NEWS,10.04.2013

Obama's new budget targets millionaires

The White House on Wednesday proposed a budget that sharply trims the US deficit over three years by forcing millionaires to pay more in taxes and enacting spending cuts that replace the "sequester" reductions that went into place last month.
President Barack Obama's fiscal 2014 budget blueprint ensures that those making $1m a year or more would have to pay at least 30% of their income, after gifts to charity, in taxes, officials said.
That increase, along with spending cuts and a 28% cap on tax deductions for high earners, would bring the US budget deficit down to 2.8% of GDP by 2016, senior administration officials told reporters. The nonpartisan Congressional Budget Office in February projected the US deficit to be 5.3% of GDP this year.
Obama is due to release his full budget at 11:15 a.m. and to make remarks at that time.
The president's budget stands little chance of being enacted into law. However, senior administration officials said that, in spite of Republican leaders' resistance to tax increases, they hoped it could lead to a deficit reduction accord.
"There continue to be people who are on the Republican side ... in the Senate at least, who are saying things that would give you some hope that there is a path to a deal," a senior administration official told reporters.
The president is breaking from the tradition of using the largely symbolic budget release to outline his ideal tax and spending proposals. Instead, he is trying to relaunch talks to resolve a long-running fiscal battle with his Capitol Hill adversaries.
To do so, Obama is offering a concession that has enraged many of his supporters: adopting a less generous measure of inflation to calculate cost-of-living increases for the beneficiaries of many federal programs. One result would be diminished benefits for most recipients of the popular Social Security retirement program.
Although Obama has pledged to shield some of the most vulnerable beneficiaries, the proposal has drawn strong opposition from Democrats and groups representing labor and the elderly.
At the same time, his budget proposal faces seemingly insurmountable opposition from Republican leaders, who reject any new tax revenues.
Obama's hope is to build a coalition of lawmakers willing to compromise, although most observers see that as unlikely. He has invited 12 Republicans to dinner at the White House on Wednesday in an effort to soften resistance.
"The question is, are Republicans going to be willing to come to us to do the serious thing that they say is so important in terms of reducing our deficit," a senior administration official said in a conference call with reporters the day before the budget release.
Both sides are so dug that they were unable to prevent some $85bn in across-the-board "sequestration cuts" from going into effect March 1.
Obama's budget proposal would replace those cuts with his original deficit reduction proposal from December. That offer included $930bn in spending reductions and some $580bn in tax revenues.
The president's budget includes spending on policy priorities such as infrastructure and early childhood education. He would pay for those programs with additional new taxes and the elimination of some tax breaks for the well-off.
The budget also includes a 10% tax credit for small businesses that raise wages or hire new workers.
The president's advisers said the budget proposal would achieve $1.8 trillion in deficit reduction over 10 years. Added to the $2.5 trillion in deficit cuts from past efforts, the total would be above the $4 trillion reduction both Republicans and the White House have said would be an acceptable goal.
Obama's budget is a clear contrast with a rival blueprint put forward by Representative Paul Ryan, the 2012 Republican vice presidential nominee and potential 2016 presidential candidate.
"You can invest in the middle class, create jobs, and reduce our deficits," a senior administration official said. "We don't have to choose between deficits as far as the eye can see and the sort of austerity that's in the Paul Ryan budget."

Pentagon budget asks for unpopular cuts

The Pentagon unveiled a $526.6bn budget on Wednesday that calls for base closures, program cancellations and smaller pay increases, but which is still $52bn higher than spending caps set by law, putting the department on a path toward another year of financial uncertainty.
The Defense Department request for the 2014 fiscal year beginning on October 1 asks Congress to implement a series of politically difficult cuts, involving a new round of base closure proceedings, increased healthcare fees and slower military pay increases.
While seeking ways to reduce spending in the current tight fiscal environment, the Pentagon budget would continue to fund high-priority programs and initiatives, including the strategic pivot to the Asia-Pacific announced last year.
The budget includes $8.4bn for continued development of the three variants of Lockheed Martin's F-35 Joint Strike Fighter, the Pentagon's most expensive procurement program.
It also includes $10.9bn for new ship construction, $9.2bn for missile defenses, $379m for development of a new long-range bomber, $4.7bn for cyberspace operations and $10.1bn for space technologies.
"This budget made important investments in the president's new strategic guidance including rebalancing to the Asia-Pacific region and increasing funding for critical capabilities such as cyber, special operations and global mobility," Defense Secretary Chuck Hagel said in a statement.
The budget is part of President Barack Obama's spending plan sent to Congress. The president's budget stands little chance of being enacted into law and is meant to serve largely as a negotiating tool with Republicans, who have outlined budget proposals of their own.
Obama's budget seeks new taxes and spending cuts that aim to replace the automatic, across-the-board reductions known as sequestration that went into effect on March 1. The Pentagon's share of the March 1 cuts is about $500bn over 10 years, or about $50bn a year.
The president's budget proposal unveiled on Wednesday would replace that $500bn cut under sequestration with a $150bn reduction, most of it spread over a five-year period beginning several years from now, a US official told Reuters.
Some $34bn in cuts would be implemented over the next five years, the official said, noting that the proposal would depend on Congress agreeing to eliminate the sequestration budget cuts. The White House and Republicans have been trying for two years to reach a deal on sequestration, without success.
The Pentagon budget asks Congress to begin a new round of Base Realignment and Closure proceedings, a politically unpopular request that was rejected by lawmakers last year and has already produced hearings this year, even before the decision was announced.
Base closures disrupt local economies and cost a huge amount up front, only saving money over the long run. The Pentagon is believed to have more than 20 percent surplus of infrastructure based on estimates from the last round of base closures that started in 2005.
The 2014 budget also renews a request to Congress for increased fees for pharmacy co-pays and health-care enrollment for retired military personnel. The Pentagon also proposed a 1 percent pay increase for military employees, lower than the 1.8 percent increase in the Employment Cost Index ordinarily used to determine pay increases.
Congress has been resistant in the past to increasing healthcare fees for military retirees and has often approved pay increases above those recommended by the department, a factor analysts say has led to military pay rising at an unsustainable pace over the past decade.

Chile halts construction of gold mine

A Chilean court suspended construction of what would be one of the world's biggest gold mines on Wednesday, accepting a complaint filed by indigenous groups on environmental grounds.
The project was launched in 2009 by Canadian mining company Barrick Gold, the world's largest gold producer, after an initial investment of $8bn.
It plans to spend $8.5bn more on the unfinished Pascua Lama mine, which straddles the Chile-Argentina border at an altitude of 4 000 meters (13 200 feet), and had hoped to start production next year.
But local groups have launched a legal battle to halt the plan, citing concerns over possible damage to a river and resulting in Tuesday's ruling by the Santiago Appeals Court, which was seen by AFP.
This came as crews were still removing earth to create the pit from which gold and silver would be extracted, and the order suspends construction of the open-pit mine while the court studies the broader environmental issues.
The complaint was filed by the Diaguita indians, a small community based in northern Chile. It said that the construction work "has generated a situation of imminent environmental danger" for the Estrecho River.
Interior Minister Andres Chadwick said he was not surprised by the court decision, and welcomed the idea of suspending the project while Barrick ensures it is complying with all environmental protection terms set by the government.
Lorenzo Soto, a lawyer for the Indians, said damage being caused by the construction of the mine was of "great magnitude."

Ecobank to assist Chinese investment

The Ecobank Transnational Incorporated (ETI) said on Tuesday it would facilitate Chinese investors for business in sub-Saharan Africa. 

The ETI said the opening of its representative office in Beijing, China about six months ago was to ensure that it positioned itself well to support China's drive to do business in Africa.

Answering a question from Xinhua on the floor of the Ghana Stock Exchange (GSE) after leading stakeholders through the bank's 2012 annual performance, Group chief executive Thierry Tanoh said China has become a key player in terms of investment drives in Africa. 

"It will be a big mistake if we are not able to support the Chinese investors coming to invest in the sub-region," Tanoh stressed.

"We will be the entry port to South-South investors in line with our belief in the South-South cooperation," Tanoh said, adding that, with what the bank had experienced through its Beijing representative office, he had confidence that the Chinese market had great potentials for Ecobank. 

Meanwhile, the bank, with branches in 33 African countries, reports that its Profit After Tax went up 39% to record $287m in 2012. 

Its recorded total asset base was $20bn, while customer deposits totalled $14.6bn.

Tanoh described 2012 as a transitional year for the bank as it successfully acquired and integrated two banks, The Trust Bank (TTB) in Ghana, and the Oceanic Bank in Nigeria. 

"The performance was primarily driven by the successful integration of our landmark acquisitions in Ghana and Nigeria, resulting in significantly increased market share in both countries in terms of total assets (Number 1 in Ghana and number 6 in Nigeria) including investments of $74ml in one-off restructuring costs that will enable us to benefit fully from the enlarged platform," he explained. 

Ecobank, with its headquarters in Lome, Togo, and 18 500 employees, is owned by 600 000 individual, institutional, local and international shareholders with 1 200 branches in Africa. 

It has representative offices in Dubai, London and Beijing.

Smartphone price to drop in Brazil

In the latest of a series of tax cuts aimed at revving up the economy by boosting consumption and production, the Brazilian government announced Tuesday that it was doing away with the PIS/Cofins welfare tax on smartphones. 

The tax waiver will be applied to smartphones that retail for less than 1 500 reals ($750), which excludes high-end models such as the latest iPhones and Samsung Galaxy models, but includes most smartphones sold in Brazil. 

Several companies that produce smartphones in Brazil, including Apple, Nokia, Samsung and Motorola, will benefit from the tax exemption.

Over the coming weeks, the government expects the price of Brazilian smartphones to fall as much as 30%, compared to their imported counterparts.

According to Communications Minister Paulo Bernardo, consumers will be able to buy smartphones at lower prices just in time for Mother's Day in early May.

With the move, the government expects the number of smartphones sold in the country to grow from 65 million to 130 million by next year, thus increasing digital inclusion. Brazil currently has some 240 million active cellphone lines. 

The tax cut is expected to save companies up to 500m reals ($250m) per year, starting in 2014. 

Tax cuts have already been applied to cars, computers and domestic appliances like ovens and washing machines, though they haven't always worked as expected.

Last month, President Dilma Rousseff announced tax cuts to staple foods, but the prices of several products did not drop, and some actually rose. 

Likewise, the price of tablet computers and Apple products made in Brazil did not fall as much as consumers expected following tax cuts.

WTO warns growth in trade to shrink

Global commerce is set to grow by 3.3% this year, the World Trade Organisation said on Wednesday, as persistent gloom in Europe led it to cut a previous forecast of 4.5%.
The announcement marked the second time that the WTO has reined in its figures for 2013, after initially estimating that world trade would expand by 5.6%.
"Improved economic prospects for the United States in 2013 should only partly offset the continued weakness in the European Union, whose economy is expected to remain flat or even contract slightly this year according to consensus estimates," the WTO said.
"China's growth should continue to outpace other leading economies, cushioning the slowdown, but exports will still be constrained by weak demand in Europe," it added.
As a result, this year looks set to be a "near repeat" of 2012, with both trade and output expanding slowly.
Last year, the WTO said, global commerce expanded by 2.0% from the level in 2011, compared with growth of 5.2%.
That reflected the gloomy economic picture in developed nations, as the WTO's first estimation for 2012 had been for growth of 3.7%.
"The abrupt deceleration of trade in 2012 was attributed to slow growth in developed economies and recurring bouts of uncertainty over the future of the euro," the WTO said.
"Flagging output and high unemployment in developed countries reduced imports and fed through to a lower pace of export growth in both developed and developing economies," it added.
In 2012, the dollar value of world merchandise exports only increased by 0.2% to $18.3 trillion, it underlined.
That trend was driven by falling prices for traded goods, with commodities such as coffee, cotton, iron ore and coal seeing major drops, while oil remained relatively stable.
Meanwhile, the value of world commercial services exports rose by 2.0% to $4.3 trillion.

Buyers of Iran oil seen cutting imports

The United States expects importers of Iranian crude oil to make further significant cuts in their purchases, a senior US official said on Wednesday, though she noted that there are seasonal fluctuations.
"I do expect that reductions in the importation of oil will continue," the senior State Department official told reporters on condition of anonymity. "There is seasonality, there are spikes, it does go up. There are prior contracts and seasonality to those contracts, so we know there will be fluctuations, but I expect that there will be continued reductions."
Asked if she expected these to be significant reductions, the official replied "yes."
Under US law, countries that import Iranian crude oil must make "significant reductions" - as determined by the US government - or their banks run the risk of being cut off from the US financial system under US sanctions.
The United States on March 13 granted a 180-day reprieve from such sanctions to Japan and 10 European Union nations after determining they had made such cuts. The official's comment suggested Washington may grant a further six-month reprieve when it next assesses how much countries have cut their imports.
The US sanctions aim to choke off funding for Tehran's nuclear program, which the West suspects is trying to develop weapons, by slashing Iran's crude exports. Iran says its nuclear program is for civilian purposes.

NEWS,29 AND 30.03.2013

Russia warns on North Korea situation

Russia warned on Friday that a flare-up in tensions between North Korea and the United States could spin out of control, urging all sides involved in the standoff to refrain from muscle-flexing."Unilateral actions are being taken around North Korea which manifest themselves in an escalation of military activity," Russian Foreign Minister Sergei Lavrov said."We can simply see the situation getting out of control, it would spiral down into a vicious circle," he told reporters at a news conference alongside his Ukrainian counterpart."We believe it is necessary for all not to build up military muscle and not to use the current situation as an excuse to solve certain geopolitical tasks in the region through military means," he said, calling on all sides to create conditions for the resumption of talks.North Korean leader Kim Jong-Un earlier Friday ordered missile units to prepare to strike the US mainland and military bases in the Pacific after US stealth bombers flew over South Korea.The flights were part of annual drills between the United States and South Korea, which North Korea each year denounces as rehearsals for war. Pyongyang has been particularly irate this time, angered by UN sanctions imposed after its long-range rocket launch in December and the third nuclear test last month.

North Korea in a 'state of war'

North Korea declared it was in a "state of war" with South Korea and warned Seoul and Washington that any provocation would swiftly escalate into an all-out nuclear conflict. The US said it took the announcement "seriously", but noted it followed a familiar pattern, while South Korea largely dismissed it as an old threat dressed in new clothing.It was the latest in a string of dire-sounding pronouncements from Pyongyang that have been matched by tough warnings from Seoul and Washington, fuelling international concern that the situation might spiral out of control."As of now, inter-Korea relations enter a state of war and all matters between the two Koreas will be handled according to wartime protocol," the North said in a government statement carried by the Korean Central News Agency."The long-standing situation of the Korean peninsula being neither at peace nor at war is finally over," the statement said, adding that any US or South Korean provocation would trigger "a nuclear war".The two Koreas have technically remained at war for the past six decades because the 1950- 1953 Korean War concluded with an armistice rather than a peace treaty.The North had announced earlier this month that it was ripping up the armistice and other bilateral peace pacts signed with Seoul in protest against South Korea-US joint military exercises.The White House labelled the latest statement from Pyongyang as "unconstructive" and, while taking it "seriously", sought to place the immediate threat level in context."North Korea has a long history of bellicose rhetoric and threats and today's announcement follows that familiar pattern," said National Security Council spokeswoman Caitlin Hayden.In Seoul, the Unification Ministry insisted the war threat was "not really new". The Defence Ministry vowed to "retaliate thoroughly" to any provocation, but added that no notable troop movement had been observed along the border.As with past crises, Pyongyang did not allow the tensions to impact the Kaesong industrial complex, a joint South-North venture that provides the regime with crucial hard currency."The border crossing to Kaesong is functioning normally," said unification ministry spokesperson Park Soo-Jin.A verbal battleMost observers still believe this will remain a verbal rather than a physical battle."The North Koreans in recent weeks have turned rhetoric into performance art," said Gordon Flake, a Korea specialist and executive director of the Mansfield Foundation in Washington."When they have already declared the armistice null and void, I do not think a declaration of war breaks new ground," Flake said.But he added that the situation had now become so volatile that any slight miscalculation carried the potential for rapid escalation."The danger is, when the North Koreans have threatened a nuclear attack on Washington, they may not know a limit on how much they can get away with," said Flake.Both China and Russia called for calm Friday, with Russian Foreign Minister Sergei Lavrov voicing particular concern."We can simply see the situation getting out of control, it would spiral down into a vicious circle," Lavrov told reporters.His warning came after North Korean leader Kim Jong-Un ordered missile units to prepare to strike US mainland and military bases, after US stealth bombers flew over South Korea.The high-stakes standoff has its roots in North Korea's successful long-range rocket launch in December and the third nuclear test it carried out in February.Both events drew UN sanctions that incensed Pyongyang, which then switched the focus of its anger to the annual joint South Korea-US military drills.As tensions escalated, Washington has maintained a notably assertive stance, publicising its use of nuclear-capable B-52s and B-2 stealth bombers in the war games.The long-distance deployment of both sets of aircraft out of bases in Guam and the US mainland were intended as a clear signal of US commitment to defending South Korea against any act of aggression.

Russia responds to North Korea

Russia on Saturday called for "maxim responsibility and restraint," after North Korea declared it was in a "state of war" with South Korea and warned Seoul and Washington against any provocation. "We expect all sides to show maximum responsibility and restraint and that no-one will cross the line after which there will be no return," Grigory Logvinov, a Russian foreign ministry pointman on North Korea, told the Interfax news agency."Naturally, we cannot remain indifferent when an escalation of tensions is taking place at our eastern frontiers," the Russian diplomat was quoted as saying. "We cannot but worry."Logvinov said Russia was in "constant touch" with its partners involved in six-party nuclear negotiations, which include the two Koreas, China, the US, and Japan.Separately, the Interfax news agency quoted a diplomatic source as praising South Korea and the United States' positions in the stand-off with North Korea."The situation is, of course, very tense and dangerous but still there are some encouraging moments: The reaction from the United States and South Korea is measured and calm to a certain degree," the source was quoted as saying."It is not the time to breathe fire," the source added. "The time has come for active, non-public diplomacy aimed at searching for a political settlement within the framework of international law including the decisions of the UN Security Council which are binding in nature."North Korea on Saturday declared it was in a "state of war" with South Korea and warned Seoul and Washington that any provocation would swiftly escalate into an all-out nuclear conflict.

The United States said it took the announcement "seriously", but noted it followed a familiar pattern, while South Korea largely dismissed it as an old threat dressed in new clothing.

North Korea threatens to close factory

North Korea on Saturday threatened to shut down a joint industrial complex with South Korea, state media said, in the latest warning from Pyongyang at a time of escalated tensions between the two sides. The threat from the state body in charge of the complex just north of the Korean border followed an announcement by the North on Wednesday that it was cutting its last military hotline with the South."We will relentlessly close the industrial complex if South Korea tries to damage our dignity even a little," the body said in a statement carried by the North's official Korean Central News Agency."We warn that stern measures will be taken if [South Korea] continues to make reckless remarks defaming our dignity," it said, adding the fate of the complex depends "entirely" on the attitude of Seoul.The industrial complex which lies 10km inside North Korea was established in 2004 as a symbol of cross-border cooperation.North Korea has always been wary of allowing crises in inter-Korean relations to affect the zone a crucial hard-currency earner for the communist state.But there had been concerns that operations at the complex would be affected by Pyongyang's move to sever the military hotline used to monitor movement in and out of the zone.The line was used daily to provide the North with the names of those seeking entry to Kaesong, guaranteeing their safety as they crossed one of the world's most heavily militarised borders.Earlier on Saturday North Korea declared it was in a "state of war" with South Korea and warned Seoul and Washington that any provocation would swiftly escalate into an all-out nuclear conflict.It was one of several dire-sounding pronouncements from Pyongyang, recently, that have been matched by tough warnings from Seoul and Washington, fuelling international concern that the situation might spiral out of control.

Venezuela election: Battle between equals

As Venezuela prepares for its first election without Hugo Chavez in years, the opposition hopes to find a level playing field at last. And the government can't help but cling to his legacy. Neither of the candidates in the 14 April election can truly compare to the populist, crowd-wooing people's tribune that was Chavez, who was first elected in 1998 and died of cancer 5 March.With his booming voice and nearly constant tweets, speeches and diatribes against what he saw as US imperialism, he dominated and some would say polarised Venezuela like few others could.Ramon Guillermo Aveledo, head of the opposition coordination group, said his candidate Henrique Capriles, whom Chavez beat in a presidential election last October, "will no longer have as his adversary a living political legend".Instead he faces acting president Nicolas Maduro, the ruling Socialist Party candidate and Chavez's handpicked heir, a former bus driver who worked his way up in politics. He was vice president when Chavez died at age 58."It is a battle between equals. In that sense it is a more conventional situation, like in any democracy," Aveledo, who coordinates the MUD group of opposition parties, said in an interview with AFP.When Chavez was president, he got involved in every election campaign, no matter how small, even down to the municipal level.Now he is gone, but his memory is vividly fresh.And it will overshadow the election so thoroughly that both the government and the opposition reckon that to one extent or another, voters will be casting ballots for or against a man who is dead.Aveledo accused Maduro of deliberately trying to make this another election about Chavez rather than about the issues that Venezuelans face in their day to day life, which he said Maduro is shunning."But Chavez cannot be the focus of this campaign because we are not talking about a government that was, but rather the one that will be," he said.Capriles, a state governor, is focusing not on Chavez but on Maduro and therefore says things like: "Don't hide, don't put on a disguise, Nicolas. This is not about Chavez, but rather you."Indeed, as the country goes to the polls for the second time in just five months, these are uncharted waters for both sides.Since December, when Chavez left for cancer surgery in Cuba and named Maduro as his heir in case he never came back or became incapacitated, the opposition says it has been closely studying the heir apparent."Can Nicolas Maduro get as many people out to vote as Chavez did? No one knows. Will we be able to get as many people to turn out without the incentive of defeating Chavez? No one knows that either," Aveledo said.Polls give Maduro an advantage of more than 10 points.Maduro is not ChavezBut Aveledo urges caution about the numbers because this is a new game for Venezuela and events are unfolding fast from the time of Chavez's death until election a mere 40 days will have gone by."Right now there is no way to take a clear and accurate snap shot of voter intentions," he said.The big question, he said, is this: "How long will it take Chavez supporters to realise something which they know intuitively and which the government already knows, which is that Maduro is not Chavez?"Aveledo said the government has an unfair big advantage in the campaign, which officially begins 2 April. He said the National Election Council has banned some opposition activities and the tone of the race is nasty.Maduro is trying project authority and assert himself because he was personally annointed by Chavez, and feels he needs to take an aggressive attitude to be seen as a strong leader, Aveledo said.In the October elections, Capriles gave Chavez a decent run for his money, winning 44% of the votes, compared to 55% for Chavez.Still, that loss hurt the opposition badly. In state elections held shortly afterwards pro-Chavez people won in 20 of the 23 states where voting was held.MUD is a hodgepodge of political parties united by one thing opposition to Chavez and otherwise riven by internal differences.After the state election fiasco it did a lot of soul searching and managed to unite to nominate Capriles as candidate again, despite his earlier loss."MUD is like an earthquake-proof building. They sway but don't fall," Aveledo aurged. He said the coalition's goals are a large turnout among its people and a high level of abstention among those who backed Chavez."That is what we want and that is what we are striving for," he said.

Obama offers Easter, Passover greetings

US President Barack Obama on Saturday offered Easter and Passover greetings to millions of Americans, urging them to use this time to reflect on the nation's common values. "As Christians, my family and I remember the incredible sacrifice Jesus made for each and every one of us how he took on the sins of the world and extended the gift of salvation," Obama said in his weekly radio and internet address. "And we recommit ourselves to following his example here on Earth.”The president noted that this week, Jewish families are also gathered around the Seder table, commemorating Passover the exodus of Jews from Egypt and the triumph of their faith over oppression. Obama said that common humanity bound all Americans regardless of their faiths. "As Americans, we're united by something else, too: faith in the ideals that lie at the heart of our founding, and the belief that, as part of something bigger than ourselves, we have a shared responsibility to look out for our fellow citizens," he said. The president said these religious celebrations also offered Americans a chance to pause and reflect, to embrace their loved ones, to give thanks for their blessings and "to rededicate ourselves to interests larger than our own”.

Pope to celebrate first Easter vigil

Pope Francis is to celebrate his first Easter vigil on Saturday after praying for peace in a Middle East "torn apart by injustice and conflicts" during Good Friday's ceremonies.The newly elected Argentine pope will preside over a mass at St Peter's Basilica on Saturday evening, baptising four adult converts to the Catholic Church during the service an Albanian, an Italian, a Russian and a US national of Vietnamese origin, according to the Vatican.The ceremony will mark the end of three days of intensive Easter preparations set to culminate on Sunday when the Vatican's first non-European pope in nearly 1 300 years celebrates Easter mass in front of tens of thousands of pilgrims in St Peter's Square. Francis marked Good Friday with a traditional torch-lit ceremony around the Colosseum in Rome, presiding over the re-enactment of Jesus Christ's last hours and praying for Christians in the Middle East and for "our Muslim brothers". "Christians must respond to evil with good, taking the cross upon themselves as Jesus did," said Francis, who followed the ceremony from under a canopy overlooking the 2 000-year-old Roman amphitheatre. The pope also referred to a visit to Lebanon last year by his predecessor Benedict XVI, who stunned the world by resigning last month at the age of 85."We saw the beauty and the strong bond of communion joining Christians together in that land and the friendship of our Muslim brothers and so many others," the 76-year-old pope said. Brazilian, Chinese, Italian, Lebanese and Nigerian faithful took turns carrying a wooden cross around the Colosseum, where it is commonly believed that Christians were martyred. Prayers read out at the ceremony were written by a group of Lebanese young people. The Vatican has voiced concern over the fate of Christian minorities in many parts of the Middle East and the rise of radical Islam, as well as calling for an end to conflict in the region. Vatican spokesperson Reverend Federico Lombardi said the pope had shortened some of the lengthy Easter ceremonies as part of his "desire for simplicity". Helping the poor The pope, the former archbishop of Buenos Aires, was known in Argentina for his humble lifestyle, his outreach in poor neighbourhoods and his strong social advocacy during his homeland's devastating economic crisis.He began the most sacred season in the Christian calendar on Holy Thursday by washing the feet of 12 young prisoners in an unprecedented new take on an ancient pre-Easter ritual. Popes performing the ceremony which commemorates the gesture of humility believed to have been carried out by Jesus for his 12 disciples at their last meal have usually washed the feet of priests. Francis's trip to the Casal del Marmo youth prison was the first time a pontiff had performed the act in a jail, and the first time women and Muslims were included. Latin America's first pontiff has set a markedly different tone from his predecessor, with a more open and informal style that is unusual in the Vatican halls of power.Francis has already broken with several traditions, although he is yet to begin tackling the many problems assailing the Roman Catholic Church, including reform of the scandal-ridden Vatican bureaucracy and bank.

NEWS,13.03.2013

Cardinals opt for seasoned, popular pontiff

In choosing a 76-year-old pope on Wednesday, cardinals clearly decided that they didn't need a vigorous, young pope who would reign for decades but rather a seasoned, popular pastor who would draw followers to the faith.The cardinal electors overcame deep divisions to select the 266th pontiff  Jorge Bergoglio of Argentina in a remarkably fast, five-ballot conclaveBergoglio, who chose the name Francis, became the first pontiff from the Americas and the first from outside Europe in more than a millennium.Looking stunned, Francis shyly waved to the crowd of tens of thousands of people who gathered in St Peter's Square, marvelling that the cardinals needed to look to "the end of the earth" to find a bishop of Rome.Francis asked for prayers for himself, and for retired Pope Benedict XVI, whose surprising resignation paved the way for the conclave that brought the first Jesuit to the papacy."Brothers and sisters, good evening," Francis said to wild cheers in his first public remarks as pontiff."You know that the work of the conclave is to give a bishop to Rome. It seems as if my brother cardinals went to find him from the end of the earth. Thank you for the welcome."Bergoglio had reportedly finished second in the 2005 conclave that produced Benedict - who last month became the first pope to resign in 600 years.After announcing "Habemus Papam" "We have a pope!" - a cardinal standing on the balcony of St Peter's Basilica on Wednesday revealed the identity of the new pontiff, using his Latin name.The longtime archbishop of Buenos Aires has spent nearly his entire career at home in Argentina, overseeing churches and shoe-leather priests.Like other Jesuit intellectuals, Bergoglio has focused on social outreach. Catholics are still buzzing over his speech last year accusing fellow church officials of hypocrisy for forgetting that Jesus Christ bathed lepers and ate with prostitutes.Bergoglio has slowed a bit with age and is feeling the effects of having a lung removed due to infection when he was a teenager.In a lifetime of teaching and leading priests in Latin America, which has the largest share of the world's Catholics, Bergoglio has also shown a keen political sensibility as well as the kind of self-effacing humility that fellow cardinals value highly, according to his official biographer, Sergio Rubin.

He showed that humility on Wednesday, saying that before he blessed the crowd he wanted their prayers for him and bowed his head."Good night, and have a good rest," he said before going back into the palace.Tens of thousands of people who braved cold rain to watch the smokestack atop the Sistine Chapel jumped in joy when white smoke poured out a few minutes past 19:00 local time, many shouting "Habemus Papam!" or "We have a pope!" - as the bells of St Peter's Basilica and churches across Rome pealed.They cheered again when the doors to the loggia opened, and again when Bergoglio's name was announced."I can't explain how happy I am right now," said Ben Canete, a 32-year-old Filipino, jumping up and down in excitement.Elected on the fifth ballot, Francis was chosen in one of the fastest conclaves in years, remarkable given there was no clear front-runner going into the vote and that the church had been in turmoil following the upheaval unleashed by Pope Benedict XVI's surprise resignation.A winner must receive 77 votes, or two-thirds of the 115, to be named pope.For comparison's sake, Benedict was elected on the fourth ballot in 2005 - but he was the clear front-runner going into the vote.Pope John Paul II was elected on the eighth ballot in 1978 to become the first non-Italian pope in 455 years.Patrizia Rizzo ran down the main boulevard to the piazza with her two children as soon as she heard the news on the car radio."I parked the car... and dashed to the square, she said. "It's so exciting, as Romans we had to come."The Vatican spokesperson the Reverend Federico Lombardi said it was a "good hypothesis" that the pope would be installed next Tuesday, on the feast of St Joseph, patron saint of the universal church.Unlike the confusion that reigned during the 2005 conclave, the smoke this time around has been clear: black during the first two rounds of burned ballots, and then a clear white on Wednesday night - thanks to special smoke flares akin to those used in soccer matches or protests that were lit in the chapel ovens.The Vatican on Wednesday divulged the secret recipe used: potassium perchlorate, anthracene, which is a derivative of coal tar, and sulfur for the black smoke; potassium chlorate, lactose and a pine resin for the white smoke.The chemicals are contained in five units of a cartridge that is placed inside the stove of the Sistine Chapel. When activated, the five blocks ignite one after another for about a minute apiece, creating the steady stream of smoke that accompanies the natural smoke from the burned ballot papers.Despite the great plumes of smoke that poured out of the chimney, neither the Sistine frescoes nor the cardinals inside the chapel suffered any smoke damage, Lombardi said.

John Kerry's Norwegian impresses

US Secretary of State John Kerry showed off more of his hidden language skills on Tuesday, revealing he still knew some Norwegian picked up as a boy when he spent a couple of years in Oslo.

And he won praise from his Norwegian counterpart Espen Barth Eide, who said after talks at the State Department that Kerry "can even speak quite [impressive] Norwegian phrases".

America's new top diplomat had tried out some phrases "and we were quite impressed by his memory", Eide told journalists.

During his first overseas trip after taking over as secretary of state from Hillary Clinton, Kerry delighted his European hosts by speaking French, German and Italian on stops in Paris, Berlin and Rome.

The son of an American diplomat, Kerry spent much of his boyhood in Europe as he accompanied his father to various postings.

He told Eide that he had "wonderful memories of Norway" and the times he had spent in the "parks and the fjords there".

Kerry also praised Norway's role on the global stage.

"On almost every challenge or conflict in the world today, Norway plays one of the giant outsized roles of any country on this planet," Kerry said. "I think it's safe to say that Norway is one of the great global citizens."

George P Bush runs for Texas office

 

George P Bush filed paperwork on Tuesday to run for Texas land commissioner next year, hoping to continue his family's two-president political dynasty in one of the country's most conservative states.

Spokesperson Trey Newton told that Bush filed the official paperwork to run for the office, which is a popular stepping stone to higher posts.

Bush is the nephew of George W Bush and grandson of George HW Bush.

An attorney and Spanish speaker whose mother is originally from Mexico, Bush is considered a rising star among conservative Hispanics.

Hispanics accounted for two-thirds of Texas' population growth over the last decade and now make up 35% of its population. They tend to vote overwhelmingly Democratic. Bush is a Republican.

The Texas land commissioner administers state-owned lands and mineral resources.
 
Bush is the son of former Florida Governor Jeb Bush and his wife, Columba, who was born in Mexico.

George P Bush has been active in politics for years. Last summer, he was promoted to deputy finance chairperson of the Texas Republican Party.

Even though he had yet to officially settle on an office, Bush's campaign raised an impressive $1.3m between early November and 31 December.

Current Land Commissioner Jerry Patterson said he believes running with the Bush name is "both a blessing a curse". He described Bush as smart and qualified but stopped short of offering an official endorsement on Tuesday.

Matt Glazer, executive director of the liberal advocacy group Progress Texas, suggested it may be too early to anoint the next Bush a future political force to be reckoned with.

"Serving in elected office is a privilege, not a birthright," Glazer said in a statement. "George Bush must go through the same public screening as any other candidate."

North Korea confirms end of war armistice

 

North Korea confirmed on Wednesday that it had shredded the 60-year-old armistice ending the Korean War, and warned that the next step was an act of "merciless" military retaliation against its enemies.

A lengthy statement by the North's armed forces ministry added to the tide of dire threats flowing from Pyongyang in recent days that have raised military tensions on the Korean peninsula to their highest level for years.
The statement carried by the official Korean Central News Agency argued that the real "warmongering" was coming from the US and its "puppets" in Seoul.
"They would be well advised to keep in mind that the armistice agreement is no longer valid and [North Korea] is not restrained by the North-South declaration on non-aggression," a ministry spokesperson said.
"What is left to be done now is an action of justice and merciless retaliation of the army and people" of North Korea, the spokesperson said.
The North announced last week that it would nullify the 1953 armistice and peace pacts signed with Seoul in protest over joint South Korea-US military manoeuvres that began on Monday.
Because the Korean War was concluded with an armistice rather than a peace treaty, the two Koreas have always remained technically at war.
Voiding the ceasefire theoretically opens the way to a resumption of hostilities, although observers note this is far from the first time that North Korea has announced the demise of the armistice.
The armistice was approved by the UN General Assembly, and both the UN and South Korea have repudiated the North's unilateral withdrawal.
"The terms of the armistice agreement do not allow either side, unilaterally, to free themselves from it," said UN spokesperson Martin Nesirky.
The North has also threatened to launch nuclear strikes against the US and South Korea in response to fresh UN sanctions adopted after the North carried out its third nuclear test last month.
While the threats have been mostly dismissed as bluster, there are strong concerns that the North will attempt some form of military provocation in the coming weeks.
The South's Yonhap news agency on Wednesday quoted a senior military source as saying sorties by North Korean fighter jets in recent days had reached "unprecedented" levels, with around 700 counted on Monday alone.
As well as nullifying ceasefire agreements, the North severed a Red Cross hotline that was one of the few means of communication between Pyongyang and Seoul, which do not have diplomatic relations.
However, a spokesperson for the presidential Blue House in Seoul said a military hotline was still operating.
"The military communication is working normally and we will seek to convey any message to the North via the channel when necessary," she said.
Wednesday's statement by the armed forces ministry was notable for carrying the first official criticism of South Korea's new president, Park Geun-Hye, since she took office a little more than two weeks ago.
While the spokesperson did not mention Park by name, he said the "frenzy" stirred up the "warmongers" in South Korea was orchestrated by the "swish of the skirt made by the owner of Chongwadae [the Blue House]."
He also slammed Park's recent comments that the North's obsession with nuclear weapons would bring about its own collapse as "utter ignorance" and an echo of the "confrontational" policy of Park's predecessor Lee Myung-Bak.
Park had campaigned on a pledge of greater engagement with North Korea, but February's nuclear test put any rapprochement on indefinite hold.

G20 economies grow despite dip in Europe

Economic growth in G20 countries climbed by 0.5% in the fourth quarter of 2012, slowing only slightly from the 0.6% pace recorded in the previous three-month period despite heavy contractions across Europe, preliminary estimates from the OECD showed on Wednesday.
For the full year 2012, the Organisation for Economic Cooperation and Development said that gross domestic product (GDP) in the G20 group of 20 major global economies expanded by 2.8%, down from 3.8% a year earlier.
The OECD said that as economic trends were still diverging widely within the G20 - with China posting the strongest growth in the quarter and Italy dipping deep into negative territory - the aggregate growth rate "continues to mask" mixed patterns among the world's largest economies.
China's economy grew by 2.0% in the fourth quarter compared with the third quarter, while Italy's contracted by 0.9%.
The OECD said that the economies of all of the G20's European members, including Britain, France, Germany and Italy, contracted in the last quarter of 2012 compared with the previous three-month period.
Japan and the United States remained stable however, while emerging economies such as Brazil, India, Korea, Mexico, and South Africa showed higher growth, it said.

Spain's plan to get youth back to work

Spain pledged €3.5bn over four years on Tuesday to easing mass unemployment among the country's youth, as the government tries to stem a relentless tide of layoffs and lengthening jobless queues.
Prime Minister Mariano Rajoy presented 100 different measures including tax breaks for young freelance workers and for companies that hire workers in their twenties.
Many of the measures, such as lower social security payments for young self-employed workers and up-front payment of unemployment benefits for entrepreneurs, had been announced previously.
On Tuesday they were wrapped into a single strategy.
During five years of economic stagnation and recession, Spain's unemployment rate has risen to 26% - the highest level since the 1970s and one of the highest in the European Union - and more than half of 18-25 year olds are out of work.
More and more young Spaniards are studying German and English and heading abroad to find work.
Public anger is growing over austerity measures to tackle government overspending, which have aggravated economic problems, and over €40bn in public debt spent on rescuing banks that loaned too freely to builders during a real estate boom that ended in 2008.
With more than 5 million people out of work, job losses have accelerated in the first months of 2013.
Spain's 35 blue chip companies have announced more than 35 000 layoffs so far this year, compared with 18 000 layoffs by the same companies last year, according to a report in El Economista newspaper.
Rajoy spoke to an audience of union, company and government representatives at the Moncloa government palace.
But labour union leaders did not wait to hear the details before expressing scepticism over the new strategy.
"If the government does not re-orient its economic policy to make growth and jobs a priority instead of deficit cutting, the effects of the plan will have a limited effect and the economic recession and job destruction will continue," Spain's two biggest union federations, CCOO and UGT said in a statement just before Rajoy made the announcement.
Rajoy has said that any stimulus measures for the economy and jobs will not undermine his determination to cut the budget deficit in line with EU demands.
The government has trimmed the budget by tens of billions of euros this year and last, cutting public sector wages and limiting health and education spending at a time when the economy is shrinking an estimated 1.5% per year.
A third of the funding for the jobs plans will come from a European Special Fund, Rajoy said.     

EU to suspend aviation carbon tax

The European Union is set to partially suspend its controversial airlines emissions tax scheme, officials said Tuesday, as part of a bid to push international critics into reaching a global aviation deal.
Since last year, all airlines landing and taking off from EU airports have been liable for their carbon dioxide emissions, a move that infuriated countries such as the United States, China, Russia and India.
But after the bloc's parliament and governments struck a deal on Tuesday, the EU is now set to "stop the clock" for airlines flying intercontinental routes until the International Civil Aviation Organisation (ICAO) holds its general assembly in September.
The suspension should go into effect before April 30, EU parliamentarian Peter Liese said. Internal flights within the EU will continue to be liable for their emissions.
In the past, the EU had justified its decision to proceed unilaterally on aviation emissions by pointing to 15 unsuccessful years of pushing for a global agreement.
"It is now up to ICAO to deliver," said Irish Environment Minister Phil Hogan, whose country holds the EU's rotating presidency. "I hope this ... derogation will serve as an incentive in the negotiations."
"Nobody should put our determination in question to address the problem of aviation emissions," Liese added.
The European Parliament and EU governments still have to endorse the deal reached on Tuesday, but the move usually is a formality.

Putin, Seagal team up for sports

President Vladimir Putin on Wednesday teamed up with American action movie actor Steven Seagal to promote the Soviet-style regime of rigorous physical training for Russian schoolchildren.

Accompanied by the black-clad star of "Under Siege" and "Above the Law", Putin, himself an avid sportsman, toured a newly-built complex at a prominent sambo martial arts training centre in Moscow.
After attending several training sessions, the Russian strongman said too many Russian children were sickly, noting they should take up sports to be able to defend themselves - and the country.
"We should not have any children who, as they say, sit on the bench during physical education classes. Everyone should practise sports, everyone without exception," Putin said at the Sambo-70 sports complex.
Sambo, a mixture of judo and wrestling, was the official in-house martial art of the KGB security services, which Putin practised before switching to judo.
Saying that two-thirds of Russian teenagers suffered from chronic illnesses by the age of 14, Putin called on the government to reintroduce the Soviet-era national fitness programme that used to be known by its abbreviation GTO, or Ready for Labour and Defence.
"Children should become strong, they should be healthy, love sports and have an opportunity to practise them, should know how to defend themselves, their loved ones, their family," Putin said in remarks released by the Kremlin.
"Ultimately, they should be able to defend their motherland."
Putin's spokesperson Dmitry Peskov told Russian reporters that the Russian president and Seagal have been friends "for a long time" and regularly meet.
Earlier in the day, the two men had breakfast at Putin's residence outside Moscow, Peskov was quoted as saying.
In 2010, Putin, then the country's prime minister, visited a championship match of ultimate fighting in the company of Hollywood star Jean-Claude Van Damme.