Peace envoy Brahimi, Syria diplomats in Moscow talks

MOSCOW (Reuters) - Russia will host Syria peace envoy Lakhdar Brahimi this week after Syrian officials held talks in Moscow on Thursday as part of a diplomatic drive to try to agree a plan to end the 21-month-old conflict, Russia's foreign ministry said.

Talks have moved to Moscow, a long-time Syria ally, after a flurry of meetings Brahimi held in Damascus this week, but the international envoy has disclosed little about his negotiations.

Brahimi, who saw Syrian President Bashar al-Assad on Monday and is planning to hold a series of meetings with Syrian officials and dissidents this week, is trying to broker a peaceful transfer of power.

More than 44,000 Syrians have been killed in a revolt against four decades of Assad family rule, a conflict that began with peaceful protests in March last year, but which has descended into civil war.

Past peace efforts have floundered, with world powers divided over what has become an increasingly sectarian struggle between mostly Sunni Muslim rebels and Assad's security forces, drawn primarily from his Shi'ite-rooted Alawite minority.

Syrian Deputy Foreign Minister Faisal Makdad and an aide held talks for less than two hours on Thursday with Foreign Minister Sergei Lavrov and Mikhail Bogdanov, the Kremlin's envoy for Middle East affairs, but declined to disclose details of their visit.

Syrian and Lebanese sources said Makdad had been sent to Moscow to discuss the details of a peace plan proposed by Brahimi.

Foreign Ministry spokesman Alexander Lukashevich played down the idea that a specific new proposal was on the table in Moscow talks, at least one agreed by Moscow and Washington.

Asked about rumors of a Russian-American plan to resolve the conflict, he said: "There has not been and is no such plan."

'TRYING TO FEEL A WAY OUT'

"In our talks with Mr. Brahimi and with our American colleagues, we are trying to feel a way out of this situation on the basis of our common plan of action that was agreed in Geneva in June," Lukashevich told reporters at a weekly briefing.

Setting the scene for a planned Russian meeting with Brahimi on Saturday, he said, "We plan to discuss a range of issues linked to a political and diplomatic settlement in Syria, including Brahimi's efforts aimed at ending the violence and the launch of a comprehensive national dialogue."

World powers believe Russia, which has given Assad military and diplomatic aid to help him weather the uprising, has the ear of Syria's government and must be a key player in peace talks.

Moscow has tried to distance itself from Assad in recent months and has said it is not propping him up, but Lukashevich reiterated its stance that Assad's exit from power could not be a precondition for negotiations.

Setting such a condition, he said, would violate the terms of an agreement reached by world powers in Geneva on June 30 that called for a transitional government in Syria.

Lukashevich said Russia continued to believe there was "no alternative" to the Geneva Declaration and repeated accusations that the United States has reneged on it.

"Our American colleagues and some others ... have turned sharply from this position, by 180 degrees, supporting the opposition and conducting no dialogue with the government - putting the opposition in the mood for no dialogue with the authorities but for overthrowing the authorities," he said.

"The biggest disagreement ... is that one side thinks Assad should leave at the start of the process - that is the U.S. position, and the other thinks his departure should be a result of the process - that would be the Russian position," Dmitry Trenin, an analyst at the Moscow Carnegie Center, told Reuters.

But Trenin said battlefield gains made by the Syrian rebels were narrowing the gap between Moscow and Washington.

On Saturday, Lavrov said that neither side would win Syria's civil war and that Assad would not quit even if Russia or China told him to. Bogdanov had earlier acknowledged that Syrian rebels might win.

Lavrov has said this month that Russia had no intention of offering Assad asylum and would not act as messenger for other nations seeking his exit.

(Additional reporting by Nastassia Astrasheuskaya; Writing by Alissa de Carbonnel; Editing by Andrew Osborn)

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Fewer small businesses confident of growth in 2013: survey

SINGAPORE: Fewer small companies in Singapore are confident that their businesses will grow in 2013 compared to the years before, found the CPA Australia Asia Pacific Small Business Survey.

The survey, conducted by accounting body CPA Australia between 2 and 15 October, covered 250 businesses that have fewer than 21 employees. The businesses surveyed spanned the retail, information, media and telecommunications sectors.

Businesses in Australia, Hong Kong, Malaysia, New Zealand and Indonesia were also polled for this report.

According to CPA Australia, confidence among Singaporean small businesses has been on a steady decline since 2010.

74 per cent of small Singaporean companies expect their businesses to grow in the year ahead, down from 77 per cent and 85 per cent in the last two consecutive years.

Gavan Ord, business policy adviser at CPA Australia said: "While confidence is relatively high, Singapore small businesses are significantly more likely to expect their business to 'grow a little' than 'grow strongly', indicating that business confidence is somewhat weaker than (what) the headline figure indicates."

"Reflecting this, the percentage of Singapore businesses that expect to increase their marketing spend in 2013 is the lowest of all markets surveyed," he added.

More Singapore businesses however expect the local economy to improve.

60 per cent of small businesses in Singapore expect the local economy to grow "strongly" or "a little" in the year ahead, compared to 56 per cent a year ago.

- CNA/jc

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Mobile: 10 predictions for 2013

Verizon and HTC are just two companies that are expecting a busy 2013.

(Credit:
Sarah Tew/CNET)

If nothing else, 2012 has shown that the mobile industry is a pretty tough business to be in.

Many handset manufacturers, wireless carriers, and component suppliers felt the pressures of mobile business sink in, and as a result, there were a lot of shake-ups this year.

The same pressures and competitive dynamics are expected to persist next year, so expect a lot more action. The following predictions are based on conversations with industry sources over the last few months, market trends, speculation, and a little wishful thinking.

One thing's for sure, the industry should keep us all on our toes in 2013.

Consolidation continues


The wireless industry has long talked about the need for fewer service providers, and 2013 should follow through on some of the groundwork laid this year. SoftBank's controlling stake in Sprint Nextel and T-Mobile USA's merger with MetroPCS may signal a long-anticipated industry consolidation.

Other regional carriers such as U.S. Cellular and prepaid provider Leap Wireless could be in someone's crosshairs. MetroPCS and Leap were long rumored to be dance partners, but that talk ceased when T-Mobile opted to form a new company with MetroPCS. But perhaps there's room for Leap on that bandwagon?

Sprint attempted to make a run at MetroPCS, according to a Securities and Exchange Commission filing made by MetroPCS. Sprint could make another run at MetroPCS, or perhaps go after Leap. The wireless business is a scale business, where bigger is better, so maybe Sprint looks elsewhere?

It's a safe bet that the big two, Verizon Wireless and AT&T, won't be making any major deals. Verizon just managed to get approval for its deal to acquire spectrum from the cable companies, while AT&T is likely still gun shy after regulators squashed its attempted takeover of T-Mobile last year. AT&T has been content to strike smaller deals and get those through the regulatory maze.

CEO Steve Ballmer and the Windows Phone 8X from HTC.

(Credit:
Sarah Tew/CNET)

No clear third OS emerges


Next year sees a vicious battle for the so-called coveted No. 3 spot for mobile operating systems behind Google's
Android and Apple's iOS.

The contenders are Microsoft's Windows Phone 8 and Research in Motion's BlackBerry 10. Both have expressed confidence that they have what it takes to be the third player in this increasingly crowded business. Windows Phone 8 benefits from an earlier launch and the coattails of the massive
Windows 8 campaign from Microsoft. RIM, meanwhile, already boasts a large base of customers and will get a launch window all its own early next year.

Our call on this: nobody wins. Both will scrape by with just enough sales to warrant continuing, but neither will see spectacular performance.

While Microsoft is selling its Windows Phone 8 platform as part of a family of Windows 8 products, Windows 8 itself isn't off to a scintillating start, and that might slow adoption of the mobile OS.

BlackBerry 10, meanwhile, may get some traction with hardcore BlackBerry users who want an upgrade, but it'll take a while for RIM to convince other consumers to take another chance on the platform. While RIM likes to boast of its 80-million-strong customer base (now 79 million after the fiscal third quarter), many of those customers are using the more affordable BlackBerry 7 devices.

In addition, the dominance of Android and Apple make it extremely difficult for any third player to make inroads on the market.

RIM in store for a shake up

If BlackBerry 10 isn't a success out of the gate, expect to see some agitation within the investment community -- or what's left of it -- which has patiently held out hope for a turnaround. Investors don't have unlimited patience, and an early stumble could mean pressure on the company to shake things up.

That could mean anything from another change on top, although CEO Thorsten Heins has led the company with relatively far fewer mistakes than his predecessors, to a potential sale of the company. The company could make good on its push to license its BlackBerry 10 operating system to different industries.

Last year, I called for RIM to get taken out, and I won't be burned by that prediction again. RIM does survive, but it either a drastically reduced or transformed way.

Spectrum grab

It's amazing what a few deals will do to the state of a crisis, right? All of the industry's biggest players, including AT&T and Verizon Wireless, all claimed a looming spectrum crisis in justifying their respective deals. After Verizon got its cable spectrum, and AT&T scooped up a number of smaller businesses, the rhetoric has changed greatly. Even Sprint and T-Mobile are sounding a lot more optimistic about things.

But the companies do insist that they need more spectrum, or the airwaves used to carry cellular traffic like voice and data, and they will likely pursue further deals next year. Sprint bought spectrum from U.S. Cellular, likely a prelude of future spectrum swaps. Verizon is also selling off a swath of its spectrum as a condition to acquiring an alternative patch of spectrum from the cable providers, something that'll likely entice all companies, including T-Mobile to other smaller regional companies.

Dish Network, meanwhile, is sitting on a wealth of spectrum. The most likely scenario is that it sells to AT&T, but the company is considering dabbling in mobile video.

A new chairman of the Federal Communications Commission is expected to replace Julius Genachowski next year, but with President Obama back for a second term, the FCC's agenda and focus on spectrum shouldn't change too much.

Google gets more active in wireless service

Sound farfetched? Well, the recent rumors that Google met with Dish to talk about a new wireless service lends some credibility to this prediction.

And Google already has a wired business in Google Fiber. While the deployment is limited to one area, the fact that it exists shows the Internet search giant is willing to dabble in different projects.

Dish has slowly been amassing enough spectrum for a nationwide service of its own, and has made it clear it would like to build a network. But the business requires a lot of capital, and it's unclear whether Dish has the firepower to actually meet its goals. Enter Google, which has a lot of cash and technical resources.

This prediction is admittedly on a longer limb. It wouldn't be surprising if this never happened.

What does Sprint CEO Dan Hesse have in store for us next?

(Credit:
Lynn La/CNET)

Softbank kick-starts Sprint

The infusion of $8 billion in additional capital should do wonders for Sprint's prospects in the wireless market. The company has been criticized for its slow deployment of 4G LTE, which has managed to avoid major cities while covering "key markets" such as Rome, Ga., and Rockford, Ill.

Well, the extra cash should get CEO Dan Hesse moving a lot quicker when it comes to its 4G LTE rollout, which lags behind AT&T and Verizon. Unlike AT&T, which at least has a relatively quick HSPA+ network for its phones, Sprint customers using the most high-end devices are stuck on the painfully slow 3G CDMA technology, since it dropped using its variant of 4G, WiMax, in favor of LTE.

Sprint should get a wider selection of smartphones thank to its relationship with SoftBank. If SoftBank CEO Masayoshi Son is to be believed, Sprint will get even more competitive with pricing as it takes on its bigger rivals.

Higher focus on prepaid

Every carrier is going to rededicate itself to attacking the prepaid market, particularly with growth in the contract subscriber market quickly evaporating.

T-Mobile, which already has a sizable prepaid business, should only see its presence grow there once it joins up with MetroPCS, which only offers no-contract plans. CEO John Legere's hints at a "different experience" for its iPhone could mean an affordable prepaid option for Apple's marquee device.

Even larger carriers such as Verizon can't ignore prepaid, given the need to keep customer growth humming. Sprint, which has been aggressive in prepaid with its Virgin Mobile and Boost Mobile lines, was seen as the biggest potential loser of the T-Mobile-MetroPCS marriage.

Using Google Wallet to pay for a cab ride was complicated and awkward.

(Credit:
Roger Cheng/CNET)

Mobile payments whiff again

Next year is the year for mobile payments, really! Yeah, that line has only been uttered a few times over the past several years, and so far, we've got a few limited launches.

Google continues to have the most visible initiative out there, and it hasn't really taken too many people by storm, despite seeding the capability and Google Wallet out to its Nexus smartphones. Isis, the joint venture between AT&T, Verizon Wireless, and T-Mobile, just started its trials last month, and there are no signs when it'll move beyond that. The deal between Starbucks and Square seems interesting, but for now, it's largely Square processing Starbucks payments and not fully utilizing the advantages of full mobile payments.

Mobile payments continue to be hampered by rival groups all with their own agendas, and some don't even feel it really addresses any real problems.

Apple, meanwhile, hasn't committed to the Near-Field Communication technology used by many of the mobile payment parties, and offers its PassBook as its take on a mobile wallet. Even then, the implementation has been limited and disappointing.

Apple, Samsung will dominate, but new entrants could mix things up

With the iPhone and, increasingly, the Galaxy S, brands coming with their own built-in hype machines, expect the two companies continue reaping in a majority of the profits. Companies such as HTC, LG, and Sony have struggled this year, and those struggles are expected to continue with few of them bringing out a product that really changes their circumstance.

HTC has the best shot with its
Droid DNA, but it too lacks the resources to effectively compete against Apple and Samsung. Sony, LG, and a myriad of other companies are still looking for the right answers.

Next year could see some interesting new smartphones from Microsoft and Amazon, both long rumored to be building their own handsets. Google's Motorola Mobility unit is reportedly building an "X" flagship phone that will better compete with the iPhone and Galaxy S III.

Samsung and Apple reach a settlement


Let's file this one under the wishful thinking category. But I can't be the only one sick of writing and reading about patent lawsuits, right?

This one is (sadly) not looking so good, especially if Samsung is saying this.

Let's hope that the goodwill from the holidays carries through to Apple and Samsung's lawyers. But most likely, the hostilities will continue as both try to one-up each other in courts around the world.

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Former President Bush in ICU

Updated 6:40 p.m. ET

A "stubborn" fever that kept former President George H.W. Bush in a hospital over Christmas has gotten worse, and doctors have put him on a liquids-only diet, his spokesman said Wednesday, describing Bush's condition as guarded to CBS News.

Jim McGrath, Bush's spokesman in Houston, had said earlier in the day that the fever had gone away, but he later corrected himself.

"It's an elevated fever, so it's actually gone up in the last day or two," McGrath told The Associated Press. "It's a stubborn fever that won't go away."

"Following a series of setbacks including a persistent fever, President Bush was admitted to the intensive care unit at Methodist Hospital on Sunday where he remains in guarded condition," McGrath said in an emailed statement. "Doctors at Methodist continue to be cautiously optimistic about the current course of treatment. The President is alert and conversing with medical staff, and is surrounded by family."

Doctors at Methodist Hospital in Houston have run tests and are treating the fever with Tylenol, but they still haven't nailed down a cause, McGrath said. Doctors also have put Bush on a liquid diet, though McGrath could not say why.

The bronchitis-like cough that initially brought Bush to the hospital on Nov. 23 has improved, McGrath said. The 88-year-old is now coughing about once a day, he said.

Bush was visited on Christmas by his wife, Barbara, his son, Neil, and Neil's wife, Maria, and a grandson, McGrath said. Bush's daughter, Dorothy, will arrive Wednesday in Houston from Bethesda, Md. The 41st president has also been visited twice by his sons, George W. Bush, the 43rd president, and Jeb Bush, former governor of Florida.

Bush and his wife live in Houston during the winter and spend their summers at a home in Kennebunkport, Maine.

The former president was a naval aviator in World War II - at one point the youngest in the Navy - and was shot down over the Pacific. He achieved notoriety in retirement for skydiving on at least three of his birthdays since leaving the White House in 1992.

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Okla. Senator Could Prevent Gun Control Changes

If there's one person most likely to keep new gun-control measures from passing Congress swiftly, it's Sen. Tom Coburn.

Conservatives revere the Oklahoma Republican for his fiscal hawkishness and regular reports on government waste. But he's also a staunch gun-rights advocate, and he's shown a willingness to obstruct even popular legislation, something in the Senate that a single member can easily accomplish.

That mixture could make Coburn the biggest threat to quick passage of new gun-control laws in the aftermath of the Newtown, Conn., shooting that has prompted even pro-gun NRA-member lawmakers like Sen. Joe Manchin, D-W.Va., to endorse a new look at how access to the most powerful weapons can be limited.

Coburn's office did not respond to multiple requests to discuss the current push for gun legislation. But given his record, it's hard to imagine Coburn agreeing to a major, new proposal without some fuss.

The last time Congress considered a major gun law -- one with broad support -- Coburn held it up, proving that the details of gun control are sticky when a conservative senator raises unpopular objections, especially a senator who's joked that it's too bad he can't carry a gun on the Senate floor.

After the Virginia Tech massacre in 2007, Congress heard similar pleadings for new gun limits, some of them similarly to those being heard now. When it came to light that Seung-Hui Cho, the mentally disturbed 23-year-old who opened fire on campus, passed a background check despite mental-health records indicating he was a suicide threat, a push began to include such records in determining whether a person should be able to buy a gun.

Rep. Carolyn McCarthy, D-N.Y., a longtime gun-control advocate whose husband was killed in a mass shooting on the Long Island Rail Road in 1996, introduced a widely supported bill to do just that. The NRA backed her National Instant Check System Improvement Amendments Act of 2007.

But Coburn didn't. The senator blocked action on the bill, citing concerns over patient privacy, limited gun access for veterans, and the cost of updating the background-check system,

In blocking that bill, Coburn pointed to a government study noting that 140,000 veterans had been referred to the background-check registry since 1998 without their knowledge.

"I am certainly understanding of the fact that some veterans could be debilitated to the point that such cataloguing is necessary, but we should ensure this process does not entangle the vast majority of our combat veterans who simply seek to readjust to normal life at the conclusion of their tours. I am troubled by the prospect of veterans refusing necessary treatment and the benefits they are entitled to. As I'm sure you would agree we cannot allow any stigma to be associated with mental healthcare or treatment of Traumatic Brain Injury," Coburn wrote to acting Veterans Secretary Gordon Mansfield.

Coburn succeeded in changing the legislation, negotiating a set of tweaks that shaved $100 million over five years, made it easier for prohibited gun owners to restore their gun rights by petitioning the government, and notifying veterans that if they abdicated control of their finances they would be added to the gun database. The bill passed and President Bush signed it in January 2008.

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Egypt's leader signs contentious constitution into law

CAIRO (Reuters) - Egyptian President Mohamed Mursi signed into law a new constitution shaped by his Islamist allies, which he says will help end political turmoil and allow him to focus on fixing the fragile economy.

Anxiety about a deepening political and economic crisis has gripped Egypt in past weeks, with many people rushing to buy dollars and take out their savings from banks. The government has imposed new restrictions to reduce capital flight.

The new charter, which the secularist opposition says betrays Egypt's 2011 revolution by dangerously mixing religion and politics, has polarized the Arab world's most populous nation and prompted occasionally violent protest on the streets.

Results announced on Tuesday showed Egyptians had approved the text with about 64 percent of the vote, paving the way for a new parliamentary election in about two months.

The win in the referendum is the Islamists' third straight electoral victory since veteran autocrat Hosni Mubarak was toppled in 2011, following parliamentary elections last year and the presidential vote that brought Mursi to power this year.

Mursi's government, which has accused opponents of damaging the economy by prolonging political upheaval, now faces the tough task of building a broad consensus as it prepares to impose unpopular austerity measures to prop up the economy.

The presidency said on Wednesday that Mursi had signed a decree enforcing the charter overnight after the official announcement of the result of the referendum approving the basic law, Egypt's first constitution since Mubarak's overthrow.

The opposition has condemned the new basic law as too Islamist, saying it could allow clerics to intervene in the lawmaking process and leave minority groups without proper legal protection. It also said the referendum was marred by widespread electoral violations.

Nevertheless, major opposition groups have not called for new protests, suggesting that weeks of civil unrest over the constitution may be subsiding now that it has passed.

Mursi, catapulted into power by his Islamist allies this year, believes adopting the text quickly and holding the vote for a permanent new parliament will help end a protracted period of turmoil and uncertainty that has wrecked the economy.

Mursi's government argues the constitution offers enough protection to all groups, and that many Egyptians are fed up with street protests that have prevented a return to normality and distracted the government from focusing on the economy.

The constitution gives Egypt's upper house of parliament, which is dominated by Islamists, full legislative powers until a vote for a new lower house is held. The chamber convened on Wednesday for the first time since the constitution's adoption.

CONCERNS

The government has begun a series of meetings with businessmen, trade unions, non-governmental organizations and other groups to persuade them of the need for tax increases and spending cuts to resolve the country's financial crisis.

Mursi has committed to such austerity measures to receive loans from the International Monetary Fund.

While stressing the importance of political stability to heal the economy, Mursi's government has sought to play down economic woes and appealed for unity in the face of hardship.

"The government calls on the people not to worry about the country's economy," Parliamentary Affairs Minister Mohamed Mahsoub told the upper house in a speech.

"We are not facing an economic problem but a political one and it is affecting the economic situation. We therefore urge all groups, opponents and brothers, to achieve wide reconciliation and consensus."

Mursi is due to address the upper house on Saturday in a speech likely to be dominated by economic policy.

Sharpening people's concerns, the authorities imposed currency controls on Tuesday to prevent capital flight. Leaving or entering Egypt with more than $10,000 cash is now banned.

Al-Mal newspaper quoted Planning Minister Ashraf al-Araby as saying the government would not implement a series of planned tax increases until it completes a dialogue with different parts of society.

Adding to the government's long list of worries, Communications Minister Hany Mahmoud has resigned citing his "inability to adapt to the government's working culture".

The United States, which provides $1.3 billion a year in military aid plus other support to Egypt and sees it as a pillar of security in the Middle East, called on Egyptian politicians to bridge divisions and on all sides to reject violence.

"President Mursi, as the democratically elected leader of Egypt, has a special responsibility to move forward in a way that recognizes the urgent need to bridge divisions," State Department spokesman Patrick Ventrell said.

(Additional reporting by Patrick Werr; Writing by Maria Golovnina; Editing by Peter Graff)

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Vivian Balakrishnan attends state funeral of former Gerakan president

SINGAPORE : Singapore's Environment and Water Resources Minister Vivian Balakrishnan was in Kuala Lumpur on Wednesday to attend the state funeral of former Gerakan president, Lim Keng Yaik.

Dr Balakrishnan conveyed condolences on behalf of the Singapore Government.

He was accompanied by Singapore's High Commissioner in Kuala Lumpur Ong Keng Yong.

Dr Lim, who served as Malaysia's Energy, Water and Communications Minister from 2004 until 2008, died on Saturday.

He was 73.

- CNA/ms

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Stuxnet attacks Iran again, reports say

An Iranian news agency says the country successfully fended off yet another attack by the Stuxnet worm, according to reports.

The cyberattack targeted a power plant and other sites in southern Iran over the fall, the BBC and the Associated Press reported today.

Discovered in June 2010, Stuxnet is believed to be the first malware targeted specifically at critical infrastructure systems. It's thought to have been designed to shut down centrifuges at Iran's Natanz uranium enrichment plant, where stoppages and other problems reportedly occurred around that time. The sophisticated worm spreads via USB drives and through four previously unknown holes, known as zero-day vulnerabilities, in Windows.

Stuxnet is just one of several versions of malware aimed at Middle Eastern countries in the past two and a half years. Along Stuxnet, there have arisen Duqu, Gauss, Mahdi, Flame, Wiper, and Shamoon.

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Obama cuts Hawaii trip short to address "fiscal cliff"

KAILUA, Hawaii President Barack Obama is cutting short his traditional Christmas holiday in Hawaii to return to Washington as lawmakers consider how to prevent the economy from going over the so-called fiscal cliff, the White House said Tuesday.

Obama will fly back to the nation's capital Wednesday night, just five days after arriving in Hawaii, White House officials said. In the past, the president's end-of-the-year holiday in his native state has stretched into the new year.

Congress is expected to return to Washington on Thursday. Automatic budget cuts and tax increases are set to begin in January. So far, the president and congressional Republicans have been unable to reach agreement on any alternatives.

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Seven days 'til the "fiscal cliff"

9 Photos

The Obamas in Hawaii

CBS News correspondent Nancy Cordes reported earlier Tuesday that the president will likely put pressure on Congress to pass a Democratic plan being drafted by Senate Majority Leader Harry Reid.

"There still have been no conversations between Democrats and Republicans Tuesday on how to avert the fiscal cliff," Cordes reported from Hawaii. "That's a sure sign that Reid is working on crafting legislation on his own, which he'd essentially dare Republicans in the House and Senate to pass just before the deadline."

Cordes notes that Reid's bill would likely extend the Bush-era tax cuts for households making less than $250,000 a year. It may also include enough short-term spending cuts to temporarily offset, for about six to eight months, the across-the-board spending cuts set to go into effect on January 1, 2013.

Lawmakers have expressed little but pessimism for the prospect of an agreement coming before Jan. 1. On Sunday, Sen. Kay Bailey Hutchison, R-Texas, said she expects any action in the waning days of the year to be "a patch because in four days we can't solve everything."

The Obamas were spending the holiday at a rented home near Honolulu. On Christmas Day, the president and first lady Michelle Obama visited with Marines to express thanks for their service.

"One of my favorite things is always coming to base on Christmas Day just to meet you and say thank you," the president said. He called being commander in chief his greatest honor as president.

Obama took photos with individual service members and their families.

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Winter Storms Spawn Tornadoes Across South

A nasty Christmastime storm system spawned blizzard conditions in some states and at least 15 reported tornadoes in the South, damaging homes, taking out power lines and dangerously snarling holiday travel.

Severe weather swept across the United States during the Christmas holiday, bringing tornadoes and intense thunderstorms to the Gulf Coast, while dumping heavy snow and freezing rain on the Southern Plains.

At least 15 tornadoes were reported today from Texas to Alabama, putting this storm system potentially on track to be one of the largest Christmas day tornado outbreaks on record.

One large tornado was reported in Mobile, Ala., where there are about 19,000 customers without power and 23,429 statewide, according to Alabama Power. Kerry Burns, a Mobile resident originally from Boston, said the storm "sounded like a freight train."

Some buildings in the area, including some churches and a local high school, were reportedly damaged. Ray Uballe, another Mobile resident, said his dad was shaken up.

"He was in his apartment," Uballe said. "He said it sounded like an airplane and then the door flung open and then there was just debris flying."

Douglas Mark Nix, president of the Infirmary Health System, said one of their Mobile hospitals lost power and sustained damage. There were no early reports of injuries to staff or patients.

"We are operating now on generator power," he said. "We do not have substantial damage but we do have a number of windows out and we have some ceiling tiles down, throughout the facility at the main hospital.

"We can run for at least two weeks but I saw power crews out all over the city so I fully expect power to be restored within the next day or so," Nix added.

Melinda Martinez/The Daily Town Talk/AP Photo

Winter Weather Causes Holiday Travel Problems Watch Video

At least eight states were issued blizzard warnings today, as the storms made highways dangerously slick heading into one of the busiest travel days of the year.

Oklahoma got about 7 inches of snow all over the state making for treacherous road conditions. ABC News affiliate KOCO-TV in Oklahoma City said the weather was being blamed for a 21-vehicle wreck on Interstate 40, but no one was seriously injured.

Ice accumulation in Arkansas bent trees and power lines, leaving at least 50,000 customers across the state without power. About 10 inches of snow fell on Fayetteville, Ark.

The storms, which first wreaked havoc on the West Coast before moving east, are being blamed for at least one death in Texas.

Investigators in the Houston area told ABC state KTRK-TV in Houston that a young man was trying to move a downed tree that was blocking the roadway when another one snapped and fell on top of him. He was later pronounced dead at a hopsital.

The last time a number of tornadoes hit the Gulf Coast area around Christmas Day was in 2009, when 22 tornadoes struck on Christmas Eve morning, National Weather Service spokesman Chris Vaccaro told ABC News over email.

The deadliest Christmastime tornado outbreak on record was Dec. 24 to 26, 1982, when 29 tornadoes in Oklahoma, Missouri, Arkansas, Tennessee and Mississippi killed three people and injured 32.

The last killer tornado around Christmas, Vaccaro said, was a Christmas Eve EF4 in Tennessee in 1988, which killed one person and injured seven. EF4 tornadoes can produce winds up to 200 mph.

No official word yet on the strength of the string of tornadoes reported today.

While some were preparing for a Christmas feast, others were hunkered down.

More than 180 flights nationwide were canceled by midday, according to the flight tracker FlightAware.com. More than half were canceled by American Airlines and its regional affiliate, American Eagle.

The storm system is expected to continue east into Georgia and the Carolinas Wednesday and could potentially spawn more tornadoes, according to the National Weather Service.

ABC News' Matt Gutman, Max Golembo and ABC News Radio contributed to this report.

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