UK forces oppose Niger Delta plan
By James Blitz and William Wallis in London
Published: July 11 2008 21:31 | Last updated: July 11 2008 21:31
Gordon Brown faces strong resistance to his plan to help Nigeria restore order in its main oil-producing region, with Britain’s defence chiefs fearing it would further stretch their resources.
The UK prime minister, who is to meet Umaru Yar’Adua, the president of Nigeria, in London next week, said he wanted to assist in protecting pipelines and shipping lanes in the Niger Delta.
He is considering offering maritime training for the Nigerian armed forces to make oil installations less vulnerable to looting.
The plans do not include deployment of British troops in significant numbers, but the country’s defence ministry is said to be resistant, warning it might further stretch military resources.
“This idea is not about sending in more troops, but it would still mean gifting the Nigerians with stuff, giving them kit,” said a senior Whitehall official. “As a result there is a bit of a spat going on over what the prime minister wants to give and what the MoD is willing to do.”
Mr Brown believes it is important to shore up security in the region because of the impact of lawlessness on Nigeria’s oil supply. Unrest in the delta has cut its capacity to pump oil by a quarter in recent months, helping to drive up world oil prices.
However, the idea of boosting maritime training for the Nigerian armed forces must overcome several hurdles if it is to be realised, not just the MoD’s resistance.
British officials admit it is far from clear whether Mr Yar’Adua would accept such an offer. “We want a conversation with him where we say that we want to help and look at a range of things on offer,” said a Downing Street official.
The plan has received a mixed response in Nigeria, where one official said the authorities were hoping for help in curtailing an international cartel trading in stolen Nigerian crude.
“The networks compromising security in the delta now go beyond our national boundaries. There is an international dimension to this,” the Nigerian official said.
Every day more than 100,000 barrels of Nigerian oil are illegally tapped and traded, the proceeds of which help to finance the insurrection, which compromises the state’s ability to restore order.
Mr Yar’Adua last week called for the creation of a system to track crude oil that would be similar to the Kimberley process set up to curb the trade in conflict diamonds.
On Thursday, the Movement for the Emancipation of the Niger Delta, the main group vying for a greater share of wealth and power in the region, called off a unilateral ceasefire and warned that if Britain stepped in to assist the government, “UK citizens and interests in Nigeria will suffer the consequences”.
Defence experts believe any action in Nigeria would further stretch UK forces. Sir Jock Stirrup, air chief marshal and chief of the defence staff, said last month that Britain’s military was already “very stretched”, with thousands of troops on tour in Iraq and Afghanistan.
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Nigeria's top building firm seen pulling out of delta
Reuters
By Nick Tattersall Reuters - 2 hours 3 minutes ago
LAGOS (Reuters) - Nigeria's biggest construction firm, Julius Berger , is set to pull out of the oil-producing Niger Delta because of the deteriorating security situation there, a senior security source said on Saturday.
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Gunmen kidnapped two Germans working for the firm, the Nigerian unit of German builder Bilfinger Berger , on Friday, blowing their armoured vehicle off the road with dynamite and killing a soldier in their convoy.
It was the latest such attack on expatriates working in the Niger Delta, the home of Africa's biggest oil industry, which has become notorious for kidnappings and attacks on oil sites since militants launched a campaign of sabotage two years ago.
"Julius Berger will withdraw from the Niger Delta due to the security environment and the brutal attacks," the security source, who works in the delta, told Reuters.
Officials from the company were not immediately available to comment.
A withdrawal by Julius Berger from the delta would be an embarrassment to the government of President Umaru Yar'Adua, who is under international pressure to end insecurity in the region.
It would also hamper development. Julius Berger is rebuilding the main east-west road across the Niger Delta and is one of Nigeria's biggest private sector employers, with more than 16,000 staff.
The bombing of oil pipelines by militants who say they are pushing for a fairer share of Nigeria's natural wealth has cut the country's oil output by around a fifth since early 2006, helping drive global crude prices to record highs.
But rank criminality has increasingly replaced political militancy as the main source of unrest.
Armed groups have mushroomed, funding themselves by trading stolen oil and taking advantage of the breakdown of law and order to extort hefty ransoms for kidnapped foreigners, as well as local politicians and businessmen or their relatives.
Yar'Adua has pledged a two-pronged approach, saying he will not tolerate the presence of armed groups, but also saying he wants to address the frustrations of impoverished communities by developing local infrastructure.
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National unity cabinet for Lebanon
By Ferry Biedermann in Beirut
Published: July 11 2008 23:30 | Last updated: July 11 2008 23:30
Lebanon on Friday announced the formation of a government of national unity in which the pro-Syrian and pro-Iranian Hizbollah movement and its allies hold veto power over crucial decisions. Prime Minister Fouad Siniora, who headed the previous western-backed government, will continue in his function.
Mr Siniora indicated that the main task of the new government would be preparing the country for general elections by the middle of next year, “in an atmosphere of transparancy”.
The cabinet was agreed on seven weeks ago under Qatari mediation in Doha in the wake of violent clashes between the rival factions and an 18-month political stand-off. But the formation was kept up by wrangling over ministerial positions between the Hizbollah-led opposition and the governing anti-Syrian majority.
The new cabinet still has to seek approval in parliament where it needs to pass a vote on a possibly controversial inaugural statement. Hizbollah is expected to insist that its role as a legitimate resistance movement against Israel be confirmed, as it was in the previous government’s statement in 2005.
The country’s new president, Michel Suleiman, had insisted that the cabinet be finalised before he was to depart for Paris, on Saturday, where he is to attend the launch of the Union for the Mediterranean and where he is expected to meet Syria’s president, Bashar al-Assad.
Paul Salem of the Carnegie Endowment’s Middle East Centre in Beirut said that the meeting could spell, “ an opening” for improvement in relations between the two countries. He said that Mr Assad was at the moment, “putting his best face forward” to the international community.
Most ministerial seats in the new government will still be held by the anti-Syrian parliamentary majority but Hizbollah and its allies will control 11 votes out of 30 in the cabinet. This gives them the ability to block crucial decisions and appointments that need a two-third majority.
The Shia Hizbollah movement and its ally, Amal, also entered the government in 2005 but withdrew their ministers after the war with Israel in summer 2006, forcing a drawn-out and increasingly violent political crisis. This culminated in the clashes in May this year, when Hizbollah and its allies overran the Sunni Muslim parts of Beirut and in which more than 80 people died.
The movement of Michel Aoun, the Christian leader, who has allied himself with Hizbollah, will participate in the government for the first time. Mr. Aoun had hoped to become president and is now expected to try cement his credentials as the pre-eminent leader of the Christian community.
Under the agreement in Doha that included the formation of the new government and election of president Suleiman, the politicians also have to adopt new electoral law, which could become the next point of contention.
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Assad makes remarkable comeback
By Roula Khalaf in Beirut
Published: July 11 2008 18:40 | Last updated: July 11 2008 18:40
After years of isolation Bashar al-Assad stages a diplomatic comeback on Saturday, courtesy of French president Nicolas Sarkozy.
Still boycotted by some of his Arab neighbours and shunned by the US, the controversial Syrian president will be in the company of European leaders at the union for the Mediterranean summit in Paris. Most prestigious will be his appearance at Monday’s national day festivities, a privilege usually reserved for France’s warmest friends.
“This visit is, for me, a historic visit, an opening towards France and Europe,” Mr Assad told Le Figaro, the French daily.
The trip to Paris marks a remarkable turnround for a young leader whose behaviour at home and in the region had relegated Syria to the ranks of a pariah state. It was only three years ago that France, then under the leadership of Jacques Chirac, was leading the isolation of Damascus, much to the delight of the Bush administration which accused Syria of backing Iraqi insurgents.
Apparently convinced that the Syrian regime was responsible for the killing of Rafiq Hariri, the former Lebanese prime minister and close friend of Mr Chirac, Paris was instrumental in forcing Syrian troops out of Lebanon in 2005. It also led the push for the creation of a UN investigation and a UN-backed tribunal for the Hariri case.
Review calls on the EU to show true global leadership
The European Union should play a real leadership role in a world in which nation states have been weakened by globalisation and most international institutions remain ineffective, according to a strategic review of French foreign policy, writes John Thornhill.
With a wide palette of economic and political instruments at its disposal, the EU is an accepted power that can play a key role in shaping the fast-globalising world and help establish international norms in trade, competition, and environmental standards.
The review, conducted by Alain Juppé, the former prime minister, and Louis Schweitzer, the chairman of Renault, reaffirms the centrality of the EU in French strategic thinking, even if the authors acknowledge that it is far more diverse and complex than Paris envisaged 20 years ago.
Mr Juppé said that France had to take account of the huge demographic and economic shift that was moving the world’s centre of gravity towards Asia. While the population of the rich industrialised countries in the Organisation for Economic Co-operation and Development accounted for one sixth of the global total today it would amount to only one-tenth within 50 years.
He argued that the international system of governance was not keeping pace with the changing balance of power in the world or its emerging problems, emphasising the need for a strong and effective EU.
However, the EU itself faced a big challenge in responding to public fears about globalisation, as seen in the Irish voters’ rejection of the EU’s Lisbon reform treaty.
The review says the region confronts four big security challenges: instability in the Middle East, Islamist-inspired global terrorism, the proliferation of weapons of mass destruction, and growing tensions between the countries to the north and south of the Mediterranean sea.
The Syrian president’s visit to Paris has provoked much criticism from France’s military and political establishment. Syrian-backed forces are still widely blamed for an explosion in Beirut in 1983 that killed 58 French peacekeeping troops.
But Mr Sarkozy came into office looking for a new direction. But it was the perception of a sudden, more co-operative attitude in Damascus in recent weeks that he seized on as an opportunity to re-engage with Mr Assad.
French officials point to two events in particular that suggested Syria was willing to moderate its policies and – crucially for Paris – eventually distance itself from Iran, its closest ally in the Middle East.
The first was Syria’s support for the Doha accord, the power-sharing deal struck by Lebanese leaders in the Qatari capital in May, paving the way for an election of a president, a move which Damascus’ allies in Beirut had been blocking. The second was Syria’s indirect peace talks with Israel, via Turkish mediators, a process that has gathered pace in recent months in spite of last year’s Israeli bombing of a suspected Syrian nuclear facility.
“Those were positive signals that we should encourage,” says a French official.
France’s embrace of Mr Assad, though supported by several European partners, has puzzled leading Arab governments, which had joined in putting pressure on Damascus and often received promises of co-operation that were rarely met.
In March, the leaders of Saudi Arabia and Egypt stayed away from the Arab League summit in Damascus, in protest at alleged Syrian meddling in Lebanon.
At the time, Arab diplomats said they were given the distinct impression that Syria would not help resolve the Lebanese crisis unless plans for a UN tribunal to try Hariri’s killers were scrapped. The Syrian government denies involvement in the killing.
“What’s incredible is that the Arab summit was only in March and all this has changed in a few months – and the change has been dictated by Europe,” says one western diplomat who keeps a close watch on Syria.
Arab officials (and the US of course) argue that rushing to reward Mr Assad could prove counter-productive.
The Doha accord, they note, was not a big concession on Damascus’ part, given that its Lebanese allies won the veto power in a new cabinet in return for allowing the presidential election to go ahead.
“Sarkozy is giving Syria a way out because he wants to take a different approach than Chirac. But you can’t be sure that there is a change of direction in Syria, despite the signals we’ve seen,” says a senior Arab official.
“The deal in Lebanon has to be consolidated. But will Syria continue to behave in a positive way?”
Analysts say that Syria’s recent moves may not amount to any significant shift as much as they are part of a repositioning before the arrival of a new US administration.
Mr Assad, who took over from his father in 2000, has also been attempting to capitalise on his alliances – with Iran and with Lebanese and Palestinian groups – and highlight to the world that he can positively influence these forces if he receives something in return. Syrian observers say that having survived the intense pressure of recent years, the regime has regained its confidence as it waits out the remaining months of the Bush administration.
Damascus now sees itself as a bridge between pro-western states in the region on one side and Iran and its non-state allies on the other, and argues that it can tilt the balance of power in the direction that it wants.
With his ambitions expanding, Mr Assad’s hope is that the next US president will abandon the policy of pressure and threats, opting instead for engagement.
He has already said that he wanted the US to mediate in the talks with Israel, in which Damascus is seeking the full return of the Golan Heights, occupied by Israel in the 1967 Middle East war. As Flynt Leverett, a Syria expert at the Washington-based New America Foundation, says, Mr Assad is now “auditioning for the next US administration”.
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Syria will gain the most from the Euro-Med summit in Paris
17:33 | 11/ 07/ 2008
Print version
MOSCOW. (RIA Novosti political commentator Maria Appakova) - Syrian President Bashar Assad will be the main guest of the Euro-Med summit of European and Mediterranean leaders from 43 countries in Paris on July 13.
His participation in the summit, where he will sit at the same table with Israeli Prime Minister Ehud Olmert, is more interesting for the media than the conference itself.
The summit is not expected to make a breakthrough. The Mediterranean Union (or Union for the Mediterranean), proposed by French President Nicolas Sarkozy, may be one more clumsy bureaucratic structure because its functions will overlap with the Euro-Mediterranean Partnership, or Barcelona Process, which was launched by Euro-Mediterranean foreign ministers in November 1995 to deepen relations between the European Union and its southern neighbors.
The Barcelona Process embraces 25 European and 10 south Mediterranean countries and is the only integration structure involving both Israel and Arab countries. Its goal is to foster Mediterranean cooperation in fighting terrorism, encouraging regional economic cooperation, addressing illegal migration, protecting the environment, and encouraging a dialogue between different cultures.
The Mediterranean Union will have very similar goals, and expects to get funds from the same source, the EU.
The only difference between them is that the new structure will have two co-chairs, one representing the EU and the other the south Mediterranean countries, and its secretariat is to have two co-directors.
Is this enough reason to set up a new organization? Why are the new structure's leaders meeting in Paris? Will the Mediterranean Union become a logical improvement on the Barcelona Process, or just another parallel structure? If so, why make the effort, especially since the Euro-Med dialogue is not proceeding as well as its initiators had hoped?
Not only analysts, but the participants in the Paris summit are asking these questions, which is why many heads of state postponed making a decision on their attendance at the summit until the last possible moment.
I am referring to Turkish Prime Minister Recep Tayyip Erdogan. Turkey fears that its participation in the new Union might draw out negotiations on its accession to the EU because France is the toughest opponent to Turkey's accession and has proposed other forms of Turkey's integration with European countries.
Many Arab countries, in particular Algeria, do not like the idea of joint projects with Israel while the Middle East peace process is marking time. Also, the lack of peace in the region is one of the reasons for the slow progress of the Barcelona Process.
Libyan leader Muammar Gaddafi has said so out loud. Libya is the only country that has refused the invitation to the Paris summit because Gaddafi described Sarkozy's project as an "international minefield" that may provoke radical groups' terrorist attacks.
Gaddafi has made quite a few dramatic statements, which the international community frequently rejects as a show, but he is a seasoned politician.
Gaddafi said on July 9 that he welcomed the idea of deeper cooperation between Mediterranean countries as was initially proposed by Sarkozy's Mediterranean Union, but the new north-south partnership endorsed by EU leaders is "nonsense."
"I do not advise my country to be part of this salad, this nonsense. This would make us face difficult problems," the Libyan leader said. "I believe this project of the Union for the Mediterranean would increase illegal migration and terrorism and give a justification to Islamist extremists to step up jihad attacks."
Gaddafi said the new project would create problems for either group of countries, apparently referring to the Arab-Israeli conflict, problems between Turks and Kurds, the situation in Iraq and Lebanon, and the attitude of potential members of the new organization to such movements as Palestine's Hamas and Lebanon's Hezbollah.
Fearing that the new Union will only aggravate problems and result in new conflicts, Gaddafi has decided not to go to Paris, although at first he supported the idea of Mediterranean integration.
Initially, the plan was to form a union of Mediterranean states to address practical problems, and Gaddafi even proposed limiting it to five or six North African countries and the same number of European states.
However, Germany pressured Sarkozy to include all EU countries in the new organization. Nobody knows if Euro-Med will succeed. But simply attending a summit will not bind us to anything, many leaders say.
The press will spotlight a meeting between the French and Syrian presidents in Paris, the first in three years, and a meeting between Assad and Michel Suleiman, the newly elected Lebanese president. It will also be the first time Assad will sit at the same table with Olmert. Although they are not expected to hold bilateral talks, simply finding them at the same table could be a sensation.
Syria is demonstrating a new openness and willingness for dialogue. Assad's visit to Paris could break Syria's diplomatic isolation, which began when the international community blamed the death of former Lebanese Prime Minister Rafic Hariri in 2005 on Syria.
The United States and France have been its sharpest critics, although Paris traditionally maintained close ties with Damascus.
Syria was also accused of interfering in the internal affairs of and provoking internal conflicts in Lebanon, notably by supporting Hezbollah, which many Western countries blacklist as a terrorist organization. It was also criticized for supporting Hamas.
However, when Suleiman was elected Lebanese president in late May and Lebanese politicians pledged to settle all disputes without resorting to arms, the West and several Arab countries reviewed their stance on Syria.
Assad's visit to Paris will come as additional proof of this and will give his country a chance to improve its relations with France and other European countries, as well as with Arab states, which cannot forgive Damascus for maintaining close ties with Tehran.
It may also turn Syria from a political outlaw into a political partner. The country's future will depend on both Syria and the West, but the Paris summit will change the rules of the game for Syria, if not the balance in the Mediterranean.
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Fannie & Freddie
Published: July 11 2008 14:43 | Last updated: July 11 2008 19:24
Fannie Mae and Freddie Mac are like a sweet old couple who have suddenly become unhinged and taken their neighbours hostage. For decades, they have been the backbone of US housing, using their implicit government backing to raise cheap financing to take on or guarantee millions of mortgages – about 43 per cent of the overall market currently.
In other words, the already dreadful US housing market would implode if the two government- sponsored enterprises went under. That is why fears of outright failure are misplaced – Washington could not let it happen. Officials insist the GSEs have excess capital. The problem is no one knows how far down house prices will go. Raising more capital looks unavoidable and legislation currently being debated could force Fannie’s and Freddie’s hand in doing so. The realisation on the part of shareholders who believed they enjoyed government protection is why Fannie’s and Freddie’s already battered shares fell by as much as half on Friday.
Given the GSEs’ combined market value of just $14bn, however, this is a side issue. More important is what the crisis means for the financial system. Talk of the US government taking on some $5,000bn of liabilities looks overblown, ignoring Fannie’s and Freddie’s substantial assets and other options, such as a capital injection from the government of perhaps tens of billions of dollars.
However, the GSEs’ bluff has been called. Their activities will be scaled back as part of the deleveraging now general across the financial system. That means lower house prices and a muted eventual rebound, pressuring consumers further. The race for the White House could turn more populist. Meanwhile, forget about higher interest rates, complicating matters for central banks everywhere. Even if nationalisation is avoided, Fannie’s and Freddie’s crisis will have a profound impact – extending well beyond their immediate neighbourhood.
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Behind the scenes contingency planning
By Saskia Scholtes, Michael Mackenzie and Joanna Chung in New York, and James Politi in Washington
Published: July 11 2008 21:13 | Last updated: July 11 2008 23:14
As the Bush administration attempted to dismiss speculation on Friday that the US government might have to nationalise Fannie Mae and Freddie Mac, talks continued behind the scenes about what contingency plans might be necessary if the two mortgage financiers continued to deteriorate.
Fannie and Freddie’s share prices have plunged by 47 and 50.1 per cent this week amid fears that they are poorly capitalised and any government-led rescue plan would leave little, if any, value for share-holders.
Hank Paulson, the Treasury secretary, said on Friday the Treasury’s “primary focus” was to support Fannie Mae and Freddie Mac in their “current form”. However, the US Treasury and Federal Reserve have discussed what actions would be available to co-ordinate a rescue of one or both of the government-sponsored enterprises if it was needed.
This is necessary because there is no clear regulatory or legislative policy to address how to deal with a failed government-sponsored enterprise.
Born out of the Great Depression
Fannie Mae – the Federal National Mortgage Association – was created in 1938, to help the housing market during the Great Depression.
In 1968, Fannie was given a new charter by Congress and became a publicly traded company that could seek funding from the private sector. In 1970 Congress created Freddie Mac – the Federal Home Loan Mortgage Corporation – as a competitor for Fannie, and over the ensuing three decades, these so-called government sponsored enterprises grew rapidly.
Between them, they hold outstanding debt of $1,600bn (£804bn, €1,000bn) and have debt and guarantees on mortgages in the region of $5,000bn. That compares with the US Treasury market of $4,500bn. They are big users of interest rate derivatives to protect their portfolios.
Importantly, however, no such rescue would be undertaken until the agencies are deemed undercapitalised, according to sources involved in the talks.
Fannie and Freddie’s regulator, the Office of Federal Housing and Enterprise Oversight, is not empowered to place either company into conservatorship unless the institution is “critically undercapitalised”.
A nationalisation of the companies, which together owe or guarantee around $5,000bn of debt, would result in a doubling of the federal deficit, declines for the dollar and have serious implications for the Treasury’s cost of funding in the debt markets, making such a solution unrealistic and politically impossible unless the companies are on the brink of failure.
Joshua Rosner, managing director at Graham Fisher, said: “Due to the fact that there is no real proscribed regulatory or legislated plan, contingency planning is happening but it is premature to expect the government to take any actions prior to a determination of an inability of the GSEs to meet obligations.”
Ofheo has given repeated assurances in recent days that the two companies remain “adequately capitalised” under current regulatory standards.
The debt markets also remained confident on Friday that the two giant mortgage financiers would be able to meet their obligations. Both companies retained their access to the short-term debt markets and their interest rates on such facilities were not appreciably higher.
Mr Rosner added: “The GSEs continue to have attractive cost of funding execution in the debt markets, and that is of primary importance.”
Meanwhile, analysts pointed to the Fed’s ability to buy Fannie and Freddie’s debt for the central bank’s own portfolio, and some think that if necessary the Fed would also use the discount lending facility extended to troubled investment banks to help the mortgage groups.
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07:57 GMT, Saturday, 12 July 2008 08:57 UK
Key US mortgage lender goes bust
IndyMac Bank branch office in Burbank, california (file photo)
One of the largest US mortgage lenders, the California-based IndyMac Bank, has collapsed amid a growing credit crisis.
Federal regulators seized the bank's assets, fearing it might not be able to meet withdrawals by depositors.
It is the second-largest financial institution to fail in US history, regulators say.
The failure came on a day when shares in the two biggest US home loan institutions - Freddie Mac and Fannie Mae - fell at one stage by almost 50%.
IndyMac had been struggling to raise funds and stay in business in one of the states worst hit by the US housing market slump.
The bank's primary regulator, the Office of Thrift Supervision (OTS), said depositors had withdrawn more than $1.3bn in the past 11 days.
"This institution failed today due to a liquidity crisis," OTS Director John Reich said.
"I'm very angry, very upset about this. I wanted to withdraw my money"
Steve Knieerein
IndyMac customer
The OTS believed IndyMac was unlikely to meet its depositors' demands and transferred its operations to the Federal Deposit Insurance Corporation (FDIC), which will seek a buyer.
IndyMac customer Steve Knieerein told ABC television: "I'm very angry, very upset about this. I wanted to withdraw my money."
People with deposits of up to $100,000 each are covered by insurers.
But about 10,000 people had uninsured funds over that limit with IndyMac - worth a total $1bn at the time of closing.
The FDIC said it would pay those people an advance dividend equal to half of their uninsured deposit.
It is the fifth US financial institution this year to succumb amid a credit crunch, falling house prices and rising foreclosures.
The move came after rollercoaster trading on Friday for Freddie Mac and Fannie Mae - which are behind half of all US mortgages.
They play an important role in the financial markets in providing funding for home loans by buying up mortgages and packaging them as investments.
'Important mission'
As mortgage backers, the companies have had to pay out when homeowners have defaulted on their loans.
Both firms defended their finances, saying they had enough capital to weather the housing slump.
"Today our primary focus is supporting Fannie Mae and Freddie Mac in their current form as they carry out their important mission "
Treasury Secretary Henry Paulson
Q&A: Freddie Mac and Fannie Mae
Shares in the two firms recovered after US Treasury Secretary Henry Paulson signalled he was not on the verge of taking Fannie Mae and Freddie Mac into public hands.
"Our primary focus is supporting Fannie Mae and Freddie Mac in their current form as they carry out their important mission," he said.
President George W Bush was briefed on Fannie Mae and Freddie Mac earlier on Friday.
Mr Bush said Mr Paulson assured him he and Federal Reserve Chairman Ben Bernanke "will be working this issue very hard".
After a volatile trading session, Freddie Mac shares closed down 3.1% at $7.75.
Shares of Fannie Mae ended the day down 22.4% at $10.25 after sliding as much as 49% to a 19-year low of $6.68.
US Senator Christopher Dodd said the Federal Reserve was considering allowing Fannie Mae and Freddie Mac to borrow directly from the central bank, which also helped the shares to recover.
Some media reported the Treasury was planning some kind of government-led rescue but Mr Paulson said only that they were "maintaining a dialogue with regulators and with the companies".
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U.S. seizes IndyMac as troubles spread
Reuters
By John Poirier and Rachelle Younglai Reuters - Saturday, July 12 08:36 am
WASHINGTON (Reuters) - U.S. banking regulators swooped in to seize mortgage lender IndyMac Bancorp Inc on Friday after withdrawals by panicked depositors led to the third-largest banking failure in U.S. history.
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California-based IndyMac, which specialized in a type of mortgage that often required minimal documents from borrowers, became the fifth U.S. bank to fail this year as a housing bust and credit crunch strain financial institutions.
The federal takeover of IndyMac capped a tumultuous day for U.S. markets that saw stocks slide on a surging oil price and renewed fears about the stability of the top two home financing providers, Fannie Mae and Freddie Mac.
IndyMac will reopen fully on Monday as IndyMac Federal Bank under Federal Deposit Insurance Corp supervision, but tensions ran high as customers at a branch at its Los Angeles-area headquarters read a notice in the window saying it was closed.
At another branch down the road, a man who said he had more than $200,000 (100,000 pounds) in an account -- twice what is normally FDIC guaranteed -- argued with a security guard who was closing up.
The FDIC, which will seek a buyer for IndyMac, estimated the cost of the bank's failure to its $53 billion insurance fund at between $4 billion and $8 billion.
"IndyMac is a company that was pretty much 100 percent invested in mortgage assets, and we're in a bad mortgage market, and it had no capital. It's not complicated," said Adam Compton, co-head of global financial stock research at RCM in San Francisco, which manages about $150 billion.
IndyMac joins top bank failures headed by the 1984 collapse of Continental Illinois National Bank & Trust Co.
The Office of Thrift Supervision (OTS) insisted IndyMac's failure was the second-largest bank failure based on FDIC figures. But the FDIC said its data showed it was third behind the collapse of First RepublicBank Corp in 1988.
RUN ON THE BANK
The OTS, IndyMac's primary regulator, blamed comments by New York Democratic Sen. Charles Schumer for causing a run on deposits at the largest independent publicly traded U.S. mortgage lender.
Schumer responded quickly on Friday, blaming the OTS for not doing its job and allowing IndyMac's loose lending practices. "OTS should start doing its job to prevent future IndyMacs," he said in a statement.
Schumer questioned IndyMac's ability to survive the housing crisis in late June, and over the next 11 business days, depositors withdrew more than $1.3 billion, the OTS said.
"This institution failed today due to a liquidity crisis," OTS Director John Reich said. "Although this institution was already in distress, I am troubled by any interference in the regulatory process."
IndyMac was founded in 1985 by David Loeb and Angelo Mozilo, who also founded Countrywide, another big mortgage lender whose loans helped fuel the housing boom. Countrywide was taken over last week by Bank of America Corp.
FDIC spokesman David Barr said agency officials arrived at IndyMac's headquarters in Pasadena at 3 p.m. (2200 GMT).
The successor FDIC-run bank opens for business on Monday. Over the weekend, depositors will have access to their funds by ATM, other debit card transactions, or by writing checks, but no access via online banking and phone services until Monday.
Yet many customers were in the dark as branches shut on Friday. "I'm pissed. They should have let me know," said Elizabeth Ortega, a 29-year-old hairdresser who has a checking account with IndyMac.
IndyMac had said earlier in the week it was unable to raise new capital, would slash staff by 60 percent and had stopped making home loans. Its stock then tumbled, last trading at 28 cents on the New York Stock Exchange, down 95 percent in 2008.
The FDIC insures up to $100,000 per deposit and up to $250,000 per retirement account at insured banks.
At the time of closing, IndyMac had about $1 billion of potentially uninsured deposits held by about 10,000 depositors. The FDIC said it would pay those depositors an advance dividend equal to 50 percent of the uninsured amount.
The OTS told a conference call with reporters that it did not expect significant market impact from IndyMac's closure as the firm is not a systemic institution and does not have numerous counterparties. Reich also said he did not expect a larger thrift to fail.
MORE FAILURES SEEN
Four small banks have already been closed this year and the FDIC is hiring more staff in preparation for more failures. The agency has boosted its list of troubled banks to 90 and has said an increasing number of banks face high exposure to deteriorating conditions in commercial real estate and construction lending. Last year, just three banks failed.
"IndyMac's takeover by the FDIC is one of many to come," predicted Daniel Alpert, an investment banker at Westwood Capital in New York.
Former FDIC official Ann Graham said it was not unprecedented for the FDIC to start running a bank after it fails. "It happens when they need to move more swiftly with the closing than they can move with a potential sale," said Graham, a law professor at Texas Tech University.
"They don't have to sell the institution over the weekend," she said. "They have the time to shop around."
Graham said the FDIC has the authority to operate an institution for two years but expected the agency would dispose of it much sooner than that.
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Blow as Russia and China veto Mugabe action
By Harvey Morris at the United Nations and Tom Burgis in Johannesburg
Published: July 12 2008 00:09 | Last updated: July 12 2008 00:09
Russia and China on Friday night vetoed United Nations sanctions against the Zimbabwe leadership, delivering a stinging blow to western efforts to turn the screw on President Robert Mugabe’s regime.
With their vetoes, they threw their weight behind the arguments of South Africa and a minority of council states that the political crisis should be resolved by African mediation between Mr Mugabe’s ruling Zanu-PF and the opposition.
A US-draft resolution had called for an arms embargo and travel and financial restrictions on Mr Mugabe and 13 other leaders of the regime. The resolution gained the requisite nine votes in the 15-member council but fell because two of the No votes came from veto-wielding Russia and China.
The collapse of the western-led initiative came after initial talks in South Africa between the ruling party, the opposition Movement for Democratic Change and a breakaway faction of the MDC, hosted by Thabo Mbeki, the South African president.
A source close to the talks said the two-day meeting resulted in a “memorandum of engagement” in which all parties laid out their conditions to begin substantive discussions towards some form of coalition or transitional government.
The MDC is adamant that it will not come to the negotiating table proper unless state-sponsored violence ceases, humanitarian aid is allowed to recommence, political prisoners are released and parliament is convened.
Boniface Chidyausiku, Zimbabwean envoy to the UN, who was invited to address the Security Council, said the situation in his country, which had been exaggerated by the west, did not represent a threat to international peace and security. It therefore did not warrant a binding resolution by the council.
Russia said sanctions could have worsened the situation in Zimbabwe and would go against the wishes of African states that wanted to pursue a mediated solution.
The UK, one of the backers of the resolution, said the council had missed an opportunity to back up South Africa’s mediation efforts with sanctions.
The vetoes were “deeply damaging to the long-term interest of Zimbabwe’s people”, John Sawers, the UK ambassador, said.
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Carla leaves Sarkozy in the shade
By John Thornhill in Paris
Published: July 12 2008 03:00 | Last updated: July 12 2008 03:00
Nicolas Sarkozy, France's so-called "omnipresent" president, this week attended the G8 summit in Japan, addressed the European parliament in Strasbourg, and held a series of high-profile diplomatic meetings in Paris ahead of tomorrow's grand launch of the Union for the Mediterranean.
Yet it was his willowy wife, Carla Bruni-Sarkozy, who bagged the prime-time interview on France's main television channel last night after launching her latest album of songs.
According to Mrs Bruni-Sarkozy, she and her husband may have followed different career paths but politics and show business are like two branches of the same industry.
"These are jobs in which it is very difficult to ignore image. Show business is almost only about that. As for politics, it consists of actions and symbols but nevertheless also has a lot to do with image," she told Le Parisien newspaper this week. "And we both benefit from the interest and attention of the media."
Mrs Bruni-Sarkozy, who married the French president in February after a lightning romance, has certainly benefited from an avalanche of publicity this week. The critics have generally praised her third album, which was pre-released on the internet before going on sale yesterday.
Ironically entitled "Comme si de rien n'était" (As if nothing was happening), the album contains 14 huskily whispered ballads including love songs to her husband.
"I put a stop/ to all my emblems/ to my career as an Amazon/ and to my sovereign freedom. . . . I give you my body, my soul and my chrysanthemum," she sings. "For I am yours/ you are my lord, you are my darling/ you are my orgy/ you are my folly."
Mr Sarkozy has been publicly supportive of his wife pursuing her singing career even if it meant she was unable to accompany him to the G8 summit this week.
Some commentators have also suggested the Italian-born singer is redefining the role of France's first lady in a refreshingly novel way and is adding a glamorous, modern dimension to her adopted country. Mrs Bruni-Sarkozy, who has now become a French citizen, is the personification of the French cultural embrace of outsiders.
But Mrs Bruni-Sarkozy's role has also raised eyebrows in the socially conservative country and caused some diplomatic tut-tutting. The Colombian government has formally protested about one of her lyrics referring to a narcotic drug as "Colombian white".
The first lady is, however, making some concessions to protocol. She has decided not to go on tour to promote the album and has promised to donate her share of the proceeds to charity.
Few doubt that Mrs Bruni-Sarkozy exerts enormous influence over her besotted husband. Le Point magazine recently ran a cover article hailing Mrs Bruni-Sarkozy as La Présidente.
A long-time socialist supporter, Mrs Bruni-Sarkozy has been critical of some of Mr Sarkozy's government's policies, particularly on immigration. But she has been fully supportive of her husband's efforts to reform France - even if she has been unable to reverse his unpopularity, which has now fallen to record lows.
"He loves France and the French a lot," she told Le Parisien. "He has a very strong sense of duty. And if people protest, it is directed more against the reforms than against him. Change is always difficult to accept but that is why he has been elected."
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Pakistan wins Saudi deferrals on oil bill
By Farhan Bokhari in Islamabad
Published: July 12 2008 03:00 | Last updated: July 12 2008 03:00
Saudi Arabia has agreed in principle to defer payments for crude oil sales to Pakistan expected to be worth approximately $5.9bn at present rates during Pakistan's present July-June financial year.
This would provide a significant boost to the south Asian country's economy just when it is coping with fast-mounting political and economic difficulties.
"There is an agreement in principle to defer oil payments. The modalities are being worked out," Naveed Qamar, the finance minister said in an interview with the Financial Times last night.
While Mr Qamar would not discuss the timespan for which payments on Saudi oil shipments would be de-ferred, a senior official from the petroleum ministry in Islamabad separately told the FT that the agreement involved deferring payments until at least June 2009 when the financial year ends.
Deferring payments would help Pakistan pass through a period when its finances are being squeezed. It is not clear if the deferred payments would be paid back.
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Perelman Sues Late Wife's Family Over Her Inheritance (Update2)
By David Voreacos
Enlarge Image/Details
July 11 (Bloomberg) -- Billionaire Ronald Perelman has sued the family of his late ex-wife, Claudia Cohen, claiming they cheated her estate and the couple's daughter out of millions of dollars.
Perelman, chairman of Revlon Inc., claims Claudia Cohen's father, Robert, verbally promised her half of his and his wife's estate, once estimated at $100 million. Her brother, James, used ``undue influence'' on their ailing father and incapacitated mother to have those assets transferred to him while they are alive, the complaint states.
Claudia Cohen, once a New York Post gossip columnist, was the second of Perelman's four wives. The case is the latest courtroom drama for Perelman, 65, who waged public divorce battles with his third wife, Democratic fundraiser Patricia Duff, and his fourth wife, actress Ellen Barkin.
``James Cohen took advantage of Claudia Cohen's trust by manipulating his parents and taking their assets for himself, thereby defrauding his late sister,'' according to the April 7 complaint, filed in Hackensack, New Jersey, by Perelman acting as executor of his wife's estate. A state judge on June 20 denied a request by Robert and James Cohen to dismiss the case.
Claudia Cohen died of ovarian cancer in June 2007 at age 56, Perelman says in his complaint. Their nine-year marriage ended in divorce in 1994.
The complaint claims James Cohen, a resident of Alpine, New Jersey, seeks to ``grossly understate'' the value of Claudia's parents' assets, which include Florida real estate and the family stake in Hudson Group, which owns the Hudson News store chain. It sells newspapers, magazines and snacks in airports and railroad stations including Grand Central Terminal in New York.
Sold Majority Stake
Robert and James Cohen have long held shares in Hudson Group, which had $630 million in revenue last year. In December, Boston-based private-equity firm Advent International bought a majority stake. In April, Dufry Group of Basel, Switzerland, bought a 10 percent interest, leaving the Cohens with 20 percent of the company.
``We have been forced to pursue litigation to protect the estate's interests, and we believe the court will uphold our claims,'' said Allan J. Arffa, a Perelman lawyer in the case, which was also filed on behalf of the billionaire's minor daughter Samantha, sole remaining heir to her mother's estate.
Robert Cohen's attorney, Cary Samowitz, didn't return a call seeking comment. James Cohen's attorney, Frank Huttle III, said ``the allegations made are without merit and are contested in every respect.''
`Incompetent'
Perelman claims Claudia Cohen, whom he describes as ``beloved,'' spoke regularly with her parents and felt a connection to Hudson, the business her father owned. They discussed estate planning, and Robert Cohen, a resident of Englewood, New Jersey, promised his daughter half of his estate, according to Perelman's complaint.
``Harriet Cohen, prior to the time she became incompetent, made statements to Claudia Cohen that indicated she shared Robert Cohen's intentions,'' according to the complaint. ``Robert Cohen's promises were made more than once to Claudia Cohen, and were specifically reiterated to her following her divorce.''
While Cohen and her daughter Samantha ``had assets available to her'' from Perelman after her divorce, she ``wanted personally to contribute to her own and her daughter's long-term financial security,'' according to the complaint. The New York Times reported last year that she received an out-of-court settlement of $80 million from Perelman after their divorce.
Sole Control
James Cohen wanted ``sole control'' over Hudson and ``began a campaign'' to assure that his parents ``would leave only minimal assets'' to the estate of Claudia Cohen and her daughter, according to the complaint.
``Knowing that his mother could not interfere with his plans due to her incompetency, James Cohen focused on his father and exercised undue influence over him, taking advantage of the fact that his father was now aged and infirm,'' it states.
Perelman claims James Cohen's actions were ``wanton, willful and malicious.'' His claims include fraudulent conveyance, undue influence and unjust enrichment. The complaint asks the judge to order the undoing of asset transfers and a rewriting of Robert Cohen's will to assure compliance with the verbal promises.
In refusing to dismiss the case, Superior Court Judge Peter Doyne noted that New Jersey passed a law making verbal promises about wills unenforceable after Sept. 1, 1978. He said Perelman would have to prove the promises were made before that date.
`Significant Hurdles'
``To be sure, the plaintiffs face significant hurdles to prevail in such a claim as they bear the burden of establishing, by clear and convincing evidence, the existence of the oral promise,'' Doyne wrote.
Doyne also approved subpoenas by Perelman's lawyers to the Hudson Group and Hudson News Co., based in East Rutherford, New Jersey. He said the documents requested are relevant to Perelman's complaint.
Perelman has filed numerous lawsuits over his business and personal relationships. He won a $1.57 billion jury award against Morgan Stanley over money he lost on the 1998 sale of Coleman Co. to the firm's client, Sunbeam Corp. In December, the Florida Supreme Court upheld a ruling tossing the verdict out.
Perelman also filed a countersuit in state court in New York against Jacques De Vos, a Parisian antique furniture dealer who sued the billionaire for failing to pay for more than $1 million in art objects and furniture. Perelman claimed the dealer and an antiques specialist, Giraud Inc., deliberately sold a fake dining-room table passed off as authentic Art Deco-style furniture. Court records show the case was settled May 9.
Renamed Building
In March of this year, Perelman drew criticism from faculty and students at the University of Pennsylvania, when he renamed a building, Logan Hall, after his wife. Perelman received the naming rights when he donated $20 million to the university for the renovation of Logan hall and two other buildings in 1995.
Both Claudia Cohen and Perelman are graduates of the Ivy League college in Philadelphia.
The New Jersey case is Estate of Claudia L. Cohen v. Robert Cohen and James S. Cohen, BER-C-134-08, Superior Court of New Jersey, Bergen County (Hackensack).
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Turkmenistan to develop oil & gas deposits in Afghanistan
11.07.2008, 23.48
ASHGABAT, July 11 (Itar-Tass) -- Turkmenistan’s participation in the geological surveys and development of oil and gas fields in Afghanistan’s bordering districts was in the focus of the first meeting of the Turkmen-Afghan intergovernmental commission for trade, economic and technical cooperation.
Turkmen Minister of Economy and Development Gurbanmyrad Gurbanmyradov and Afghan Economic Minister Mohammad Jalil Shams headed delegations of their countries at Friday’s meeting.
The participants in the meeting highlighted interaction in the fuel and energy sphere, the press service of the Turkmen government said.
Turkmenistan, which is delivering electricity to Afghanistan at privileged prices, plans to expand its power grids towards Afghanistan, the press service said.
The participants in the meeting discussed the increase of electricity deliveries to the Afghan city of Herat. Three investment projects with total worth of 9.8 million U.S. dollars are aimed at the purpose. They envisage the reconstruction of the power grid in the Turgundy settlement in the Herat province, the construction of electric transmission lines in the Balh province and on the route from Serhetabat to Herat.
The Afghan Ministry of Energy and Water is the ordering customer of the above-mentioned facilities.
Besides, the participants in the meeting considered prospects for the conjunction of the Turkmen and Afghan railways.
In particular, Turkmenistan offered to fund the construction of a railway stretch from Atamurat to the border with Afghanistan.
The interlocutors spoke in favour of closer contacts in agriculture, education and public health.
The members of the commission called on to increase the number of Afghan students in higher education establishments of Turkmenistan and supported further free-of-charge medical aid to the population of Afghan bordering districts.
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Ukraine files 500-million-dollar lawsuit against Russia
11.07.2008 Source: Pravda.Ru URL: http://english.pravda.ru/world/ussr/105760-ukraine_russia-0
The Ukrainian association of the Union of Depositors of Vnesheconombank (Foreign Economic Bank) of the USSR filed a lawsuit at the Court of Stockholm against the Russian government. The organization represents the interests of about 50 large enterprises of Ukraine, which demand Russia should return reimburse with them for the funds which had been frozen on accounts of the above-mentioned bank after the collapse of the USSR, the Nezavisimaya Gazeta reports.
Experts evaluate the amount of claims at $500 million. This amount is being claimed by 88 enterprises of the former Ukrainian Soviet Socialist Republic.
Timur Khromayev, the director of the association, a former official at the Ukrainian Finance Ministry, said that the initiators of the action do not interfere with big politics, but only ask for a refund of investments of the Ukrainian enterprises in the Russian economy. “The investments were illegally expropriated by a neighboring state,” Khromayev said.
Ukrainian experts do not exclude that the lawsuit of the association will become just a prelude to a much bigger scandal connected with USSR’s debts and assets. Kiev raised this subject in 2006, but it can surface again now against the background of current fuel problems between Ukraine and Russia.
Spokespeople for the Ukrainian administration have repeatedly emphasized the fact that they have serious trump cards for fuel talks, which may push Russia towards making concessions to Ukraine in terms of raising prices on natural gas to the European level. Some Ukrainian officials acknowledge that the question of USSR’s debts and assets was one of such trump cards. It is worthy of note that Ukraine is the only country of the Commonwealth of Independent States, which did not acknowledge Russia to be the successor of all debts and assets of the Soviet Union.
On December 4, 1991, Ukraine signed the Treaty of Succession, having claimed the responsibility to pay back 16.37 percent of the Soviet debt. Ukraine also set forth its claims for the same volume of assets. The Russian Federation fell to the share of 61.34 percent of USSR’s assets and liabilities. The percentage was based on the contribution of Soviet republics in the GDP of the USSR.
In December 1994, during the period of the financial and economic crisis on the post-Soviet space, the Ukrainian government signed a new agreement about the so-called “zero variant,” which stipulated Kiev’s rejection of the Ukrainian part of USSR’s debts and assets. However, in February 1997, when the situation in the country began to ameliorate, the Ukrainian Parliament refused to ratify the second document.
That is why, the Ukrainian Foreign Ministry considers the first agreement to be valid nowadays, under which Kiev can count on its 16.37 percent in Soviet debts and assets.
On the other hand, Vnesheconombank closed the subject of Soviet debts in 2006. The bank paid the remaining debt of $21.3 billion plus a bonus of $1 billion to the Paris Club of Creditors. Russia discharged all obligations with that payment to all countries of the Commonwealth, including Ukraine.
The Ukrainian Foreign Ministry released several harsh statements afterwards, claiming that Kiev had not entrusted Moscow with clearing the debt. Some Ukrainian officials said that Russia paid back the Ukrainian debt at its own initiative. Ukraine is certain that the assets of the former USSR cost a lot more than the Soviet debts.
Yevgeny Yasin, the Russian Minister for Economics in 1994-1997, said that spokespeople for the International Monetary Fund and other Western financial institutes asked former Soviet republics in 1991 to be responsible for the debt of the USSR. “The USSR still existed at the time when those talks were held, but the West touched upon that question anyway. No republic of the Soviet Union wanted to claim joint responsibility for that. As a result, it was Russia that shouldered the entire burden.”
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The world order based on USA’s global supremacy has ended
11.07.2008 Source: Pravda.Ru URL: http://english.pravda.ru/world/americas/105769-supremacy-0
The full text of the report about national security threats has been published in the USA for the first time ever. Russia was listed as one of the threats in the document. The search for the enemy is based on the pre-election campaign in the States. If the USA is in fear of Russia then it means that the United States finally started to respect its erstwhile Cold War rival.
The report enumerates all serious problems, which the USA currently has to deal with. International terrorism is named one of the biggest issues, as always. It goes about the activities of al-Qaeda and Hezbollah, the proliferation of WMDs in Iran and North Korea. The report also highlights complicated situations in Iraq, Afghanistan and Pakistan.
The report virtually describes the usual. It also brings up the question of the need of those organizations if any newspaper can give a very good description of regional problems. There are certain novelties, though: China attempts to strengthen its anti-ally potential, whereas fuel and food prices continue to grow worldwide. The report surprisingly concludes that Russia becomes more and more dangerous for the developed countries.
US special services are concerned about an opportunity for Russia and several other countries to use the financial and market potential to achieve its political goals. Additionally, the US administration is certain that Russia is capable of showing influence on the situation in the world and waging a cyber-war against the US infrastructure.
When the Cold War ended, the USA came across serious difficulties during the creation of the new military and political doctrine. As George Soros once said, the USA was left without an enemy when the USSR broke up, although this enemy used to help the United States personify both the leader of the free world and a superpower.
The US defense complex found itself in a critical state three years after the end of the Cold War. A special report, which defense and trade secretaries delivered to the president on November 12, 1994, said that defense enterprises were suffering considerable losses. USA’s defense sales volume made up $33.2 billion in 1993 and then dropped to $12.4 billion in 1994. The production of M1A2 tanks, F-15 jet fighters, Apache and Black Hawk helicopters was endangered.
On November 14, 1994, President Clinton signed Executive Order 12938, which virtually declared a state of emergency due to a highly serious threat to the US national security, foreign politics and economy. The document gave a green light to the launch of the missile defense program.
Afterwards, the USA started to experience serious problems with its foreign policy in Europe. France put forward an initiative to establish the European collective security system with the participation of Russia, Ukraine and Belarus. Then-president Francois Mitterand stood up against the eastwards expansion of NATO, because it could result in the creation of another iron curtain in Europe.
The coalition between Russia and France was not desirable for the USA. Its further political fiasco in Bosnia and Herzegovina became another complicating factor, which subsequently aggravated relations between Europe and the States inside NATO.
US intelligence services believe that Russia’s biggest problem is connected with the demographic crisis, which affects many sectors of the nation’s economy and armed forces.
The report concludes that the Russian authorities have been conducting successful policy to strengthen the country’s international position. The world order based on USA’s global supremacy has ended.
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Russia to become Europe's largest automotive market
11.07.2008 Source: URL: http://english.pravda.ru/business/finance/105759-russia_automotive_market-0
Russia is poised to overtake Germany this year to become Europe's largest automotive market by vehicles sold, auditor PricewaterhouseCoopers LLC said.
The surging price of oil has revitalized the country's economy, providing many Russians the means to buy foreign-made cars. Meanwhile, rising fuel costs have made car ownership more expensive in Europe and the U.S., where sales are stagnating.
Car sales in Russia rose 41% in the first half of 2008 to 1.65 million, with a total value of $33.8 billion, PwC said in a report, citing figures from the country's customs service and a trade group. The auditor said that the figure is larger than the number of new-car registrations in Germany, but that Russia's total includes used imported cars.
Read also: Would You Buy A Russian-made Electric Car?
"If the market growth remains at the same level in the second half of the year, sales in Russia will exceed sales in Germany," PwC said.
The auditor estimates that Russians will buy as many as 3.8 million new cars in 2008. Industry association VDA expects 3.2 million new cars to be sold in Germany this year.
Russia has become a priority market for major car makers in recent years. Volkswagen AG of Germany and PSA Peugeot-Citroën SA of France are the latest auto makers to open factories in Russia and to take advantage of tax exemptions on locally assembled cars.
Russia's emerging middle classes have been snapping up cars such as Ford Motor Co.'s Focus and Renault SA's Logan. Each model had sales of more than 30,000 vehicles since January.
Russians' rising spending power has let foreign car makers increase their sales at the expense of less costly Russian brands, such as the Lada, owned by OAO Avtovaz. That company, Russia's largest car maker by sales, sold a 25% stake to Renault for $1 billion last year.
Read also: Don't sell your Lada!
Russians bought 1.1 million foreign cars in the first half of the year, up 47% from a year earlier, according to the Association of European Businesses. In June, Russians bought 202,309 foreign vehicles, up 44% from a year earlier. The figures include the sales of foreign-branded cars produced in Russia. Of the top five best-selling models in the first half, three are locally produced.
Source: The Wall Street Journal
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Russia to develop new generation of tanks by 2020
10.07.2008 Source: Pravda.Ru URL: http://english.pravda.ru/russia/economics/105757-russian_tank-0
Russia’s armored troops will consist of T90 tanks and tanks of the new type by 2020.
The Director of the Federal Service of the Russian Defense Order, Sergei Mayev, did not disclose the name of the new armored machines, but unveiled some of their constructive differences.
“The new tank will have better fire and range capabilities and a higher weapon yield. In addition, it will be outfitted with 7-kilometer range missiles,” the official said.
An average Russian tank develops the speed of 30-50 km/h, whereas the tank of the new generation will be able to travel at the speed of 50-60 km/h. To crown it all, the crew of the new tank will be able to conduct battle actions for 24 hours without leaving the machine.
It is worthy of note that there is only one enterprise left in Russia which deals with the production of tanks.
T-90 is a Russian main battle tank derived from the T-72, and is currently the most modern tank in the Russian Ground Forces and Indian Army arsenal. The successor to T-72BM, the T-90 uses the gun and 1G46 gunner sights from T-80U, a new engine, and thermal sights. Protective measures include Kontakt-5 ERA, laser warning receivers, the EMT-7 electromagnetic pulse creator for the destruction of magnetic mines and the Shtora infrared ATGM jamming system.
The T-90S version is in service with the Indian Army, and the local production of T-90S Bhishma tanks started in India in 2006 or 2007. Bhishma (also spelt as Bishma) is a warrior from the Indian epic, the Mahabharata. In 2001, India bought 310 T-90S tanks from Russia, of which 120 were delivered complete, 90 in semi-knocked down kits, and 100 in completely-knocked down kits. T-90S were made by Uralvagonzavod and the uprated 1,000-hp engines were delivered by Chelyabinsk Tractor Plant. These tanks however did not feature Shtora active protection system though there are reports that a separate contract for shipment of a modernized version of this suite is being discussed. The T-90 was selected because it is a direct development of the T-72 which India already employs, simplifying training and maintenance. India bought the T-90 after the delay in production of the domestically developed Arjun main battle tank, and to counter Pakistani deployment of the Ukrainian T-80UD in 1995–97.
The deal between India and Russia, estimated at a value of USD $750 million, also included the complete transfer of T-90 technology and weapon systems to India. With Russian and French assistance, India developed an improved version of T-90S, known as the Bhishma. However, India has reported that problems have arisen with the French-designed thermal sights used on the T-90 due to intense desert heat. In 2006, the Indian Government awarded the Ordnance Factory Board a USD $2.5 billion deal to manufacture 1,000 T-90 Bhishma tanks for the Indian army. On October 26, 2006, India signed another deal with Russia for 800 million USD for 330 T-90S tanks.
The T-90's main armament is the 2A46M 125 mm smoothbore gun. This is a highly modified version of the Sprut anti-tank gun, and is the same gun used as the main armament on the T-80-series tanks. It can be replaced without dismantling the inner turret and is capable of firing armour-piercing fin-stabilized discarding sabot (APFSDS), high-explosive anti-tank (HEAT-FS), and high explosive fragmentation (HE-FRAG) ammunition, as well as 9M119M Refleks anti-tank guided missiles. The Refleks missile has semi-automatic laser beam-riding guidance and a tandem hollow-charge HEAT warhead. It has an effective range of 100 m to 6 km, and takes 17.5 seconds to reach maximum range. Refleks can penetrate ~950 mm of steel armour and can also engage low-flying air targets such as helicopters.
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What should Russia do to counter U.S. missile defense in Europe?
17:39 | 11/ 07/ 2008
MOSCOW. (Novosti military commentator Ilya Kramnik) - A U.S. missile defense system in Europe is gradually becoming reality. On July 8, the United States signed an agreement with the Czech Republic to build a missile tracking radar on its territory, and is in discussions with Poland about the deployment of missile interceptors.
In this context, it seems appropriate to analyze the military threat posed by the U.S. missile defense deployment.
The U.S. missile defense system, especially its European component, has given rise to many myths. It is rumored that the missile silos in Poland will accommodate medium-range ballistic missiles rather than ground-based interceptors (GBIs). If this were true, the threat would be very serious because these missiles are capable of incapacitating major control centers in Moscow and the surrounding area in a matter of minutes. So far, however, these are no more than rumors.
Washington claims that the missile defense system will protect the territory of the United States and its allies against a missile strike by "rogue states." But that is misleading. The locations in the Czech republic and Poland are not the best for intercepting hypothetical Iranian or North Korean missiles, but happen to be very convenient for downing any missiles Russia might launch against America from its territory.
But military experts in Russia and abroad maintain that U.S. missile defense cannot pose a threat to Russia's strategic nuclear force even after the deployment of its third positioning area in Poland. Why, then, are the Russian military and politicians so nervous about it?
The answer lies in the words "first strike" and "cuts in strategic nuclear potentials." The 1972 ban on the deployment of a global missile defense system meant that neither side in the cold war could launch a pre-emptive nuclear strike and go unpunished. Even if the Soviet Union or the United States was hit by a surprise first strike, the potential of either side was enough to inflict unacceptable damage on the enemy. In simpler terms, either side would still be able to destroy the enemy's cities and most of the population, with all the ensuing global consequences like nuclear winter.
Cuts in nuclear arms, a simultaneous increase in the precision and "cleanliness" of weapons, and reduction of their yield have lowered the deterrent threshold of strategic nuclear weapons. An exchange of nuclear strikes between Russia and America no longer means the end of human civilization, but if one side strikes first, the other's surviving missiles will still be able to deal unacceptable damage to the aggressor.
The missile defense system, however, makes it possible to lower this margin still further. If it is fully deployed (as three echelons of ground-, sea-, and air/space-based), the United States will regain the capability (for the first time since the 1940s-1950s) of launching a destructive first strike at Russia without fear of retaliation. The several dozen Russian missiles likely to survive a combined attack by nuclear and conventional forces (including precision weapons capable of destroying fortified launching sites), and hence meant to provide the retaliatory "deterrent" strike, would be an easy target for a fully deployed combat-ready missile defense system.
Thus any violation of strategic parity has obvious consequences. Russia will have to build up its strategic nuclear potential once again, but in more difficult conditions than those of Soviet times. Moreover, this buildup is subject to many limitations - both external, like international treaties, which Russia does not deem it possible to sever for the time being, and internal, such as the deterioration of the nuclear missile industry since the breakup of the U.S.S.R.
What can be done? Maybe we should deploy our own a missile defense system in order to weaken a potential surprise strike at our strategic nuclear force. The prohibitive cost of such a system will not allow us to cover all of our territory, but we could and should protect the major areas of strategic nuclear forces in order to preserve their deterrent potential. But this decision will not be easy or inexpensive.
This is the cost of our defeat in the Cold War.
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ガソリン高で車利用手控え、渋滞緩む 首都高は２割減少
ガソリン価格高騰の影響でクルマを利用する人が減っている。東京都心の首都高速道路の渋滞は１年前より２割減少し、所要時間が４割短くなった区間もある。ノロノロ運転が慢性的だった「首都の動脈」は一変した。ヒトやモノを運ぶクルマの利用が減っていることは、経済活動の鈍化や、長引く景気の停滞も映し出している。
首都高速道路会社は、時速20キロ以下の走行を強いられる込み具合を渋滞と定義。全線の約7割を占める「東京線」について、最も混雑する平日午前11時の渋滞個所の総距離を調べたところ、1―3月は平均44キロと前年同期より12キロ（22％）短くなった。全路線に占める割合は約20％から約5ポイント下がった。
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日本人船員の不足解消へ 国交省がＰＲ活動
若者よ、海で働こう――。海で働く人の不足に悩む国土交通省は若者を中心にＰＲ活動を積極化する。乗船体験の場を設けるなど海の仕事に触れる機会を増やすほか、仕事の現場の動画付きの新しいホームページの「海の仕事．ｃｏｍ」も用意した。一定時間以上の残業を規制するなど、厳しいと敬遠されがちな船乗りの職場環境の改善も進める。
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松下労連も「パナソニック労連」に名称変更
松下電器労働組合連合会は12日、定期大会を開き、名称を「パナソニックグループ労働組合連合会」に10月1日付で変更することを決めた。松下電器産業が「パナソニック」に社名変更するのに伴う措置。山崎弦一委員長は「松下やナショナルの呼称がなくなるのは寂しいが、その意義は深く理解している。社名変更で業績が悪化したとならないよう、それぞれの立場で経営強化に取り組む」と決意を述べた。
同労連には社内の各部門やグループ会社など合計65の組合が加盟、組合員数は8万560人にのぼる。
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現場技能職を大量採用 日立・東芝・キヤノンなど、来春５割増
製造業大手が高校新卒者を中心とする現場技能職の採用を大幅に拡大する。日立製作所、東芝、キヤノンなどは2009年春の採用を前年に比べ5割程度増やす。鉄鋼、自動車などを加えた大手10社の採用数は、製造業への人材派遣が解禁された04年の約3倍になる。派遣社員など外部労働力への依存が進む中、技能を持つ団塊の世代の大量退職が始まり、生産現場の空洞化が懸念されている。各社は技能職の採用増で「ものづくりの力」を維持する。
大手製造業の多くは製造業への派遣期間が実質的に3年に延長された06年以降、生産現場に大量の派遣社員を導入した。しかし派遣期間が3年を超えると正社員に登用するか契約を打ち切る必要があり、09年以降、雇用戦略の見直しを迫られる。
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燃料電池を低価格に 日清紡と東工大、カーボンで白金代替
日清紡は東京工業大学と組み、燃料電池の触媒に高価な白金（プラチナ）ではなくカーボン（炭素）を使う技術を開発した。カーボン触媒の費用は白金の10 分の1で、自動車用なら燃料電池コストを約40万円減らせる。2009年度までに技術を確立。家庭用や自動車用に供給する。他のメーカーも代替触媒を相次ぎ開発している。燃料電池の普及を後押しするコスト低減の動きが広がってきた。
二酸化炭素（ＣＯ2）排出量を少なくできる燃料電池は自動車や家庭用向けに需要拡大が見込まれる。実用化に向けて、燃料となる水素の供給体制を築くことに加え、価格が高騰する白金に代わる触媒の開発が課題になっている。
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冷食各社、年内の減産継続 ギョーザ中毒事件の影響長引く
冷凍食品各社は前年比1―2割の減産を年末まで継続する方針を固めた。減産に加えて、日本水産やマルハニチロホールディングス（ＨＤ）は秋冬向けに投入する新商品の数を減らす。中国製ギョーザによる中毒事件の影響が長引いており、大手各社の4―6月期の販売実績は前年同期を1―2割下回った。当面の売れ行き回復は難しいと判断し、既存商品の販売テコ入れに力を注ぐ。
味の素冷凍食品はパート・派遣社員の採用を引き続き抑える。日本たばこ産業は傘下に抱える加ト吉や製造委託先に減産継続を要請するなど、減産を緩めない方針だ。事件発覚から5カ月が経過しても販売状況が回復しないためだ。
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ミネベア、航空機部品を増産 55億円投資、民間機向けも強化
ミネベアは航空機向けの部品やベアリング（軸受け）を増産する。2008年度中に55億円を投じ、国内外の工場の生産ラインを拡充。これまで軍用機向けのみに供給していた機体用の主要部品を民間機市場にも投入するなど、新興国を含む旺盛な旅客機需要に対応する。一連の投資を通じて10年度の航空機関連の売上高を07年度比で3割増やす。
胴体に主翼などを固定するボルトの役割を果たす「ファスナー」を今秋から民間航空機向けに初めて供給する。藤沢工場（神奈川県藤沢市）内に生産設備を導入。米ボーイングや仏エアバスなどに出荷する。来年初めには北米工場の拡張によってエンジン用の軸受けも量産する。
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ロッキー青木氏死去 米で鉄板焼きチェーン「ベニハナ」展開
【ロサンゼルス＝共同】北米を中心に鉄板焼きチェーン店「ベニハナ」など日本料理レストランの経営で成功したロッキー青木（本名青木広彰＝あおき・ひろあき）氏が10日、急性肺炎のためニューヨークの病院で死去した。69歳。米国にある同氏の事務所が発表した。
東京都出身。1959年にレスリングの選手団の一員として渡米。その後、米国で始めたアイスクリームの移動販売が当たり、64年にベニハナの第1号店を開店させた。客の目の前で、シェフが食材を飛ばしたり、手早く調理したりするパフォーマンスが人気を呼び、店舗を増やし、アメリカンドリームを体現した。
98年、インサイダー取引に絡みベニハナの会長を辞任。冒険家としても知られ、81年にガス気球で太平洋横断に成功した。ファッションモデルのデボン青木さんは娘。
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ロッキー青木氏死去…米でレストラン「ベニハナ」展開
肝臓がん、６９歳
米国を中心に展開する鉄板焼きレストラン「ベニハナ」などの経営で知られる実業家で冒険家のロッキー青木（本名・青木広彰）氏が１０日夜（日本時間１１日午前）、ニューヨーク市内の病院で肝臓がんに伴う合併症で死去した。６９歳だった。
中学から慶応に通い、同大経済学部に進学してからはレスリング部に所属し、日本選抜チームとして米国に遠征したこともある。１９６０年には留学のため再渡米。動機は、「最初の渡米の際に空港で５ドル拾って、この国はお金が拾える国だといっぺんで好きになったことが留学につながった」（関係者）。ニューヨークで移動アイスクリーム屋を開いたが、アイスにつけたミニチュアの番傘がうけて大当たりした。
このとき３カ月で１万ドル近くもうけ、それを元手にベニハナ１号店をオープン。ところが最初の半年は閑古鳥が鳴く。そのときに起死回生の決定打となったのが、父親の一言。ふと父親が「客の前でショーをやっては」と助言した。それを元に、料理人が料理をしながら客の前でナイフやコテを使ったパフォーマンスを演じるスタイルを思いついたという。
冒険家としても名高い。８０年にはパワーボートで世界大会の２位になったほか、８１年には気球で三重・長島温泉から太平洋横断に成功。米タイム誌の表紙を飾った。パワーボートでは７９年にサンフランシスコの金門橋の下で事故を起こし、瀕死の重傷を負ったのだが、かつて夕刊フジがインタビューした際には、その時の傷を見せながら当時を振り返った。
９８年にはインサイダー取引疑惑で会長職を退いたが、前出の関係者は「８０年代にこんなに元気な日本人がいるんだぞ、ということを米国や日本に見せてくれた人物」と話している。
娘はスーパーモデルのデヴォン青木さん。
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ＤＶ夫に妻の所在知れる 伊万里市、閲覧禁止の住民票を交付
夫の暴力から逃れるため佐賀県伊万里市から転出した女性の新住所が記載されている住民票を、閲覧禁止手続きを取ったにもかかわらず、同市職員が誤って夫に交付し、新住所が伝わっていたことが12日までに分かった。
市はミスを認め、女性に謝罪。女性は精神的苦痛を受けたとして、市に損害賠償を求めている。
市によると、県外に転居した女性は4月21日に、ドメスティックバイオレンス（ＤＶ）防止法に基づいて住民票の本人以外への閲覧禁止手続きを取った。その後、女性が転出証明書類の作成を要請した際に、職員が閲覧禁止措置を解除したが、元に戻すことを失念。数日後に夫の求めに応じて住民票が交付されてしまったという。
新住所を確認しようと夫が再び市の窓口を訪れ、ミスが発覚。住民票は住民基本台帳法施行令で転居後も5年間の保存が義務付けられている。市は慰謝料を支払うことも検討している。
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世界銀行番付：英ＨＳＢＣが米銀抜き首位 三菱ＵＦＪ６位
英金融専門誌バンカー７月号は、０７年決算に基づく０８年の世界銀行上位１０００社番付を掲載、英銀大手ＨＳＢＣを傘下に置くＨＳＢＣホールディングスが、米銀が過去９年独占してきた世界首位の座を奪取した。米シティグループはサブプライムローン問題で巨額の損失処理を迫られ自己資本が目減りし２位。３位は英ロイヤル・バンク・オブ・スコットランド。
邦銀は９８社がランキング入りし、三菱ＵＦＪフィナンシャル・グループが６位。以下、みずほフィナンシャルグループ（１５位）、三井住友フィナンシャルグループ（１８位）、りそなホールディングス（２８位）と続いた。
ただ、みずほグループについて同誌は、０８年３月期決算で多額のサブプライムローン関連損失を処理したため「次回ランキングではより厳しい状況になるかもしれない」との見方を示した。
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厚労省はネットカフェ？ 職員が業務中に「２ちゃん」「ゲーム」三昧 (1/2ページ)
2008.7.13 01:22
厚生労働省で、官用パソコンを用いてゲームやお笑いなど業務と関係のないホームページ（ＨＰ）閲覧が１日に約１２万件もあったことが１２日、分かった。年金や後期高齢者医療、医師不足など厚労行政が批判を浴びるなか、多数の同省職員が職場を“ネットカフェ”状態にし、ＨＰで遊んでいる実態が明らかになった。
厚労省統計情報部では今年５月７日、職員約５万５０００人のうち、東京・霞が関の本省と８つの地方厚生局計約５５００台のパソコンを対象にインターネットの閲覧状況を調査。総閲覧数１０００万件のうち、少なくとも１２万２０００件が業務外と判明した。
うち、７万５０００件が掲示板やチャットなど情報交換系のＨＰ。ゲームソフトやネット上で遊べるゲーム関連のＨＰが４万１０００件、芸人や演芸場、アニメなどお笑い系ＨＰも６０００件に及んだ。
厚労省は平成１７年７月から省内のパソコンから閲覧制限できるシステムを導入。アダルト系、株取引といった分野は当初から閲覧不可にしたが、調査対象となった分野は接続が可能な状態になっていた。
昨年８月、ネット上の百科事典「ウィキペディア」に外務省、農水省、宮内庁などの官用パソコンからの書き込みが相次いで発覚。厚労省からも美少女アダルトゲームやアイドルなどの項目の編集が判明し、同年１０月に２０回以上も編集を行った職員２人を訓告にしたほか、計１２人を処分。全職員に業務外のパソコン使用を禁じる通知を出した。
今回の調査は、通知を守っているかを確認することが目的だったが、１２万件もの不必要な閲覧が発覚したため、お笑いなど問題の分野も先月１８日から閲覧を禁止している。
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