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)."

Business News Oil falls to near $100 after S&P warning

Oil falls to near $100 after S&P warning:
Date December 06 , 2011

Oil prices fell to near $100 a barrel in Asia amid a US credit rating agency warning. 

Oil prices fell to near $100 a barrel Tuesday in Asia after a US credit rating agency warned it may cut the debt ratings of 15 eurozone countries.


Benchmark crude for January delivery was down 50 cents to $100.49 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract rose 3 cents to settle at $100.99 on Monday.


In London, Brent crude was down 60 cents at $109.21 on the ICE futures exchange. Standard and Poor s said late Monday it was reviewing "with negative implications" its long-term sovereign credit ratings of European countries including Germany, France and Austria.


"Systemic stresses in the eurozone have risen in recent weeks to the extent that they now put downward pressure on the credit standing of the eurozone as a whole," S&P said.


Crude had risen earlier Monday amid investor optimism that a proposal by French and German leaders of tough new measures that would keep eurozone members from overspending may lower debt levels and restore confidence.


Crude has jumped from $75 a barrel since October on signs the U.S. economy is improving. However, analysts expect a recession in Europe will undermine global crude demand.


"The evolving dichotomy between an unexpectedly strong U.S. economy and the increasing likelihood of a eurozone recession" will likely support U.S. benchmark crude prices and weigh on Brent.


In other Nymex trading, natural gas fell 0.7 cents at $3.45 per 1,000 cubic feet. Heating oil slid 0.7 cents to $2.99 a gallon and gasoline futures dropped 0.7 cents to $2.60 a gallon.

Technology news Facebook to open office in New York

Technology news Facebook to open office in New York:
Date December 05 , 2011
Facebook announced that it will open an engineering office next year in New York.+



New York City is already the US capital of advertising, fashion, finance and media. Now it wants to be its high-tech center too. The Big Apple s ambition to rival Silicon Valley with its own Silicon Alley received a big boost when Facebook announced Friday that it will open an engineering office next year in New York, its first outside the West Coast.

The plan was unveiled at Facebook s Madison Avenue offices during an event attended by Facebook chief operating officer Sheryl Sandberg, New York Mayor Michael Bloomberg, New York Senator Charles Schumer and other top officials.
"Facebook is capitalizing on what more and more tech companies are realizing: that New York City is the best place in the world to recruit and retain a talented workforce," Bloomberg said.

"We re well on our way to achieving our goal, and that is to become the world s number one hub for information technology and social media." Sandberg said establishing its first engineering presence outside the West Coast was a "big step" for Facebook, "one we would take only if we found the right combination of talent and community support."

New York may not yet be able to lay claim to the high-tech crown held by Silicon Valley -- home to Apple, Google, Hewlett-Packard, Intel and Oracle, to name just a few -- but it does have a flourishing tech scene of its own. Major Internet companies such as Barry Diller s IAC have their headquarters here and the city has given birth to a number of successful Internet startups including Etsy, Foursquare, Gilt and Tumblr.

Online music sensation Spotify selected New York as the base for its US operations after launching in the United States in July. "It s quite amazing how far the tech sector in New York has grown, even in the last three years," said Jonathan Bowles, director of the Center for an Urban Future, a think-tank that focuses on the city s economic and social development.

"A lot of things have changed. California-based venture companies have set up offices in New York, Google, LinkedIn, Facebook and others have opened offices," Bowles said. "Entrepreneurial bootcamps like Tech Stars have come here.
"Five years ago, most of this wasn t imaginable."

Mike Schroepfer, Facebook s vice president of engineering, said New York will become an increasingly attractive destination as the high-tech scene here grows. "You may be working for Facebook but you want to go meet and exchange ideas, best practices with other people who are doing similar jobs," he said.

"I think that community has been part of the fuel that has made Silicon Valley a success, and it s clear that New York has that as well. That s why we re here."

As part of his plan to expand New York s tech industry, Bloomberg has offered unused land belonging to the city to a university that pledges to build an engineering and applied sciences campus. California s Stanford University, breeding ground for many of the Internet stars of Silicon Valley, is among the seven candidate schools.

Lou Kerner, a social media analyst at LiquidNet, said New York may be emerging as the number two tech center in the United States but it is still Silicon Valley "whose beacon shines bright for every tech entrepreneur in the world."

"They have the best engineers, and most importantly, the best culture to foster innovation," Kerner said by email. "Innovation is core to the culture of the Valley, while it remains a (growing) side show in New York.

"That s why Zuckerberg moved to the Valley when he left Boston, and not New York," he said of the Facebook co-founder.

Business News Indian central bank moves to arrest rupee slide

Business News Indian central bank moves to arrest rupee slide:
Date Decemebr 05 , 2011
The rupee has been stumbling to record lows as foreign investors abandon Indian currency.



India s central bank said on Saturday it would act to prevent a "downward spiral of the rupee" which has been hit by fears about the global economy. The rupee has been stumbling to record lows against the dollar as foreign investors abandon Indian and other emerging market currencies in search of safe havens.

It plunged to a record low of 52.73 against the dollar last month on fears about the eurozone debt crisis and the world economy as well as falling Indian shares which are faring the worst among their regional peers.

"In volatile market conditions that we see today, RBI (Reserve Bank of India) intervention to keep markets orderly and prevent a downward spiral of rupee is justified," said central bank deputy governor Subir Gokarn.

"If we do see the short-term risk of a downward rupee spiral escalating we will not hesitate to use all available instruments," Gokarn said in a video message to a meeting of the Confederation of Indian Industry.

He did not mention a desirable target level for the rupee which has fallen around 14 percent against the dollar since the start of 2011 and is the worst performing of Asia s 10 most-traded currencies.

The rupee s decline has fuelled India s inflationary woes, making imported goods such as foreign crude oil, on which the country relies, more costly.

India s annual inflation is running at near double-digits and is the highest among major global economies.
Unlike fellow emerging market giant China, India allows its currency to float freely.

Gokarn s comments contrasted with remarks he made earlier when he expressed hesitation about central bank intervention to support the rupee.

Gokarn said last month it would be a "risky strategy" if the bank were to "try and resist or try and do something for which we do not have a capacity".

Diminishing India s appeal to foreign investors and piling pressure on the rupee have been a slew of government corruption scandals, accusations of "policy paralysis" and a deteriorating fiscal situation.

Business News Singh’s move to open $ 450 b market stalled

Business News Singh’s move to open $ 450 b market stalled:
Date December 05 , 2011
The move to allow Wal-Mart into India's $450 billion retail market meets with fierce opposition.



India has put a plan to open up its retail industry to foreign supermarkets on hold, a senior government source said on Sunday, an embarrassing turnaround for a beleaguered government fighting to retain the support of key allies.The move to allow global giants such as Wal-Mart into India s $450 billion retail market, the first major economic reform since Prime Minister Manmohan Singh s graft-riddled term began in 2009, has been met with fierce opposition from some who say it will destroy the livelihood of millions of small traders.

"This is a pause," the government source with knowledge of the matter told Reuters. "Do not see it as a rollback, as if the government is giving up on it. This is just a small pause."The idea appears to give the under-fire ruling party time to gain the support of its key coalition allies.

"Parliament needs to get going again. There is so much that the government needs to do," the source added, a day after the government s biggest ally said the policy was being sidelined due to disagreement within the ruling coalition. Any postponement or watering down of the policy would be a huge embarrassment for Singh s government, which has failed to pass any big-ticket economic reforms as it struggles with allegations of widespread graft.

Singh has lost much of his credibility as the reformer who turned India from near-bankruptcy 20 years ago to an economic wonder. Foreign investors are seen spooked by a growing sense of policy paralysis that Asia s third-largest economy can ill-afford as once-booming GDP growth begins to temper. The government was likely to release an official statement regarding the issue on Monday, said the source, who was not permitted to speak to the media.

Allowing foreign direct investment into a retail industry dominated by small shops was trumpeted by Congress as a policy that would help ease stubbornly high inflation, improve supply-chain infrastructure, and create millions of jobs.

The main opposition Bharatiya Janata Party has led protests against the reform in parliament that have paralysed both chambers every day since the 21-day winter session opened last week. Mamata Banerjee, the firebrand leader of the Congress party s biggest ally and a opponent of the policy, said on Saturday the government had told her the plans would be put on hold until a consensus had been reached.

Her West Bengal-based Trinamool Congress brings 19 votes to Singh s coalition, which relies on allies to hold a wafer-thin majority in New Delhi. Ruling parties in India s colourful democracy are often forced to rely on fickle allies, who can use the importance of their votes in the national parliament to negotiate concessions or support for the regions or states they represent.

"This is just Indian politics," the source said.

"Parliament is being stalled by an issue that only a few months ago everyone was in agreement with."

The controversy comes as the ruling party fights to fend off criticism that it has failed to tackle high prices and maintain high economic growth -- and as key state elections loom next year and a general election beckons in 2014.

Possible dilution of the policy could include lowering the 51 percent foreign investment permitted under the current rules, increasing the percentage of products to be sourced locally, or the amount firms must spend on developing infrastructure.
"We have acted out of conviction and carefully thought it through," Trade Minister Anand Sharma told CNN-IBN TV channel on Sunday in an interview recorded before Banerjee s announcement.

"We will talk with our allies," he added, stressing that the policy would not be abandoned. Singh this week rejected calls to roll back the policy amid chaotic scenes in parliament as opposition lawmakers chanted slogans and held up placards denouncing the measure as a sell-out.

The reform, as it was first presented, would allow global chains like Wal-Mart, Tesco Plc and Carrefour to own up to 51 percent of retail ventures and allow foreign firms to fully own single-brand retail operations.