Washington  - US President Barack Obama defended the spending outlined in his budget Tuesday, saying investments in health care, energy and education are essential to long-term economic growth and eventually bringing deficits under control.

Obama defended the 3.6-trillion-dollar budget proposal that have been the subject of intense criticism from Republican and some Democratic members of Congress who warn it will pass along huge deficits to future generations.

New York  - Despite record losses, the chief of Ford Motors, Alan Mulally, earned 13.6 million dollars in 2008 but has agreed to a huge salary cut for this and next year, Ford motor company said Tuesday.

The 2008 income included 2 million dollars in regular salary plus long-term stock options, the country's second largest car producer said. That amount however was 37 per cent less than the previous year.

New York  - US stocks fell sharply on Tuesday, one day after posting their biggest gains of the year, as the US administration sought new powers to control failing financial firms.

Banking shares, which gained some 18 per cent on Monday, led the market decline amid speculation that Congress will no longer back more money for struggling Wall Street institutions.

San Francisco  - Few lessons have been learned from Exxon Valdez, as oil spills are a regular occurrence 20 years after the worst ecological disaster in US history, environmentalists warned Tuesday.

On March 24, 1989, a massive tanker captained by a man who had allegedly been drinking, sailed outside regular Alaskan shipping lanes and hit a reef.

New York  - Despite record losses, the chief of Ford Motors, Alan Mulally, earned 13.6 million dollars in 2008.

The money included 2 million dollars in regular salary plus long- term stock options, the country's second largest car producer said Tuesday in a statement.

Mulally did not receive a bonus for 2008, in contrast to 2007. For the current and next years, he has agreed to a 30-per-cent salary reduction.

Ford reported record losses of 15 billion dollars for 2008 - but still has enough cash reserves to survive.