trouble.

"I'm incredibly disappointed that last night ended the way it did," the statement read. "It's unfortunate that a few disrespectful people turned what was supposed to be a celebration of music into a regrettable event.

Without music, crowds outside the cinema grew restive and found themselves facing baton-wielding riot police. Three people were arrested after things turned rowdy, with would-be revelers hurling bottles at police and some jumping on a squad car.

Police and city officials were investigating what prompted the unruly crowd to gather. It was too early to say if Kaskade would face any legal action by authorities, city attorney spokesman Frank Mateljan said.

The crowds gathered soon after Kaskade tweeted: "ME+BIG SPEAKERS+MUSIC(equals)BLOCK PARTY!!!"

He apparently underestimated the appeal to his more than 92,000 Twitter followers. By 6 p.m., hundreds of people had gathered outside the cinema and were spilling onto the street. Police and fire officials soon closed the boulevard to traffic.

"They showed up because, allegedly, the DJ tweeted he was doing a concert," fire Battalion Chief Michael Bowman said. "People's expectation was they thought they were going to a free concert in the street."

Kaskade later sent tweets urging peace.

"Everybody CHILL OUT!!! The cops are freaking out. BE SAFE AND LET'S HAVE SOME FUN!" he wrote.

Kaskade was on a plane to play a show in Spain and could not be reached for comment Thursday.

Duddie said the after-party crowd at Supperclub was smaller than expected because people had a hard time getting to the venue.

Some ravers "planked" in front of riot officers — an Internet-driven phenomenon in which people lie face down in improbable places while their friends snap pictures.

Police were bracing Thursday for another large crowd in Hollywood, where Lady Gaga was scheduled to perform in a parking lot near the theater that hosts ABC's "Jimmy Kimmel Live." But the performance went smoothly and no problems were reported, police said.

The melee outside Grauman's was the latest music-related disruption in Southern California.

In October, members of the Orange County band Imperial Stars climbed atop a truck that stopped on U.S. 101 near Sunset Boulevard. Three members of the band, which performed a song called "Traffic Jam 101," have pleaded not guilty to conspiracy, creating a public nuisance and other charges. They could face up to three years in prison if convicted.

The Electric Daisy Carnival is the largest electronic music party in the U.S.

After it was banned from Los Angeles, it moved to Las Vegas. At an Electric Daisy event in Dallas in June, a 19-year-old man died and more than two dozen people were treated at hospitals for drug, alcohol and heat-related problems.

Samsung second quarter profit slides 18 percent

South Korean technology conglomerate joins a host of global companies in warning that fragile consumer demand is hurting sales of TVs, flat screens, computers and semiconductors.

"Samsung's earnings momentum will revive in Q3, but the recovery will not be strong because of weak economies in the U.S. and Europe," said Lee Dong-Jin, fund manager at KTB Asset Management." There are also no new IT applications that can drive demand as Apple's iPhone and iPad did."

Samsung, which reported operating profit fell 25-percent from a record, warned of a challenging business outlook. Falling chip prices are the biggest concern for the South Korean company as it earned half of its profit from semiconductors in the second quarter.

On Thursday, Sony Corp and Panasonic Corp also warned of weak TV sales, especially in the United States and Europe, following Philips (PHG.AS) and Corning Inc in highlighting anemic demand.

Samsung is however betting big on its mobile phone business as it rolls out new versions of tablets and phones, helping it capture market share from Research in Motion (RIM.TO) and Nokia .

Samsung's shares, which hit a record high in late January, have lost 12 percent so far this year, while the broader KOSPI has gained 5 percent.

The company boasts a market capitalisation of $134 billion, bigger than the combined value of Sony, Nokia , Toshiba Corp , Panasonic and LG Display .

Samsung has suffered this year due to slack prices for electronic components amid oversupply and weak demand. Net profit slumped 30 percent in the first quarter amid declines in memory chip prices and reduced profitability in LCDs and TVs.

Second quarter sales at the Suwon, South Korea-based company rose 4.1 percent to 39.4 trillion won from 37.9 trillion won a year earlier.

"We were confronted with a difficult business environment overall," Robert Yi, a Samsung vice president, said on an earnings conference call. Global economic uncertainties persisted, and consumer demand for products such as personal computers and televisions was "soft."

Yi said Samsung's revenue gain was "mainly due to strong handset performance led by continuing success of our smartphones."

Both operating profit and sales in Samsung's memory business fell as weak global personal computer sales suppressed demand for DRAM, or dynamic random access memory, chips used in the devices, the company said in a release.

Samsung's display panel business racked up an operating loss of 210 billion won, reversal from profit of 880 billion won the year before, with sales declining 9 percent as LCD prices fell.

Yi called the results in that sector "quite disappointing."

The bright spot continued to be mobile phones. Revenues in the company's mobile communications business, which includes phones, rose 45 percent from the year before. Sales of mobile phones increased from the previous quarter on the back of the company's flagship Galaxy S II smartphone.

Samsung, which ranks No. 2 in mobile phones behind Finland's Nokia Corp., has sold more than 5 million units globally of the updated smartphone since it went on sale in late April.

Samsung expects demand for mobile phones to increase 15 percent in the second half of this year driven by consumers upgrading to smartphones, it said in the release.

Shares in Samsung, which announced results before South Korea's stock market opened, rose 0.8 percent to close Friday at 844,000 won. The company's stock price has declined 11 percent so far this year.

Texans plug gaping holes in secondary by landing free agents Joseph, Manning

Joseph is no Nnamdi, but he’s also nothing to look over. He’s a young cornerback with a lot of talent. The Texans offense in 2010 was one of the league’s best but their defense often forced them out of games. With the addition of Wade Phillips at defensive coordinator and now the addition of Joseph, the Texans defense has made great strides.

The deal is a 5-year contract worth and a person with knowledge of Joseph’s deal told The Associated Press it was for five years and worth $48.75 million, with $23.5 million guaranteed.

It’s a bit surprising that Joseph went before Asomugha. Many people assumed that a team would sign Asomugha before Joseph so that the bar would be set for his contract. Nevertheless, it’s a great signing for the Houston Texans who were once believed to be one of three teams close to signing with Asomugha.

Texans intensified their pursuit of Joseph and fellow cornerback Nnamdi Asomugha on Wednesday. When Chavut, Joseph's agent, was ready to do the deal, Smith had to make a decision: Get Joseph or risk losing both of the highly rated free agents by waiting on Asomugha to pick a team.

With Joseph off the market, Asomugha might command as much as $3 million more per season.

The Texans told agents of other players that they wanted their clients but couldn't make offers until they found out if they had landed one of the two cornerbacks.

Now Smith and Olsen, who also negotiates contracts, can turn their attention to fullback Vonta Leach.

"It was a heck of a job by Rick and Chris," coach Gary Kubiak said. "We filled our primary need of getting an experienced big-time corner, and Joseph is still only 27. I can't tell you how excited I am about it."

Offensive tackle Eric Winston agreed.

"I'm very excited about getting Joseph," Winston said. "He's been an elite corner in this league, and his best years are still ahead of him. He'll definitely improve our team."

It has been a busy week for Smith and Olsen. They've agreed to new contracts that allowed the team to keep receiver Jacoby Jones, quarterback Matt Leinart and offensive tackle Rashad Butler. Draft choices must still be signed, a concern with training camp opening on Sunday.

Okoye, a first-round pick in 2007, and Anderson, a seventh-round pick in 2006, aren't expected to be the only salary-cap casualties.

"I was somewhat surprised," Anderson said while celebrating his 28th birthday. "But I've learned to never get too up or too down since I've been in this league. Sometimes you get caught up in the business of the NFL, and there's nothing you can do about it. They're trying to do some things that require (cap) room, and that's part of the game. I have no idea what's going to happen.

Republicans race to revive debt plan

It isn't easy to turn Washington around on a dime. If nothing else, give Republican House Speaker John Boehner marks for trying.

It wasn't a week ago that Mr. Boehner was plodding through White House deliberations, grasping for GOP support, facing the growing likelihood his party would be saddled with either a flawed debt bargain or blame for causing a default. By last night, Mr. Boehner was on the precipice of passing the only workable debt plan in town and shifting responsibility for further debt fallout across the aisle. Whatever the final result, Mr. Boehner's week-long struggle to pull his party behind him is worthy of some study.

That struggle began with the Ohio Republican's willingness to pack in a losing strategy. He'd invested valuable time and capital in his White House talks, and the pressure from the president, the press and the bipartisan crowd to grab a "big deal" was enormous. He looked very near to succumbing to the seductive pull of a grand Washington "compromise."

Instead, he realized that this White House had no intention of agreeing to serious debt reduction and that it cared primarily about tax hikes. His decision to call off the talks earned him some catcalls, but it reset the political dynamic.

For weeks, House Republicans had feared their only choice would be between a problematic Boehner-Obama deal or their principles. Many had chosen to risk default in the name of the latter. By outing the White House and pushing a legitimate Republican alternative, Mr. Boehner gave his members a new choice: They could rally behind their leader for a deal that was good (if not perfect), or they could hand victory to President Obama.

President Obama took it from there. His week of lashing out at the GOP—in a press conference, in a national address, in a veto threat—only clarified the stakes for members and began earning Mr. Boehner standing ovations. The desperate quality of the Democratic attacks confirmed for House Republicans that the speaker was on to something. His blunt warnings about the political fallout of default helped further focus minds, while Senate Minority Leader Mitch McConnell's support for the Boehner plan reassured House members that he'd back them in the Senate.

As the largest foreign creditor to the United States, Beijing has repeatedly urged Washington to protect its dollar investments, which are estimated to account for about 70 percent of its $3.2 trillion in foreign exchange reserves.

Boehner's plan, which would cut spending by about $900 billion and raise the debt ceiling for a few months, is sure to be rejected by the Democratic-controlled Senate but could factor into an eventual compromise.

His inability to win quick passage in the Republican-run House could weaken his position at the bargaining table.

Top Senate Democrat Harry Reid wants to raise the debt ceiling by enough to kick the crisis beyond the November 2012 presidential election.

Reid indicated late on Thursday that he may advance his own bill, which cuts spending by $2.2 trillion over 10 years, in the Senate rather than use Boehner's proposal as the basis for a compromise.

REPUBLICAN MEETING

House Republicans were due to meet at 10 a.m. (1400 GMT) on Friday to discuss a way forward after last-minute arm-twisting by Boehner failed to overcome opposition within his party and forced him to abandon a planned vote on Thursday night.

The setback raised doubt over his ability to deliver enough votes in any compromise deal with the Senate.

Lawmakers continued to throw blame at each other, with Democrats accusing Republicans aligned with the fiscally conservative Tea Party movement of holding Americans hostage to their vision of small government.

"Republicans have taken us to the brink of economic chaos. The delay must end now so we can focus on the American people's top priority: creating jobs and growing the economy," House Democratic Leader Nancy Pelosi said in a statement.

Tea Party lawmakers say they are justified in taking a strong stand after being elected last year on a promise to slash spending.

Fears of an unprecedented default by the world's biggest economy and the more likely scenario of America losing its top-notch credit rating are gnawing at markets, hitting stocks, undermining the dollar and fueling a move to safe havens.

Further market turbulence appeared likely on Friday. After the announcement that the House would not vote on Thursday, the dollar fell to a four-month low of 77.50 against the Japanese yen. U.S. stock futures were off 0.6 percent, pointing to a weaker start on Wall Street.

Veterans of U.S. legislative battles voiced confidence that a deal will be reached as Congress works through the weekend and feels the heat from jittery financial markets and ordinary Americans frustrated by the Washington gridlock.

The main sticking point between Republican and Democratic leaders is that Boehner's two-step plan would only extend the government's borrowing for a few months. Obama wants the debt ceiling raised beyond the November 2012 elections.

Without a deal, Obama could be forced to consider taking emergency steps to ward off a default even though the White House has said Congress must come up with a solution.

Among his options are invoking an obscure constitutional amendment to raise unilaterally the debt ceiling or for the Treasury to prioritize payments, choosing between paying bond holders or Social Security pension recipients, for example.

"I think they should be exploring all their legal options," Democratic Representative Chris Van Hollen said on Thursday night.

Striking Greek Taxis Demand Black Market Licenses

World has become too connected for any country or even individual to remain untouched whenever financial disaster occurs. Problems on one side of the globe easily affect the other, and you cannot go a day without learning something of what happens in the world's financial markets.

Look at Europe. Last year, Greece ran into trouble when the real amount of its public borrowing became publicly known. Investors started to panic, forcing up borrowing costs, and it finally had to accept a bailout from the European Union and the International Monetary Fund.

Following on from that, Ireland went down the same path, with its public debt rising after the government intervened to assist its banking system. Then there was Portugal, which appeared to be another victim of market panic exacerbated by political uncertainty.

Since then, Greece, Portugal and Ireland have each been downgraded to junk status by influential rating agencies. These downgrades have caused intensifying panic over the public debt crisis in Europe.

Market anxiety has also hit Italy, the euro zone's third-largest economy. In a single week, that government's bond yield rose by a full percentage point, a speed that could have shortly driven the country out of the market had euro zone leaders not agreed last week on a second 109-billion (4.66 trillion baht) package for Greece and strengthened the region's bailout mechanism.

It seems financial market problems pile up for years but are ignored. Then suddenly the situation becomes unsustainable and everyone heads for the exits, causing panic across the globe.

This does not mean that markets panic for no reason. Indeed, Europe does have serious problems. The public debt of 14 of the 27 EU countries is equal to more than 60% of their gross domestic product (GDP). Looking at the 17 euro-zone countries, the debt is even higher at 85% minimum. Greece topped the chart with 142.8% government debt to GDP, followed by Italy (119%), Belgium (96.8%), Ireland (96.2%) and Portugal (93%).

European public debts are high compared with those of emerging markets. Think about Thailand, for example. No matter how much we complain about our government's spending on social programmes, Thailand's public debt to GDP is still only 41%, a long way to go to reach European levels.

Greece has until this month shielded everyone from taxi drivers and hairdressers to pharmacists and lawyers from competition and falling prices. That protection is now giving way to the social and economic changes in new laws promised in return for the debt relief by the European Union so Greece won’t lose the euro as a shared currency.

The list of more than 150 occupations that were closed to new entrants until the legislation went into effect on July 2 also included antique dealers, locksmiths, real estate agents and print media delivery services.

“It’s a Soviet-style economy without the benefits of the coordination and planning,” Yannis Stournaras, director general of the Foundation for Economic and Industrial Research in Athens, said by telephone. “Right now, the Greek economy operates under a number of limitations that don’t exist in other euro region countries or exist at a much lower level.”

More than 8,000 taxi drivers from across Greece gathered outside parliament on July 26 to protest. Scuffles broke out yesterday with officers at Piraeus, Greece’s biggest port, when about 3,000 taxi owners tried to block access to some piers, police spokesman Takis Papapetropoulos said.

Truck drivers led the frontline last year, staging blockades on national highways for more than a week, preventing delivery of raw materials and fuel to factories.

Ragousis is scheduled to meet representatives from the taxi federation today, his office said yesterday.

Greece’s budget deficit widened 28 percent in the first half of 2011, with spending exceeding targets and revenue falling short, according to government data published on July 20. The economy is forecast to shrink 3.8 percent this year after a 4.5 percent contraction last year, the European Commission in Brussels said on July 4.

Deregulating professions can help combat unemployment, which stood at 15.8 percent in April, the government said.

Jose Manuel Barroso, president of the commission, created a taskforce this month to direct funds to help Greece become more competitive, tackle unemployment and boost growth.

Greece ranked 83rd among 139 countries in competitiveness, down 12 places from last year and just below Egypt, whose president was overthrown this year, according to the World Economic Forum’s 2010-2011 Global Competitiveness Report.

Some workers formerly protected by regulation agree that change needed to happen, though they say the government hasn’t done enough to cushion the impact on livelihoods as people adapt to Papandreou’s austerity measures to win new international aid.

“Eliminating closed professions isn’t bad, that’s not what we are against,” said Nikolaos Giannopoulos, who has run a newspaper and magazine stand in Athens’s main Syntagma Square since 1983. “The way the changes were carried through was just completely chaotic and sudden. We are not against change but there is no clarity on anything being done.”

Giorgos, speaking from his taxi in Athens, said he’s been working at least 10 hours a day to cover the cost of purchasing his license. He’s now bracing for an influx of more vehicles on the road, operating with permits bought directly from the state.

More than 1,000 people have applied for taxi permits since the law change because the business is lucrative, Stournaras at the IOBE foundation said. Buying a license on the black market was the same as any business taking a risk, he said.

“Instead of lowering the number of taxis, the government is opening the gateway to a flood of new taxi drivers,” said Giorgos. “It’s wrong. There are already too many.