US senator urges Jamaica gov't to understand the world
Jobs, education and an openness to foreign investors are the main factors for solving Jamaica's social, economic and crime problems, believes Democratic United States State Senator Malcolm A. Smith.
Smith, who travelled to Jamaica last Thursday for the swearing in of Prime Minister Portia Simpson Miller, said it was essential that the new government provide incentives that would allow for small and large companies to do business with the country.
"The Jamaican government needs to understand that the world is no longer a big world, it is very small. Just like we are taking foreign investment in New York, they should do that here," said the state senator in the 14th district in Queens, New York.
He also advised that the government look at new industries while focusing on key ones, such as agriculture, the sciences, social networking and technology.
Smith told The Gleaner that, "As a ranking member on banking, I think it is going to be important to introduce the Jamaican minister of finance (Dr Peter Phillips) to the banking community in New York, perhaps have them come here and foster a relationship. Because at this point we know that the credit that banks are releasing today are very difficult and challenging but, given the financial capital of the world, and the number of people from Jamaica that live there, I think, from a banking perspective, that we can develop a good relationship to help with the economy."
Jamaican community excited
Smith, who is an integral part of the large Jamaican community in his district, said they were excited about the possibilities of working with the new Simpson Miller-led administration and fostering a good relationship.
Describing the existing relationship between Jamaica and the US as interesting, he said: "It is one where we are still struggling in New York. We just got rid of a big deficit. We think Jamaica is also struggling where it comes to jobs and the economy and perhaps we can foster some of the practices and best practices that we are doing to assist the government in moving forward with the economy here. We can learn from each other."
The senator, who has Jamaican roots through his father, who was raised in Mandeville, Manchester, revealed that there would be celebrations across New York for Jamaica's 50th year of Independence.
Smith was first elected to the New York State Senate in 2000.
Jamaica Gleaner
Trinidad signs multiple agreements with India
Prime Minister Kamla Persad-Bissessar and other Trinidad and Tobago government ministers on Monday attended bilateral meetings with the Prime Minister of India Dr Manmohan Singh in New Delhi, after which several key memoranda of understanding were signed.
Five agreements were signed at the end of the delegation-level talks between both prime ministers. These focus on developments in the areas of air transport, culture, education, traditional medicines, agriculture and technical cooperation.
Singh highlighted the need for both countries to identify innovative ways of enhancing their economic ties. He noted that the joint commission meeting held at the end of November 2011 identified a number of areas for expanded trade and investment, most notably the energy sector.
He explained that India needs an assured and reliable energy supply, and that Trinidad and Tobago is well placed to meet India’s energy needs: “An energy delegation from Trinidad and Tobago would therefore be welcome.”
Minister of New and Renewable Energy, Dr Farook Abdullah stated that his ministry stands ready to share its expertise and offer training in solar and wind energy. It is expected that a demonstration unit will soon be set up in Trinidad and Tobago.
Air links are to be established between Trinidad and Tobago and India following the signing of a bilateral air services agreement (BASA). This BASA allows designated air carriers to operate flights connecting destinations in each country.
Singh also expressed his gratitude for the current visa waiver offered by the Trinidad and Tobago Government to Indian nationals and agreed that Trinidad and Tobago would act as a gateway for India to the wider Latin American market, thanks to its trade agreements with several Latin American countries.
Persad-Bissessar raised the issue of visa-waiver reciprocity to which the Minister of External Affairs, Shri S.M. Krishna responded that this would be considered at an upcoming joint commission meeting.
Education was the focus of another MoU. Singh, at the joint media briefing with Persad-Bissessar, stated that strong cultural and education links between the two countries provide the foundation for their relationship.
“The technical cooperation agreement in the field of education and the cultural exchange programme signed today will facilitate greater academic and cultural exchanges” stated Singh.
The University of the West Indies was one of the signatories to an MoU.
Bilateral technical cooperation through exchange of experts will also be improved, with the government of India agreeing to enhance the annual ITEC scholarship slots for Trinidad and Tobago from the current 30 to 50. Singh noted that the Indian IT industry is eager to expand cooperation through the Indian Technical Cooperation Fund and that a joint commission on ICT could provide a framework for cooperation in this sector.
Singh stated that over the next six to eight weeks India will send a delegation of IT experts, companies and education experts to see how to advance bilateral cooperation and increase 3G capacity in Trinidad and Tobago.
A MoU for co-operation in traditional medicines between India’s Ministry of Health and Family Welfare and the Ministry of Health of Trinidad and Tobago was also signed. The signing of the MoU provides a legal framework for the cooperation between the two countries for the promotion of Indian traditional medicine in Trinidad and Tobago. The main objective of the MoU is to strengthen, promote and develop cooperation in the field of traditional systems of medicine between the two countries on the basis of equality and mutual benefit.
Persad-Bissessar welcomed all offers of technical support offered by Singh, particularly initiatives in the coconut industry to deal with the red palm mite disease and ITEC exchanges.
Persad-Bissessar emphasised the need for renewed enthusiasm in the field of agriculture. The prime minister also expressed her gratitude to the Indian government for land at Pushp Vihar in New Delhi, which was donated to the Chancellery and the Trinidad and Tobago High Commission.
A joint statement at the end of the delegation level talks between Singh and Persad-Bissessar stated the two leaders also discussed global issues, including terrorism, climate change and the reform of the United Nations.
At the end of the bilateral meetings a banquet was hosted by Singh in honour of the prime minister and her delegation from Trinidad and Tobago, along with other specially invited guests.
Haitian migrants flock Brazil
The influx of Haitian economic migrants into Brazil does not amount to a humanitarian crisis, a spokesman for the UN refugee agency said yesterday while praising the country's efforts to welcome them.
"It is a difficult situation for the cities where the Haitians are arriving, but it is not a humanitarian crisis," said the UN High Commissioner for Refugees (UNHCR) official who spoke on condition of anonymity.
The influx, which began in February 2010 shortly after Haiti was devastated by an earthquake, has been accelerating in recent days.
Most of the Haitians are assembling in the towns of Tabatinga and Brasileia, on Brazil's northern border with Peru.
In Brasileia alone, there are 1,100 Haitians, many with health problems or reporting to have been abused by traffickers, according to human rights officials.
"The Haitians arrived claiming to be refugees although virtually none of them qualify for this status. But Brazil generously gave them a humanitarian visa so that they can stay in the country and look for work, which is what they are really after," said the UNHCR spokesman.
For that reason, the UNHCR is not directly involved but has offered to assist Brazilian authorities if needed, the source added.
The Haitians in Brasileia, which has a population of 20,000, are being sheltered in holding centres where authorities are providing food and medical care.
Many of the migrants say they had to pay between US$1,500 and US$5,000 to traffickers in exchange for air passage from Port-au-Prince to Ecuador and Colombia from where they trek to Brazil via Peru and Bolivia.
Brazil, Latin America's dominant economy, has become the choice destination for Haitian and Bolivian migrants lured by ongoing massive infrastructure projects linked to the country's hosting of the 2014 football World Cup and the 2016 Summer Olympics.
Brazil also leads the UN peacekeeping contingent in Haiti.
Landslide kills eight in Brazil's Rio de Janeiro state
A least eight people have been killed in a landslide in Brazil.
Emergency workers said 14 people could still be buried in the mud in Jamapara, in Rio de Janeiro state.
Officials said rescuers had only been able to reach the site by helicopter after the main road to the town was cut off by torrential rain.
The landslide happened in the same area where thousands of people were evacuated last week when heavy rains caused a dam to burst.
Local residents said they were woken by a sound which resembled that of an explosion.
Nine houses were buried in the mud.
Emergency funds
One family is believed to have been buried in their car. Their neighbours said they had slept in the car for fear their house could be swept away.
On Monday, the government launched an emergency plan to deal with the torrential rains which have affected the southeastern states of Rio de Janeiro, Minas Gerais and Espirito Santo.
Brazilian President Dilma Rousseff approved a fund of $240m (£155m) to help communities affected by the rains.
Heavy rains and landslides are not uncommon in the mountainous area of Rio de Janeiro state.
A year ago, more than 1,300 people died or went missing during a particularly wet season.
China export growth slows on weak demand from Europe
Growth in China's exports slowed in December because of sluggish demand from the US and Europe.
Exports rose by 13.4% from a year earlier, the customs agency said, down from 13.8% in November.
Import growth also slowed, rising 11.8% compared with the previous year, much lower than the 22.1% growth in November.
The latest figures could fuel worries that the world's second largest economy is losing steam.
China's Vice Commerce Minister Zhong Shan said on Monday that the country's foreign trade environment could be bleak in 2012, as demand declines.
Analysts echoed that sentiment, adding that the figures could cast a shadow on the economy.
"Our forecast for gross domestic product is already the lowest in the market. This trade data basically confirms our view that the first quarter is going to be very tough," said Zhang Zhiwei, chief China economist at Nomura in Hong Kong.
China's rapid economic expansion slowed to an annualised 9.1% in the three months to the end of September.
That is down from 9.6% in the previous three months and slower than the double-digit expansion of 2010.
Trade war
China's trade surplus widened to $16.5bn (£10.7bn) in December compared with the $14.5bn in the previous month.
However, the trade surplus for 2011 as a whole narrowed to $155.1bn, compared with $183bn in 2010, said customs officials.
This means the trade surplus, which is politically sensitive and has caused tension between China and the US, shrank for the third straight year.
The US, and China's other trade partners, have complained that Beijing has restricted access to its markets at a time when countries are trying to revive growth and create jobs.
Gov't accused of 'enslaving' CLICO policyholders
Former attorney general Ramesh Lawrence Maharaj has accused the coalition People's Partnership government of seeking to "enslave" policyholders even as the High Court is being asked to enforce their right to full compensation on the Executive Annual Premium Policy issued by the struggling Colonial Life Insurance Company (CLICO).
Maharaj, speaking after a meeting of the CLICO united policyholders group, accused Finance Minister Winston Dookeran of engineering the government's plan to enslave policyholders.
"The government is using the money of the policyholders and telling them they are not giving the value of CLICO and CL Financial.
"They cannot see the financial report and the government will take away right of policyholders through Parliament for them to file action against CLICO. There is no difference to that and slavery," said Maharaj, who is also representing the aggrieved policyholders.
Repayment plan
Last year, the government announced a plan to repay policyholders their principal balances over a period of 20 years without interest in the form of zero coupon bonds.
Last week, the government said it had approved the creation of a CLICO investment trust that is likely to meet all outstanding payments to policyholders of the troubled insurance giant within the next four months.
Dookeran told reporters that Cabinet had approved the Trust and for payments to policyholders with investments of TT$75,000 (US$12,500) and over being completed by February 29.
"Cabinet took the decision to approve the establishment of a CLICO investment trust," he said, adding that the 51.9 million shares of Republic Bank, which are "now in the hands of CLICO, will be transferred to the trust.
"This represents, at today's market value, a transfer of approximately TT$4.8 billion (US$800 million). Those policyholders, who will be issued bonds of 11 to 20-year duration, will now have access to this trust to purchase units equivalent to the value of their deposit during that period of 11 to 20 years," he explained.
"We anticipate that the total value of such obligations is in the order of TT$5.2 billion (US$800.6 million) and if they were all to take up this offer, the government will still have to add a further TT$400 million (US$66.6 million) to the trust in order to have it fully capitalised to do this transaction," Dookeran said.
Withholding information
But Maharaj said that Dookeran's plan "will only give the policyholders 42 cents (US$0.07) in the dollar when he is saying that their plan will give them 92 cents (US$0.34) in the dollar.
"They have refused to give us information that their plan will support 92 cents ... . We have written them letters and they have refused to give us information," he added.
Meanwhile, British Queen's Counsel Peter Knox is due to represent the policyholders in the High Court on Wednesday after the members filed a claim against the government asking the court to enforce their right to full compensation on the Executive Annual Premium Policy.
The policyholders are also requesting that the court grant an interim order against the Cabinet ordering it to supply the audited accounts of CLICO and its parent company CL Financial, so that the more than 200,000 policyholders of CLICO as well as taxpayers can see the value of the assets of the insurance company.
The policyholders are contending that the government is acting unlawfully in treating them unequally in the whole issue.
CMC
French industrial output rises more than expected
French industrial output rose by a greater-than-expected 1.1% in November, lifted by production of electronic equipment and refinery output.
Manufacturing output increased by 1.3%, said national statistics office Insee.
Year-on-year, manufacturing production was up 2.2% as output from refineries surged from weak levels a year ago during strikes.
Separately, the Bank of France said the economy had failed to grow in the fourth quarter of 2011.
Insee, who provide the official growth figures, said last month that the economy had grown by 0.3% in the third quarter and forecast a contraction of 0.2% in the last three months of 2011.
But if the Bank of France's estimate is correct, it should allow the government to come very close to meeting its full-year target of 1.5% growth.
Insee will release fourth quarter growth figures on 15 February.
Key tax deductions left hanging
It may be a new year, but when Congress returns from its winter break it will be all old business that lawmakers failed to finish before Christmas.
The fight over a temporary extension of the payroll tax cut and long-term federal unemployment benefits sucked up all the oxygen on Capitol Hill. And it will suck up more between now and the end of February, when the two-month extension Congress managed to pass expires.
In the meantime, lawmakers left more than 50 expiring business and individual tax breaks hanging in the balance, along with an expanded mass transit break for workers.
Officially, of course, they expired on Dec. 31. But like Lazarus, they may be risen from the dead by Congress, which could choose to extend them and make the breaks retroactive to the start of this year. That way they'll be in effect before taxpayers have to fill out their federal returns for this tax year in early 2013.
The value of keeping the so-called tax extenders on the books is debatable. Tax experts argue that many should be ditched.
But the everlasting question mark punctuating these and other tax breaks is a source of frustration for anyone who takes tax and financial planning seriously.
"Taxpayers are very unhappy because they don't know what's going to happen; they can't plan," said David Mellem, who is certified to represent taxpayers before the IRS.
Expanded mass transit break: For three years, workers whose employers subsidized their commuting costs were entitled to receive the same amount of money whether they took mass transit or drove to work and paid for parking.
The parity in the benefits, which are tax-free to workers, meant mass transit commuters got more than they had in previous years.
Congress = Uncertainty, Inc.
But now Congress has let the mass transit expansion expire. As a result, those who take mass transit may only receive up to $125 a month tax-free, whereas those who drive to work can receive $240 a month.
State and local sales tax deductions: Taxpayers are allowed to deduct their state and local income tax on their federal return. But in recent years, lawmakers gave them a choice: They either could deduct their income tax or the state and local sales taxes they paid in a given year.
The choice benefits residents of the nine states that don't actually have an income tax.
As of now, those residents won't have that choice for this tax year.
What the payroll tax cut deal will do
Mortgage insurance deduction: In addition to deducting the interest they pay on their mortgage, taxpayers whose adjusted gross income doesn't exceed $110,000 have been allowed to treat the premiums they pay for mortgage insurance as deductible interest too.
But that may not be an option for tax year 2012.
School teacher tax deduction: Many K-12 teachers pony up their own money to buy supplies and equipment for their classrooms. Unless Congress acts, they will no longer be able to deduct up to $250 a year for those expenses.
Higher education tuition deduction: For tax year 2011, taxpayers are allowed to deduct qualified tuition and related expenses paid on behalf of anyone in their household to a college or university. The deduction is available regardless of whether one chooses to itemize or not.
The deduction is worth up to $4,000 for someone whose adjusted gross income doesn't exceed $65,000 if single ($130,000 if married filing jointly). Those making between $60,000 and $80,000 ($130,000 to $160,000 if married), however, may only claim up to $2,000.
Tax year 2012 may be a different story. But look on the bright side. While the tax break hasn't been renewed, it means one less complicated deduction for taxpayers to figure out.
Larger AMT exemption amounts: To protect more than 20 million middle class households from having to pay the Alternative Minimum Tax, Congress typically passes an AMT "patch" every year.
They have yet to do so for 2012, but because most Americans don't have to file their returns until early 2013, lawmakers could pass a patch at any point this year and have it apply in time for the 2013 filing season.
The AMT was intended primarily for high-income taxpayers. But in recent years, it has threatened to engulf the less affluent because the income thresholds determining who must pay the tax were never adjusted for inflation.
The patch increases the amount of income tax filers may exempt from consideration when calculating whether they need to pay the AMT.
Without the AMT patch, tax filers would only be able to exempt $33,750 in income if single or $45,000 if married filing a jointly, according to CCH, a tax information publisher. That is considerably less than the $48,450 that single filers and $74,450 joint filers may claim on their 2011 returns.
CNNMONEY
Swiss National Bank chairman Philipp Hildebrand resigns
The chairman of the Swiss National Bank (SNB), Philipp Hildebrand, has resigned with immediate effect.
It follows revelations his wife Kashya bought $504,000 (£323,024) in August, three weeks before the central bank intervened to cap the Swiss franc.
He told a news conference he had "no knowledge" of his wife's transaction, which she later made a profit on.
The SNB said last week that Mr Hildebrand's wife had broken no rules by making the currency trades.
According to an investigation carried out by accountants PricewaterhouseCoopers (PwC) on the bank's orders, Mrs Hildebrand bought $504,000 on 15 August because she wanted to have half of the family's assets in US dollars.
In early September, the central bank intervened to try to weaken the strong franc.
That meant that four weeks later, when the family sold $516,000, converting it back into Swiss francs in order to buy a new property in Switzerland, they made a profit on the transaction. That was because the franc had fallen against the dollar in that time.
Speaking at a press conference in Berne, Mr Hildebrand said: "I have come to the conclusion it is not possible to provide conclusive and final evidence that my wife did initiate the transaction without my knowledge.
He added: "I would like to think I have been a damn good central banker.
"I personally advocated strongly and early for stricter capital requirements for the big banks," he added. "The policy of the central bank was a success in recent years."
The Swiss National Bank cleared Mr Hildebrand of any wrongdoing in a report in late December.
This report, which detailed his wife's dealings, was published last week as new allegations surfaced.
The Swiss weekly magazine Weltwoche alleges Mr Hildebrand personally authorised foreign exchange dealings using his personal account three weeks before, and three weeks after Switzerland introduced a currency cap.
Strong currency
The Swiss National Bank said it will continue to defend "with the utmost determination" the exchange rate floor of 1.20 francs a euro.
It added it "regretted the decision and the circumstances" that led to Mr Hildebrand to step down as chairman.
The 48-year-old former hedge fund manager's two-year chairmanship of the Swiss National Bank has not been without controversy.
He had faced calls to go after he ran up record losses in 2010 to try to halt the rise of the Swiss franc, an effort which cost the central bank 26.5 billion francs (£18bn; $27.8bn in current prices).
However, his work was valued by some key figures in the financial world.
Bank of England governor Sir Mervyn King said in a statement: "We all know that he is a man of total integrity, extraordinary ability and, most important of all, courage.
"Such people are rare. His country will miss him."
Position 'untenable'
The strong currency rise in 2011 hit Swiss exporters, making goods more expensive for foreign buyers, and hurting Swiss companies' profits when they repatriate their foreign earnings back home.
It saw Switzerland cut its 2012 growth forecast from 0.9% to 0.5% last month.
Tony Nyman, an analyst at Informa Global Markets, said Mr Hildebrand's position was "almost untenable and so it has proved".
"The Swiss franc has actually gained on the news possibly due to hopes of increased integrity ahead, but also market positioning too," he said.
"Once the news gets digested, we do not expect a lasting impact on the franc from the news, however."
Voting Begins in First Primary of 2012 US Presidential Election
Voters in the U.S. state of New Hampshire are casting ballots Tuesday in the first primary election of the 2012 U.S. presidential campaign.
Residents in the small town of Dixville Notch, near the Canadian border, cast their votes in the Republican Party primary shortly after midnight local time . Officials there say former Massachusetts Governor Mitt Romney and Jon Huntsman, the former U.S. ambassador to China, each won two votes of the nine ballots cast. Voters in the rest of the state were due to go to the polls later in the day.
Romney held a large lead in public opinion polls ahead of Tuesday's primary, but that did not keep his main challengers from intensifying their attacks on him during last-minute campaigning Monday.
Much of the criticism has centered around Romney's previous career running a private investment firm where he made millions of dollars. Many people say Romney's firm laid off hundreds of employees from companies it bought, while making large profits for the investors.
Ex-U.S. Senator Rick Santorum, who lost to Romney by only eight votes last week in the Iowa caucuses, is hoping to also come in second in New Hampshire. But the latest polls suggest second place may go to Texas Congressman Ron Paul.
Besides Huntsman, the other major contenders for the Republican nomination include Texas Governor Rick Perry and ex-House Speaker Newt Gingrich.
All the candidates have been seeking to highlight their conservative credentials against the more liberal President Barack Obama, a Democrat.
Mr. Obama is facing no major challengers in Tuesday's primary vote. The president won three votes in Dixville Notch.
Many political analysts think next week's primary election in South Carolina will reveal whether the moderate Romney can rally the support of conservative voters.