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September 12, 2012 | | DEADLY The U.S. ambassador to Libya, Chris Stevens, and three State Department officials were killed last night in a targeted rocket attack, after riots over a U.S. film depicting the prophet Muhammed as a fraud. Jamie Dettmer reports. RESCUE Well, this is a relief for Europe. Germany’s constitutional court on Wednesday struck down an attempt to block the permanent euro-zone rescue fund, but also placed caps on Germany’s contribution. Critics to Chancellor Angela Merkel–backed European Stability Mechanism have argued that it commits Germany to potentially unlimited bailouts of debt-ridden countries such as Italy and Spain. European shares rose on the ruling, and the euro gained in value, rising to a four-month high against the dollar. NOT OVER YET The pundits—even conservative ones—are ready to bury Romney and Ryan. But it’s not over yet. The Daily Beast’s Mark McKinnon on the dangers of believing in the convention bounce—and what Bush 2000 could teach Mitt this time around. CHICAGO TEACHERS There were few signs of progress in Chicago as the teachers strike dragged into the third day on Wednesday and around 350,000 students were once again out of school. Talks between the union and the city’s school board broke up after 10 hours on Tuesday; they were set to resume at 11 a.m. on Wednesday. At the heart of the dispute is the hot-button national issue of tying teacher salary to test scores. The strike could have serious consequences for President Obama, since it takes place in his home city, has his former chief of staff as a key player (Mayor Rahm Emanuel)—and could cause him to lose the support of an important ally, the teachers’ unions. COMMUNICATION It was reported Tuesday afternoon that the President Obama refused to meet with Israeli Prime Minister Benjamin Netanyahu over a disagreement over how to deal with Iran’s nuclear program, but now the White House is reporting that the president spoke with the prime minister on the phone for an hour on Tuesday night. “The two leaders discussed the threat posed by Iran’s nuclear program, and our close cooperation on Iran and other security issues,” the White House said. The statement clarified there was never a request from Netanyahu to meet with Obama in Washington, and no request was ever denied. Earlier in the day, Netanyahu had harsh words for Obama, who he said “had no moral right” to deny Israel the right to set a clear “red line” on Iran’s nuclear program. | | 
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