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.
Burma’s Aung San Suu Kyi Confirms Run for Parliament
Burmese opposition leader Aung Sang Suu Kyi has confirmed that she will run for parliament in the country's highly anticipated April by-elections.
A spokesperson for Aung Sang Suu Kyi's National League for Democracy party said Tuesday the Nobel Peace Prize winner will compete for a seat in Kawhmu Township, on the outskirts of her hometown of Rangoon.
Last week, the government approved the NLD to participate in the April 1 elections, marking its return to mainstream politics after two decades. But it had been unclear whether Aung Sang Suu Kyi herself would compete for a seat.
It will mark the first time the pro-democracy leader has run for political office. Her NLD party won a landslide victory in 1990, but the military government prevented it from assuming power. Aung Sang Suu Kyi spent the majority of the years since then under house arrest.
The NLD boycotted general elections in November 2010 because of restrictions that, among other things, would have prevented Aung Sang Suu Kyi from running. That vote installed a nominally civilian government that has made a series of reforms, including beginning a dialogue with opposition groups.
Nicholas Farrelly, a Burma analyst at the Australian National University, told VOA the NLD's decision to compete in the upcoming elections reflects a significant change in Burma's political climate.
“Since the elections that were held back in November 2010, so much has changed in the politics of Burma, and I think we see that so clearly with this recent effort by Aung San Suu Kyi and her supporters to become active players once again in the country's mainstream political system.”
Farrelly warns that the outcome of the upcoming elections may not significantly impact government policy. But he says it still represents a symbolic step in Burma's path to democracy.
“To have Aung San Suu Kyi sitting in the National Assembly would be a real turn for the better. For the country, it would perhaps show that some of the vitriol and confrontation and bad blood which has tended to affect the country's politics is starting to be forgotten, and with that, there may be more opportunities for more compromise and for some kind of reconciliation.”
The elections are intended to fill 48 parliamentary seats vacated by those who have since become government ministers. But the number of seats available is not enough to threaten the resounding majority held by the ruling military-backed party.
Bomb Kills 25 in NW Pakistan
Pakistani officials say a bomb blast near the Afghan border has killed at least 25 people and wounded 26 others, making it the deadliest attack of its kind in months.
The explosion hit a market in the Khyber tribal region Tuesday at a site where vehicles being used by pro-government militias were located. Officials say they believe the bomb was likely remote-controlled.
While no one immediately claimed responsibility for the blast, this type of attack is a common tactic of Pakistan's militant groups in the country's volatile northwest.
Since 2007, Islamist militants — some with links to al-Qaida — have carried out hundreds of bombings, which have killed thousands. However, there had not been a major Islamist militant attack in the country since a suicide bomber killed at least 31 people at a funeral for a tribal elder opposed to the Pakistani Taliban last September.
Pakistan's army supports the formation of local anti-Taliban militias, known as “lashkars,” and militants have continually attacked militia members and their families over the past few years.
The Pakistani armed forces also have targeted militants in Khyber and the surrounding areas for more than four years.
North Korea to Pardon Prisoners to Mark Kims’ Birthdays
North Korea plans to pardon an unspecified number of convicts next month to mark the upcoming milestone birthdays of its two late leaders, Kim Jong Il and Kim Il Sung.
The official Korean Central News Agency said Tuesday the amnesty would begin on February 1, by order of a parliamentary decree. But it did not say what crimes would be pardoned or how many prisoners would be released.
The amnesty is meant to commemorate the birthdays of former leader Kim Jong Il, who would have turned 70 in February, and his father, North Korea founder Kim Il Sung, whose 100th birthday is in April.
North Korea occasionally releases prisoners on significant anniversaries. South Korea's Unification Ministry says Pyongyang last held a special amnesty in 2005 to mark the 60th anniversary of liberation from Japanese colonial rule.
Human rights groups estimate some 200,000 people are held in North Korean prison camps, where torture is believed to be prevalent and living conditions can be deadly.
The Tuesday report in KCNA said the most recent amnesty embodies the “noble, benevolent and all-embracing politics” of the two Kims, whose birthdays are celebrated as national holidays.
North Korea's new leader, Kim Jong Un, is thought to have turned 28 or 29 on Sunday, though his birthday is not yet recognized as a holiday. His father, Kim Jong Il, died of a heart attack on December 17.
Syria's Assad blames 'foreign conspiracy'
Syrian President Bashar al-Assad has blamed a foreign conspiracy for trying to destabilise Syria.
He said the "external conspiracy is clear to everybody", as protests continue against his rule.
In his first public remarks for months, he said: "Regional and international sides have tried to destabilise the country."
The UN said last month that more than 5,000 civilians have been killed since protests began in March last year.
President Assad's crackdown on the protests has led to international condemnation and sanctions.
A team of 165 monitors from the Arab League has been in Syria since December to monitor implementation of a peace plan that calls for an end to all violence, the removal of heavy weapons from cities and the release of all political prisoners.
The Arab League suspended Syria in November and imposed sanctions.
Criticising the regional grouping, Mr Assad said: "We were surprised Arabs did not stand with Syria".
He said Arab countries that opposed Syria were under outside pressure which was undermining their sovereignty.
But, he added, Syria would not "close its doors" to an Arab solution as long as "it respects Syria's sovereignty".
Mr Assad described the events of the past 10 months as regretful and said they had been a serious test for Syria.
However he ruled out snap reform in response to the unrest.
"We should link what happened before the crisis and post crisis and then embark on reform... We shouldn't build our reforms on this crisis," he said.