Tuesday 7 October 2008

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World Markets Rebound from Monday's Plunge

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Only major exchange to record significant downturn is Tokyo, where Nikkei finished with 3 percent loss
World markets are mostly higher after massive sell-offs Monday that saw several major exchanges hit multi-year lows. VOA's Michael Bowman reports from Washington, the rebound appears to be fueled by anticipation of lower interest rates, as well as new initiatives by the U.S. Federal Reserve to free up credit.Trader James O'Callahan watches the numbers at a post on the New York Stock Exchange floor, 07 Oct 2008One day after sinking to its lowest level in four years, Wall Street's Dow Jones Industrial Average opened higher.  Major European markets recorded gains in late-day trading.The only major exchange to record a significant downturn was in Tokyo, where the Nikkei finished with a 3 percent loss.After near-panic selling Monday amid continued worries about a growing credit crunch that could stunt global economic growth, markets appear calmer, according to Eugene Peroni of the U.S. financial firm Advisors Asset Management."The worst fears about all of this may have largely played out yesterday.  I do think that Wall Street will begin to sense that the bailout plan will have some effect, that it will start to calm nerves," Peroni said.Last week, President Bush signed into law a massive financial rescue package that empowers the federal government to buy bad debt from struggling U.S. financial institutions.  In addition, the Federal Reserve says it will take steps to make it easier for American companies to finance short-term needs like payroll obligations and purchasing supplies.  Another option open to central banks hoping to facilitate borrowing would be an interest-rate cut. Australia's central bank has lowered a key interest rate by a full percentage point.  The European Central Bank left interest rates unchanged last week, but left open the possibility of a future rate cut.Gold continues to rise. Crude oil is trading higher after several weeks of steep declines.  


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Economists Increasingly Convinced US is in Recession

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Analysts say with housing prices in sustained decline, credit markets frozen and consumer spending slowing, the question is not whether US economy is in recession, but how long it will last
With the global credit squeeze and stock market decline apparently gathering speed, corporate economists in the United States are increasingly of the view that the American economy is in recession. VOA's Barry Wood reports.Forecasters attending the Washington meeting of the National Association of Business Economics, or NABE, say the United States is already in the grip of recession.A recession is an economic downturn of at least six months. Technically, a panel of non-government economists determines whether a recession has begun. So far, that panel - the National Bureau of Economic Research - has not made a declaration. But economists at the NABE meeting say that with housing prices in sustained decline, credit markets frozen and consumer spending slowing, the question is not whether the U.S. economy is in recession, but how long it will last.Forecaster Chris Varvares, the incoming president of the NABE, fears that the downturn could be deep and long."There is a probability growing that has a much worse outcome for gross domestic product and that is a kind of 'into the abyss' scenario," said Varvares. "We hope we don't go there. We hope that the Treasury and the Fed [the Federal Reserve, the U.S. central bank] and all the other central banks around the world will keep us out of it. But confidence is very fragile."The 40 corporate economists surveyed two weeks ago say there will be no economic growth during this last quarter of the year - with very little growth for the entire year.  A mild upturn is expected in 2009. Their best-case scenario is a 2.7 percent growth rate in the second quarter.Princeton University professor Paul Krugman told the conference that the United States is in the same kind of deflationary economy that gripped Japan throughout the 1990s.He said fears that even if official short-term interest rates were reduced from their current two percent level, financial institutions would still be unwilling to lend. Krugman warns that the U.S. economy faces its deepest recession since the Second World War. He wants the government to institute a second fiscal stimulus program to put money into the hands of consumers who would spend it.   


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Obama Widens Lead Ahead of Debate

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After sharpening verbal attacks on each other, Republican John McCain, Democrat Barack Obama make final preparations for debate in Nashville, Tennessee Tuesday
Watch the debate LIVE on USAVotes2008.com, from 0100-0300 UTC

Democratic presidential candidate, Barack Obama talks to reporters about economic stimulus package in Ashville, North Carolina, 06 Oct 2008

U.S. polls show that Democratic presidential candidate Barack Obama has widened his lead over Republican rival John McCain ahead of a high-stakes debate Tuesday.A Washington Post-ABC News poll released Tuesday found Obama ahead of McCain 51 to 45 in the midwestern state of Ohio, a key state in the race for the White House. The poll said respondents gave Obama higher marks on handling the economy and bringing change to Washington.A CNN national poll found that Obama leads McCain 53 to 45 percent, double his lead from a September survey. But another national poll Tuesday by Reuters, C-SPAN and Zogby has Obama leading by just three percentage points.

Republican presidential candidate, Sen. John McCain

Senator McCain of Arizona and Senator Obama of Illinois debate Tuesday night in Nashville, in the southern state of Tennessee just as both campaigns intensify attacks that have become increasingly personal.On Monday, McCain accused Obama of accepting campaign money from failed mortgage companies Fannie Mae and Freddie Mac, while turning "a blind eye" to their impending collapse.The Obama campaign released an ad about McCain's role in a 1980s financial scandal.Tuesday night's debate will be a town hall-style format, which gives members of the audience a chance to ask questions.It will be the second of three scheduled presidential debates.

Some information for this report was provided by Reuters.


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Anti-Government Protesters Blockade Thai Parliament Despite Police Intervention

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Protesters, led by People's Alliance for Democracy, unsuccessfully tried to prevent Prime Minister Somchai Wongsawat from making maiden policy speech
Thailand's government faces an escalating crisis after police
repeatedly fired tear gas to break up protesters blockading the
parliament building. The clashes led to the resignation of a deputy
prime minister. As Ron Corben reports from Bangkok, the strife sets
back efforts by Prime Minister Somchai Wongsawat to defuse months of
anti-government protests.Anti-government protesters argue with riot police in front of parliament in Bangkok, 07 Oct 2008The violence in Bangkok erupted early
Tuesday when riot police using tear gas and stun bombs to clear
anti-government demonstrators who had barricaded themselves outside the
parliament building.The protesters, led by the People's
Alliance for Democracy, unsuccessfully tried to prevent Prime Minister
Somchai Wongsawat from making his maiden policy speech. Police
and protesters clashed several times during the day, and nearby
hospitals reported more than 100 people were admitted with injuries. A doctor at the Ramathibodi Hospital says emergency wards are on high alert."We
are prepared for mass casualty in the hospitals around about three to
five hospitals around this area ... bomb or just eye [tear] gas," said the doctor.PAD supporters, angry over the arrest of two of their leaders, vow to continue their blockade until the government quits.Deputy
Prime Minister Chavalit Yongchaiyudh resigned to take responsibility
for Tuesday's clashes. He had been working to negotiate an end to the
PAD siege of the prime minister's office building.Thaksin Shinawatra (File photo)Protesters
accuse Mr. Somchai's government of acting as a proxy for deposed Prime
Minister Thaksin Shinawatra. He now lives in Britain, having fled in
August to avoid corruption charges. PAD supporters accuse Mr. Thaksin
of being corrupt and authoritarian.A protester named Sam, was among thousands calling for the government to resign."The
people do not accept this government, so what we ask for, we ask for
real democracy not a government of Mr. Thaksin Shinawatra … and this
prime minister is the brother-in-law of Thaksin Shinawatra," he said. Other
protesters accuse of the government of seeking to undermine the
country's revered monarchy. Wannnisayanam says more people are coming
to join the protests despite the clashes with police."We've
been here for the king - our king. We are not going to let anybody
destroy democracy - you see how many people that are coming here," said
Wannnisayanam. The PAD leadership wants to prevent Mr.
Somchai's government from passing constitutional amendments that
critics say favor Mr. Thaksin. However, the PAD wants to rewrite the
constitution so that most members of parliament will be selected by
elite groups such as business owners. Sunai Pasuk, a spokesman for Human Rights Watch's Thai office, says the PAD appears to hope to trigger a military intervention. "This
is a situation where the PAD can conveniently pressure the military to
take sides.… It is clear that the crackdown can be categorized as
excessive use of violence by security forces and the action of the
police today can be directly linked to the policy of Prime Minister
Somchai," he said.In his policy speech Tuesday, Mr. Somchai
called for national reconciliation, and said his government is
determined to tackle economic problems the country faces.


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American, Japanese Win Nobel Physics Prize

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Yoichiro Nambu of US recognized for discovery of spontaneous broken symmetry in subatomic physics, Japanese will share prize for discovery of broken symmetry origin
Two Japanese scientists and one American of Japanese origin have won the 2008 Nobel prize in physics. The Nobel commission in Stockholm, Sweden, recognized Makoto Kobayashi and Toshihide Maskawa of Japan for their discovery of the origin of the broken symmetry that predicts the existence of at least three families of quarks in nature. Quarks are a type of subatomic particle.2008 Nobel Peace Prize winner for Physics, Japanese-born Yoichiro Nambu, 87, US researcher at the University of ChicagoYoichiro Nambu of the United States receives his part of the prize for the discovery of the mechanism of spontaneous broken symmetry in subatomic physics. His findings help explain why the universe is made up of mostly matter and not its opposite, anti-matter.The Nobel prize commission said Tuesday that these connected discoveries explain how the cosmos has survived, since equal amounts of matter and anti-matter would have annihilated one another. Four more Nobel prizes will be announced during the next six days, with the peace prize recipient being revealed Friday.

 

Some information for this report was provided by AFP, AP and Reuters.


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US, Vietnam Hold First Political-Military Dialogue

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Talks focus on possible US sales of weapons, spare parts to Vietnam, as well as American military help with disaster relief
The United States and Vietnam have discussed possible U.S. sales of
weapons and spare parts to Vietnam, as well as American military help
with disaster relief and a range of other issues. The two nations'
first strategic dialogue on political, defense and security issues
shows the continuing improvement in U.S.-Vietnamese relations, as Matt
Steinglass report from Hanoi.US Assistant Secretary of State for Political Military Affairs Mark Kimmitt (L) speaks during news conference in Hanoi as Vietnamese Deputy Foreign Minister Pham Binh Minh listens, 06 Oct 2008 U.S. Assistant Secretary of State Mark Kimmitt says the talks in Hanoi touched on a wide range of security affairs."Primarily
peacekeeping, military assistance, security assistance, potential arms
transactions, [that are] lethal, [and] non-lethal, and a host of other
issues of mutual concern," he said.            Vietnamese Deputy Foreign Minister Pham Binh Minh calls the talks, which ended Monday, productive.Minh says the dialogue helped contribute to the strengthening of ties between Vietnam and the U.S.The
Vietnamese military has asked the U.S. to supply spare parts for its
American-made helicopters, leftovers from the Vietnam War. The two
governments also discussed integrating Vietnamese soldiers into United
Nations peacekeeping operations, and American military help with
disaster relief in Vietnam.U.S. Deputy Assistant Secretary of
Defense James Clad, who was also at the talks, says Washington simply
wants to develop the same kind of military cooperation with Vietnam
that it already has with other countries in the region.            "It
would be incorrect to cast it is as something very bilateral. We have,
for example, routine exchanges with the Malaysians, with the
Indonesians, with the Filipinos, with the Thais. And I think as a large
ASEAN country, Vietnam is more and more coming into that world," he
said.Experts generally see the growing U.S.-Vietnamese security
relationship as an effort by both to balance rising Chinese power.
China and Vietnam have a dispute over the ownership of two island
groups in the South China Sea which may hold rich undersea oil deposits.But Clad says the U.S. wants Vietnam and China to have good relations, to promote regional stability.Martin
Gainsborough, a Vietnam expert at Bristol University in Britain, says
the talks carry promise for Vietnam, but also domestic political risks."Individual
leaders that are, in a sense, fronting this dialogue - they have to be
careful personally that they're not seen as leaning too heavily toward
the U.S. Again, not least because of the relationship with China," he
said. The two sides hope to make the talks an annual event. The next meeting is scheduled for autumn 2009 in Washington.


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China Warns of Consequences for US Weapons Sales to Taiwan

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Pentagon last week approved multibillion-dollar sale of missiles, helicopters, other military equipment to Taipei
China has warned that a U.S. decision to sell weapons to Taiwan will
harm Washington's relations with Beijing.  Daniel Schearf reports from
Beijing.Taiwanese military maneuver US-made M60 battle tanks during annual Han Kuang military exercises in Hsinchu, northwestern Taiwan (2007 file photo) China's Foreign Ministry condemned U.S.
plans to sell a package of military weapons to Taiwan, the self-ruled
island that Beijing claims as its own.The Pentagon last week approved a multibillion-dollar sale of missiles, helicopters, and other military equipment to Taipei.U.S. and Taiwan legislators have yet to approve the deal, but Chinese officials were quick to condemn it.Qin Gang talks to reporters in Beijing, 07 Oct 2008Foreign
Ministry spokesman Qin Gang says the move threatens China's security
and will gravely undermine U.S.-China relations.  He warns there will
be consequences.He says the U.S. action has created obstacles for not only military exchanges, but every field of U.S.-China cooperation.The Pentagon says China has already canceled or postponed some scheduled military and diplomatic exchanges. China
has hundreds of missiles aimed at Taiwan and has vowed to one day
reunite the island with the mainland, by force if necessary.  The two
split politically when Communist forces won China's civil war in 1949
and nationalist forces fled to Taiwan.

Under U.S. law, the government is allowed to sell military weapons to Taiwan.  The Pentagon says the planned deal complies with that law.Qin accuses the United States of upsetting peace in the region. He
says China's development is peaceful and does not pose a threat to any
other countries.  He says it is the U.S. arms sales to Taiwan that
disturbs the peaceful development of cross-straits relations and
undermines peace and stability across the strait.  


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Island Nations Top African Governance Index; Somalia Ranks Last

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Ibrahim Index of African Governance shows improvements in two-thirds of African governments
A newly-released list that ranks the effectiveness of governments in sub-Saharan Africa shows small island nations such as Mauritius, the Seychelles and Cape Verde at the top, and conflict-ridden countries such as Sudan, the Democratic Republic of Congo and Somalia at the bottom. VOA's Peter Heinlein reports the rankings were released in Addis Ababa.The rankings indicate two thirds of African governments are getting better year-by-year. Liberia is perhaps making the biggest strides toward good governance. On the other end of the scale, a few countries, particularly those where wars are being waged,are failing. Somalia, ungovernable for more than a decade, ranked last of the 48 countries surveyed,Those are the findings of the, an annual ranking of sub-Saharan African nations according to quality of governance. They are based on data for 2006, compiled and analyzed by experts from the Kennedy School of Government at Harvard University.Mo Ibrahim during press conference releasing the Ibrahim Index of African Governance, 6 Oct. 2008The Index is the idea of Sudanese businessman Mo Ibrahim, who made a fortune bringing mobile-phone technology to much of Africa during the past decade. He is now devoting his time and a substantial portion of his fortune to addressing what many consider Africa's biggest failing, bad governance.Ibrahim unveiled his second annual index at a news conference in Addis Ababa. He was joined by several board members of the Mo Ibrahim Foundation. Among them were Mary Robinson, the former president of Ireland and U.N. Human Rights chief, as well as Salim Ahmed Salim, the former head of the Organization of African Unity and former prime minister of Tanzania.  One of the most disturbing findings is that the quality of governance deteriorated between 2005 and 2006 in the Horn of Africa and the surrounding region, including Sudan. Salim Salim says regional conflicts are undermining all progress."You talk about conflicts. You talk of Somalia. You talk of the situation right now in Somalia which affects Ethiopia," he said. "You talk of the Ethiopia-Eritrea situation. You talk of Sudan, [this all] is involved in deterioration of the situation in Sudan, so the number-one problem that has affected this region has been the issue of conflict."Ibrahim admits the Governance Index is not perfect for two important reasons. First, the data is often provided by the rated governments themselves, and he says governments lie. Second, the picture is already dated, since the most recent data is from 2006, the last year for which statistics are available. But he says the index is a valuable tool, giving governments an assessment of the quality of services provided to their citizens. He says when he began looking at ways of re-investing the millions he made from his African company Celltel, he recognized good governance as the top priority."We could have given this money to the people in the camps in Darfur, to the vaccine for AIDS," Ibrahim said. "These are all pain killers, what we need is to define the root for conflict. Why Darfur happened. Why Somalia happened. Why DRC happened. What we need is to deal with the root of the disease, not to give aspirins. That is why I decided to give the money to this foundation."This year's index ranked Mauritius as the best governed sub-Saharan African nation for the second year. Next came Seychelles, Cape Verde, Botswana and South Africa, in that order. Liberia showed the most progress, jumping more than 10 points on the index, to move up to 38th place among the 48 countries surveyed. After Somalia, Africa's worst governed countries are the Democratic Republic of Congo, Chad, Sudan, Angola and the Central African Republic. Zimbabwe ranked 33rd among African nations in 2006, though analysts say recent developments will push it further down in future surveys.  The index measures governance based on five criteria: safety and security; rule of law; transparency and corruption; participation and human rights; economic opportunity and human development.   


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Massive Voter Registration Drive Favors Democrats

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Registration efforts have added some four million new voters to rolls in 12 key 'battleground' states, and figures show that Democratic candidate Barack Obama is set to benefit most from wave of first time voters
The deadline to register to vote in next month's U.S. presidential election is Monday, October 6, 2008, in several closely fought states. Massive registration efforts have added some four million new voters to the rolls in 12 key "battleground" states, and figures show that Democratic candidate Barack Obama is set to benefit the most from the wave of first time voters. VOA Correspondent Cindy Saine reports from Washington. Voter registration documents being examined at the Virginia State Board of Elections, 06 Oct 2008Voter rolls have expanded dramatically in 11 states the Obama campaign has targeted that were won by Republican President George Bush in 2004, including Ohio, Florida, North Carolina, Nevada, New Mexico and Virginia. Registration is also up in Pennsylvania, a state that Republican candidate John McCain has targeted, but was won by Democratic presidental candidate John Kerry in 2004.  In Florida, Democratic voter registration gains this year are more than double those made by Republicans. And in North Carolina, a Republican stronghold, the ratio has been 6 to 1 new voters registering as Democrats.Virginia, a state that traditionally leans Republican, has non-partisan registration. But most of the newly-registered votes live in neighborhoods in the northern part of the state - Washington, D.C. suburbs that lean toward the Democrats.Wesley Weidemann is the founder of the non-partisan citizens' group "Virginia Votes," an organization dedicated to strengthening the democratic process. He was standing at the top of a subway escalator in northern Virginia on Monday, giving would-be voters registration forms to fill out and mail in before the midnight deadline.Weidemann says this year, the enthusiasm of people wanting to register to vote has dwarfed anything he has seen."The voter rolls in Virginia are going to be up approximately 400,000 to 420,000 additional voters," said Wesley Weidemann. "And then if you take all of the first time voters, it is going to be over a half a million."Recent surveys indicate that Barack Obama holds a small lead in Virginia. Weidemann said the close race is attracting a stream of first-time voters, many of them foreign-born."There are a lot of people that are saying they are registering for the first time - that they have never felt it made a difference," said Weidemann. "Well, in Virginia it does make a difference this year because it is an extremely close election here. So people feel empowered and that their vote will make a difference."A woman named Dashona at the Virginia subway station said she wants to register before time runs out."Well, I'm old enough now, and it could change history, if Obama wins, which I hope he do [does]," she said.Retiree Benjamin Montgomery said he is updating his lapsed voter registration in Virginia ahead of the deadline."Because I want to make sure, this is history being made right now," said Benjamin Montgomery. "Barack Obama - I'm going to vote for him. I'm going to make sure there are no mistakes and I get to the polls."Political analysts point out that voter registration is important, but that all those new voters still have to show up at the polls on November 4.   


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US Public Television to Give Americans More World News

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New show, Worldfocus, intends to present foreign news in way that is interesting and significant to American audiences
A new nightly world newscast is being launched on U.S. public television, and producers of the new show say they intend to present foreign news in a way that is interesting and significant to American audiences. From VOA's New York Bureau, Mona Ghuneim has the story.

Producers of the new show Worldfocus say there is little foreign news coverage on television in the United States and what is covered is often glossed over or not explained very well to American viewers.

Referring to what he calls a "void in television news," executive producer of the program Marc Rosenwasser says he wants to focus on foreign news in a way that shows Americans how international events and happenings impact their lives. He says Worldfocus will draw from a large network of global newsgathering organizations and individuals, and the staff purposely comes from all over the world.

Rosenwasser says the show will incorporate diverse voices and viewpoints, something lacking in a lot of foreign news coverage in mainstream media. 

"We have assistant producers who come from the Middle East, Taiwan, Brazil, Africa. By having people who hail from all over the world, we think we can easily get well beyond the typical coverage of the same two or three major stories and extend our region to all kinds of stories," he said.

Those sorts of stories, says Rosenwasser, include examining major world trends, such as the effect of higher food prices on various nations and regions, as well as breaking foreign news, analysis and longer feature-type reports. The executive producer says he thinks Americans would be more interested in foreign events if they were better presented by the media and made to be more meaningful to them.

But American Jeffery McGraw does not wholly agree. The international content sales manager for Arts and Entertainment Television says he doesn't see how this show will be any different from other U.S. news programs that report foreign news. He says he thinks most Americans like their news fast and compact.

"People in America generally want their news in short and sweet sound bites. How will a show like this appeal to people who have very busy lives and do not have a lot of time to devote to domestic issues, let alone international issues? I think when things happening outside America affect America in a major way, people will be informed by mainstream sources," he said.

But McGraw says the show could still set itself apart through "execution." He says that part of why he watches one media outlet more than another is because of the way the news is delivered, and the appeal of the personalities presenting that news.

Worldfocus has recruited a big name in the U.S. news industry, correspondent Martin Savidge from NBC News, to be its anchor, and it plans to feature other top news and foreign affairs experts on a regular basis.

Worldfocus analyst Richard Haass is the president of the private Council on Foreign Relations in New York. He says Worldfocus comes at a time when the need for Americans to connect to what is happening around the world has never been as great, yet there is a lack of committed, regular, and substantial American programming on international news.

"I do not see this show as a 'news show.' That is not its function. This is not headline news. It is essentially more analysis behind the news and it is to choose a few principal stories and drill down and give them some depth."

Haass says that a lot of Americans are selectively interested in foreign news, such as trade and immigration stories or the war in Iraq, but that even when they do care about an issue, there is often a shortage of information or background or what he calls an "absence of perspective."

New York University graduate student Christina Garidis says she is not certain the general American public will tune in, but she thinks the United States does need a program like this.

"When we see things about other countries, it is usually to villainize or to objectify or separate ourselves from them. I would like to see it presented more in a way that shows how related we are to these remote cultures, and I would also like to see more good news because there is a lot of good stuff happening in the world - humanitarian projects going on - and we do not hear enough about that," she said.

Garidis says she does not own a television but that she might watch the show online.

The executive director says Worldfocus will also have a Web presence and will try to engage people outside of the United States in an interactive way. 

"We will ask people online to offer submissions about their feelings about something going on in their part of the world or something going on in the United States in which they can opine by submitting a video blog and we hope to incorporate those into a semi-regular feature on the show," he said.

Rosenwasser says the half-hour newscast has already secured coverage on eight out of the top 10 public television stations in the United States, with two New York stations airing the program twice each night.


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