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President Barack Obama says back-channel talks with congressional leaders last weekend have produced new progress in advance of a White House session Thursday on deficit reduction.

The president is siding with House Speaker John Boehner in insisting that negotiators resist the temptation to “kick the can down the road” and settle for a makeshift, short-term solution to stave off a first-ever U.S. default next month.

At issue is the need to raise the government’s so-called debt limit to avoid a default on its obligations to bondholders and Social Security beneficiaries. Republicans want deficit cuts in the range of at least $2.4 trillion over 10 years to offset the amount of new government borrowing needed simply to avoid another vote before 2013.

Obama met with Boehner on Sunday, the first session since Republicans last month abandoned negotiations being led by Vice President Joe Biden.

The Biden talks had produced a series of tentative understandings on potential spending cuts totaling at least $1.6 trillion under administration math and $2 trillion or more under GOP math. But negotiators say a true agreement on those cuts _ to day-to-day agency operating budgets, defense, federal pensions and farm subsidies, among other things _ would require further sacrifice in the political priorities of Democrats and Republicans alike.

The administration says that if the government’s borrowing authority is not increased by Aug. 2, the U.S. will face its first default ever, potentially throwing financial markets into turmoil.

Obama isn’t calling for increases in tax rates. On Tuesday, the president urged Republicans to agree to eliminate “certain tax breaks and deductions for the wealthiest of Americans.” The White House is pressing for the repeal of tax breaks enjoyed by the oil and natural gas industry and limits on deductions claimed by people in the 35 percent tax bracket.

On Tuesday, Boehner attacked the latter proposal as an assault on small businesses but was subdued on questions like oil and gas subsidies or a much-publicized tax provision that gives favorable treatment to companies that buy corporate jets business cards.

“We’re not dealing just with talking points about corporate jets or other `loopholes,’” Boehner, R-Ohio, said. “The legislation the president has asked for, which would increase taxes on small businesses and destroy more American jobs, cannot pass the House, as I have stated repeatedly.”

In his remarks Tuesday, Obama said he strongly opposes a stopgap, short-term debt-limit increase, as suggested by some lawmakers.

“We’ve made progress, and I believe that greater progress is within sight, but I don’t want to fool anybody. We still have to work through some real differences,” the president said.

Obama’s tone was less partisan than at a news conference last week, as were the responses from Capitol Hill Republicans.

“I’m pleased the president stated today that we need to address the big, long-term challenges facing our country,” Boehner said in a statement.

Obama said Republican and Democratic leaders from the House and Senate were invited to meet on the issue Thursday at the White House. That would bring the top eight lawmakers together with Obama, Biden and top administration financial officials.

“It’s my hope that everybody’s going to leave their ultimatums at the door, that we’ll all leave our political rhetoric at the door,” Obama said.

In the Senate on Tuesday, Majority Leader Harry Reid, D-Nev., postponed a test vote on a Libya resolution amid increasing opposition from Republican lawmakers who insisted they should be working on financial security, not national security. Several Republican senators had indicated they would oppose using the week to debate the Libya measure.

Reid replaced the Libya measure with a nonbinding resolution calling on millionaires to pay a bigger share of the sacrifices needed to wrestle the deficit under control _ hardly a move that would eclipse any progress made at the White House.

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The U.S. ambassador here says the Obama administration remains open to the idea of keeping thousands of American troops in Iraq next year, if asked, despite a spike of deathly attacks on soldiers by Shiite militias.

Ambassador James F. Jeffrey emphasized Saturday that no decision has been made by Washington. Baghdad’s Shiite-led government has not asked to extend the U.S. troop presence, though it is widely expected to do so.

Jeffrey says U.S. troops appear to be the militias’ top target now, but that attacks will continue against Iraqis if the American military leaves.

Fifteen U.S. soldiers died in Iraq in June, nearly all of them killed by Shiite militiamen. It was the bloodiest month for Americans troops in two years.

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An investment scheme to sell shares in a company purporting to build Russian vodka stands has cost local financial consultant Paul Burkemper a $100,000 fine and his ability to sell securities in the state of Missouri.

The sanctions were outlined in a consent order signed by Burkemper and the secretary of state’s office Wednesday and follow a cease and desist order issued by regulators in May 2010 that shut down the scheme. Under the agreement, Burkemper is banned for life from selling securities in the state.

Burkemper, whose office was in Sunset Hills, partnered with Ilya Vishnevetsky, formerly of Clayton, to sell shares to investors in I.P. Holding LLC, based in St. Louis. Investors were told their money would go toward building more than a dozen kiosks that would sell vodka in St. Petersburg.

But the securities were never registered with the state and investors did not receive required financial information regarding the venture, such as a business plan, statement of financial condition or risk disclosure.

Burkemper and Vishnevetsky also formed a business in 2008 called Select Auto to export cars from the U.S. to Russia. And they used some of the money from the vodka business to buy cars for Select Auto, without disclosing that to investors, according to the consent order.

At least 11 people invested $1.9 million in the vodka venture from 2006 to 2008. In the consent order, the state concluded that Burkemper made untrue statements and failed to disclose material facts in connection with the investment offer.

Burkemper was an agent of Overland Park, Kan no teletrack payday loan.-based VSR Financial Services from May 2004 through August 2009, and he approached some of his VSR customers with the vodka investment offer without disclosing the investment to VSR.

“It should be a big red flag if you’re working with a broker, it is against state law for them to engage in something on the side,” said Laura Egerdal, a spokeswoman with the secretary of state’s office.

“Oftentimes, these involve high amounts of risk or are just flat out scams.”

Through his attorney, Albert Watkins, Burkemper declined to comment.

Watkins said Burkemper is no longer selling securities but has started a consulting firm in St. Louis advising those in the securities industry how to avoid securities violations.

Many of the 11 investors in the vodka stand venture were Burkemper’s friends and family members, and Burkemper was deceived by Vishnevetsky into believing the vodka stands were being built in Russia, Watkins said. The lawyer also said Burkemper received electronic images of kiosks in development and copies of leases in Russia that later proved to be fakes.

Burkemper “has cooperated with regulators and federal law enforcement and has accepted his responsibility as the registered financial adviser, and for having getting everyone, including himself, involved in this investment,” Watkins said.

The secretary of state’s office had fined Vishnevetsky $34,000. He could not be reached for comment.

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Unemployment rates rose last month in more than half of the nation’s largest metro areas, driven higher by weak private-sector hiring and natural disasters.

The unemployment rate increased in 210 metro areas in May, the Labor Department said Wednesday. It fell in 131 cities and remained unchanged in 37. That’s a sharp reversal from April, when unemployment rates dropped in more than 90 percent of metro areas.

Nationwide, the unemployment rate ticked up in May to 9.1 percent and employers added just 54,000 net jobs. Employers added an average of 220,000 jobs per month in the previous three months.

Tornadoes and flooding shut some companies down in the South in late April and May. And a parts shortage stemming from the March 11 earthquake in Japan affected U.S. auto production. The metro employment data isn’t seasonally adjusted and as a result can be volatile from month to month.

One of the biggest increases was in Tuscaloosa, Ala., which was struck a deadly tornado that killed 41 people in late April. The unemployment rate there rose from 8.1 percent in April to 9.3 percent in May.

Toyota, Ford Motor Co., Nissan Motor Co. and Chrysler were all forced to shut down some or all of their North American factories because of the parts shortage. At least 13 metro areas in South Carolina and Louisiana, where many factories are located, saw significant gains in their unemployment rates. Detroit, Ann Arbor and Battle Creek, Mich., also saw big increases.

The sharpest increase in unemployment was in Yuma Ariz. The unemployment rate there rose from 25.3 percent in April to 27.9 percent in May. Competition from farmers in neighboring Mexico has left some cotton, wheat and lettuce growers out of work. Agriculture drives about 40 percent of Yuma’s economy.

Many of the areas with the steepest declines are tourist destinations. Hotels and tourist attractions add workers for the summer season. Ocean City, N.J., reported the sharpest decline. The unemployment there fell from 13.3 percent in April to 11.6 percent in May.

Other steep drops were in three California metro areas: Madera-Chowchilla, Santa Cruz-Watsonville and Salinas. All three cities are big farming communities that demand more seasonal workers at this time of year.

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In an effort to modernize the Illinois electric grid, state legislators approved a controversial bill last month to jump-start more than $3 billion of investment by the two largest utilities.

Led by Chicago-based ComEd, the utilities lobbied hard for the ’smart grid” measure, which would jolt the state’s electric distribution network into the 21st century and impose sweeping regulatory changes. Environmental groups have embraced the measure. Consumer advocates have condemned parts of it as a ploy to boost profit. Gov. Pat Quinn has vowed to veto it.

Regardless of how the drama plays out in Illinois, there’s no rush to follow suit on the other side of the Mississippi River. As with electric deregulation a decade ago, the Missouri utility industry would rather watch and wait. Regulators, utility executives and consumer advocates in Missouri see peril in rushing to spend billions of dollars on new technology that may not pay immediate dividends.

“Everybody agrees we’re using way-old technology and older infrastructure, and we have to move toward upgrading and updating our electrical grid,” said Missouri Public Service Commission Chairman Kevin Gunn. But “this is the perfect example where the Show-Me state motto is the right way to go.”

The term smart grid generally refers to technological upgrades designed to improve reliability and efficiency of the nation’s power grid. Most attention has focused on new digital meters, but other infrastructure aims to minimize outages, allow for increased use of renewable energy and allow consumers to buy cheaper power during off-peak hours.

“This is a major transformation of the power grid that’s going to take a numbers of years, it’s going to occur in stages, piece by piece,” said Peter Fox-Penner, a principal at the consulting firm Brattle Group.

national backlash

Across the country, smart grid projects, especially those involving new digital smart meters, have sparked a backlash. In Texas, regulators were asked to investigate the accuracy of the new meters. In San Francisco, customers are worried about electromagnetic radiation. A few California cities have declared moratoriums on the new meters. Privacy advocates worry about what utilities will do with the data they collect on consumer energy use.

All of this provided fodder for discussion last summer as the Missouri PSC held a smart grid workshop with representatives from utilities, the Energy Department and smart grid vendors. Regulators and utilities continue to closely watch demonstration projects in Fulton and Kansas City that are paid for partly with stimulus grants.

In Illinois, it’s the debate over the regulatory framework being proposed by utilities that’s raising second thoughts payday loans in one hour. David Kolata, executive director at Citizens Utility Board, a Chicago-based utility watchdog, said the group backs the bill’s smart grid provisions. What it objects to are more sweeping changes in the legislation that could expose consumers to higher rates.

“It’s increasingly clear that we’re not going to build our way out of future energy issues” by adding new power plants, he said. “But there cannot be a blank check” for utilities.

Whatever the cost, the benefits of a smart grid could be enormous. Some say it could do for the nation’s patchwork electric grid what the Interstate highway system did for car travel, and revolutionize energy use the way the Internet changed the flow of information.

Today’s grid is a giant one-way road where electricity is pushed from a few large generating plants to millions of customers. Utilities charge the same rate for every kilowatt-hour, even though electricity costs vary widely throughout the day. And consumers have little idea how much power they’re using, and so they have little incentive to use less at peak times when electricity prices are high.

The smart grid would make better use of intermittent power sources such as windmills and solar arrays. New meters could make it possible for utilities to charge different rates for electricity at different times of the day, so consumers can run the dishwasher or clothes drier at night to save money. And new smart thermostats and appliances would be able to automatically adjust power use in response to changing prices.

Such improvements would help utilities avoid building expensive new power plants that run only a few hours on hot summer afternoons to help meet peak demand. They would improve air quality and cut down greenhouse gas emissions.

barriers to entry

But getting from here to there won’t be easy or cheap. The Electric Power Research Institute estimates implementation of a nationwide smart grid will require investment of as much as $476 billion.

Advancing the smart grid also requires consumers to buy in. And it has been a tough sell so far. Earlier this month, Kansas City-based Black & Veatch released results of an industry survey showing the main impediment to smart grid implementation is a lack of customer interest and knowledge.

Much of the controversy has focused on the new digital meters. Some consumer advocates, like John Coffman, an attorney for the Consumers Council of Missouri and AARP, worry the devices will prove too expensive and need replacement too quickly. Coffman also worries it could make it too easy for utilities to disconnect customers who fall behind on bills.

For now, the new meters aren’t in Ameren Missouri’s plans. The cost of smart meters

British Prime Minister David Cameron insists the NATO-led air campaign in Libya still has strong support, despite recent criticism.

Cameron told lawmakers in Parliament on Wednesday that the coalition involved in the mission is “holding strong” and increasing the pressure on Moammar Gadhafi to quit power.

Cameron’s comments follow concern from the outgoing head of the Arab League, Amr Moussa, over civilian casualties and questions from some British military chiefs about the impact on stretched resources.

Italian Foreign Minister Franco Frattini has called for a pause in the campaign to allow access for humanitarian aid.

Cameron’s office said any temporary cease-fire must not allow Gadhafi’s forces to regroup and launch new offensives.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

TRIPOLI, Libya (AP) _ NATO warplanes resumed daytime strikes on targets in the Libyan capital Wednesday as alliance member Italy called for the “immediate suspension” of hostilities in the North African nation.

At least two explosions shook Tripoli before noon as fighter jets soared overhead. It wasn’t immediately clear what had been hit or if there were casualties.

In Rome, the Italian foreign minister called for a halt in fighting so aid corridors could be set up.

Franco Frattini said “the humanitarian end of military operations is essential to allow for immediate aid,” including in areas around Tripoli and the rebel stronghold of Misrata.

Frattini also expressed concern over civilian casualties, referring to “dramatic errors” in the bombing campaign.

“With regard to NATO, it is opportune to ask for more detailed information on results” in the attacks, he said in comments to a parliamentary commission that were carried by Italian news agencies.

Italy is Libya’s former colonial ruler and continues to maintain strong commercial ties to the country free credit report and score.

NATO’s daily airstrikes are coming under increased criticism by Libyan leader Moammar Gadhafi’s government, which accuses the alliance of targeting civilians.

NATO acknowledged it may have struck a residential building and caused civilian casualties in Tripoli earlier this week. It also hammered a compound belonging to a close Gadhafi associate and killed what Libya says was 15 civilians, including at least three children. NATO said that target was a “command and control” center.

A coalition including France, Britain and the United States began striking Libyan leader Moammar Gadhafi’s forces under a United Nations resolution to protect civilians on March 19. NATO assumed control of the air campaign over Libya on March 31. It’s joined by a number of Arab allies.

Rebels fighting Gadhafi’s forces have taken over much of the eastern half of the country. They also control pockets in the west, including the vital port city of Misrata, about 125 miles (200 kilometers) from Tripoli.

Rebel forces facing barrages of rockets and mortars launched by government troops are trying to push their front line forward from Misrata toward the capital. But an increased number of rockets have been hitting closer to Misrata this week, raising fears among rebels of a renewed push by Gadhafi’s forces toward the city.

On Wednesday, China told Libyan rebel leader Mahmoud Jibril that his Transitional National Council represents a growing segment of the Libyan public and is becoming a major political force in the country.

The comments by Chinese Foreign Minister Yang Jiechi were the country’s strongest endorsement yet of the rebel council. Beijing, an important trading partner with Libya, says it isn’t taking sides in the more than 4-month-old conflict.

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LM Ericsson AB has signed a deal to buy U.S.-based software development firm Telcordia for $1.15 billion, the Swedish wireless equipment company said Tuesday.

Ericsson said it will buy 100 percent of the shares in Telcordia from private equity firms Providence Equity Partners LLC and Warburg Pincus and expects to complete the acquisition in the fourth quarter 2011.

Telcordia, based in Piscataway, New Jersey, develops mobile, broadband and enterprise communications software and services. It reported revenues of $739 million during the fiscal year, ending January 31 and employs 2,600 people who will now be transferred to Ericsson.

The Swedish company said Telcordia has a leading market position within the operations and business support system field _ producing computer systems that are used by telecommunications operators to handle the growth in mobile and fixed broadband traffic easy payday loans.

“The importance of operations and business support systems will continue to grow as more and more devices are connected, services become mobile and new business models for mobile broadband are introduced,” Ericsson CEO Hans Vestberg said.

The acquisition is subject to regulatory approvals.

Shares in Ericsson rose by 1.8 percent to 88.80 Swedish kronor ($13.99) in Stockholm.

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Four new financial companies have joined a rival Canadian-only $C3.6 billion bid for the TMX Group that could block a proposed merger of the Toronto and London stock exchanges.

Maple Group Acquisition Corp. announced Sunday that Desjardins Financial Group, Dundee Capital Markets, GMP Capital Inc. and Manulife Financial have signed on as investors.

Manulife is Canada’s largest insurance company and Desjardins the biggest credit union, with major financial operations in Quebec. Dundee and GMP are smaller wealth managers.

Maple, made up of a who’s who of Canada’s major financial players _ including several major banks _ has put forward a US$3.67 billion bid to acquire TMX Group, which owns the Toronto exchange.

TMX rejected the bid, saying there are too many uncertainties, including regulatory and debt risks.

The bid from the London Stock Exchange is worth about US$3 billion.

The Maple bid is meant to keep TMX in Canadian hands after many bank and government officials raised concerns about the so-called “merger of equals” with the London Stock Exchange, which is technically a takeover by the British operator.

But TMX Group is intent on pushing ahead with the London Stock Exchange transaction and has publicly dismissed the threat that shareholders would accept the Maple proposal.

On Sunday, TMX declined to comment on the new Maple Group partners.

TMX’s rejection prompted Maple to go directly to shareholders with its offer. It hopes the addition of more big investors will send them a stronger signal.

A statement from Maple Group didn’t indicate if it would raise its bid, but spokesman Luc Bertrand says the additional investors are another indication that its offer is superior to the merger with the London exchange.

“Our vision for an integrated exchange provides a better way forward for Canada’s capital markets,” he said in the release.

Monique Leroux, Desjardins’ president and CEO, said the Maple bid for TMX “provides Canadians with an excellent opportunity to collaborate and cooperate in order to maintain a strong and growing financial industry that will enhance our economy both in Quebec and across Canada.”

Ned Goodman, chairman of Dundee Capital, said, “Canada’s small-and mid-cap companies and markets will do better with Maple than they will with the LSE. As an independent broker-dealer, we support Maple’s vision.”

Maple went directly to shareholders last month, announcing an informal C$48 (US$48.95) per share proposal -_ which represents a 24 percent premium to the implied value of the merger with the LSE Group.

Members of the Maple Group Acquisition Corp. include Alberta Investment Management Corp., Caisse de depot et placement du Quebec, Canada Pension Plan Investment Board, CIBC World Markets Inc., Fonds de solidarite des travailleurs du Quebec, National Bank Financial Inc., Ontario Teachers’ Pension Plan Board, Scotia Capital Inc. and TD Securities Inc.

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Police have arrested 14 Greenpeace activists who climbed aboard an oil rig off Greenland’s coast to protest deepwater drilling in the Arctic.

Four Greenpeace members are still onboard the Leiv Eiriksson oil rig, where they have locked themselves in two separate crane cabins, police and the environmental group said Saturday.

The rig is operated by Scottish oil group Cairn Energy, which has temporarily suspended its drilling due to the protest.

Police spokesman Morten Nielsen said those arrested will be taken to Nuuk, the semiautonomous Danish territory’s capital, and kept in detention. “I’m not sure whether we’re making more arrests today,” he said.

The activists launched five inflatable boats from the Greenpeace ship Esperanza early Saturday, bypassing the Danish navy and scaling the giant rig to demand that the company publish its plan for managing a potential oil spill in the freezing waters.

Greenpeace says Cairn Energy is not taking enough precautions to avoid accidents like the BP’s Gulf of Mexico blowout last year, saying the remoteness and the freezing temperatures in the area would make any spill cleanup extremely difficult.

Cairn insisted that it “seeks to operate in a safe and prudent manner” and that Greenland authorities have established stringent operating regulations similar to those in the North Sea quick guaranteed personal loans. It also said it has developed “an extensive emergency response and oil spill response plan” but that is not publicly available after a decision by Greenland authorities.

Cairn last month won permission to drill up to seven oil exploration wells off the Arctic island’s west coast.

Greenland’s government has called the Greenpeace action a publicity stunt that comes at the expense of Greenland’s “legitimate right” to develop its economy.

Earlier this week, two Greenpeace activists were arrested under the rig, hanging just a few meters from the drill-bit and preventing Cairn from starting drilling for four days.

Greenpeace says it has received a legal summons from Cairn’s lawyers for having cost the company up to $4 million for every day it could not drill and could face substantial fines for the security breaches. The lawsuit will be heard Monday in a Dutch court.

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Investors trying to duck a blow from the stock market by moving to bonds may be positioning themselves to take a left jab that they didn’t see coming easy pay day loans.

As the economy has weakened lately, investors pulled about $3 billion from stock funds and poured more than $8 billion into bond funds