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AP Top News at 1:00 p.m. EST

By Associated Press

1:02 PM EST, December 10, 2008

CHICAGO (AP) — President-elect Barack Obama called for Illinois Gov. Rod Blagojevich to resign on Wednesday, hours after the embattled governor reported for work amid charges he plotted to sell Obama's vacant Senate seat. Obama spokesman Robert Gibbs said the president-elect agrees with other prominent politicians in Illinois and elsewhere that "under the current circumstances, it is difficult for the governor to effectively do his job and serve the people of Illinois."

WASHINGTON (AP) — Majority Democrats and the Bush White House have finalized a deal to spend $14 billion on emergency loans for struggling U.S. automakers, congressional officials said Wednesday. Strong opposition lingered among some Republicans. The White House did not go as far as to say the deal was final, although it did report "very good progress." The measure could see a House vote later Wednesday and be enacted by week's end.

WASHINGTON (AP) — President-elect Barack Obama says he will try to "reboot America's image" among the world's Muslims and will follow tradition by using his entire name — Barack Hussein

Obama — in his swearing-in ceremony. The U.S. image globally has taken a deep hit during President George W. Bush's two terms in office, primarily because of opposition to the U.S.-led invasion of Iraq, harsh interrogation of prisoners, the indefinite detention of terrorist suspects at Guantanamo Bay, Cuba, and mistreatment of inmates at the Abu Ghraib prison in Iraq.

WASHINGTON (AP) — Wholesalers cut back on their inventories in October by the largest amount since the period following the 2001 terrorist attacks while they watched their sales plunge by a record amount. Analysts predict more grim news in the months ahead as the current recession deepens.

NEW YORK (AP) — Wall Street regained some of its optimism Wednesday and advanced on expectations that Congress will extend a lifeline to U.S. automakers and avoid a potential pitfall for the economy. In the Treasury market, the four-week bill auctioned with a zero percent yield on Tuesday saw that rate increase.

WASHINGTON (AP) — A congressional panel reviewing the government's $700 billion rescue package for the financial sector is questioning the Bush administration's spending of bailout funds and challenging its reluctance to use the money to reduce foreclosures. In a report being made public Wednesday, the Congressional Oversight Panel for Economic Stabilization spelled out 10 pointed queries to the Treasury Department and questioned whether its shifting remedies constitute a strategic response to the financial crisis. The review represents the latest critical assessments of the Troubled Asset Relief Program, the massive federal intervention into the nation's financial system.

ATLANTA (AP) — More than one in nine children use herbal supplements or some other form of alternative medicine, the government said Wednesday based on a national survey. It's the first time children's use of such remedies, including acupuncture, meditation, and chiropractic care, has been measured. Adult use of alternative treatments remains about the same as it was in 2002 — more than one in three.

LOS ANGELES (AP) — Paula Abdul says the Fox network and "American Idol" producers knew Paula Goodspeed had stalked her, and allowed the woman to audition for the show anyway. "I said this girl is a stalker of mine and please do not let her in," Abdul said Monday during an interview with Barbara Walters on her Sirius XM radio show. Goodspeed was found dead of an apparent suicide in a car near Abdul's home last month.

ALBANY, N.Y. (AP) — The star of "The Nanny" wants to go from playing nasally New Yawkers to succeeding Hillary Rodham Clinton in the U.S. Senate. Publicist Jordan Brown delivered the straight line that Fran Drescher is serious about becoming the next junior senator from New York. Brown cited Drescher's experience as an actress, advocate for women's health and public diplomacy envoy for the U.S. State Department.

LAS VEGAS (AP) — CC Sabathia and the New York Yankees are closing in on a seven-year contract worth about $160 million, a deal that would be a record for a pitcher. The Yankees and

the pitcher's agents had not yet reached a letter of agreement, a baseball official familiar with the talks said Wednesday, speaking on condition of anonymity to The Associated Press because a deal had not yet been finalized. The official said the Yankees were confident an agreement would soon be reached.