Showing posts with label brazil. Show all posts
Showing posts with label brazil. Show all posts

Tuesday, August 13, 2013

NEWS,13.08.2013



Recovery signs lift Cameron's poll hopes


Signs of a fledgling economic recovery in Britain have boosted voter trust in Prime Minister David Cameron's financial stewardship, strengthening his prospects ahead of an election in 2015, a poll showed on Tuesday.
The Guardian/ICM survey said that 40% of voters trusted Cameron and his Conservatives on the economy, up sharply from 28% in June, and comfortably ahead of the opposition Labour party, whose economic credentials won approval from just 24% of those asked.
The health of the economy and political parties' perceived ability to nurse it back to sustained growth after three rocky years is likely to be the single most important factor in deciding who wins the 2015 election.
The economy has shown unexpected signs of improvement in recent months with the Bank of England forecasting it will grow by 0.6% during the current quarter, the same as between April and June, and that growth will reach an annual rate of 2.6% in two years' time.
Labour remains a few points ahead of the Conservatives in the opinion polls but has seen its lead shrink after better economic data, even though many economists believe it is too soon to talk of a sustained recovery and are concerned about a possible housing price bubble.
Tuesday's poll put Labour's overall support at 35%, a mere three percentage points higher than the Conservatives.
Cameron, who governs in coalition with the centre-left Liberal Democrats, has put the economy at the heart of his re-election strategy, hoping a strong recovery will materialise and create a feel-good factor that will allow his party to govern alone next time.
According to Peter Kellner, of pollster YouGov, an improving economy poses a problem for Labour leader Ed Miliband.
"Now that Britain's economy has started to recover, he is likely to face a prime minister who can copy one of the slogans that Barack Obama used last year to secure re-election," he wrote.
"The president likened America's economy to a car that his predecessors had driven into a ditch. 'I don't want to give them the keys back,' he said. 'They can't drive'."
Labour, which governed Britain from 1997 to 2010, was in power when the global financial crisis hit and says it was managing the economy well but was knocked off course by events.
The Conservatives say Labour left Britain with its biggest budget deficit since World War Two and cannot be trusted to manage it again anytime soon.
Alastair Campbell, who was former Prime Minister Tony Blair's chief communications adviser, said Labour had allowed the Conservatives to unfairly cast them as the creators of the economic turmoil that followed the financial crisis.
"Britain had 10 good years of growth and prosperity under Labour which is one of the many reasons we won three elections and stopped David Cameron winning a majority," he wrote on his blog.
ICM Research interviewed 1 001 adults by phone on August 9 and 11.

Blasts halt Iraq oil exports to Turkey


Militants on Tuesday bombed a major pipeline carrying oil from northern Iraq to Turkey, stopping exports, a senior official from the North Oil Company official said.
The blast occurred near the town of Albu Jahash in Nineveh province, the official said, adding that production is still continuing, but the oil is being stored instead of exported.
Repairing the pipeline is expected to take between one and three days, the official said.
The 970-kilometre (600-mile) pipeline runs from Iraq's northern oil hub of Kirkuk to the port of Ceyhan on Turkey's Mediterranean coast.
There have been dozens of attacks on the pipeline so far this year, disrupting northern exports.
Oil ministry spokesperson Assem Jihad said earlier this month that Iraq intends to build a new pipeline from Kirkuk to the Turkish border, because the existing one has been repeatedly attacked and to increase Iraq's export capacity.
Iraq is dependent on oil exports for the lion's share of its government income, and is seeking to dramatically ramp up its sales in the coming years to fund the reconstruction of its battered infrastructure.

NSA secrets leaked to 'fearless' journos


US intelligence leaker Edward Snowden said in an interview released on Tuesday he chose to divulge details of a vast US surveillance effort to journalists who reported "fearlessly" on controversial subjects.
Snowden, in the interview released by The New York Times, said he chose documentary filmmaker Laura Poitras and Guardian reporter Glenn Greenwald because they were not cowed by the US government.
"After 9/11, many of the most important news outlets in America abdicated their role as a check to power  the journalistic responsibility to challenge the excesses of government - for fear of being seen as unpatriotic and punished in the market during a period of heightened nationalism," Snowden was quoted as saying in an encrypted conversation with journalist Peter Maass for the Times Sunday magazine.
"Laura and Glenn are among the few who reported fearlessly on controversial topics throughout this period, even in the face of withering personal criticism, and resulted in Laura specifically becoming targeted by the very programmes involved in the recent disclosures."
He said Poitras "demonstrated the courage, personal experience and skill needed to handle what is probably the most dangerous assignment any journalist can be given reporting on the secret misdeeds of the most powerful government in the world making her an obvious choice".
Snowden, who was granted asylum in Russia after spending over five weeks in a Moscow airport transit zone, is said by his lawyers to now be at an undisclosed secret location.
The United States wants to put Snowden on trial for leaking details of vast American surveillance programmes, but Moscow has steadfastly refused to hand him over.
A former contractor, Snowden released details of secret National Security Agency programmes aimed at thwarting terrorism which sweep up vast amounts of phone and internet data.
Snowden said that when he met the two journalists in Hong Kong for a filmed interview, "I think they were annoyed that I was younger than they expected, and I was annoyed they had arrived too early, which complicated the initial verification".
He said Poitras "was more suspicious of me than I was of her, and I'm famously paranoid".
Snowden added that he was surprised that Greenwald did not agree to his requests to encrypt all communications.
"This is 2013, and a journalist who regularly reported on the concentration and excess of state power," he said.
"I was surprised to realise that there were people in news organisations who didn't recognise any unencrypted message sent over the internet is being delivered to every intelligence service in the world."
"In the wake of this year's disclosures, it should be clear that unencrypted journalist-source communication is unforgivably reckless."

Voters mad about NSA spying face battle


Americans are becoming increasingly concerned about government invasion of privacy while investigating terrorism, and some ordinary citizens are finding ways to push back. They are signing online petitions and threatening lawsuits. Some are pressing their providers to be upfront when data is shared with the government, which federal law allows as long as the person isn't being investigated under an active court order.

The question is whether these anti-surveillance voters will be successful in creating a broader populist movement. Many lawmakers have defended the NSA surveillance programme a programme Congress itself reviewed and approved in secret.

And unlike the anti-war effort that rallied Democrats during President George W Bush's administration, and the tea party movement that galvanised conservatives in President Barack Obama's first term, government surveillance opponents tend to straddle party lines. The cause appeals to libertarian Republicans who don't like big government and progressive liberals who do but favour civil liberties. Together, these voters would have little in common otherwise.

Another complication is the potential of another terrorist attack. One spectacular act and public opinion could flip, much as it did after the
11 September 2001, terrorist attacks, back to favouring government surveillance. Politicians know this, with many of them opting to blast the Obama administration for not being more transparent but most opposing an end to broad surveillance powers.

"If in fact something happens, you're basically putting yourself in a position to look like you didn't do something when you should have. And that's got to be in the back of their head," said Ed Goeas, president of the Tarrance Group in Alexandria, Virginia, a Republican survey research and strategy company.

That leaves voter-activists with little to work with, even with national elections next year that expose one-third of the Senate and every member of the House of Representatives to the voters.

Constituents, lawmakers

"I don't believe it's going to be a driving issue" in the upcoming elections, Goeas added. "It's got to be the total picture" on national security that appeals to voters.

At issue is whether the government overstepped its bounds when it began collecting and searching the phone and Internet records of Americans to gather information on suspected terrorists overseas. A Washington Post-ABC News poll released late last month found that Americans are divided over whether they support the surveillance programmes revealed earlier this year, but most Americans 57% still say it's more important for the government to investigate terrorism than to put privacy first.

Like their constituents, lawmakers too are divided. Last month, a House proposal that essentially would have made the NSA phone collection programme illegal failed in a 217-205 vote that didn't fall along party lines. Republican House Speaker John Boehner and Democratic leader Nancy Pelosi were among the 217 who voted to spare the programme.

In the Senate, a small group of lawmakers namely Democratic Senators Ron Wyden and Mark Udall and Republican Senator Rand Paul is taking a stronger line in favour of civil liberties. But progress has been slow, with few co-sponsors joining their legislative proposals to limit NSA spying powers. Meanwhile, such influential senators as Democrat Dianne Feinstein have defended the programme and said Edward Snowden, who leaked details of the NSA programmes, is guilty of treason.

Doug Hattaway, a Washington-based Democratic strategist, said the reluctance by most lawmakers to take sides isn't surprising, considering that most Americans say they want both security and privacy.

"I don't see Democrats benefiting from joining forces with libertarians," he said. "If voters are looking for balance, I wouldn't hop on the bandwagon with Rand Paul."

Not taking it lying down

Another challenge for surveillance foes is that industry isn't exactly fighting back. Technology and phone companies often say they are prohibited from divulging details about government surveillance requests, but that's only partially true. Federal law prohibits alerting customers when they are surveillance subjects as long as a court order remains in effect. But not all gag orders last forever.

But that hasn't stopped some Americans from challenging the surveillance system.

Charlotte Scot, a 66-year-old artist from Old
Lyme, Connecticut, is a liberal who doesn't take things lying down. She moved to Canada in protest when Bush was re-elected in 2004.

So when Scot heard that major telecommunications providers have been turning over data about Americans' phone calls to the government since 2006, Scot demanded that her own phone company tell her what, if anything, it had shared about her.

She soon received a non-response from an unnamed customer service representative informing her how to opt out of its marketing programme, which only made Scot angrier.

"Dear Anonymous," Scot fired back in an e-mail, "I have always opted out of all advertising e-mails. ... However, my question was not about advertising. It was about what information AT&T turns over to the federal government and NSA. I appreciate an answer to this question."

'People are like sheep'

AT&T eventually responded with a link to its privacy policy and a promise that, while it doesn't comment on matters of national security, "we do comply with the law".

When AT&T wouldn't tell Scot whether her information had ever been shared with the government, chances are that's because it didn't want to not because it couldn't.

AT&T spokesperson Michael Balmoris declined to comment on Scot's case in particular or matters of national security. "We value our customers' privacy and work hard to protect it by ensuring compliance with the law in all respects," he said.

Meanwhile, Scot says she can't understand why other customers are not just as angry. She's now looking to switch providers, and has downloaded a mobile application called Seecyrpt that offers encrypted phone calls for $3 a month. But she knows it's unlikely that a majority of Americans will follow her lead.

"I'm just one of these people who gets riled about things," she said.
"People are like sheep."

Kerry defends NSA surveillance programs


US Secretary of State John Kerry defended the National Security Agency surveillance programs on Monday and downplayed their impact on US efforts to deepen relations with two key allies in Latin America.

Brazil and Colombia, two of the United States' closest friends in the region, have been rankled by reports that citizens of Colombia, Mexico,
Brazil and other countries were among the targets of a massive NSA operation to secretly gather information about phone calls and Internet communications worldwide.

The disclosures were made by NSA leaker Edward Snowden.

Kerry sought to play down the rift during a press conference in
Bogota before heading to Brazil on his first trip to South America as secretary of state.

"Frankly, we work on a huge number of issues and this was in fact a very small part of the overall conversation and one in which I'm confident I was able to explain precisely that this has received the support of all three branches of our government," Kerry said.

"It has been completely conducted under our Constitution and the law. ... The president has taken great steps in the last few days ... to reassure people of the
US intentions here."

‘Hotpoint issues’

He referenced the terrorist attacks of
September 11, 2001. "It's obvious to everybody that this is a dangerous world we're living in ... we are necessarily engaged in a very complex effort to prevent terrorists from taking innocent lives."

Colombian Foreign Minister Maria Angela Holguin said
Colombia officials had travelled to Washington to learn more about the surveillance program. "We have received the necessary assurances to continue to work on this," she said through a translator.

In her opening remarks,
Holguin said she appreciated Kerry's efforts to restart the Mideast peace talks.

Kerry said he doesn't think the recent flap over Israeli settlement announcements will derail the second round of
Mideast peace talks this week in the region.

Israel approved building nearly 1 200 more settlement homes Sunday  the third settlement announcement in a week. It fuelled Palestinian fears of a new Israeli construction spurt under the cover of US-sponsored negotiations.

"The announcements with respect to settlements were to some degree expected because we have known that there was going to be a continuation of some building in certain places," Kerry said. "And I think the Palestinians understand that. I think one of the announcements was outside of that expectation and that's being discussed right now."

He restated the
US position that it views the settlements as illegitimate. He said the recent controversy underscored the importance of getting to the negotiating table quickly and resolving the questions with respect to settlements.

"Once you have security and borders solved, you have resolved the question of settlements," he said. "With the negotiation of major issues, these kind of hotpoint issues ... are eliminated as the kind of flashpoints that they may be viewed today."

He said he expected to talk with Israeli Prime Minister Benjamin Netanyahu about the issue later today or tomorrow. "I'm sure we will work out a path forward."

‘Success story’

Kerry arrived late on Sunday in Bogota, the Colombian capital, at a time when the country is holding peace talks to end a half century-old conflict with the Western Hemisphere's most potent rebel army.

The rebel force has diminished in strength thanks in considerable measure to US military and intelligence support. Kerry's discussions in Colombia also focused on trade, energy and counternarcotics and he met with
Colombia President Juan Manuel Santos.

"Colombia is a success story," Kerry said. "The
Santos administration has taken a very courageous and very necessary and very imaginative effort to seek a political solution to one of the world's longest conflicts."

Kerry began the day by having breakfast with two negotiators from the Colombian government, which has been conducting peace talks in Havana, Cuba, with the Revolutionary Armed Forces of Colombia since last year.

Formed in the 1960s, the Farc is the oldest active guerrilla band in the
Western Hemisphere. Observers say the Farc currently has about 8 000 armed fighters.

After breakfast at his hotel, Kerry visited a gymnasium where members of the
Colombia police and army, many who have lost limbs in the conflict, were playing rugby in wheelchairs reinforced with hard plastic instead of spokes. The chairs were designed to take a beating and during the game, and some players collided so violently that their chairs overturned on the court.

Kerry rolled up one of his pants legs, a national show of support for those who have lost their limbs in the fighting.

Before leaving for Brazil, Kerry visited the headquarters of the Colombian National Police Counter-Narcotics Directorate for a briefing on the US-Colombia partnership on fighting drugs, progress that has been made during the past decade, and an update on Colombia's efforts to share its expertise in security work with other countries in the region.

Colombia has helped to train more than 13 000 international police personnel from 25 Latin American countries and more than 20 other countries since 2009.

According to the State Department,
Colombia has seen a 53% reduction in the cultivation of coca since 2007. Last year, Colombian authorities reported a record seizure of 279 metric tons of cocaine and cocaine products in the country and abroad.

The Colombian government has increasingly assumed operational and financial responsibility for many US-backed drug-fighting programs, has worked to dramatically reduce kidnappings and political assassinations and disrupt illegal narcotics trafficking with the help of more than $8.5bn from the
US since 2000.

But
US assistance to Colombia has been gradually decreasing, falling from $287 million in fiscal 2008 to $161 million in fiscal 2012.

US sets up surveillance review body


The Obama administration on Monday launched a formal review of its electronic intelligence gathering that has come under widespread criticism since leaks by a former spy agency contractor.

The Review Group on Intelligence and Communications Technologies will examine the technical and policy issues that arise from rapid advances in global telecommunications, the White House said in a statement.

The group will assess whether US data collection "optimally protects our national security and advances our foreign policy while appropriately accounting for other policy considerations, such as the risk of unauthorised disclosure and our need to maintain the public trust," the statement said.

The high-level group of outside experts has 60 days to deliver its interim findings. A final report and recommendations are due on 15 December.

A separate statement by Director of National Intelligence James Clapper confirmed the review. Neither the White House nor Clapper released details on the size or composition of the panel.

Public trust

In a news conference at the White House on Friday, President Barack Obama vowed to improve oversight of surveillance and restore public trust in the government's programs.

The formal review is one of four measures unveiled by Obama, who said he had ordered a review of the surveillance programs before ex-National Security Agency contractor Edward Snowden leaked secret documents to The Guardian and The Washington Post.

Obama's other measures include plans to work with Congress to pursue reforms of Section 215 of the anti-terrorism Patriot Act that governs the collection of so-called "metadata" such as phone records, and reform of the secretive Foreign Intelligence Surveillance Court, which considers requests from law enforcement authorities on intelligence-gathering targets.

Obama also vowed to provide more details about the NSA programs to try to restore any public trust damaged by the Snowden disclosures.

Civil liberty groups demanded more details on Obama's plans, but WikiLeaks founder Julian Assange has called the announcement "a victory of sorts for Edward Snowden and his many supporters".

The Obama administration has vigorously pursued Snowden to bring him back to the
United States to face espionage charges for leaking details of US surveillance programs to the media. Snowden is now in Russia, where he has been granted a year's asylum.

Monday, August 12, 2013

NEWS,12.08.2013



Investors see riches in luxury US homes


Jan Brzeski stands in a sun-filled, beautifully refurbished living room high in the Hollywood Hills, looking out at a swimming pool and, miles (km) below, stunning views of Los Angeles.
Brzeski is a private money lender running an investment firm in Los Angeles that provides loans to house flippers investors who buy a home, refurbish it, and sell it at a profit. Many flippers turn to money lenders because they cannot get banks to provide such short-term, quick financing.
Standing with Brzeski is Scott Ryan, the realtor who bought this four-bedroom, five-bathroom house in December 2012 for $1.5m  with money lent by Brzeski and has transformed it with another $600 000. This week the property will go on the market at $3.295m.
"People will come in here and fall in love," Ryan said, with a house flipper's standard issue optimism. "This is an emotional sale. If it takes a week to sell, I will be surprised. There are a lot of young, wealthy people here, and a lot of money out there."
Eighteen months ago Brzeski and his firm, Arixa Capital Advisors, were lending investor money to flippers on very different properties: $250 000 single family homes in southern California's up-and-coming lower- to middle-class blue-collar neighborhoods. Most of the deals involved foreclosed homes that were totally refurbished, and then sold quickly.
No more. Brzeski now focuses on developers working on high-end flips of mansions and townhouses in exclusive neighborhoods, such as the Hollywood Hills and Bel Air.
And he is not alone. There has been a surge in high-end and luxury flipping nationwide. Between 2011 and today, flips of homes valued at $1m or more have risen almost 40% across the United States, according to RealtyTrac, the housing data company.
Between 2011 and 2012, high-end flipping soared 456% in Phoenix (150 properties from 27); 867% in Orlando (29 homes from 3); and to 73 properties from 10 in Las Vegas, according to RealtyTrac. To qualify as a flip for the figures, a home has to be bought and sold within six months.
Brzeski says two main factors combined to send him upmarket in the projects he lends on.
Newly flush Wall Street investors moved into the mid-market with so much money that they bought nearly every foreclosure in sight, mostly to rent.
The Blackstone Group, for example, spent $5.5bn on 32 000 homes across America, according to the firm.
American Homes 4 Rent, the California-based real estate investment trust founded by self-storage billionaire Wayne Hughes, spent $3.3bn, on more than 19 000 houses.
"These Wall Street guys employed huge dollars," Brzeski said. "These firms came to the courthouse steps and bought everything in sight. So the low- to mid-market dried up."
Brzeski said he had originally been wary of the high-end market, because of the much bigger sums involved and thus greater risk. But then in 2011 he financed the purchase of a house in West Hollywood for $1.425m. Another $1.175m was spent on a total refurbishment.
"When the developer put it on the market, they had multiple, all-cash offers," he said. "There was a line out the door to buy it. It sold for $3.5m. This was an incredibly profitable project. This really opened my eyes."
The house was bought by actress Sarah Gilbert, who became famous on the television sitcom "Roseanne."
Daren Blomquist, RealtyTrac's vice president, said: "Flippers are getting more confident that the market is really recovering, and therefore are more willing to go high-end, even though it's more risky."
Blomquist said with the stock market doing so well, there is a lot of investor cash out there, and a huge amount of wealth and pent-up demand at the high-end of the market. When a beautifully refurbished mansion hits the market, they are snapped up, often with all-cash offers, he said.
Foreign investors are also spending billions on the US property market. Last year, Chinese investors spent $12bn on US real estate, making the country the second-biggest foreign investor, just behind Canada, according to the National Association of Realtors.
Blomquist also sounded a warning for anyone who thinks flipping is easy. Many who try, suffer catastrophic losses.
"It's 10 times as risky doing high-end flips. Unfortunately what happens a lot of times, flippers have a property, then they can't find a buyer to purchase it."
Brzeski's business model is simple. Using a fund of investor money he lends 75 percent of a project's "hard costs" - that is money used for the purchase and refurbishment - and collects interest at an annual rate of approximately 10%.
Usually the loan is repaid within six to 12 months. He does not share in the profit made by the flip. Brzeski loans between $1m and $4m on each project.
Another factor, unique to California, helps him fund luxury flips, said Brzeski. Because of a 1978 voter initiative law knows as Proposition 13, the tax assessments of California houses have increased dramatically less than home values since the law was enacted, as long as the home has remained unsold.
Now, owners who had been reluctant to part with their large homes since the early 1970s because of "Prop 13" are dying, or are finally ready to downsize.
"Almost all our homes in these A and A-plus neighborhoods have something in common. You look at the appliances in the kitchen. If they are from the 1960s or 1970s, that's the house to flip," Brzeski said.
Across the country, close to Washington, DC, Chris Haddon works for Hard Money Bankers. They provide money for investment deals on "fix and flip" projects in Washington, Maryland and Virginia.
Haddon says he, too, has seen a surge in deals involving high-end properties.
"A few years ago, you would look at a $2m property and have no idea how long it would take to sell. The high-end market is always the last to rebound. But it's now rebounded and DC is hot."
In Miami, Mark Black, a realtor, said people with cash have been moving into the high end of the market in the past year.
"The market has gone through the roof. You see people buying properties one year ago and selling them at 20, 30% profit. Some of these are no more than paint jobs. The ones that are doing big rehabs are making huge profits."
In Manhattan, Tim Desmond, a realtor with luxury realtors Stribling, said high-end flips in New York are not for the faint of heart, but the profits can be huge.
He cited a 12 000-square-foot (1 115-square-meter) home on Manhattan's East 56th Street that was bought by an investment group for $10m. It took two years to convert it into two, three-story, 6 000-square-foot (557-square-meter) condominiums. The first is now on the market with a $17m price tag.

US clown with Obama mask draws criticism



A clown wearing a President Barack Obama mask appeared at a Missouri State Fair event this weekend, and the announcer asked the enthusiastic spectators if they wanted to see "Obama run down by a bull".

The state's second highest-ranking official, Lieutenant Governor Peter Kinder, denounced the performance in a tweet on Sunday. He said it was "disrespectful" to the president.

"We are better than this," the Republican tweeted.

State Fair officials on Sunday said the show was "inappropriate" and "does not reflect the opinions or standards" of the fair.

It wasn't clear if any action will be taken against the performers.

Perry Beam, who was among the spectators, said "everybody screamed" and "just went wild" as the announcer talked about having the bull run down the clown with the Obama mask.

'Klan rally'

"It was at that point I began to feel a sense of fear. It was that level of enthusiasm," Beam said.

He said another clown ran up to the one wearing the Obama mask, pretended to tickle him and played with the lips on the mask. About 15 minutes into the performance, the masked clown had to leave after a bull got too close, Beam said.

"They mentioned the president's name, I don't know, 100 times. It was sickening," Beam said. "It was feeling like some kind of Klan rally you'd see on TV," he said, referring to the Klu Klux Klan, which terrorised African-Americans for decades.

Officials with the
Missouri Rodeo Cowboy Association, the organisation that co-ordinated the rodeo, did not return phone calls seeking comment on Sunday.

After Beam and his family returned home, he posted a photo of the clown in the Obama mask on his Facebook page. The photo and the posting were then promoted online by a blog, Showmegrogress.com, which elicited a huge response Sunday on Twitter.

Scott Holste, spokesperson for Missouri's Democratic Governor Jay Nixon, said on Sunday in an e-mail that Nixon "agrees that the performance was disrespectful and offensive, and does not reflect the values of Missourians or the State Fair".

Gibraltar: UK mulling action against Spain


The British government is considering taking legal action against Spain over stringent border checks imposed at the border with Gibraltar, a spokesperson for Prime Minister David Cameron said on Monday.

The spokesperson said the checks by Spanish guards, which have caused tailbacks of several hours at the border of the British-held territory, were "politically motivated and totally disproportionate".

"Clearly the prime minister is disappointed by the failure of
Spain to remove the additional border checks this weekend," the spokesperson told reporters.

"We are now considering what legal action is open to us.

"This would be an unprecedented step so we want to consider it carefully before a making a decision to pursue."

Britain and Spain are embroiled in an increasingly tense diplomatic spat over Gibraltar, a tiny self-governing British territory at the southern tip of
Spain.

Gibraltar has accused Madrid of imposing the checks in retaliation for its construction of an artificial concrete reef off its coast, which it says is aimed at stopping alleged incursions by Spanish fishing boats.

Madrid claims the border checks are necessary to combat smuggling and that the reef is a deliberate impediment to Spanish fishing vessels in a dispute over territorial waters.

A handful of British warships began setting sail for the
Mediterranean on Monday on what the defence ministry stresses is a routine exercise that was planned months ago.

But one of the ships is set to dock in
Gibraltar later this week in a move that is being seen by Spanish media as an act of intimidation.

Cultural Revolution: Ageing Chinese sorry


As a teenager radicalised by China's Cultural Revolution, Zhang Hongbing denounced his mother to the authorities. Two months later a firing squad shot her dead.

Now after more than 40 years of mounting guilt, Zhang has ruffled the silence that cloaks
China's decade of turmoil with a public confession.

Such rare apologies have been welcomed as a potential gateway to the collective soul-searching that could bring healing  but is blocked by a ruling Communist Party whose critics say is unwilling to confront its own responsibility.

"Back then everyone was swept up and you couldn't escape even if you wanted to. Any kindness or beauty in me was thoroughly, irretrievably 'formatted'," Zhang told the
Beijing News last week.

"I hope that from my self-reflection other people can understand what the situation was like at that time."

The 1966-76 Cultural Revolution, unleashed by then-leader Mao Zedong to reassert power after the famines caused by his disastrous Great Leap Forward, inflicted myriad personal tragedies and threw society into chaos.

Winds of change

"Red Guard" youths abused their elders - officials, intellectuals, neighbours, relatives - dragging them into "struggle sessions", ransacking their homes and driving some to suicide.

Many targets were jailed or killed, and while no official figure has been issued, one Western historian estimated half a million people died in 1967 alone.

Zhang reported his mother in 1970 for criticising Mao, and military officials came to their home, assaulted her and took her away.

But as the political winds changed - a few years after the Cultural Revolution ended, a court in his native central
Anhui province recanted his mother's sentence - Zhang began to rethink as well.

"I will never forgive myself," he said.

Only a handful of public confessions have appeared, mostly in recent years as the Revolution's once-heady teenagers enter their 60s.

Embracing apologies

Wen Qingfu from the central
province of Hunan cited age as a spur for admitting in an essay in June that, following orders, he once led a mob to storm the home of a teacher whose son he often played with.

"When people get old they look back and reflect," he told a provincial newspaper. "If I didn't apologise now we would both get too old."

Wen acted in time to see his victim's daughter reply in a public letter on behalf of her frail mother: "You can let go of your guilt."

Many Chinese have embraced these apologies, even though wide airing of past wrongs might invite a spate of legal action, said Ding Xueliang, a Cultural Revolution expert at
Hong Kong University of Science and Technology.

In a rare trial stemming from the era, a court in
Zhejiang province in April sentenced a man in his 80s to 42 months in prison for a 1967 murder.

Still, Ding said, "the positive consequences would go far beyond the negative ones... to collective soul-searching, to build a more law-based society".

Basics

But
China's ruling party prohibits such discussion, which would inevitably broach the question of its own ugly role. Any trial or apology tends to skirt around this central issue, say academics.

"Individual responsibility is one part of this," said Xu Youyu, a researcher at the
Chinese Academy of Social Sciences.

"Some things are basic, for example, you can't hit people or humiliate or persecute them."

But the confessions "have not touched on the more important or fundamental issues", he said, and if they did, "there might be a question of whether the discussion could continue".

Shortly after Mao died in 1976 the campaign was ended, and the authorities hung blame on the controversial Gang of Four leaders headed by Mao's wife Jiang Qing, jailing them in 1980.

The following year the official party line declared that the Cultural Revolution had dealt
China "the most severe setback and the heaviest losses" since the founding of the People's Republic in 1949.

No museums

Mao was deemed to have been 70% right and 30% wrong, having made "gross mistakes" but far greater contributions.

And with that a curtain over the matter was drawn.

Former premier Wen Jiabao briefly referenced the period last year, warning that
China should never retread such "historical tragedies".

The remark - seen as a rebuke to the recently disgraced leader Bo Xilai who had championed "red revival" - heartened those who support freer discussion of the decade, but the impact of Wen's words ended there.

Virtually no museums, memorials or films in
China explore the Revolution, except for little-known private efforts such as one museum in southwestern Sichuan province that refers discreetly to a "Red era".

In a public apology published in June, Liu Boqin of
Shandong province in the east detailed his crimes and listed his victims, but only vaguely referenced the political directives that drove him.

Instead he cited "youth and ignorance, being incited, wicked, not distinguishing right and wrong" for having hounded teachers and vandalised homes.

"Although being swept up in the environment of the Cultural Revolution was one reason," he wrote, "I as an individual bear responsibility for my evil actions."

Chilly reception for Kerry?


US Secretary of State John Kerry's trip to Colombia and Brazil this week builds on efforts to deepen relations with Latin America, but he can expect a curt reception from the two US allies after reports that an American spy programme widely targeted data in emails and telephone calls across the region.

On Kerry's first visit to South America as the Obama administration's chief diplomat, the disclosures by National Security Agency leaker Edward Snowden could chill talks on trade and energy, and even discussions about the 23 October state dinner that President Barack Obama is hosting for Brazil's president, Dilma Rousseff.

"I don't think this is going to be a warm 'abrazo'," said Michael Shifter, president of the Washington-based Inter-American Dialogue, using the Spanish word for "hug". ''I think it will be businesslike."

Kerry arrived late on Sunday in
Bogota, the Colombian capital. The country is holding peace talks to end a half century-old conflict with the Western Hemisphere's most potent rebel army, a rebel force diminished in strength thanks in considerable measure to US military and intelligence support.

The
US wants to show its support for the peace talks between the Colombian government and the Revolutionary Armed Forces of Colombia, or Farc, which are taking place in Cuba.

Colombia is one of the United States' closest allies in the region, but the reports about the spying programme have rankled Colombian officials.

Clarification on intelligence-gathering

Brazil's O Globo newspaper reported last month that citizens of Colombia, Mexico, Brazil and other countries were among the targets of a massive NSA operation to secretly gather information about phone calls and Internet communications worldwide. The reports were based on information provided by Snowden.

Colombia's president, Juan Manuel Santos, said on Thursday that he wanted clarification from
Washington on whether US intelligence-gathering in Colombia had overstepped the countries' joint operations against drug traffickers and illegal armed groups. The US has supplied Colombia with eavesdropping equipment, technicians and aerial surveillance.

Santos said in an interview with The Associated Press that Vice President Joe Biden called him about the issue following revelations by Snowden that US digital snooping has targeted allies as well as foes. Santos said Biden offered a series of technical explanations. Asked if he was satisfied with them, Santos replied, "We are in that process."

Biden also called Rousseff to express what Brazil's communications minister, Helena Chagas, said was "his regret over the negative repercussions caused by the disclosures". Biden invited Brazilian officials to
Washington to get details about the spy programme.

Rousseff told Biden that the privacy of Brazilian citizens and the country's sovereignty cannot be infringed upon in the name of security, and that
Brazil wanted the US to change its security policies and practices.

Last week,
Brazil's Foreign Minister Antonio Patriota was at the United Nations with counterparts from other South American nations to express their indignation about the spy programme to UN Secretary-General Ban Ki-moon.

Anti-government protests

The Obama administration has worked to forge stronger ties with
Latin America. In May, Obama took a three-day trip to Mexico and Costa Rica. Biden has visited Colombia and Brazil, where he said stronger trade ties and closer cooperation in education, science and other fields should usher in a new era of US-Brazil relations this year.

Brazil has received much attention in recent months because of Pope Francis' visit and preparations for the 2014 World Cup and the 2016 Olympics to be held in Rio de Janeiro.

Thousands of demonstrators have staged anti-government protests since June demanding better public services in return for high taxes they pay. Under considerable domestic pressure, Rousseff announced a $4bn programme to improve transportation, sewage and public housing in
Sao Paulo, Brazil's largest city.

The protests have weakened her domestic support, but she can bolster her poll numbers with a strong stand against the US over the spying allegations, said Carl Meacham, former Latin America adviser on the Senate Foreign Relations Committee and director of the Americas Programme at the Centre for Strategic and International Studies in Washington.

"I think the tone of the visit will be a bit tense because of these issues raised by the surveillance [programme] and I think Secretary Kerry will have to speak to that," he said.

Monday, July 29, 2013

NEWS,29.07.2013



Amazon hiring thousands of people


Amazon announced plans Monday to add 5 000 full-time jobs at 17 facilities in the United States and to hire more than 7 000 workers as it beefs up its customer-service network.
The online retail giant is creating jobs as it expands its distribution network to speed up deliveries. The facilities in 10 states across the country, from South Carolina to California.
Amazon said that more than 5 000 jobs were now available across its warehouse network, touting pay that is 30% higher than that of traditional retail stores.
"In the last year alone, Amazon opened eight fulfillment centers in the US, resulting in thousands of new jobs being added to communities nationwide," the company said in a statement.
The Seattle-based retailer also said it was currently hiring in four states for more than 2 000 jobs in its customer service network, which includes a mix of full-time, part-time and seasonal jobs.
Amazon shares fell 0.9% in morning trade in New York.

China agrees to talks on wine dispute


China and the European Union have agreed there is a "window for discussions" to try to resolve accusations that Europe is dumping wine in China, the EU's trade chief said on Monday.
The agreement is part of a deal announced at the weekend to defuse a row over dumping of Chinese solar panels in Europe, the biggest trade dispute yet between the two economies.
Responding to the EU's initial plan to impose punitive duties on solar panels, China launched an anti-dumping inquiry into European wine sales, which would lead to retaliatory duties on exporters in France, Spain and Italy.
"There is a window for discussions between the European Union and Chinese (wine) producers," EU Trade Commissioner Karel De Gucht told a news conference. "The Chinese government has promised to facilitate such discussions," he said.
EU and Chinese diplomats expect the wine dispute, as well as another conflict over EU exports of polysilicon a raw material for solar panels to be dropped as a goodwill gesture.
China is the world's biggest importer of Bordeaux wines and consumption soared 110% in 2011 alone.
China's commerce ministry could not confirm any freeze to the EU wine investigation, the website associated with the Communist Party mouthpiece the People's Daily reported on Monday, citing an unnamed official.
A lawyer representing the Chinese industry association that filed the wine complaint said the firm had not received any notice on the freezing of the probe, the website www.people.com.cn said.
"The relevant investigation is still proceeding regularly," Yao Fengwen, a lawyer with Bo Heng (Beijing B&H Associates) law firm, told the site.
Germany's Wacker Chemie is the world's second biggest maker of polysilicon and would be hurt by any tariffs in China.

Foreign firms win $22.5bn Saudi contracts


Saudi Arabia has granted three foreign consortium's contracts worth $22.5bn (€16.9bn) to build a Riyadh metro, the kingdom announced at a news conference in the capital late Sunday.
The consortiums are led by US, Spanish and Italian firms.
The 176-kilometre (110-mile) six-line network is aimed at easing chronic traffic congestion in Riyadh, a city of six million people.
A consortium led by US engineering giant Bechtel Corp will construct two lines worth $9.45bn, the official SPA news agency reported.
Spanish BTP-FCC consortium will build three of the metro lines for $7.88bn, after it beat competition from South Korea's Samsung, France's Alstom and Freyssinet, and Dutch group Strukton to secure the deal.
Another line costing $5.21bn went to Italy's Ansaldo.
The lines are planned to stretch across the capital and serve the airport and the future King Abdullah Financial District.
Oil-rich Saudi Arabia also plans to invest billions of dollars in rail networks linking major cities across the vast desert kingdom.
The kingdom already has a 449-kilometre passenger line between Riyadh and Dammam in Eastern Province, with a parallel freight line linking the capital with the Gulf coast city.

Focus on emerging markets


Fickle investors have spurned emerging markets in recent weeks, but this route has obscured a more alluring vista out on the horizon.
Developing economies now account for 50% of global output and 80% of economic expansion, and are projected to continue growing far faster than developed nations. They are expected to possess an even larger share of global growth, wealth and investment opportunities in years to come.
So much so that the labels investors use to classify some of these nations will change as the developing develop and the emerging emerge into more potent economic powers.
But this long-term view has been lost on many of those who look to emerging market assets for a higher yield in the short term. Their ardour cooled when the Federal Reserve signalled it may soon ease the stimulus that has kept credit cheap, heralding higher interest rates ahead.
That was coupled with signs of slower growth in key emerging markets like China and Brazil.
Still, the developing world's gross domestic product growth of 5.0% this year and 5.4% next, as projected by the International Monetary Fund, will far outpace the advanced economies' 1.2% and 2.1%.
Developing countries are now also better armed to keep panic at bay, with more foreign exchange reserves than before and less aggregate debt than developed nations. Many have put their economies on firmer foundations.
Fear of a mass exodus of investors, however, has still sent emerging market shares down about 10% in the past two months, as measured by the MSCI Emerging Markets Index, compared with a marginal rise in the Standard & Poor's index of US shares.
Consider some other data that the World Bank has crunched, suggesting developing nations will attract increased capital flows because their growth implies big investment opportunities, improved creditworthiness and the ability to better diversify portfolios and manage risk.
According to one bank report, by 2030 developing countries will represent two-thirds of all global investment, up from about half today and from one-fifth in 2000.
At that time, half the global stock of capital is expected to reside in the developing world, compared to less than one-third today. That means a shift in the distribution of wealth and in the creation of opportunity.
This shift in investment activity coincides with the catch-up growth that began during the 1990s, as developing nations integrated into global markets, transformed their economies and improved their institutions, Hans Timmer, director of the World Bank team that produced the report, said.
"Productivity catch-up, increasing integration into global markets, sound macroeconomic policies and improved education and health are helping speed growth and create massive investment opportunities, which, in turn are spurring a shift in global economic weight to developing countries," the report said.
And to be clear, this is investment in buildings and machinery, not the more flighty financial flows.
The Bric nations (Brazil, Russia, India and China) are expected to loom large. China will make up 30% of all investment activity, while Brazil, India and Russia together will account for more than 13% of global investment in 2030, edging the 11% projected in the United States.
But their growing importance as sources and destinations of capital flows will not be a Bric story alone, the report says. It calls out sub-Saharan Africa, for example, which can be expected to not only receive a growing volume of capital flows but also to attract an increasing share of the total capital flows to developing countries.
The bank's researchers forecast that developing countries will likely have the resources needed to finance massive future investments for infrastructure and services.
That's predicated on strong saving rates, expected to top out at 34% of national income in 2014 and averaging 32% annually until 2030. Meanwhile, the saving rate for high-income countries will fall from 20% to 16%.
In aggregate terms, the developing world will account for 62-64% of global saving of $25-27trn by 2030, up from 45% in 2010.
This points to greater wealth in the developing world as a percentage of the global total: the average per capital income of the developing world is expected to rise from about 8.0% of that in high-income countries in 2010, to about 16% by 2030.
The average citizen of what is now a developing country, according to one bank scenario, will earn 19% of the income of an average high-income country citizen by 2030.
Indeed, one McKinsey study projects more than half the world's population will have joined the consuming classes by 2025, boosting consumption in emerging markets to $30trn a year. It will, the report says, be nothing short of the "defining growth opportunity of our times".
Seizing on this theme, Bhaskar Chakravorti and Gita Rao, writing in Foreign Affairs recently, pointed to the hand-wringing over the decline of American power and urged US businesses to compete in emerging markets to help themselves grow, hire again and create wealth.
Another fan with a long lens is Mark Mobius, chairperson of the Templeton Emerging Markets Group, who wrote last month that commodities, exports and infrastructure development could continue to be leading growth drivers in many emerging economies, but overall growth is likely to arise increasingly from healthier domestic demand.
"Expanding consumer wealth is creating an increasingly large and discriminating body of middle class consumers across emerging markets, and their demand is, in turn, creating increasingly significant domestic economic activity," Mobius said. "
"With a relatively high proportion of the population in emerging markets moving into the workforce and a relatively low proportion of dependents, demographics are acting to reinforce consumer demand."
These forecasts are not unconditional. Some risks will reduce over time. Others will increase.
The countries must continue to drive increases in productivity and attract investors to finance the investments, the bank's report says.
There is also an assumption that some of markets will have addressed some of the hurdles to invest now which variously include poor governance, lax enforcement of contracts and property rights, corruption, lack of adequate infrastructure and distribution networks and uneven pipeline of talent.
In addition, as emerging economies develop, their financial markets integrate more into global ones, and they ease restrictions on capital that flows across their borders. It then  becomes more difficult to shield them from international shocks, the World Bank's Timmer said.
They can mitigate those shocks as alternatives to the dollar rise, and as they build reserves in other currencies like the euro and the yuan.
There are other challenges that concern Neil Shearing, chief emerging markets economist at Capital Economics in London. The first, already well known in China, is the need to reposition economies to be more consumer-driven and less dependent on exports.
The second is avoiding the kind of investment bubble created in the eastern European property market - which burst a few years ago.
"If the investment is in glitzy shopping malls," Shearing told me, "it can create bubbles and be dangerous. Whereas investment in China is excessive but in roads, railways and ports that you do want to look for."
Growth may slow, and challenges will abound, but the prospects loom large. And therein lies opportunity.

Gas flows from Myanmar-China pipeline


Gas has started flowing to energy-hungry China through a pipeline from Myanmar, Beijing's official media reported, in a major project that highlights their economic links even as political ties come under pressure.
The 793-kilometre (492-mile) pipeline runs from Kyaukpyu on resource-rich Myanmar's west coast, close to the offshore Shwe gasfields, and across the country.
It enters southwest China at Ruili, near areas where heavy clashes between the rebel Kachin Independence Army and the Myanmar military were reported earlier this year.
As well as diversifying China's sources of fuel, by supplying energy to the vast and less developed west it could help Beijing's attempts to promote economic growth there.
It went into operation on Sunday at a ceremony in Mandalay, the official Xinhua news agency reported. "When torches flamed in the sky.... a storm of applause and cheers broke out," it said.
But the controversial project is the fruit of Beijing's long allegiance with the military junta that ruled Myanmar for decades, a bond that is weakening as the reforming government opens up to the West.
In an editorial on Monday China's Global Times newspaper, affiliated with the ruling Communist Party, said: "This is another breakthrough in China's strategy of energy diversification and has obvious significance in reducing China's dependence on the Strait of Malacca for the import of oil and natural gas."
Construction began in June 2010, according to China National Petroleum Corporation, the key investor. A parallel oil pipeline is also part of the project.
According to Xinhua, the gas pipeline will be able to carry 12 billion cubic metres annually, while the crude oil pipeline has a capacity of 22 million tonnes per year.
Under military rule Myanmar was a pariah state largely isolated from the rest of the world and subject to heavy international sanctions, but it maintained close economic links with China, which for years was its major foreign influence.
Now, with Myanmar which also includes tin and precious gems among its natural assets opening up politically and economically, more countries are setting up operations and seeking deals that sanctions had previously prevented.
"Myanmar used to be sanctioned by the West and China was its only friend," the Global Times editorial acknowledged.
"Nowadays, it has opened more to the West. This will reduce its passion in cooperating with China, but does not mean it will set itself against China."
But in a warning that Beijing expects its economic interests to be protected, the newspaper cautioned Myanmar that it must ensure agreements regarding the project are fulfilled, no matter who eventually leads the country, where democracy activist Aung San Suu Kyi has entered parliament.
"China should be determined to supervise Myanmar in doing so," the paper said. "Myanmar should hold a serious attitude toward China, and Chinese will take (the Myanmar) people's attitude toward the pipeline as a test of their stance on China."
Chinese nervousness about its investments in Myanmar comes after Naypyidaw said last week it had revised a controversial copper mine agreement with a Chinese company, after dozens of Buddhist monks and villagers were injured in a botched police raid.
Myanmar Minister of Mines Myint Aung told parliament that new terms gave the government 51% of the revenue, replacing a previous deal that was a joint venture between the Chinese firm and a holding company owned by the Myanmar military.
In 2011, Myanmar President Thein Sein stopped construction on the China-backed $3.6bn Myitsone Dam on the Irrawaddy river amid public opposition to the project, a move that led Beijing to call for its companies' rights and interests to be protected.
The Shwe Gas Movement, a campaign group, says the pipeline project has sparked protests over issues including demands for higher salaries for local workers, and concerns among farmers about its environmental impacts.
Myanmar plans to renegotiate billions of dollars of natural resource deals as it imposes tougher environmental standards and clamps down on corruption, the US-based Asia Society said in a report last month.