Incomes see largest drop in 20 years

U.S. consumer spending rose in January as Americans spent more on services, with savings providing a cushion after income recorded its biggest drop in 20 years.

Income tumbled 3.6 percent, the largest drop since January 1993. Part of the decline was payback for a 2.6 percent surge in December as businesses, anxious about higher taxes, rushed to pay dividends and bonuses before the new year.

A portion of the drop in January also reflected the tax hikes. The income at the disposal of households after inflation and taxes plunged a 4.0 percent in January after advancing 2.7 percent in December.

The Commerce Department said on Friday consumer spending increased 0.2 percent in January after a revised 0.1 percent rise the prior month. Spending had previously been estimated to have increased 0.2 percent in December.

January's increase was in line with economists' expectations. Spending accounts for about 70 percent of U.S. economic activity and when adjusted for inflation, it gained 0.1 percent after a similar increase in December.

Though spending rose in January, it was supported by a rise in services, probably related to utilities consumption. Spending on goods fell, suggesting some hit from the expiration at the end of 2012 of a 2 percent payroll tax cut. Tax rates for wealthy Americans also increased.

The impact is expected to be larger in February's spending data and possibly extend through the first half of the year as households adjust to smaller paychecks, which are also being strained by rising gasoline prices.

Economists expect consumer spending in the first three months of this year to slow down sharply from the fourth quarter's 2.1 percent annual pace.

With income dropping sharply and spending rising, the saving rate - the percentage of disposable income households are socking away - fell to 2.4 percent, the lowest level since November 2007. The rate had jumped to 6.4 percent in December.

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Fiscal talks fail, U.S. stumbles toward steep cuts

The U.S. government stumbled headlong on Friday toward wide-ranging spending cuts that threaten to hinder the economic recovery, after President Barack Obama and congressional leaders failed to find an alternative budget plan.

The cuts, locked in during a bout of deficit-reduction fever in 2011, can only be halted by agreement between Congress and the White House.

A deal proved elusive in talks at the White House on Friday, meaning that government agencies will now begin to hack a total of $85 billion from their budgets between Saturday and October 1. Financial markets in New York shrugged off the stalemate in Washington.

Democrats predict these cuts could soon cause air traffic delays, furloughs for hundreds of thousands of federal employees and disruption to education and law enforcement.

The full brunt of the automatic cuts will be borne over seven months, and Congress can stop them at any time if the two parties agree on how to do so.

But Obama was resigned to budgets shrinking.

"Even with these cuts in place, folks all across this country will work hard to make sure that we keep the recovery going, but Washington sure isn't making it easy," he said after meeting Republican and Democratic congressional leaders.

Given the absence of a deal, Obama is required by midnight to issue an order to federal agencies to reduce their budgets in a process known as "sequestration." The White House budget office must send a report to Congress detailing the spending cuts.

The Dow Jones Industrials were up 45 points after midday, recovering from earlier losses on encouraging manufacturing data.

FURLOUGHS LOOM

In coming days, federal agencies are likely to issue 30-day notices to workers who will be furloughed.

"Not everyone will feel the pain of these cuts right away. The pain though will be real. Beginning this week, many middle class families will have their lives disrupted in significant ways," Obama told journalists in the White House.

"We will get through this. This is not going to be an apocalypse," he said.

Democrats insist that the solution include bringing in additional revenue through closing what they call tax loopholes that largely benefit the wealthy and U.S. corporations. Republicans reject this approach.

"The discussion about revenue, in my view, is over. It's about taking on the spending problem," House of Representatives Speaker John Boehner said on leaving the meeting.

Moving to head off a new budget crisis later this month, Boehner said the Republican-led House would move a "continuing resolution" to fund government through the rest of the fiscal year. "I'm hopeful that we won't have to deal with the threat of a government shutdown," he said.

The International Monetary Fund warns that the cuts could slow U.S. economic growth by at least 0.5 of a percentage point this year, hitting the global economy.

The non-partisan Congressional Budget Office predicts 750,000 jobs could be lost in 2013 and federal employees throughout the country are looking to trim their own costs.

"The kids won't go to the dentist, the kids might not go to the doctor, we won't be spending money in local restaurants, local movie theaters," said Paul O'Connor, president of the Metal Trades Council, which represents some 2,500 workers at the Portsmouth Naval Shipyard in Kittery, Maine.

In the absence of any deal at all, the Pentagon will be forced to slice 13 percent of its budget between now and September 30. Most non-defense programs, from NASA space exploration to federally backed education and law enforcement, face a 9 percent reduction.

Both sides still hope the other will either be blamed by voters for the cuts or cave in before the worst effects predicted by Democrats come into effect.

No matter how Obama and Congress resolve the 2013 battle, this round of automatic spending cuts is only one of a decade's worth of annual cuts totaling $1.2 trillion mandated by the sequestration law.

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Frustrated McIlroy walks off course at Honda

PALM BEACH GARDENS, Fla. (AP) — Rory McIlroy abruptly walked off the course Friday at the Honda Classic, telling reporters who followed him to his car he's "not in a good place mentally."

He later said it was more dental than mental, releasing a statement that he couldn't concentrate because of a sore wisdom tooth.

The surprising departure raised serious questions about golf's No. 1 player with the Masters just more than a month away. McIlroy has played only four rounds in three tournaments this year, and this was a clear sign of frustration.

McIlroy was asked three times if anything was wrong physically and said there was not.

"There's not really much I can say, guys," he told three reporters before he drove away. "I'm not in a good place mentally, you know."

McIlroy already was 7-over par through eight holes of the second round when he hit his second shot into the water on the par-5 18th at PGA National. He shook hands with Ernie Els and Mark Wilson and was headed to the parking lot before they even finished the hole.

Els also hit into the water on the 18th and was complaining to a rules official about the muddy conditions of the fairway when he realized McIlroy was through.

"I was dropping my ball and I realized he wasn't dropping his ball," Els said. "I thought maybe his ball crossed further up (the hazard). When I hit my fourth shot, he just came up and said, 'Here's my card. I'm out of here.'"

About an hour after he left, McIlroy released a statement that pinned his withdrawal on dental problems.

"I have been suffering with a sore wisdom tooth, which is due to come out in the near future," McIlroy said. "It began bothering me again last night, so I relieved it with Advil. It was very painful again this morning, and I was simply unable to concentrate. It was really bothering me and had begun to affect my playing partners."

He was seen eating a sandwich on the 18th fairway.

McIlroy apologized to the tournament, saying he had every intention of defending his title at the Honda Classic. He said on Twitter he was "gutted."

"I'm a great fan of Rory's, but I don't think that was the right thing to do," Els said.

Told about McIlroy's statement about the sore wisdom tooth, Els softened his stance, not wanting to judge another player's pain.

"I didn't see anything, but if he had a toothache, that's what it is, you know?" Els said. "Hey, it's tough. If you ask him how he's feeling now, he's obviously feeling terrible for what's happened this morning."

"I didn't notice anything," Wilson said. "He wasn't playing the way the world No. 1 plays normally. Didn't hit the ball where he wanted to, and he's a true gentleman, though. He ... wasn't treating Ernie and myself in a different way. He was upset with his golf and I guess he had enough for the week."

McIlroy, coming off a year in which he won a second major in record fashion, already set himself up for scrutiny when he left Titleist to sign an equipment deal with Nike that was said to be worth upward of $20 million a year.

Nike introduced him with blaring music and a laser show in Abu Dhabi, but it's been all downhill from there.

McIlroy missed the cut in the Abu Dhabi Golf Championship with rounds of 75-75. He took a four-week break, and then was eliminated in the opening round of the Match Play Championship to Shane Lowry in one of the most poorly played matches of the round.

McIlroy played 36 holes with Tiger Woods at The Medalist on Sunday and said Tuesday it was no time to panic.

"Even though my results haven't revealed it, I really felt like I was rounding a corner," McIlroy said. "This is one of my favorite tournaments of the year and I regret having to make the decision to withdraw, but it was one I had to make."

It looked more like McIlroy was sinking than rounding the corner, not difficult to do on a course with so many water hazards. And he found plenty of them.

McIlroy, who opened with a 70, hit two poor chips that led to double bogey on No. 11, and a wild tee shot to the right led to a bogey on the 13th. His round really unraveled on the par-4 16th, when he hit his tee shot to the right and into the water, took a penalty drop and then came up short of the green and into the water again. He made a 6-foot putt for a triple bogey.

He three-putted from 40 feet, running his first putt about 10 feet by the hole, for a bogey to go 7 over. And then came the approach on the 18th that found water for the third time on his short day.

McIlroy is scheduled to play next week in the Cadillac Championship at Doral, which has no cut, and then the Houston Open. But on the first day of March, he has completed only four rounds of competition.

Els said the attention on McIlroy was sure to increase.

"I didn't think much of the equipment change. We've all made equipment changes before," said Els, who has used three brands of clubs to win majors. "I think there was a bit of criticism somewhere, and then I think he's furthering responding to that, and I think he's got a bit of pressure coming on him that way. I thought he played quite well yesterday. I thought he was pretty close to playing good golf, and unfortunately this morning ... hopefully he gets it together. We've got next week, got four rounds there. Such a talented player, he'll get it figured out."

It was the second straight year one of golf's biggest stars failed to finish a tournament on the Florida swing. Woods withdrew after 11 holes on the final round at Doral last year because of tightness in his Achilles tendon, raising questions about the seriousness of his recurring leg injuries. He won Bay Hill two weeks later.

McIlroy at least drove off from PGA National without a helicopter camera following him.

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'Switched at Birth' goes silent to make a point

LOS ANGELES (AP) — "Until hearing people walk a day in our shoes, they will never understand," says a guidance counselor at a high school for deaf students in "Switched at Birth."

Such insights are a staple of the ABC Family drama, a TV rarity that puts deaf characters, played by deaf or hard-of-hearing actors, at the center of the action.

But Monday's episode takes it a bold step further: Save for a few spoken words at the beginning and the end, it is silent. The actors' hands do the talking with American Sign Language, even rapping together in one gleeful sequence.

Subtitles, which are typically sprinkled throughout "Switched at Birth" episodes, keep the viewer clued in. But when a deaf character is confused because she can't hear something vital, the audience is too. It's powerfully disconcerting.

The cast, including Oscar-winner Marlee Matlin as the school counselor, are excited about what they see as a grand experiment and eager for viewer reaction.

"This is an opportunity for the hearing person to watch at home and try to experience it," said Katie Leclerc, who stars as deaf teenager Daphne Vasquez. "It's not exactly the same, but maybe you can try to imagine what your everyday life would be like."

"It's a risk," added Leclerc, who has an inner ear disorder, Meniere's disease, that can cause hearing loss and vertigo.

"A big risk," Matlin said through a sign language-interpreter. "But it's going to be an eye-opener. I'm very proud to be part of this risk-taking, history-making episode."

Matlin knows about making history. She was the first — and remains the only — deaf person to receive an Academy Award acting trophy, honored as best actress for 1986's "Children of a Lesser God."

The "Switched at Birth" episode pivots on another key moment for the deaf community: A 1988 student protest at Gallaudet University in Washington, D.C., that ended the unbroken succession of hearing presidents at the school for the deaf.

For fictional Carlton High School (inspired by real-life LA school, Marlton), more is at stake: The school faces closure because of funding cuts, which means its students will be "mainstreamed" with hearing teens.

(It mirrors a real-life trend caused by budget constraints, Leclerc said. There's also an increasing number of children being given cochlear implants to counter hearing loss, itself a controversial issue, according to series creator and executive producer Lizzy Weiss.)

The prospect is dreaded by the Carlton students, either because they've felt the sting of being an outsider or because they treasure being part of a deaf-oriented school.

"Deaf people feel that moving into the mainstream chips away at their community, which is about language and culture," said Jack Jason, Matlin's longtime interpreter and the series' on-set arbiter for correct sign-language use.

With Daphne as the driving force and invoking Gallaudet, students mobilize to take over the administration building and demand Carlton's survival. The conflict's ending will wait for the March 11 season finale.

The uprising panics parents and puts relationships at risk, including that of Daphne and Bay Kennish (Vanessa Marano), the switched-at-birth characters of the title who have come together as teenagers from two very different households.

"We started in the pilot with just one scene that was pure ASL," involving Daphne and Emmett (Sean Berdy), said Weiss. As the series developed, she and her writing team began pondering the "what-if" of an all-sign language episode for the second season.

Then ABC Family approached her with the same idea, and the challenge was on to find a logical and engaging way to realize the ASL-only goal and a big enough story to make the most of it.

Last year, a "CSI: NY" episode took a stab at a nearly silent episode, using music by Green Day for most of its storytelling before reverting to dialogue in the final act.

The solution for "Switched at Birth" was to make sure every scene included a deaf character: "The truth is, when you're around people who are deaf, it's considered rude not to sign if you know how," Weiss said.

To avoid overloading viewers with subtitles the story was designed to be highly visual, including scenes of the student protest complete with picket signs and a defiant "Take Back Carlton" banner unfurled from the occupied school building.

Although some moments depict the pitfalls of being a deaf person in a hearing world, Weiss said, that's balanced by positive aspects.

"If you have been anything that's in the minority — gay, Jewish, a woman, anything — you have some piece of your identity that brings with it a lot of baggage and hardship, but also a lot of pride," Weiss said. "That's what we're trying to connect with."

The episode also highlights the beauty of ASL and its "coolness," such as being able to sign across a crowded theater and have an essentially private conversation, she said.

As with a silent movie — last year's Oscar-winning "The Artist" the latest case in point — "Switched at Birth" includes music intended to reflect the characters' internal lives. A viewer could add to the silence by muting it, but Weiss said that misses the point.

The episode "is not about silence, or 'absence of' sound. It's about language and culture and seeing the world from the point of view of a deaf person, and our perspective is that deaf people's inner lives are not silent," she said.

Matlin, whose counselor is a recurring character on "Switched at Birth," said the episode is an emotional and professional high point for her, one she would like to see exceeded.

"I never thought in my life I would see this happen. But I want to go further in terms of using deaf actors. ... I want (Steven) Spielberg to say, 'Hey, we want to use deaf actors.' Why not? And, hey, let's have the same respect for actors who are deaf as for those who are hearing.

"I don't know if we'll ever get there, but never say never," Matlin said.

___

Online:

http://www.abcfamily.go.com

___

Lynn Elber is a national television columnist for The Associated Press. She can be reached at lelber(at)ap.org and on Twitter (at)lynnelber.

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Incomes see largest drop in 20 years

U.S. consumer spending rose in January as Americans spent more on services, with savings providing a cushion after income recorded its biggest drop in 20 years.

Income tumbled 3.6 percent, the largest drop since January 1993. Part of the decline was payback for a 2.6 percent surge in December as businesses, anxious about higher taxes, rushed to pay dividends and bonuses before the new year.

A portion of the drop in January also reflected the tax hikes. The income at the disposal of households after inflation and taxes plunged a 4.0 percent in January after advancing 2.7 percent in December.

The Commerce Department said on Friday consumer spending increased 0.2 percent in January after a revised 0.1 percent rise the prior month. Spending had previously been estimated to have increased 0.2 percent in December.

January's increase was in line with economists' expectations. Spending accounts for about 70 percent of U.S. economic activity and when adjusted for inflation, it gained 0.1 percent after a similar increase in December.

Though spending rose in January, it was supported by a rise in services, probably related to utilities consumption. Spending on goods fell, suggesting some hit from the expiration at the end of 2012 of a 2 percent payroll tax cut. Tax rates for wealthy Americans also increased.

The impact is expected to be larger in February's spending data and possibly extend through the first half of the year as households adjust to smaller paychecks, which are also being strained by rising gasoline prices.

Economists expect consumer spending in the first three months of this year to slow down sharply from the fourth quarter's 2.1 percent annual pace.

With income dropping sharply and spending rising, the saving rate - the percentage of disposable income households are socking away - fell to 2.4 percent, the lowest level since November 2007. The rate had jumped to 6.4 percent in December.

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First lady brings campaign for physical education to Chicago

First lady Michelle Obama brought her high energy "Let's Move" campaign to Chicago today, where she announced a new phase of the initiative that will place a greater emphases on physical activity.

The "Active Schools" initiative, funded primarily by a $50 million grant from Nike Inc., will help pay for new physical education programs in schools that meet exercise standards.

Surrounded by athletic superstars including tennis champion Serena Williams, gymnast Gabby Douglas, San Francisco 49ers quarterback Colin Kaepernick and "The Biggest Loser" trainer Bob Harper, the first lady told 3,000 cheering Chicago Public Schools students gathered around the stage that they have the potential to be great.

"The only thing separating you out there and us on the stage is the choices you make in life," Obama said, after returning to the stage dressed in red and black exercise wear. Earlier in the program she wore a black business suit while thanking Nike and other corporations for supporting the program.

The athletes led the crowd of screaming and jumping students in an exercise routine at McCormick Place, 2301 S. Lake Shore Dr. The first lady and Mayor Rahm Emanuel, dressed in exercise clothes, joined in the high energy routine with loud techno music and colorful strobe lights.

The Nike donation, delivered over five years, will allow schools to partner with community organizations and other groups to provide exercise programs  to benefit children. Schools also will be able to implement physical education programs during the school day.

Education Secretary Arne Duncan, in an interview prior to the event, called the violence in Chicago "staggering" and suggested that such after school programs could have an impact on curbing it.

"Our families, our communities, our children deserve so much better," he said. "We have to allow our children to grow up in a safe environment."

Chicago is the third stop on the first lady's multi-city tour observing the 3rd anniversary of the "Let's Move" initiative.

As part of Chicago's efforts to curb obesity, officials announced a "Healthy CPS Action Plan," giving schools a comprehensive plan to improve health and wellness of students.

Earlier today, the Chicago Department of Public Health released new obesity numbers for Chicago Public Schools students. According to the report, 36.5 percent of children entering kindergarten are overweight or obese, as well as 48.6 percent of 6th graders and 44.7 percent of 9th graders.

dglanton@tribune.com

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Yahoo telecommute ban is much ado about nothing: Silicon Valley

SAN FRANCISCO (Reuters) - Yahoo Chief Executive Marissa Mayer's decision to ban telecommuting sparked outrage around the country, but left many in Silicon Valley wondering what the fuss was all about.

Working from home is common enough in the Valley, but that is in addition to - not instead of - the 40-plus hours spent working in the office. Despite the area's image as a freewheeling space that makes much of the technology that allows people to work remotely, Bay Area workers tend to head into the office, especially at start-ups.

"Every idea we have is a result of more than two people sitting in a room, riffing on or trying to think up a clever solution to a certain problem," said Sahil Lavingia, founder of payments startup Gumroad. "Things like that you can't do over any Internet protocol."

That does not mean Lavingia thinks his staff should never work from home. Just the opposite.

"Everyone should have a setup at home that makes them equally as productive, or close, as if they were in the office," he says. "Many people put in hours before and after work, and on the weekends."

The new policy at Yahoo, announced in a February 22 memo, calls for "all employees with work-from-home arrangements to work in Yahoo! offices." The change goes into effect in June.

Many of the storied trappings of startup life - the free food, the game rooms, the flip-flops - are aimed at keeping people in the office. That goes for the engineers, often young and male, just as it does for other employees in groups such as marketing and sales.

And the private, Wi-Fi-equipped buses that shuttle employees from San Francisco to Google and Facebook and other companies based in Silicon Valley are meant to make the commute more productive, lest anyone advocate eliminating them altogether.

The lack of rules is also a hallmark of startup culture, and few companies will declare a firm policy on issues like telecommuting. But the message is pretty clear.

Apple Inc cofounder Steve Jobs liked to talk about the long hours employees put in at the company's Cupertino, California, headquarters. "I've seen cars in the parking lot late at night, cots in some of the engineering offices," he said at a 2010 press conference.

Many companies hold regular meetings which all employees are strongly encouraged attend. At Twitter, they are called "tea time" meetings, but more typically Silicon Valley companies use the term "all-hands."

Cloud-content start-up Box holds an all-hands every Friday over lunch at its main office in Los Altos, California, and streams it to a satellite office in San Francisco. Box also has London offices, where a rebroadcast runs the following week.

And sometimes companies insist workers show up at the office, such as during the start-of-semester crunches at online textbook company Chegg, says CEO Dan Rosensweig.

"Everybody knows to either be in, or be available," Rosensweig says. "When you're in the rush, you can't really afford to not know where somebody is."

He believes Silicon Valley's premium on in-person collaborations comes from different teams having overlapping responsibility for products.

"Most of the companies out here, there's product, engineering, and business," he says. "There isn't necessarily one person who owns every piece of the P&L," or profit and loss statement, meaning that close communication is crucial.

David Rusenko, founder of Web-building service Weebly, says it simply becomes more efficient for everyone to sit together.

"We've tried to work with contract designers remotely, and the feedback cycle gets so long," he says. "If you're sitting with somebody two seats away, you say, 'Hey, I'm finished with this, can you take a look.'"

Teams can have as many as 10 back-and-forths a day when they are physically together, compared with maybe one working remotely, he says.

Some workers chafe at the premium that companies place on a physical presence, including Jeff Spirer, a mobile-marketing veteran. He recalls one job at which the CEO required everyone to be at the office, even though many employees had long commutes and would have been more productive staying home a couple of days a week.

"It was much easier for me to work at home, which I could only really do when he was traveling," Spirer says, referring to the CEO.

Old-guard Silicon Valley companies such as Hewlett-Packard Co and Cisco Systems Inc tend to be much more open to telecommuting.

That contrast may explain Yahoo's new policy. It is a big, mature company, but a struggling one, and people inside and outside agree it desperately needs a jolt of the all-hands-on-deck, start-up spirit.

"This isn't a broad industry view on working from home, this is about what is right for Yahoo!, right now," a Yahoo spokeswoman said.

(Reporting by Sarah McBride; Editing by Jonathan Weber, Jeffrey Benkoe and Leslie Gevirtz)

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Rodman tells Kim Jong Un he has 'friend for life'

SEOUL, South Korea (AP) — Ex-NBA star Dennis Rodman hung out Thursday with North Korea's Kim Jong Un on the third day of his improbable journey with VICE to Pyongyang, watching the Harlem Globetrotters with the leader and later dining on sushi and drinking with him at his palace.

"You have a friend for life," Rodman told Kim before a crowd of thousands at a gymnasium where they sat side by side, chatting as they watched players from North Korea and the U.S. play, Alex Detrick, a spokesman for the New York-based VICE media company, told The Associated Press.

Rodman arrived in Pyongyang on Monday with three members of the professional Harlem Globetrotters basketball team, VICE correspondent Ryan Duffy and a production crew to shoot an episode on North Korea for a new weekly HBO series.

The unlikely encounter makes Rodman the most high-profile American to meet Kim since the young North Korean leader took power in December 2011, and takes place against a backdrop of tension between Washington and Pyongyang. North Korea conducted an underground nuclear test just two weeks ago, making clear the provocative act was a warning to the United States to drop what it considers a "hostile" policy toward the North.

Kim, a diehard basketball fan, told the former Chicago Bulls star he hoped the visit would break the ice between the United States and North Korea, VICE founder Shane Smith said.

Dressed in a blue Mao suit, Kim laughed and slapped his hands on the table before him during the game as he sat nearly knee to knee with Rodman. Rodman, the man who once turned up in a wedding dress to promote his autobiography, wore a dark suit and dark sunglasses, but still had on his nose rings and other piercings. A can of Coca-Cola sat on the table before him in photos shared with AP by VICE.

"The crowd was really engaged, laughed at all of the Globetrotters antics, and actually got super loud towards the end as the score got close," said Duffy, who suited up for the game in a blue uniform emblazoned with "United States of America. "Most fun I've had in a while."

Kim and Rodman chatted in English, but Kim primarily spoke in Korean through a translator, Smith said after speaking to the VICE crew in Pyongyang.

"They bonded during the game," Smith said by telephone from New York after speaking to the crew. "They were both enjoying the crazy shots, and the Harlem Globetrotters were putting on quite a show."

The surprise visit by the flamboyant Hall of Famer known as "The Worm" makes him an unlikely ambassador at a time when North Koreans are girding for battle with the U.S. Just last week, Kim guided frontline troops in military exercises.

North Korea and the U.S. fought on opposite sides of the three-year Korean War, which ended in a truce in 1953. The foes never signed a peace treaty, and do not have diplomatic relations.

Thursday's game ended in a 110-110 draw, with two Americans playing on each team alongside North Koreans, Detrick said. The Xinhua News Agency first reported on the game, citing witnesses who attended.

After the game, Rodman addressed Kim in a speech before a crowd of tens of thousands of North Koreans, telling him, "You have a friend for life," Detrick said.

At a lavish dinner at Kim's palace, the leader plied the group with food and drinks as the group made round after round of toasts.

"Dinner was an epic feast. Felt like about 10 courses in total," Duffy said in an email to AP. "I'd say the winners were the smoked turkey and sushi, though we had the Pyongyang cold noodles earlier in the trip and that's been the runaway favorite so far."

Duffy said he invited Kim to visit the United States, a proposal met with hearty laughter from the North Korean leader.

"Um ... so Kim Jong Un just got the (hash)VICEonHBO crew wasted ... no really, that happened," VICE producer Jason Mojica wrote on Twitter.

Rodman's trip is the second attention-grabbing U.S. visit this year to North Korea. Google's executive chairman, Eric Schmidt, made a four-day trip in January to Pyongyang, but did not meet the North Korean leader.

Extending an invitation to a man known as much for his piercings, tattoos and bad behavior as for his basketball may seem inexplicable. But Kim is known to love the NBA, and has promoted sports since becoming leader.

"We knew that he's a big lover of basketball, especially the Bulls, and it was our intention going in that we would have a good-will mission of something that's fun," Smith said. "A lot of times, things just are serious and everybody's so concerned with geopolitics that we forget just to be human beings."

Rodman's agent, Darren Prince, said Rodman wasn't concerned about criticism about making a visit to an enemy nation.

"Dennis called me last night and said it's been a great experience and he made this trip out of the love of the USA ," he said. "It's all about peace and love."

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Associated Press NBA writer Brian Mahoney contributed to this report from New York. Follow AP's Korea bureau chief Jean Lee at twitter.com/newsjean.

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Donald Trump returns to the 'Apprentice' boardroom

NEW YORK (AP) — There is something Donald Trump says he doesn't know.

Trump has welcomed a reporter to his 26th-floor corner office in Trump Tower to talk about "All-Star Celebrity Apprentice." And here in person, this one-of-a-kind TV star, billionaire businessman, ubiquitous brand mogul and media maestro strikes a softer pose than he has typically practiced in his decades on public display.

Relaxed behind a broad desk whose mirror sheen is mostly hidden by stacks of paper that suggest work is actually done there, Trump is pleasant, even chummy, with a my-time-is-your-time easiness greeting his guest.

He even contradicts his status as a legendary know-it-all with this surprising admission: There's a corner of the universe he doesn't understand.

The ratings woes of NBC, which airs his show, are on Trump's mind at the moment, and as he hastens to voice confidence in the network's powers-that-be ("They will absolutely get it right"), he marvels at the mysteries of the entertainment world.

"If I buy a great piece of real estate and do the right building, I'm really gonna have a success," he says. "It may be MORE successful or LESS successful, but you can sort of predict how it's gonna do. But show business is like trial and error! It's amazing!"

He loves to recall the iffy prospects for "The Apprentice" when it debuted in January 2004. With show biz, he declares, "You NEVER know what's gonna happen."

Except, of course, when you do.

"I do have an instinct," he confides. "Oftentimes, I'll see shows go on and I'll say, 'That show will never make it,' and I'm always right. And I understand talent. Does anybody ask me? No. But if they did, I would be doing them a big service. I know what people want."

So maybe he does know it all. In any case, lots of people wanted "The Apprentice." In its first season, it averaged nearly 21 million viewers each week.

And it gave Trump a signature TV platform that clinched his image as corporate royalty. He presided in a mood-lit stagecraft boardroom where celebrity subjects addressed him as "Mr. Trump" and shrank at that dismissive flick of his wrist and dreaded catchphrase, "You're fired."

The two-hour premiere of "All-Star Celebrity Apprentice" (Sunday at 9 p.m. EST) starts by rallying its 14 veteran contenders in the even more evocative setting of the 2,000-year-old Egyptian Temple of Dendur at the Metropolitan Museum of Art.

There, grandly, Trump receives such returning players as Gary Busey, Stephen Baldwin, LaToya Jackson and reality mean queen Omarosa.

Soon, teammates are chosen by team leaders Bret Michaels and Trace Adkins. Their first assignment: concoct a winning recipe for meatballs, then sell more of them than the rival team.

This is the 13th edition of the "Apprentice" franchise, which has now slipped to less than one-third its original viewership, according to Nielsen Co. figures. But even an audience matching last season's 6.26 million viewers would be pleasant news for NBC, which has recently fallen to fifth place in prime time, behind even Spanish-language Univision.

"I could probably do another show when I don't enjoy 'The Apprentice' anymore," says the 66-year-old Trump, mulling his TV future. "I have been asked by virtually every network on television to do a show for them. But there's something to sticking with what you have: This is a good formula. It works."

Years before "The Apprentice," Trump had hit on a winning formula for himself: Supercharge his business success with relentless self-promotion, putting a human face — his! — on the capitalist system, and embedding his persona in a feedback loop of performance and fame.

Since then, he has ruled as America's larger-than-life tycoon and its patron saint of material success. Which raises the question: Does he play a souped-up version of himself for his audience as Donald Trump, a character bigger and broader than its real-life inspiration?

He laughs, flashing something like a you-got-me smile.

"Perhaps," he replies. "Not consciously. But perhaps I do. Perhaps I do."

It began as early as 1987, when his first book, "Trump: The Art of the Deal," became a huge best-seller.

And even without a regular showcase, he was no stranger to TV. For instance, in the span of just 10 days in May 1997, Trump not only was seen on his "Miss Universe Pageant" telecast on CBS, but also made sitcom cameo appearances as himself on NBC's "Suddenly Susan" and ABC's "Drew Carey Show."

Meanwhile, as a frequent talk-show guest then (as now), he publicized his projects and pushed his brand.

"I'll be on that show for 20 or 30 or 60 minutes, and it costs me nothing," he notes. "When you have an opportunity for promotion, take it! It's free."

No one has ever accused Trump of hiding his light under a bushel. But his promotional drive (or naked craving for attention) has taken him to extremes that conventional wisdom warns against: saying and doing things that might hurt your bottom line.

Item: Trump's noisy, even race-baiting challenge to President Barack Obama to prove his American citizenship. This crusade has earned Trump the title from one editorialist as "birther blowhard."

For an industrialist and entertainer, where's the profit in voicing political views that could tick off a segment of your market or your audience?

"It's a great question, and a hard question to answer, because you happen to be right," Trump begins. "The fact is, some people love me, and some people the-opposite-of-love me, because of what I do and because of what I say. But I'm a very truthful person. By speaking out, it's probably not a good thing for me personally, but I feel I have an obligation to do it."

But isn't he being divisive with some of his pronouncements?

"I think 'divisive' would be a fair word in some cases, not in all cases," he replies. "But I think 'truthful' is another word."

The publicity he got from his political activism reached a fever pitch during his months-long, media-blitzed flirtation with running for president that seemed conveniently to dovetail with the Spring 2011 season of his TV show.

That May, he announced he would not run. For some, it was the final scene of nothing more than political theatrics.

"They weren't," Trump says quietly. "I was very seriously considering running. It was a race that the Republicans should have won. I made a mistake in not running, because I think I would have won."

He says he has no designs on this year's race for mayor of New York. But his politicizing continues apace. In his Twitter feed, with 2 million followers, he continues to bash China and rant about Washington. He phones in to Fox News Channel's "Fox & Friends" each Monday morning to vent his spleen.

"I believe in speaking my mind," he says, "and I don't mind controversy, as you probably noticed. I think sometimes controversy is a good thing, not a bad thing."

Last summer saw the opening in Aberdeen, Scotland, of Trump International Golf Links after a bitter, yearslong fight waged by environmentalists and local residents against government leaders and, of course, Trump.

A man for whom it seems no publicity is bad publicity, Trump insists the controversy helped the project.

"If there wasn't controversy surrounding it, I don't think anybody would even know it exists," he says, laying out the alternative: "I could take an ad: 'Golf course opening.'"

Trump even seems to profit from the harsh attention focused on his hair.

"I get killed on my hair!" he says, with no trace of remorse. But he wants everyone to know, "It's not a wig!" Nor is it an elaborately engineered coif to hide a hairline in retreat, as many Trump-watchers imagine.

To prove it, Trump does a remarkable thing: He lifts the flaxen locks that flop above his forehead to reveal, plain as day, a normal hairline.

"I wash my hair, I comb it, I set it and I spray it," he says. "That's it. I could comb it back and I'd look OK. But I've combed it this way for my whole life. It's become almost a trademark. And I think NBC would be very unhappy if I combed it back, 'cause — you know what? — maybe I wouldn't get as high a rating."

___

Online:

www.nbc.com

___

Frazier Moore is a national television columnist for The Associated Press. He can be reached at fmoore(at)ap.org and at http://www.twitter.com/tvfrazier

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Economic expansion weakest since 2011

The U.S. economy barely grew in the fourth quarter although a slightly better performance in exports and fewer imports led the government to scratch an earlier estimate that showed an economic contraction.

Gross domestic product expanded at a 0.1 percent annual rate, the Commerce Department said on Thursday, missing the 0.5 percent gain forecast by analysts in a Reuters poll.

The growth rate was the slowest since the first quarter of 2011 and far from what is needed to fuel a faster drop in the unemployment rate.

However, much of the weakness came from a slowdown in inventory accumulation and a sharp drop in military spending. These factors are expected to reverse in the first quarter.

Consumer spending was more robust by comparison, although it only expanded at a 2.1 percent annual rate.

Because household spending powers about 70 percent of national output, this still-lackluster pace of growth suggests underlying momentum in the economy was quite modest as it entered the first quarter, when significant fiscal tightening began.

Initially, the government had estimated the economy shrank at a 0.1 percent annual rate in the last three months of 2012. That had shocked economists.

Thursday's report showed the reasons for the decline were mostly as initially estimated. Inventories subtracted 1.55 percentage points from the GDP growth rate during the period, a little more of a drag than initially estimated. Defense spending plunged 22 percent, shaving 1.28 points off growth as in the previous estimate.

There were some relatively bright spots, however. Imports fell 4.5 percent during the period, which added to the overall growth rate because it was a larger drop than in the third quarter. Buying goods from foreigners bleeds money from the economy, subtracting from economic growth.

Also helping reverse the initial view of an economic contraction, exports did not fall as much during the period as the government had thought when it released its advance GDP estimate in January. Exports have been hampered by a recession in Europe, a cooling Chinese economy and storm-related port disruptions.

Excluding the volatile inventories component, GDP rose at a revised 1.7 percent rate, in line with expectations. These final sales of goods and services had been previously estimated to have increased at a 1.1 percent pace.

Business spending was revised to show more growth during the period than initially thought, adding about a percentage point to the growth rate.

Growth in home building was revised slightly higher to show a 17.5 percent annual rate. Residential construction is one of the brighter spots in the economy and is benefiting from the Federal Reserve's ultra easy monetary policy stance, which has driven mortgage rates to record lows. (Reporting by Jason Lange; Editing by Andrea Ricci)
 

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