National digest 6/27/02

Martha Stewart shares tumble on news of probe

NEW YORK -- Shares of Martha Stewart Living Omnimedia Inc. tumbled nearly 24 percent Wednesday, after reports the style maven may face a wider probe into alleged insider trading.

The widening investigation was reported Wednesday and said charges could include obstruction of justice and making false statements. The company's shares fell $3.20 to close at $10.40 on the New York Stock Exchange. The stock has fallen about 45 percent since news broke that Stewart's sale of stock in the biotech company was under scrutiny in an insider trading investigation.

Arafat will run again in January election

JERUSALEM -- Despite President Bush's demand for new leadership, Yasser Arafat will run for re-election in January, a senior aide said Wednesday, hours after the Palestinians announced sweeping reforms for the their financial, judicial and security systems.

The Palestinian Authority, under fire as corrupt and linked to terrorism, insisted its plans came in response to concerns of its own people, not Bush's calls for reforms and a new Palestinian leader. Israeli officials were skeptical.

House narrowly passes trade authority measure

WASHINGTON -- Trade legislation advanced in the House Wednesday in a pitched, partisan battle, clearing the way for talks with the Senate on a measure to strengthen President Bush's ability to negotiate global agreements.

The 216-215 vote, with one Republican voting "present," capped an intense week of maneuvering in which GOP leaders fought to quell internal unrest that nearly caused the bill's defeat last week, while fending off sharp Democratic criticism.

The bill would give the president authority to negotiate trade agreements and submit them to Congress for a yes-or-no vote, no changes allowed.

Chances fade to get action on anti-terror bill

WASHINGTON -- Hope all but vanished Wednesday for Congress to approve a $30 billion counterterrorism bill until after a weeklong recess for July 4, and the odds seemed as bleak for raising the federal debt limit.

The likely delays highlighted how pre-election politics has slowed work on two issues that at one time were characterized as urgent. House and Senate bargainers reported tentatively agreeing to a price tag for the counterterror package, which others said was roughly $30.4 billion.

Senate compromises on missile defense

WASHINGTON -- The Senate reached a compromise Wednesday over next year's budget for national missile defense, saying any extra Pentagon money should be spent on fighting terrorism rather than missile shields, but giving the president the final say.

The Democratic-crafted proposal states that if the president decides to use any extra funds to boost spending on missile defense, he does so against the will of the Senate.

Settlement of the missile defense issue clears the way for passage this week of a $393 billion defense authorization bill that approves the biggest real increases in defense spending in decades.

-- From wire reports