The Irish parliament has approved legislation to establish a "bad" bank to absorb problem loans in the country's troubled banking sector.
The National Asset Management Agency (NAMA) will have 54bn euros ($80bn; £49bn) to buy bad loans from banks.
The government has already pumped billions of euros into banks and nationalised Anglo Irish Bank to try to stabilise the sector.
The country's economy has been one of the most hard-hit by the downturn.
The 54bn euros will be used to buy toxic loans made by banks with a book value of 77bn euros, mainly in the property market.
The rescue plan is the biggest in the country's history.
"The Irish economy is suffering from a very sharp liquidity crisis, which NAMA is designed to counteract," said Kevin McConnell at Bloxham Securities.
But the plans were fiercely debated in the Irish Dail, with the opposition party Fine Gael particularly critical.
"NAMA is fundamentally flawed, will do nothing to get credit flowing to small business and it will do nothing to support the retention or creation of jobs," it argued.
The UK government has proposed a similar "bad" bank to handle toxic loans at Northern Rock bank.
Thursday, November 12, 2009
Renault to challenge Tata's Nano
French carmaker Renault, with its partner Nissan, has said that its planned cheap car for India will cost less to produce than Tata's Nano.
The firm would not confirm the price, but says it will be for the entry level market and "priced competitively".
The design and manufacture will be done by the Indian firm Bajaj, while Renault and Nissan look after the marketing.
The Nano is currently the world's cheapest car, with the most basic model selling for about $2,000.
Competing for India
Renault chief executive Carlos Ghosn said "the cost of this car would be lower than any car made in India today", but added there would be a difference between cost and price.
The car, which is due to be launched in 2012, will be aimed mainly at the Indian market, but exports are a possibility.
Renault also says it will be very fuel-efficient.
Launch of the Tata Nano car
Tata's Nano is currently the cheapest car in the world
India is one of the biggest growth markets for the car industry. Mr Ghosn predicts that the market there could triple to six million vehicles in 10 years.
General Motors, Toyota and Ford are all designing cheap models for India - although Ford has said it will not compete directly with the Nano.
Renault already has a joint venture with India's Mahindra and Mahindra to make the Logan Sedan. Its partner Nissan works with Ashok Leyland to make light trucks.
The firm would not confirm the price, but says it will be for the entry level market and "priced competitively".
The design and manufacture will be done by the Indian firm Bajaj, while Renault and Nissan look after the marketing.
The Nano is currently the world's cheapest car, with the most basic model selling for about $2,000.
Competing for India
Renault chief executive Carlos Ghosn said "the cost of this car would be lower than any car made in India today", but added there would be a difference between cost and price.
The car, which is due to be launched in 2012, will be aimed mainly at the Indian market, but exports are a possibility.
Renault also says it will be very fuel-efficient.
Launch of the Tata Nano car
Tata's Nano is currently the cheapest car in the world
India is one of the biggest growth markets for the car industry. Mr Ghosn predicts that the market there could triple to six million vehicles in 10 years.
General Motors, Toyota and Ford are all designing cheap models for India - although Ford has said it will not compete directly with the Nano.
Renault already has a joint venture with India's Mahindra and Mahindra to make the Logan Sedan. Its partner Nissan works with Ashok Leyland to make light trucks.
Iran's Guards in $2.5bn rail deal
Iran's Revolutionary Guards have won a $2.5bn tender to build a railway route linking the south-eastern port of Chabahar to Iran's rail network.
Transport minister Hamid Behbahani said it was part of a transit route for goods from Chabahar to the north-eastern border town of Sarakhs.
The Guards' engineering wing, Khatam-ol-Anbia, has been awarded government contracts worth billions of dollars.
These include the operation of Tehran's Imam Khomeini international airport.
Last month, more than half of Iran's national telecommunication company was ceded to a consortium partly owned by a Revolutionary Guards affiliate fund, as part of the country's privatisation of state assets.
The $8bn deal was followed by allegations that a rival consortium had been forced out of the bidding "on security grounds".
The Guards are thought to control about a third of Iran's economy through a series of subsidiaries and trusts.
The force is estimated to have 125,000 active troops. It boasts its own ground forces, navy and air force and oversees Iran's strategic weapons.
Transport minister Hamid Behbahani said it was part of a transit route for goods from Chabahar to the north-eastern border town of Sarakhs.
The Guards' engineering wing, Khatam-ol-Anbia, has been awarded government contracts worth billions of dollars.
These include the operation of Tehran's Imam Khomeini international airport.
Last month, more than half of Iran's national telecommunication company was ceded to a consortium partly owned by a Revolutionary Guards affiliate fund, as part of the country's privatisation of state assets.
The $8bn deal was followed by allegations that a rival consortium had been forced out of the bidding "on security grounds".
The Guards are thought to control about a third of Iran's economy through a series of subsidiaries and trusts.
The force is estimated to have 125,000 active troops. It boasts its own ground forces, navy and air force and oversees Iran's strategic weapons.
China production and retail rise
The latest economic data from China suggests that industrial production grew year on year at a level faster than expected.
Retail sales also rose by more than analysts had predicted, while consumer prices continued to fall.
China's National Bureau of Statistics says the country's latest economic data shows it is well on track to meet its target of 8% growth this year.
The government's huge economic stimulus package is likely to have helped a lot.
The data indicates that activity in factories and workshops increased by 16.1% in October compared to a year ago.
Optimism
That is the highest level of growth since March last year.
China's statisticians are starting to sound more optimistic than they have done in a while.
Importantly, they see evidence in this latest data that Chinese consumers are starting to make more of a contribution to economic growth here.
Retail sales were higher in October than September.
China needs consumers to spend more to spur domestic demand for the goods its factories produce, as it is unlikely to be able to rely on US consumers in the years ahead in the same way that it could before the financial crisis.
The growth in activity in the country's factories and workshops beat analysts' forecasts too.
There was better news in October's trade figures though - the rate of decline in exports last month was the smallest in 10 months, supporting anecdotal evidence from producers that orders from customers abroad have been picking up for several weeks now.
China has been trying to boost domestic demand for the goods its factories make, as exports have been declining for 12 months now.
The supply of new loans was markedly lower than many analysts had expected, suggesting that banks had listened to concerns that the easy access to credit here was creating the risk of asset bubbles and put in place more stringent conditions for those trying to borrow money.
Retail sales also rose by more than analysts had predicted, while consumer prices continued to fall.
China's National Bureau of Statistics says the country's latest economic data shows it is well on track to meet its target of 8% growth this year.
The government's huge economic stimulus package is likely to have helped a lot.
The data indicates that activity in factories and workshops increased by 16.1% in October compared to a year ago.
Optimism
That is the highest level of growth since March last year.
China's statisticians are starting to sound more optimistic than they have done in a while.
Importantly, they see evidence in this latest data that Chinese consumers are starting to make more of a contribution to economic growth here.
Retail sales were higher in October than September.
China needs consumers to spend more to spur domestic demand for the goods its factories produce, as it is unlikely to be able to rely on US consumers in the years ahead in the same way that it could before the financial crisis.
The growth in activity in the country's factories and workshops beat analysts' forecasts too.
There was better news in October's trade figures though - the rate of decline in exports last month was the smallest in 10 months, supporting anecdotal evidence from producers that orders from customers abroad have been picking up for several weeks now.
China has been trying to boost domestic demand for the goods its factories make, as exports have been declining for 12 months now.
The supply of new loans was markedly lower than many analysts had expected, suggesting that banks had listened to concerns that the easy access to credit here was creating the risk of asset bubbles and put in place more stringent conditions for those trying to borrow money.
Second SA power executive quits
The chief executive of South Africa's crisis-hit power firm Eskom has left his job, only days after denying he was to quit and sparking a race row.
Jacob Maroga's resignation was reportedly announced by company chairman Bobby Godsell a week ago.
Mr Maroga, who is black, denied it and Mr Godsell, who is white, was himself forced to quit amid racism accusations.
In 2008 South Africa was hit by a power crisis with black-outs threatening the nation's economy.
Race row
Chairman Bobby Godsell announced Mr Maroga's resignation after a heated meeting, local media reported earlier this month.
But days later Mr Maroga said he had not resigned - it had been a misunderstanding, he said.
The Youth Wing of the African National Congress accused Mr Godsell, who is white, of racism.
"The time of treating black people as subjects, who can be fired as and when the white master wishes is over," they said.
Mr Godsell resigned on Monday.
Last year Eskom, which generates 95% of South Africa's electricity, lost 9.7 billion rand ($1.2bn; £700m).
In each of the next three years electricity prices will go up by 45%, it has been announced.
Jacob Maroga's resignation was reportedly announced by company chairman Bobby Godsell a week ago.
Mr Maroga, who is black, denied it and Mr Godsell, who is white, was himself forced to quit amid racism accusations.
In 2008 South Africa was hit by a power crisis with black-outs threatening the nation's economy.
Race row
Chairman Bobby Godsell announced Mr Maroga's resignation after a heated meeting, local media reported earlier this month.
But days later Mr Maroga said he had not resigned - it had been a misunderstanding, he said.
The Youth Wing of the African National Congress accused Mr Godsell, who is white, of racism.
"The time of treating black people as subjects, who can be fired as and when the white master wishes is over," they said.
Mr Godsell resigned on Monday.
Last year Eskom, which generates 95% of South Africa's electricity, lost 9.7 billion rand ($1.2bn; £700m).
In each of the next three years electricity prices will go up by 45%, it has been announced.
Peugeot raises earnings forecast
Peugeot Citroen, Europe's second-biggest carmaker, has raised its earnings forecast for 2009 on the back a revival in the car market.
The news comes a month after the firm reported lower-than-forecast third-quarter sales, down 7.7% on 2008.
Peugeot said: "The group's production and sales performance is significantly stronger than forecast."
The group predicted fourth-quarter output would be 30% higher than the same period last year.
'Most conservative'
The firm put its more upbeat outlook down to "recent improvement in the automobile market and the ongoing success of the new Peugeot and Citroen models".
Analyst Adam Jonas at Morgan Stanley said that Peugeot had previously put out the "most conservative second-half guidance of any European [carmaker] this year".
Government schemes to encourage car purchases have boosted car sales in Europe and the US, but there are fears that demand will fall again when this support is withdrawn.
Last month, Peugeot Citroen said sales in Europe were healthy thanks to these various government-backed scrappage schemes, but that this had been offset by sales falls in Russia and Latin America.
The news comes a month after the firm reported lower-than-forecast third-quarter sales, down 7.7% on 2008.
Peugeot said: "The group's production and sales performance is significantly stronger than forecast."
The group predicted fourth-quarter output would be 30% higher than the same period last year.
'Most conservative'
The firm put its more upbeat outlook down to "recent improvement in the automobile market and the ongoing success of the new Peugeot and Citroen models".
Analyst Adam Jonas at Morgan Stanley said that Peugeot had previously put out the "most conservative second-half guidance of any European [carmaker] this year".
Government schemes to encourage car purchases have boosted car sales in Europe and the US, but there are fears that demand will fall again when this support is withdrawn.
Last month, Peugeot Citroen said sales in Europe were healthy thanks to these various government-backed scrappage schemes, but that this had been offset by sales falls in Russia and Latin America.
Reduction in UK's gender pay gap
The difference in average wages between men and women in full-time employment in the UK has narrowed slightly this year, official figures have shown.
Males in full-time employment earned an average of £12.97 an hour before tax compared with £11.39 for women, said the Office for National Statistics.
This means women earn on average 12.2% less than men, although this is less than the gap of 12.6% recorded in 2008.
The ONS data came from a survey of 177,000 people conducted in April.
The figures do not include overtime, as men tend to do more of this, the ONS said.
It found that the gender pay gap continued to differ widely between different kinds of work.
The gap was narrowest for those in professional jobs, such as in banking, where men earn just 3.8% more.
The difference in pay was the largest in the skilled trades category - a wide sector that includes everything from plumbers to florists - where the gap reached 26.2%.
Males in full-time employment earned an average of £12.97 an hour before tax compared with £11.39 for women, said the Office for National Statistics.
This means women earn on average 12.2% less than men, although this is less than the gap of 12.6% recorded in 2008.
The ONS data came from a survey of 177,000 people conducted in April.
The figures do not include overtime, as men tend to do more of this, the ONS said.
It found that the gender pay gap continued to differ widely between different kinds of work.
The gap was narrowest for those in professional jobs, such as in banking, where men earn just 3.8% more.
The difference in pay was the largest in the skilled trades category - a wide sector that includes everything from plumbers to florists - where the gap reached 26.2%.
Wal-Mart says climate 'difficult'
The Chief Executive of Wal-Mart, Mike Duke, says the sales environment "continues to be difficult".
The world's largest supermarket, which owns Asda in the UK, saw sales slip 0.4% in the August-to-October period at stores open for more than a year.
This comes despite the retailer lowering prices as customers battle rising unemployment. The US jobless rate is now at 10.2%.
However, profit rose more than expected, up 3.2% to $3.24bn (£1.9bn)
Mr Duke also said that customer traffic was up throughout the company and that the firm "gained market share, especially in the United States, the United Kingdom and Mexico".
Wal-Mart has said it will slash prices in the run-up to Christmas, taking on rivals such as Amazon.com and Target.
The company says its customers have not yet seen the benefits from the US economy coming out of recession.
Its UK business, Asda, performed particularly well. Sales there grew 5.6% in the quarter.
The chief financial officer, Judith McKenna, said all parts of the business - food, home and leisure, and clothing - were outperforming their respective markets.
Asda has pledged to save customers £150m ($248m) this Christmas.
The world's largest supermarket, which owns Asda in the UK, saw sales slip 0.4% in the August-to-October period at stores open for more than a year.
This comes despite the retailer lowering prices as customers battle rising unemployment. The US jobless rate is now at 10.2%.
However, profit rose more than expected, up 3.2% to $3.24bn (£1.9bn)
Mr Duke also said that customer traffic was up throughout the company and that the firm "gained market share, especially in the United States, the United Kingdom and Mexico".
Wal-Mart has said it will slash prices in the run-up to Christmas, taking on rivals such as Amazon.com and Target.
The company says its customers have not yet seen the benefits from the US economy coming out of recession.
Its UK business, Asda, performed particularly well. Sales there grew 5.6% in the quarter.
The chief financial officer, Judith McKenna, said all parts of the business - food, home and leisure, and clothing - were outperforming their respective markets.
Asda has pledged to save customers £150m ($248m) this Christmas.
BT pension deficit rises sharply
BT has revealed that the deficit of its final-salary pension scheme has more than doubled in the past six months from £4bn to £9.3bn.
The deficit has increased sharply because its assumed cost of providing pensions in the future has risen dramatically under UK accounting rules.
BT's pension update came as it saw its half-year profits almost halve, due in part to the cost of redundancies.
It made a pre-tax profit of £547m in the six months to 30 September.
This is a 45% decline on the £991m profit it reported for the same period a year earlier.
In addition to redundancy costs, the change in how it accounts for its pension deficit also depressed profits.
The firm's half-year revenues were down 1% from a year ago to £10.357bn.
When the cost of redundancies, the pensions change and other one-off factors are pulled out, BT's pre-tax, post-exceptional items profit for the half-year rose 12% to £888m.
BT is now continuing efforts to reduce its pension deficit, paying £525m into the scheme in its current financial year, and the same amount in 2010-11 and 2011-12.
At the end of 2008, current BT staff also agreed to the company's plan to end the final-salary pension scheme to existing workers for pensions earned after 1 April 2009.
However, this has not stopped the cost of the scheme's past obligations ballooning.
'Making progress'
Looking ahead at its future financial performance, BT said its trading conditions were now improving.
It now expects its revenues for the year to 31 March 2010 to decline by between 3% and 4%, better than its previous guidance of a fall of between 4% and 5%.
It also predicts that it will achieve cost cuts of "at least" £1.5bn, better than its previous guidance of more than £1bn.
BT's chief executive Ian Livingston said the firm was making "progress, but there remains a lot more to do".
Analysts said they welcomed the firm's continuing cost cutting, under which the firm is shedding 15,000 jobs, as announced in May.
Most of the jobs are going in its Global Services IT division.
"We have been very strong believers in the ability of current management to strip out costs from the business and they're delivering well ahead of market expectations," said Daiwa analyst Michael Kovacocy.
Shares in BT rose 6.3 pence, or 4.4%, to 148.3p in Thursday morning trading.
The deficit has increased sharply because its assumed cost of providing pensions in the future has risen dramatically under UK accounting rules.
BT's pension update came as it saw its half-year profits almost halve, due in part to the cost of redundancies.
It made a pre-tax profit of £547m in the six months to 30 September.
This is a 45% decline on the £991m profit it reported for the same period a year earlier.
In addition to redundancy costs, the change in how it accounts for its pension deficit also depressed profits.
The firm's half-year revenues were down 1% from a year ago to £10.357bn.
When the cost of redundancies, the pensions change and other one-off factors are pulled out, BT's pre-tax, post-exceptional items profit for the half-year rose 12% to £888m.
BT is now continuing efforts to reduce its pension deficit, paying £525m into the scheme in its current financial year, and the same amount in 2010-11 and 2011-12.
At the end of 2008, current BT staff also agreed to the company's plan to end the final-salary pension scheme to existing workers for pensions earned after 1 April 2009.
However, this has not stopped the cost of the scheme's past obligations ballooning.
'Making progress'
Looking ahead at its future financial performance, BT said its trading conditions were now improving.
It now expects its revenues for the year to 31 March 2010 to decline by between 3% and 4%, better than its previous guidance of a fall of between 4% and 5%.
It also predicts that it will achieve cost cuts of "at least" £1.5bn, better than its previous guidance of more than £1bn.
BT's chief executive Ian Livingston said the firm was making "progress, but there remains a lot more to do".
Analysts said they welcomed the firm's continuing cost cutting, under which the firm is shedding 15,000 jobs, as announced in May.
Most of the jobs are going in its Global Services IT division.
"We have been very strong believers in the ability of current management to strip out costs from the business and they're delivering well ahead of market expectations," said Daiwa analyst Michael Kovacocy.
Shares in BT rose 6.3 pence, or 4.4%, to 148.3p in Thursday morning trading.
Iraq in third overseas oil deal
Iraq has struck a deal with a consortium led by US oil giant Exxon Mobil, and including Royal Dutch Shell, to develop the West Qurna 1 oil field.
This is the second major deal the country's oil ministry has agreed with overseas oil firms this week.
The latest deal, which needs cabinet approval, is designed to boost oil production at the Qurna oil field from 280,000 to 2.1 million barrels a day.
Earlier this week, Iraq struck a similar deal with Italian firm ENI.
Under the terms of the deal, ENI will lead a consortium to develop the Zubair oilfield in southern Iraq.
The deal, which also needs cabinet approval, calls for the group to extract 200,000 barrels of oil a day, rising to 1.1 million a day within seven years.
Raising production
Last month, Iraq signed off a deal with Britain's BP and China's CNPC.
The two oil companies will develop the giant southern oilfield in Rumaila.
The project aims to almost triple output at the 17-billion-barrel field - increasing it by two million barrels a day.
These agreements are the first major oil deals Iraq has signed with international oil companies since the US-led invasion of 2003.
Iraq has the world's third-largest oil reserves, but production has yet to reach full potential.
The country's total daily output of about 2.4 million barrels is lower than it could be, because of sanctions against former Iraqi governments, lack of investment and insurgent attacks, analysts say.
This is the second major deal the country's oil ministry has agreed with overseas oil firms this week.
The latest deal, which needs cabinet approval, is designed to boost oil production at the Qurna oil field from 280,000 to 2.1 million barrels a day.
Earlier this week, Iraq struck a similar deal with Italian firm ENI.
Under the terms of the deal, ENI will lead a consortium to develop the Zubair oilfield in southern Iraq.
The deal, which also needs cabinet approval, calls for the group to extract 200,000 barrels of oil a day, rising to 1.1 million a day within seven years.
Raising production
Last month, Iraq signed off a deal with Britain's BP and China's CNPC.
The two oil companies will develop the giant southern oilfield in Rumaila.
The project aims to almost triple output at the 17-billion-barrel field - increasing it by two million barrels a day.
These agreements are the first major oil deals Iraq has signed with international oil companies since the US-led invasion of 2003.
Iraq has the world's third-largest oil reserves, but production has yet to reach full potential.
The country's total daily output of about 2.4 million barrels is lower than it could be, because of sanctions against former Iraqi governments, lack of investment and insurgent attacks, analysts say.
Air India losses more than $1bn
Troubled national carrier Air India has reported a net loss of 55.5bn rupees ($1.2bn; £719m) for the full-year to the end of March.
The loss was due largely to a 12% drop in revenue, from 152.5bn rupees to 134.8bn rupees, as a result of falling passenger numbers.
Last month, the Indian government agreed to inject 53bn rupees into the carrier to help keep it in business.
Global airlines are struggling with falling traffic during the downturn.
The International Air Transport Association (Iata) has forecast losses of $11bn across the whole industry for 2009.
Air India has been told by the Indian government to cut costs dramatically as a condition of receiving the state aid.
This could prove difficult, as hundreds of pilots threatened to strike in September to protest against the airline's plans to cut pay incentives.
The strikes were called off after the government intervened.
The loss was due largely to a 12% drop in revenue, from 152.5bn rupees to 134.8bn rupees, as a result of falling passenger numbers.
Last month, the Indian government agreed to inject 53bn rupees into the carrier to help keep it in business.
Global airlines are struggling with falling traffic during the downturn.
The International Air Transport Association (Iata) has forecast losses of $11bn across the whole industry for 2009.
Air India has been told by the Indian government to cut costs dramatically as a condition of receiving the state aid.
This could prove difficult, as hundreds of pilots threatened to strike in September to protest against the airline's plans to cut pay incentives.
The strikes were called off after the government intervened.
Latin America boosts Telefonica
Spanish telecoms firm Telefonica, owner of the O2 mobile network, has reported a rise in nine-month profits.
A strong performance in Latin America helped to lift net income by 0.3% to 5.6bn euros ($8.4bn; £5.1bn).
In Spain, which accounts for a third of its revenues, Telefonica says customer numbers are up despite the recession.
Telefonica Europe chief executive Matthew Key told the BBC that both the consumer and commercial market are showing signs of recovery there.
In the UK, the firm has lost its rights to exclusively sell the iPhone. Mr Key said they would still sell the phone, but also concentrate on other new products such as the Palm Pre.
He added that Telefonica was keen to expand the O2 brand in Germany where he said the brand is only third or fourth in the market.
In Latin America, Telefonica has 170 million customers and it expects the market to continue growing strongly.
A strong performance in Latin America helped to lift net income by 0.3% to 5.6bn euros ($8.4bn; £5.1bn).
In Spain, which accounts for a third of its revenues, Telefonica says customer numbers are up despite the recession.
Telefonica Europe chief executive Matthew Key told the BBC that both the consumer and commercial market are showing signs of recovery there.
In the UK, the firm has lost its rights to exclusively sell the iPhone. Mr Key said they would still sell the phone, but also concentrate on other new products such as the Palm Pre.
He added that Telefonica was keen to expand the O2 brand in Germany where he said the brand is only third or fourth in the market.
In Latin America, Telefonica has 170 million customers and it expects the market to continue growing strongly.
Surprise rise in Australian jobs
Australia's economy created more jobs than expected in October, with 24,500 more people finding employment.
It is the second monthly gain in a row and has led analysts to speculate that interest rates will be increased in December to 3.75% from 3.5%.
In October, Australia became the first G20 country to raise rates since the global recession began, and it raised rates again earlier this month.
The news sent the Australian dollar to a 15-month high.
One Australian dollar was worth 93.33 US cents.
The unemployment rate saw a slight increase to 5.8%, but overall it has remained fairly steady since March.
"These are very strong numbers," said Felicity Emmett, senior economist at RBS.
"Employment is up over 60,000 in just two months and the jobless rate might peak below 6%... that's amazing," she said.
It is the second monthly gain in a row and has led analysts to speculate that interest rates will be increased in December to 3.75% from 3.5%.
In October, Australia became the first G20 country to raise rates since the global recession began, and it raised rates again earlier this month.
The news sent the Australian dollar to a 15-month high.
One Australian dollar was worth 93.33 US cents.
The unemployment rate saw a slight increase to 5.8%, but overall it has remained fairly steady since March.
"These are very strong numbers," said Felicity Emmett, senior economist at RBS.
"Employment is up over 60,000 in just two months and the jobless rate might peak below 6%... that's amazing," she said.
Oil rise 'could derail recovery'
The International Energy Agency (IEA) has warned that the recent rise in the price of oil "risks derailing the recovery" if it continues.
The IEA says that oil demand itself will also rebound much more slowly if price rises continue in 2010.
The oil price has risen more than 70% this year and is trading at about $77 a barrel, after falling on Thursday.
The IEA also warned that signs of renewed economic growth around the world remained "tentative".
The price of oil fell $2.43 to $76.85 a barrel on Thursday after a bigger than expected rise in weekly US oil supplies.
'Risk'
In its monthly report, the agency said China was driving demand and revised upwards its forecasts. In 2010, it predicts a 1.6% increase in demand to 86.2 million barrels a day.
The IEA said that in the US, "the 'real' economy, as opposed to the financial one is struggling to recover" and added that if the government withdrew its stimulus spending measures, the economy could "choke again... and cast further gloom on an already depressed job market".
Graph of oil prices to date in 2009
It added that economies in developed countries were still fragile, and that demand for oil in those nations was dropping away when prices hit $80 a barrel.
"If prices keep rebounding, there's a risk to the global economy as a whole, even to some of those economies in the Far East and even the Middle East," said David Fyfe, the head of the IEA's oil industry division.
However, the IEA also said global oil demand would grow in the fourth quarter of this year, the first year-on-year increase in fuel use since the second quarter of 2008.
And it raised global oil demand forecasts for 2009 by 210,000 barrels to 84.8 million barrels a day.
Meanwhile, the IEA said that oil producing cartel OPEC pumped more oil in October than in September.
The IEA says that oil demand itself will also rebound much more slowly if price rises continue in 2010.
The oil price has risen more than 70% this year and is trading at about $77 a barrel, after falling on Thursday.
The IEA also warned that signs of renewed economic growth around the world remained "tentative".
The price of oil fell $2.43 to $76.85 a barrel on Thursday after a bigger than expected rise in weekly US oil supplies.
'Risk'
In its monthly report, the agency said China was driving demand and revised upwards its forecasts. In 2010, it predicts a 1.6% increase in demand to 86.2 million barrels a day.
The IEA said that in the US, "the 'real' economy, as opposed to the financial one is struggling to recover" and added that if the government withdrew its stimulus spending measures, the economy could "choke again... and cast further gloom on an already depressed job market".
Graph of oil prices to date in 2009
It added that economies in developed countries were still fragile, and that demand for oil in those nations was dropping away when prices hit $80 a barrel.
"If prices keep rebounding, there's a risk to the global economy as a whole, even to some of those economies in the Far East and even the Middle East," said David Fyfe, the head of the IEA's oil industry division.
However, the IEA also said global oil demand would grow in the fourth quarter of this year, the first year-on-year increase in fuel use since the second quarter of 2008.
And it raised global oil demand forecasts for 2009 by 210,000 barrels to 84.8 million barrels a day.
Meanwhile, the IEA said that oil producing cartel OPEC pumped more oil in October than in September.
Porsche confirms big annual loss
German sports carmaker Porsche has confirmed it made a big full-year loss, largely due to its unsuccessful attempt to take over Volkswagen.
Porsche abandoned its long-running attempt to buy VW, Europe's largest carmaker, this summer, despite building a 51% stake in the company.
Instead, Porsche is set to become the 10th VW brand under a deal due to be completed by the end of 2011.
Porsche released a profit warning in July saying it had made a big loss.
The company reported a pre-tax loss of 4.4bn euros ($6.5bn; £3.9bn) for the year to the end of July, against an 8.6bn euros profit the previous year.
It did not release a net profit figure.
Taking out the impact of the VW takeover attempt, Porsche said it remained the "most profitable automobile manufacturer in the world".
Porsche had to build up major debts to get a 51% stake in VW, only to fall short of the required 75% when it could not raise more funds due to the impact of both the global credit crunch and the slump in global car sales.
Porsche abandoned its long-running attempt to buy VW, Europe's largest carmaker, this summer, despite building a 51% stake in the company.
Instead, Porsche is set to become the 10th VW brand under a deal due to be completed by the end of 2011.
Porsche released a profit warning in July saying it had made a big loss.
The company reported a pre-tax loss of 4.4bn euros ($6.5bn; £3.9bn) for the year to the end of July, against an 8.6bn euros profit the previous year.
It did not release a net profit figure.
Taking out the impact of the VW takeover attempt, Porsche said it remained the "most profitable automobile manufacturer in the world".
Porsche had to build up major debts to get a 51% stake in VW, only to fall short of the required 75% when it could not raise more funds due to the impact of both the global credit crunch and the slump in global car sales.
Russian economy growing strongly
Russia's economy grew by 13.9% between July and September compared with the previous quarter, the country's federal statistics agency has said.
The strong growth provided evidence of the country's recovery from a severe economic downturn.
The Russian economy, which is heavily reliant on oil exports, was one of the worst hit by the global downturn.
The rebound in the oil price since the start of this year has helped the economy to recover.
Compared with the same three months a year ago, however, the Russian economy shrank by 8.9%.
Fragile recovery
Earlier on Thursday, Russian President Dmitry Medvedev said his government had succeeded in stabilising the economy.
"But the revival in the markets remains weak and unstable. And the most dangerous thing now is to calm down. We have to continue realising the anti-crisis plan and be ready to implement new measures," he cautioned.
Analysts also argued that the recovery was fragile and heavily dependent on the oil price.
"The main driver of the recovery was the increase in oil and metal prices and the trickle down effect on production in those supporting industries," said Chris Weafer at Uralsib.
"The recovery is very dependent on the global economy rather than domestic factors. If the rest of the world [contracts], then Russia's economic revival would stall and possible reverse."
The strong growth provided evidence of the country's recovery from a severe economic downturn.
The Russian economy, which is heavily reliant on oil exports, was one of the worst hit by the global downturn.
The rebound in the oil price since the start of this year has helped the economy to recover.
Compared with the same three months a year ago, however, the Russian economy shrank by 8.9%.
Fragile recovery
Earlier on Thursday, Russian President Dmitry Medvedev said his government had succeeded in stabilising the economy.
"But the revival in the markets remains weak and unstable. And the most dangerous thing now is to calm down. We have to continue realising the anti-crisis plan and be ready to implement new measures," he cautioned.
Analysts also argued that the recovery was fragile and heavily dependent on the oil price.
"The main driver of the recovery was the increase in oil and metal prices and the trickle down effect on production in those supporting industries," said Chris Weafer at Uralsib.
"The recovery is very dependent on the global economy rather than domestic factors. If the rest of the world [contracts], then Russia's economic revival would stall and possible reverse."
Intel and AMD settle legal rows
US chip maker Intel has agreed to pay rival AMD $1.25bn as part of a deal to settle all outstanding legal disputes between the two companies.
The two firms said the settlement covered all anti-trust litigation and patent disputes.
"While the relationship between the two companies has been difficult in the past, this agreement ends the legal disputes," the two firms said.
AMD's shares closed up 21% following the announcement.
'Step closer'
"While it pains me to write a cheque at any time, in this case I think it was a practical settlement," said Intel's chief executive Paul Otellini.
"It was a good compromise between the two companies, and in many ways it was a small multiple of the potential damages that could be awarded in a jury trial."
Under the terms of the deal, the two firms have agreed a five-year cross licensing agreement, with each agreeing to give up claims of breaching previous agreements.
AMD's chief executive, Dirk Meyer, said the deal created a more level playing field and the company was now "one big step closer to achieving our bold vision".
Competition regulators in Asia, Europe and the US have all taken action against Intel because of complaints by AMD.
Europe's competition spokesman, Jonathan Todd, said he had taken note of the settlement, but that it did not change Intel's duty to comply with European competition law.
Customers 'bullied'
Intel makes 80% of the microchips that power personal computers.
One of the cases filed in Delaware in the US accused Intel of using its market dominance to get customers to buy from them instead of AMD.
Douglas McIntyre, analyst at 24/7 Wall street, said AMD's case was pretty strong in alleging that Intel "bullied customers using its huge market share". He added that AMD should have got a better price for shareholders.
As a result of the settlement, Intel updated its fourth-quarter financial forecasts. It now expects spending to be about $4.2bn - up from $2.9bn.
The two firms said the settlement covered all anti-trust litigation and patent disputes.
"While the relationship between the two companies has been difficult in the past, this agreement ends the legal disputes," the two firms said.
AMD's shares closed up 21% following the announcement.
'Step closer'
"While it pains me to write a cheque at any time, in this case I think it was a practical settlement," said Intel's chief executive Paul Otellini.
"It was a good compromise between the two companies, and in many ways it was a small multiple of the potential damages that could be awarded in a jury trial."
Under the terms of the deal, the two firms have agreed a five-year cross licensing agreement, with each agreeing to give up claims of breaching previous agreements.
AMD's chief executive, Dirk Meyer, said the deal created a more level playing field and the company was now "one big step closer to achieving our bold vision".
Competition regulators in Asia, Europe and the US have all taken action against Intel because of complaints by AMD.
Europe's competition spokesman, Jonathan Todd, said he had taken note of the settlement, but that it did not change Intel's duty to comply with European competition law.
Customers 'bullied'
Intel makes 80% of the microchips that power personal computers.
One of the cases filed in Delaware in the US accused Intel of using its market dominance to get customers to buy from them instead of AMD.
Douglas McIntyre, analyst at 24/7 Wall street, said AMD's case was pretty strong in alleging that Intel "bullied customers using its huge market share". He added that AMD should have got a better price for shareholders.
As a result of the settlement, Intel updated its fourth-quarter financial forecasts. It now expects spending to be about $4.2bn - up from $2.9bn.
TV networks boost Disney profits
Walt Disney has surprised analysts by posting better-than-expected profits for the three months to 3 October.
Net income came in at $895m (£540m) for the quarter, an increase of 18% on the same period a year earlier. Revenue rose by 4% to $9.7bn.
Strong performance at the entertainment giant's media division, which includes the ESPN and ABC television networks, helped to drive overall sales.
Earlier on Thursday, Disney announced two top executives were switching jobs.
At the end of this year, chief finance officer Tom Staggs will swap roles with Jay Rasulo, chairman of the group's parks and resorts division.
"Although last year was a difficult one, I am pleased with the way our businesses have responded to the downturn," said Disney chief Robert Iger.
Media networks saw a 14% rise in revenue, while consumer product sales fell by 12%.
Revenue at the group's resort parks also dropped, as visitors spent less during the downturn.
Net income came in at $895m (£540m) for the quarter, an increase of 18% on the same period a year earlier. Revenue rose by 4% to $9.7bn.
Strong performance at the entertainment giant's media division, which includes the ESPN and ABC television networks, helped to drive overall sales.
Earlier on Thursday, Disney announced two top executives were switching jobs.
At the end of this year, chief finance officer Tom Staggs will swap roles with Jay Rasulo, chairman of the group's parks and resorts division.
"Although last year was a difficult one, I am pleased with the way our businesses have responded to the downturn," said Disney chief Robert Iger.
Media networks saw a 14% rise in revenue, while consumer product sales fell by 12%.
Revenue at the group's resort parks also dropped, as visitors spent less during the downturn.
Friday, October 23, 2009
Kindle sales boost Amazon profits
Online retailer Amazon reported strong profits between July and September - partly thanks to its most popular item, the Kindle electronic reader.
Amazon reported a net profit of $199m (£119.6m) in the period up 62% on the same period a year earlier.
And it said Thanksgiving and Christmas sales may smash expectations - sending its shares 8% higher.
Analysts said the results suggested consumers were comfortable spending with the online retailer.
Overall sales climbed 28% percent to $5.45bn.
And the company said its Kindle electronic book reader had become its single best-selling item in terms of units and dollars.
"Broadly speaking, investors are going to be heartened that consumers are still spending and retail is showing growth and rebounding," said Colin Gillis, analyst ay Brigantine Advisors.
"It's a strong September quarter. I think everyone was expecting a strong result but it came in better than everyone was expecting."
Amazon reported a net profit of $199m (£119.6m) in the period up 62% on the same period a year earlier.
And it said Thanksgiving and Christmas sales may smash expectations - sending its shares 8% higher.
Analysts said the results suggested consumers were comfortable spending with the online retailer.
Overall sales climbed 28% percent to $5.45bn.
And the company said its Kindle electronic book reader had become its single best-selling item in terms of units and dollars.
"Broadly speaking, investors are going to be heartened that consumers are still spending and retail is showing growth and rebounding," said Colin Gillis, analyst ay Brigantine Advisors.
"It's a strong September quarter. I think everyone was expecting a strong result but it came in better than everyone was expecting."
Qatar sale hits Barclays shares
Barclays closed down almost 5% after Qatar's sovereign wealth fund sold shares in the bank worth £1.3bn.
The Middle East investors bought into Barclays last year, when it decided to raise capital privately rather than take money from the UK government.
The deal makes Qatar Holding the second major Gulf investor to cash in its share of Barclays this year.
In 2008, Barclays raised £7bn from Middle East investors to boost its finances.
In June, Abu Dhabi firm International Petroleum Investment Company, which had also participated in last year's fund raising, sold more than a billion Barclays shares.
Reports suggest that it will now turn its attention to Sainsbury's, which saw its shares close up 5.4% on the news.
The supermarket, the UK's third largest grocer, declined to comment on speculation that the Qatar Investment Authority was planning to increase its current 26% stake, with a view to making another bid.
The Middle East investors bought into Barclays last year, when it decided to raise capital privately rather than take money from the UK government.
The deal makes Qatar Holding the second major Gulf investor to cash in its share of Barclays this year.
In 2008, Barclays raised £7bn from Middle East investors to boost its finances.
In June, Abu Dhabi firm International Petroleum Investment Company, which had also participated in last year's fund raising, sold more than a billion Barclays shares.
Reports suggest that it will now turn its attention to Sainsbury's, which saw its shares close up 5.4% on the news.
The supermarket, the UK's third largest grocer, declined to comment on speculation that the Qatar Investment Authority was planning to increase its current 26% stake, with a view to making another bid.
Hyundai profits reach record high
Quarterly profit at Hyundai has tripled to reach a record high, helped by government incentives and a lack of strikes, the company says.
The company reported a net profit of 979.1bn won ($832.2m; £497.4m) in the third quarter.
This figure is more than three times the 264.8bn won profit that the company made a year ago.
Since May, the South Korean government has been offering consumers a 70% cut in taxes when they buy new cars.
Hyundai's success comes as the global industry struggles to emerge from an unprecedented downturn that drove Chrysler and General Motors to bankruptcy.
On Wednesday, Peugeot Citroen, Europe's second-biggest carmaker, reported lower-than-forecast third-quarter sales.
And Russia's largest carmaker Avtovaz said it was to cut up to 27,600 jobs as it tries to cope with the global slump in demand.
Honda is the only major Japanese car maker expected to post an operating profit in the first half of the year, the Nikkei business daily reported on Thursday.
Hyundai now looks set to challenge Germany's Volkswagen as the most profitable of the world's major carmakers this year.
The company reported a net profit of 979.1bn won ($832.2m; £497.4m) in the third quarter.
This figure is more than three times the 264.8bn won profit that the company made a year ago.
Since May, the South Korean government has been offering consumers a 70% cut in taxes when they buy new cars.
Hyundai's success comes as the global industry struggles to emerge from an unprecedented downturn that drove Chrysler and General Motors to bankruptcy.
On Wednesday, Peugeot Citroen, Europe's second-biggest carmaker, reported lower-than-forecast third-quarter sales.
And Russia's largest carmaker Avtovaz said it was to cut up to 27,600 jobs as it tries to cope with the global slump in demand.
Honda is the only major Japanese car maker expected to post an operating profit in the first half of the year, the Nikkei business daily reported on Thursday.
Hyundai now looks set to challenge Germany's Volkswagen as the most profitable of the world's major carmakers this year.
eBay profits continue to fall
Profits at online auction giant eBay have fallen by 29% as it continued to struggle amid the weak economy.
It made $350m (£211m) in the third quarter from $492m in the same period a year earlier as customers showed reluctance to spend.
But the firm's overall sales rose 6% to $2.4bn as more people used its PayPal division to pay for things online.
Shares fell 5% in after-hours trading as it forecast the fourth quarter would continue to be tough.
Revenue from internet communications service Skype, rose by 29%.
Earlier this year eBay agreed to sell the business for about $2bn though will keep a 35% stake.
It made $350m (£211m) in the third quarter from $492m in the same period a year earlier as customers showed reluctance to spend.
But the firm's overall sales rose 6% to $2.4bn as more people used its PayPal division to pay for things online.
Shares fell 5% in after-hours trading as it forecast the fourth quarter would continue to be tough.
Revenue from internet communications service Skype, rose by 29%.
Earlier this year eBay agreed to sell the business for about $2bn though will keep a 35% stake.
Personal data of 51,000 is lost
A tape containing the personal data of 51,000 UK customers has been lost by insurance company Zurich.
It confirmed that the back-up tape went missing during a routine transfer to a data storage centre in South Africa in August 2008.
Details of 550 people in South Africa and Botswana were also on the tape.
The company has written to all the customers whose details were on the tape, but there was no evidence the data had been misused, Zurich said.
The letters explain precautions available for general insurance customers whose details were exposed.
Apology
Zurich UK has brought in accountancy firm KPMG to conduct an investigation, it has stepped up security surrounding the transportation of tapes, and the UK Information Commissioner has been informed.
"We apologise to any customers affected by this unfortunate matter. We take the security of our customers' data very seriously. What has happened is unacceptable to us," said Annette Court, of Zurich.
"We are putting a great deal of investment into strengthening our internal processes to ensure that incidents of this nature do not happen again in the future."
The latest loss comes after a series of cases when personal details have been compromised.
A laptop computer with details of 109,000 members of six pension schemes run by the Pensions Trust was stolen in March.
In October 2008, a laptop containing personal details of more than 100,000 members of the Network Rail and British Transport Police pension schemes was stolen from the accountancy firm Deloitte.
The month before, the Ministry of Defence lost data about 100,000 of its personnel.
The most high-profile loss of personal information came in November 2007, when HM Revenue and Customs (HMRC) lost two computer discs.
They held the entire child benefit database, including the personal details of 25 million people, covering 7.25 million families.
It confirmed that the back-up tape went missing during a routine transfer to a data storage centre in South Africa in August 2008.
Details of 550 people in South Africa and Botswana were also on the tape.
The company has written to all the customers whose details were on the tape, but there was no evidence the data had been misused, Zurich said.
The letters explain precautions available for general insurance customers whose details were exposed.
Apology
Zurich UK has brought in accountancy firm KPMG to conduct an investigation, it has stepped up security surrounding the transportation of tapes, and the UK Information Commissioner has been informed.
"We apologise to any customers affected by this unfortunate matter. We take the security of our customers' data very seriously. What has happened is unacceptable to us," said Annette Court, of Zurich.
"We are putting a great deal of investment into strengthening our internal processes to ensure that incidents of this nature do not happen again in the future."
The latest loss comes after a series of cases when personal details have been compromised.
A laptop computer with details of 109,000 members of six pension schemes run by the Pensions Trust was stolen in March.
In October 2008, a laptop containing personal details of more than 100,000 members of the Network Rail and British Transport Police pension schemes was stolen from the accountancy firm Deloitte.
The month before, the Ministry of Defence lost data about 100,000 of its personnel.
The most high-profile loss of personal information came in November 2007, when HM Revenue and Customs (HMRC) lost two computer discs.
They held the entire child benefit database, including the personal details of 25 million people, covering 7.25 million families.
National Express warns on profits
Transport group National Express has warned that its full-year profits are set to fall below expectations.
The firm, which has been at the centre of bid speculation, said it had been hit by higher interest costs and lower profits at its North American business.
It also said it was continuing to evaluate a merger proposal put forward by rival Stagecoach.
Last week, a group led by its largest shareholder, Spain's Cosmen family, withdrew a £765m takeover offer.
National Express also said that it intended to raise funds by issuing more shares by the end of the year.
Franchise hand-back
National Express said that in the three months to 30 September, trading conditions had remained "difficult", with revenue slowing in a "challenging economic environment".
Total group revenue was down 1% from the same period last year, the firm said.
However, its continuing operations in the UK and Spain were performing "resiliently".
In the UK, National Express operates bus and coach services, and also the East Anglia and c2c rail franchises.
It currently also operates the East Coast Main Line franchise. However, the firm said it was continuing discussions with the government over handing back this franchise.
Earlier this year, the government said it would be taking the East Coast franchise into state ownership after National Express asked for its contract to be renegotiated.
The firm, which has been at the centre of bid speculation, said it had been hit by higher interest costs and lower profits at its North American business.
It also said it was continuing to evaluate a merger proposal put forward by rival Stagecoach.
Last week, a group led by its largest shareholder, Spain's Cosmen family, withdrew a £765m takeover offer.
National Express also said that it intended to raise funds by issuing more shares by the end of the year.
Franchise hand-back
National Express said that in the three months to 30 September, trading conditions had remained "difficult", with revenue slowing in a "challenging economic environment".
Total group revenue was down 1% from the same period last year, the firm said.
However, its continuing operations in the UK and Spain were performing "resiliently".
In the UK, National Express operates bus and coach services, and also the East Anglia and c2c rail franchises.
It currently also operates the East Coast Main Line franchise. However, the firm said it was continuing discussions with the government over handing back this franchise.
Earlier this year, the government said it would be taking the East Coast franchise into state ownership after National Express asked for its contract to be renegotiated.
New menu fuels McDonald's profit
Selling more expensive burgers has helped McDonald's third-quarter profit climb 6%.
The fast-food restaurant chain's global net income for the June to September period rose to $1.3bn (£760.7m), from $1.2bn a year earlier.
McDonald's said new more costly products, such as the Angus Third-Pounder burger, were popular with US diners.
Shares in the company were up 2% in early Thursday trading.
The firm's quarterly sales rose 2.5% at US stores, 5.8% in Europe and 2.2% in Asia, the Middle East and Africa.
It said sales of newer more expensive products also helped boost European sales.
McDonald's expects sales to remain positive in October, even though people are eating out less often
The fast-food restaurant chain's global net income for the June to September period rose to $1.3bn (£760.7m), from $1.2bn a year earlier.
McDonald's said new more costly products, such as the Angus Third-Pounder burger, were popular with US diners.
Shares in the company were up 2% in early Thursday trading.
The firm's quarterly sales rose 2.5% at US stores, 5.8% in Europe and 2.2% in Asia, the Middle East and Africa.
It said sales of newer more expensive products also helped boost European sales.
McDonald's expects sales to remain positive in October, even though people are eating out less often
China economic growth accelerates
China has said it is on track to hit its growth target of 8% this year, after the economy grew 8.9% from a year ago in the third quarter.
The figure is up from the 7.9% rate seen in the previous quarter and is the country's fastest GDP growth since the third quarter of last year.
Separate reports show that industrial production and retail sales also accelerated in September.
The economy grew by 7.7% in the nine months to September.
Retail sales growth was 15.1% in the first three quarters of the year, the National Statistics Bureau said.
China's car market has become the world's largest, with sales up 34% to 9.66 million vehicles in the first nine months of the year.
Government investment
At the end of 2008 the Chinese government announced a 4 trillion yuan ($586bn; £354bn) stimulus plan involving increased spending on infrastructure, such as rail and roads, to boost the domestic economy as exports slumped.
Latest figures show that investment, accounting for nearly 88% of GDP growth earlier this year, is playing a vital role in China's growth.
Investment in factories, construction and other fixed assets rose by one-third in the first nine months of the year to a record 15.5tn yuan.
But factory owners say that in many cases, while the volume of goods they are producing has risen, the prices customers are prepared to pay for them are lower than before the financial crisis.
Unemployment is still high in many areas, and some factory workers are reported to be working shorter hours and earning less.
The next challenge for policy makers is to begin to withdraw elements of the stimulus plan, and to reduce the huge outflows of credit the country's state owned banks have issued, without damaging economic recovery.
As the stimulus is withdrawn, the hope is that demand from the private sector, from consumer spending and eventually from renewed demand for China's exports, will keep the country's growth rate stable.
The figure is up from the 7.9% rate seen in the previous quarter and is the country's fastest GDP growth since the third quarter of last year.
Separate reports show that industrial production and retail sales also accelerated in September.
The economy grew by 7.7% in the nine months to September.
Retail sales growth was 15.1% in the first three quarters of the year, the National Statistics Bureau said.
China's car market has become the world's largest, with sales up 34% to 9.66 million vehicles in the first nine months of the year.
Government investment
At the end of 2008 the Chinese government announced a 4 trillion yuan ($586bn; £354bn) stimulus plan involving increased spending on infrastructure, such as rail and roads, to boost the domestic economy as exports slumped.
Latest figures show that investment, accounting for nearly 88% of GDP growth earlier this year, is playing a vital role in China's growth.
Investment in factories, construction and other fixed assets rose by one-third in the first nine months of the year to a record 15.5tn yuan.
But factory owners say that in many cases, while the volume of goods they are producing has risen, the prices customers are prepared to pay for them are lower than before the financial crisis.
Unemployment is still high in many areas, and some factory workers are reported to be working shorter hours and earning less.
The next challenge for policy makers is to begin to withdraw elements of the stimulus plan, and to reduce the huge outflows of credit the country's state owned banks have issued, without damaging economic recovery.
As the stimulus is withdrawn, the hope is that demand from the private sector, from consumer spending and eventually from renewed demand for China's exports, will keep the country's growth rate stable.
New York Times sees smaller loss
The New York Times Company, the struggling US newspaper group, has reported a smaller-than-expected loss of $35.6m in the third quarter.
The results sent shares in the company up 23% to a one-year high.
Advertising revenue fell almost 30% across all of its newspapers from a year earlier.
The company also announced a non-profit news organisation to provide content for a new Chicago edition of the New York Times.
The Chicago News Co-operative - comprised of former editors from the bankrupt company that owns the Chicago Tribune - will provide the copy for two pages, twice a week, in the first Chicago edition to launch on 20 November.
It is the latest attempt by the newspaper industry to cope with a financial crisis that has left many of its biggest publishers bankrupt.
Journalism woes
At least 12,500 jobs have gone in US print journalism in two years.
The New York Times is struggling to service debts of some $400m, amid dwindling cash reserves and plunging revenue.
It sold its Renzo Piano-designed skyscraper, opened in 2007, earlier this year to bolster its cash flow.
The Tribune Company, which owns the Chicago Tribune, the Los Angeles Times, the Baltimore Sun and many other titles, filed for bankruptcy in December.
The Seattle Post-Intelligencer closed in March. The Rocky Mountain News in Colorado, founded in 1859, also closed .
Mexican billionaire Carlos Slim, the world's second-richest man by Forbes Magazine, bought a 6.4% stake in the New York Times last year.
The results sent shares in the company up 23% to a one-year high.
Advertising revenue fell almost 30% across all of its newspapers from a year earlier.
The company also announced a non-profit news organisation to provide content for a new Chicago edition of the New York Times.
The Chicago News Co-operative - comprised of former editors from the bankrupt company that owns the Chicago Tribune - will provide the copy for two pages, twice a week, in the first Chicago edition to launch on 20 November.
It is the latest attempt by the newspaper industry to cope with a financial crisis that has left many of its biggest publishers bankrupt.
Journalism woes
At least 12,500 jobs have gone in US print journalism in two years.
The New York Times is struggling to service debts of some $400m, amid dwindling cash reserves and plunging revenue.
It sold its Renzo Piano-designed skyscraper, opened in 2007, earlier this year to bolster its cash flow.
The Tribune Company, which owns the Chicago Tribune, the Los Angeles Times, the Baltimore Sun and many other titles, filed for bankruptcy in December.
The Seattle Post-Intelligencer closed in March. The Rocky Mountain News in Colorado, founded in 1859, also closed .
Mexican billionaire Carlos Slim, the world's second-richest man by Forbes Magazine, bought a 6.4% stake in the New York Times last year.
Nokia suing Apple over the iPhone
Nokia, the world's biggest mobile phone maker, has said that it is suing its US rival Apple for infringing patents on mobile phone technology for the iPhone.
Nokia said it had not been compensated for its technology, and accused Apple of "trying to get a free ride on the back of Nokia's innovation".
The 10 alleged patent infringements involve wireless data, speech coding, security and encryption.
Apple, which did not comment on the news, saw its shares dip slightly,
The breaches applied to all models of the iPhone since its launch in 2007, Nokia added.
'Basic principle'
Finland's Nokia said that it had agreements with about 40 firms - including most mobile phone handset makers - allowing them to use the firm's technology, but that Apple had not signed an agreement.
"The basic principle in the mobile industry is that those companies who contribute in technology development to establish standards create intellectual property, which others then need to compensate for," said Ilkka Rahnasto, vice president of Legal & Intellectual Property at Nokia.
"Apple is also expected to follow this principle."
He added that during the last two decades, Nokia had invested approximately 40bn euros (£36.2bn; $60bn) on research and development.
Earlier this month, Nokia posted its first quarterly loss in a decade amid falling sales.
Analysts said that the poor results had come partly as customers turned from Nokia models to the iPhone and RIM's Blackberry.
Meanwhile, Apple reported profits of $1.67bn (£1bn) in the three months to 26 September - partly due to a 7% growth in iPhone sales.
Nokia said it had not been compensated for its technology, and accused Apple of "trying to get a free ride on the back of Nokia's innovation".
The 10 alleged patent infringements involve wireless data, speech coding, security and encryption.
Apple, which did not comment on the news, saw its shares dip slightly,
The breaches applied to all models of the iPhone since its launch in 2007, Nokia added.
'Basic principle'
Finland's Nokia said that it had agreements with about 40 firms - including most mobile phone handset makers - allowing them to use the firm's technology, but that Apple had not signed an agreement.
"The basic principle in the mobile industry is that those companies who contribute in technology development to establish standards create intellectual property, which others then need to compensate for," said Ilkka Rahnasto, vice president of Legal & Intellectual Property at Nokia.
"Apple is also expected to follow this principle."
He added that during the last two decades, Nokia had invested approximately 40bn euros (£36.2bn; $60bn) on research and development.
Earlier this month, Nokia posted its first quarterly loss in a decade amid falling sales.
Analysts said that the poor results had come partly as customers turned from Nokia models to the iPhone and RIM's Blackberry.
Meanwhile, Apple reported profits of $1.67bn (£1bn) in the three months to 26 September - partly due to a 7% growth in iPhone sales.
Asia expects to grow by 5.75 percent
WASHINGTON: The IMF's most recent World Economic Outlook forecasts global economic contraction of about one percent this year and expansion of around three percent next year.
At the same time, Asia is expected to grow by 2.75 percent this year and by 5.75 percent in 2010.
Some Asian nations -- particularly advanced and export-dependent economies that have experienced a relatively large cyclical weakening of their fiscal positions -- plan to withdraw stimulus next year amid recovery signs, the Washington-based IMF said.
"However, these plans should proceed cautiously until the recovery seems assured," deputy IMF managing director John Lipsky warned.
He asked them to enhance "fiscal credibility" by announcing "concrete medium-term consolidation plans."
At the same time, Asia is expected to grow by 2.75 percent this year and by 5.75 percent in 2010.
Some Asian nations -- particularly advanced and export-dependent economies that have experienced a relatively large cyclical weakening of their fiscal positions -- plan to withdraw stimulus next year amid recovery signs, the Washington-based IMF said.
"However, these plans should proceed cautiously until the recovery seems assured," deputy IMF managing director John Lipsky warned.
He asked them to enhance "fiscal credibility" by announcing "concrete medium-term consolidation plans."
Sunday, October 11, 2009
Wednesday, October 7, 2009
Strong increase in new car sales
Sales of new cars rose 11.4% in September compared with the same month last year, according to the Society of Motor Manufacturers and Traders (SMMT).
The new "59" registration plates were available from 1 September and 367,929 of them were sold in the month.
The SMMT said that conditions remained "challenging" but the market was being supported by the scrappage scheme.
Last week, the government announced it was extending the trade-in scheme from £300m to £400m.
"The extension of the scheme will help to sustain demand through the latter part of this year and into 2010," said Paul Everitt, chief executive of the SMMT.
"This will allow economic recovery to strengthen and safeguard valuable industrial capability."
The scrappage scheme allows people to trade-in a car that is more than 10 years old for £2,000 off a new vehicle.
The SMMT predicted that September would be the strongest month of the year for car sales, accounting for about 20% of the year's total.
The Ford Fiesta was the best selling car in the month for the seventh time in 2009, reflecting continuing strong demand for smaller cars.
It was the first time in five years that sales in September had beaten sales in March, when the year's other new registration number is released.
The new "59" registration plates were available from 1 September and 367,929 of them were sold in the month.
The SMMT said that conditions remained "challenging" but the market was being supported by the scrappage scheme.
Last week, the government announced it was extending the trade-in scheme from £300m to £400m.
"The extension of the scheme will help to sustain demand through the latter part of this year and into 2010," said Paul Everitt, chief executive of the SMMT.
"This will allow economic recovery to strengthen and safeguard valuable industrial capability."
The scrappage scheme allows people to trade-in a car that is more than 10 years old for £2,000 off a new vehicle.
The SMMT predicted that September would be the strongest month of the year for car sales, accounting for about 20% of the year's total.
The Ford Fiesta was the best selling car in the month for the seventh time in 2009, reflecting continuing strong demand for smaller cars.
It was the first time in five years that sales in September had beaten sales in March, when the year's other new registration number is released.
Google targeted in e-mail scam
Google's web-based e-mail system, Gmail, has been targeted as part of an "industry-wide phishing scheme".
The firm said that it had immediately safeguarded the affected accounts.
BBC News has seen two lists that detail more than 30,000 names and passwords from e-mail providers, including Yahoo and AOL, which were posted online.
The lists also include details of thousands of Microsoft Hotmail users. Google said fewer than 500 of its accounts had been affected by the scam.
However, the search giant revealed that it had discovered a third list, but would not say how many accounts it showed.
Phishing involves using fake websites to lure people into revealing data such as bank account details or login names.
"We recently became aware of an industry-wide phishing scheme through which hackers gained user credentials for web-based mail accounts including Gmail accounts," said a Google spokesperson.
"As soon as we learned of the attack, we forced password resets on the affected accounts. We will continue to force password resets on additional accounts when we become aware of them."
The firm stressed that the scam was "not a breach of Gmail security" but rather "a scam to get users to give away their personal information to hackers".
'Industry problem'
The phishing scam was originally thought to target just Hotmail users.
It was brought to light when 10,000 Hotmail addresses were posted online at Pastebin, a website commonly used by developers to share code.
The list was reported by technology blog Neowin.
However, a second list of 20,000 names has since emerged containing e-mail addresses and passwords from Hotmail, Yahoo, AOL, Gmail and other service providers. A third list, which has not been seen by the BBC, was discovered by Google.
Some of the accounts on the list of 20,000 names appear to be old, unused or fake. However, BBC News confirmed that many - including Gmail, Yahoo and Hotmail addresses - were genuine.
Other addresses on the list include Comcast and Earthlink accounts.
It is not clear whether the new lists was part of the same phishing attack that collected the Hotmail addresses or a separate scam.
A spokesperson for Microsoft said phishing was an "industry-wide problem".
"Our guidance to customers is to exercise extreme caution when opening unsolicited attachments and links from both known and unknown sources, and that they install and regularly update their anti-virus software."
Both lists can still be accessed online.
A spokesperson for Yahoo urged consumers to "take measures to secure their accounts whenever possible, including changing their passwords".
Carole Theriault of security firm Sophos agreed.
"Getting access to one password can give someone access to lots of things," she said.
People should change their password on any other site where they use it, she added.
A recent report by the firm said that around 40% of people had the same password for every website they used.
"People need to see a difference between an online bank account and booking cinema tickets online," she told BBC News.
But, she said, blame did not rest with the users of the e-mail services, who most likely clicked on a link in a scam message.
"Phishing attacks are very subtle these days," she said. "People do all kinds of tricky things."
Fake websites, which ask for a user's login details, can be made to look like those of reputable companies.
"This should be a wake-up call to Google and Microsoft to educate their users," said Ms Theriault.
The firm said that it had immediately safeguarded the affected accounts.
BBC News has seen two lists that detail more than 30,000 names and passwords from e-mail providers, including Yahoo and AOL, which were posted online.
The lists also include details of thousands of Microsoft Hotmail users. Google said fewer than 500 of its accounts had been affected by the scam.
However, the search giant revealed that it had discovered a third list, but would not say how many accounts it showed.
Phishing involves using fake websites to lure people into revealing data such as bank account details or login names.
"We recently became aware of an industry-wide phishing scheme through which hackers gained user credentials for web-based mail accounts including Gmail accounts," said a Google spokesperson.
"As soon as we learned of the attack, we forced password resets on the affected accounts. We will continue to force password resets on additional accounts when we become aware of them."
The firm stressed that the scam was "not a breach of Gmail security" but rather "a scam to get users to give away their personal information to hackers".
'Industry problem'
The phishing scam was originally thought to target just Hotmail users.
It was brought to light when 10,000 Hotmail addresses were posted online at Pastebin, a website commonly used by developers to share code.
The list was reported by technology blog Neowin.
However, a second list of 20,000 names has since emerged containing e-mail addresses and passwords from Hotmail, Yahoo, AOL, Gmail and other service providers. A third list, which has not been seen by the BBC, was discovered by Google.
Some of the accounts on the list of 20,000 names appear to be old, unused or fake. However, BBC News confirmed that many - including Gmail, Yahoo and Hotmail addresses - were genuine.
Other addresses on the list include Comcast and Earthlink accounts.
It is not clear whether the new lists was part of the same phishing attack that collected the Hotmail addresses or a separate scam.
A spokesperson for Microsoft said phishing was an "industry-wide problem".
"Our guidance to customers is to exercise extreme caution when opening unsolicited attachments and links from both known and unknown sources, and that they install and regularly update their anti-virus software."
Both lists can still be accessed online.
A spokesperson for Yahoo urged consumers to "take measures to secure their accounts whenever possible, including changing their passwords".
Carole Theriault of security firm Sophos agreed.
"Getting access to one password can give someone access to lots of things," she said.
People should change their password on any other site where they use it, she added.
A recent report by the firm said that around 40% of people had the same password for every website they used.
"People need to see a difference between an online bank account and booking cinema tickets online," she told BBC News.
But, she said, blame did not rest with the users of the e-mail services, who most likely clicked on a link in a scam message.
"Phishing attacks are very subtle these days," she said. "People do all kinds of tricky things."
Fake websites, which ask for a user's login details, can be made to look like those of reputable companies.
"This should be a wake-up call to Google and Microsoft to educate their users," said Ms Theriault.
Japanese retailer sees sales soar
Shares in Japanese clothing group Fast Retailing have jumped 16% after its Uniqlo store chain posted a big increase in same-store sales.
Excluding new shop openings, sales across Uniqlo's 700 outlets in Japan increased 32% in September from a year earlier, the biggest rise in 10 months.
Fast Retailing put the big jump in sales down to colder weather increasing demand for its new autumn collection.
The firm is due to report a rise in annual profits later this week.
"The increase in [Uniqlo's] September same-store sales was beyond our imagination," said retail analyst Masafumi Shoda of Nomura Securities.
"We are starting to see a sales trend that is even better than last year's strong sales, as new merchandise is creating demand."
Shares in Fast Retailing ended Monday trading up 16% to 13,710 ye
Excluding new shop openings, sales across Uniqlo's 700 outlets in Japan increased 32% in September from a year earlier, the biggest rise in 10 months.
Fast Retailing put the big jump in sales down to colder weather increasing demand for its new autumn collection.
The firm is due to report a rise in annual profits later this week.
"The increase in [Uniqlo's] September same-store sales was beyond our imagination," said retail analyst Masafumi Shoda of Nomura Securities.
"We are starting to see a sales trend that is even better than last year's strong sales, as new merchandise is creating demand."
Shares in Fast Retailing ended Monday trading up 16% to 13,710 ye
Dollar falls on oil plan report
The dollar has fallen following a report that Gulf states are in secret talks to replace the greenback as the main currency for the trading of oil.
Nations including Saudi Arabia and the United Arab Emirates were speaking to Russia, China, Japan and France, said the UK's Independent newspaper.
However, Saudi Arabia subsequently said the report was "absolutely inaccurate".
It caused the euro to rise 0.4% against the dollar to $1.47040. The pound also rose, by 0.4%, before falling back.
The pound reached $1.5991 before dropping back to $1.58920.
The fall in the value of the dollar had a knock-on impact on the price of gold, which rose to a record high of $1,036.60 an ounce.
Gold rose because a weaker dollar - in which it is valued - increases its attractiveness to investors.
The Independent's report said the Gulf states wished to replace the dollar over a nine-year period with a basket of currencies including the yen, China's yuan, the euro, and the new unified currency planned for nations in the Gulf Co-operation Council, which include Saudi Arabia, Kuwait, the United Arab Emirates and Qatar.
Kuwait also denied the article's claim.
"We have never discussed or proposed this," said Kuwaiti Oil Minister Sheikh Ahmad Abdullah al-Sabah.
China's central bank suggested in March that the dollar should be replaced by a new global reserve currency run by the International Monetary Fund.
Nations including Saudi Arabia and the United Arab Emirates were speaking to Russia, China, Japan and France, said the UK's Independent newspaper.
However, Saudi Arabia subsequently said the report was "absolutely inaccurate".
It caused the euro to rise 0.4% against the dollar to $1.47040. The pound also rose, by 0.4%, before falling back.
The pound reached $1.5991 before dropping back to $1.58920.
The fall in the value of the dollar had a knock-on impact on the price of gold, which rose to a record high of $1,036.60 an ounce.
Gold rose because a weaker dollar - in which it is valued - increases its attractiveness to investors.
The Independent's report said the Gulf states wished to replace the dollar over a nine-year period with a basket of currencies including the yen, China's yuan, the euro, and the new unified currency planned for nations in the Gulf Co-operation Council, which include Saudi Arabia, Kuwait, the United Arab Emirates and Qatar.
Kuwait also denied the article's claim.
"We have never discussed or proposed this," said Kuwaiti Oil Minister Sheikh Ahmad Abdullah al-Sabah.
China's central bank suggested in March that the dollar should be replaced by a new global reserve currency run by the International Monetary Fund.
UK economy 'is still not growing'
Contrary to expectations, the UK economy did not grow in the third quarter of the year, an influential economic group has predicted.
Gross domestic product (GDP) was unchanged from July to September, the National Institute of Economic and Social Research (NIESR) calculated.
Official GDP figures for the third quarter will be released on 23 October.
Many economists predicted there would be growth in the three-month period, which would end the UK recession.
The NIESR blamed the economy's failure to register any growth on weak industrial production in August, especially reduced activity in the oil industry.
Liam Byrne, Chief Secretary to the Treasury, said the NIESR's figures "seem to confirm the Chancellor's judgement that the economy will begin to grow by the end of the year".
"Today's estimates show the action we're taking to support the economy is working," he said.
The biggest risk now to economic recovery was complacency, he added.
Great prominence
The Office for National Statistics (ONS) announced earlier in the day that industrial output had unexpectedly fallen in August, dropping 2.5% from the previous month.
GDP figures are given great prominence because a recession is generally taken to be shown by two consecutive quarters when the economic output is contracting.
The NIESR points out that its forecasts tend to be within 0.2 percentage points of the first official estimate from the ONS, which means that it is likely the economy will show either a small amount of growth or decline.
It also warned that its predictions were likely to be less accurate than usual because of the "current disturbed economic circumstances".
But the forecast does cast doubt on whether the UK economy will be following France, Germany and Japan out of recession.
Even if it does not, there is likely to have been be an improvement from the 0.6% contraction seen between April and June.
Gross domestic product (GDP) was unchanged from July to September, the National Institute of Economic and Social Research (NIESR) calculated.
Official GDP figures for the third quarter will be released on 23 October.
Many economists predicted there would be growth in the three-month period, which would end the UK recession.
The NIESR blamed the economy's failure to register any growth on weak industrial production in August, especially reduced activity in the oil industry.
Liam Byrne, Chief Secretary to the Treasury, said the NIESR's figures "seem to confirm the Chancellor's judgement that the economy will begin to grow by the end of the year".
"Today's estimates show the action we're taking to support the economy is working," he said.
The biggest risk now to economic recovery was complacency, he added.
Great prominence
The Office for National Statistics (ONS) announced earlier in the day that industrial output had unexpectedly fallen in August, dropping 2.5% from the previous month.
GDP figures are given great prominence because a recession is generally taken to be shown by two consecutive quarters when the economic output is contracting.
The NIESR points out that its forecasts tend to be within 0.2 percentage points of the first official estimate from the ONS, which means that it is likely the economy will show either a small amount of growth or decline.
It also warned that its predictions were likely to be less accurate than usual because of the "current disturbed economic circumstances".
But the forecast does cast doubt on whether the UK economy will be following France, Germany and Japan out of recession.
Even if it does not, there is likely to have been be an improvement from the 0.6% contraction seen between April and June.
Apple challenges Woolworths logo
Technology giant Apple has launched a legal challenge against Australian supermarket chain Woolworths over the company's corporate logo.
The "stylised W" designed to represent fresh produce looks too similar to Apple's own logo, the maker of the iPhone and iPod said.
It has lodged an objection with the Australian government's intellectual property agency, IP Australia.
Woolworths denied the logo was designed specifically to look like an apple.
"We absolutely say it is a stylised 'W' that can be any kind of fresh produce. Some people say it looks like a lettuce, some people say it can be a pumpkin," said Clare Buchanan at Woolworths.
Apple is reportedly concerned that the supermarket may start to make electronics products that would be in direct competition with its own offerings.
Woolworths has no connection with the failed retail chain in the UK of the same name.
On Monday, Apple announced that it was quitting the US Chamber of Commerce in protest at the body's policy on climate change.
"We would prefer that the chamber take a more progressive stance on this critical issue and play a constructive role in addressing the climate crisis," Apple's Catherine Novelli wrote in a letter to the business group.
The "stylised W" designed to represent fresh produce looks too similar to Apple's own logo, the maker of the iPhone and iPod said.
It has lodged an objection with the Australian government's intellectual property agency, IP Australia.
Woolworths denied the logo was designed specifically to look like an apple.
"We absolutely say it is a stylised 'W' that can be any kind of fresh produce. Some people say it looks like a lettuce, some people say it can be a pumpkin," said Clare Buchanan at Woolworths.
Apple is reportedly concerned that the supermarket may start to make electronics products that would be in direct competition with its own offerings.
Woolworths has no connection with the failed retail chain in the UK of the same name.
On Monday, Apple announced that it was quitting the US Chamber of Commerce in protest at the body's policy on climate change.
"We would prefer that the chamber take a more progressive stance on this critical issue and play a constructive role in addressing the climate crisis," Apple's Catherine Novelli wrote in a letter to the business group.
Eurozone economy shrinks by 0.2%
Economic activity in the eurozone shrank by 0.2% between April and June - worse than originally thought - according to official figures.
The European Union's Eurostat agency had previously said the economy of the region had contracted by 0.1%.
But the revised figures showed Greece, Poland, Portugal and the Czech Republic have emerged from recession. France and Germany had already returned to growth.
The UK's economic contraction has already been revised to 0.6% from 0.8%.
Separately, the European Commission said that another nine EU nations were now breaking a key rule requiring them to keep budget deficits beneath 3% of GDP.
Growth expected
The eurozone gross domestic product (GDP) figure - for the 16 countries that use the euro - for the April to June period showed the fifth consecutive quarter of economic contraction.
While the figure was worse than initially thought, it was a marked improvement on the 2.5% drop recorded in the first three months of the year.
Stronger exports and consumer spending, as well as government stimulus packages, contributed to the improvement.
The revised figure "does not materially change the picture," said chief IHS Global Insight analyst Howard Archer.
"It still seems likely that the region returned to growth in the third quarter, albeit modest."
For the entire 27-nation bloc, gross domestic product (GDP) fell 0.3% in the second quarter - slightly worse than the 0.2% estimate first given.
This took the annual rate of decline to 4.8%.
Revenue fall
Meanwhile, the European Commission said that Germany, Italy, the Netherlands, Austria, Belgium, Slovenia, Slovakia and Portugal had breached rules on budget deficits, as had the Czech Republic, which lies outside the eurozone.
The Commission said the deficits, while primarily due to the economic crisis, were not "exceptional and temporary".
The rules to keep debt and deficit within certain limits are designed to keep the finances of the 16 nations which use the euro in line, promoting the stability of the currency.
Other EU countries are also required to follow the rules on deficit and debt.
More countries are seeing their deficits widen as tax income falls while spending increases to rescue failing banks and fund benefit payments to the unemployed.
The European Union's Eurostat agency had previously said the economy of the region had contracted by 0.1%.
But the revised figures showed Greece, Poland, Portugal and the Czech Republic have emerged from recession. France and Germany had already returned to growth.
The UK's economic contraction has already been revised to 0.6% from 0.8%.
Separately, the European Commission said that another nine EU nations were now breaking a key rule requiring them to keep budget deficits beneath 3% of GDP.
Growth expected
The eurozone gross domestic product (GDP) figure - for the 16 countries that use the euro - for the April to June period showed the fifth consecutive quarter of economic contraction.
While the figure was worse than initially thought, it was a marked improvement on the 2.5% drop recorded in the first three months of the year.
Stronger exports and consumer spending, as well as government stimulus packages, contributed to the improvement.
The revised figure "does not materially change the picture," said chief IHS Global Insight analyst Howard Archer.
"It still seems likely that the region returned to growth in the third quarter, albeit modest."
For the entire 27-nation bloc, gross domestic product (GDP) fell 0.3% in the second quarter - slightly worse than the 0.2% estimate first given.
This took the annual rate of decline to 4.8%.
Revenue fall
Meanwhile, the European Commission said that Germany, Italy, the Netherlands, Austria, Belgium, Slovenia, Slovakia and Portugal had breached rules on budget deficits, as had the Czech Republic, which lies outside the eurozone.
The Commission said the deficits, while primarily due to the economic crisis, were not "exceptional and temporary".
The rules to keep debt and deficit within certain limits are designed to keep the finances of the 16 nations which use the euro in line, promoting the stability of the currency.
Other EU countries are also required to follow the rules on deficit and debt.
More countries are seeing their deficits widen as tax income falls while spending increases to rescue failing banks and fund benefit payments to the unemployed.
EU consults on Microsoft pledges
The European Union has begun an investigation to determine whether Microsoft is upholding pledges to curb anti-competitive practices.
It is consulting PC makers, software firms and consumers on Microsoft's offer to allow users to pick different browsers when they install Windows.
The bloc ruled in 2004 that Microsoft had abused its dominant market position by freezing out rivals.
It said Microsoft must let competitors' products run on its operating system.
"The commission will formally market test proposals made by Microsoft to address concerns regarding the tying of Internet Explorer to the Windows PC operating system," said the EU's competition commissioner Neelie Kroes.
"The preliminary view is that Microsoft's commitments would indeed address our concerns," she added.
"PC users should have an effective and unbiased choice between Internet Explorer and competing web browsers."
Long history
In July, Microsoft proposed a consumer choice screen that allowed users to pick from a number of different browsers.
The commission then asked Microsoft to improve the choice screen, which it has now done.
The latest proposal, and the one which the EU is consulting on, features a choice of 12 browsers.
The proposal also relates to exchanging information with other software companies.
It will "ensure that developers throughout the industry will have access to technical documentation to assist them in building products that work well with [our] products," Microsoft said in a statement.
"Today's decision is a significant step toward closing a decade-long chapter in competition law concerns in Europe," it added.
Back in 2004, the EU fined Microsoft and forced it to offer a version of its Windows operating system without Microsoft's own media player.
The company was also told to give rivals more information about how Windows works, so they could make their own software integrate better with the operating system.
Microsoft appealed against the decision but lost its case in 2007.
It is consulting PC makers, software firms and consumers on Microsoft's offer to allow users to pick different browsers when they install Windows.
The bloc ruled in 2004 that Microsoft had abused its dominant market position by freezing out rivals.
It said Microsoft must let competitors' products run on its operating system.
"The commission will formally market test proposals made by Microsoft to address concerns regarding the tying of Internet Explorer to the Windows PC operating system," said the EU's competition commissioner Neelie Kroes.
"The preliminary view is that Microsoft's commitments would indeed address our concerns," she added.
"PC users should have an effective and unbiased choice between Internet Explorer and competing web browsers."
Long history
In July, Microsoft proposed a consumer choice screen that allowed users to pick from a number of different browsers.
The commission then asked Microsoft to improve the choice screen, which it has now done.
The latest proposal, and the one which the EU is consulting on, features a choice of 12 browsers.
The proposal also relates to exchanging information with other software companies.
It will "ensure that developers throughout the industry will have access to technical documentation to assist them in building products that work well with [our] products," Microsoft said in a statement.
"Today's decision is a significant step toward closing a decade-long chapter in competition law concerns in Europe," it added.
Back in 2004, the EU fined Microsoft and forced it to offer a version of its Windows operating system without Microsoft's own media player.
The company was also told to give rivals more information about how Windows works, so they could make their own software integrate better with the operating system.
Microsoft appealed against the decision but lost its case in 2007.
HSBC boss says banks owe apology
The entire banking industry "owes the real world an apology", the chairman of HSBC has said.
Stephen Green told BBC World Business Report that a change in culture was needed to improve the public's perception of bankers.
He also said that London was secure as a major financial centre, but would lose market share as Asia developed.
Last month, HSBC announced that its chief executive Michael Geoghan would move to Hong Kong from London.
But Mr Green said the bank's decision did not mean it was turning its back on London.
"Two-thirds of our business is in Asia. It's where we think the centre of gravity of the world's economy is shifting," he said.
'Learn the lessons'
Mr Green, in Istanbul for the annual meetings of the World Bank and the International Monetary Fund, admitted the banking industry collectively owed the world an apology for the financial crisis.
"It also owes the real world a commitment to learn the lessons. Some of them are about governance and ethics and culture within the industry," he said.
"You can't do all this simply by rules and regulations."
However, commenting on increased regulations for banks, Mr Green said it was "inevitable" that regulators as well as the banks themselves could learn from the crisis.
He added that the industry needed to "pay much more attention to liquidity" than it had done previously.
On Monday, the Financial Services Authority in the UK published new rules governing funding standards at banks and building societies, stating that banks should hold more assets that were truly liquid, such as government bonds.
Stephen Green told BBC World Business Report that a change in culture was needed to improve the public's perception of bankers.
He also said that London was secure as a major financial centre, but would lose market share as Asia developed.
Last month, HSBC announced that its chief executive Michael Geoghan would move to Hong Kong from London.
But Mr Green said the bank's decision did not mean it was turning its back on London.
"Two-thirds of our business is in Asia. It's where we think the centre of gravity of the world's economy is shifting," he said.
'Learn the lessons'
Mr Green, in Istanbul for the annual meetings of the World Bank and the International Monetary Fund, admitted the banking industry collectively owed the world an apology for the financial crisis.
"It also owes the real world a commitment to learn the lessons. Some of them are about governance and ethics and culture within the industry," he said.
"You can't do all this simply by rules and regulations."
However, commenting on increased regulations for banks, Mr Green said it was "inevitable" that regulators as well as the banks themselves could learn from the crisis.
He added that the industry needed to "pay much more attention to liquidity" than it had done previously.
On Monday, the Financial Services Authority in the UK published new rules governing funding standards at banks and building societies, stating that banks should hold more assets that were truly liquid, such as government bonds.
Santander raises $8bn in Brazil
The Brazilian unit of Spanish banking giant Santander has raised 14.1bn reais (£5.1bn; $8.1bn) in the country's biggest share offering.
The flotation, in both Sao Paulo and New York, was the biggest in the world since Visa's offering in March 2008.
It will use some of the proceeds to expand its branch network and install automatic teller machines. It will also boost its capital reserves.
Santander is the third largest private-sector bank in Brazil by assets.
It has a market share of about 10%, with just over 3,600 branches across the country, having expanded through six domestic takeovers over the past 12 years.
High demand
The unit is one of Santander's most profitable businesses - making up about 20% of its total net income in the first half of 2009.
The bank had increased the number of shares it put up for sale, to meet demand from investors.
The previous largest initial public offering (IPO) in Brazil was that of credit card processor VisaNet in June.
The high level of demand for the offer was seen as an indication that considerable interest had returned to the IPO market, analysts said.
The flotation, in both Sao Paulo and New York, was the biggest in the world since Visa's offering in March 2008.
It will use some of the proceeds to expand its branch network and install automatic teller machines. It will also boost its capital reserves.
Santander is the third largest private-sector bank in Brazil by assets.
It has a market share of about 10%, with just over 3,600 branches across the country, having expanded through six domestic takeovers over the past 12 years.
High demand
The unit is one of Santander's most profitable businesses - making up about 20% of its total net income in the first half of 2009.
The bank had increased the number of shares it put up for sale, to meet demand from investors.
The previous largest initial public offering (IPO) in Brazil was that of credit card processor VisaNet in June.
The high level of demand for the offer was seen as an indication that considerable interest had returned to the IPO market, analysts said.
3 US based scientists capture Nobel Prize in Medicine
STOCKHOLM: Three US based scientists have won the 2009 Nobel Prize for medicine for their discovery into how chromosomes are copied and protected. The work casts important light on cancer and the aging process.
Elizabeth Blackburn from the University of California, San Francisco, Jack Szostak from Harvard Medical School and Carol Greider from Johns Hopkins University all share this year's Nobel prize for medicine.
Nobel Committee member Rune Toftgard from Sweden's Karolinska Institute says the three took the top honour for their work in the 1980s that revealed how chromosomes, the rod-like structures that carry DNA, protect themselves from degrading when cells divide.
Their research has shed new light on disease mechanisms and has spawned the development of potential new therapies.
Elizabeth Blackburn from the University of California, San Francisco, Jack Szostak from Harvard Medical School and Carol Greider from Johns Hopkins University all share this year's Nobel prize for medicine.
Nobel Committee member Rune Toftgard from Sweden's Karolinska Institute says the three took the top honour for their work in the 1980s that revealed how chromosomes, the rod-like structures that carry DNA, protect themselves from degrading when cells divide.
Their research has shed new light on disease mechanisms and has spawned the development of potential new therapies.
US Senate passes $636 billion defense spending bill
WASHINGTON: The U.S. Senate on Tuesday approved $636 billion to fund military operations for the fiscal year that started on October 1, $3.9 billion less than requested by the Obama administration.
Lawmakers must resolve differences with a similar spending bill passed by the House of Representatives before President Barack Obama can sign it into law.
The bill passed by a vote of 93 to 7. The bill would fund $128.2 billion for wars in Iraq and Afghanistan. Congress in prior years funded the two wars separately from regular Pentagon operations.
The bill would end production of Lockheed-Martin Corp.'s (LMT.N) F-22 fighter plane and the VH-71 presidential helicopter, also made by Lockheed. The Pentagon has said it does not need these aircraft. $7.7 billion for missile defense, a $1.4 billion cut from last year.
The bill provides $3.65 billion to build two DDG-51 destroyers, one more than the Pentagon wants.
Lawmakers must resolve differences with a similar spending bill passed by the House of Representatives before President Barack Obama can sign it into law.
The bill passed by a vote of 93 to 7. The bill would fund $128.2 billion for wars in Iraq and Afghanistan. Congress in prior years funded the two wars separately from regular Pentagon operations.
The bill would end production of Lockheed-Martin Corp.'s (LMT.N) F-22 fighter plane and the VH-71 presidential helicopter, also made by Lockheed. The Pentagon has said it does not need these aircraft. $7.7 billion for missile defense, a $1.4 billion cut from last year.
The bill provides $3.65 billion to build two DDG-51 destroyers, one more than the Pentagon wants.
People to watch tidal waves on Qintang River bank
BEIJING: Visitors gather to watch the tidal wave (bore) on the bank of Qiantang River in Haining, Zhejiang province of China on October 6, 2009, Geo news Wednesday reported.
The most violent tidal waves are seen each year along the river during the eighteenth day of the eighth month of the Chinese Lunar calendar, which falls on October 6 this year.
Qiantang River is the biggest in Zhejiang Province, running from the west to Hangzhou Bay in the east. It serves as a river hinge, playing an important role in the water-transportation between the east and the west.
It is encircled by a group of economically booming cities including Shanghai, China's leading industrial and commercial hub, and Ningbo, one of China's leading port cities.
The extraordinary surging tide of the Qiantang River is a world-renowned natural wonder caused by the gravitational pull of the stars and planets. The centrifugal force produced by the rotation of the earth and by the peculiar bottleneck shape of Hangzhou Bay makes it easy for the tide to come in, but difficult for it to ebb.
The soaring tide of the Qiantang River is such a marvelous spectacle that only the Amazon River's surging tide rivals it! Annually, millions of people from both home and abroad flock there to watch the magnificent tide on the eighteenth day of the eighth lunar month (also around the Mid-Autumn Day).
When the surging tide comes, the water can rise up to a height of 30 feet and the noise it generates sounds like thunder, or thousands of horses running.
Various activities are held to celebrate the annual Tide - Watching Festival, according to local custom. In terms of its history, the custom of watching the bore tide has happened for more than 2000 years. It first appeared during the first century.
Then, it became popular in the Tang Dynasty (about 7th -13th century). Yangong town in Haijing 45 km (about 28 miles) from Hangzhou is the best place to watch the Qiantang Tide.
The most violent tidal waves are seen each year along the river during the eighteenth day of the eighth month of the Chinese Lunar calendar, which falls on October 6 this year.
Qiantang River is the biggest in Zhejiang Province, running from the west to Hangzhou Bay in the east. It serves as a river hinge, playing an important role in the water-transportation between the east and the west.
It is encircled by a group of economically booming cities including Shanghai, China's leading industrial and commercial hub, and Ningbo, one of China's leading port cities.
The extraordinary surging tide of the Qiantang River is a world-renowned natural wonder caused by the gravitational pull of the stars and planets. The centrifugal force produced by the rotation of the earth and by the peculiar bottleneck shape of Hangzhou Bay makes it easy for the tide to come in, but difficult for it to ebb.
The soaring tide of the Qiantang River is such a marvelous spectacle that only the Amazon River's surging tide rivals it! Annually, millions of people from both home and abroad flock there to watch the magnificent tide on the eighteenth day of the eighth lunar month (also around the Mid-Autumn Day).
When the surging tide comes, the water can rise up to a height of 30 feet and the noise it generates sounds like thunder, or thousands of horses running.
Various activities are held to celebrate the annual Tide - Watching Festival, according to local custom. In terms of its history, the custom of watching the bore tide has happened for more than 2000 years. It first appeared during the first century.
Then, it became popular in the Tang Dynasty (about 7th -13th century). Yangong town in Haijing 45 km (about 28 miles) from Hangzhou is the best place to watch the Qiantang Tide.
Over 250 dead in India floods
NEW DELHI: Indian flooding, described by officials as the worst in many decades, has killed some 250 people, mostly in the states of Karnataka and Andhra Pradesh. At least five million people are crammed in temporary government shelters.
Flood waters swamped millions of acres of cropland, including sugarcane plantations, prompting worries of a fall in sugar output in Karnataka, the country's third-biggest producer.
Traders also estimated the flooding would hit corn output by at least one million tonnes in Karnataka and Andhra Pradesh, which account for about 35 percent of India's total corn production.
Officials said 300,000 heavy sandbags were being used to fortify weakening embankments of the Krishna river that flows close to Vijayawada, a city of about a million people in Andhra Pradesh and an important trading center.
Rescue workers also moved more than 200,000 people living close to the river. An alert had been sounded in about 100 villages situated along the Krishna.
Relief officials used helicopters and boats to drop off rations and plastic sheets to hundreds of marooned villagers in Andhra Pradesh and Karnataka.
Officials and relief agencies said flood victims were now sheltered in over 1,200 temporary camps. They included about 2.5 million people from Karnataka and Andhra Pradesh who have lost their homes.
Flood waters swamped millions of acres of cropland, including sugarcane plantations, prompting worries of a fall in sugar output in Karnataka, the country's third-biggest producer.
Traders also estimated the flooding would hit corn output by at least one million tonnes in Karnataka and Andhra Pradesh, which account for about 35 percent of India's total corn production.
Officials said 300,000 heavy sandbags were being used to fortify weakening embankments of the Krishna river that flows close to Vijayawada, a city of about a million people in Andhra Pradesh and an important trading center.
Rescue workers also moved more than 200,000 people living close to the river. An alert had been sounded in about 100 villages situated along the Krishna.
Relief officials used helicopters and boats to drop off rations and plastic sheets to hundreds of marooned villagers in Andhra Pradesh and Karnataka.
Officials and relief agencies said flood victims were now sheltered in over 1,200 temporary camps. They included about 2.5 million people from Karnataka and Andhra Pradesh who have lost their homes.
IMF-World Bank meetings in Istanbul today
ISTANBUL: The core decision-makers of the global liberal economic system are starting major deliberations to create a blueprint to rid capitalism of its shackles and draw up a new roadmap in İstanbul today at the Annual Meetings of the Boards of Governors of the International Monetary Fund (IMF) and the World Bank Group.
The İstanbul gathering has been widely tagged by many pundits as the most important gathering in recent times as it offers the main platform for discussion for capitalism's top-notch actors
The event has brought together nearly 13,000 people, including central bankers, ministers of finance and development and private sector executives and academics. Among the basic topics to be dealt with in this year's occasion are the possible measures for a smooth escape from the hurdles of the crisis, a new world economic outlook, the eradication of poverty, economic development and the effectiveness of aid. IMF and World Bank officials will seek the views of its stakeholders on ways to strengthen the global financial system. Officials from both international organizations will also discuss the effectiveness of the loan programs by the IMF and the financial support of the World Bank.
The İstanbul gathering has been widely tagged by many pundits as the most important gathering in recent times as it offers the main platform for discussion for capitalism's top-notch actors
The event has brought together nearly 13,000 people, including central bankers, ministers of finance and development and private sector executives and academics. Among the basic topics to be dealt with in this year's occasion are the possible measures for a smooth escape from the hurdles of the crisis, a new world economic outlook, the eradication of poverty, economic development and the effectiveness of aid. IMF and World Bank officials will seek the views of its stakeholders on ways to strengthen the global financial system. Officials from both international organizations will also discuss the effectiveness of the loan programs by the IMF and the financial support of the World Bank.
US rivals 'plotting to end oil trading in dollars
LONDON: China, Russia, Japan and several of the most powerful Gulf States are actively plotting to end the decades-old practice of buying and selling oil in dollars, the UK daily claimed today.
The newspaper said the plan is for the US currency to be replaced for trading oil by a basket of currencies, including the Japanese yen, the Chinese yuan, the euro, gold and a new, single currency for the Gulf States.
If executed, the move would be a significant blow to the dollar's position as the premier world currency and would potentially threaten America's position as the world's leading economy.
According to the paper, gold could be used as a temporary replacement for the dollar while the new currency basket was implemented.
"Secret meetings have already been held by finance ministers and central bank governors in Russia, China, Japan and Brazil to work on the scheme, which will mean that oil will no longer be priced in dollars," it claimed.
"Chinese financial sources believe President Barack Obama is too busy fixing the US economy to concentrate on the extraordinary implications of the transition from the dollar in nine years' time. The current deadline for the currency transition is 2018," added.
The report was swiftly denied by several of the world's biggest oil producers. Muhammad al-Jasser, head of the Saudi Arabian central bank, claimed it was "absolutely incorrect", while Russian finance minister Dmitry Pankin and a Kuwaiti oil minister both denied discussing a move away from the dollar.
A source within the United Arab Emirates central bank also told Reuters that it would be sticking with the greenback.
The newspaper said the plan is for the US currency to be replaced for trading oil by a basket of currencies, including the Japanese yen, the Chinese yuan, the euro, gold and a new, single currency for the Gulf States.
If executed, the move would be a significant blow to the dollar's position as the premier world currency and would potentially threaten America's position as the world's leading economy.
According to the paper, gold could be used as a temporary replacement for the dollar while the new currency basket was implemented.
"Secret meetings have already been held by finance ministers and central bank governors in Russia, China, Japan and Brazil to work on the scheme, which will mean that oil will no longer be priced in dollars," it claimed.
"Chinese financial sources believe President Barack Obama is too busy fixing the US economy to concentrate on the extraordinary implications of the transition from the dollar in nine years' time. The current deadline for the currency transition is 2018," added.
The report was swiftly denied by several of the world's biggest oil producers. Muhammad al-Jasser, head of the Saudi Arabian central bank, claimed it was "absolutely incorrect", while Russian finance minister Dmitry Pankin and a Kuwaiti oil minister both denied discussing a move away from the dollar.
A source within the United Arab Emirates central bank also told Reuters that it would be sticking with the greenback.
Oil prices firm on back of weak dollar
LONDON: Crude oil prices rose on Tuesday as traders took their cue from the weak US currency, which was hit by a report that Gulf States have considered dropping the dollar for oil transactions.
A struggling greenback tends to boost crude because the dollar-denominated commodity becomes cheaper for foreign buyers holding stronger currencies.
New York's main contract, light sweet crude for November delivery gained 79 cents to 71.20 dollars a barrel. Brent North Sea crude for November delivery rose 77 cents to 68.81 dollars a barrel in London.
"Pressure on the dollar comes from reports in the London daily The Independent," said PVM oil market analyst Tamas Varga.
The dollar's future as the world's top currency was thrown into doubt on Tuesday as The Independent said Arab states had launched secret moves with China and Russia to stop using the greenback for oil trading.
Arab states have launched moves with China, Russia, Japan and France to stop using the dollar for oil trades, added the paper.
"Such a step, although dismissed almost immediately by Saudi Arabia, Russia, the UAE and Algeria, obviously weakens the dollar, which should be supportive for oil prices -- in dollar terms that is," said analyst Varga.
Kuwaiti Oil Minister Sheikh Ahmad Abdullah al-Sabah also denied the report.
"Not at all," Sheikh Ahmad said when asked to comment on the report. "At our level, no. We have never discussed or proposed this."
He said he was "unaware" of any Gulf state making such a proposal.
Sheikh Ahmad also ruled out any OPEC production increase this year and predicted oil prices would remain at 60-80 dollars a barrel.
"This year no way. It's not possible," the minister told reporters when asked if the Organization of Petroleum Exporting Countries (OPEC) could decide to raise output at a ministerial meeting in December.
A struggling greenback tends to boost crude because the dollar-denominated commodity becomes cheaper for foreign buyers holding stronger currencies.
New York's main contract, light sweet crude for November delivery gained 79 cents to 71.20 dollars a barrel. Brent North Sea crude for November delivery rose 77 cents to 68.81 dollars a barrel in London.
"Pressure on the dollar comes from reports in the London daily The Independent," said PVM oil market analyst Tamas Varga.
The dollar's future as the world's top currency was thrown into doubt on Tuesday as The Independent said Arab states had launched secret moves with China and Russia to stop using the greenback for oil trading.
Arab states have launched moves with China, Russia, Japan and France to stop using the dollar for oil trades, added the paper.
"Such a step, although dismissed almost immediately by Saudi Arabia, Russia, the UAE and Algeria, obviously weakens the dollar, which should be supportive for oil prices -- in dollar terms that is," said analyst Varga.
Kuwaiti Oil Minister Sheikh Ahmad Abdullah al-Sabah also denied the report.
"Not at all," Sheikh Ahmad said when asked to comment on the report. "At our level, no. We have never discussed or proposed this."
He said he was "unaware" of any Gulf state making such a proposal.
Sheikh Ahmad also ruled out any OPEC production increase this year and predicted oil prices would remain at 60-80 dollars a barrel.
"This year no way. It's not possible," the minister told reporters when asked if the Organization of Petroleum Exporting Countries (OPEC) could decide to raise output at a ministerial meeting in December.
IMF loans could worsen crisis in many countries
NEW YORK: International Monetary Fund (IMF) loans could worsen the crisis in many countries, an independent think tank said in a report which the IMF dismissed as "seriously misleading."
The Center for Economic and Policy Research (CEPR) said that the IMF was promoting spending cuts that could exacerbate the economic downturn in 31 out of the 41 countries with current IMF loan agreements, informs AFP/LETA.
"More than a decade after the Asian economic crisis brought world attention to major IMF policy mistakes, the IMF is still making similar mistakes in many countries," Mark Weisbrot, an economist at CEPR, said in a statement. "The IMF supports fiscal stimulus and expansionary policies in the rich countries, but has a much different attitude toward low-and-middle income countries," he added.
The report called for the IMF to "re-examine criteria, assumptions and economic analysis that it uses to prescribe macroeconomic policies in developing countries."
On the other hand, IMF spokesman Bill Murray dismissed the report's findings.
The Center for Economic and Policy Research (CEPR) said that the IMF was promoting spending cuts that could exacerbate the economic downturn in 31 out of the 41 countries with current IMF loan agreements, informs AFP/LETA.
"More than a decade after the Asian economic crisis brought world attention to major IMF policy mistakes, the IMF is still making similar mistakes in many countries," Mark Weisbrot, an economist at CEPR, said in a statement. "The IMF supports fiscal stimulus and expansionary policies in the rich countries, but has a much different attitude toward low-and-middle income countries," he added.
The report called for the IMF to "re-examine criteria, assumptions and economic analysis that it uses to prescribe macroeconomic policies in developing countries."
On the other hand, IMF spokesman Bill Murray dismissed the report's findings.
Thursday, October 1, 2009
Ex-US military officials seek Gitmo’s closure
Thursday, October 01, 2009
WASHINGTON: Top former US military officials are lobbying US President Barack Obama to advance plans to close the controversial military prison at Guantanamo Bay, Cuba. Working with the human rights group Human Rights First, more than a dozen former US military officials are meeting this week top Obama officials including Attorney-General Holder, Pentagon officials and lawmakers to press them to quickly close the Guantanamo prison, which has been the target of international condemnation.
The officials on Tuesday sought to counter arguments made by critics of the closure plan.
“It’s the use of fear that I find so disturbing,” retired Army General David Maddox told Reuters, arguing no terrorism suspects or convicts have escaped from jail and that the detainees would not be released into the United States after they served their sentences.
Obama pledged to close the facility by Jan 22, 2010, but has run into political, legal and diplomatic obstacles which could delay the closure. That has allowed a fierce debate to fill the breach as the administration tries to tackle those issues.
The administration is near selecting a place inside the United States to move the terrorism suspects from Guantanamo, some of whom will face charges in military tribunals or US criminal courts, but that has sparked several concerns.
Some congressional Republicans question whether US prisons can accommodate terrorism suspects and warn that their presence in prisons in the United States could cause attacks.
WASHINGTON: Top former US military officials are lobbying US President Barack Obama to advance plans to close the controversial military prison at Guantanamo Bay, Cuba. Working with the human rights group Human Rights First, more than a dozen former US military officials are meeting this week top Obama officials including Attorney-General Holder, Pentagon officials and lawmakers to press them to quickly close the Guantanamo prison, which has been the target of international condemnation.
The officials on Tuesday sought to counter arguments made by critics of the closure plan.
“It’s the use of fear that I find so disturbing,” retired Army General David Maddox told Reuters, arguing no terrorism suspects or convicts have escaped from jail and that the detainees would not be released into the United States after they served their sentences.
Obama pledged to close the facility by Jan 22, 2010, but has run into political, legal and diplomatic obstacles which could delay the closure. That has allowed a fierce debate to fill the breach as the administration tries to tackle those issues.
The administration is near selecting a place inside the United States to move the terrorism suspects from Guantanamo, some of whom will face charges in military tribunals or US criminal courts, but that has sparked several concerns.
Some congressional Republicans question whether US prisons can accommodate terrorism suspects and warn that their presence in prisons in the United States could cause attacks.
Mao’s vision leads China still today
BEIJING: Sixty years ago Mao Zedong stood before a sea of people atop Tiananmen Gate proclaiming, in his high-pitched Hunan dialect, the founding of the People's Republic of China and that the "Chinese people have stood up!" The moment was marked with pride and hope. The communists' victory had vanquished the Nationalist regime, withstood the vicious onslaught of the Japanese invasion and overturned the century of foreign encroachment on China's territory. Moreover, Mao and the Chinese Communist Party (CCP) came to power without significant external support — theirs was largely a homegrown revolution.
Mao brought a vision for China that has resonated from the 19th century Qing dynasty reformers to this day: to regain China's fu qiang (wealth and power), dignity, international respect and territorial integrity. In this regard, Mao and the CCP positioned themselves squarely with a deep yearning among Chinese — thus earning their loyalty and the party's legitimacy. His successors have not wavered from this singular vision and mission.
As the People's Republic of China commemorates its 60th anniversary, it seemingly has much to celebrate. China is the world's most populous and industrious nation, is the world's third largest economy and trading nation, has become a global innovator in science and technology, and is building a world-class university system. It has an increasingly modern military and commands diplomatic respect. It is at peace with its neighbors and all major powers. Its hybrid model of quasi-state capitalism and semidemocratic authoritarianism — sometimes dubbed the "Beijing Consensus" — has attracted attention across the developing world.
This growing soft power of China was strengthened by the 2008 Olympics extravaganza, and the Shanghai Expo next year will similarly dazzle. The 60th anniversary celebration in Beijing on Oct. 1 will impress, if not frighten, the world with an arresting display of military hardware and goose-stepping soldiers. Less visible is the fact that China is the first major economy to recover from the global recession and, indeed, is leading the world out of it.
Known around the world as Chairman Mao, Mao Zedong led the bloody two decade-long revolution that overthrew Chiang Kai-shek’s Nationalists and established the People’s Republic of China in 1949. Mao retained an iron grip on power right up to his death in 1976, and his embalmed body continues to lie in state in a mausoleum on Tiananmen Square in the heart of the capital, Beijing.
Mao Zedong had a notoriously chaotic personal life, marrying four times and siring nine children, including a daughter by his last wife, Jiang Qing. His second wife, Mao Xinyu’s grandmother, was executed by the Nationalists in 1930.
While Mao Zedong remains venerated in China, his offspring have played little role in affairs of state. First son Mao Anying was killed in action during the Korean War and Mao Anqing is believed to have suffered from mental illness for most of his adult life.
In recent years, Mao Xinyu has become best known for his considerable girth, and a photo of him taken on this year’s Sept. 9 commemoration of Mao Zedong’s death shows him bearing a strong resemblence to his famously pudgy grandfather.
Son Mao Dongdong, Mao Zedong’s only great-grandson, was born on the 110th anniversary of Mao Zedong’s birthday in 2003.
Mao brought a vision for China that has resonated from the 19th century Qing dynasty reformers to this day: to regain China's fu qiang (wealth and power), dignity, international respect and territorial integrity. In this regard, Mao and the CCP positioned themselves squarely with a deep yearning among Chinese — thus earning their loyalty and the party's legitimacy. His successors have not wavered from this singular vision and mission.
As the People's Republic of China commemorates its 60th anniversary, it seemingly has much to celebrate. China is the world's most populous and industrious nation, is the world's third largest economy and trading nation, has become a global innovator in science and technology, and is building a world-class university system. It has an increasingly modern military and commands diplomatic respect. It is at peace with its neighbors and all major powers. Its hybrid model of quasi-state capitalism and semidemocratic authoritarianism — sometimes dubbed the "Beijing Consensus" — has attracted attention across the developing world.
This growing soft power of China was strengthened by the 2008 Olympics extravaganza, and the Shanghai Expo next year will similarly dazzle. The 60th anniversary celebration in Beijing on Oct. 1 will impress, if not frighten, the world with an arresting display of military hardware and goose-stepping soldiers. Less visible is the fact that China is the first major economy to recover from the global recession and, indeed, is leading the world out of it.
Known around the world as Chairman Mao, Mao Zedong led the bloody two decade-long revolution that overthrew Chiang Kai-shek’s Nationalists and established the People’s Republic of China in 1949. Mao retained an iron grip on power right up to his death in 1976, and his embalmed body continues to lie in state in a mausoleum on Tiananmen Square in the heart of the capital, Beijing.
Mao Zedong had a notoriously chaotic personal life, marrying four times and siring nine children, including a daughter by his last wife, Jiang Qing. His second wife, Mao Xinyu’s grandmother, was executed by the Nationalists in 1930.
While Mao Zedong remains venerated in China, his offspring have played little role in affairs of state. First son Mao Anying was killed in action during the Korean War and Mao Anqing is believed to have suffered from mental illness for most of his adult life.
In recent years, Mao Xinyu has become best known for his considerable girth, and a photo of him taken on this year’s Sept. 9 commemoration of Mao Zedong’s death shows him bearing a strong resemblence to his famously pudgy grandfather.
Son Mao Dongdong, Mao Zedong’s only great-grandson, was born on the 110th anniversary of Mao Zedong’s birthday in 2003.
Quake brings down houses on Indonesia's Sumatra
Updated at: 1751 PST, Wednesday, September 30, 2009
PADANG: A strong earthquake of magnitude 7.9 struck off the city of Padang on the coast of Indonesia's Sumatra island on Wednesday, damaging houses, bringing down bridges and starting fires, a witness said.
The quake was felt around the region, with some high-rise buildings in the neighbouring city state of Singapore, 275 miles (440 km) away, evacuating their staff.
A regional tsunami warning was issued, the Pacific Tsunami Warning Centre and Japan's meteorological agency said. It was unclear if there were any casualties.
"Hundreds of houses have been damaged along the road. There are some fires, bridges are cut and there is extreme panic here maybe because water pipes are broken and there is flooding in the streets," said a witness in the city.
Phone lines were down.
The depth of the tsunami was measured at 85 km, the United States Geological Survey said.
Indonesia is situated in a belt of intense seismic activity known as the "Pacific Ring of Fire". The U.S. Geological Survey put the magnitude of the quake at 7.9.
A series of tsunamis earlier smashed into the Pacific island nations of American and Western Samoa killing possibly more than 100 people, some washed out to sea, destroying villages and injuring hundreds, officials said on Wednesday.
Padang, the capital of Indonesia's West Sumatra province, sits on one of the world's most active fault lines along the "Ring of Fire" where the Indo-Australia plate grinds against the Eurasia plate to create regular earth tremors and sometimes quakes.
A 9.15 magnitude quake, with its epicentre roughly 600 km (373 miles) northwest of Padang, caused the 2004 tsunami which killed 232,000 people in Indonesia's Aceh province, Thailand, Sri Lanka, India, and other countries across the Indian Ocean.
Geologists have long said Padang, with a population of 900,000, may one day be destroyed by a huge earthquake because of its location.
"Padang sits right in front of the area with the greatest potential for an 8.9 magnitude earthquake," said Danny Hilman Natawidjaja, a geologist at the Indonesian Science Institute, earlier this year.
"The entire city could drown," in a tsunami triggered by such a quake, he warned.
PADANG: A strong earthquake of magnitude 7.9 struck off the city of Padang on the coast of Indonesia's Sumatra island on Wednesday, damaging houses, bringing down bridges and starting fires, a witness said.
The quake was felt around the region, with some high-rise buildings in the neighbouring city state of Singapore, 275 miles (440 km) away, evacuating their staff.
A regional tsunami warning was issued, the Pacific Tsunami Warning Centre and Japan's meteorological agency said. It was unclear if there were any casualties.
"Hundreds of houses have been damaged along the road. There are some fires, bridges are cut and there is extreme panic here maybe because water pipes are broken and there is flooding in the streets," said a witness in the city.
Phone lines were down.
The depth of the tsunami was measured at 85 km, the United States Geological Survey said.
Indonesia is situated in a belt of intense seismic activity known as the "Pacific Ring of Fire". The U.S. Geological Survey put the magnitude of the quake at 7.9.
A series of tsunamis earlier smashed into the Pacific island nations of American and Western Samoa killing possibly more than 100 people, some washed out to sea, destroying villages and injuring hundreds, officials said on Wednesday.
Padang, the capital of Indonesia's West Sumatra province, sits on one of the world's most active fault lines along the "Ring of Fire" where the Indo-Australia plate grinds against the Eurasia plate to create regular earth tremors and sometimes quakes.
A 9.15 magnitude quake, with its epicentre roughly 600 km (373 miles) northwest of Padang, caused the 2004 tsunami which killed 232,000 people in Indonesia's Aceh province, Thailand, Sri Lanka, India, and other countries across the Indian Ocean.
Geologists have long said Padang, with a population of 900,000, may one day be destroyed by a huge earthquake because of its location.
"Padang sits right in front of the area with the greatest potential for an 8.9 magnitude earthquake," said Danny Hilman Natawidjaja, a geologist at the Indonesian Science Institute, earlier this year.
"The entire city could drown," in a tsunami triggered by such a quake, he warned.
Israel refuses Goldstone report
OCCUPIED JERUSALEM: The Israeli government says it is appalled by the latest United Nations commission report which claims both sides in the Gaza conflict committed war crimes.
A fact-finding mission, headed by South African judge Richard Goldstone, has produced a 574-page report which concludes: "Israel committed actions amounting to war crimes, possibly crimes against humanity.”
The report added: “The Israeli military operation was directed at the people of Gaza as a whole, in furtherance of an overall and continuing policy aimed at punishing the Gaza population, and in a deliberate policy of disproportionate force aimed at the civilian population."
The report also described Palestinian rocket attacks into southern Israel as war crimes.
Israel refused to co-operate with the mission because of its “one-sided mandate”.
The members of the UN committee investigating the conflict made two visits to Gaza in June and July but were refused access to Israel and the West Bank.
They also held two sets of public hearings, in Gaza City and in Geneva, where 40 witnesses, victims and war experts gave testimony.
An Israeli government spokesman said they did not consider the report to be accurate.
The spokesman said in a statement: "Both the mandate of the mission and the resolution establishing it prejudged the outcome of any investigation, gave legitimacy to the Hamas terrorist organisation and disregarded the deliberate Hamas strategy of using Palestinian civilians as cover for launching terrorist attacks."
"Notwithstanding its reservations, Israel will read the report carefully -- as it does with all reports prepared by international and national organizations. Israel is committed to acting fully in accordance with international law and to examining any allegations of wrongdoing by its own forces."
The report will be formally presented to the UN Human Rights Council on September 29.
A fact-finding mission, headed by South African judge Richard Goldstone, has produced a 574-page report which concludes: "Israel committed actions amounting to war crimes, possibly crimes against humanity.”
The report added: “The Israeli military operation was directed at the people of Gaza as a whole, in furtherance of an overall and continuing policy aimed at punishing the Gaza population, and in a deliberate policy of disproportionate force aimed at the civilian population."
The report also described Palestinian rocket attacks into southern Israel as war crimes.
Israel refused to co-operate with the mission because of its “one-sided mandate”.
The members of the UN committee investigating the conflict made two visits to Gaza in June and July but were refused access to Israel and the West Bank.
They also held two sets of public hearings, in Gaza City and in Geneva, where 40 witnesses, victims and war experts gave testimony.
An Israeli government spokesman said they did not consider the report to be accurate.
The spokesman said in a statement: "Both the mandate of the mission and the resolution establishing it prejudged the outcome of any investigation, gave legitimacy to the Hamas terrorist organisation and disregarded the deliberate Hamas strategy of using Palestinian civilians as cover for launching terrorist attacks."
"Notwithstanding its reservations, Israel will read the report carefully -- as it does with all reports prepared by international and national organizations. Israel is committed to acting fully in accordance with international law and to examining any allegations of wrongdoing by its own forces."
The report will be formally presented to the UN Human Rights Council on September 29.
Communist China marks its 60th year
BEIJING: Tanks and other heavy weaponry rumbled across Beijing behind goose-stepping troops as China celebrated 60 years of communist rule Thursday with its biggest-ever military review — a symbol of its rapidly expanding global might.
The elaborate ceremony for the founding of the People's Republic unfolded on national television but behind tight security that excluded ordinary people from getting near the parade route through Tiananmen Square.
Precisely choreographed, the two-and-half-hour event hewed closely to tradition. President Hu Jintao, in a Mao jacket instead of a business suit, rode in an open top Red Flag limousine to review the thousands of troops. A parade of kitschy floats, flanked by more than 100,000 people, lauded the communist revolution and the Beijing Olympics. Even the weather cooperated, with aggressive cloud-seeding by the government having brought overnight showers to disperse smog and bring in blue skies.
The biggest difference was the weaponry, more than had been shown before and most of which was domestically produced: dozens of fighter jets and hundreds of tanks, artillery and trucks carrying long-range, nuclear-capable missiles.
"On this joyful and solemn occasion, all the peoples across the nation feel extremely proud for the progress and development of the motherland and have full confidence in the bright prospects for the great rejuvenation of the Chinese nation," Hu said in a short speech standing atop Tiananmen gate with the rest of the collective leadership looking on.
Behind the celebrations is the tremendous change of fortunes China has experienced. China has gone from poor and internationally weak when the communists took over on Oct. 1, 1949, to the world's third-largest economy and new power whose input the U.S. superpower seeks to solve the global economic crisis and Iran's nuclear challenge.
Unmentioned during the event and crescendo of state media hype in recent weeks were the ruinous campaigns of revolutionary leader Mao Zedong that left tens of millions dead — as well as the country's current challenges: a widening gap between rich and poor, rampant corruption, severe pollution and ethnic uprisings in the western areas of Tibet and Xinjiang.
The spectacle seemed to follow on the stunning opening ceremony for the Beijing Olympics a year ago. A gala and fireworks were planned late Thursday for Tiananmen Square. While the Olympics were meant to mark China's arrival on the world stage, the parade squarely aimed to please a domestic audience.
Even the uninvited seemed excited, gathering on side streets to get a glimpse of the passing parade or watching from home.
"China's power makes us proud. Over the span of 60 years China has developed so rapidly," said retiree Wang Shumin, standing in a back alley watching the parade on TV through a shop window. "China is now powerful and has a position on the world stage."
Standing nearby, Liu Shuping praised the blue skies: "Even the weather has paid attention today."
Police maintained a visible presence, clearly worried that crowds might get out of hand, either from overexuberance or to protest the grievances that constantly simmer in Chinese society. The large-screen television outside the Beijing Railway Station that normally streams programs throughout the day was switched off.
Still, the thousand or so people cheered "long live China" when they heard Hu's voice blaring from loudspeakers two blocks away as he reviewed the troops. Police shouted "calm down" and "don't yell." They led away one well-dressed woman waving a small flag after she crossed the police line.
Despite the slick TV production and flashy new weaponry, the display of firepower and patriotic rhetoric were old-style and likely to prove unsettling to some countries and domestic critics.
"This is not the end of an era," said Minxin Pei, a professor of government at Claremont McKenna College in California. Rather, Pei said, the event continues a strategy deployed since the military crushed the Tiananmen democracy movement in 1989: "a one-party state that uses its economic success to bolster its legitimacy in any way conceivable, including a Soviet-style military parade."
Some Chinese grumbled that the security dampened what could have been a more public celebration and showed the government's distrust of people.
"In past years, back in the day, we were able to participate in the parades or at least stand over there and watch from the side of the streets," said one man, who only gave his English name, Winston Liu, as he milled about a side street a block from the parade route. "Now it is really strictly controlled. I guess it is for safety concerns."
In Hong Kong, which has Western-style civil liberties as part of its special semiautonomous status, hundreds of people protested Thursday, denouncing China's human rights record during 60 years of communist rule.
About 200 people marched through the downtown financial district, chanting, "We want human rights. We don't want a sanitized National Day."
The elaborate ceremony for the founding of the People's Republic unfolded on national television but behind tight security that excluded ordinary people from getting near the parade route through Tiananmen Square.
Precisely choreographed, the two-and-half-hour event hewed closely to tradition. President Hu Jintao, in a Mao jacket instead of a business suit, rode in an open top Red Flag limousine to review the thousands of troops. A parade of kitschy floats, flanked by more than 100,000 people, lauded the communist revolution and the Beijing Olympics. Even the weather cooperated, with aggressive cloud-seeding by the government having brought overnight showers to disperse smog and bring in blue skies.
The biggest difference was the weaponry, more than had been shown before and most of which was domestically produced: dozens of fighter jets and hundreds of tanks, artillery and trucks carrying long-range, nuclear-capable missiles.
"On this joyful and solemn occasion, all the peoples across the nation feel extremely proud for the progress and development of the motherland and have full confidence in the bright prospects for the great rejuvenation of the Chinese nation," Hu said in a short speech standing atop Tiananmen gate with the rest of the collective leadership looking on.
Behind the celebrations is the tremendous change of fortunes China has experienced. China has gone from poor and internationally weak when the communists took over on Oct. 1, 1949, to the world's third-largest economy and new power whose input the U.S. superpower seeks to solve the global economic crisis and Iran's nuclear challenge.
Unmentioned during the event and crescendo of state media hype in recent weeks were the ruinous campaigns of revolutionary leader Mao Zedong that left tens of millions dead — as well as the country's current challenges: a widening gap between rich and poor, rampant corruption, severe pollution and ethnic uprisings in the western areas of Tibet and Xinjiang.
The spectacle seemed to follow on the stunning opening ceremony for the Beijing Olympics a year ago. A gala and fireworks were planned late Thursday for Tiananmen Square. While the Olympics were meant to mark China's arrival on the world stage, the parade squarely aimed to please a domestic audience.
Even the uninvited seemed excited, gathering on side streets to get a glimpse of the passing parade or watching from home.
"China's power makes us proud. Over the span of 60 years China has developed so rapidly," said retiree Wang Shumin, standing in a back alley watching the parade on TV through a shop window. "China is now powerful and has a position on the world stage."
Standing nearby, Liu Shuping praised the blue skies: "Even the weather has paid attention today."
Police maintained a visible presence, clearly worried that crowds might get out of hand, either from overexuberance or to protest the grievances that constantly simmer in Chinese society. The large-screen television outside the Beijing Railway Station that normally streams programs throughout the day was switched off.
Still, the thousand or so people cheered "long live China" when they heard Hu's voice blaring from loudspeakers two blocks away as he reviewed the troops. Police shouted "calm down" and "don't yell." They led away one well-dressed woman waving a small flag after she crossed the police line.
Despite the slick TV production and flashy new weaponry, the display of firepower and patriotic rhetoric were old-style and likely to prove unsettling to some countries and domestic critics.
"This is not the end of an era," said Minxin Pei, a professor of government at Claremont McKenna College in California. Rather, Pei said, the event continues a strategy deployed since the military crushed the Tiananmen democracy movement in 1989: "a one-party state that uses its economic success to bolster its legitimacy in any way conceivable, including a Soviet-style military parade."
Some Chinese grumbled that the security dampened what could have been a more public celebration and showed the government's distrust of people.
"In past years, back in the day, we were able to participate in the parades or at least stand over there and watch from the side of the streets," said one man, who only gave his English name, Winston Liu, as he milled about a side street a block from the parade route. "Now it is really strictly controlled. I guess it is for safety concerns."
In Hong Kong, which has Western-style civil liberties as part of its special semiautonomous status, hundreds of people protested Thursday, denouncing China's human rights record during 60 years of communist rule.
About 200 people marched through the downtown financial district, chanting, "We want human rights. We don't want a sanitized National Day."
Oil falls below $70 after surging overnight
SINGAPORE: Oil prices fell below $70 a barrel Thursday in Asia after surging overnight on signs U.S. gasoline demand may be improving.
Benchmark crude for November deliver was down 72 cents at $69.89 by midday in Singapore in electronic trading on the New York Mercantile Exchange.
The contract jumped $3.90 to settle at $70.61 on Wednesday after the Energy Information Administration said U.S. gasoline stockpiles unexpectedly dropped 1.6 million barrels last week from the previous week.
Analysts had expected a jump of 1.2 million barrels, according to a survey by Platts, the energy information arm of McGraw-Hill Cos.
The EIA also said demand for gasoline over the four weeks ended Sept. 25 was 5.4 percent higher than last year.
"Gasoline demand continues to improve," Barclays Capital said in a report. "We see the global market adjustment as remaining on track for a slow and steady soft landing for both prices and quantities."
Barclays said it expects crude to average $76 a barrel in the fourth quarter and $85 next year.
Other inventory data was less encouraging. Crude supplies grew more than expected last week, according to the government report, and they have now swelled to 11.4 percent above what they were last year.
In London, Brent crude fell 65 cents to $68.42 the ICE Futures exchange.
Benchmark crude for November deliver was down 72 cents at $69.89 by midday in Singapore in electronic trading on the New York Mercantile Exchange.
The contract jumped $3.90 to settle at $70.61 on Wednesday after the Energy Information Administration said U.S. gasoline stockpiles unexpectedly dropped 1.6 million barrels last week from the previous week.
Analysts had expected a jump of 1.2 million barrels, according to a survey by Platts, the energy information arm of McGraw-Hill Cos.
The EIA also said demand for gasoline over the four weeks ended Sept. 25 was 5.4 percent higher than last year.
"Gasoline demand continues to improve," Barclays Capital said in a report. "We see the global market adjustment as remaining on track for a slow and steady soft landing for both prices and quantities."
Barclays said it expects crude to average $76 a barrel in the fourth quarter and $85 next year.
Other inventory data was less encouraging. Crude supplies grew more than expected last week, according to the government report, and they have now swelled to 11.4 percent above what they were last year.
In London, Brent crude fell 65 cents to $68.42 the ICE Futures exchange.
No raw material, production process at PSM suspended
KARACHI: It is the first time in the history of Pakistan Steel Mills (PSM) that all the production sectors including blast furnaces have been shut down due to non-availability of the raw material, Geo News reported Thursday.
According to PSM sources, the crisis of raw material once again intensifies at the mills, as the reserves of fine iron ore depleted last year; while, coke also exhausted as the coal was not purchased on time. Accordingly, non-availability of both coke and iron ore caused the operation of PSM to come to halt.
According to sources, steel-making plant has also been closed.
Earlier in July of the current year, blast furnaces had to be closed owing to the raw material depletion.
The PSM finance department told that the administration has dispatched a letter to the Ministry of Industry and Production to summarily announce a bail-out package worth Rs10 billion; or, the plant will be shut down.
Meantime, the PSM officials said the plant has not been closed completely, only the system of water and compressor is being repaired.
According to PSM sources, the crisis of raw material once again intensifies at the mills, as the reserves of fine iron ore depleted last year; while, coke also exhausted as the coal was not purchased on time. Accordingly, non-availability of both coke and iron ore caused the operation of PSM to come to halt.
According to sources, steel-making plant has also been closed.
Earlier in July of the current year, blast furnaces had to be closed owing to the raw material depletion.
The PSM finance department told that the administration has dispatched a letter to the Ministry of Industry and Production to summarily announce a bail-out package worth Rs10 billion; or, the plant will be shut down.
Meantime, the PSM officials said the plant has not been closed completely, only the system of water and compressor is being repaired.
Wednesday, September 9, 2009
KSE introduces 30-index based circuit-breakers
Karachi Stock Exchange (KSE) board introduced circuit-breakers on the basis of 30-index, Geo News reported Tuesday.
According to a press released issued on the official web site of KSE, the KSE board has approved in principal the introduction of Index Based Market Halts (based on KSE 30-share index) and widening of the scrip level circuit breakers.
The notice also mentioned that to facilitate a better understanding on the above-mentioned subject and explain the modalities to introduce the halts, a detailed presentation will be held for the members today (Tuesday) in the KSE premises.
However, senior member and director on board of KSE Yaseen Lakhani refuted that any such approval has been given and the board would consider it on its next meeting scheduled to be held today.
“This is wrong to announce before the approval of introduction of market halts and scrip circuit breakers,” Lakhani said and added that it was informally discussed few days back that does not mean that the board gave approval on these issues.
The presentation will highlight the difference between scrap-level circuit-breakers and halt based on index, the disadvantages of the international practice; however, the difference would be underscored between the old and new methods of receiving margin from member clients.
The presentation would be organized on Thursday (September 10) by the KSE where all the KSE members have been invited to attend
According to a press released issued on the official web site of KSE, the KSE board has approved in principal the introduction of Index Based Market Halts (based on KSE 30-share index) and widening of the scrip level circuit breakers.
The notice also mentioned that to facilitate a better understanding on the above-mentioned subject and explain the modalities to introduce the halts, a detailed presentation will be held for the members today (Tuesday) in the KSE premises.
However, senior member and director on board of KSE Yaseen Lakhani refuted that any such approval has been given and the board would consider it on its next meeting scheduled to be held today.
“This is wrong to announce before the approval of introduction of market halts and scrip circuit breakers,” Lakhani said and added that it was informally discussed few days back that does not mean that the board gave approval on these issues.
The presentation will highlight the difference between scrap-level circuit-breakers and halt based on index, the disadvantages of the international practice; however, the difference would be underscored between the old and new methods of receiving margin from member clients.
The presentation would be organized on Thursday (September 10) by the KSE where all the KSE members have been invited to attend
Fitch downgrades four Pakistan banks
Fitch Ratings affirmed and simultaneously withdrawn the ratings of the four Pakistani banks here Monday mainly owing to limited investor interest.
As per Fitch press statement issued here, the four banks include National Bank of Pakistan (NBP), MCB Bank Limited (MCB), Habib Bank Limited (HBL), and United Bank Limited (UBL) to Individual D, Support 5, Individual D, Support 5, Individual D/E, Support 5, and Individual D/E, Support 5 respectively.
The statement further stated that these banks face significant asset quality challenges over the medium-term which may exert downward pressure on their Individual ratings. However, it added, their reasonable profitability and capitalisation currently protects this downside.
The Support ratings for all these banks are at '5', which is the lowest possible of Fitch's Support rating scale due to the Pakistan sovereign's weak fiscal position, it pointed out.
The statement went on to say that the Fitch will no longer provide ratings or analytical coverage of the abovementioned banks.
As per Fitch press statement issued here, the four banks include National Bank of Pakistan (NBP), MCB Bank Limited (MCB), Habib Bank Limited (HBL), and United Bank Limited (UBL) to Individual D, Support 5, Individual D, Support 5, Individual D/E, Support 5, and Individual D/E, Support 5 respectively.
The statement further stated that these banks face significant asset quality challenges over the medium-term which may exert downward pressure on their Individual ratings. However, it added, their reasonable profitability and capitalisation currently protects this downside.
The Support ratings for all these banks are at '5', which is the lowest possible of Fitch's Support rating scale due to the Pakistan sovereign's weak fiscal position, it pointed out.
The statement went on to say that the Fitch will no longer provide ratings or analytical coverage of the abovementioned banks.
KSE bull runs jump over 9,000 barriers
KARACHI: Karachi Stock Exchange (KSE), after two consecutive days of nominal corrections, once again crossed over the 9000 psychological barriers.
The market today opened with 38 points plus undaunted by the last two days of some profit taking due to over buying and later this pace accelerated with the local and foreign purchasers’ buying spree, which saw the index once again breaching 9000 psychological barriers.
Oil and gas, cement, banking fertilizer and textile sectors’ shares remained attractive today, which hitting fours and sixes breached the 9000 marks. Analysts believed that the trading could further pick up due to the foreign investors’ interest in the stock market.
The market today opened with 38 points plus undaunted by the last two days of some profit taking due to over buying and later this pace accelerated with the local and foreign purchasers’ buying spree, which saw the index once again breaching 9000 psychological barriers.
Oil and gas, cement, banking fertilizer and textile sectors’ shares remained attractive today, which hitting fours and sixes breached the 9000 marks. Analysts believed that the trading could further pick up due to the foreign investors’ interest in the stock market.
FOREX History
On FOREX markets buying and selling currency is made on a speculative basis by most traders. It is the same like stock market, when traders buy (stocks) currencies holding to get stronger and sell when will get weaker. Most of this trading is doing by investment companies, hedge fund, banks and brokerages. In last couple years the currency trading became open for individual investor with small financial steak. Companies use the currency market for purchasing some amount of foreign currency for there obligations and commitments with other international companies.
The short retrospective for foreign exchange market life will be:
Currency markets were relatively quite until World War 1. Speculation ever made was unknown and was with negative sentiment by institutions. After war ending foreign exchange markets became volatile and shows the first signs of speculative activity, but any further changes and progress was interrupt with great depression. The forex markets were quiet and stable during World War II, when the market started with many important changes and improvements.A Guide For The Forex
For the Forex currency trading beginner a trade can be a little confusing until you break it down and come to grips with some of the trading terminology.
The purpose of any Forex trade is to swap one currency for another in the belief that the market will move and prices change such that the currency that you buy rises in value in relation to the currency which you sell.
The first important point is that each trade involves two currencies - the currency which you buy and the currency you sell. This gives us our first two important trading terms - the long position and the short position.
You take a long position when you buy a currency in the belief that it will rise in value and that you will able to sell at a profit.
If you sell a currency in the belief that it will fall in value you take a short position and hope to make a profit by buying it back again once the price has fallen.
The next important concept is that of the open and closed position. When you take a long position and buy a currency in the expectation that it will rise in value you open a position. When you later sell that currency to take you profit you close the position. The same is true when you take a short position and open that position by selling a currency in the expectation that it will fall in price and later close the position when you buy the currency back at the lower price.
Note: How does day trading work? You will often hear the term ‘day trading’ used and this confuses a lot of newcomers to the world of investing. When applied to forex trading, day trading simply means short-term trading effected by opening and closing trading positions within the same trading day, rather than running a trade over an extended period of time.
Cancer-Handy Facts
One in three of us will be diagnosed with cancer during our life.
The disease tends to affect older people - but can strike at any time.
Excluding certain skin cancers, there were almost 290,000 new cases of the disease in 2005.
Some cancer, such as breast, are becoming more common, while new cases of lung cancer are expected to fall away due to the drop in the number of smokers.
However, while the overall number of new cancers is not falling, the good news is that successful treatment rates for many of the most common types are improving rapidly.
BBC News has produced, in conjunction with Cancer Research UK, a guide to some of the most common forms of cancer and the treatments used to tackle them.
Save on Auto Insurance in a Bad Economy
Are you running out of money because of the downturn in the economy? If so, you need to make sure that you save as much as you can on recurring expenses. This is particularly true when it comes to your auto insurance policy. Fortunately, there are ways that you can save on this expense if you know what you are doing. It may mean that you have to make some changes, but this is not necessarily a bad thing. Change can be good if you know what you are doing.
Is your auto insurance company charging you too much for coverage? If you answered yes to this question you need to consider if making a change would save you any money. You can do this by receiving quotes from other companies. Soon enough you will realize that your company is either offering a good deal or they are charging you too much. If you can change providers and save money, go for it.
You can also save money by doing away with particular coverage levels. For instance, why do you need a $250 deductible? By increasing this to $500 or more you can definitely lower the cost of your auto insurance policy. For most consumers this is the easiest way to cut costs.
There are many ways to save money in a bad economy. You don't necessarily have to turn to change your auto insurance, but this is definitely a good way to find more money in your pocket at the end of the month. Start off by receiving quotes from other companies, and then move onto considering your coverage. Both of these changes will allow you to realize that saving money on auto insurance is possible; even if the economy is making it difficult.
What Is Malignant Mesothelioma Cancer????
There are several varieties of mesothelioma cancer, however, malignant mesothelioma is considered one of the most lethal. It has been determined that malignant mesothelioma victims often have a median survival of only a few months in both untreated and treated cases, according to the study." Malignant mesothelioma is a rare cancer with malignant cancer cells forming on the sac lining of the chest or abdomen, according to the National Cancer Institute (NCI). It is often associated with exposure to airborne asbestos particles and fibers, which increases the risk of malignant mesothelioma developing in an individual.
Signs and Symptoms of Malignant Mesothelioma
Malignant mesothelioma is often marked by several symptoms including lumps in abdomen, weight loss, pain or swelling in the abdomen, pain under the rib cage and difficulties breathing. The cancer can also often cause fluid retention in the abdomen or around the lungs. The cancer often has symptoms similar to other conditions making misdiagnosis of the condition common.
Medical professionals have even admitted that malignant mesothelioma and lung cancer are very similar and differentiating between the two is difficult, however, there is an array of tests that physicians can use to increase the potential for a more accurate diagnosis. Tests for diagnosis may include the patient enduring physical exams, chest x-rays, biopsy of body tissues, getting a complete blood count (CBC), cytologic exam, which is an exam of cells under a microscope, or a bronchoscopy procedure where a bronchoscope is inserted into the nose or mouth for a better view of airways.
Diagnosing and Treating Malignant Mesothelioma
While treatments for mesothelioma are rare in and of themselves, it becomes increasingly difficult to treat malignant mesothelioma because of the severity of the condition. Factoring in the best method of treatment often depends on several factors. The following is a detailed list of these factors, according to the NCI:
* The stage of cancer, which includes stage I or localized malignant mesothelioma or advanced malignant mesothelioma that includes stage II, stage III and stage IV.
* The size of a tumor.
* Potential for tumor removal through a surgical procedure.
* The amount of fluid gathered in the chest or abdomen.
* A victim's age, physical health and previous health issues.
* Type of mesothelioma cancer.
* Whether a cancer is diagnosed as reoccurring or not.
Often, cancer may spread through the lymph system, blood stream or other bodily tissues.
Treatments for malignant mesothelioma can range from surgery to therapy, including chemotherapy and biological therapy to clinical trials, although the outcome is based on the progression of the cancer and most often, individuals are not aware of their condition until it reaches an advanced and, usually, an untreatable stage.
Signs and Symptoms of Malignant Mesothelioma
Malignant mesothelioma is often marked by several symptoms including lumps in abdomen, weight loss, pain or swelling in the abdomen, pain under the rib cage and difficulties breathing. The cancer can also often cause fluid retention in the abdomen or around the lungs. The cancer often has symptoms similar to other conditions making misdiagnosis of the condition common.
Medical professionals have even admitted that malignant mesothelioma and lung cancer are very similar and differentiating between the two is difficult, however, there is an array of tests that physicians can use to increase the potential for a more accurate diagnosis. Tests for diagnosis may include the patient enduring physical exams, chest x-rays, biopsy of body tissues, getting a complete blood count (CBC), cytologic exam, which is an exam of cells under a microscope, or a bronchoscopy procedure where a bronchoscope is inserted into the nose or mouth for a better view of airways.
Diagnosing and Treating Malignant Mesothelioma
While treatments for mesothelioma are rare in and of themselves, it becomes increasingly difficult to treat malignant mesothelioma because of the severity of the condition. Factoring in the best method of treatment often depends on several factors. The following is a detailed list of these factors, according to the NCI:
* The stage of cancer, which includes stage I or localized malignant mesothelioma or advanced malignant mesothelioma that includes stage II, stage III and stage IV.
* The size of a tumor.
* Potential for tumor removal through a surgical procedure.
* The amount of fluid gathered in the chest or abdomen.
* A victim's age, physical health and previous health issues.
* Type of mesothelioma cancer.
* Whether a cancer is diagnosed as reoccurring or not.
Often, cancer may spread through the lymph system, blood stream or other bodily tissues.
Treatments for malignant mesothelioma can range from surgery to therapy, including chemotherapy and biological therapy to clinical trials, although the outcome is based on the progression of the cancer and most often, individuals are not aware of their condition until it reaches an advanced and, usually, an untreatable stage.
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