Algeria Says Militants Captured, More Bodies Found at Gas Complex
Algerian security officials say a search of a desert gas complex raided by Islamists last week has led to the capture of several militants and the discovery of 25 more bodies, indicating the four-day hostage crisis was much deadlier than first thought.
The officials said Algerian special forces detained five militants at the complex of In Amenas in eastern Algeria on Sunday. They said the 25 bodies also discovered at the site likely included hostages who were among the hundreds of Algerians and foreigners working at the facility when the Islamists seized it on Wednesday.
Algerian security forces killed most of the hostage takers in an assault on Saturday. Algeria's state news agency said the militants executed seven hostages during that operation, while Algerian troops killed 11 of the kidnappers. In an earlier report on Saturday, the Algerian government put the official death toll of the siege at 23 hostages and 32 militants, but said the figures were expected to rise.
In a video released Sunday on an Islamist website, militant leader Mokhtar Belmokhtar claimed responsibility for the attack on the gas complex in the name of al-Qaida, saying 40 militants from Muslim and Western nations carried out the raid.
He said his group is ready to “negotiate” with the West if it stops what he called its “bombing of Mali's people” – a reference to French air and ground strikes against al-Qaida-linked rebels in the West African state, which borders Algeria.
Western powers backed the Algerian government's military response to the hostage crisis and its refusal to negotiate with the perpetrators.
British Prime Minister David Cameron said Sunday that responsibility for the killings “lies squarely” with what he called the “terrorists who launched this vicious and cowardly attack.” French President Francois Hollande welcomed what he described as Algeria's “most appropriate” response to “coldly determined terrorists.”
Algerian Communications Minister Mohamed Said said the Islamist assailants came from six nations. He said they had laid mines around the gas complex and security forces were trying to clear them.
Algeria has said an initial rescue operation at the facility freed 107 foreigners and 685 Algerians on Thursday. The foreign hostages included nationals of the United States, Austria, Belgium, Britain, Colombia, France, Japan, Malaysia, Norway, the Philippines and Romania. The complex is jointly run by Algerian, British and Norwegian firms.
British Prime Minister Cameron said three British hostages were confirmed dead, and another three were believed to have been killed. U.S. officials have confirmed the death of one American at the site.
The Japanese government said 10 of its citizens were unaccounted for at the site. It sent Japanese vice foreign minister Minuro Kiuchi to In Amenas on Sunday to find out what happened to them.
The U.S. State Department issued a travel advisory to Americans in Algeria, warning of credible threats of additional kidnappings attempts against Western nationals.
Rebels Accuse Burma Army of Ignoring Cease-Fire Order
Ethnic Kachin rebels in northern Burma say government troops are ignoring a cease-fire order that was supposed to go into effect Saturday.
President Thein Sein issued the order Friday to troops in northeastern Kachin state near the border with China. However, the rebel Kachin Independence Army said Sunday that attacks involving artillery and troops are continuing.
The fighting has marred optimism about Burma's political reforms, as it emerges from decades of military dictatorship.
Thein Sein urged international donor nations on Saturday to help in the development of the country's battered economy and in improving the living standards of its impoverished population. He assured them that the government was serious about ending armed ethnic conflicts.
3 Killed in Yemen Drone Strike
Officials in central Yemen say a drone strike has killed at least three militants.
Authorities said Sunday missiles fired from the unmanned aircraft successfully targeted a car, killing the suspected members of al-Qaida in the Arabian Peninsula.
One witness said the car was engulfed in flames.
Authorities in Yemen reported dozens of apparent U.S. drone strikes in 2012.
U.S.-backed Yemeni government forces have been fighting al-Qaida militants in the country for years.
Al-Qaida took control of parts of southern Yemen in 2011 during an uprising that ousted president Ali Abdullah Saleh.
Suspected militants have carried out suicide bombings and other attacks targeting Yemeni officials.
Fitch warns of risk to UK's AAA credit rating
The UK continues to risk losing its top AAA credit rating if it does not reduce its debt, a senior figure at Fitch Ratings has told the BBC.
David Riley reiterated that Fitch was unhappy that the chancellor said in the Autumn Statement that the Treasury would miss its 2015-16 target to start cutting the level of net debt.
Mr Riley said this had weakened the Treasury's "credibility".
The Treasury was not immediately available for comment.
Fitch has had the UK's AAA rating on "negative" outlook since March 2012, meaning that it is warning it may cut it.
Mr Riley, managing director of Fitch's global sovereigns division, told BBC Radio 4's World At One programme: "One of the factors that has been driving our negative outlook on the UK's AAA rating - and therefore poses a risk to the UK's AAA status - is the fact we have been consistently increasing our projection in terms of the level of government debt, and also pushing out the date and year when the debt will stop rising and start falling."
The UK's net sovereign debt was the equivalent of 68% of the country's annual economic output, or GDP, at the end of last year.
Mr Riley warned that if this was to rise to 100%, "in our view that is not really consistent with the UK retaining a AAA rating".
T&T economy has improved
Central Bank Governor Jwala Rambarran remained mum yesterday about whether Government’s declining approval ratings could affect economic confidence, but he was heartened to see a positive public perception that the local economy has improved.
Speaking at the Bank’s release of the Financial Stability Report (FSR) for December 2012, Rambarran said:
“I have no comments to make here regarding the performance of the Government, but I did note that, yes, the perception of the general public is that economic confidence has increased and the economy has improved. That is a significant improvement and I think that the more good or encouraging news that will filter into the course of this year, the perception will be boosted and that helps to bolster economic confidence."
Rambarran was referring to the Express poll, conducted by Market Facts and Opinion (MFO), that showed the population was unhappy with key aspects of the Government’s performance, including the Section 34 fiasco. Prime Minister Kamla Persad-Bissessar’s approval rating also took a hit, sliding from 54 per cent in 2011 to 38 per cent in 2012.
Regarding the economy, the poll found that almost three in ten saw an improvement—up from two in ten in 2011.
Their optimism seemed to be supported by the latest Central Bank data, which shows 1.5 per cent economic growth for the third quarter of 2012—a vast improvement over the 3.6 per cent decline in the second quarter.
Giving a preview of the Bank’s Economic Bulletin due for release at the end of the month, Dr Alvin Hilaire, chief economist and director of research at the Bank, said these third quarter results were “a glimmer of hope”, especially after several quarters of contraction in the energy sector.
The growth was not pervasive, he said, but increases in natural gas output boosted growth in the sector by 0.5 per cent. He added there were some weaknesses in oil production because of maturing oilfields and petrochemicals production was also slipping.
The energy sector had declined by 7.3 per cent in the second quarter because of ongoing maintenance work by several producers. On the non-energy side, Hilaire said there was about 2.1 per cent growth, with some growth activity seen in the construction sector.
The Bank and Rambarran maintained their “cautiously optimistic” outlook of 2.5 per cent growth for 2013.
Despite these positives, the FSR showed a slowdown in banks extending credit to businesses.
Private sector credit had increased by 4.7 per cent up to September 2012; business credit slowed to 1.6 per cent, compared to 5.0 per cent a year earlier.
“The commercial banking sector performed creditably despite prevailing economic conditions; although the system remained well-capitalised and highly liquid, overall profitability has been affected by the low interest-rate environment,” the report said.
“Weak growth domestic-wise–and in the Caribbean and internationally–has psychologically fed into the minds, I believe, of individuals and the private sector where the low confidence continues to resonate. How do we build back and regain confidence? Sometimes it is similar to ice melting–all it takes is really one step. There are a number of actions that have taken place over the last year and that will give the economy a boost, for example, the launch of the CLICO Investment Fund, which I think has put a lot of anxiety behind us,” Rambarran said.
Other highlights of the report include:
The non-banking sector has been more seriously affected by the slower pace of economic activity, with profitability dampened by the low interest rate environment;
Life insurance companies continued to exhibit positive performance in 2012, with the liability structure of the industry shifting over time towards more non-traditional business. Wealth-management products now accounted for 53 per cent of the industry, while ordinary life insurance fell to 34.4 per cent;
In the non-life sector, 2012 was underpinned by higher premium income from the property business, while motor vehicle business remained tepid. Foreign-used car sales expanded by 96.5 per cent, and the lower premiums paid for these cheaper vehicles appeared to have impacted the amount of premiums collected.
“The economy has shown a tremendous resilience in the face of the global fall-out and you have also seen our financial system remaining very resilient in the face of a harsher domestic environment. When you start to add some of those positives, there is enough to suggest our prospects are pretty favourable as we move forward for the rest of the year,” Rambarran said.
Germany's economic growth slows sharply in 2012
The German economy grew by 0.7% in 2012, a sharp slowdown on the previous year, preliminary figures show.
The figure was well below the 3% growth seen in 2011 and suggests the economy contracted in the fourth quarter.
"In 2012, the German economy proved to be resistant in a difficult economic environment and withstood the European recession," the federal statistics office Destatis said.
Some analysts believe the German economy will enter recession itself.
Destatis said economic activity "slowed down considerably" in the second half of the year, and particularly in the final quarter.
"The full-year growth figure [of 0.7%] implies a contraction of around half a percentage point in the fourth quarter," the office's top statistician Norbert Raeth said.
Last month, Germany's central bank, the Bundesbank, cut its growth forecast for this year to 0.4% and warned that the economy may have contracted in the final three months of 2012, and may do so again in first quarter of 2013.
The eurozone economy as a whole is already in recession, having contracted in both in the third and fourth quarters of last year.
Spending boost
For 2012 as a whole, Destatis said foreign trade was "very robust", with exports up 4.1% on 2011. Imports grew by 2.3%. The positive trade balance was "once again the main driving force for economic growth in Germany".
Household expenditure increased by 0.8%, while government spending was up 1%.
The figures also showed that while the service sector of the economy expanded, industry and construction contracted.
Destatis will publish official fourth-quarter growth figures on 14 February.
Apple suppliers' shares fall on report of cut in orders
Shares of Sharp and other suppliers of iPhone parts to Apple have fallen after reports of a cut in orders for the iPhone 5.
Apple has reduced orders by about 50% for its latest model, according to the Nikkei newspaper in Japan.
Sharp, which makes display panels for the device, slumped as much as 7% in Tokyo trade. Speaker-maker ACC Technologies fell 4.2% in Hong Kong.
Apple shares hit an 11-month low in New York on Monday after the report.
Apple has seen increased competition in the smartphone market in recent months.
South Korea's Samsung Electronics, which offers a wider variety of smartphones, recently overtook Apple as the world's largest smartphone maker by market share.
Some analysts have said that Apple will need to come out with a cheaper smartphone to target customers in emerging markets.
Platinum Producer to Cut 14,000 Jobs in South Africa
Mining giant Anglo American Platinum has announced plans to close four mine shafts in South Africa and cut up to 14,000 jobs.
The vast majority of the job cuts would be in the city of Rustenburg, where at least 46 people were killed in mine-related unrest last year.
In a statement Tuesday, the company, also known as Amplats, indicated the cuts are a result of slowing demand for platinum and said the operation of “unprofitable shafts” is not sustainable.
Amplats said it lost money in 2012 after posting profits the previous year.
The company said it would try to create jobs in other sectors to try to make up for the cuts.
According to the French News Agency, National Union of Mineworkers spokesman Lesiba Seshoka said the union was “shocked” by Amplats' proposed cuts and said the reductions would be a “disaster for the economy.”
Amplats and other mining firms were hit by a wave of strikes last year after police fired on striking workers at the Lonmin platinum mine near Rustenberg last August, killing 34 people. The incident was the single deadliest police-related incident in South Africa since the end of apartheid in 1994.
Pakistan Supreme Court orders arrest of PM Raja Pervez Ashraf
Pakistan's Supreme Court has ordered the arrest of PM Raja Pervez Ashraf and 15 others over corruption allegations, raising fears of a political crisis just months ahead of an election.
Mr Ashraf denies accepting bribes when approving power generation projects as minister for water and power in 2010.
Analysts say that the move is unlikely to lead to his immediate removal.
It comes as a populist cleric led thousands of protesters in Islamabad, demanding the government resign.
Television images showed demonstrators, led by Tahirul Qadri, celebrating and triumphantly applauding as news broke of the court's order.
The BBC's M Ilyas Khan in Islamabad says it may just be a coincidence - but to many observers the timing of the move bolsters allegations that the cleric is backed by elements of the judiciary and military.
In recent years Pakistan's government, judiciary and powerful military have been at loggerheads.
Mr Ashraf's predecessor, Yousuf Raza Gilani, was forced out as prime minister last June after the Supreme Court convicted him of contempt for failing to pursue a corruption case against the president.
Mr Ashraf was appointed in his place, but many predicted that his tenure would also be troubled.
The Supreme Court order says the prime minister and the others should be arrested and produced before court within 24 hours. But correspondents say the prime minister's lawyers may find ways of delaying any appearance.
Dogged by controversy
There was no immediate statement from the government following the arrest order. President Asif Zardari was holding a meeting of leading figures in the ruling Pakistan People's Party (PPP) in Karachi, according to state broadcaster PTV.
Mr Ashraf is set to lead the party into general elections due in May. Most observers say they expect the balance of power in the forthcoming parliamentary polls to broadly stay the same unless turnout is high, which could allow minor parties to translate popular support into seats.
He has long been a senior figure in the PPP, and has twice been a minister in the government which has been in power since 2008.
But it was his tenure as minister for water and power which is dogged by controversy.
The government needed to generate more power to deal with electricity shortages, but there were accusations of corruption from the opposition about the so-called "Rental Power Projects" devised to solve the crisis.
Critics labelled him "Raja Rental" because of the kickbacks he is alleged to have taken - he has consistently denied these claims and left the water and power post in 2011.
But many analysts say this case could simply be a continuation of the long feud between the PPP-led government and the judiciary.
And there have also been chaotic scenes in Islamabad after a long-planned march from Lahore to the capital by Dr Qadri culminated in a mass rally.
Clashes briefly erupted on Tuesday before Dr Qadri addressed his thousands of supporters camped near parliament, vowing to continue his mass protest indefinitely.
The cleric has said he wants the military and judiciary to be involved in installing a caretaker government to oversee the forthcoming elections.
But the government has accused him of trying to postpone elections due in May.
--BBC
Suicide Bomber Kills Iraqi Sunni MP
Iraqi officials say a Sunni lawmaker has been killed in a suicide bombing in western Anbar province.
Ifan al-Issawi died Tuesday when a suicide bomber detonated explosives in the restive city of Fallujah, west of Baghdad.
The attack comes amid rising anti-government protests, mostly by Sunnis, that have rocked Iraq since December.
Many Sunnis are calling for Shi'ite Prime Minister Nouri al-Maliki to step down. They also want the release of detainees they say are being held without trial – and the suspension of an anti-terrorism law they say targets Sunnis unfairly.
Mr. Maliki's Shi'ite supporters have also taken to the streets in what is becoming escalating sectarian strife.
The protests began in Sunni-dominated Anbar after the army arrested the bodyguards of Sunni Finance Minister Rafa al-Issawi.
He is the most high profile Sunni Cabinet member since Sunni Vice President Tariq al-Hashemi was dismissed from office, accused of running death squads. A death warrant has been issued against Hashemi in absentia. He says the charges are trumped up for political reasons.
Provincial elections are set to take place in April and analysts expect the unrest to continue until then.