Business World News New treaty to save euro splits European Union

Business World News New treaty to save euro splits European Union:
Date December 09 , 2011
Leaders of 23 European countries desperate to save the shared currency agreed on a new treaty. 



Leaders of 23 European countries desperate to save the continent s shared currency agreed in all-night talks Friday to surrender some sovereignty in a new treaty but failed to get all 27 European Union members to join in.


The split between those in the new treaty and those outside rattles the foundations of a union created to foster peace and prosperity across a bloodied Europe after World War II. The EU has struggled to unite to stem a 2-year-old spiral of debt that started in Greece, has plunged the eurozone into crisis, and now threatens to send the global economy back into recession.

Even after Friday s long-awaited deal, watched by governments and markets worldwide, the European leaders have huge hurdles still ahead. They are meeting again later Friday to work out what exactly their new treaty will contain and how violators of its strict budget rules will be policed. They want it written by March.

Asian stocks deal tumbled Friday as investors grew increasingly pessimistic that European leaders would conclude this week s crucial summit without finding a solution radical enough to fix the debt crisis.


Britain, which doesn t use the euro, led the push against a treaty tying all 27 EU countries to tighter fiscal union, arguing that it would threaten sovereignty and London s esteemed financial services industry. Germany and France, the eurozone s biggest economies, had pushed for a 27-nation accord.

French President Nicolas Sarkozy laid the blame at the feet of British Prime Minister David Cameron.

"David Cameron made a proposal that seemed to us unacceptable, a protocol to the treaty that would have exonerated the United Kingdom from a great number of financial service regulations," Sarkozy said shortly before dawn, after what he called a "difficult" dinner meeting had dragged through the night.

"We couldn t accept this. We consider to the contrary that part of the troubles of the world come from the lack of regulation of financial services," Sarkozy said. "If you want an opt-out clause to not be in the euro and ask to participate in all decisions of the euro ... and even criticize it, this is not possible."

Cameron defended his stance.
"What was on offer is not in Britain s interest so I didn t agree to it," he told reporters in Brussels.

"We re not in the euro and I m glad we re not in the euro," he said. "We re never going to join the euro and we re never going to give up this kind of sovereignty that these countries are having to give up." The French president said work was proceeding on an "intergovernmental accord" among the 17 countries that use the euro plus as many as six others, not counting Britain, Hungary, and so-far undecided Czech Republic and Sweden.

Swedish Prime Minister Fredrik Reinfeldt signaled after the meeting it was unlikely his country would join the accord.
"It would be very odd signing up to a treaty pointing out as if we were a eurozone country," he told The Associated Press. "And that was never the aim."

The governments signing onto the new treaty will have to agree to allow unprecedented intervention in national budgets by EU-wide bodies.

According to a statement issued after the meeting broke up, governments participating in the agreement will need to have balanced budgets which is counted as a structural deficit no greater than 0.5 percent of gross domestic product
 and will have to amend their constitutions to include such a requirement.

The treaty will include an unspecified "automatic correction mechanism" for countries that break the rules, the statement said.

In addition, countries that run deficits larger than 3 percent will face sanctions. To prevent such deficits, countries will have to submit their national budgets to the European Commission, which will have the authority to request that they be revised. Countries will also have to report in advance how much they plan to borrow.

But Cameron threatened to complicate the new 23-member treaty. "The institutions of the European Union belong to the European Union, belong to the 27" member states, he said. The new treaty would rely on the European Commission and the European Court of Justice to enforce its rules.

Despite the challenges ahead, European Central Bank chief Mario Draghi said it was a good result for the eurozone, and German Chancellor Angela Merkel praised it. "I have always said the 17 states of the eurogroup have to regain credibility," she said. "And I believe with today s decisions this can and will be achieved."

The summit meeting in Brussels was viewed as a critical step in the effort to save the euro. The currency is losing the trust of the international financial markets, who fear that some debt-laden euro countries may ultimately be unable to pay their debts.

That doubt means that the governments of countries viewed as in a precarious state must pay higher interest to borrow the money they need to carry on and that, in turn, makes their budget deficits even worse and can be unsustainable in the long run.

EU officials believe that one way of regaining market trust is to beef up the financial governance overseeing the eurozone countries and their budgets. Any intergovernmental treaty will be an effort to ensure that national budgets are brought into balance and large debts are not run up again.

And the officials believe another way to regain the trust of investors is to have enough money on hand to guarantee that eurozone countries won t default on their debts.

Toward that end, Herman Van Rompuy, president of the European Council, said the eurozone, together with some other EU countries, would provide up to €200 billion ($268 billion) in extra resources to the International Monetary Fund, to be used to help countries in dire straits. Non-euro countries Sweden and Denmark already said they would contribute some extra money.

Sarkozy also said the EU s two bailout funds, meant to rescue countries having trouble refinancing their debts the European Stability Mechanism, or ESM, and the European Financial Stability Facility, or EFSF would be managed by the European Central Bank, though the details still need to be worked out.

The failure to get agreement among all 27 EU members came despite a marathon negotiating session. The 27 EU presidents and prime ministers began their talks at 7:30 Thursday evening and continued past 4:30 a.m.

Cricket World News Pattinson claims 5 wickets as NZealand out for 150

Cricket World News Pattinson claims 5 wickets as NZealand out for 150:
Date December 09 , 2011
Australian paceman James Pattinson continued his crash course in test cricket Friday. 



Australian paceman James Pattinson continued his crash course in test cricket Friday, taking his second five-wicket haul in an as many innings to help dismiss New Zealand for 150 before tea on the opening day of the second test.
 
The 21-year-old Pattinson, man-of-the-match on his test debut in last week s nine-wicket win, returned 5-51 against a New Zealand lineup missing ex-captain Daniel Vettori.
  
Vettori strained his left hamstring and withdrew hours before the match, making him unavailable to play the steady hand the New Zealand innings needed as he did in the first innings of the series-opener at the Gabba when he fell four runs short of a century.

Dean Brownlie continued his impressive form with the bat, scoring 56 before he was bowled by Pattinson as the last three New Zealand wickets fell for four runs.
 

Pattinson will start the second innings on a hat-trick after removing Brownlie and No. 11 Chris Martin on consecutive balls. In reply, Australia was 12 for one when rain stopped play, with opener Phil Hughes (4) out cheaply again to a catch behind the wicket.
  
Hughes, considered lucky to hang onto his opening spot after the first test, edged a boundary through a crowded slips cordon to get off the mark, but the left-hander again couldn t resist a good ball outside off stump and angled a Martin delivery to second slip to start the third over.
  
David Warner was unbeaten on seven at stumps.
  
The pacemen were always likely to dominate on a green wicket and in overcast conditions at Bellerive Oval, where Australia has never lost a test match, so it was an important toss for Michael Clarke to win. He wisely elected to bowl first and the Black Caps were all out in 45.5 overs for the same total they made in the second innings of the Gabba test last week.
  
Pattinson, who was not in selection reckoning until injuries to Mitchell Johnson, Ryan Harris and Shane Watson exposed a shortage of experienced international bowlers for this series, is already earning a reputation as a destroyer in only his second test match.
  
He took three wickets off four balls in the first over on Sunday to hasten New Zealand s second-innings collapse at the Gabba, just missing a hat-trick as he claimed 5-27 in the innings and six wickets for the test.

Peter Siddle, who is leading the Australian pace attack, made the early breakthroughs and finished with 3-52. Tall left-armer Mitchell Starc, another bowler in his second test, took the other two wickets Friday.
  
Martin Guptill was out in the second over of the match when he drove forward at a good-length delivery from Siddle and edged to wicketkeeper Brad Haddin.
  
Jesse Ryder, promoted to No. 3, was out lbw on the last ball of the next over, Pattinson s second of the day, as New Zealand slipped to 11-2.
  
Ryder was initially given not out by umpire Nigel Llong but the Australians called for a review and television umpire Aleem Dar overruled the decision.

Ross Taylor (6) was out in similar fashion this time the TV umpire confirmed the onfield lbw decision and sent the New Zealand captain back to the pavilion.

Kane Williamson (19), opener Brendon McCullum (16) and Reece Young (0), went in quick succession as New Zealand lost three wickets for four runs before lunch.
  
Resuming in the middle session at 83-6, Doug Bracewell was out for 12, tempted by a Siddle delivery outside off-stump that he edged straight to Clarke at first slip.
  
Tim Southee was out for 18 chasing a wide delivery from Starc that he hit off his stumps and Pattinson took the last two wickets.
  
Vettori, a 108-test veteran, woke up Friday morning with a left hamstring twinge and exacerbated the injury in the warmup. He was replaced by left-arm seamer Trent Boult, who faced five balls without scoring and was unbeaten at the end of the New Zealand innings in his test debut.
  
The absence of the 32-year-old Vettori was a major blow for the Black Caps, who missed his resilient batting in the lower middle order and are certain to miss his left-arm orthodox spin.
  
Australia retained the same starting XI from its at Brisbane last Sunday, opting not to bring in allrounder Daniel Christian despite questions over Hughes  form and technique.

International World News Police say protesters will not be forcibly evicted

International World News Police say protesters will not be forcibly evicted:
Date December 09 , 2011
Several hundred people moved out of the park that protesters had occupied for more than two months.



Boston police let a midnight deadline slip to clear a park of protesters affiliated with the Occupy Wall Street movement, but the protesters  camp by early on Friday had shrunk roughly by half.

A crowd of several hundred people moved out of the park that protesters had occupied for more than two months and moved into the street in front of the Boston branch of the Federal Reserve, blocking traffic in the late-night hours.

Boston Police Superintendent William Evans said police officials did not plan to forcibly remove protesters, who contend the U.S. economic system no longer works to the benefit of most Americans.

"We re not in any hurry," Evans said. Then he walked through the crowd, spreading that message.

Mayor Thomas Menino on Thursday had ordered protesters to clear the camp by midnight, after a judge ruled they did not have the right to occupy Dewey Square, in the city s financial district.

Protesters had spent much of Thursday taking down tents some had lived in since October, with many saying they wanted to avoid the risk of arrest.

"I m getting out of here. I m not getting arrested," said Rachelle, a 36-year-old woman who said she was homeless and pregnant. She declined to give her last name.

The Occupy Wall Street movement, which started in New York s financial district in September, spread across the country during the autumn, with camps sprouting up in cities including Philadelphia, Los Angles and Portland.

Officials in those cities lost patience with the camps over the past month, and police cleared out camps in cities including New York and Los Angeles, arresting hundreds.

The scene in Boston was raucous through the evening, with hundreds of people pouring into the camp to see what was going on and a brass band dancing through the park. The crowd counted down to the midnight deadline and cheered when it passed. A couple – Aaron Spagnolo, 33, and Nenore Baroumian, 28 – was married in the early morning hours.

Some protesters said they believed their actions had brought economic inequality into the forefront of U.S. politics. "We definitely raised awareness that society is out of whack right now," said Peter Grube, 23, of Boston. "We inspired a new generation of activists."

International World News British troops may leave Afghanistan early

International World News British troops may leave Afghanistan early:
Date December 09 , 2011
Up to 4,000 British troops could leave Afghanistan before the end of 2013. 



Up to 4,000 British troops could leave Afghanistan before the end of 2013 under proposals to be considered by Prime Minister David Cameron next week, a report said Friday.
  
The Guardian reported that the accelerated pace of troop withdrawal was one of three options to be mulled by Cameron at a meeting of Britain s National Security Council on Tuesday.
  
The option is understood to be favoured by at least two senior members of the cabinet, who want to slash the costs of the decade-long military campaign, the paper added.
  
Under current plans, all British combat troops are due to pull out of Afghanistan by the end of 2014.
But under the new option, the number of British troops in strife-torn Helmand province would be reduced from 9,000 to 5,000 during 2013, and almost the same number would be pulled out the following year, the Guardian said.
  
The proposal would leave several hundred British troops in Kabul when NATO ends its combat role in 2014.
  
The British death toll in Afghanistan climbed to 391 on Thursday when a soldier died in hospital in Britain after he was hit by an improvised explosive device -- the name given to roadside bombs laid by the Taliban -- in Helmand.
  
Britain is the second largest contributor of international troops after the United States to the NATO-led ISAF force.
The Ministry of Defence was not immediately available for comment on the report.

Business World News Asian stocks fall on Europe crisis pessimism

Business World News Asian stocks fall on Europe crisis pessimism:
Date December 08 , 2011
Asian stocks fell as hopes faded that a bold solution might be found to a crippling debt crisis.



Asian stocks fell Thursday as hopes faded that a bold solution might be found to a crippling debt crisis that is threatening to drag Europe into a deep recession.

Benchmark oil rose above $100 per barrel while the dollar fell against the euro and the yen.

Japan s Nikkei 225 fell 0.6 percent to 8,670.82, dragged down by weaker-than-expected machinery orders. South Korea s Kospi lost 0.3 percent to 1,913.69 and Hong Kong s Hang Seng shed 0.7 percent to 19,111.64.

Australia s S&P/ASX 200 dropped 0.2 percent to 4,286. Benchmarks in Singapore, Taiwan and India also fell. Mainland China and Malaysia rose.

One point of friction has surfaced over a proposal by French President Nicolas Sarkozy and German chancellor Angela Merkel, leaders of the two economic powerhouses among the 17 nations that use the euro. They are demanding far-reaching changes to the treaty governing the European Union to enforce fiscal discipline among its members.

That proposal is being met with resistance by the European Council, an institution that defines the priorities of the entire 27-nation EU. Its president, Herman Van Rompuy, favors going a simpler route amending existing rules that apply to the 17 euro countries to avoid the trickier step of requiring every country to approve the new treaty.

The disagreement has soured hopes for an immediate solution to the crisis.

"Normally this kind of talk would take place behind closed doors. The fact that it s in the open suggests it already has and normal channels have, at least temporarily, broken down," analysts at DBS Bank Ltd. said in a research note.

Additionally, certain provisions in the Franco-German proposal, such as setting automatic penalties for countries that overspend, are controversial and have the potential to delay an agreement.

Urgency was added to the situation Wednesday when ratings agency Standard & Poor s threatened to downgrade the bonds of all EU countries because their economies were intricately linked with the 17 nations that use the euro.

The intensifying debt crisis and lack of radical solution such as the issuance of eurobonds have roiled global stocks for months. Germany has resisted eurobonds due to fears that pooling debt would drive up its own borrowing costs, expose its taxpayers to the bad debt of weaker countries, and remove incentives for struggling nations to get their finances in order.

"Germany and the rest of Europe are going into two directions. The rest of Europe wants Germany to stand behind the euro but Germany does not want to be the lender of last resort," said Francis Lun, managing director of Lyncean Holdings in Hong Kong. "Because it ... will be the German taxpayer to foot the bill and I don t think that s what Germany wants."

Asian shares faced multiple headwinds. Australia unexpectedly eliminated 6,300 jobs in November. Most economists had predicted total employment would rise by 10,000.

Meanwhile, Japan s core private-sector machinery orders fell a seasonally adjusted 6.9 percent in October, the second consecutive month of decline. Financial markets had expected a 0.5 percent increase, Kyodo News Agency reported. That hurt industrial shares such as Nippon Steel, which lost 1 percent, and industrial supplier Mitsui & Co., down 1.5 percent.

Tokyo Electric Power, operator of the crippled Fukushima nuclear power plant, plunged 7.6 percent after a news report said the government is set to effectively nationalize the utility.

Samsung Electronics rose 2 percent, as Citigroup Global Markets rated its stock "a buy," saying it was expected to be the only profitable major display panel maker in the fourth quarter of 2011.

On Wall Street, the Dow rose 0.4 percent to close at 12,196.37. The Standard & Poor s 500 index rose 0.2 percent at 1,261.01. The Nasdaq composite index fell marginally to 2,649.21.

Benchmark oil for January delivery was up 13 cents to $100.62 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell 79 cents to end at $100.49 per barrel on the Nymex on Wednesday.

In currencies, the euro rose to $1.3404 from $1.3394 late Wednesday in New York. The dollar fell slightly to 77.64 yen from 77.66 yen.

Business World News Euro could collapse and Europe unravel French minister

Business World News Euro could collapse and Europe unravel French minister:
Date December 08 , 2011
The minister has said euro could collapse if political leaders fail to tackle region’s debt crisis.



The European single currency could break up and Europe itself unravel if political leaders fail to tackle the region s debt crisis, France s minister for European affairs warned Thursday.

"The situation is serious... the euro can explode and Europe unravel", Jean Leonetti told France s Canal Plus television, hours ahead of what is being seen as a crucial European summit on the issue in Brussels. He said that if possible all 27 members of the European Union should be involved in talks on tackling the debt crisis but that non-eurozone members might have to be excluded.

"When there are some in the 27 who say  I m not interested in what you are talking about because I never want to join the euro ," like Britain for example, "this should not cause paralysis," he said. The most difficult point of contention at the summit would be "discipline," he said, a reference to France and Germany s efforts to force other eurozone members to accept legal limits on their budget deficits and automatic sanctions for countries who break the rules.

Leonetti also criticised credit rating agencies, who have warned eurozone nations of downgrades if they fail to deal with the crisis.

"They annoy me a bit.... It is not for the credit agencies to be involved in politics that is for the people and the people s representatives," he said.

Business World News Pakistan’s forex reserves fall to $16.68b

 Business World News Pakistan’s forex reserves fall to $16.68b:
Date December 08 , 2011
Pakistan’s foreign exchange reserves fell to $16.68 billion in week ending Dec 2.



The resirves declined compared with $16.88 billion in the previous week, the central bank said on Thursday.

Reserves held by the State Bank of Pakistan (SBP) fell to $12.86 billion, compared with $13.12 billion the previous week.
Reserves held by commercial banks rose to $3.82 billion, compared with $3.76 billion from the previous week.

“The fall in reserves is due to scheduled debt repayments,” said Syed Wasimuddin, chief spokesman for the State Bank of Pakistan.

Foreign exchange reserves hit a record $18.31 billion in the week ending July 30, but have since eased due to debt repayments.

The reserves were boosted in June by inflows of $411 million, including a $191.9 million loan from the World Bank, and a loan of $196.8 million from the Asian Development Bank.

Higher export proceeds and a record inflow of remittances have also helped support Pakistan’s foreign exchange reserves.

According to official data, remittances rose 23.24 percent to $4.3 billion in the first four months of the 2010/11 fiscal year (July-June), compared with $3.50 billion in the same period last year.

Remittances rose to $1.02 billion in October, compared with $855.11 million received in October last year.

cricket world news Buoyant Pakistan gear for B'desh Tests

Cricket world news Buoyant Pakistan gear for B'desh Tests:
Date December 08 , 2011
Pakistan will begin their first Test series in B'desh for almost a decade in Chittagong on Friday.



The tourists, who beat Sri Lanka in all formats of the game in the United Arab Emirates last month, have already asserted their supremacy over Bangladesh by making a 3-0 clean sweep of the one-day series.

Pakistan played their lone Test series in Bangladesh in January 2002, winning both matches in Dhaka and Chittagong by an innings under the captaincy of Waqar Younis.

Pakistan have won all of their six Tests against Bangladesh since 2001, the closest match being in Multan in 2003 when they triumphed by one wicket following Inzamam-ul-Haq s match-winning unbeaten century.

The tourists, now led by reliable batsman Misbah-ul-Haq, were not seriously tested in the one-dayers against the hosts after putting in impressive performances with both bat and ball.

But senior Pakistani batsman Younis Khan said Thursday he expected a tough fight from Bangladesh in the Tests.

"When we play Tests we expect a Test-level competition," he said. "They struggled in the limited-overs matches, but Test cricket is a different ball game.

"If they stick to their goals, they will give us tough competition. It will not be easy for us since Bangladesh are playing in home conditions."

Bangladesh strengthened their brittle batting by including former captain and middle-order batsman Mohammad Ashraful in the 15-man squad.

Ashraful, with 2,418 runs in 56 Tests, will look to justify his recall after being dropped for the home series against the West Indies in October-November.

"During the one-dayers, our fielders and bowlers did a good job, so it s time our batsmen put up a good performance," said Bangladesh s top-order batsman Shahriar Nafees.

"The focus now is on the Test series. We want to come back strongly and play our best cricket."

Bangladesh will rely on their spin attack led by Shakib Al Hasan and Elias Sunny to keep pressure on the Pakistani batting line-up at the traditionally spin-friendly venue in Chittagong.

Shakib is the key all-rounder in the side with 1,421 runs and 89 wickets in 24 Tests, while Sunny made an impressive seven-wicket Test debut at this venue against the West Indies two months ago.

Bangladesh will seek to improve their dismal run since gaining Test status in 2000, losing 61 of their 71 matches, winning just three with seven drawn.

The second and final Test will be played in Dhaka from December 17.

Bangladesh (from): Mushfiqur Rahim (capt), Mohammad Mahmudullah, Tamim Iqbal, Shahriar Nafees, Mohammad Ashraful, Shakib Al Hasan, Naeem Islam, Nasir Hossain, Rubel Hossain, Nazmul Hossain, Elias Sunny, Shahadat Hossain, Suhrawadi Shuvo, Robiul Islam, Mohammed Nazimuddin.

Pakistan (from): Misbah-ul-Haq (capt), Mohammad Hafeez, Taufeeq Umar, Imran Farhat, Younis Khan, Azhar Ali, Asad Shafiq, Shoaib Malik, Adnan Akmal, Saeed Ajmal, Abdur Rehman, Umar Gul, Mohammad Talha, Aizaz Cheema, Mohammad Khalil.

cricker world news India set huge tally of 418 for Windies

Cricker world news India set huge tally of 418 for Windies :
Date December 08 , 2011
India piled up a mammoth 418-5 against West Indies in fourth ODI at Holkar Cricket Stadium.



Sehwag broke compatriot Sachin Tendulkar s previous one-day mark of 200 not out against South Africa at Gwalior last year, smashing 25 fours and seven sixes in his 149-ball knock.

Sehwag s 15th ODI century was his first as captain and beat his previous highest score of 175 against Bangladesh at the 2011 World Cup. His innings also helped his team record its highest ever ODI total.

The hard-hitting Sehwag got to his hundred in only 69 balls with a four through point off pace bowler Kieron Pollard.

After a few singles in the 190s, Sehwag cracked another four through point, this time off Andre Russell, to move from 197 to 201 to beat Tendulkar s record.
The 33-year-old raised his hands in joy as he was congratulated by batting partner Rohit Sharma.

Sehwag had looked in trademark touch early on, hitting a six over third man off pace bowler Kemar Roach and then welcoming Sunil Narine into the attack with a six to long-on off the off-spinner s first ball.

He hammered Narine for another six over long-on later in the innings while also hitting three sixes off seam bowler Russell and one off captain Darren Sammy.

Sehwag, who captained India in the absence of regular skipper Mahendra Singh Dhoni, was dropped on 170 by Sammy off pace bowler Ravi Rampaul.

Electing to bat, captain Sehwag added 176 runs for the opening wicket with Gautam Gambhir (67) and 140 for the next with Suresh Raina (55) as India looked set to seal the five-game series which it leads 2-1.

Gambhir, who replaced Parthiv Patel as opener after batting at number three in the first three games, got most of his early runs on the off side and opted not to go for big shots with Sehwag running riot at the other end.

He was unlucky to be run out when he looked set for more as Sehwag called him for a run but then refused it, as extra-cover fielder Marlon Samuels got a direct hit at the runner s end.

Raina too was happy playing second fiddle to Sehwag, his 44-ball knock seeing him hit six fours.

India handed a debut to legspinner Rahul Sharma, who replaced pace bowler Umesh Yadav.

Yadav is among seven players to have left early for an upcoming tour of Australia.

The West Indies drafted in Kieran Powell for left-handed batsman Darren Bravo, who had retired on 26 in the previous game due to a hamstring injury.

The final game of the series will be held in Chennai on Sunday.

International World News Romania hosted secret CIA detention centre

International World News Romania hosted secret CIA detention centre:
Date December 08 , 2011
CIA used a clandestine detention centre in Bucharest to interrogate Al-Qaeda suspects.


This has been revealed in an investigation by German media Thursday.

The prison, used between 2003 and 2006, was in the cellar of a government building in a northwestern residential neighbourhood of the Romanian capital, the Sueddeutsche Zeitung newspaper and ARD public television said.

The building housed the Office of the National Register for Secret State Information, or ORNISS, which stored confidential information and ensured only authorised people gained access to it, the reports said.

According to the investigation, detainees included Khaled Sheikh Mohammed, a top Al-Qaeda operative and mastermind of the September 11 attacks on the United States in 2001, who was arrested in Pakistan in 2003.

Abd al-Rahim al-Nashiri, the alleged plotter of the USS Cole bombing in Yemen in 2000, was also held at the Romanian centre, ARD said.

Journalists from the two media organisations, as well as the Associated Press news agency, said the centre was identified in photos by former CIA operatives active in Bucharest.

The centre was codenamed "Bright Light", the Sueddeutsche newspaper said.

Although the existence of a so-called "black site" in Romania, set up by the Central Intelligence Agency as part of its clandestine counter-terrorism operations, has long been suspected, its location was unknown.

Just days before the 10th anniversary of the September 11 attacks, the Council of Europe s human rights chief urged Poland, Romania and Lithuania to lift the lid on CIA "black sites" where detainees were allegedly tortured on their soil.

Romania has vehemently denied hosting such a site.

In ARD s Panorama programme, due to be broadcast later Thursday, an ORNISS official denied the prison had existed on its premises, according to a statement from the television station.

ORNISS was reported to have been set up for Romania s 2004 NATO entry. ARD said the Brussels-based alliance declined comment.

International World News Syrians launch civil disobedience campaign

International World News Syrians launch civil disobedience campaign:
Date December 08 , 2011
Syrian activists on Thursday launched a campaign of civil disobedience to pile pressure on Assad.  



Local human rights groups said more than 100 people have been killed in Syria since the weekend, and the UN estimates at least 4,000 have died since March when anti-regime protests erupted.

But in a rare interview with Western media, President Assad questioned the UN toll and denied ordering the killing of protesters, saying only a "crazy person" would do so.

Washington said Assad s remarks showed he was disconnected from reality or himself "crazy," as he comes under mounting global pressure, with Arab nations and Turkey joining the West in pursuing sanctions against his regime.

Despite the rhetoric, activists said there was no let-up in the crackdown with forces loyal to Assad on Thursday killing at least seven civilians, including a woman, in an assault on the restive central city of Homs.

Forces used sniper fire and "arbitrary" shelling in three neighbourhoods of the city, a main hub for dissent that has been besieged for more than two months, said the Britain-based Syrian Observatory for Human Rights.

The Local Coordination Committees activist network reported separately that Assad s forces used bombs and "heavy and indiscriminate gunfire" in Damascus and northwestern Idlib province.

State news agency SANA said, meanwhile, that "an armed terrorist group targeted in a sabotage operation the pipeline of Tal al-Shor, west of Homs."

The LCC, which organises anti-regime protests on the ground in Syria, appealed for citizens to mobilise for a "dignity strike ... which will lead to the sudden death of this tyrant regime."

The campaign would "snowball... and grow each day of the revolution to reach every home and anyone who wants to live delighted and dignified in his/her country," said an LCC statement received in Nicosia.

It urged citizens to begin the action on Sunday -- the first day of the working week in Syria -- starting with sit-ins at work, and the closure of shops and universities, before the shutdown of transportation networks and a general public sector strike.

"The Syrian revolution is... a renaissance against slavery; a scream at the face of humiliation started from the first day as demonstrators cried  Syrians are not to be humiliated. 

"The echo of this scream will not vanish till it reaches all ears," said the English-language statement, adding the strike was "the first step in an overall civil disobedience" campaign which will overthrow the regime.
In his interview, Assad denied he ordered the killing of thousands of protesters and brushed aside charges that Syrian forces tortured to death a 13-year-old boy, whom rights groups say was shot, burned and castrated in April.

"Every  brute reaction  was by an individual, not by an institution, that s what you have to know," Assad told US television network ABC News.

"There is a difference between having a policy to crack down and between having some mistakes committed by some officials. There is a big difference."

Assad said he was not responsible for the nine months of bloodshed, declaring: "No government in the world kills its people, unless it s led by a crazy person."

"There was no command to kill or be brutal," Assad told ABC.

Assad said security forces belonged to "the government" and not him personally.

"I don t own them. I m president. I don t own the country. So they are not my forces," he said.

Assad s family has ruled Syria with an iron fist for four decades. Assad s brother, Lieutenant Colonel Maher al-Assad, heads the army s Fourth Division, which oversees the capital as well as the elite Republican Guard.

US State Department spokesman Mark Toner dared Assad to back up his assertions by letting in international observers and media, saying there was a "clear campaign against peaceful protesters."

"It either says that he s completely lost any power that he had within Syria, that he s simply a tool or that he s completely disconnected with reality," Toner told reporters Wednesday.

"It s either disconnection, disregard or, as he said, crazy. I don t know," Toner said.

International World News Putin slams Clinton for encouraging protesters

International World News Putin slams Clinton for encouraging protesters:
Date December 08 , 2011
PM Vladimir Putin strongly criticized US Secretary of State Hillary Rodham Clinton on Thursday.



Putin accused her of encouraging and funding Russians protesting election fraud, and warned of a wider Russian crackdown on dissent.

By describing Russia s parliamentary election as rigged, Putin said Clinton "gave a signal" to his opponents.

"They heard this signal and with the support of the U.S. State Department began their active work," Putin said in televised remarks. He said the United States is spending "hundreds of millions" of dollars to influence Russian politics with the aim of weakening a rival nuclear power.

Putin s tough words show the deep cracks in U.S.-Russian ties despite President Barack Obama s efforts to "reset" relations with the Kremlin. Ahead of the election, President Dmitry Medvedev threatened to deploy missiles to target the U.S. missile shield in Europe if Washington failed to assuage Moscow s concerns about its plans.

Clinton has repeatedly criticized Sunday s parliamentary vote in Russia, saying "Russian voters deserve a full investigation of electoral fraud and manipulation."

Russian protesters have taken to the streets in Moscow and St. Petersburg for three straight nights despite a heavy police presence, outraged over observers  reports of widespread ballot box stuffing and manipulations of the vote count. This week has seen some of the biggest and most sustained protests Russia has faced in years, and police have detained hundreds of protesters.

Thousands were expected to join protests in Moscow and other cities on Saturday.

Putin s United Russia party barely held onto its majority in parliament, with official results giving it about 50 percent of the vote, down from 64 percent four years ago. But the fraud allegations indicate that support for United Russia was even lower than that, and Russians appear to be growing weary of Putin and his party after nearly 12 years in office.

Putin was president from 2000 until 2008, when he moved into the prime minister s office to abide by a constitutional limit on two consecutive terms. He intends to reclaim the presidency after an election in March that would give him at least six more years in power.

Putin s return to the Kremlin still seems assured, but he clearly has been shaken by the outburst of public anger and it is not yet clear how much of a challenge it will pose to his power.

Moscow has already put about 50,000 police and 2,000 paramilitary troops on the streets, backed by water cannon.
Putin warned that the government might take an even harder line against those who try to influence Russia s political process on behalf of a foreign government.

He accused the U.S. State Department of spending "hundreds of millions" of dollars in Russia and his government has to "work out ways to protect our sovereignty from outside interference."

"We are the largest nuclear power," Putin said, addressing supporters during a televised meeting. "And our partners have certain concerns and shake us so that we don t forget who is the master of this planet, so that we remain obedient and feel that they have leverage to influence us within our own country."

He said "especially unacceptable is the infusion of foreign money into the electoral process."

Clinton reached out to Russia on Thursday.

"I think it s important to recognize that we value our relations with Russia," she said at a NATO meeting in Brussels, where she also met with Russian Foreign Minister Sergey Lavrov. "We have invested a great deal of effort on working together ... and we have made progress."

Clinton defended her criticism of the elections, saying she was expressing concerns the U.S. thought were well-founded.

Russia s only independent election monitoring group, which is supported by grants from the United States and European governments, has come under heavy official pressure in recent weeks. The Golos website documenting violations was hacked and the group was fined the equivalent of $1,000 after prosecutors accused it of violating election law.

Putin s attempt to rally support by blaming the United States for his troubles would find little support among ordinary Russians, said political analyst Dmitry Oreshkin.

"Even in Soviet times, it did not work," Oreshkin said. "Now it won t work for sure."

Also Thursday, Russia s top election official urged prosecutors to study photographs and video clips circulating on social networking sites that purport to show election fraud, and signaled that those who posted the materials could be punished.

If the images show genuine violations, they will be investigated, Central Election Commission chief Vladimir Churov said. But if evidence is found that the photographs and videos were "provocations" or faked, those who created, commissioned or sponsored them will be held to account, he said.

Opposition groups have called for a mass protest near the Kremlin on Saturday to demand recount of the vote. About 30,000 people have now signed up to a Facebook page on the protest.

A map circulating on the Internet shows similar protests planned for Saturday in more than 75 cities around Russia, while a page on LiveJournal lists more planned protests in 15 countries around the world.

The use of the Internet to mobilize and organize protesters in Russia is a new phenomenon.

"I used to express my opinion in my blog, in social networks, I wasn t really politically active," said Artyom Goryachev, a 27-year-old PR manager. "But enough is enough. I am fed up with all of this." He said he planned to go to Saturday s protest with friends from work.

Anton Nossik, a popular blogger and Internet expert, said it was not the Internet that energized the protesters but the brazen vote rigging that prompted many young Russians to express their discontent offline.

"They came out not because they read information (online) on where to show up for the first time, but because for the first time many people got the feeling that the time had come for that," Nossik said.

Sam Greene, director of the Center for the Study of New Media and Society in Moscow, said this week s protests in Moscow were a combination of online and offline social networks working together. "They re going out to protests with people they know, with people they trust," he said.

The Internet doesn t create protests or a revolution, "but it certainly makes it possible for people to communicate and to learn about what s going on around them in an environment like Russia, where the traditional media are much more closely controlled," Greene said.

Russia s Kremlin-controlled television networks have largely ignored the demonstrations.

International News Pentagon declines to identify downed aircraft type

International News Pentagon declines to identify downed aircraft type:
Date December 07 , 2011
US officials have been tight-lipped about Iranian claims that its military downed an RQ-170. 



The unmanned US drone Iran said on Sunday it had captured was programmed to automatically return to base even if its data link was lost, one key reason that U.S. officials say the drone likely malfunctioned and was not downed by Iranian electronic warfare.

US officials have been tight-lipped about Iranian claims that its military downed an RQ-170 unmanned spy plane, a radar-evading, wedge-shaped aircraft dubbed "the Beast of Kandahar" after its initial sighting in southern Afghanistan.

The U.S.-led NATO mission in Afghanistan said the Iranians might be referring to an unarmed reconnaissance aircraft that disappeared on a flight in western Afghanistan late last week. But they declined to say what type of drone was involved.

A U.S. government source, who spoke on condition of anonymity, said the plane was on a CIA mission. The CIA and Pentagon both declined to comment on the issue.

The incident came at a time of rising tensions between Iran and the West over Tehran s nuclear program. The United States and other Western nations tightened sanctions on Iran last week and Britain withdrew its diplomatic staff from Tehran after hard-line youths stormed two diplomatic compounds.

The United States has not ruled out military action against Iran s nuclear facilities if diplomacy fails to resolve a dispute over the program, which Washington believes is aimed at developing atomic weapons.

The RQ-170 Sentinel, built by Lockheed Martin <LMT.N>, was first acknowledged by the US.Air Force in December 2009. It has a full-motion video sensor that was used this year by US.intelligence to monitor al Qaeda leader Osama bin Laden s compound in Pakistan ahead of the raid that killed him.

Former and current military officials familiar with the

Sentinel said they were skeptical about Iranian media reports that Iran s military brought down one of the drones in eastern Iran, especially since Tehran has not released any pictures of the plane.

The aircraft is flown remotely by pilots based in the United States, but is also programmed to autonomously fly back to the base it departed from if its data link with U.S.-based pilots is lost, according to defense analyst Loren Thompson, who is a consultant for Lockheed and other companies.

Other unmanned aircraft have a similar capability, including General Atomics  Predator drone, industry sources said. The fact that the plane did not return to its base suggests a "catastrophic" technical malfunction, agreed one industry executive familiar with the operation and programming of unmanned aerial vehicles.

US officials say they always worry about the possibility of sensitive military technologies falling into the hands of other countries or terrorist groups, one reason U.S. planes quickly destroyed a stealthy helicopter that was damaged duringthe bin Laden raid in Pakistan.

Many classified weapons systems have self-destruction capabilities that can be activated if they fall into enemy hands but it was not immediately clear if that was the case this time.

In this case, the design of the plane and the fact that it had special coatings that made it nearly invisible to radar were already well documented. If it survived a crash, all on-board computer equipment was heavily encrypted.

Lockheed confirmed that it makes the RQ-170 drone, which came out of its secretive Skunk Works facility in southern California, but referred all questions about the current incident to

Thompson and several current and former defense officials said they doubted Iranian claims to have shot the aircraft down because of its stealthy features and ability to operate at relatively high altitudes.

Iran was also unlikely to have jammed its flight controls because that system is highly

"The U.S. Air Force has experienced declining attrition rates with most of its unmanned aircraft. However this is a relatively new aircraft and there aren t many in the fleet, which means that malfunctions and mistakes are more likely to occur," Thompson said.

One former defense official familiar with the RQ-170 and other unmanned aircraft said he "absolutely" agreed that the aircraft was not lost due to any action by Iran.

Exact details about the drone remain classified but industry insiders say the plane flies at around 50,000 feet and may have a wing span of up to 90 feet. Its shape harkens back to the batwing design of the radar-evading B-2 bomber.

Business News EU seeks to save the euro but S&P isn't convinced

Business News EU seeks to save the euro but S&P isn't convinced:
Date December 07 , 2011

France and Germany jointly have called for changes to the European Union treaty.

So that countries using the euro would face automatic penalties if budget deficits ran too high.


But not everyone on Wall Street was reassured that Europe would get control of its 2-year-old debt crisis.


Stock prices rose and borrowing costs for European governments dropped sharply in response to the changes proposed on Monday by French President Nikolas Sarkozy and German Chancellor Angela Merkel. But some of the optimism faded late in the day when Standard and Poor s threatened to cut its credit ratings on 15 eurozone countries, including the likes of Germany, France and Austria which have been considered Europe s safest government debt issuers.


The announcement came only hours after Sarkozy and Merkel revealed sweeping plans to change the EU treaty in an effort to keep tighter checks on overspending nations. The proposal is set to form the basis of discussions at a summit of EU leaders on Thursday and Friday that is expected to provide a blueprint for an exit from the crisis.


While the Franco-German plan would tie the 17-eurozone nations closer together, a tighter union would likely also result in heavier financial burdens for the region s stronger economies, which have already put up billions of euros to rescue Greece, Ireland and Portugal.


Analysts noted that the proposals did not foresee a clear roadmap on how to get the eurozone economies growing again and to reduce funding costs for struggling nations in the long term.
"If this is all we get it s really very bad news for the future of the euro," said Simon Tilford, chief economist at London s Centre for European Reform.


Many analysts have called on the European Central Bank to intervene in debt markets to lower struggling countries  borrowing costs or the creation of eurobonds
debt backed by all 17 euro countries.
The euro fell after the S&P announcement, trading down 0.1 percent at $1.339, and trading in futures on the S&P 500 and Dow Jones Industrial Average turned negative.


After the New York markets closed, S&P confirmed that it had placed 15 nations on notice for possible downgrades. Only two countries that use the euro weren t affected: Cyprus already had that designation and Greece already has ratings low enough to suggest that it s likely to default soon anyway.


France and Germany, the eurozone s two largest economies which currently both have an AAA-rating, quickly came out against the S&P move.


"Germany and France reaffirm that the proposals they made jointly today will reinforce the governance of the euro area in order to foster stability, competitiveness and growth," they said in a joint statement. "France and Germany, in full solidarity, confirm their determination to take all the necessary measures, in liaison with their partners and the European institutions to ensure the stability of the euro area."


Stocks had risen after the leaders of France and Germany called for a new treaty to impose greater fiscal discipline on European countries. Yields on Italian government bonds receded sharply after the new premier Mario Monti introduced sweeping austerity measures over the weekend. That suggests traders believe Italy is less likely to default.


Investors are hoping that the summit of European leaders on Thursday and Friday will produce concrete measures to prevent a messy breakup of the euro currency, which is shared by 17 nations. Markets have been jittery because of fears that the euro might disintegrate, causing a sharp recession in Europe that would spread through the world economy.


"Our wish is to go on a forced march toward re-establishing confidence in the eurozone," Sarkozy said at a news conference in Paris on Monday, with Merkel at his side. "We are conscious of the gravity of the situation and of the responsibility that rests on our shoulders."


EU treaty changes could take months, if not years, to implement and don t wipe away the mountains of government debt dragging down Europe s economy. But preliminary buy-in Friday from the 17 countries that use the euro could set the stage for further emergency aid from the European Central Bank, the International Monetary Fund or some combination.


"The onus is still on the ECB to print money to make huge loans or bond purchases and draw a line under the crisis," said Jennifer McKeown, senior European economist at Capital Economics. "Perhaps if other member states sign up to Merkel s and Sarkozy s proposals this week the (ECB) will step in."


Sarkozy pledged to have a revised EU treaty ready for signing by March. It would then need to be ratified in each country, which could mean lengthy parliamentary debates or national referendums in some cases.


"A lot depends on the specifics and how these are going to be framed by lawyers," said Piotr Maciej Kaczynski, an expert on EU constitutional issues at the Center for European Policy Studies in Brussels.


At the very least, it could take at least 18 months to ratify a new treaty once it has been signed by all heads of state, said Kaczynski. "That is a much longer timeline than what markets might want," he said.


Bond-market analysts said they remain skeptical of Europe s ability to prevent future profligacy. "If you say it strong enough and often enough maybe people will believe it," said Guy LeBas, chief fixed income strategist at Janney Montgomery Scott. "But I don t think the markets believe  Merkozy  at this point."


EU governments reacted with caution.


No other EU leaders came out against the Franco-German proposals, but no strong statements in favor were immediately forthcoming. The reaction from Austrian Finance Minister Harald Waiglein was fairly typical: "There is nothing here that contradicts our position," although more details are needed, he said.


The modern EU is based on a set of treaties, dating as far back as the 1950s, when the project of consolidating the continent began. The treaties detail the rules that countries must follow and outline the mandates of institutions like the ECB. The most recent was the Lisbon Treaty, which was ratified in 2009, giving additional powers to the European Commission and European Parliament.


Sarkozy said he and Merkel would prefer that the treaty changes they re proposing be agreed to by all 27 members of the EU. But he left the door open to an agreement only among the 17 euro countries and anyone else "who wants to join us."
Sarkozy and Merkel discussed several broad changes for the EU treaty, but failed to provide much detail. The changes they outlined included:


Introducing an automatic penalty for any government that allows its deficit to exceed 3 percent of GDP. A majority of nations would need to oppose automatic sanctions for a country to avoid them.


Governments are supposed to abide by the deficit limit under existing rules, but many, including France, have flouted it. Further, punishment only occurs after a majority of euro countries votes to impose them.


Requiring countries to enshrine in law a promise to balance their budgets.


A key issue for the proposal s final approval will be how much flexibility countries can have to run temporary deficits during economic downturns.


Pledging that any future bailouts would not require private bond investors to absorb a part of the costs, as was the case for the Greek bailout.


Germany had earlier insisted that Europe s permanent bailout fund would demand private investors take losses if a country in the future needs rescuing.


Promising to not criticize or otherwise comment on the work of the ECB.




This is intended to ensure the bank s independence and its ability to act without pressure from European leaders.
Sarkozy said more details would be included in a letter sent Wednesday to European Council President Herman Van Rompuy.


After Sarkozy and Merkel spoke, stocks rose and borrowing rates for governments across Europe plunged, indicating a sharp rise in investor confidence in the continent s ability to resolve the crisis.


France s CAC-40 index climbed 1.2 percent, Germany s DAX rose 0.4 percent and markets outside of Europe also pushed higher, with the Dow Jones industrial average up 1.2 percent.


French banks, which have been hit hard this year over fears about their large exposure to the government bonds of financially weak countries like Greece, saw some of the biggest gains.


Societe Generale s stock price climbed 6.2 percent while BNP Paribas rose 4.9 percent. In Italy, shares of Unicredit rose 5.4 percent while Spain s Santander rose 3.6 percent.
Worries about the stability of the euro reached a fever pitch in recent weeks as the yields on Italy s bonds 

in a nutshell, its borrowing costs 

jumped above 7 percent. That is the level that eventually forced Greece, Ireland and Portugal to require bailouts. By comparison, bond yields in Germany, Europe s largest and most stable economy, are roughly 2 percent.

Italian and Spanish bond yields fell sharply on Monday, an indication of growing investor confidence in their financial future. The yield on Italy s benchmark 10-year bond fell from 6.65 percent to 5.93 percent.

Italy, whose government debt is equivalent to 120 percent of the country s annual economic output, needs to refinance $270 billion of its $2.6 trillion of outstanding debt by the end of April.

The size of the problems facing Italy and Spain are considered too large for the existing funds available to the European Financial Stability Facility ($590 billion) and the IMF ($389 billion.) To boost the firepower of the IMF, several economists have proposed that the ECB lend to it.

The big threat to the global financial system is that Europe s debt crisis could spiral out of control.

If governments default on their bonds, banks that own them could take a significant hit. It could become very difficult for these banks to borrow and nervous depositors could flee with their cash. In the worst case, a global financial panic could be triggered, in which banks all over are too skittish to lend to each other.

That would cause a credit crunch that deprives businesses of the short-term financing they depend on for day-to-day operations.

With such fears in the air, the United States is ratcheting up its involvement.

International News Afghanistan opens bids on gold, copper deposits

International News Afghanistan opens bids on gold, copper deposits:
Date December 07 , 2011

Afghanistan has high hopes that its budding mining industry will generate billions in revenue. 

Afghanistan opened bids Tuesday on copper and gold deposits in four areas of the country that together are roughly half the size of the Grand Canyon.


Afghanistan has high hopes that its budding mining industry will generate billions in revenue to help rebuild the nation after 30 years of war. For Afghanistan, a violent, landlocked country with virtually no exports, the minerals are a potential windfall, although formidable obstacles remain, including lack of investment, infrastructure and adequate security in most of the country.


The Afghan Ministry of Mines invited investors to bid on multiple contracts to unearth copper and gold hidden beneath 846 square miles (2,191 square kilometers) in Badakhshan, Ghazni and Herat provinces and a fourth area that spans both Balkh and Sar-e-Pul provinces. The tender offers were posted on its web site.


Afghan Minister of Mines Wahidullah Shahrani was expected to officially announce the bids later in the day in London.
Geologists have known for decades about Afghanistan s vast deposits of iron, copper, cobalt, gold and other prized minerals, including rare earth minerals used in cell phones, hybrid car batteries, defense industries and wind turbines.


The U.S. Defense Department put a startling $1 trillion price tag on the vast mineral reserves, but the Afghan ministry calls that a conservative estimate, saying that other geological assessments and industry reports estimate the nation s mineral wealth at $3 trillion or more.


In late 2007, a $3 billion contract was awarded to China Metallurgical Group Corp. to mine copper at Aynak in Logar province, 21 miles (35 kilometers) southeast of Kabul. The mine is thought to hold one of the world s largest untapped copper reserves.


Mining the copper could create 4,000 to 5,000 Afghan jobs in the next five years and hundreds of millions of dollars a year to the government treasury, according to the ministry. The project also includes construction of two coal-fired electric power plants, a segment of rail and a roadway from the mine to Kabul.


In December 2010, Afghan officials approved a multimillion-dollar contract to mine gold in Dushi district of Baghlan province. It was the first mining project in Afghanistan backed by private investors from the West, who pledged $50 million for the project.


Last month, the Afghan government gave investors from India and Canada to mine an estimated 1.8 billion tons of iron ore in Bamiyan province, projects that government officials hope will reap revenue for the nation and jobs for its unemployed.


With rising revenues from mining projects, customs and taxes, the Afghan government predicts it can increase the ratio of revenues to its gross domestic product from 11 percent to 15 percent within four years and to 20 percent by 2025, according to the Ministry of Finance.


Still with the planned withdrawal of most international combat forces and an expected decline in foreign assistance, Afghanistan is facing a fiscal crisis.


At an international conference on Monday in Bonn, Germany, Afghan President Hamid Karzai said that Afghanistan would need the financial support of other countries for at least another decade beyond 2014.


Afghanistan estimates it will need outside contributions of roughly $10 billion in 2015 and onward, slightly less than half the country s annual gross national product, mostly because it won t be able to pay for its security forces.

Business News Asian shares slip on S&P eurozone warning

Business News Asian shares slip on S&P eurozone warning:

Date December 06 , 2011

Asian markets fell after news that France and Germany have outlined a plan to save Euro. 

Asian markets fell in cautious trade Tuesday as a Standard & Poor s warning of a possible downgrade for the eurozone offset news that France and Germany had outlined a plan to save the single currency.

The decision by S&P came as European leaders prepared for a two-day summit considered crucial for the future of the eurozone, whose debt crisis has sent global markets into turmoil.

BBY senior institutional trader Peter Copeland said the market was anticipating positive political leadership over the crisis, but added: "The S&P move is a reminder that it s not all over."

Tokyo gave up 1.39 percent, or 120.82 points, to 8,575.16 and Seoul lost 1.04 percent, or 20.08 points, to end at 1,902.82.

Sydney closed 1.48 percent, or 64.1 points, lower at 4,257.2 after Australia s central bank cut interest rates and warned of headwinds in the global economy.

Hong Kong fell 1.24 percent, or 237.46 points, to 18,942.23 and Shanghai lost 0.31 percent, or 7.32 points, to 2,325.91.

S&P said on Monday it had put the ratings of 15 of the 17 eurozone countries, including Germany and France, on negative watch.

The summit was "an opportunity for policymakers to break the pattern of what we consider to have been defensive and piecemeal measures to date... and advance a credible response to the crisis that would go far towards restoring investor confidence," it said.

"If the response of policymakers is not viewed by investors as robust, we believe market confidence could take another, possibly steep, drop downwards" that could force the downgrade, it said.

A review of ratings would be completed "as soon as possible" following the Brussels summit on Thursday and Friday.

S&P s surprise announcement came just hours after German Chancellor Angela Merkel and French President Nicolas Sarkozy thrashed out strict new rules for fiscal discipline within Europe, which they  hope will finally end the region s woes.

The new rules would be enshrined in a rewritten EU Treaty signed by all 27 EU members or, as an alternative, by just the 17 eurozone members with the other nations signing on a voluntary basis.

Markets in Europe -- which closed before S&P s move -- rose on the plan while Italian bond rates fell below the 6.0 percent threshold for the first time since the end of October. Rates also dropped on Spanish and French bonds.


An early rally on Wall Street was pared by the ratings warning. The Dow ended up 0.65 percent, the tech-heavy Nasdaq added 1.10 percent and the broader S&P 500 added 1.03 percent.

On currency markets the euro fetched $1.3360 and 103.90 yen in afternoon Asian trade, compared with $1.3394 and 104.27 yen in New York late Monday.

The dollar was down slightly at 77.75 yen, against 77.83 yen.

The Australian dollar fell at one point to US$1.0180 Tuesday from US$1.0215 Monday after the Reserve Bank of Australia cut interest rates by 25 basis points for the second straight month and warned of pressure from a slowing global economy. But in later trade it recovered slightly to sit at US$1.0203.

While the rate cut would be welcomed ahead of Christmas bank chief Glenn Stevens said there was a likelihood of further pressure on world growth caused by tighter credit conditions.

Meanwhile the Asian Development Bank trimmed its 2012 growth projections for emerging East Asian economies, including China, from 7.5 percent to 7.2 because of the continuing eurozone uncertainties.

It said "major downside risks" included a deep recession in Europe and the United States, higher protectionism and persistent inflation.

New York s main oil contract, light sweet crude for January delivery, fell 21 cents to $100.78 a barrel in the afternoon. Brent North Sea crude for January shed 30 cents to $109.51. Gold was trading at $1,720.33 an ounce at 0820 GMT, from $1,744.88 late Monday.

In other markets:

Taipei fell 2.00 percent, or 141.80 points, to 6,956.28. Taiwan Semiconductor Manufacturing Co lost 1.18 percent to Tw$75.4 while design house MediaTek dived 6.6 percent to Tw$262.0. -- Manila fell 0.21 percent, or 8.95 points, to 4,282.77.

Lepanto Mining fell 6.8 percent to 1.65 pesos, Ayala Land slipped 0.3 percent to 15.96 pesos and Philippine Long Distance Telephone gained 0.3 percent to 2,414 pesos. Wellington closed down 0.34 percent, or 11.09 points, at 3,290.13.

Air New Zealand fell 1.60 percent to NZ$0.92 and Telecom dipped 0.50 percent to NZ$1.99 while Port of Tauranga was up 2.7 percent at NZ$10.07 and Freightways gained 1.8 percent to NZ$3.45.

International News Interest rates cut before Christmas

International News Interest rates cut before Christmas:
Date December 07 , 2011
Australian were handed an early Christmas present as bank cut interest rates for 2nd month in a row.



But it warned the slowing global economy continued to pose risks.


Despite expectations of strong domestic growth in the third quarter to September, the Reserve Bank of Australia again slashed by 25 basis points to 4.25 percent having cut in November for the first time since April 2009.


Economists were split on whether they would move again ahead of a summit of European leaders this week seen as crucial for the future of the eurozone, but the bank said the inflation outlook "afforded scope for a modest reduction".


"The Board will continue to set policy as needed to foster sustainable growth and low inflation over time," RBA governor Glenn Stevens said, with rates now at their lowest level since April 2010.


It was the first back-to-back monthly cuts since the depth of the global financial crisis in April 2009 and the dollar sank more than half a US cent to US$1.0188 cents following the announcement.


While the Australian economy remains resilient, Stevens said global growth had moderated, including in China, a major trade partner, with Asia starting to see some effects of a significant slowing in economic activity in Europe.


"Financial markets have experienced considerable turbulence, and financing conditions have become much more difficult, especially in Europe," he said.


"This, together with precautionary behaviour by firms and households, means that the likelihood of a further material slowing in global growth has increased.


"Commodity prices have reflected this, declining further over recent months and taking pressure off CPI inflation rates. This has increased the scope for some easing in monetary policy in a number of countries."


Australian growth data for April-September is due for release Wednesday, with economists forecasting the economy expanded between one and 1.3 percent quarter on quarter. Growth in the three months to June was 1.2 percent.


Inflation was running at 0.6 percent in the September quarter.


RBC economist Su-Lin Ong said the decision to cut rates was all about concerns over the impact of the European debt crisis on global growth.


"We think that really, while the Australian economy is in reasonable shape, it s the threats to global growth and the potential spillover to Asia and Australia that is driving today s decision," she said.


Treasurer Wayne Swan said the latest interest rate cut should buoy families and small businesses.


"Today s decision to cut interest rates again will provide Christmas cheer to families and small businesses that is particularly welcome around Christmas," he said.


Swan added that Australia s economic fundamentals remained strong "but as this decision shows, we are facing turbulent times in the global economy with serious risks arising from Europe".


Retailers had been calling for a rate reduction to help bolster tepid sales heading in the final few weeks of 2011 and Australian National Retailers Association chief executive Margy Osmond welcomed the move.


"Christmas retailing is immediately impacted by changes in the cash rate, people feel more confident to spend and more comfortable with managing their mortgage repayments," she said.


The Reserve Bank has a break in January and does not meet again to consider rates until February.

Technology New NASA confirms 'super Earth' that could hold life

Technology New NASA confirms 'super Earth' that could hold life:
Date December 06 , 2011
NASA has found new planet outside solar system that is eerily similar to Earth in important aspects.



In another step toward finding Earth-like planets that may hold life, NASA said Monday the Kepler space telescope has confirmed its first-ever planet in a habitable zone outside our solar system.


French astronomers earlier this year confirmed the first rocky exoplanet to meet key requirements for sustaining life. But Kepler-22b, initially glimpsed in 2009, is the first the US space agency has been able to confirm.


Confirmation means that astronomers have seen it crossing in front of its star three times. But it doesn t mean that astronomers know whether life actually exists there, simply that the conditions are right.


Such planets have the right distance from their star to support water, plus a suitable temperature and atmosphere to support life.


"We have now got good planet confirmation with Kepler-22b," said Bill Borucki, Kepler principal investigator at NASA Ames Research Center.


"We are certain that it is in the habitable zone and if it has a surface, it ought to have a nice temperature," he told reporters.


Spinning around its star some 600 light years away, Kepler-22b is 2.4 times the size of the Earth, putting it in class known as "super-Earths," and orbits its Sun-like star every 290 days.


Its near-surface temperature is presumed to be about 72 degrees Fahrenheit (22 Celsius). Scientists do not know, however, whether the planet is rocky, gaseous or liquid.


The planet s first "transit," or star crossover, was captured shortly after NASA launched its Kepler spacecraft in March 2009.


NASA also announced that Kepler has uncovered 1,094 more potential planets, twice the number it previously had been tracking, according to research being presented at a conference in California this week.


Kepler is NASA s first mission in search of Earth-like planets orbiting suns similar to ours, and cost the US space agency about $600 million.


It is equipped with the largest camera ever sent into space -- a 95-megapixel array of charge-coupled devices -- and is expected to continue sending information back to Earth until at least November 2012.


Kepler is searching for planets as small as Earth, including those orbiting stars in a warm, habitable zone where liquid water could exist on the surface of the planet.


The latest confirmed exoplanet that could support life brings to three the total number confirmed by global astronomers.


In addition to French astronomers  confirmed finding of Gliese 581d in May, Swiss astronomers reported in August that another planet, HD 85512 b, about 36 light years away seemed to be in the habitable zone of its star.


However, those two planets are "orbiting stars smaller and cooler than our Sun," NASA said in a statement, noting that Kepler-22b "is the smallest yet found to orbit in the middle of the habitable zone of a star similar to our Sun."

Entertainment News Veena sues Indian magazine over ‘morphed’ cover photo

Entertainment News Veena sues Indian magazine over ‘morphed’ cover photo:
Date December 06 , 2011
Veena Malik has filed a defamation suit against Indian magazine FHM for "morphed" cover photo.



Pakistani actress Veena Malik has filed a defamation suit against an Indian magazine for a "morphed" cover photo of her posing nude with the initials of Pakistan s intelligence agency on her arm.


Malik s spokesman, Sohail Rasheed, said on Monday that the actress was seeking 100 million rupees ($2 million) in damages from FHM India, whose editor insists the cover shoot was genuine and consensual.


"The picture has been morphed," Rasheed said in Islamabad, adding that the magazine had targeted Malik s "credibility and character". The magazine s December issue has yet to hit newsstands. But a preview of the cover on its website triggered media frenzy.


FHM India editor Kabeer Sharma told AFP at the weekend that he was mystified by Malik s allegations. "Maybe she is facing some kind of backlash, so maybe that s why she is denying it.


"We have not photoshopped or faked the cover. This is what she looks like, she has an amazing body," Sharma said. In his Twitter feed on Monday, Sharma said he would release a series of photos from the shoot proving his version of the story.

While Malik s pose on the cover preserves a scant degree of modesty, any nudity is still very much frowned upon in conservative India -- and indeed in Muslim-majority Pakistan.


What has raised more eyebrows was her arm sporting the initials ISI -- the acronym for Inter-Services Intelligence, Pakistan s spy agency. Nuclear-armed India and Pakistan have gone to war three times and the ISI has been routinely accused by New Delhi of masterminding militant attacks on Indian soil.


Sharma said the idea had been to take an ironic swipe at India s obsession with the ISI. A tag line on the cover that points to the initials, reads: "Hand in the end of the world too?"


"People, especially young people in both countries, want to move past this kind of thinking," the editor said. "It s a very powerful picture -- it took a lot of guts for her to do that. It shows a powerful, sexy woman not afraid to speak her mind."


Malik is already well known in India for appearing on "Bigg Boss", the country s version of the television reality show "Big Brother". 


She incurred the wrath of hardline Islamic clerics in Pakistan for her performance on the show, during which she indulged in several intimate scenes with Indian actor Ashmit Patel that included massaging his head and neck.

Pakistan News Youme-Ashur Majalis Alam Zuljinah underway

Pakistan News Youme-Ashur Majalis Alam Zuljinah underway:
Date December 06 , 2011


ISLAMABAD: Youm-e-Ashur, the 10th of Muharram, is being observed with solemnity and religious sanctity throughout the country and Azad Kashmir under tight security on Tuesday to pay tribute to Hazrat Imam Hussain (RA) and his companions for the supreme sacrifices rendered by them for the cause of truth, justice and righteousness. The day is observed to commemorate the supreme sacrifice rendered by Hazrat Imam Hussain (RA) and his 72 companions at Karbala to uphold the truth.


Tazyiya, Alam and Zuljinah processions have been taken out in all cities and towns across the country. The 10th Muharram main procession in Karachi has been taken out from Nishtar Park, which passing through M. A. Jinnah Road and Empress Market will end at Imambargah Hussainia Irania Kharadar. 


Earlier, Allama Shahanshah Naqvi addressed the main Majlis at Nishtar Park. Later, the huge procession came out with mourners beating their chests, reciting Nauha and whipping themselves with chains. Buturab Scouts leading the procession. The participants of the procession would be offering their Nimaz-e-Zuhrain at Tibet Centre.


On this occasion, special security arrangements have been made for the maintenance of peace. Police pickets have been established on all entry and exit points of the capital where every vehicle is being checked.


Hospitals have been asked to remain alert for any emergency situation. Security has been tightened in Rawalpindi where police personnel and Rangers are deployed on the routes of the procession. 


In all major cities of Punjab strict security arrangements have been made for the procession of 10th of Muharram. Security has also been tightened in all the Imambargahs and routes of the processions. 


In Sindh, Khyber-Pakhtunkhwa, Balochistan, Azad Jammu Kashmir, Gilgit-Baltistan all roads leading to Imambargahs have been sealed and strict security has been ensured for the processions. A large number of people will visit graveyards during Youm-e-Ashur to pray for the departed souls of their loved ones.


In his message on the occasion President Asif Ali Zardari has urged countrymen to follow in the footsteps of Hazrat Imam Hussain (RA) and adopt his values to eradicate all kinds of ignorance from the country.


"We have to forget our trivial differences and adopt the teachings of Islam and promote peace, security and brotherhood." Today, he said, the way to pay tribute to Imam Hussain (RA) is to follow his values wholeheartedly.


"For us, this day holds importance as the grandson of Prophet Muhammad (PBUH), Hazrat Imam Hussain (RA) along with his 72-companions embraced martyrdom in Karbala." He said the event of Karbala is very significant which affected every aspect of human life, unveiled aspects of superior character and provided standards to judge a person and increased knowledge and light by piercing the dark curtains of ignorance and deceptions.


The president said Youm-e-Ashur gives the lesson of sacrifice and piety for achieving higher objectives. Hazrat Imam Hussain (RA) decided to live life as a lasting symbol of truthfulness to make the followers of Prophet Muhammad (PBUH) realise that they should pursue the basic values of good character including tolerance, endurance, sacrifice, equality, justice and fairness.


Prime Minister Yusuf Raza Gilani in his message called upon the people to follow the principles espoused by Hazrat Imam Hussain (RA), for the security of Pakistan and glory of Islam. "We can become an ideal society if we adopt the principles of Hazrat Imam Hussain (RA) in our individual and collective lives." 


"Today is the day of Ashura. This day has a special significance in Islamic history. This is the day when Hazrat Imam Hussain (RA), the Holy Prophet's grandson, took on the forces of falsehood for the glory of Islam.


"On this very day, the battle was fought between the forces of truth and falsehood, which would continue to impart Muslims a lesson of sustained struggle against oppression.


On this day of Ashura, we reiterate our pledge that we would further strengthen unity, political and social harmony, mutual tolerance, and brotherhood in our ranks. The prime minister said, "let us vow that we would follow the principles espoused by Hazrat Imam Hussain (RA) for security of our motherland and glory of Islam and would not hesitate to offer any sacrifice for the sake of Islamic principles. May Allah give us courage to stand our ground against the forces of falsehood (Amen)."