Mexico pledges $5 million to build markets in Haiti
The press office of Haitian President Michel Martelly says Mexico is promising to give the Caribbean nation $5 million to build several markets.
The agreement was made in Guatemala, where the leader attended Saturday's presidential inauguration of Otto Perez Molina.
A powerful earthquake two years ago displaced 1.5 million people in Haiti and officials say 550,000 people are still without shelter.
Donors pledged $4.5 billion toward reconstruction efforts but only half of that has been spent.
The Martelly administration announced Mexico's contribution in a press release yesterday.
AP
Costa Concordia sinking could cost Carnival $95m
The sinking of the Costa Concordia could cost parent firm Carnival up to $95m (£62m; 75m euro), the firm has said in a statement.
Carnival shares fell 18% in early trading after it said it expected the loss of earnings from the capsizing to be between $85m and $95m.
The ship ran aground on Friday night off Italy's coast, killing six people.
Italian, German, French and British nationals were among the 3,200 passengers on board.
"The vessel is expected to be out of service for the remainder of our current fiscal year if not longer," it said in a statement to the London Stock Exchange.
"For the fiscal year ending November 30, the impact to 2012 earnings for loss of use is expected to be approximately $85-$95m or $0.11-$0.12 per share."
Analysts believe the capsizing could affect holiday plans for potential cruise customers.
Shore Capital analyst Greg Johnson said: "We would highlight the potential impact on booking yields in an environment where booking patterns remain subdued."
Carnival said it had insurance coverage for damage to the vessel with an excess of $30m.
It added it "anticipates other costs to the business that are not possible to determine at this time".
'Deeply saddened'
Micky Arison, chairman and chief executive of Carnival Corporation, said: "At this time, our priority is the safety of our passengers and crew.
"We are deeply saddened by this tragic event and our hearts go out to everyone affected by the grounding of the Costa Concordia and especially to the families and loved ones of those who lost their lives."
Carnival Corporation is the world's largest cruise ship operator. It owns 11 brands, including P&O, Cunard and Princess Cruises.
It is a dual-listed company, with headquarters in Southampton in the UK and Miami in the US.
Carnival plc, the British side of the business, is concerned with UK operations, but has responsibility for Costa Cruises, Carnival Cruises and Holland America Line.
European stocks shrug off downgrade
European stocks had a subdued reaction Monday to Standard & Poor's downgrade of nine euro-zone governments.
European stocks wavered between gains and losses in morning trading. Britain's FTSE 100 (UKX) slid 0.2%, the DAX (DAX) in Germany edged higher by 0.1% and France's CAC 40 (CAC40) shed 0.3%.
S&P said Friday that it had downgraded the credit ratings of nine euro-area governments, including previously AAA-rated France and Austria.
S&P also lowered its rating for Italy, Spain, Portugal and Cyprus by two notches. The move means Italian bonds are now rated BBB+, dangerously close to the junk bond level that could make it even harder for the government to raise money.
France and Austria both had their top-tier credit rating lowered by one notch to AA+, the credit ratings agency said. But Germany, Finland, the Netherlands and Luxembourg all maintained their AAA ratings.
S&P cut the ratings of Malta, Slovakia and Slovenia by one notch.
The agency said the downgrades reflect a combination of economic and financial issues, as well as "an open and prolonged dispute among European policymakers over the proper approach to address challenges."
Europe can't catch a break
Specifically, the agency pointed to weakening economies, tightening credit conditions across the eurozone, rising interest rates for a growing number of nations, and the "deleveraging" of both governments and households.
As the downgrade chatter circulated, stocks sold off in Europe and the United States on Friday. The S&P 500 (SPX) lost 0.5%, the Dow industrials (INDU) dropped 0.4%, and Nasdaq Composite (COMP) fell 0.5%.
U.S. markets are closed Monday for Martin Luther King, Jr. Day.
Last August, the United States had its AAA rating cut one notch by S&P amid a political impasse over the nation's debt ceiling.
The U.S. downgrade initially sparked a sell-off in the stock market. But the reaction in the bond market was muted, with yields on U.S. government bonds holding steady at low levels.
Asian markets ended lower Monday. The Shanghai Composite (SHCOMP) dropped 1.7%, the Hang Seng (HSI) in Hong Kong shed 1% and Japan's Nikkei (N225) lost 1.4%
Digicel lashes out at LIME
THE COUNTRY'S two cellular service providers have been engaging in a verbal tussle following revelations last week that former Prime Minister Andrew Holness reversed a precondition of the Digicel-Claro merger.
"We believe that Mr Holness' removal of this critical condition, without the passing of the emergency legislation to safeguard the industry, has grave implications for the future of Jamaica's telecommunications industry," LIME said in a statement on Saturday.
Twenty-four hours later, Digicel went on the offensive saying LIME must stop its "outrageous public bashing of government officials and focus instead on fixing its own lacklustre business performance".
Digicel CEO Mark Linehan said, "LIME should not be looking for the Government to fix its problems but would be better served spending its time focusing on fixing its internal problems rather than gnashing its teeth and complaining to all and sundry about the perceived injustices meted out to it."
Free ride
Late last year, Holness changed the provision requiring Digicel to operate two separate networks as part of its takeover of Claro.
LIME said the decision grants Digicel "a free ride considering that virtually the same token and wholly inadequate rate change already condemned as 'unimpressive' was subsequently accepted by Mr Holness and, in our opinion, this is tantamount to a betrayal of the Jamaican consumers who are desperately seeking relief in this harsh economic climate".
LIME has called for the new Government to immediately implement the emergency legislation and overhaul the regulatory framework of the telecommunications industry.
"We are asking the Government to take this action - with extreme alacrity - in the interest of Jamaican consumers as well as all current and any future telecoms service providers," the company said.
Consumers benefit
In the meantime, Digicel yesterday said the deal was in the interest of consumers. It also said Holness followed the letter of the law in his approval of the deal and lifting of prior conditions.
"Digicel took great pains to ensure that its acquisition of Claro Jamaica would benefit consumers across Jamaica by proactively and voluntarily offering to reduce its cross-network rates for both prepaid and post-paid customers by J$3.50 per minute peak rate reduction and a J$2 per minute off peak rate reduction on calls to the other network," Digicel said.
"This represents an up to 20 per cent reduction on the previous rates. Digicel further voluntarily committed to investing a further US$30 million in the roll-out of islandwide 4G Mobile - on top of its existing investment of US$1 billion in Jamaica to date - to relinquishing spectrum, and to bringing Internet service to schools and post offices in remote areas of Jamaica outside the remit of the Universal Access Fund," it added.
Employers fear work permits change could bring job losses
A new work permits policy floated by the Economy Minister makes little economic sense and could lead to job losses say employers.
Patrice Minors, Economy, Trade and Industry Minister, announced on Wednesday that the Government is looking at extending the categories of employment that are closed to work permits.
She said a work permit moratorium imposed last February for certain jobs had resulted in “hundreds” of jobs opening up for Bermudians.
But the Minister said that she would be consulting industry on further restrictions. She is looking at closing off work permits to jobs such as masons, carpenters, electricians and plumbers, while adding jobs such as waiters, servers, landscapers, secretaries and caregivers to a “restricted” list “where employers will have to first demonstrate that they have hired a certain percentage of Bermudians including trainees before a work permit is considered.”
“Limiting work permits means less job creation overall,” said Peter Everson who heads up the Economic Committee of the Chamber of Commerce.
He noted that Bermuda’s overall employment income has dropped 4.6 percent in the third quarter, the largest drop during this time period since prior to 2007, and said part of the reason for the decrease is that the number of people living in Bermuda has decreased.
“In the good times from 1990 to 2006 the Chamber’s analysis showed that for every five work permits that were issued, one job was created,” Mr Everson said.
“As work permits are being cancelled, it will not only impact the number of people here spending money on the Island but also impact the number of jobs created.”
Mr Everson added that it would be better to increase the total number of jobs rather than “reallocate” them.
“Every time we lose a work permit holder, there is one less person paying rent, and that’s going to be one of the weak points of the economy it will become increasingly hard for Bermudians to pay their mortgage payment.”
Replacing experienced people with people that need to be trained and get up to speed, which may take several months to a year, is “less efficient and less effective, making the economy less competitive rather than more competitive.”
That’s a point that resonates with the Bermuda Employers Council.
“We are particularly interested to discuss our concerns that a new policy may evolve requiring the hiring of ‘any Bermudian that is able and willing to work, whether trained or untrained, before work permits are issued….(and requiring) … a certain percentage of Bermudians including trainees before a work permit is issued,’” said Keith Jensen, BEC president.
Mr Jensen says that the policy would impose an unsustainable cost burden to small businesses, causing some to close or reduce services and staff.
“And, if unacceptable standards of service take hold, therefore, negatively affecting clients and revenue.”
BEC is urging Government to make labour market policy “within a framework of the timely release of GDP statistics and forecasts.”
“Plans to provide timely statistics from the Ministry together with a frequent review of the categories to be given more scrutiny through consultation can only improve the effectiveness of policies and improve the working relationships of the tripartite social partners labour, employers and Government,” Mr Jensen continued.
He said, given the economy, work permit restrictions were expected and that employers were supportive of Government’s retraining efforts.
“From a practical point of view, it is less costly to hire a Bermudian than to bring in a person from abroad.”
Restaurateur Phillip Barnett highlighted a different concern. “We certainly believe we are doing everything in our power to hire Bermudians into the hospitality industry.”
But he said that the hospitality industry is “no different” from any other. “The fact of the matter is we want people to want to work in our industry and do a good job,” Mr Barnett said.
“Many Bermudians consider it beneath them. And that’s demeaning to any other Bermudian in the industry. It’s also demeaning to try to force people to come into the industry because they cannot find work. We’re not interested in having anybody working with us who doesn’t have the same pride and understand the nobility of the position.”
States look to hike tax on millionaires
As the "tax the rich" debate rages in Washington D.C., some states are turning to their wealthiest residents to bring in much-needed revenue.
The governors of the two largest Democratic states want rich folks to help close budget gaps. And Democratic lawmakers elsewhere are preparing to do battle with Republican leaders to blunt budget cuts by instituting a millionaire tax.
This marks a shift from last year, when state leaders largely shied away from raising taxes in general. Several cash-strapped states, including Maryland, New Jersey and Oregon, let their millionaire taxes lapse.
But spending cuts alone aren't getting the job done.
"As the effects of the recession linger, states are realizing they can't [balance their budgets] by cutting education, transportation and other investments that create jobs," said Jon Shure, director of state fiscal studies for the left-leaning Center on Budget and Policy Priorities.
Election 2012: How rich are these guys?
After refusing to renew New York's millionaire tax, Governor Andrew Cuomo ended up hiking the levy on the rich anyway. The increased revenue will close about half of the state's $3.5 billion budget gap for the coming fiscal year.
The Empire State had instituted a surcharge in 2009 that raised the top rate to 8.97% for earnings above $500,000. It was scheduled to fall to 6.85% this year.
Instead, Cuomo created new tax brackets that lower the tax rates for those earning less than $300,000. But income above $2 million will be taxed at a new top bracket of 8.82%, nearly two percentage points higher than had been expected. It expires at the end of 2014.
"Whether a person made $20,000 or $20 million, they paid the same rate. It was just wrong -- because a flat tax is not a fair tax," said Cuomo in his State of the State speech earlier this month. "Our principle is simple: the more you make, the higher rate you pay. Today, the middle class is paying the lowest rate in 58 years."
On the other side of the nation, California Governor Jerry Brown built his budget assuming that voters approve a $6.9 billion tax package on the November ballot. He's planning to sell his plan to Golden State residents at his State of the State address on Wednesday.
If the ballot measure passes, three new tax brackets would be created. Single taxpayers would fork over an additional 1 percentage point on earnings over $250,000, 1.5 percentage points on income over $300,000 and 2 percentage points on earnings over $500,000. The higher rates would be in effect for the 2013 through 2016 tax years.
In addition, Brown wants to raise the sales tax by half a percentage point. The added revenues would go to fund schools and public safety, which would otherwise face $5.4 billion in cuts, he said.
In New Jersey, voters favor instituting a millionaire tax by a 2 to 1 margin, according to a Quinnipiac University Poll conducted late last year, marking an all-time high.
Democratic lawmakers, who control the state legislature, are hoping to convince Governor Chris Christie, a Republican, to reinstate a surcharge on the wealthiest residents. He had been staunchly opposed to a similar effort last year, instead instituting deep cuts in spending.
"Despite all the talk about shared sacrifice, the wealthiest residents in our state are the ones who are being asked to sacrifice the least," said state Senator Barbara Buono, who until recently served as majority leader.
But conservatives argue that while raising taxes on the wealthy might bring in more money in the short-term, it could hurt any state's economy in the long run.
"We're skeptical of the idea that high rates do anything but scare people out of the state and limit economic growth," said Joe Henchman, vice president for state projects at The Tax Foundation.
Strong earthquake hits off Antarctica's coast
A strong 6.6-magnitude earthquake struck Sunday off the coast of Antarctica, prompting a warning that there was a "small possibility" it could trigger a tsunami.
The tremor was centered in waters south of South America's southern tip, about 334 miles (539 kilometers) west of Coronation Island and 388 miles northeast of Palmer Station in Antarctica, the U.S. Geological Survey reported.
It hit at 9:40 a.m. local time (8:40 a.m. ET) on Sunday, according to the federal agency, and had an estimated depth of 6.2 miles.
Afterward, the Pacific Tsunami Warning Center released a statement saying that there appears to be no threat of "destructive widespread tsunami" because of the quake.
But the agency did state "there is a small possibility of a local or regional tsunami that could affect coasts located usually no more than a few hundred kilometers from the earthquake epicenter.
"Authorities in the region near the epicenter should be made aware of this possibility," the warning center added.
Cruise ship rescue operations suspended for now
The search for survivors and victims aboard the partially sunken cruise ship Costa Concordia was temporarily suspended Monday because the vessel began to move, said the mayor of the nearby island of Giglio, Sergio Ortelli.
The cruise ship hit rocks and rolled onto its side over the weekend, leaving at least six people dead.
Its owner is due to speak to the media Monday morning, and may clear up questions about what caused the disaster.
Divers had been searching the skyscraper-sized ship, working underwater in pitch blackness, in hopes of finding about 16 people still missing after the wreck. There were roughly 4,200 people on the Costa Concordia when it ran aground Friday evening off Giglio.
The disaster will cost its owner $85 million to $95 million in the fiscal year to November, parent company Carnival Corporation said Monday.
The captain of the ill-fated cruise ship may have made "significant" errors that led to wreck, the cruise line said late Sunday.
"The route of the vessel appears to have been too close to the shore, and the captain's judgment in handling the emergency appears to have not followed standard Costa procedures," Costa Cruises said in a statement.
The ship's captain, Francesco Schettino, was detained Saturday for alleged manslaughter, causing a shipwreck and abandoning ship while passengers were still on board, chief prosecutor Francesco Verusio told Italy's ANSA state news agency.
Schettino joined Costa Cruises as a safety officer in 2002 before being appointed captain four years later, the company said.
First officer Ciro Ambrosio was being detained for questioning on similar charges, prosecutor Verusio said.
Even with its admission that mistakes were made, the Genoa-based cruise company -- whose parent firm, Carnival Corp., did not respond Sunday to requests from CNN for more information -- defended the ship's crew in the face of criticism.
"It is becoming clear that the crew of the Costa Concordia acted bravely and swiftly to help evacuate more than 4,000 individuals during a very challenging situation," the company said, adding all crew members are trained and the passengers earlier took part in an evacuation drill.
Survivors have described the scene -- after the ship hit rocks near Giglio, off the coast of Tuscany, and turned over on its side -- as "chaos."
"It was just battling, mad scrambles," American student Brandon Warrick said of the fight to board lifeboats, describing it as "a giant every man for himself."
His sister Amanda said she feared she was going to die as they waited for up to two hours for rescue.
"Waiting was definitely the worst. Because we didn't know who was going to be coming, how much longer we would have to wait," she said.
Authorities have said at least 20 were injured due to the incident, in addition to those killed.
That death toll includes two elderly people whose bodies were found, with their life jackets on, near one of the ship's restaurants, Italian Coast Guard spokesman Capt. Cosimo Nicastro told reporters Sunday.
Hours earlier, crews rescued a ship employee trapped in a ship restaurant.
The man -- an Italian purser whose name was not released -- was suffering from hypothermia when rescue crews found him, said Commander Filippo Marini, a spokesman for the Port Authority of Porto Santo Stefano.
Earlier Sunday, before the two bodies were found, Giglio Mayor Sergio Ortelli said at least six ship workers and 11 passengers still had not been located.
Authorities are reviewing passenger lists to confirm the exact number of missing people, said Giuseppe Orsina, a spokesman with the local civil protection agency. Many of those rescued in the early hours were taken to small churches and other buildings around the island for shelter. Some were still wearing the pajamas and slippers they had on as the ship went down.
"These people could be still on the island of Giglio, in private houses or in hospitals," Orsina said.
The U.S. Embassy in Italy, on its Twitter feed, said two of the 120 Americans who were aboard the ship still had not been accounted for. It was not clear Sunday as to the nationalities of other missing people, with CNN affiliates having reported Italians, Peruvians, Brazilians, French and Britons were all represented on the ship.
All 109 Russians on board have been accounted for, the Russian Foreign Ministry announced late Sunday.
There were fears the death toll could rise as rescuers searched the ship, which was nearly 50% submerged and had a gash in its hull, authorities said.
Questions and criticism continue about what caused the shipwreck and the adequacy of the response.
Speaking on Italian television, the ship's captain insisted the rocks that the Concordia hit were not marked on his map.
"On the nautical chart, it was marked just as water," Schettino said, adding that the ship was about 300 meters from shore.
But Nicastro, the Coast Guard spokesman, insisted that the waters where the ship ran aground were well-mapped. Local fishermen say the island coast of Giglio is known for its rocky sea floor.
"Every danger in this area is on the nautical chart," Nicastro said. "This is a place were a lot of people come for diving and sailing. ... All the dangers are known."
He said the Coast Guard was investigating why the ship took the course it did.
"We know where the ship was," he said. "We know it was too close to the island. ... We don't know why."
Italian prosecutors seized the ship's data recorders Saturday, and expect to analyze them within days. Costa Cruses said Sunday that it can only access that information with authorities' permission.
Built in 2006, the Concordia had been on a Mediterranean cruise from Rome with stops in Savona, Marseille, Barcelona, Palma de Mallorca, Cagliari and Palermo.
The ship was carrying about 3,200 passengers and 1,000 crew members when it ran aground and began taking on water Friday night.
The crew kept going because they believed the vessel could continue sailing normally, said Nicastro, the Coast Guard spokesman. Realizing there was a significant safety problem, the commander steered the Costa Concordia closer toward the port of Giglio, he said.
Authorities are looking at why the ship didn't send a mayday during the accident.
Besides the two elderly people, the dead include two French tourists and a crew member from Peru, port authorities in Livorno said. One of the victims was a 65-year-old woman who died of a heart attack, authorities said.
Pakistan PM Gilani faces Supreme Court contempt order
Pakistan's Supreme Court has issued a contempt order against Prime Minister Yousuf Raza Gilani, raising the prospect of his prosecution.
The court has been considering what to do about the government's refusal to reopen corruption cases against the president and other political figures.
Mr Gilani has been ordered to appear in person at the court on 19 January.
It comes on a day of several crucial challenges for the government amid ongoing tensions with the army.
A key vote of confidence in Pakistan's political leadership is scheduled to be held later in parliament.
And another court hearing into a controversial anonymous memo which asked for US help to avert an army coup in Pakistan, in the wake of the killing of Osama Bin Laden in May 2011, has also resumed.
Correspondents say that Mr Gilani can continue as prime minister while court proceedings take place. If contempt proceedings go ahead and he is found guilty, he could be automatically disqualified from holding public office.
At the heart of the court's complaint is the government's refusal to act on a court order quashing a controversial amnesty, which had protected the country's senior politicians from corruption prosecutions.
One of the cases at stake is against Pakistan's President Asif Ali Zardari - the government insists he has immunity from prosecution as president.
But the deadline for the government to reopen the corruption cases expired on Monday and government representatives were summoned to court to explain what they planned to do.
"The Supreme Court has issued a contempt of court notice to the prime minister for not complying with its orders," AFP news agency reported judge Nasir-ul-Mulk as telling the court.
The order comes at a time of intense political uncertainty, with the government at loggerheads with country's powerful military as well as the judiciary.
The government's stand-off with the military escalated sharply last week when the army publicly rebuked Mr Gilani warning of "potentially grievous consequences" after he criticised army leaders in a media interview and sacked his defence secretary.
Pakistan has suffered three military coups since independence in 1947 but analysts believe the army has little appetite for a coup in this instance.
Republican primaries: Jon Huntsman 'to end bid'
Jon Huntsman is to end his campaign to win the Republican presidential nomination, US press reports say.
He finished third in last week's New Hampshire primary and had been struggling ahead of this week's South Carolina primary.
Mr Huntsman had hoped for an upset in New Hampshire but polled only 16.9%.
He will announce his withdrawal later on Monday and endorse front-runner Mitt Romney, said campaign officials quoted by AP.
Primaries and caucuses will be held in every US state over the next few months to vote on a Republican candidate before the eventual winner is crowned at the party convention in August.
Low ratings
Mr Huntsman, 51, is a former governor of Utah and served as President Barack Obama's first ambassador to China.
A fluent Chinese speaker, in the early 1990s he became the youngest head of a US diplomatic mission for a century when he was appointed ambassador in Singapore.
But his campaign for the Republican nomination failed to gain momentum, hardly registering in national opinions polls with only 1% or 2%.
His withdrawal comes after he gained the endorsement of South Carolina's largest newspaper The State, which said that he and Mr Romney were the "two sensible, experienced grown-ups in the race'', but that Mr Huntsman was "more principled" and offered "a significantly more important message''.
TV debates
Mr Romney won nearly 40% of the New Hampshire vote last Tuesday, but faces a stern test in South Carolina this week.
The staunchly Republican state has a history of backing the eventual nominee in its primary.
Mr Huntsman's exit will leave Ron Paul, Rick Santorum and Newt Gingrich as the three main candidates chasing Mr Romney's lead.
After his handsome win in New Hampshire, Mr Romney is more vulnerable in socially moderate South Carolina, and his Mormon faith may be a disadvantage among the many evangelical and other conservative Christians in the state.
Televised debates will be held on Monday and Thursday, before the primary vote on Saturday.