Chinese bank mulls further financing for Ethiopian development projects
Ethiopian Prime Minister Meles Zenawi on Monday met a senior official of the Export-Import (Exim) Bank of China on ways of further enhancing the bank's financial assistance to development projects in Ethiopia.
During a meeting here with Exim Vice President Zhu Hongjie, Zenawi said he is very grateful for China's assistance, as he understands that every penny China, also a developing country, lends to Ethiopia is out of generosity of the Chinese people.
Zhu told reporters that he had a fruitful discussion with Zenawi.
Zhu said Ethiopia and China have maintained very good relations for the past years in terms of politics, economics and culture.
Zhu was leading a high-level Chinese delegation for a working visit in Ethiopia. The delegation is expected to meet with senior Ethiopian officials and other pertinent bodies and visit development projects financed by the bank here in the country.
Europe goes back to the drawing board
European leaders will meet this week for yet another summit to discuss ways to save the euro, and this time they are talking about rewriting European Union treaties.
The key players -- Germany, France and the European Central Bank -- all broached the subject last week, saying closer political and economic ties are needed to ensure the future of a unified Europe.
Early Monday, French President Nicolas Sarkozy and German Chancellor Angela Merkel met to hammer out the details of a new fiscal pact.
Among other things, the pact would change existing laws to make it easier for EU regulators to challenge budget policies of member nations.
The overarching idea is to begin building a fiscal union that will correct flaws within the EU, which has a common currency and shared monetary policy, but no mechanism to ensure that all members are financially sound.
"We are beginning to create the fiscal union," Merkel told lawmakers Friday. But she stressed that the European debt crisis will not be resolved overnight, saying the process "will take years."
In what is seen as a concession by Sarkozy, the pact includes automatic sanctions for member states that violate an existing rule to keep budget deficits under 3% of gross domestic product.
On Thursday and Friday, government leaders from all 27 EU nations will meet in Brussels for what is expected to be the final meeting of the European Council in a year that has seen more than its fair share of such summits.
Merkel and Sarkozy both said last week that a fiscal pact should be written into the EU treaty so that budget rules can be properly enforced through broader oversight and automatic penalties for nations that fail to comply.
"Europe needs to be rethought," Sarkozy said. "It must be redesigned."
In a sign of what's at stake for the United States, Treasury Secretary Tim Geithner will spend most of this week in Europe to meet with top officials, including Sarkozy and the newly appointed Italian Prime Minister Mario Monti.
President Obama has called the crisis a serious threat to the U.S. economy, noting that Europe is one of America's biggest trading partners.
While both Merkel and Sarkozy agree on the need to form a fiscal union, they appear to be at odds over what that could mean.
Last Friday, Merkel again ruled out the creation of eurobonds, which could drive up borrowing costs for creditworthy nations such as Germany. The European Commission has proposed issuing so-called stability bonds as part of a plan to pool government debt across Europe.
Merkel also stressed that the ECB should remain independent, underscoring the deep opposition in Germany to the central bank risking inflation by printing money to prop up troubled governments.
Sarkozy also said the ECB should remain independent, but he sounded much less draconian than his German counterpart.
CNN
Iraqi leader under Saddam Hussein to be executed
Tariq Aziz, who served as Iraq's top diplomat under Saddam Hussein, will be executed next year, after U.S. forces have pulled out of the country, an adviser to Iraq's prime minister told CNN on Monday.
"It will definitely take place, and it will take place after the Americans leave Iraq," said the adviser, Saad Yousif al-Muttalibi, about Aziz, who served as foreign minister.
A lawyer for Aziz said he was surprised. "I did not expect the government would be that stupid, by doing this they will drag this country to the edge of the abyss," said Badi Arif in a telephone interview.
"What about the national reconciliation that this government has been calling for? The government's position will be even weaker if they carry out the execution after the American troops leave the country and this will lead to more conflict among Iraqi factions."
A new law is under consideration that would require death sentences be ratified by the president within 15 days of their being handed down, al-Muttalibi said.
Al-Muttalibbi added that all of Iraqi society, including members of the three main sectarian groups -- Sunnis, Shiites and Kurds -- favor the law.
Aziz was captured by U.S. forces in April 2003, shortly after the U.S.-led invasion that toppled Hussein. He appeared frail when he testified in Hussein's 2006 trial on war crimes charges, for which the ousted dictator was hanged later that year.
Aziz was sentenced to death in October 2010 by the Iraqi High Tribunal for his role in eliminating religious parties during Hussein's regime.
His family was shocked by the verdict, his daughter told CNN at the time.
"My father served his country for more than 22 years. He delivered himself to the U.S. Army (after the fall of Hussein) because he wasn't afraid. He didn't do anything wrong. He served his country," Aziz's daughter, Zainab Aziz, said. "He has been wronged."
Arif said last year that there was a political motive behind the death sentence.
"Mr. Aziz used to always tell me, 'They'll find a way to kill me, and there is no way for me to escape this,'" Arif told CNN. "But from a legal perspective, this sentence is wrong; this is illegal and this is unexpected."
Aziz served as deputy prime minister from 1981 to 2003, also holding the post of foreign minister for part of that time.
After the verdict was announced, Amnesty International urged Iraq not to carry out the sentences, even as it acknowledged the brutality of Hussein's regime.
"Saddam Hussein's rule was synonymous with executions, torture and other gross human rights violations, and it is right that those who committed crimes are brought to justice," said Malcolm Smart, Amnesty International's director for the Middle East and North Africa in 2010.
"However, it is vital that the death penalty, which is the ultimate denial of human rights, should never be used, whatever the gravity of the crime," he said in a written statement.
The Vatican also opposed the death sentence, spokesman Federico Lombardi told CNN.
"This is not the most adequate way to promote reconciliation and reconstruction of justice and peace in a country that has suffered so much," he said.
CNN
Russia election protests: Troops sent to Moscow
Thousands of police and interior ministry troops are being deployed in Moscow, after protesters accused the authorities of electoral fraud.
Lorries filled with troops were reported driving into central Moscow.
Interior ministry spokesman Col Vasily Panchenkov said they wanted "to ensure the security of the citizens".
At least 300 protesters were arrested overnight in Moscow, after parliamentary elections said to have been marred by flagrant violations.
Several thousand people had taken to the streets in one of the biggest opposition gatherings in the centre of the capital in years.
Alexei Navalny, a leading campaigner against corruption and fierce critic of Prime Minister Vladimir Putin, was among those detained.
A counter-demonstration by Putin supporters was held beside Red Square on Tuesday.
Observers from the Organisation for Security and Co-operation in Europe (OSCE) reported that Sunday's election had been slanted in favour of Mr Putin's party, United Russia.
United Russia won the election with just under 50% of the vote, a sharp drop in its support.
Correspondents say the result reflects Mr Putin's declining popularity ahead of his bid for the Russian presidency in March.
Pakistan's PM address to rebuild ties with US
Pakistan wants to rebuild ties with the United States, despite conflict with the US over deadly NATO airstrikes on its troops along the Afghan border.
In an interview with the media, Pakistan's Prime Minister, Yousuf Raza Gilani underlined his nation's stance, saying he did not regret skipping the Bonn meeting. But he stressed that Pakistan is committed to the reconciliation process in Afghanistan.
Yousuf Raza Gilani said, "Pakistan is committed, Pakistan has a resolve, Pakistan has ability, and Pakistan had been doing a lot for the reconciliation and Pakistan has suffered a lot because of foreign terrorism and extremism. Not only in the form of casualties of 30 thousand innocent people, but 5 thousand brave soldiers, law-enforcement agencies, and also in the form of economy. How can anybody doubt our intentions that after making so much sacrifices that we will not be committed to the reconciliation process in Afghanistan? We are committed and despite that we are not attending but we are committed, but we want to have our relationships with clear defined parameters in future."
Suicide Bombing Kills 48 at Shi’ite Shrine in Kabul
Afghan officials say at least 48 people, including women and children, have been killed in a suicide bomb attack on a Shi'ite shrine in central Kabul.
Officials say the suicide bomber detonated his explosives near the Abul Fazel shrine as pilgrims gathered Tuesday to celebrate the Shi'ite festival of Ashura. More than 100 people were also wounded in the blast.
Meanwhile, officials say a second explosion targeted a shrine in the northern city of Mazar-e-Sharif, killing four people. It is not clear whether Shi'ites were also the target of the second attack.
No one has immediately claimed responsibility for either attack.
The 10-day Ashura festival, which reaches its peak on Tuesday, is the most significant holiday for Shi'ite Muslims. It marks the martyrdom of Imam Hussein, the grandson of the Prophet Muhammad.
Afghan President Hamid Karzai immediately condemned the attack, saying it was the first time a terrorist attack has taken place on “such an important religious day in Afghanistan.”
Eyewitnesses say they expect the number of casualties to rise.
Attacks between Afghanistan's Sunni citizens and minority Shi'ite population have been rare in recent years. Attacks between the two groups are more frequent in neighboring Pakistan.
Officials also said three people were wounded Tuesday when a bomb hidden in a motorcycle exploded in the southern city of Kandahar. The attack did not take place near any building of worship.
The attacks come a day after world leaders gathered in the German city of Bonn to discuss Afghanistan's future as international combat troops prepare to leave the country.
President Karzai told the conference that after the withdrawal of NATO troops from his country in 2014, Afghanistan will still need international help for at least another decade.
Pakistan, considered vital to any prospect of stability in Afghanistan, boycotted the one-day meeting in response to a cross-border attack by NATO late last month that killed 24 Pakistani soldiers.
Tsunami that struck Japan in March resulted from merging waves
The devastating wall of water that struck Japan in March was the result of at least two waves that combined to create a more powerful tsunami, U.S. scientists said Monday.
Ocean ridges and mountain ranges below the surface of the water channeled the waves created by the 9.0 magnitude earthquake off the coast of Japan, bringing them together far out at sea to form a "merging tsunami," according to researchers from NASA and Ohio State University.
The earthquake and tsunami together killed 15,840 people, according to the most recent death toll, and set off a nuclear crisis at the Fukushima Daiichi plant.
Satellite data have enabled the researchers to come up with an account of the formation of the tsunami and its destructive force.
"Nobody had definitively observed a merging tsunami until now," Y. Tony Song, a research scientist at NASA's Jet Propulsion Laboratory in Pasadena, Calif., said in a statement.
The results of the research could help predict the risks from tsunamis in the future.
"We can use what we learned to make better forecasts of tsunami danger in specific coastal regions anywhere in the world," said Professor C.K. Shum of Ohio State University.
China 'ill-prepared' for unrest, says security chief
China's security chief has warned that the government needs better methods to deal with social unrest due to a slowing economy.
Zhou Yongkang, a member of the politburo, asked provincial officials for improved "social management".
China has seen an increase in labour unrest in recent weeks.
The comments are a sign that the Chinese government is worried that another slowdown could spark public anger.
"It is an urgent task for us to think how to establish a social management system with Chinese characteristics to suit our socialist market economy," Mr Zhou said in comments published Saturday.
"Especially when facing negative effects of the market economy."
He called for innovative approaches to a large set of policies which could include anything from increased policing to better internet control or better unemployment insurance.
There have been multiple signs of a slowdown in recent months in China.
The economy grew by 9.1% between June and September compared to a year earlier, the slowest rate of expansion in two years.
Last week, manufacturing was showed to have contracted sharply and the government cut the amount of money banks must keep in reserve to spur more lending, reversing recent policy.
There has also been a spike in labour unrest in recent weeks.
Employees of a Singaporean electronics firm Hi-P International in Shanghai went on strike last week over mass job losses.
Thousands of workers in Shenzhen and Dongguan, two of China's top export centres in the south of the country, went on strike last month protesting cuts in overtime.
Irish economy remains fragile, warns Taoiseach Enda Kenny
The Irish Republic's economy remains fragile and is likely to take years to recover, Taoiseach Enda Kenny has warned ahead of an austerity budget.
He said the "four-year path to recovery" would be difficult for many, including home owners, the jobless, and people trying to fund an education.
Mr Kenny also warned the country was spending 16bn euros more than it was taking in from taxes.
The televised address to the nation was the first of its kind in 30 years.
"Let me say this to you, you are not responsible for this crisis," said Mr Kenny.
"My government is determined that now, the necessary decision and challenges are made to ensure that this is never allowed to happen again."
Dole payments
He added: "I know this is an exceptional event. But we live in exceptional times. And we face an exceptional challenge."
Public spending in the Irish Republic will be cut by 2.2bn euros (£1.9bn) a year and taxes raised by 1.5bn euros, Mr Kenny said. He said income tax would be untouched but indirect taxes would be raised.
The proposals, which are due to be outlined in more detail in the Irish parliament later, are expected to include a rise in vehicle tax, cuts in some welfare entitlements and an increase in VAT to 23%.
The budget is also expected to include cuts to child benefit of up to 10 euros a month, dole payment cuts of around eight euros a week and a 50 euros annual fee on medical cards.
The Irish Republic is trying to save 3.8bn euros in a new round of cost-cutting measures following last year's international bailout.
Mr Kenny, who came to power in February, said the Irish economy remained fragile but job creation would be at the centre of the recovery.
He said steps to recover from the Irish economic crisis had been taken since last year but the crisis remained.
"This budget will be tough. It has to be tough," Mr Kenny warned.
"Right now the state is spending 16 billion a year more than it is taking in," he said.
"This problem will not be fixed unless we take action to bridge this gap. This can only be done by us, ourselves, working together."
Mr Kenny added: "I do not for a moment want to make it sound simplistic or painless. It is not. We are on a four-year path to recovery.
"This, our first Budget, is a necessary step, but it will include cuts to many worthwhile projects."
Italian taxes
His address was the first of its kind since Charles J Haughey made a similar appeal in 1980 when he claimed the Republic of Ireland was living beyond its means.
The second part of the budget will be announced on Tuesday - on the 89th anniversary of the signing of the Irish Treaty and the creation of the Free State.
The proposals come as Italy's new government adopted a package of emergency austerity measures aimed at fending off bankruptcy and saving the euro from collapse.
Taxes on the assets of the wealthy will go up, as will pension ages, and there will be a major drive to tackle tax evasion.
Italian Prime Minister Mario Monti said the measures were necessary to "save Italy", and announced he would give up his own salary as part of the effort.
The plans must still be approved by the Italian parliament.
Game designer Zynga plans $9bn stock market flotation
Game designer Zynga, which makes the highly successful FarmVille game for Facebook, has announced plans for a stock market flotation.
Reports suggest the firm could raise as much as $925m (£589m) from the listing.
The firm plans to sell 100 million shares, or 14.3% of the company, at $8.50 to $10 per share according to a regulatory filing made on Friday.
The IPO would value Zynga at as much as $9.04bn - one of the biggest US games companies by stock market value.
It would place the firm alongside industry giants Electronic Arts and Activision Blizzard.
The valuation is actually 30% less than Zynga's regulatory filing two weeks ago suggested its value would be - $14.05bn - meaning that the games maker cut its price to cope with volatile stock markets.
Unlike its competitors, Zynga does not charge for its games but makes money from selling add-ons such as virtual weapons, vehicles or buildings which can be used within the games.
Zynga earns over 90% of its revenue through Facebook according to its own figures.
In October the firm set up an initiative called Project Z which is designed to remove the firm's dependency on the social networking site.
Zynga has been in talks with Goldman Sachs and Morgan Stanley since June to manage the listing process on the US tech exchange, NASDAQ.
The firm has already reduced its expectations for the IPO after recent listings of other internet firms performed less well than planned.
Shares in the Social networking site LinkedIn fell below their May offer price after a 180 day lock-up period.
Discount voucher website Groupon listed on the Nasdaq exchange at the beginning of November and its shares are now trading below its initial offer price.
On Friday, the Office of Fair Trading (OFT) launched an investigation into Groupon after the firm broke UK advertising regulations 48 times in 11 months.