Palestinians Face Setback in U.N. Membership Bid
France is expected to explain its decision on Friday to abstain from any vote on Palestinian membership in the United Nations.
The move comes a day after U.N. envoys announced the planned abstentions of France, Britain and Colombia.
Palestinians need at least nine votes in the 15-member U.N. Security Council for their membership resolution to succeed. The United States has pledged to veto the measure if it is brought to a vote.
Palestinian President Mahmoud Abbas submitted the application for U.N. membership in September in a bid to gain Palestinian statehood recognition. The U.S. has been urging Palestinians to return to direct peace talks with Israel.
Tensions between Israel and the Palestinians heightened on Monday after the U.N. cultural agency, UNESCO, approved a Palestinian request for full membership.
On Thursday, Israeli Prime Minister Benjamin Netanyahu ordered his government to freeze the country's $2 million annual funding of UNESCO. The U.S. said on Monday that it would stop funding UNESCO.
Also this week, the Israeli Cabinet announced it would expedite construction of Jewish settlements in East Jerusalem and the West Bank and suspend the transfer of tax revenue it collects for the Palestinian Authority.
A senior Israeli official said the moves were a punitive response to what he called recent unilateral actions by the Palestinians.
The Palestinians' U.N. observer urged the Security Council to take action against Israel for accelerating settlement building and what he said was “illegally hijacking” Palestinian tax revenue.
Direct peace talks between Israel and the Palestinians broke down more than one year ago after an Israeli moratorium on West Bank settlement construction expired. Palestinians oppose building on land they want as part of a future state.
G20 seeks solution to debt crisis
The G20 leaders are set to continue their talks on Friday as they seek to find a sustainable solution to the eurozone debt crisis.
They are expected to discuss ways to increase the firepower of the International Monetary Fund (IMF).
The hope is that increased resources will help the IMF to support struggling eurozone economies, such as Greece.
There have also been calls for a "financial firewall" to protect vulnerable economies such as Italy.
The US President, Barack Obama, said on Thursday that resolving the eurozone debt crisis was "the most important aspect of our task over the next two days".
Greek threat
The second day of the G20 meeting will also see the Greek prime minister George Papandreou face a confidence vote in parliament.
The opposition as well as several government MPs have called for Mr Papandreou to quit after his decision on Monday to hold a national vote sparked a turmoil on financial markets and upset his German and French counterparts.
Some members from his own party, including the finance minister said that they were against the referendum.
On Thursday, the prime minister said he would scrap the move if the conservative opposition party voted to pass the bailout package in parliament.
However, there are fears that he may lose the confidence vote and Greece may have to hold fresh elections, a move which may further delay the implementation of a Greek bailout package.
Eurozone leaders have already withheld 8bn euros ($11bn; £7bn) of fresh rescue loans to Greece and there are fears that further delays may see the government run out of cash and default on its payments.
Mixed messages
In other developments on the first day of the two-day G20 summit in Cannes:
- President Obama warned that the eurozone financial crisis threatened to engulf the world
- Italy is to commit to further cuts to its debts and its annual borrowing rate according to a draft communique
- China indicated that it would not consider providing money to the eurozone bailout fund until the situation in Greece has been resolved
- Chinese President Hu Jintao also played down the chance of allowing the value of the yuan to rise, contradicting more optimistic remarks by the US
- India and Canada expressed their opposition to the idea of a tax on financial transactions, something strongly backed by eurozone governments
- the G20 agreed to look at the credit default swaps markets, which has been blamed by some European leaders for exacerbating the eurozone debt crisis
Meanwhile UK Prime Minister David Cameron has called for "political will" to solve the current economic woes.
In a report to the summit, Mr Cameron said willingness to act in a united way was the way forward.
"We have the machinery that we need already," he said.
"What we need above all is the most precious and intangible commodity - political will.
"Political will to act together, and to build the consensus we need to confront squarely the problems before us so that we can return our economies to health and vigour."
'Explosion of Europe'
Mr Cameron's comments came amid increasing concerns about the breakup of the eurozone.
This after German Chancellor Angela Merkel said that the Greek referendum on the bailout package was essentially a vote on whether it wanted to be a part of the group.
She said the stability of the eurozone was more important than Greece's continued membership of it.
There are fears that if Greece decides to leave the eurozone, other economies may follow, a move that is likely to have huge implications for the region.
French President, Nicolas Sarkozy warned that "we cannot accept the explosion of the euro, which would be the explosion of Europe".
This is the first time that the French and German leaders, and Mr Papandreou himself, have openly talked for the first time of the possibility of Greece leaving the euro if it is unable to ratify the bailout package.
The uncertainty created by the developments in Greece has fanned fears of its impact on eurozone's other vulnerable economies such as Italy and Spain.
The biggest fears have been about Italy, whose debt levels are substantially higher than that of Greece.
It has already resulted in a surge in Italy's borrowing costs. It is now having to pay 5.1% on one-year loans, the highest rate since joining the euro compared with the 0.3% interest paid by Germany.
The Italian government has also been facing increasing pressure from the eurozone leaders to implement austerity measures and reforms in a bid to reduce its debt levels.
The fears were fanned further after six former allies of Silvio Berlusconi wrote an open letter on Thursday, urging him to quit after his government failed to agree urgent economic reforms.
The Italian cabinet agreed a limited package of budget reforms at an emergency meeting on Wednesday evening.
But they failed to agree to issue a decree implementing the changes, meaning that they must now go to a confidence vote in parliament - one that Mr Berlusconi may be at risk of losing.
"Italy holds the key to the eurozone debt crisis," said Luigi Speranza of BNP Paribas.
"Developments in Italy are a crucial test for the credibility of the anti-crisis framework set by the European Union."
Syria unrest: activists say 20 killed in Homs
Tanks mounted with machine-guns have opened fire in the Syrian city of Homs, killing at least 20 people, activists have reported.
The UK-based Syrian Observatory for Human Rights said the Baba Amr district came under heavy fire on Thursday.
Violence was also reported in other parts of the city.
It comes a day after the authorities in Damascus agreed to an Arab League plan calling on the government to pull the military out of cities.
The plan required Syria to withdraw all troops from urban areas and end all killing immediately.
The Arab League said Damascus had agreed to release all political prisoners and begin a dialogue with the opposition within two weeks.
The Syrian government also said it would allow journalists, rights groups and Arab League representatives to monitor the situation in the country.
At present foreign journalists are unable to move around Syria freely and information is tightly controlled and hard to verify.
Syrian opposition groups criticised the plan as an attempt by the regime to buy more time.
"The regime has accepted the Arab initiative out of fear of Arab isolation, its weakness and lack of options," a leading opposition figure, Burhan Ghalioun, wrote on his Facebook page.
"But its acceptance does not mean it will respect its clauses."
Mr Ghalioun is a senior figure in the Syrian National Council. Another member of the council, Samir al-Nashar, said it had met Arab League head Nabil al-Arabi to discuss the agreement with Damascus.
"We are not talking about a dialogue," he told AFP news agency.
"We offered to engage in negotiations to move from a authoritarian regime to a democratic regime. And we ask that Bashar al-Assad resign."
From Homs, video footage emerged purporting to show tanks firing in a built-up area on Thursday. The voice of the cameraman gives the date and mentions the previous day's agreement with the Arab League.
Protests against the rule of President Bashar al-Assad started in March but have become increasingly violent.
The government has tried to put down the demonstrations using the security forces and pro-government militia. Opponents of the regime have taken up arms and been joined by soldiers who have defected.
At least 3,000 people have been killed in the unrest in Syria, while hundreds of others have disappeared.
The government of Mr Assad - who took over from his father as president in 2000 - says the violence is being carried out by "armed gangs" and "terrorists".
More than 1,000 security personnel have lost their lives in the fighting, the government says.
China pledges more help to other developing countries
Chinese President Hu Jintao said Thursday that his country will provide more help to other developing countries.
He made the pledge at a Group of 20 (G20) summit in this French seaside resort.
China would provide new loans to help developing c
ountries improve infrastructure and would further reduce tariffs for the least developed countries, Hu told world leaders at the summit.
Between 2010 and 2012, China will provide Africa 10 billion U.S. dollars in the form of soft loans, the bulk of which will go to infrastructure development, he said.
Between 2011 and 2015, China will build 200 infrastructure projects in clean energy and environmental protection in other developing countries, he announced.
China will give zero-tariff treatment to 97 percent of the tariff items of exports to China from the least developed countries that have diplomatic relations with China, he said.
"We hope this move will also help achieve the development goals of the Doha Round at an early date," said the Chinese president.
Food security, infrastructure, and tariff-free and quota-free treatment to the least developed countries have been the focus of the G20 consultations on development this year, Hu said.
"They are also the key areas in which China has helping other developing countries within the framework of South-South cooperation."
Regarding food security, he said, China had, by the end of 2010, provided 4.3 billion yuan (680 million dollars) in food aid through bilateral channels.
To help African countries cope with severe droughts and food crisis, China has announced 533.2 million yuan (83.9 million dollars) in emergency food aid to the affected countries, he added.
Regarding infrastructure, Hu said, China had, by the end of 2010, completed 632 infrastructure projects in other developing countries.
Tepco to get $11bn government aid after plan approval
Tokyo Electric Power Company (Tepco) is set to receive 900bn yen ($11.5bn; £7bn) in bailout funds after the government approved its business plan.
The funds are a part of the government's bailout plan for Tepco, which is expected to make a loss of 576bn yen this year.
The earthquake and tsunami in March damaged its Fukushima Daiichi nuclear plant, resulting in radiation leaks.
It may have to pay $100bn in compensation claims due to those leaks.
About 80,000 people living with 20km (12 miles) of the Fukushima plant were forced to abandon their homes after the radiation leaks and many businesses were forced to shut down.
The projected losses for the current financial year have further added to Tepco's troubles. The company had reported a loss of 1.26tn yen for the financial year ending 31 March.
The losses coupled with the huge compensation claims it faces, had raised concerns about the long-term prospects of the company, prompting the government to step in a bid to bailout the company.
The government set up a special fund, to help Tepco compensate the victims and maintain its operations.
However, the government had asked the company to submit a business plan indicating how it indented to turn around its fortunes, in order to receive the funding.
"I urge Tepco and the bailout fund to implement sincere compensation and thorough restructuring, taking into account that they are borrowing a massive amount of money from Japanese citizens," Japan's trade minister Yukio Edano said.
The company had submitted its proposal last week which it said will help it cut almost 2.5tn yen in costs over the next ten years.
AIG posts $4.1 billion loss
American International Group is back in the red. Way in the red.
The bailed out insurer posted a net loss of $4.1 billion on Thursday, a loss per share of $2.16 for the third quarter. While analysts hadn't expected the company to post a profit, the size of the loss exceeded expectations.
The outsized loss sent AIG (AIG, Fortune 500) shares lower after the closing bell, with prices dropping more than 1% to $24.35.
And that's bad news for taxpayers, since the U.S. Treasury still owns a substantial chunk of AIG.
Back in 2008, the government agreed to help the giant insurer get back on its feet with a $180 billion lifeline. AIG has been slowly working toward paying back that loan.
But declining profits, and a recent drop in share price make that a much tougher task.
If the government is to be made whole, AIG will have to find a way to boost its share price. Shares now sit well below $28.72 -- the breakeven point for Treasury's investment.
Separately, AIG announced Thursday that its board of directors had authorized a $1 billion share buyback, a sign the company views its stock as undervalued.
AIG stock's slide may hurt taxpayers
AIG CEO Robert Benmosche attributed the loss to a tough business environment.
"AIG continues to navigate a challenging global economic environment, and our results for the quarter were adversely affected by equity market declines, widening credit spreads, and declining interest rates, as well as property catastrophe losses," Benmosche said in a statement.
The company's bottom line suffered from a $1.5 billion impairment charge in its aircraft leasing division, and AIG was hit by the declining value of its stake in Asian insurer AIA.
Last quarter, the company reported net income of $1.8 billion -- a rare profit.
CNNMONEY
Republic Bank earns $1.1B in profit
Republic Bank has recorded an annual profit of $1.1 billion for the financial year ended September 30, 2011.
That’s a 12.8 percent increase over last year of profit attributable to shareholders from the bank’s holdings here in Trinidad and Tobago, as well as subsidiaries in Barbados, Grenada, Guyana and the Cayman Islands.
In the midst of continued sluggish activity on the local market and the debt crisis facing the United States and some European countries, Republic Bank’s managing director David Dulal-Whiteway credited the bank’s year-on-year increase in profits (2010 to 2011) to recovery of bad loans and an increase in loan demands.
“We had a good recovery of previously written off loans this year; approximately TT $180 million worth, which would have pushed up our income. In addition, there has been a slight growth in our loan portfolio. Although it is less than one percent, it is an improvement over the previous two years, 2008 to 2010, when we saw a reduction in loan demands,” Dulal-Whiteway said.
Questioned about the impact of excess liquidity on Republic Bank’s profits, Dulal-Whiteway explained that “excess liquidity actually goes onto our balance sheets as assets. Most of that money is invested in Treasury Bills or deposited as cash in the Central Bank. Liquid assets tend to generate the lowest yields, which is why banks prefer to have a higher loan to deposits ratio. Two or three years ago our loans to deposit ration was approximately 80 percent but today it is in the mid-60s.”
Looking ahead, Dulal-Whiteway expressed hope Republic Bank will maintain its level of profit in 2012, even though economic activity in the region is expected to be largely stagnant.
“Next year’s results should be at least as good as this year’s mainly due earnings from Trinidad and Tobago, where we hope to see growth based on initiatives mentioned in the 2011 - 2012 budget. However, we expect to see more mixed results from our regional subsidiaries, whose economies are mostly tourism-dependent. Take Barbados for example, where the number of tourists has increased but visitors are spending less,” Dulal-Whiteway said.
The managing director’s view on the economic outlook for Republic Bank in 2012 were similar to those of his chairman, Ronald Harford, who issued a statement about the $1.1 billion profit on Wednesday.
“The outlook for 2012 is one of flat performances across the region, except for resource-endowed countries like Guyana and Trinidad and Tobago, where better growth rates are expected. We remain hopeful that Government’s recent 2011 - 2012 budget presentation, which focussed on job creation, spurring investment and national security, will contribute to an improved economic environment,” Harford said.
Shareholders will get a final dividend of $2.75, it was $2.40 in 2010, which will be paid on December 2. A half year dividend of $1.25 was paid on May 27, 2011, making a total dividend on each share of $4.00, up $0.45 from 2010. The dividend yield based on the current share price is 4.3 percent.
Noting Republic Bank’s dividend yield is over 40 percent versus the average Fixed Deposit Rate of 0.5 percent, Dulal-Whiteway said “I encourage people to take money from fixed deposits and buy shares instead.”
On the issue of Government’s plan to list Republic Bank shares on the TT Stock Exchange via a company to be called National Enterprises Limited Two (NEL 2), Dulal-Whiteway said “work is being done on the legislative framework for NEL 2 but I am unaware of the stage it is at.”
Stocks in Europe spike as Greek referendum scrapped
Stocks rose sharply yesterday as the Greek prime minister bowed to massive political pressure to scrap a referendum on a European bailout plan. A surprise rate cut from the European Central Bank also helped boost sentiment following days of turmoil in financial markets.
However, the main focus centered on Athens where Greek Prime Minister George Papandreou faced intense pressure to resign and let a coalition government approve a European bailout plan instead of holding a risky referendum on it.
Papandreou has withstood the pressure to stand down and now says he is seeking emergency talks with the opposition, in the apparent hope of forging a national unity government. Papandreou made the comments in an emergency Cabinet meeting yesterday. His office released his speech to the ministers.
Papandreou’s unexpected announcement Monday that he intended to put the hard-fought bailout package to a referendum horrified Greece’s international partners and creditors, triggering turmoil in financial markets as investors fretted over the prospect of a disorderly default and the country’s exit from the 17-nation eurozone.
“With a sharply diminished majority and defections from his party almost daily perhaps the Greek leader realised before anyone else that his way forward is blocked at every turn,” said Andrew Wilkinson, an analyst at Miller Tabak & Co.
“His only way to stop political bickering and back stabbing is to throw fuel on the fire, creating sufficient illumination for politicians and people to see clearly enough that there is only one path ahead,” he added.
News that the vote has been scrapped helped ease those concerns.
In Europe, Britain’s FTSE 100 was up 1.1 per cent at 5,546. France’s CAC-40 rose three per cent 3,204 while Germany’s DAX was also three per cent higher at 6,144.
Despite yesterday’s recovery, markets remain jittery about how Europe will resolve its debt crisis, especially now that it’s been openly admitted that a country can actually leave the euro.
Premier Silvio Berlusconi’s government in Italy was teetering as well after it failed to come up with a credible plan to deal with its dangerously high debts, and Portugal demanded more flexible terms for its own bailout. The euro was up 0.6 per cent at US$1.3771.
Earlier in Asia, Hong Kong’s Hang Seng retreated 2.5 per cent to close at 19,242.50. South Korea’s Kospi lost 1.5 per cent to 1,869.96 and Australia’s S&P/ASX 200 shed 0.3 per cent to 4,171.80.
Mainland Chinese shares rose, with the benchmark Shanghai Composite Index gaining 0.2 per cent to 2,508.09. (AP)
Secretary of State Hillary Rodham Clinton & other Ministers on Dominica’s Anniversary of Independence
On behalf of President Obama and the people of the United States, I am delighted to send best wishes to the people of Dominica as you celebrate your national day this November 3.
The United States and the Commonwealth of Dominica share a strong relationship based on mutual respect, shared values, and common interests. We are working together to ensure respect for the rule of law, strengthen regional security and stability and promote human rights. Our partnership through the Caribbean Basin Security Initiative and the Energy and Climate Partnership of the Americas is enhancing prosperity throughout the region and helping to build a stronger and brighter future for all people.
As you celebrate this special day with family, friends and loved ones, know that the United States is a committed partner and friend, and we look forward to finding even more ways to work together. Happy Independence Day and best wishes for a year of peace, prosperity and opportunity.
Meanwhile
Prime Minister Douglas also congratulated Dominica. In his address he said that St. Kitts and Nevis is confident that the people of the Commonwealth of Dominica will continue to put forth the necessary work to make their country progress.
St. Kitts and Nevis’ Prime Minister Hon. Dr. Denzil L. Douglas in a letter to his Dominican counterpart, the Hon. Roosevelt Skerritt to mark his country’s 33rd Anniversary of Independence expressed congratulations on behalf of the Government and the People of the twin-island Federation.
“It is my heartfelt wish that The Commonwealth of Dominica and by extension its people will enjoy the many commemorative activities surrounding this year’s Independence celebrations and reflect on the prestigious heritage of their country,” said Prime Miniser Douglas.
The St. Kitts and Nevis leader hoped that “God’s many blessings maintain sway over all future national endeavors.”
The Commonwealth of Dominica became an independent nation on November 3rd 1978.
200 charges for fraud in Trinidad
WARRANTS have been issued for the arrest of three senior public servants on charges that they defrauded the Board of Inland Revenue (BIR) of more than $.6 million.
One of the officials is currently on suspension and has similar matters before the Port of Spain Magistrates' Court.
Also charged with the three public officials is a shop operator, who has been listed as a director of one of six bogus companies set up to extract more than $600,000 in VAT returns from the BIR.
The bogus companies are all from California, central Trinidad.
The three public servants— among them a man and wife from different ministries, and the shop owner, have all been slapped with more than 68 charges each.
The accused have been charged with failing to comply with a notice given by the BIR to supply the books and records (to substantiate the claims submitted) of the six companies as requested by the BIR under section 51 (2) b of the VAT Act.
They were also charged with submitting false and/or misleading returns to the BIR. The charges carry a maximum fine of $15,000 or two years imprisonment.
The charges were laid against the companies, its directors and secretaries, by officials at the Criminal Tax Investigations Unit (CIU) of the Inland Revenue Division of the Ministry of Finance. In most of the companies, the director was listed as the secretary.
More than 200 warrants in relation to the charges have been obtained and are to be executed on the four accused who are expected to surrender themselves to police officers at the tax investigations unit next week.
The accused were granted a total of $3 million bail to cover all the charges.
The three public servants have been slapped with in excess of 60 charges each regarding their involvement in the alleged scheme, while the shop owner has to answer six charges. He was listed as a director at one of the companies.
The alleged offences are said to have occurred between 2008 and 2010, the information which was laid at the Port of Spain Magistrates' Court on June 29, states.
Even though the accused would have obtained in excess of $600,000, the tax laws do not cater for charges of theft and obtaining money under false pretenses to be laid against accused persons.
Source-TEN