As many as 200,000 of those cases are expected before the end of the year, with a peak before Christmas, Nigel Fisher, U.N. humanitarian coordinator in Haiti, said in an interview.
'When we were in the initial stages of planning, we had said there would be 200,000 cases over six months,' he said. 'Today the figures are 425,000 over six months, of which 200,000 before year's end, with a peak before Christmas.'
The predictions reflect the explosive nature of the cholera epidemic, which erupted in rural Haiti in October but has since spread to each of the country's 10 regions, as well as Port-au-Prince, where more than 1.3 million displaced earthquake survivors live in crowded camps.
Officially, the disease had sickened 66,593 people and killed 1,523 as of Monday, according to the Ministry of Health. But the real number of cases is likely much higher, health officials acknowledge, partly because the systems used to count the ill aren't capturing every nonhospitalized case.
Thursday, November 25, 2010
Tuesday, November 23, 2010
Federal authorities, intensifying an insider-trading investigation
Hedge-fund giants SAC Capital Advisors and Citadel Asset Management, big mutual-fund company Janus Capital Group Inc. and Wellington Management Co., one of the nation's biggest institutional-investment firms, have received subpoenas from the Manhattan U.S. Attorney's office seeking trading, communications and other data as part of a broad criminal investigation, according to people familiar with the matter.
The Federal Bureau of Investigation also recently questioned an executive at Primary Global Research LLC, a California company that provides 'expert-network' services to hedge funds and mutual funds, people familiar with the matter say.
Such expert-network firms set up meetings and arrange calls between traders seeking an investing edge and current and former managers from hundreds of companies. The FBI is seeking information about a Primary Global consultant and his hedge-fund clients, these people say.
Executives of Primary Global, based in Mountain View, Calif., didn't respond to requests for comment. Representatives of Wellington, Citadel and SAC, which is run by Steve Cohen, declined to comment. Janus said in a filing that it 'intends to cooperate fully with that inquiry,' which sought 'general information.' Janus shares fell 2.8% in Tuesday trading.
Subpoenas are requests for information and don't necessarily mean the recipients are suspected of wrongdoing.
The latest disclosures show that authorities are pursuing numerous strands in their three-year investigation. One focus is whether expert-network firms leaked inside information to hedge funds and others, according to people familiar with the matter. Another is whether independent consultants provided nonpublic information to investors, these people say.
SAC, Wellington, Janus and Citadel were among the clients of John Kinnucan, an analyst who recently was questioned by two FBI agents. The agents visited Mr. Kinnucan last month and accused him and his clients of trading on inside information, according to an email Mr. Kinnucan sent to about 20 clients. The FBI asked him to tape his calls with SAC, according to a person close to the situation. In his email, Mr. Kinnucan said he refused to tape any calls.
Still another strand of the probe is examining whether Goldman Sachs Group Inc. bankers leaked information about transactions, including health-care mergers, in ways that benefited certain investors, the people say. Goldman declined to comment.
On Oct. 26, the day after the FBI visited Mr. Kinnucan, agents visited a Primary Global vice president at his home, people familiar with the matter say.
FBI agent B.J. Kang, who was involved in last year's Galleon Group insider-trading case, asked most of the questions, which focused on an expert in the semiconductor industry who consulted for clients of Primary Global and several other expert-network firms, these people say.
The executive was asked about the firm's work with the expert, his pay and Primary Global guidelines regarding sharing proprietary, nonpublic information with clients, these people say. Mr. Kang declined to comment.
Primary Global's compliance policies, posted on its website, say experts 'are required to keep in confidence proprietary information acquired by them,' and must not 'breach any agreement with their employers' by working as consultants or sharing prohibited information.
One challenge for expert-network firms is policing their consultants. Such firms hire current or former company employees, as well as doctors and other specialists, to share information with funds making investment decisions.
The Federal Bureau of Investigation also recently questioned an executive at Primary Global Research LLC, a California company that provides 'expert-network' services to hedge funds and mutual funds, people familiar with the matter say.
Such expert-network firms set up meetings and arrange calls between traders seeking an investing edge and current and former managers from hundreds of companies. The FBI is seeking information about a Primary Global consultant and his hedge-fund clients, these people say.
Executives of Primary Global, based in Mountain View, Calif., didn't respond to requests for comment. Representatives of Wellington, Citadel and SAC, which is run by Steve Cohen, declined to comment. Janus said in a filing that it 'intends to cooperate fully with that inquiry,' which sought 'general information.' Janus shares fell 2.8% in Tuesday trading.
Subpoenas are requests for information and don't necessarily mean the recipients are suspected of wrongdoing.
The latest disclosures show that authorities are pursuing numerous strands in their three-year investigation. One focus is whether expert-network firms leaked inside information to hedge funds and others, according to people familiar with the matter. Another is whether independent consultants provided nonpublic information to investors, these people say.
SAC, Wellington, Janus and Citadel were among the clients of John Kinnucan, an analyst who recently was questioned by two FBI agents. The agents visited Mr. Kinnucan last month and accused him and his clients of trading on inside information, according to an email Mr. Kinnucan sent to about 20 clients. The FBI asked him to tape his calls with SAC, according to a person close to the situation. In his email, Mr. Kinnucan said he refused to tape any calls.
Still another strand of the probe is examining whether Goldman Sachs Group Inc. bankers leaked information about transactions, including health-care mergers, in ways that benefited certain investors, the people say. Goldman declined to comment.
On Oct. 26, the day after the FBI visited Mr. Kinnucan, agents visited a Primary Global vice president at his home, people familiar with the matter say.
FBI agent B.J. Kang, who was involved in last year's Galleon Group insider-trading case, asked most of the questions, which focused on an expert in the semiconductor industry who consulted for clients of Primary Global and several other expert-network firms, these people say.
The executive was asked about the firm's work with the expert, his pay and Primary Global guidelines regarding sharing proprietary, nonpublic information with clients, these people say. Mr. Kang declined to comment.
Primary Global's compliance policies, posted on its website, say experts 'are required to keep in confidence proprietary information acquired by them,' and must not 'breach any agreement with their employers' by working as consultants or sharing prohibited information.
One challenge for expert-network firms is policing their consultants. Such firms hire current or former company employees, as well as doctors and other specialists, to share information with funds making investment decisions.
Hong Kong Exchanges & Clearing Ltd. said it would extend the city's stock market trading session to five hours a day starting March 2011
From March 7, 2011, stock market trading will begin at 9:30 a.m. and end at 4 p.m., with a one-and-a-half-hour lunch break between noon and 1:30 p.m., HK Exchanges Chairman Ronald Arculli said Monday. From March 5, 2012, the lunch break will be shortened by 30 minutes, leaving market participants with a one-hour break between noon and 1 p.m. and an extra half hour for trading.
At present, stock trading in Hong Kong begins at 10 a.m. and ends at 4 p.m., with a two-hour lunch break between 12:30 p.m. and 2:30 p.m. It is the shortest trading session of any major global exchange.
One of the key reasons for the change is to better align Hong Kong's stock trading hours with those of mainland China, where the market opens earlier and the lunch break is shorter. HK Exchanges has said increasing the overlap is crucial because more than 70% of trading volume on the local stock market is in mainland China-related securities and the number of cross-listed products is likely to continue increasing, given the city's role as China's offshore yuan center.
Morning trading on the Shanghai and Shenzhen exchanges starts at 9:30 a.m. and finishes at 11:30 a.m. Afternoon trading starts at 1 p.m. on both exchanges, and ends at 3 p.m. in Shanghai and 2:57 p.m. in Shenzhen.
HK Exchanges also believes longer trading hours will strengthen the Hong Kong stock market's competitiveness in the region.
The move comes as Singapore Exchange Ltd. attempts an US$8.3 billion takeover of Australia's ASX Ltd., reminding Hong Kong's monopoly exchange operator that it faces the prospect of increasing competition despite the city's privileged position as the gateway to China.
Hong Kong brokers, instrumental in shutting down a proposal nearly a decade ago to extend the day to as long as 11 hours, have long opposed lengthening trading hours in the city.
At present, stock trading in Hong Kong begins at 10 a.m. and ends at 4 p.m., with a two-hour lunch break between 12:30 p.m. and 2:30 p.m. It is the shortest trading session of any major global exchange.
One of the key reasons for the change is to better align Hong Kong's stock trading hours with those of mainland China, where the market opens earlier and the lunch break is shorter. HK Exchanges has said increasing the overlap is crucial because more than 70% of trading volume on the local stock market is in mainland China-related securities and the number of cross-listed products is likely to continue increasing, given the city's role as China's offshore yuan center.
Morning trading on the Shanghai and Shenzhen exchanges starts at 9:30 a.m. and finishes at 11:30 a.m. Afternoon trading starts at 1 p.m. on both exchanges, and ends at 3 p.m. in Shanghai and 2:57 p.m. in Shenzhen.
HK Exchanges also believes longer trading hours will strengthen the Hong Kong stock market's competitiveness in the region.
The move comes as Singapore Exchange Ltd. attempts an US$8.3 billion takeover of Australia's ASX Ltd., reminding Hong Kong's monopoly exchange operator that it faces the prospect of increasing competition despite the city's privileged position as the gateway to China.
Hong Kong brokers, instrumental in shutting down a proposal nearly a decade ago to extend the day to as long as 11 hours, have long opposed lengthening trading hours in the city.
Monday, November 22, 2010
Water flooded a small Chinese coal mine Sunday
It was the latest mining accident for China, which has the world's deadliest coal mines. Forty-one workers were underground at the Batian mine in the southwestern province of Sichuan at the time, said an official surnamed Xie with the provincial work-safety bureau.
He said 13 workers escaped and rescue work was continuing for the 28 missing. 'We still have hope of finding them alive,' Mr. Xie said. It wasn't clear what caused the flooding. Mr. Xie said pumps to remove the water were on the way to the mine in Neijiang city. An estimated 4,000 cubic meters of water was in the mining pit, he said.
The official Xinhua News Agency said Batian had stopped production and was being upgraded to increase its annual capacity from 50,000 tons to 60,000 tons. It said workers had been underground Sunday for safety work.
China depends on coal for 70% of its energy production. The country's mines are the deadliest in the world, with more than 2,600 people killed in coal mine accidents in 2009 alone. However, that was sharply lower than the 7,000 deaths in 2003, even though coal output has more than doubled since then.
The country's leaders have been making a high-profile push to improve mine safety. Premier Wen Jiabao earlier this year ordered mining bosses into the shafts and pits with their workers or else risk severe punishment.
Mining fatalities have decreased in recent years as China closed many illegal mines or absorbed them into state-owned companies, but deaths increased in the first half of this year.
Mr. Xie said the Batian mine is small and privately owned. It is about 150 kilometers southeast of the provincial capital, Chengdu. The mine doesn't have a registered telephone number and couldn't be contacted Sunday.
Xinhua quoted Lin Shucheng, chief of the provincial work-safety bureau, as saying the mine's operation was legal. 'Its business license and production permits are valid,' he said.
The Chinese public is sensitive to the issue of mining safety, and some criticized the country's response to mining accidents after the rescue of 33 trapped miners in Chile last month.
China had its own amazing mine rescue earlier this year, when 115 workers were pulled from a flooded mine in the northern province of Shanxi after more than a week underground. The miners survived by eating sawdust, tree bark, paper and even coal. But experts say more needs to be done, particularly in preventing accidents from occurring.
He said 13 workers escaped and rescue work was continuing for the 28 missing. 'We still have hope of finding them alive,' Mr. Xie said. It wasn't clear what caused the flooding. Mr. Xie said pumps to remove the water were on the way to the mine in Neijiang city. An estimated 4,000 cubic meters of water was in the mining pit, he said.
The official Xinhua News Agency said Batian had stopped production and was being upgraded to increase its annual capacity from 50,000 tons to 60,000 tons. It said workers had been underground Sunday for safety work.
China depends on coal for 70% of its energy production. The country's mines are the deadliest in the world, with more than 2,600 people killed in coal mine accidents in 2009 alone. However, that was sharply lower than the 7,000 deaths in 2003, even though coal output has more than doubled since then.
The country's leaders have been making a high-profile push to improve mine safety. Premier Wen Jiabao earlier this year ordered mining bosses into the shafts and pits with their workers or else risk severe punishment.
Mining fatalities have decreased in recent years as China closed many illegal mines or absorbed them into state-owned companies, but deaths increased in the first half of this year.
Mr. Xie said the Batian mine is small and privately owned. It is about 150 kilometers southeast of the provincial capital, Chengdu. The mine doesn't have a registered telephone number and couldn't be contacted Sunday.
Xinhua quoted Lin Shucheng, chief of the provincial work-safety bureau, as saying the mine's operation was legal. 'Its business license and production permits are valid,' he said.
The Chinese public is sensitive to the issue of mining safety, and some criticized the country's response to mining accidents after the rescue of 33 trapped miners in Chile last month.
China had its own amazing mine rescue earlier this year, when 115 workers were pulled from a flooded mine in the northern province of Shanxi after more than a week underground. The miners survived by eating sawdust, tree bark, paper and even coal. But experts say more needs to be done, particularly in preventing accidents from occurring.
Saturday, November 20, 2010
Huawei Technologies must be wondering what it has to do to catch a break in the U.S. It's surely not alone
Flush with cash, Chinese companies have the potential to launch a wave of overseas acquisitions. Asian companies as a whole had cash balances of $228 billion by the end of June, up 60% from the end of 2008, Moody's says. Chinese and Hong Kong-based firms account for 45% of that total.
But Huawei's recent experiences in the U.S. point to how suspicions of Chinese companies' backgrounds and motives continue to stymie their overseas plans. The privately owned telecom equipment giant is in trouble with the Committee on Foreign Investment in the U.S., for not seeking approval for a $2 million acquisition of some staff and intellectual property from Californian startup 3Leaf Systems in May.
This is just the latest chapter in Huawei's difficult relationship with U.S. regulators. The company -- thought by some to have links to the Chinese military, something it denies -- saw its proposed acquisition of 3Com blocked in 2008 on national security grounds.
Other potential Chinese buyers are in a similar bind: State-owned giant China Mobile, holds the most cash of all, having grown its balance to $47 billion. Like Huawei, though, it faces some difficulties finding targets in countries that won't get the shivers about letting a Chinese company into their telecom sector.
Not all prominent Chinese firms encounter problems, it should be said. Alibaba.com has this year made two acquisitions in the U.S., for example. Others are changing their tactics. State-owned oil major Cnooc was famously blocked when it tried to buy Unocal in 2005: But it's back in the U.S., this time buying a non-controlling 33.3% stake in one of Chesapeake Energy's shale-oil and gas fields.
But Huawei's recent experiences in the U.S. point to how suspicions of Chinese companies' backgrounds and motives continue to stymie their overseas plans. The privately owned telecom equipment giant is in trouble with the Committee on Foreign Investment in the U.S., for not seeking approval for a $2 million acquisition of some staff and intellectual property from Californian startup 3Leaf Systems in May.
This is just the latest chapter in Huawei's difficult relationship with U.S. regulators. The company -- thought by some to have links to the Chinese military, something it denies -- saw its proposed acquisition of 3Com blocked in 2008 on national security grounds.
Other potential Chinese buyers are in a similar bind: State-owned giant China Mobile, holds the most cash of all, having grown its balance to $47 billion. Like Huawei, though, it faces some difficulties finding targets in countries that won't get the shivers about letting a Chinese company into their telecom sector.
Not all prominent Chinese firms encounter problems, it should be said. Alibaba.com has this year made two acquisitions in the U.S., for example. Others are changing their tactics. State-owned oil major Cnooc was famously blocked when it tried to buy Unocal in 2005: But it's back in the U.S., this time buying a non-controlling 33.3% stake in one of Chesapeake Energy's shale-oil and gas fields.
Friday, November 19, 2010
Hong Kong ceased to be a British colony more than a decade ago
The engagement ring ─ an oval blue sapphire surrounded by white diamonds, once worn by the late Princess Diana ─ may not set any trends for Asian buyers in the near term, however.
'Sapphire and diamond engagement rings are a classic English tradition, but the taste of Hong Kong when it comes to engagement rings is mainly American,' says Tayma Page Allies, the owner of Tayma Fine Jewellery in Hong Kong. And by American, she's referring to the diamond solitaire, which has been relentlessly pushed since the 1950s with the launch of De Beer's 'A Diamond is Forever' advertising campaign.
The recently wed Hong Kong actor Daniel Wu, for example, reportedly chose a 2.06-carat emerald-cut diamond engagement ring for his bride, model Lisa Selesner.
Nine out of 10 customers who walk through Ms. Allies store, a specialist in colored gemstones, ask to see diamond engagement rings. If a customer opts for a colored engagement ring, blue is not the most popular choice.
'In Asia, people prefer brighter colors like red rubies and green emeralds,' says Ms. Allies, who points out that most of the blue sapphires available in Asia are a dark indigo variety, and not the cornflower and denim blue sapphires that are widely carried in Europe.
Whether or not retailers in Asia may see a surge in sales, chances are Ms. Middleton's sapphire came by way of Southeast Asia, where historically, the majority of these gems have been mined. Two Bangkok-based jewelers, Lily Art and S.T. Diamond, say that most of their sapphires come from Sri Lanka. This may not be the case for long though.
Says Ms. Allies: 'Supplies of sapphires can change quickly. Recently, many of the Sri Lankan sapphire supplies are drying up because they are being over-mined, but a new mine is opening up in Madagascar.'
They may be less in demand in Asia, but you can't assume a sapphire ring will cost less than a diamond. Unlike diamonds ─ which typically are priced according to a list established by the Rapaport Diamond Report, a widely used industry publication ─ the prices of sapphire stones are not standardized. So a sapphire stone can sometimes cost more than a diamond of similar size.
'Sapphire and diamond engagement rings are a classic English tradition, but the taste of Hong Kong when it comes to engagement rings is mainly American,' says Tayma Page Allies, the owner of Tayma Fine Jewellery in Hong Kong. And by American, she's referring to the diamond solitaire, which has been relentlessly pushed since the 1950s with the launch of De Beer's 'A Diamond is Forever' advertising campaign.
The recently wed Hong Kong actor Daniel Wu, for example, reportedly chose a 2.06-carat emerald-cut diamond engagement ring for his bride, model Lisa Selesner.
Nine out of 10 customers who walk through Ms. Allies store, a specialist in colored gemstones, ask to see diamond engagement rings. If a customer opts for a colored engagement ring, blue is not the most popular choice.
'In Asia, people prefer brighter colors like red rubies and green emeralds,' says Ms. Allies, who points out that most of the blue sapphires available in Asia are a dark indigo variety, and not the cornflower and denim blue sapphires that are widely carried in Europe.
Whether or not retailers in Asia may see a surge in sales, chances are Ms. Middleton's sapphire came by way of Southeast Asia, where historically, the majority of these gems have been mined. Two Bangkok-based jewelers, Lily Art and S.T. Diamond, say that most of their sapphires come from Sri Lanka. This may not be the case for long though.
Says Ms. Allies: 'Supplies of sapphires can change quickly. Recently, many of the Sri Lankan sapphire supplies are drying up because they are being over-mined, but a new mine is opening up in Madagascar.'
They may be less in demand in Asia, but you can't assume a sapphire ring will cost less than a diamond. Unlike diamonds ─ which typically are priced according to a list established by the Rapaport Diamond Report, a widely used industry publication ─ the prices of sapphire stones are not standardized. So a sapphire stone can sometimes cost more than a diamond of similar size.
Wednesday, November 17, 2010
Warner Bros. is investigating how the first 36 minutes of the newest 'Harry Potter' film came to be posted on the Internet late Monday night
A spokesman for the studio, a unit of Time Warner Inc., declined to say whether it had yet figured out the source of the leak, but said an investigation was under way. The spokesman said the early release wasn't a promotional gambit.
The watermarked footage was made available for download on BitTorrent file-sharing sites such as IsoHunt.com and thePirateBay.org. Copies were still available Wednesday, though Warner Bros. said it was working to remove the illegal copies.
It's unclear if the leak will affect the performance of the film, the seventh installment in the 'Potter' franchise. The film series is the most lucrative in history, having surpassed both the 'James Bond' and 'Star Wars' series in 2007.
The previous six 'Potter' movies have taken in about $5.4 billion world-wide; Warner counts more than $1 billion in profit from them. The eighth and final 'Potter' installment will hit theaters next summer and will be in 3-D.
When an early version of Twentieth Century Fox's 'X-Men Origins: Wolverine' leaked about a month before the film's May 1 release last year, it may have diminished the audience's appetite for the film.
'Wolverine' went on to take in more than $373 million world-wide for Fox. That's considerably less than 2006's 'X-Men: The Last Stand,' which took in more than $450 million, or 2003's 'X2: X-Men United,' which took in more than $400 million. Fox is owned by News Corp., also the parent of The Wall Street Journal.
Warner Bros. held premieres for 'Harry Potter and the Deathly Hallows: Part I' in New York and London over the past week, but the studio spokesman said the footage wasn't stolen from those showings. The film has also been screened for critics and press, and the studio has already shipped prints to theaters.
The watermarked footage was made available for download on BitTorrent file-sharing sites such as IsoHunt.com and thePirateBay.org. Copies were still available Wednesday, though Warner Bros. said it was working to remove the illegal copies.
It's unclear if the leak will affect the performance of the film, the seventh installment in the 'Potter' franchise. The film series is the most lucrative in history, having surpassed both the 'James Bond' and 'Star Wars' series in 2007.
The previous six 'Potter' movies have taken in about $5.4 billion world-wide; Warner counts more than $1 billion in profit from them. The eighth and final 'Potter' installment will hit theaters next summer and will be in 3-D.
When an early version of Twentieth Century Fox's 'X-Men Origins: Wolverine' leaked about a month before the film's May 1 release last year, it may have diminished the audience's appetite for the film.
'Wolverine' went on to take in more than $373 million world-wide for Fox. That's considerably less than 2006's 'X-Men: The Last Stand,' which took in more than $450 million, or 2003's 'X2: X-Men United,' which took in more than $400 million. Fox is owned by News Corp., also the parent of The Wall Street Journal.
Warner Bros. held premieres for 'Harry Potter and the Deathly Hallows: Part I' in New York and London over the past week, but the studio spokesman said the footage wasn't stolen from those showings. The film has also been screened for critics and press, and the studio has already shipped prints to theaters.
Tuesday, November 16, 2010
Senior European officials laid the groundwork for a bailout of Ireland that could reach 100 billion euros
Several euro-zone countries urged Ireland to adopt an aid package, according to people familiar with the matter, and some pressed for the package to include loans from the U.K. alongside assistance from Europe and the International Monetary Fund. Britain is in the European Union but not the euro zone.
But at a finance ministers' meeting here, Ireland's Brian Lenihan repeated that his country wasn't ready to seek help despite a huge budget deficit and sky-high interest rates on its government debt. He said 'urgent talks' were necessary to calm 'serious market disturbances' that 'jeopardize not only Ireland, they threaten the euro zone.'
Markets fear Ireland's problems could spread the financial crisis into vulnerable members of the euro zone such as Portugal and Spain. Contagion of Spain, one of the continent's largest economies, would greatly strain Europe's rescue capacity and pose a severe threat to the common currency's survival.
EU President Herman Van Rompuy on Tuesday cast the Irish crisis as a moment of existential gravity. 'We all have to work together in order to survive with the euro zone, because if we don't survive with the euro zone, we will not survive with the European Union,' he said.
European stock markets tumbled Tuesday amid the concerns over Ireland, with the steepest declines coming toward the end of the trading session. London's FTSE 100 index recorded its sharpest one-day point decline since late June, falling 2.4%, while in France and Germany the stock indexes fell 2.6% and 1.9% respectively. The commotion in Europe was one factor tugging down stocks in the U.S., where the Dow Jones Industrial Average dropped 1.6%.
Treasury Secretary Timothy Geithner said Europe learned painful lessons from its slow response to the crisis that convulsed Greece earlier this year. 'The lessons of that experience . . . is you want to do this quickly and decisively and not wait,' he said, though he declined to offer specific views about Ireland's predicament.
The EU can't render help unless Ireland asks for it, and negotiations looked set to continue into a second day of meetings Wednesday. Among the sticking points: Ireland is reluctant to surrender its own economic planning to the IMF, while several countries are making strict IMF oversight a condition of their help.
Europe left little doubt, though, that it is ready to jump in. At a news conference late Tuesday after the meeting broke up, EU economy commissioner Olli Rehn spoke of 'intensifying preparations for a potential program.' Klaus Regling, chief of the new euro-zone bailout agency, said he could deliver 'substantial' funds 'within days.'
A team of experts from the IMF, the European Central Bank and the European Commission will travel to Dublin this week to delve into details of its banking system. Mr. Lenihan said 'intensive, focused talks will now take place.'
Mr. Lenihan and other ministers said that the focus of concern was not Ireland's budget deficits, but its banks.
There is wide concern in Brussels and in many European capitals that Ireland's troubles -- if left unchecked -- could further unnerve already-skittish bond markets. Because the 16 euro-zone countries, by and large, persistently run deficits, they rely on financial markets to fill those budget gaps.
After the euro-zone bailout of Greece this spring, the currency union established a bailout mechanism made up of 60 billion euros of loans financed by the EU's own budget, 440 billion euros worth of loan guarantees from other euro-zone countries and up to 250 billion euros from the IMF.
The possible inclusion of the U.K reflects the country's close relationship with Ireland. Though outside the euro zone, the U.K. is a major Irish trading partner, and its banks have considerable exposure to Ireland's financial system. In effect, some bailout money to shore up Irish banks would eventually end up flowing to their British creditors.
The U.K. has had no official request for loans from euro-zone members, a person familiar with the matter said.
In Brussels, the ministers are considering various aid options. One would include separate packages earmarked for Ireland's banks and its public finances. Another possibility is a smaller sum aimed at stabilizing the banking sector alone.
A package of European aid for Irish banks could be worth 45 billion euros to 50 billion euros, while a broader package designed to restore confidence in Ireland's public finances as well could range from 80 billion euros to 100 billion euros, an official familiar with the negotiations said.
Irish banks made disastrous property loans during a decade-long boom, and they've suffered catastrophic losses in the bust. Ireland has said it will pump 50 billion euros into its banks, and it is spending billions to buy bad assets.
In any deal, the IMF would likely contribute half as much aid as the EU and U.K. combined. No further decisions on the breakdown of aid contributions have been made, the official said, as ministers debate whether they should act simply to shore up the banking sector or should make a bolder gesture of support for Ireland's finances.
In Ireland, political leaders who insist they don't need a bailout are also angling to avoid the stigma of an IMF-directed economic program, if one comes. IMF loans typically come with policy prescriptions and force governments to relinquish a degree of sovereignty to the Washington-based institution.
It appeared unlikely Tuesday that Ireland could dodge the IMF. Before the finance ministers' meeting, Finnish government officials made clear that they felt Ireland would have to submit to IMF oversight to better ensure that any loan is repaid.
Arriving at the meeting in Brussels, the Dutch finance minister drew a line in the sand. 'The IMF should be involved, otherwise we will not give any support,' Jan Kees de Jager said.
The U.K. drew criticism from some EU countries this spring for refusing to take part in the euro zone's main bailout fund, known as the European Financial Stability Facility.
The U.K.'s obligations to the IMF and European Commission mean that it would likely be forced to bear part of the burden for an Irish rescue even without making bilateral loans. The U.K. contributes around 5% of the IMF's funds and around 13.6% of the European Commission's lending facility.
But at a finance ministers' meeting here, Ireland's Brian Lenihan repeated that his country wasn't ready to seek help despite a huge budget deficit and sky-high interest rates on its government debt. He said 'urgent talks' were necessary to calm 'serious market disturbances' that 'jeopardize not only Ireland, they threaten the euro zone.'
Markets fear Ireland's problems could spread the financial crisis into vulnerable members of the euro zone such as Portugal and Spain. Contagion of Spain, one of the continent's largest economies, would greatly strain Europe's rescue capacity and pose a severe threat to the common currency's survival.
EU President Herman Van Rompuy on Tuesday cast the Irish crisis as a moment of existential gravity. 'We all have to work together in order to survive with the euro zone, because if we don't survive with the euro zone, we will not survive with the European Union,' he said.
European stock markets tumbled Tuesday amid the concerns over Ireland, with the steepest declines coming toward the end of the trading session. London's FTSE 100 index recorded its sharpest one-day point decline since late June, falling 2.4%, while in France and Germany the stock indexes fell 2.6% and 1.9% respectively. The commotion in Europe was one factor tugging down stocks in the U.S., where the Dow Jones Industrial Average dropped 1.6%.
Treasury Secretary Timothy Geithner said Europe learned painful lessons from its slow response to the crisis that convulsed Greece earlier this year. 'The lessons of that experience . . . is you want to do this quickly and decisively and not wait,' he said, though he declined to offer specific views about Ireland's predicament.
The EU can't render help unless Ireland asks for it, and negotiations looked set to continue into a second day of meetings Wednesday. Among the sticking points: Ireland is reluctant to surrender its own economic planning to the IMF, while several countries are making strict IMF oversight a condition of their help.
Europe left little doubt, though, that it is ready to jump in. At a news conference late Tuesday after the meeting broke up, EU economy commissioner Olli Rehn spoke of 'intensifying preparations for a potential program.' Klaus Regling, chief of the new euro-zone bailout agency, said he could deliver 'substantial' funds 'within days.'
A team of experts from the IMF, the European Central Bank and the European Commission will travel to Dublin this week to delve into details of its banking system. Mr. Lenihan said 'intensive, focused talks will now take place.'
Mr. Lenihan and other ministers said that the focus of concern was not Ireland's budget deficits, but its banks.
There is wide concern in Brussels and in many European capitals that Ireland's troubles -- if left unchecked -- could further unnerve already-skittish bond markets. Because the 16 euro-zone countries, by and large, persistently run deficits, they rely on financial markets to fill those budget gaps.
After the euro-zone bailout of Greece this spring, the currency union established a bailout mechanism made up of 60 billion euros of loans financed by the EU's own budget, 440 billion euros worth of loan guarantees from other euro-zone countries and up to 250 billion euros from the IMF.
The possible inclusion of the U.K reflects the country's close relationship with Ireland. Though outside the euro zone, the U.K. is a major Irish trading partner, and its banks have considerable exposure to Ireland's financial system. In effect, some bailout money to shore up Irish banks would eventually end up flowing to their British creditors.
The U.K. has had no official request for loans from euro-zone members, a person familiar with the matter said.
In Brussels, the ministers are considering various aid options. One would include separate packages earmarked for Ireland's banks and its public finances. Another possibility is a smaller sum aimed at stabilizing the banking sector alone.
A package of European aid for Irish banks could be worth 45 billion euros to 50 billion euros, while a broader package designed to restore confidence in Ireland's public finances as well could range from 80 billion euros to 100 billion euros, an official familiar with the negotiations said.
Irish banks made disastrous property loans during a decade-long boom, and they've suffered catastrophic losses in the bust. Ireland has said it will pump 50 billion euros into its banks, and it is spending billions to buy bad assets.
In any deal, the IMF would likely contribute half as much aid as the EU and U.K. combined. No further decisions on the breakdown of aid contributions have been made, the official said, as ministers debate whether they should act simply to shore up the banking sector or should make a bolder gesture of support for Ireland's finances.
In Ireland, political leaders who insist they don't need a bailout are also angling to avoid the stigma of an IMF-directed economic program, if one comes. IMF loans typically come with policy prescriptions and force governments to relinquish a degree of sovereignty to the Washington-based institution.
It appeared unlikely Tuesday that Ireland could dodge the IMF. Before the finance ministers' meeting, Finnish government officials made clear that they felt Ireland would have to submit to IMF oversight to better ensure that any loan is repaid.
Arriving at the meeting in Brussels, the Dutch finance minister drew a line in the sand. 'The IMF should be involved, otherwise we will not give any support,' Jan Kees de Jager said.
The U.K. drew criticism from some EU countries this spring for refusing to take part in the euro zone's main bailout fund, known as the European Financial Stability Facility.
The U.K.'s obligations to the IMF and European Commission mean that it would likely be forced to bear part of the burden for an Irish rescue even without making bilateral loans. The U.K. contributes around 5% of the IMF's funds and around 13.6% of the European Commission's lending facility.
Monday, November 15, 2010
Women really can't keep secrets
Women are far more likely to gossip about having an affair than men - who only tell strangers, a study reveals today.
Far from wanting to keep it secret, more than four in ten women who have cheated on their partner admitted they chatted about it with at least one friend.
In stark contrast, three quarters of men who cheat on their partner are far too scared of being found out to tell anyone at all.
But despite playing their cards so close to their chests when it comes to infidelity, it seems men are twice as likely to tell a stranger as confide in their best friend.
Just six per cent tell a friend of their affair, while 12 per cent admitted they would tell someone they had just met that they were playing around.
In contrast, the research found that 43 per cent of women who stray gossip about it to their closest friend and 15 per cent tell more than one.
A relationship expert said this is because men are far less trusting of their friends than women and are programmed not to reveal anything which could make them vulnerable.
Phillip Hodson, from the British Association of Counselling and Psychotherapy, said: 'In short, men don't tend to reveal things about themselves while women like storytelling and tend to have more confidence and trust in their friends.
'Men don't tend to bond in the same way and are loathe to share stuff which could make them vulnerable.
'They bond in terms of common experiences on stag weekends or in the pub but it's not the same as saying 'I'm sleeping with my wife's sister'.
'They fear that sort of information could be used against them. Men are used to being competitive and so they fear someone could blackmail them or betray them.
'Male relationships all contain a certain amount of banter and they may also fear that after a few beers it will all come out.
'In comparison women like to tell and share. They love the drama of soap operas and the like and they also trust their best friends not to tell.
Far from wanting to keep it secret, more than four in ten women who have cheated on their partner admitted they chatted about it with at least one friend.
In stark contrast, three quarters of men who cheat on their partner are far too scared of being found out to tell anyone at all.
But despite playing their cards so close to their chests when it comes to infidelity, it seems men are twice as likely to tell a stranger as confide in their best friend.
Just six per cent tell a friend of their affair, while 12 per cent admitted they would tell someone they had just met that they were playing around.
In contrast, the research found that 43 per cent of women who stray gossip about it to their closest friend and 15 per cent tell more than one.
A relationship expert said this is because men are far less trusting of their friends than women and are programmed not to reveal anything which could make them vulnerable.
Phillip Hodson, from the British Association of Counselling and Psychotherapy, said: 'In short, men don't tend to reveal things about themselves while women like storytelling and tend to have more confidence and trust in their friends.
'Men don't tend to bond in the same way and are loathe to share stuff which could make them vulnerable.
'They bond in terms of common experiences on stag weekends or in the pub but it's not the same as saying 'I'm sleeping with my wife's sister'.
'They fear that sort of information could be used against them. Men are used to being competitive and so they fear someone could blackmail them or betray them.
'Male relationships all contain a certain amount of banter and they may also fear that after a few beers it will all come out.
'In comparison women like to tell and share. They love the drama of soap operas and the like and they also trust their best friends not to tell.
Sunday, November 14, 2010
Beware of Web superpowers
The *tussle between QQ, China’s most popular instant messaging service, and China’s biggest antivirus provider Qihoo 360 is coming to an end after government intervention. But the significance of “the most vicious online war”, as online users put it, doesn’t end here.When the users were forced to make a choice between QQ and 360, they changed from spectators to victims. But that might not be the worst that could happen to you when an IT company or service influences millions of users. The 3Q fight only opens a pandora’s box.
Below, we invited experts to describe the worst-case scenario: how users’ rights might be threatened by the increasing power of Internet companies?
As told by Ni Guangnan, 71, researcher at the Institute of Computing Technology in the Chinese Academy of Sciences
Microsoft: It is not hard to imagine the worst-case scenario if Microsoft wields its power. In the “black screen incident” in October 2008, Microsoft threatened to turn black the desktop of any user found to be running a pirated operating system. It acted like a hacker, invading personal computers and data.
In a worse case, operating system providers could invade a personal computer through the Internet.
For instance, in the Windows 2000 operating system, the ClipBook service allows anyone who connects to the Internet check your clip board. Also, the DNS Client service enables the invader to get a list of websites you have visited.
Then it must not be surprising that Microsoft, the system provider, could do more.
Through the system and Internet connection, Microsoft could check the content of your files saved in your computer, create new files, change file names, and delete and copy files.
Restraints
Users can’t rely on the ethics or goodwill of large companies to protect them. Most computers are sold with the Microsoft operating system pre-installed. That annoys many users. And many companies are competing against Microsoft, but Microsoft is still on top.
Since 1997, Microsoft has been involved in a series of anti-monopoly lawsuits in the US, South Korea and European Union. In 2007 it paid a €497 million (4.6 billion yuan) record fine to the EU for abusing its dominant market position and making it difficult for rivals to design compatible products.
Your fight-back
Earlier this year, the Cuban government announced to stop using the Windows operating system. Instead, they opted to use the Linux system for official government departments and state-owned companies. The measure was taken to prevent the US from damaging their interests through online methods.
Linux uses open-source software, enabling users to change codes whenever they wish. Users can install two operating systems on their computers and use Linux to log into private accounts.
In important institutions like hospitals and banks, computers storing important information should not connect to the Internet. This is the best way to avoid online threats.
Below, we invited experts to describe the worst-case scenario: how users’ rights might be threatened by the increasing power of Internet companies?
As told by Ni Guangnan, 71, researcher at the Institute of Computing Technology in the Chinese Academy of Sciences
Microsoft: It is not hard to imagine the worst-case scenario if Microsoft wields its power. In the “black screen incident” in October 2008, Microsoft threatened to turn black the desktop of any user found to be running a pirated operating system. It acted like a hacker, invading personal computers and data.
In a worse case, operating system providers could invade a personal computer through the Internet.
For instance, in the Windows 2000 operating system, the ClipBook service allows anyone who connects to the Internet check your clip board. Also, the DNS Client service enables the invader to get a list of websites you have visited.
Then it must not be surprising that Microsoft, the system provider, could do more.
Through the system and Internet connection, Microsoft could check the content of your files saved in your computer, create new files, change file names, and delete and copy files.
Restraints
Users can’t rely on the ethics or goodwill of large companies to protect them. Most computers are sold with the Microsoft operating system pre-installed. That annoys many users. And many companies are competing against Microsoft, but Microsoft is still on top.
Since 1997, Microsoft has been involved in a series of anti-monopoly lawsuits in the US, South Korea and European Union. In 2007 it paid a €497 million (4.6 billion yuan) record fine to the EU for abusing its dominant market position and making it difficult for rivals to design compatible products.
Your fight-back
Earlier this year, the Cuban government announced to stop using the Windows operating system. Instead, they opted to use the Linux system for official government departments and state-owned companies. The measure was taken to prevent the US from damaging their interests through online methods.
Linux uses open-source software, enabling users to change codes whenever they wish. Users can install two operating systems on their computers and use Linux to log into private accounts.
In important institutions like hospitals and banks, computers storing important information should not connect to the Internet. This is the best way to avoid online threats.
Wednesday, November 10, 2010
Former President George W. Bush's new book, 'Decision Points' got off to a strong start on Tuesday
The results represent the largest first-day sale of any nonfiction title published by Random House Inc. in the last six years, said Crown Publishers, a unit of Bertelsmann AG's Random House. The figures don't include sales at the nation's independent bookstores or at Kroger Co., the grocery company.
'We're very pleased with first day sales,' said David Drake, a spokesman for Crown Publishers. 'It's exciting to see the readership coming so quickly to this book.'
Crown earlier announced a first printing of 1.5 million copies, a large run at a time when the poor economy and digital titles have tamped down physical book sales in general.
There was considerable interest prior to publication in 'Decision Points.' Pre-orders for the book, which are included in first-day sales, were strong. The publisher said they represented less than 40% of the 220,000 hardcovers and digital editions that were sold, however.
'It's done incredibly well for us, and it will be our fastest selling adult hardcover for the year,' said Liz Harwell, a director of merchandising for Barnes & Noble Inc., the nation's largest bookstore chain.
That President Bush agreed to several well-publicized television interviews gave his book additional velocity because he has largely kept a low profile in the last two years, she noted.
'We're very pleased with first day sales,' said David Drake, a spokesman for Crown Publishers. 'It's exciting to see the readership coming so quickly to this book.'
Crown earlier announced a first printing of 1.5 million copies, a large run at a time when the poor economy and digital titles have tamped down physical book sales in general.
There was considerable interest prior to publication in 'Decision Points.' Pre-orders for the book, which are included in first-day sales, were strong. The publisher said they represented less than 40% of the 220,000 hardcovers and digital editions that were sold, however.
'It's done incredibly well for us, and it will be our fastest selling adult hardcover for the year,' said Liz Harwell, a director of merchandising for Barnes & Noble Inc., the nation's largest bookstore chain.
That President Bush agreed to several well-publicized television interviews gave his book additional velocity because he has largely kept a low profile in the last two years, she noted.
Tuesday, November 9, 2010
Israeli Troops Invade Gaza, Fighting Continues
Fighting between Israeli forces and Hamas militants has been reported from several areas in Gaza after Israel launched a ground offensive into the Palestinian territory Saturday evening. Israel says 30 of its troops have been wounded, two seriously and it claims to have killed or wounded dozens of Hamas militants. Gaza officials put the Palestinian death toll from the week-long Israeli operations at around 500.
Israeli soldiers crossed the border under cover of darkness Saturday night and fanned out across areas of the northern Gaza Strip.
Troops and tanks are reported to have moved into positions, including around Gaza City. Tanks are reported dug in at some former Israeli settlements in Gaza and the military action is reported to have effectively cut the Gaza Strip in two between north and south.
Israel used its infantry, tanks, artillery, war planes and navy to hit more than 40 targets just overnight.
Speaking before an Israeli cabinet meeting Sunday, Prime Minister Ehud Olmert said the decision to launch the ground offensive was made Friday.
Mr. Olmert said the decision was not made lightly and only after months of waiting and after hopes for calm were dashed.
Mr. Olmert vowed that the government did everything before deciding on this operation. It was unavoidable, he said.
Israel has said all along it had no choice but to launch military action after talks with Hamas on extending a cease-fire broke down in December and militants stepped up rocket fire against southern Israel.
Israel initially launched air strikes just over a week ago, pounding targets it said were linked to Hamas and its infrastructure in Gaza.
But, Hamas has remained defiant, warning that it would turn Gaza into a graveyard for the Israelis.
Casualties are reported on both sides, including Israeli soldiers, Hamas fighters and Palestinian civilians, including children.
According to tallies by medical officials in Gaza the Palestinian death toll from Israeli military operations is now around 500.
Israeli soldiers crossed the border under cover of darkness Saturday night and fanned out across areas of the northern Gaza Strip.
Troops and tanks are reported to have moved into positions, including around Gaza City. Tanks are reported dug in at some former Israeli settlements in Gaza and the military action is reported to have effectively cut the Gaza Strip in two between north and south.
Israel used its infantry, tanks, artillery, war planes and navy to hit more than 40 targets just overnight.
Speaking before an Israeli cabinet meeting Sunday, Prime Minister Ehud Olmert said the decision to launch the ground offensive was made Friday.
Mr. Olmert said the decision was not made lightly and only after months of waiting and after hopes for calm were dashed.
Mr. Olmert vowed that the government did everything before deciding on this operation. It was unavoidable, he said.
Israel has said all along it had no choice but to launch military action after talks with Hamas on extending a cease-fire broke down in December and militants stepped up rocket fire against southern Israel.
Israel initially launched air strikes just over a week ago, pounding targets it said were linked to Hamas and its infrastructure in Gaza.
But, Hamas has remained defiant, warning that it would turn Gaza into a graveyard for the Israelis.
Casualties are reported on both sides, including Israeli soldiers, Hamas fighters and Palestinian civilians, including children.
According to tallies by medical officials in Gaza the Palestinian death toll from Israeli military operations is now around 500.
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