National News

Consumer spending in the US rose by 0.4% in July, a faster rate than previously expected. Shoppers saved less of what they earned than in previous months.

Personal income grew by only 0.2%. Economists had expectations that both figures would increase by 0.3%.

A regional manufacturing survey in Texas, meanwhile, showed absolutely no growth in August, confirming a nationwide slowdown in industrial output.

Wall Street was underwhelmed with the new information, and the Dow Jones dropped about 0.7% by midday.

The consumer spending growth was the fastest since March, though total spending remains well below pre-recession highs.

The fact that personal income grew so slowly means that the savings rate in the US, which is the percentage of income that households choose not to spend, fell to 5.9% from 6.2% in June.

The US savings rate was close to zero when the global recession hit last year, signalling that households were spending almost all of their income.

It rose during the recession, which resulted in a big fall in consumer spending.

A lot of economists expect the savings rate to remain at 6% or even higher rise. Historically, the savings rate has been even higher at 8%-12%.

Glenn Beck, onservative talk show host, is facing some controversy for scheduling a rally at the site and on the day of an iconic 1963 civil rights demonstration.

He, Sarah Palin and other conservative stars will speak on Saturday at the Lincoln Memorial in Washington, 47 years after Martin Luther King Jr delivered his legendary “I Have a Dream” speech.

Mr Beck claims that the rally is an apolitical tribute to the men and women in the military.

Civil rights leaders, however, say that Beck's message runs opposite to Dr King's.

"It's an affront to what the civil rights movement stood for," Georgia Congressman John Lewis, who spoke at the 1963 March on Washington, told the Atlanta Journal-Constitution.

"We didn't do anything in anger and never tried to divide people. Glenn Beck is a very divisive force."

The march in 1963 was a turning point in the civil rights movement. Dr King's ”I Have a Dream”

speech at the Lincoln Memorial that day called for a united nation, free from racial discrimination. It is one of the most celebrated works of American oratory.

Beck is both a host on Fox News Channel and a prominent voice in the anti-establishment Tea Party movement. He accused President Barack Obama of racism last year, saying he had a "deep-seated hatred for white people or the white culture".

He promoted the “Restoring Honor” rally on Saturday as a non-political tribute to American troops aimed at restoring "the values that founded this great nation".

He claims that when planning the rally in DC, he was not aware that Saturday August 28 would mark the anniversary of the 1963 march.

"It's not the date, it's the message," he said on his television show on Thursday.

"I've heard it over and over again in the media that because of this event, on the date of this event, I'm somehow or another hijacking Dr Martin Luther King's speech. I'm not big enough to do that. No-one is."

A counter-demonstration will be held by a coalition of civil rights groups, called “Reclaim the Dream” elsewhere in Washington's National Mall.

The NATO forces commander in Afghanistan said the momentum built up by the Taliban has been reversed in the south of the country and Kabul, the capital.

General David Petraeus said that it was important to destroy the safe havens of the Taliban.

He added that he would give President Obama his professional advice on the wisdom of giving over control to the Afghan forces next July.

It is the president's choice to accept or reject that advice, he added.

The man who made remarkable change in Iraq seems confident that he can have a repeat victory, of sorts, in Afghanistan.

He made it clear, for one, the he felt that he did not have Washington breathing down his neck.

If he were thinking that the President's dedline of next August to start and American withdrawal was too risky, he said he would tell him so.

One would think he would be concerned about his job security after seeing the end of General McChrystal.

"When you go into a job like this, you always think it's your last job," he replied.

He said that he did not disagree that the Americans had taken their eyes off the ball in Afghanistan by invading Iraq.

He also said that he told Defense Secretary at the time, Donald Rumsfeld, that the war there could stretch out a long time.

He said that it did not receive a standing ovation.

Gen. Petraeus is adding a new bit of confidence to the NATO campaign and is doing what he did in Iraq, talking up the chances of success while keeping expectations realistic.

He does expect more casualties as NATO moves on Taliban strongholds.

He got noticeably emotional when talking about the deaths of men under his command.

He said that he “absolutely” cares about casualties.

BP has been accused of hiding important data needed to properly investigate the Gulf of Mexico oil spill.

Transocean is the company that owns the rig, and they alleged that BP refused to give over information about the initial explosion.

The claim was made in a letter from a Transocean lawyer and sent to President Obama's cabinet.

BP rejected the claim, saying the letter had "misguided and misleading assertions".

The claim risks further pressure adding up on BP, which has been the brunt of policital and public criticism since the disaster on April 20 killed 11 workers and caused the worst oil spill in US history.

Steven L. Roberts, a lawyer for Transocean, said in the letter, "BP has continued to demonstrate its unwillingness, if not outright refusal, to deliver even the most basic information to Transocean.

"This is troubling, both in light of BP's frequently stated public commitment to openness and a fair investigation and because it appears that BP is withholding evidence in an attempt to prevent any other entity other than BP from investigating," he wrote.

According to the AFP news agency, the letter was sent to members of Obama's team and Congressional leaders.

Transocean is looking at 249 lawsuits for damages over the disaster. The company has asked the court to limit its liabilities to $27 million, claiming it was not responsible.

A scientific inquiry into the aftermath of the spill has confirmed that the continued presence of a tocis chemical residue one kilometer below the ocean surface.

The investigation is being carried out by the Woods Hole Oceanographic Institute. It shows a plume of crude oil based chemicals up to 200m high and 2km wide, extending 35km from the site of the spill.

BP said in a statement that it was "unequivocal and steadfast" in its commitment to find out why the Deepwater Horizon rig exploded.

"We are disappointed that Transocean has opted to write a letter with so many misguided and misleading assertions, including the assertion that BP is 'withholding evidence'" on the explosion and spill.

"We have been at the forefront of co-operating with various investigations commissioned by the US government and others into the causes of the Deepwater Horizon tragedy," BP said.