Showing posts with label asian. Show all posts
Showing posts with label asian. Show all posts

Friday, May 24, 2013

NEWS,24.05.2013



Brazil to open huge oil field to auction


Brazil says it will auction concessions to drill and explore an offshore oil field believed to hold up to 12bn barrels of crude, the country's largest find.
The tender process for the Libra oil field will take place in mid-October, said National Oil Agency (ANA) director Magda Chambriard, changing an originally scheduled date in late November.
"I have worked in the oil industry for 30 years and have never seen anything like it," she said.
"Something this size will raise eyebrows all over the world."
Libra, discovered in 2010, is within the vast Santos Basin, located about 180km off the coast of Rio de Janeiro.
Oil in the Santos basin, first discovered in 2007, lies under a thick layer of salt between five and seven kilometers below the ocean surface.
Brazil's first oil field auction in five years 142 land and ocean oil blocs in unexplored regions in north and north-eastern Brazil in mid-May raked in a record $1.4bn.
The ANA estimates that Libra holds between 26 and 42bn barrels of crude.
Chambriard said that its recoverable reserves of between eight and 12bn barrels are based on an estimated 30% on-site recovery rate.
The estimates, completed in May, are based on data obtained by drilling in the area and updates previous estimates, she said.
By way of comparison, the so-called Marlim field, which is the most productive one Brazil now has operating  at 600 000 barrels per day has a recoverable oil volume of 2bn barrels, Chambriard said.
Another, called Roncador, has 2.5bn she added. But Libra is another thing altogether.
The next pre-salt oil bloc auction will not likely be held until 2015, Chambriard said.
Brazil currently consumes some 800 million barrels of crude a year, so in the Libra reserve alone "there is enough oil to satisfy the current consumption rate for 12 years," said Florival Carvalho, a senior ANP official.
Brazil currently extracts some 300 000 barrels per day from the pre-salt region.

Cap on executive pay dropped - France


The French government has decided to drop a plan to impose a ceiling on executive pay in the private sector, though it will go ahead with a two-year super-tax on firms paying million-euro salaries, says Finance Minister Pierre Moscovici.
Moscovici told the daily Les Echos in an interview that the year-old Socialist government wanted to support business and job creation and was working to accelerate the take-up of tax credits aimed at lowering companies' labour costs.
"After several months of dialogue, I have decided to focus our legislative action on the 75% tax on salaries above €1m, which will be paid by the employer, Moscovici said, asked if a proposed law to cap pay was still in the works.
"We will not go beyond that: there will be no specific law on the governance of companies."
Moscovici said that instead the government was holding discussions with the business sector on the idea of letting shareholders have a say in a director's pay.
"Our aim is to avoid rooting the rules in law," he said.
"We prefer to go with 'a demanding auto-regulation', but careful, if the decisions announced are not up to scratch we still have the possibility of legislating."
President Francois Hollande's government is battling to overturn an image of being anti-business after corporate heads lashed out at its 75% super-tax plan and fought back at a plan last year to raise capital gains taxes.
The government has since rejigged its super-tax plan so that it applies to companies rather than employees over 2014 and 2015.
It has also altered the new capital gains tax rules so that entrepreneurs will not be punished for selling companies they have founded.
Moscovici said more needed to be done however, as France strives to return its economy to growth and halt soaring unemployment, which has risen to 10.6%.

North Korea: No guarantee of peace


China told a top North Korean envoy on Friday it wants a peaceful, denuclearised Korean Peninsula, and said the emissary warned there is "no guarantee of peace" but that his country was willing to hold talks with all sides.
The official state Xinhua News Agency said a top Chinese army general, Fan Changlong, made the call for denuclearisation in his meeting on Friday with North Korean Vice Marshal Choe Ryong Hae.
His comments were a reiteration of China's established position, but could be seen as a rebuke of its neighbouring ally, following a half-year gap in high-level contacts during which Pyongyang angered Beijing by conducting rocket launches, a nuclear test and other sabre-rattling.
Tensions surrounding the nuclear issue have "intensified strategic conflicts among involved parties and jeopardised the peace and stability of the peninsula”, continued Fan, a vice chairperson of the Central Military Commission overseeing China's armed forces.
A message from Kim
Choe, a personal envoy of North Korean leader Kim Jong-un, was widely expected to meet Chinese President Xi Jinping and deliver a message from Kim before returning.
"Conditions on the Korean Peninsula and in the east Asian region are complex and exceptional, and there is no guarantee of peace. North Korea's people require a peaceful and stable environment to build their nation," Choe was quoted as saying.
"North Korea is willing to work with all sides to search for a method of solving the problems through dialogue," Choe said.
The envoy's comments reflect both the threatening tone of North Korea's recent statements, and its desire to show deference to Beijing's hopes for a return to nuclear disarmament talks.
Choe met on Thursday with the ruling Communist Party's fifth-ranked official, and Chinese state media later quoted the envoy as saying that North Korea "is willing to accept the suggestion of the Chinese side and launch dialogue with all relevant parties”.
Sanctions
Beijing considered Pyongyang's recent moves an affront to its interests in regional stability and showed its displeasure by joining with the US to back UN sanctions, and cut off dealings with North Korea's Foreign Trade Bank.
China is North Korea's last significant diplomatic ally and main source of trade and economic assistance.
China's North Korea watchers said it is unlikely that Chinese leaders would have accepted Choe's visit without a promise from Pyongyang, that it was prepared to return to diplomacy as Beijing has sought.
"The relationship is rocky, so they will try to mend the relationship," Cui Yingjiu, a retired professor of Korean at Peking University, said of North Korea.
"Second, they also want to improve relations with the US and need China to be their intermediary."

N Korean envoy meets China president


A North Korean envoy met China's President Xi Jinping in Beijing on Friday and handed him a personal letter from leader Kim Jong-Un, Chinese state-run media reported.
Choe Ryong-Hae told Xi that North Korea is willing to take positive actions to solve problems through dialogue, the semi-official China News Service said, after months of high tensions over Pyongyang's nuclear programme.
The report did not disclose the contents of the letter.
It quoted Choe saying dialogue included the long-stalled six-party talks aimed at North Korea's denuclearisation, which are chaired by China and bring together the two Koreas, the US, Russia and Japan.
Choe also said that North Korea needs to create a peaceful regional environment.
China is North Korea's key economic benefactor and diplomatic protector.
The report quoted Xi as telling Choe that China's position is for the denuclearisation of the Korean peninsula and Beijing hopes for a resumption of the six-nation negotiations.
The six-party talks have sought to persuade Pyongyang to abandon nuclear development in exchange for aid and security guarantees, but the process has stalled for years amid repeated North Korean atomic tests and ballistic missile launches.

Obama seeks to end 'war on terror'


Twelve years after the "war on terror" began, President Barack Obama wants to pull the United States back from some of the most controversial aspects of its global fight against Islamist militants.

In a major policy speech on Thursday, Obama narrowed the scope of the targeted-killing drone campaign against al-Qaeda and its allies and took steps toward closing the
Guantanamo Bay military prison in Cuba.

He acknowledged the past use of "torture" in US interrogations; expressed remorse over civilian casualties from drone strikes; and said that the
Guantanamo detention facility "has become a symbol around the world for an America that flouts the rule of law".

After launching costly wars in
Iraq and Afghanistan, the US is tiring of conflict. While combating terrorism is still a high priority for the White House, polls show by large margins that Americans' main concerns are the economy and domestic concerns such as healthcare.

"We have now been at war for well over a decade," Obama said near the start of his address. Toward the end, he added: "But this war, like all wars, must end."

Though aimed first at a domestic audience, Obama's speech at
Washington's National Defence University was also the latest milestone in his campaign to reshape the global image of the US - particularly in the Islamic world.

Policy shift

But he faces obstacles from opponents in Congress who will try to block the closure of
Guantanamo prison and reject his call to repeal the Authorisation for Use of Military Force passed right after the 11 September 2001, attacks. The law is the legal basis for much of the "war on terror".

Faced with criticism about civilian casualties in attacks by unmanned aerial vehicles, Obama said the United States would only use those drone strikes when a threat was "continuing and imminent", a nuanced change from the previous policy of launching strikes against a significant threat.

Under new presidential guidance signed by Obama this week, the defence department will also take over some lethal drone operations from the CIA.

That would subject drone attacks to more scrutiny from Congress and might lead to the Pentagon taking over drone operations in
Yemen, but not in Pakistan, where the CIA is likely to continue to run the programme.

With al-Qaeda leader Osama bin Laden killed in a
US raid in 2011, a number of the group's top members taken out in drone strikes, and the US military role in Afghanistan winding down, Obama made clear it was time for a policy shift.

"Beyond
Afghanistan, we must define our effort not as a boundless 'global war on terror' - but rather as a series of persistent, targeted efforts to dismantle specific networks of violent extremists that threaten America," Obama said.

‘Signature’ drone strikes

Human rights groups mostly welcomed Obama's assertion that
America could not remain on "a perpetual war-time footing", but some activists said he was not going far enough.

Republican opponents warned against being too quick to declare al-Qaeda a spent force.

"The President is correct to highlight the successes in
America's war on terror that have occurred since 11 September 2001," said Senator Marco Rubio, a Florida Republican mentioned as a possible US presidential candidate in 2016.

"He is wrong, however, to understate the continued threat to the US homeland or to suggest that the lethality of the threats posed by a weakened al-Qaeda and its affiliates is a return to a pre-9/11 norm that Americans should just accept," Rubio said in a statement.

The new
US drone rules are likely to reduce "signature" drone strikes, in which the United States targets what appear to be suspicious-looking groups of people. Those attacks are blamed for many civilian casualties in Pakistan's tribal areas near Afghanistan and in Yemen.

Obama "has clearly raised the bar significantly for the use of drone strikes with the very specific and restrictive criteria," said John Bellinger, former state department legal adviser in President George W Bush's administration.

"The standard for targeting is now the same for Americans and non-Americans - it must be a continuing and imminent threat of violence to Americans. And there must be a near certainty that no non-combatants will be killed," he said.

Closing Guantanamo Bay

The number of drone strikes has dropped in the past year after peaking in the middle of Obama's first term.

The New
America Foundation's widely cited drone attack database shows there have been 355 drone strikes in Pakistan since 2004 and more than 60 in Yemen since 2009.

Despite the new limits on drone attacks, pilotless aircraft are increasingly playing a role in the armoury of the
United States and other countries. The US Navy made aviation history on 14 May by launching an unmanned stealth jet off an aircraft carrier for the first time, with an eye on possible rivals like China and Iran.

While Obama largely has a free hand as commander in chief to set US drone policy, Congress has used its power of the purse to block him from closing
Guantanamo.

"I am grateful for the president's declaration that it remains his intent to close Gitmo. I am not confident he will get congressional support," said David Gushee, an ethics professor at
Mercer University.

Obama has been frustrated by his inability to make good on his 2008 campaign pledge to shut the prison, which was opened by his predecessor, President George W Bush, to hold men rounded up on suspicion of involvement with al-Qaeda and the Taliban after the 11 September attacks.

Closure plan

A hunger strike by 103 of the 166 detainees - 32 of whom have lost so much weight that they are being force-fed - has put pressure on Obama to take action.

"There is no justification beyond politics for Congress to prevent us from closing a facility that should never have been opened," Obama said.

Obama's latest Guantanamo proposals will likely meet much of the same resistance his earlier ones did from Republicans and some Democrats who do not want to fund the transfer of detainees away from Cuba.

But two Senate Republicans, John McCain of Arizona and Lindsey Graham of South Carolina, said they could support closing Guantanamo and moving some of its functions to the United States if Obama presented a workable plan.

Obama suggested a suitable site could be found on the
US mainland to hold military tribunals.

McCain and Graham have proposed that trials could be held at
Charleston Naval Yard in South Carolina. A supermax prison in Illinois has also been proposed in the past for housing Guantanamo inmates.

"I don't mind if we try to find a place to move it into the
United States," said Graham, who has been critical of Obama's security policies.

"What I want is a legal system consistent with being at war, and the reason we haven't closed
Guantanamo Bay is that we don't have a plan to close it," he said.

While he cannot shut
Guantanamo on his own, Obama has announced steps aimed at getting some prisoners out. He lifted a moratorium on detainee transfers to Yemen out of respect for that country's reforming government. Yemenis make up the largest group of prisoners.

Of the 86 detainees who have been cleared for transfer or release, 56 are from
Yemen. But al-Qaeda has a presence in the country and Washington will likely want guarantees that the prisoners will not take up arms against the United States after they are sent home.

Among the TV audience for Obama's speech were detainees at
Guantanamo, who rely on television broadcasts and newspapers for hints about their fate.

"Detainees follow all coverage of
Guantanamo closely, including today's speech, and the post-speech commentary, analysis and editorials," said Navy Captain Robert Durand, a spokesperson for the Guantanamo detention operation.

"There is interest and discussion, but no discernible reaction," he said.

Ban lifted on Guantanamo-Yemen transfers


President Barack Obama is lifting his self-imposed ban on transferring Guantanamo Bay detainees to Yemen, a step toward his goal of closing the US military-run prison that he said "has become a symbol around the world for an America that flouts the rule of law."

Nearly 100 of the 166 terrorist suspects held at the prison in
Cuba are from Yemen and have had nowhere to go even if they had been cleared for transfer. Obama wouldn't send them home, and no other country was welcoming them.

Their hopelessness after a decade or more of imprisonment has contributed to a hunger strike at the detention facility that helped reignite the long-stalled effort to close it.

A leadership upheaval in
Yemen has improved the country's security but not eliminated a terrorist organisation trying to recruit jihadists.

But Obama's decision announced on Thursday is not without risk. Detainees who have been released to
Yemen in the past have joined terrorist fighters in the Arab nation.

The security concerns prompted Obama to suspend transfers to
Yemen in January 2010 after a Nigerian man attempted to blow up a US-bound flight on Christmas Day 2009 with explosives hidden in his underwear on instructions from al-Qaeda operatives in Yemen.

Co-operation with US

Senator Saxby Chambliss, an opposition Republican, was among those on Capitol Hill criticising Obama's change in policy.

"Between December 2009 and today, has
Yemen shown any indication that they are more capable of looking after those individuals? Absolutely not," Chambliss said. "And If we were to transfer those individuals to Yemen, it would be just like turning them loose."

Yemeni watchers in the
US say there is reason to hope security has improved since long-time authoritarian leader Ali Abdullah Saleh was ousted after mass uprisings last year.

Al-Qaeda had been on the upswing under Saleh, but his successor, Abed Rabbo Mansour Hadi, has made fighting terrorism a top goal and restored co-operation with the
United States in the effort.

Obama announced that he was lifting the moratorium on Yemeni transfers in a speech at the
National Defence University in which he also defended targeted killings by US aerial drones and pushed Congress anew to authorise Guantanamo's closure.

The president did not explain his rationale behind the change in
Yemen policy, but senior administration officials cited Hadi's leadership as an increasingly able partner to the US.

Flown in shackles

A Yemeni official told The Associated Press that a delegation, including the country's human rights minister, returned this week after a trip to
Washington, where they agreed to set up of a rehabilitation centre to help reintegrate detainees with the support of the US and other Arab nations.

Rageh Badi, an adviser to Yemen's prime minister, said in an interview that the transfer ban had cast a shadow on the relations with the
United States. Badi said lifting the ban is a "welcome step, a progressive one that removes much of the ambiguity and confusion between the US administration and the Yemeni government."

Yemeni authorities previously had a system to monitor returned detainees, but it ceased to function after massive anti-government protests swept most of the country, starting in early 2011.

Of the estimated 30 Yemenis who returned from
Guantanamo, only a handful had stayed in Sanaa, the capital, while the rest moved to remote areas where government authority is minimal, or nonexistent.

David Remes, an attorney who represents many Guantanamo detainees, described a system roughly like parole for his clients who have been released to
Yemen.

He said they have been flown in shackles aboard a military aircraft back to Sanaa and turned over to state forces, who spend a couple days debriefing them about their years of captivity before they return to their families.

Peaceful lives

If they want to leave town, they are required to register with state security forces, who keep track of their movements, Remes said.

"Although there is no such thing as zero risk, the men who have returned from
Guantanamo are overwhelmingly living peaceful lives," Remes said. "And you can't hold 99 of 100 men captive because one might engage in bad acts when he is released, even two."

Yet some have returned to jihad. Among them is Saeed Ali al-Shihri, who emerged as the second-most senior commander of
Yemen's branch of al-Qaeda after being released from six years of detention at Guantanamo Bay.

Yemini officials said in January that al-Shihri was killed in a
US drone attack, but al-Qaeda denied he was killed and last month released an audio recording of him criticising Yemen's neighbour Saudi Arabia for its policy of allowing the US to launch drone strikes from bases in the kingdom.

In confusion that underscores how difficult it can be to keep track of former detainees, it was the second time the group denied al-Shihri's death. US officials had previously announced al-Shihri's death in an airstrike in September last year. A DNA test, however, proved that the body recovered was not that of al-Shihri.

According to security officials in
Yemen, there has not been any evidence to link any of the returnees with suicide bombings in the country.

However, some of them are thought to have fought against government forces in the southern Abyan province in 2011 and 2012, when al-Qaeda fighters took advantage of the security vacuum to seize large swathes of the area before they were pushed back by security forces last year.

The officials spoke on condition of anonymity because they were not authorised to speak to the media.

MI5 aware of suspects before attack


Britain's security services faced questions on Friday over whether they could have done more to prevent the murder of a soldier hacked to death in a busy London street, after it emerged that his suspected killers were known to intelligence officers.
The two suspects, Michael Adebolajo, 28 and Michael Adebowale, 22, are under guard in hospitals after being shot and arrested by police after the murder of 25-year-old Afghan war veteran Lee Rigby on Wednesday in broad daylight.
They have not yet been charged.
Adebolajo, filmed justifying the killing as he stood near the body holding a knife and meat cleaver in bloodied hands, was born in Britain to a Nigerian immigrant family.
Adebowale is a naturalised British citizen born in Nigeria.
Another man and a woman have also been arrested on suspicion of conspiracy to commit murder, an early indication that police are investigating whether the attack was part of a wider plot.
Prime Minister David Cameron said a parliamentary committee would carry out an investigation into the role of the security services.
Britain's MI5 domestic spy agency had been aware of the men, but neither was considered a threat, a government source told Reuters.
Dramatic video footage showing the moment when police shot the two men was published on a British newspaper's website on Friday.
The shaky, 10-second clip shows one of the men sprinting towards a police car with a knife in his hand before he is shot and tumbles to the ground.
"It is important for the public to know that the security services and the police are operating properly," former London police chief Ian Blair told BBC radio.
Investigation
Communities Secretary Eric Pickles said there would be a thorough investigation into the role of the police and intelligence agencies.
However, he said the incident underlined how "difficult it is in a free society to be able to control everyone".
The attack was the first Islamist killing since July 2005, when four suicide bombers struck London transport.
At that time, questions were also raised about the security services after it was revealed two of the bombers had been identified in a surveillance operation, but were not followed up.
Richard Barrett, former head of counter-terrorism at the Secret Intelligence Service MI6, Britain's foreign spy agency, said it would be impractical to track every person who expressed radical views in case they tipped over into violent extremism.
"To find the signals, the red flags as it were, I think is enormously hard," he told the BBC.
Adebolajo, who converted to Islam and took the name "Mujahid" - warrior - used to attend events run by the banned Islamist group al-Muhajiroun, its leader Anjem Choudary has said.
Detectives are trying to determine whether the suspects had links to militants in Britain or overseas.
Sources familiar with the investigation have said no sign has emerged so far of direct links between the attack and an Islamist insurgency in the suspects' ethnic homeland Nigeria. Their surnames suggest they are from the Christian south of Nigeria, not the Muslim north where insurgents are active.
Police stepped up security at religious venues and transport hubs.
‘Lone wolves’
The murder, just a month after the Boston Marathon bombing, revived fears of "lone wolves", who may have had no direct contact with al-Qaeda but plan their own attacks.
A source close to the investigation told Reuters the attackers were known to MI5.
Adebolajo had handed out radical Islamist pamphlets, but neither was considered a serious threat.
Another source close to the inquiry said the local backgrounds of the suspects in a multicultural metropolis - nearly 40% of Londoners were born abroad - and the simplicity of the attack made prevention difficult. It required little preparation beyond buying a set of butcher's knives.
Peter Clarke, the former head of London's Counter Terrorism Command who led the investigation into the 2005 bombings, said if the men did turn out to be acting alone, it showed the difficulty the security services faced in trying to stop them.
"To an extent, if these people are acting as individuals it makes it even more difficult than if they're an organisation," he told Reuters. "Instead of having to dismantle an organisation, you are having to investigate and counter an ideology."
The two men used a car to run down Rigby outside Woolwich Barracks in southeast London and then attacked him with a meat cleaver and knives, witnesses said.
The pair told bystanders they acted in revenge for British wars in Muslim countries.
Rigby, who had a 2-year-old son, was not in uniform. The bandsman was working locally as an army recruiter.
In Nigeria, with a mixed Christian-Muslim population and where the authorities are battling an Islamist insurgency, a government source said there was no evidence the Woolwich suspects were linked to groups in west Africa.
British investigators are looking at information that at least one of the suspects may have had an interest in joining Somalia-based Islamist rebel group al-Shabaab, which is allied to al-Qaeda, a source with knowledge of the matter said.

Friday, February 1, 2013

NEWS,01.02.2013



Daimler boosts stake in China


German automaker Daimler unveiled plans Friday to boost its position in the fast-growing Chinese market by acquiring a 12% stake in the country's fifth-biggest car group.Daimler, which at the end of last year created a new position on its management board dedicated especially to China, said in a statement it had decided to deepen its existing partnership with Beijing Automotive Group (BAIC) by buying a stake in its passenger car unit BAIC Motor.BAIC is planning to float the subsidiary on the stock exchange and when it does so, Daimler would buy a stake of 12%, the German group said.As part of the agreement, Daimler would receive two seats on the BAIC Motor's board of directors.At the same time, the two sides would increase their stakes in existing joint ventures, they said.BAIC's holding in the production joint venture Beijing Benz Automotive Company (BBAC) would rise to 51 percent from 50 percent, while Daimler's stake in the integrated sales joint venture Beijing Mercedes-Benz Sales Service would be increased to 51 percent.Financial details were not disclosed. But Daimler and BAIC expect the deal  which still has to be approved by the relevant authorities -- would be closed "by the end of this year or early next year.""Following our technical cooperation with BAIC Motor and the setup of our integrated sales company, we are now taking the next step in deepening our relationship even further," said Daimler chief executive Dieter Zetsche."Our investment is a strong sign of the increased level of trust and cooperation between our two companies and clearly emphasises the long-term commitment to a joint successful future of our two companies," he said.BAIC chairman Xu Heyi said the partnership "has entered into its best phase ever, with further deepened cooperation in accordance with the mutual interests and development plans between both companies."Daimler's acquisition of a 12% stake "will go a long way in accelerating the development of BAIC's self-owned brand in terms of capital, technology, management, and brand. At the same time, this will help Mercedes-Benz to boost its business performance in China," Xu said.NordLB analyst Frank Schwope put the estimated price tag of the deal at €640m.He said Daimler has long been trailing rivals BMW and Audi, a unit of Volkswagen, in China, which is the world's most important market in terms of growth outlook.In 2012, Daimler, which employs more than 2 000 people in China, sold around 210 000 of its Mercedes-Benz cars there. It aims to lift sales to 300 000 by 2015 with two thirds of those manufactured locally.China is currently Daimler's third-biggest market after Germany and the United States, but is expected to become the German group's number one market by 2020.According to the China Association of Automobile Manufacturers or CAAM, BAIC is China's fifth-biggest maker with sales of 1.69 million vehicles last year.Investors nevertheless appeared somewhat sceptical about the deal and Daimler shares were underperforming the overall market on the Frankfurt stock exchange, edging up only 0.08 percent while the blue-chip DAX 30 index rose by 0.26 percent.


Eurozone inflation nears ECB goal


Eurozone inflation fell more than expected in January in a sign that companies were cutting prices to entice consumers at a time when joblessness remained at a record level at the end of 2012.The rate of consumer price inflation in the 17 countries using the euro fell to 2% in January compared to a year ago, the EU's statistics office Eurostat said on Friday.The reading, Eurostat's first estimate, was lower than the 2.2% level forecast by economists polled by Reuters, which was also December's level.Unemployment remained at a euro-era high of 11.7% in December, Eurostat also said, slightly lower than the 11.9% level expected by economists, but still higher than the European Commission's year-end 11.3% prediction.Inflation is now near the European Central Bank's target of close to, but below 2%, and along with record unemployment, gives the ECB room to cut interest rates again to stimulate the economy.But an improvement in eurozone business morale for the third straight month in January and better factory output suggest the bloc has passed the worst of its recession, meaning further ECB stimulus in the form of lower borrowing costs may not be necessary. "Inflation is non-existent," said Thomas Costerg, an economist at Standard Chartered in London. "Now with German inflation decelerating, that will fuel debate about how to do ECB's easing," he said, forecasting a cut in the ECB's main refinancing rate in the second quarter.The ECB's Governing Council kept rates on hold at its January meeting and will discuss rate policy again on February 7. The decision to keep policy on hold was unanimous last month, but economists are still divided over the ECB's next move. 38 out of 73 analysts polled by Reuters in January, said that the ECB will remain on hold in the first quarter. The ECB's task is also complicated by a divide between wealthier, northern countries which are showing signs of emerging from the eurozone's three-year debt crisis and countries such as Spain and Italy, that are in deep recessions."The story in the eurozone remains one of national divergence between the peripheries and the core," said Evelyn Herrmann, an economist at BNP Paribas in London, also pointing to a growing gap between the German and French economies.

 

Taiwan premier resigns over economy


Taiwanese Premier Sean Chen said Friday he has stepped down for health reasons, after the cabinet he heads came under fire for its poor handling of the economy."I have some health problems ... and I need to completely change my life and work style to reverse the situation," the 63-year-old finance expert told a press conference to announce his resignation."I believe that the economy will improve in the coming year. We have worked very hard on the planning for long-term issues and I hope everybody will continue to support the new team."Deputy premier Jiang Yi-huah, 53, a scholar-turned-politician and a former interior minister, will take over his job, Chen said.Chen's departure came as Taiwan's economy grew 1.25% in 2012 from a year ago at the slowest pace in three years due to shrinking exports. Chen, who previously headed the Financial Supervisory Commission, the main industry regulator, had a tense term since taking office as premier in early 2012.His cabinet frequently came under attacks over the sluggish economy and other controversial policies, with the opposition repeatedly demanding his resignation.Last year, Chen survived a parliamentary no-confidence vote - only the second in Taiwan history - over what opposition lawmakers deemed as his cabinet's failure to curb rising unemployment and inflation.Under Taiwan's political system the premier heads the cabinet and is appointed by the president.

'Rockstar' Clinton leaves lasting legacy


Hillary Clinton is stepping down as the top US diplomat firm in the belief she has restored America's global standing during her tenure that may also have traced a path to the White House in 2016.But as she sweeps out of the imposing buildings of the State Department for the last time on Friday, how will history judge her as secretary of state?How she stacks up against giants of American diplomacy like Henry Kissinger and James Baker and how she'll fill in the blank pages as she opens a new chapter in her life remain open questions.Clinton says she never once gave a thought to her legacy in the past four years. Instead, she just got up every day determined to work as hard as she could to promote America's interests.She now leaves office with the highest popularity rating of any of President Barack Obama's cabinet members, imbued with the title of "rock star diplomat" and with many saying she'll be the Democratic Party's strongest hope in the next elections, despite her constant denials that she is planning to run."Her contribution I think was fighting for resources for her own department, America's credibility in the world through her relentless travel, finding a 21st century agenda, I call it planetary humanism," said Wilson Centre vice president Aaron David Miller."These are important issues. They don't get you into the secretary of state hall of fame," Miller, a distinguished scholar who has served under six secretaries of state, said.Critics say Clinton cannot point to a signature issue achieved under her stewardship. The major challenges of the day - Syria, the new world order emerging from the Arab Spring, Iran's nuclear ambitions and the search for peace in the Middle East - she bequeaths to her successor John Kerry.Yet the Obama administration seized the opportunity to help prise open Myanmar, she showed effective diplomacy in negotiating the freedom of Chinese dissident Chen Guangcheng, helped the United States pivot its focus toward Asia and built a solid alliance in support of biting sanctions against Iran.And Clinton brought to Obama's administration her charisma, celebrity status and a willingness to travel, believing that even in this interconnected world, face-to-face meetings remain one of diplomacy's most important tools."Secretary Clinton, because of her celebrity and popularity, has been a great secretary of state from that respect. People are thrilled to meet with her. She's probably second best to meeting with Obama," said Isobel Coleman, senior fellow at the Council on Foreign Relations.Even hardened politicians found it hard to resist her charms, British Foreign Secretary William Hague revealed during a dinner in her honour."There is a wonderful stillness that descends on large halls full of diplomats and ministers the moment Hillary enters the room," he said.Hague praised Clinton's "infectious spirit of optimism, opportunity and hope" as well as her faith "in the power of friendship and persuasion".In pursuit of diplomacy, Clinton has travelled exactly 1 539 712.5km, visiting about 112 countries. She was the first US secretary of state ever to visit Togo, and the first in over half a century to fly into Laos."Remember what we faced in January 2009: Two wars. An economy in freefall. Traditional alliances fraying. Our diplomatic standing damaged," she told the Council on Foreign Relations on Thursday."And around the world, people questioning America's commitment to core values and our ability to maintain our global leadership."That was my inbox on day one as secretary of state."Four years on, while the world "remains a dangerous and complicated place", much has changed, Clinton argued, saying "we've revitalised American diplomacy and strengthened our alliances".Those dangers were highlighted by the September attack on the US mission in Benghazi, Libya, in which the ambassador Chris Stevens and three other Americans were killed.Whether the attack, and the scathing criticism of security failures by the State Department, will taint her career in the long-term is too soon to tell.Many argue that Clinton's emphasis on what she calls "soft power" - her unrelenting focus on women's rights, development issues, economic statecraft and lesbian and gay rights - may well be what she's remembered for."As a long-term enduring legacy, I think I'd feel prouder about that than having invaded another Middle Eastern country," Coleman said.Observers also point to Europe's renewed faith in America, after Clinton made 42 trips to the continent during her time in office."In 2009, everything needed to be rebuilt... she has succeeded in restoring America's image in the world. She has marked the return of multilateralism," a western diplomat said in an interview.Tyson Barker, director of transatlantic relations at the Bertelsmann Foundation North America, agreed that "Europe loves Hillary Clinton, and she's spent a lot of time here investing in that relationship."She has really carried the torch for reconciliation and European integration."

Japan PM vows new statement on WWII


Japan's hawkish Prime Minister Shinzo Abe told lawmakers on Friday he intends to release a new statement on World War II, a move that could cause friction with neighbouring nations including China."I would like to announce a future-orientated statement that will suit the 21st century," Abe said. "On the timing and the content I'd like to think thoroughly hereafter."The nationalist premier said he wanted to update a landmark statement issued in 1995 by then-prime minister Tomiichi Murayama, seen as a key step in what many Asian nations say was Japan coming to terms with its brutal history.The statement said Japan "through its colonial rule and aggression, caused tremendous damage and suffering to the people of many countries, particularly to those of Asian nations", adding the premier feels "deep remorse" and offers a "heartfelt apology".Abe said on Friday he was in agreement with previous sentiments, adding: "Japan in the past caused great damage and suffering to many countries, particularly in Asia. The Abe cabinet shares that recognition with past cabinets."In a possible hint the statement may come in 2015, he said: "The so-called Murayama statement was issued to commemorate 50 years after the war, and 60 years after the war the [Junichiro] Koizumi administration issued a statement."Neighbouring countries that came under the yoke of Japan's military tyranny in the first half of the 20th Century, notably China and South Korea, chafe at the idea of Japan reneging on its apology, which both insist was insufficient anyway.

Thursday, September 27, 2012

NEWS,27.09.2012



Spain announces tough economic reforms


Spain announced a detailed timetable for economic reforms and a tough 2013 budget based mostly on spending cuts today in what many see as an effort to pre-empt the likely conditions of an international bailout.Government ministries saw their budgets slashed by 8.9% for next year, as Prime Minister Mariano Rajoy's battle to reduce one of the euro zone's biggest deficits was made harder by weak tax revenues in a prolonged recession.However, the conservative government said tax revenue would be higher in 2012 than it had been originally budgeted for and would grow 3.8% next year from this year.Spending cuts would be worth 0.77% of gross domestic product in 2013, while adjustment in revenue would be worth 0.56% of GDP."This is a crisis budget aimed at emerging from the crisis ... In this budget there is a larger adjustment of spending than revenue," Deputy Prime Minister Soraya Saenz de Santamaria told a news conference after a marathon six-hour cabinet meeting.Spain, the euro zone's fourth largest economy, is at the centre of the crisis. Investors fear that Madrid cannot control its finances and that Rajoy does not have the political will to take all the necessary but unpopular measures.Madrid is talking to Brussels about the terms of a possible European aid package that would trigger a European Central Bank bond-buying programme and ease Madrid's unsustainable borrowing costs.Economy Minister Luis de Guindos reiterated that the government was still analysing potential conditions for aid.Uncertainty over Spain's ability to control its economy, and especially the regional governments which make up around half of total spending, has been further rattled by rising demands for independence in the wealthy northeastern state of Catalonia.The deputy prime minister said today the region was not permitted to hold a referendum on independence before consulting with the rest of the country.Economic reform timetable Saenz de Santamaria said the government would detail 43 new laws to reform the economy over the next six months, including a reform of the pension system, one of the state's most expensive costs, before the end of the year.Spain's detailed timetable for economic reforms goes beyond what the European Commission has asked of Spain and is an ambitious step forward, the EU's top economic official said on Thursday in response to the government announcements."The reforms are clearly targeted at some of the most pressing policy challenges," EU Economic and Monetary Affairs Commissioner Olli Rehn said in a statement.Market reaction was cautious."The first impression (of the announcements) are good, heading towards a major adjustment in spending rather than in revenues," said Jose Luis Martinez of Citigroup, in Madrid."However, we see as too optimistic the macroeconomic assumption of 0.5% recession for the next year. We see a scenario with a deeper recession and if this were the case, further spending cuts will be needed".De Guindos' statement that the 2012 budget deficit target would be met this year due to a solid increase in revenues will also be viewed with suspicion with many economists expecting the government to miss its deficit target of 6.3 percent of GDP.The measures continue to heap pressure on the crisis-weary population and are likely to fuel further street protests, which have become increasingly violent as tensions rise and police are given the green light to use force to disperse crowds.

EU wants $12bn US sanctions in Boeing row


The European Union has asked the World Trade Organisation (WTO) for the right to impose annual trade sanctions worth up to $12bn on the United States in retaliation for illegal US subsidies to planemaker Boeing.The EU request is the latest legal move in the world’s biggest trade dispute. The wrangling over subsidies given to Boeing and its European rival Airbus stretches back more than seven years.“This follows the EU’s assessment that the United States had not lived up to its obligation to remove its illegal subsidies in the aircraft sector, as required by the WTO rulings that clearly condemned US subsidies to Boeing,” the EU said in a statement.The figure of $12bn was “based on estimates of the damage suffered by the EU due to unfair and biased competition from the US industry”, it added. Airbus, which is owned by aerospace group EADS, said the figure was justified by the WTO’s finding that the effect of the “particularly pervasive” subsidies was significantly larger than their face value. It also said that the launch of Boeing’s 787 aircraft would not have been possible without illegal subsidies.“It is the largest WTO penalty ever requested and it follows the worst loss a party has seen in the history of the WTO,” Airbus said in a statement.In two parallel legal disputes, the WTO has ruled that both companies have received billions of dollars in illegal subsidies to support their large civil aircraft programmes. In Boeing’s case, the deadline for the United States to comply with the WTO ruling was last Sunday, but the EU has rejected US assurances that the handouts have stopped.  The European demand for sanctions mirrors a US claim to the right to impose up to $10bn of sanctions on the EU.  Both claims are effectively frozen until other legal avenues have been exhausted, and many experts expect the two sides will settle the dispute outside the courtroom rather than let the tit-for-tat litigation drag on for years.“We regret that Boeing continues a legal battle that should have long been resolved by a mutual agreement. We made offers time and again but are ready to fight it through if the other side wishes to do so,” Airbus spokesperson Maggie Bergsma said.There was no immediate reaction from the US Trade Representative’s office. However, US ambassador to the WTO Michael Punke, speaking to reporters in Geneva on Wednesday, said the EU was much more at fault than the United States.“Here is the key figure to keep in mind, for those who are keeping score at home on the Boeing-Airbus discussion: through the WTO dispute resolution process there have been identified $19bn of illegal financing by Airbus. The equivalent number that has been identified for Boeing is $3bn to $4bn. So that’s the starting point for our discussion,” Punke said.“Beyond that, it is very much our contention that many of the types of subsidies that have been identified in the European context are very much still at play, including, for example, in the launch of the (Airbus) A350 and the A380.” 


EU plans airline industry shake-up


The EU will get tougher rules to ensure fair competition and protect its airline companies as it seeks to boost an industry vital to the wider economy, the European Commission said on Thursday."Archaic ownership and control restrictions" must also go as part of an international effort so as to ensure airlines get easier access to needed new capital, EU Transport Commissioner Siim Kallas said in a statement.The European Union would negotiate "new and more effective EU instruments to protect European interests against unfair practices," he said.Standard "fair competition clauses" would be included in current bilateral air services agreements between EU and non-EU countries, he added.Most countries apply control restrictions - foreign ownership in US airlines is limited to 25% and in the EU 49% - but these deny carriers access to new capital and prevent consolidation, Kallas said, adding: "It is now time to address this issue more vigorously."Kallas said European aviation had suffered badly in the economic downturn and it needed a shake-up to make it more competitive given the rise of fast growing airlines in Asia and the Middle East targetting a global market."We urgently need a step change. Faced with the dramatic changes in global aviation, Europe must respond and adapt rapidly or be left behind," he said.To help carriers access to new markets, the commissioner said he wanted to negotiate EU-level air service agreements with countries such as China, Russia, the Gulf States, Japan, India and southeast Asian countries.In addition, accords were needed with neighbouring countries such as Ukraine, Azerbaijan, Tunisia, Turkey and Egypt, Kallas said, claiming the agreements would produce annual benefits of €12bn.