Argentina loses $1.3bn debt court appeal
Argentina has been told again it must pay back more than $1.3bn (£830m) to a group of investors - 11 years after its record debt default.
A New York appeals court unanimously rejected every Argentine argument against the payout.
The decision is the latest twist in the long-running legal saga.
Argentina refuses to pay anything to investors who declined to participate in a previous debt reduction deal involving most of the nation's lenders.
"What the consequences predicted by Argentina have in common is that they are speculative, hyperbolic and almost entirely of the Republic's own making," the judges said in their decision.
But the appeals court held off forcing Argentina to pay pending an appeal to the Supreme Court - which is considered unlikely to hear the case, but puts off any decision to 2014, well after Argentina's congressional elections in October.
The appeal came after a Manhattan court ruled last February that Argentina had violated its contractual obligation to treat all creditors equally. That meant the country would have to pay the bondholders, led by NML Capital and Aurelius Capital Management.
Argentina defaulted on some $100bn of debts in 2002, and has since restructured its debt twice, cancelling around 75% of the nominal value of the bonds.
Almost 92% of the country's bondholders agreed to write off most of the amount owed to them.
NML Capital and Aurelius are demanding 100% repayment of the $1.3bn, plus interest.
The investors were so determined to get their money that they went to court to have an Argentinean ship, the Libertad, impounded in Ghana last year. After several weeks, the ship returned home.
Source-BBC
N.Y. attorney general suing Trump's school for fraud
New York's attorney general accused Donald Trump in a lawsuit Saturday of defrauding students who studied at the billionaire mogul's investment institute, though Trump's representative said a large majority of the school's alumni were satisfied with their experience.
The $40 million civil suit alleges Trump made false claims about the school, including that he was personally involved in selecting instructors and creating the curriculum.
Eric Schneiderman, the New York attorney general, said Trump had crafted a "bait and switch" with his school, using his well-known name.
"Trading on his celebrity status, Mr. Trump personally appeared in advertisements making false promises to convince people to spend tens of thousands of dollars they couldn't afford for lessons they never got," he wrote in a statement. "No one, no matter how rich or famous they are, has a right to scam hard working New Yorkers. Anyone who does should expect to be held accountable."
The suit names both Trump, the chairman of the school, and Michael Sexton, its former president, as defendants. Schneiderman is seeking $40 million to repay customers who have enrolled in the school, as well as additional penalties and fines.
On Twitter, Trump called Schneiderman a "lightweight" and said the attorney general was "trying to extort me with a civil law suit."
He also linked to a website that claims 98% of Trump University's former students were satisfied with their experience.
Michael Cohen, executive vice president of the Trump Organization and a lawyer for the billionaire, said the suit "has no merit and is nothing more than a cheap publicity stunt to deflect from (Schneiderman's) weak job performance."
"I am shocked he didn't leak it to the Kris Kardashian show," Cohen continued. "Maybe his office should focus more of their attention and the use of our tax dollars on bringing to justice those responsible for the financial meltdown."
Cohen also pointed to the website citing an approval rating of 98% for the Trump investing classes, saying the figure was derived from questionnaires submitted by students upon completing the course of study. He said the website was created in anticipation of the lawsuit.
Trump University became the Trump Entrepreneur Initiative in 2010 after the New York State Education Department said the company could not use the term "university" without its consent. In 2011, the attorney general began investigating it, along with several other for-profit educational institutions.
Former students in California have also sued Trump's school, saying its advertising misled them into spending thousands of dollars on workshops and "mentorships." In a class-action suit filed in 2010, the former students say Trump University is "like an infomercial" that lures customers with the Trump name but fails to deliver on its promises of success in real estate.
The Trump school offered courses in real estate, asset management, entrepreneurship and wealth creation. The courses ranged in price from $1,495 for a three-day workshop to $34,995 for a "full education."
Unlike other for-profit schools, Trump's outfit relies heavily on the brand of its namesake.
Trump made his money by investing in New York real estate, casinos and golf courses around the world. But he is perhaps best known in popular culture for his long-running reality television show, "The Apprentice."
More recently, Trump made headlines for suggesting that President Barack Obama is not a U.S. citizen, part of Trump's public mulling of a presidential bid. He eventually declined to run for the White House.
Source-CNNMoney
Jump in mortgage rates hurts new home sales
Americans cut back sharply in July on their purchases of new homes, a sign that higher mortgage rates may slow the housing recovery.
US sales of newly built homes dropped 13.4 per cent to a seasonally adjusted annual rate of 394,000, the Commerce Department said Friday. That's the lowest in nine months. And sales fell from a rate of 455,000 in June, which was revised down from a previously reported 497,000.
The housing rebound that began last year has helped drive economic growth and create more construction jobs. But mortgage rates have climbed a full percentage point since May. The increase has begun to steal some momentum from the market.
Sales of new homes are still up seven per cent in the 12 months ending in July. Yet the annual pace remains well below the 700,000 that is consistent with a healthy market.
July's drop "may mark an uh-oh kind of moment for the housing recovery," said Mark Vitner, an economist at Wells Fargo Securities.
Homebuilder stocks declined sharply Friday, even as overall market indexes rose. Shares of Toll Brothers Inc, DR Horton Inc and Lennar Corp. -- three of the largest US builders -- all fell more than three per cent in afternoon trading.
And major homebuilders' shares have been dropping steadily since late May. The slide began after Federal Reserve Chairman Ben Bernanke first signalled that the Fed might reduce its bond purchases later this year. The bond purchases have helped keep mortgage rates and other borrowing costs low.
The average rate on a 30-year mortgage reached 4.58 per cent this week, according to Freddie Mac. That's up from 3.35 per cent in early May and the highest in two years.
The impact on would-be buyers' finances is significant.
Take someone who locked in the early May rate on a US$200,000 mortgage. They would have a monthly payment of around US$875. But the same mortgage at last week's average rate would cost US$1,025 a month.
The difference adds up to US$150 more each month -- or US$54,000 over the lifetime of a 30-year loan. The monthly figures don't include taxes, insurance or initial down payments.
Potential buyers appear to have noticed that financing a home purchase has become more expensive. The number of Americans applying for mortgages to buy homes has plummeted 16 per cent since the end of April. And builders began work on the fewest single-family homes in eight months in July.
Still, mortgage rates remain low by historical standards. The same US$200,000 loan would cost a buyer US$1,330 a month at a seven per cent rate, the average since 1985.
Most economists expect the housing recovery will continue, albeit at a slower pace.
IMF's Lagarde urges caution over withdrawing stimulus
The head of the International Monetary Fund has warned central banks not to end their stimulus measures too soon.
Christine Lagarde said stimulus policies were still needed in some regions, especially Europe and Japan.
With signs that the global economy is improving, there has been much debate about when supportive policies should be wound down.
But, in a speech in the US, Ms Lagarde said she did not suggest a "rush to the exit" as some economies remain fragile.
The US Federal Reserve has signalled it may slow down its huge monthly bond buying programme, a suggestion that has hit stock markets and currencies around the world.
But Ms Lagarde said stimulative measures had been successful and were still necessary in key economies.
Any withdrawal should be determined by the strength of individual economies, she said.
"Unconventional monetary policy is still needed in all places it is being used, albeit longer for some than for others,'' Ms Lagarde said in her speech to a conference in Jackson Hole, Wyoming.
She said finance officials should prepare contingency plans in case market turbulence worsened.
Support being provided by major central banks is buying time for nations to implement key economic reforms.
"Push ahead with deeper reforms to lay the foundation for durable and lasting growth,'' Ms Lagarde said. "Do not waste the space provided by unconventional monetary policies.''
German budget surplus jumps in first half of year
Official figures show Germany's budget surplus rose to 0.6% of gross domestic product (GDP) in the first half of the year, boosted by higher tax income.
The government pulled in 321.4bn euros in taxes, 3.8% more than a year ago thanks to its steady employment rate.
The German Federal Statistical Office, Destatis, said the surplus was 8.5bn euros (£7.3bn; $11.3bn) in the period between January and June.
The figure was higher than the surplus for the same period a year ago.
For the whole of last year, Germany's budget surplus was 0.2% of GDP.
Budget surpluses are rare among European countries. Many have deficits of more than 3% of GDP, despite an European Union limit of that level.
In a statement, Destatis said: "The budgets of central government, state governments, local government and social security funds benefited from a generally good employment situation and a stable economic development in the first half of 2013 compared with other European countries."
The agency also confirmed a preliminary estimate of German GDP of 0.7% growth in the second quarter, giving an annual growth rate of 0.9%.
It said this was partly thanks to "weather-related catch-up effects following the unusually long and cold winter".
Johannes Gareis, an economist at Natixis, said he was expecting more modest expansion in the second half of 2013.
"For the rest of this year, we expect the German economy to continue to grow, albeit at a slower rate," he said.
But others were more optimistic.
Holger Sandte, an economist at Nordea, said: "The composition of the growth is very good. It is being driven more strongly from within, which is good for Germany and the eurozone.
"It is also positive that firms are investing more in equipment and are not so hesitant anymore."
German News Report says US Spied on United Nations
A leading German news magazine says the U.S. National Security Agency, NSA, has eavesdropped on the United Nations, penetrating the world body's internal video conference system to decode data.
Der Spiegel, in a report Sunday, linked its latest U.S. spy claim to secret files released by fugitive former U.S. intelligence contractor Edward Snowden. The report did not say when the magazine acquired the information, or whether it came directly from Snowden. It alleges the spying took place in mid-2012.
The report quotes an NSA document in which the writer boasts of having gained access to the U.N.'s internal video teleconferencing. Der Spiegel says that within the next three weeks, the number of decoded U.N. documents rose from 12 to 458.
The magazine also quotes NSA documents saying the presence of eavesdropping devices in embassies and consulates should be kept secret "at all costs" to avoid "causing serious damage" with the affected countries.
There was no immediate U.S. comment on the Der Spiegel report.
Der Spiegel also says the documents show the NSA at one point discovered Chinese intelligence services spying on the United Nations.
In late June, the magazine touched off controversy when it reported the NSA had placed listening devices inside European Union offices in Washington, Brussels and the United Nations.
That report said the NSA also infiltrated EU computers to monitor telephone conversations, e-mails and other documents.
The revelations prompted telephone talks between President Barack Obama and German Chancellor Angela Merkel and an emergency meeting of high-level U.S. and German security officials. French President Francois Hollande and EU Parliament President Martin Schulz also were critical.
Former NSA contractor Snowden fled the United States in June, and then provided troves of classified material about NSA surveillance practices to U.S. and foreign media, including Der Spiegel. He currently resides in Russia, which early this month granted him temporary asylum.
He faces U.S. federal charges of espionage, and the theft and conversion of government property.
Closing Arguments to Begin in China's Bo Xilai Trial
Closing arguments are expected Monday in the sensational corruption trial of disgraced Chinese politician and former Politburo Bo Xilai.
Bo is accused of taking bribes from a wealthy businessman, embezzlement, and abuse of power.
In his final day of testimony Sunday, Bo called his former top aide, ex-Chongqing police chief Wang Lijun, a liar. Wang had told the court that Bo tried to cover up his wife's involvement in the 2011 murder of a British businessman.
Bo said his wife is "insane" and her testimony "laughable." He admitted making mistakes, but denied any criminal activities.
Chinese Communist leaders removed Bo as party secretary of Chongqing last year and threw him out of the Politburo when Wang accused him of involvement in the murder. Bo is also charged with stealing $800,000 in government money set aside for a construction project.
Prosecutors say British businessman Briton Neil Heywood was killed over a financial dispute with Bo's wife, who was convicted of the murder last year and given a suspended death sentence. She will likely spend the rest of her life in prison.
The trial in the eastern city of Jinan is unusual for China. It is closed to Western media, but courtroom transcripts are being posted on social media. Chinese observers say China's top political leaders have already decided that Bo is guilty and he will get a long prison term.
Car Bombings, Shootings Kill 46 in Iraq
Sectarian violence struck Iraq Sunday with car bombings and shootings leaving at least 46 people dead and more than 100 wounded.
The city of Baqouba was one of the hardest-hit areas. Car bombs blew up in a residential neighborhood and at a wedding.
Bombs also caused casualities in and around Baghdad, killing about 16 people.
Elsewhere, militants ambushed a carload of Iraqi soldiers, killing five.
No one has claimed responsibility for Sunday's attacks. But tension between Iraq's minority Sunnis and the ruling Shi'ites has been simmering since police cracked down on Sunni protesters in April.
The Sunnis accuse the government of marginalizing them politically and ignoring their demands.
United Nations officials say the violence has killed thousands and fear Iraq could be heading toward civil war.
Egyptian Courts Postpone Cases Against Mubarak, Brotherhood Figures
Egyptian courts have held hearings in separate cases against deposed former President Hosni Mubarak and leaders of the Muslim Brotherhood, his longtime political foe.
In both of Sunday's hearings, judges adjourned the cases citing procedural reasons.
Mr. Mubarak appeared in one Cairo court looking relaxed, three days after authorities released the 85-year-old from prison to house arrest at a military hospital near the capital.
The longtime former president, ousted in a 2011 popular uprising is on trial for complicity in the killings of hundreds of protesters in the uprising. He was convicted and sentenced to life in prison last year, but a higher court ordered a retrial on appeal.
The judge postponed the proceedings to September 14.
In the day's other hearing, the judge quickly adjourned the case against six Muslim Brotherhood figures including top leader Mohamed Badie and two of his deputies, after none of them appeared in court. Authorities declined to transport Badie and his aides to the court citing security risks.
Mugabe Threatens Foreign-Owned Firms Over Sanctions
Zimbabwe President Robert Mugabe has threatened to take retaliatory actions against foreign owned companies in response to Western sanctions against his rule.
During a speech at a funeral Sunday, Mr. Mugabe said the United States and Britain should not continue their harassment of his government.
The 89-year-old leader warned that although British and American companies have been treated well, their will come a time when Zimbabwe says "tit-for-tat, you hit me I hit you".
Mr. Mugabe has rejected allegations of irregularities over last month's general election that extended his 33-year rule.
He has vowed to continue with controversial plans to force foreign companies to cede control to black Zimbabweans.