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Investor's Business Daily

| February 03, 2004 | COPYRIGHT 2004 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Bush Unveils $2.4 Tril '05 Budget

1Overall spending would rise 3.5% in fiscal '05, with defense spending up 7% and security spending 10%. Nondefense discretionary funding would rise just 0.5%, with cuts for seven Cabinet departments. Bush sees a record $521 bil deficit this year, but says it'll fall in half by '09. Congress was cool to the proposal. Bush has yet to issue a veto as president. More on this page

Bush Will Order Iraq Intel Probe

2Amid heavy criticism from Republicans and Democrats, Bush reversed field and confirmed he'll order an independent probe of Iraqi intelligence failures. He conferred with ex-chief U.S. weapons inspector David Kay, who called for a probe last week, saying nearly all prewar intel was wrong. By setting up the panel, Bush will have more control. U.K. Prime Minister Tony Blair is expected to launch a similar intel probe.

Factory Index Hits 20-Year High

3The ISM manufacturing index rose 0.2 point in Jan. to 63.4, the best since Dec. '83 and above the boom-bust 50 mark. Production also hit a 20-year peak; new orders eased slightly from their '83 high to a still-strong level. The jobs index slid 0.6 to 52.9. That's the third straight month, suggesting some factory hiring. Price hikes spiked to a near 4-year high. More on this page, A2

Rivals Decry Kerry's Lobbyist Ties

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