Tuesday 3 June 2014

Dunya TV

Dunya TV

PM, Imran Khan, Zardari call for justice for Altaf Hussain

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ISLAMABAD (Dunya News) – Prime Minister Nawaz Sharif on Tuesday termed the matter of Muttahida Qaumi Movement (MQM) Chief Altaf Hussain’s arrest a sensitive matter and stopped party workers from commenting.Pakistan People’s Party (PPP) co-chairman Asif Ali Zadari said that Altaf Hussain is the chief of a major movement and should be give justice.Pakistan Tehreek-e-Insaf (PTI) Chief Imran Khan expressed solidarity with MQM workers saying that despite all differences with Altaf Hussain, he stands by MQM workers and supporters.MQM chief Altaf Hussain has been arrested in connection with the money-laundering case.Metropolitan Police of London had started money laundering probe against Altaf Hussain after they recovered some money from his house, whose source could not be ascertained.During the investigation of Imran Farooq murder case the Scotland Yard had found 0.4 million pound sterling from Altaf Husaain’s house following which it spread its scope of investigation.Altaf Hussain’s bail plea was rejected on Tuesday. According to the police sources, bail is not possible until the investigation is completed.

Text of Finance Minister Ishaq Dars budget speech

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Mr. Speaker,As I rise to present the second budget of the democratic government, I want to thank Allah (SWT) for remarkable mercies He has bestowed on us by giving enormous success to the policies and initiatives we announced in our first budget.This success is the outcome of a democratic process that has allowed people to choose their representatives and they, in turn, are working to achieve their aspirations.When we started our journey, we were facing the most daunting task of repairing a broken economy. We embarked on a very comprehensive agenda of economic reforms aimed to reinvigorate the economy, spur growth, maintain price stability, provide jobs to the youth and rebuild the key infrastructure of the country.Prime Minister Mohammed Nawaz Sharif set a rare example of foresight, courage and political sagacity when he did not shy away from taking painful decisions; decisions that were surely unpopular but imperative for restoring economic health of the country. Today, with the blessings of Allah, I say in all humility that we have not only restored the health of the economy but have put it firmly on the path of stability and growth.I by no means, am claiming that we have achieved our highest goals, however, I can gratefully and with humility, inform this House that Pakistan today is much more strong, healthy and prosperous than where it was one year before. But we need not be complacent with achievements so far.We are far from our destination.Therefore, we have to continue to strive and move forward, so that we achieve the status and stature among the nation, which we deserve, given our abilities. This is a national agenda and we hope that in order to achieve this, both side of the Parliament shall guide and favor us with valuable suggestions.Review of Economic Performance 2013-14Mr. Speaker:I would like to place before this august House the following key economic indicators, based largely on latest data, which point to an unmistakable revival of the economy:• Economic Growth, which had averaged around 3% in the five years before our government, has been projected at 4.14%as per the revised estimates. This is the highest growth in the last six years;• Per Capita Income, which stood at $1339 last year is projected to increase to $1386, showing a growth of 3.5%;• Industrial Sector, which grew by a meager 1.37% during Jul-Feb last year, has registered a growth of 5.84%, aided by increased availability of electricity and better management of available gas supplies. This is also highest in the last six years;• Inflation, which had averaged around 12% in the five years before our government, was recorded at 8.6% for Jul-May 2013-14, that too despite the fact that we had takendifficult decisions to raise taxes and rationalize energy prices;• FBR revenues, which had registered one of the poorest performances of in the recent past of 3% growth in 2012-13, are up by 16.4%, rising from Rs.1,679 billion to Rs.1,955 billion in the first 11 months of the current year;• Fiscal deficit, which was registered at 5.5% during Jul-Apr 2012-13, has been brought down to only 4.0% for the same period this year. Here I would like to remind that in the revised estimates for 2012-13, we were told that the fiscal deficit will be 8.8%. We had taken office only a few days earlier but even then in the three weeks of June 2014, concerted efforts were made to economize on spending. The result was that actual deficit was brought down to 8.2%. This year, the target was to reduce deficit to 6.3%, but we are achieving a deficit of 5.8%, which is an excellent achievement;• Credit to Private Sector, which was registered at Rs.92.5billion during 1st July 2012 to 9thMay 2013has increased to Rs.296.4 billion for the same period this year, showing a growth of 318% and reflecting increased investment activity in the private sector, thanks mainly to reduced borrowings by the government, mainly from SBP, which were completely eliminated from a level of Rs.417 billion last to a negative Rs.11 billion during this year;• Exports were recorded at $21billion during Jul-Apr 2013-14 compared to $20.1billion last year, showing an increase of 4.24%;• Imports were recorded at $37.1 billion during Jul-Apr 2013-14 compared to $36.7 billion last year and showing a marginal growth of 1.2%. However, imports of machinery have increased by an impressive 11% an indication of investment activity;• Remittances, which were recorded at $11.6 billion during Jul-Apr 2012-13, rose to $12.9 billion for the same period this year, showing an increase of 11.5%, which is remarkable and for which I salute my expatriate Pakistanis for playing such a critical role in country’s economy;• Exchange Rate, which experienced some instability due to speculative activity and initially declining reserves due to heavy repayments due from previous IMF loan, has been successfully stabilized and significantly appreciated subsequently. The speculators had thought that government would sit idly while they play havoc with the dollar. They had pushed the rate to approximately Rs.111on 3rd December, which was totally unacceptable, as it had no economic justification.While dealing sternly with them we have expended serious efforts to stabilize the reserves position and also improved the basic economic indicators. Since 3rdDecember 2013, the rupee has appreciated by 11%. It has been trading in the range of Rs.98-99 for nearly three months, and this is the single most important indicator of economic stability as it affects a large number of other variables like prices and cost of production. A stable exchange is the lynchpin of a stable economy;• Foreign Exchange Reserves, which had declined to a precarious level when in June 2013 SBP they stood at $6 billion, of which $2 billion were due to a swap that was payable in August. More importantly, besides regular debt servicing, a paymentof $3.2 billion was due to IMF, bulk of which in the first half of the fiscal year. On 10th February 2014, country’s reserves had further declined to $7.58 billion, of which SBP reserves amounted to a meager $2.70 billion and those of commercial banks amounted to $4.88 billion. Many had predicted that Pakistan would soon default.It is from such a precipice that we have pulled the economy back and put it in on sound footing. For reasons I will be alluding to in my speech, foreign exchange reserves of the country have entered safe territory and no longer pose any risk to the economy. Even though reserves at present stand at around $13.5 billion, we will be pushing them to $15.0 billion, much in advance of our target to achieve this level by 31stDecember.• Karachi Stock Exchange Index, which stood at 19,916 on 11 May 2013, the day the elections were held, has continuously scaled new heights and stood at 29,543 on 29 May 2014, showing an increase of 46%. Also, this increase meant an increase of approximately 39% in market capitalization both in rupees and dollars.• Incorporation of New Companies, which was recorded at 3212 during Jul-Apr last year has increased to 3655 during the same period this year, showing an increase of 13.79%.

Altaf Hussain shifted to hospital for checkup

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LONDON (Dunya News) – Muttahida Qaumi Movement (MQM)’s Chief Altaf Hussain has been shifted to hospital.Earlier, Altaf Hussains lawyers applied for plea on medical grounds, which was turned down by authorities.According to the police sources, bail is not possible until the investigation is completed.MQM chief Altaf Hussain arrested in connection with the money-laundering case.Metropolitan Police of London had started money laundering probe against Altaf Hussain after they recovered some money from his house, whose source could not be ascertained.During the investigation of Imran Farooq murder case the Scotland Yard had found 0.4 million pound sterling from Altaf Husaain’s house following which it spread its scope of investigation.Meanwhile, government of Pakistan has offered legal and moral assistance to the MQM chief.On the hand, several activists including women gathered at the Mazar-e-Quaid roundabout and chanted slogans in favour of their party chief. The activists vowed to continue the until MQM chief address them.

China blocks Google sites amid Tiananmen security drive

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BEIJING (AFP) - Several Google websites have been blocked in China, a monitoring service said Tuesday, as authorities step up arrests and censorship before the 25th anniversary of the Tiananmen Square crackdown.A stepped-up police presence is visible on Beijings streets, while dozens have been detained in the run-up to Wednesdays anniversary, when China moves to block any public commemoration.Ive been ordered to stay close to my house... so I cant live or work normally, environmental activist Wu Lihong told AFP, adding that the restrictions were likely to last until June 10.Police in Beijing on Sunday detained Chinese-Australian artist Guo Jian, who produced artwork about the crackdown.The Tiananmen protests were crushed when soldiers killed hundreds -- by some estimates more than 1,000 -- unarmed civilians.Amnesty International has denounced the detention as part of a merciless campaign of repression, adding that scores of activists have been detained in recent weeks.Seventeen activists have been detained on criminal charges, while more than 30 others are believed held under house arrest or other forms of detention, the group said.Those criminally detained include celebrated human rights lawyer Pu Zhiqiang, detained last month along with four others on a charge of picking quarrels and provoking trouble after attending a private seminar about the crackdown.Those detained are unlikely to be released until next week, effectively preventing them from marking the anniversary, Si Weijiang, a friend of Pu, told AFP.Police on Tuesday were stationed at major overpasses in the city, though their numbers were also boosted as part of an anti-terror campaign following deadly attacks in recent months blamed on separatists from the far-western Xinjiang region.Beijing authorities have recruited 850,000 citizen volunteers to act as informants in a year-long anti-terrorism campaign, state media reported last week.China blocks access to a host of websites including YouTube and Twitter using a system known as the Great Firewall, and restrictions are tightened before dates the government considers sensitive.The ruling Communist Party blocks public discussion of the June 4 crackdown.Overseas versions of Google, accessible in China after the technology giant partially withdrew from the mainland in 2010, have now been blocked, according to monitoring group GreatFire.org.Affected products include google.com -- the worlds most visited website -- alongside country-specific versions of Google homepages.Because the block has lasted for 4 days, its more likely that Google will be severely disrupted and barely usable from now on, the website said.The 25th anniversary of the Tiananmen Square incident is coming. This highlights another fierce battle in the war between China censorship authority and information flow, it added.Google stopped offering a search engine service within mainland China in 2010, citing censorship, but users were redirected to the Hong Kong version which was usually accessible, although sometimes blocked.Google said it was not responsible for the shutdown.Weve checked extensively and theres nothing wrong on our end, a spokesman told AFP, adding that some Google services are accessible in China.Asked about the blockages, foreign ministry spokesman Hong Lei told a regular press briefing that China manages the Internet according to the law.Hong, queried about the Tiananmen crackdown, added: Chinas position is clear and we have reached a conclusion. In more than 30 years of reform and opening up, we have achieved remarkable progress in social and economic development.Regarding the detention of Guo Jian, the Chinese-Australian artist, Hong said China is a country governed by the rule of law, and we will follow relevant laws in dealing with this incident.Difficulties accessing Google are unlikely to affect most Internet users in China, where the US-based companys share of the online search market stood at just 1.2 percent in April, according to Chinese market research company CNZZ.Censorship has also been stepped up on popular Chinese websites. Searches for the date 6.4 have been blocked by Sina Weibo, a popular Chinese alternative to Twitter.A rival service, Tencent Weibo, is censoring searches for Willow Silk, which sounds like Six Four in Chinese.

Intel backs survival of PCs in world of shrinking tech

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TAIPEI (AFP) - US computer chip giant Intel declared its faith in the future of the personal computer Tuesday, in a landscape increasingly dominated by super-slim tablets and mobiles.Speaking in Taiwan on the first day of Computex, Asias largest tech show, new Intel president Renee James said the firms PC business was going well -- but that personal computers would evolve into new forms.We do see signs of PC stabilisation globally, added senior vice president Kirk Skaugen.From both a consumer and a corporate perspective things are better -- in some of the areas where weve seen negative growth, like Russia, were even seeing some recovery there.Whether personal computers can survive in an increasingly mobile world has been a key question at Computex.A number of leading players have introduced new 2-in-1 devices -- a cross between a tablet and a laptop, with a detachable keyboard -- as a potential replacement for the traditional PC.Really these converged-type devices are the new PC, Paul Spain of New Zealand Tech Podcast told AFP at the four-day event in the capital Taipei.And maybe one day, in the not too distant future, your phone will be your PC, he said.Youll have it in your pocket or on your desk and your screen will recognise it.With Intel having processors inside smartphones its quite possible that will happen.- Smaller, thinner, lighter -Others argue that consumers will continue to demand a full range of machines for different uses, including desktops.There are some things that desktops still offer, such as easy-to-upgrade components and generally lower costs compared to portable machines -- especially when it comes to niche uses like gaming and intensive video-editing, Singapore-based tech blogger Alfred Siew said.With the evolution of cloud services which share data between multiple devices, having more than one machine is less of a disadvantage, he added.While Intel voiced optimism for the PCs future, James acknowledged its machines would have to be smaller, thinner, lighter in order to sell.She unveiled Intels CoreM processor during a keynote speech at Computex Tuesday, with designs using the new chip promising both a lightning-fast tablet and a razor-thin laptop.Products using the CoreM will be available later this year, with the first unveiled by Taiwans computer maker Asus on Monday -- the Transformer Book T300 Chi which is a super-slim high-performance detachable notebook.Commentator Spain described the device as a breakthrough, potentially able to handle business tasks and gaming as well as the fun functions of a tablet, something that 2-in-1s have so far been criticised as failing to do.Intel has been pushing further into mobile devices and the Internet of Things -- which connects devices from cars to household appliances online -- as it seeks to diversify from the PC market.James gave a fleeting glimpse of the firms future plans at the end of her speech in a video which included a smartwatch, face recognition technology and 3D camera software, saying those offerings would be refined further within the next two years.

Ex-India minister behind bars after power rage protest

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NEW DELHI (AFP) - A former finance minister of Indias ruling party was behind bars Tuesday over accusations he led 300 protesters in storming an electricity office and tying up its manager to denounce blackouts, a report said.Yashwant Sinha and 54 co-accused were remanded in judicial custody for 14 days on assault charges by a court in eastern India after refusing to pay bail, the Press Trust of India news agency reported.The protest involving Sinha, who is also a former foreign minister, comes as new Prime Minister Narendra Modi struggles to fix endemic electricity shortages that have hindered economic growth.Police allege that Sinha and more than 300 members of Modis Bharatiya Janata Party (BJP) invaded the office of the state electricity board in Jharkhand on Monday and then barricaded themselves inside.Sinha, who used to represent the area in parliament, and several dozen fellow demonstrators were detained after they allegedly trussed up the general manager, said police superintendent Arvind Kumar Singh.Sinha, who served in a previous BJP government from 1998-2002, told journalists that he had instructed the women among the protesters to bind manager Dhanesh Jha with a rope, the Press Trust of India said.I asked them to tie the hands of the GM (general managers) as women are the worst sufferers for not getting power, the news agency quoted him as saying.Their childrens education is also suffering.During blackouts, women and children spend long hours at home in sweltering heat without fans. Without power at night the children cannot study.Jha, who filed a complaint with police, said the protesters had subjected him to a humiliating and insulting experience.So-called power-rage protests about electricity shortages are relatively common. But this case was unusual because of Sinhas high profile and his senior status in the ruling party.The mineral-rich but impoverished state of Jharkhand is plagued by electricity shortages while parts of Indias most populous state, Uttar Pradesh, have been gripped by 12-hour blackouts in recent days as summer temperatures have soared.Two years ago, power was cut off to hundreds of millions of Indians in one of the worlds worst blackouts when grids collapsed.Gujarat state, where Modi was chief minister for a dozen years before becoming prime minister, boasted 24-hour power.He has vowed to fast-track stalled power projects to connect between a quarter and 40 percent of Indians estimated not to be linked to any electricity grid.

US shuts Afghan transit base in Kyrgyzstan

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BISHKEK (AFP) - The United States on Tuesday shut its airforce base in Kyrgyzstan that had been the main transit point for military personnel and cargo headed to Afghanistan for 12 years.Washington was forced to shut the Manas Transit Centre north of Bishkek after Kyrgyzstan, an ex-Soviet country seeking closer ties with Moscow, refused last year to extend its lease.In a symbolic ceremony US officials handed over keys to the Manas Transit Center to the Kyrgyz authorities.Commander of the base, Colonel John Millard, said at the ceremony that some 5.5 million troops of the anti-terror coalition passed through the base in the Central Asian nation since it was established in late 2001, in the wake of the September 11 attacks in the US.US ambassador to Kyrgyzstan Pamela Spratlen said that all military personnel would leave the base in a week.Russia maintains its own base in Kyrgyzstan and is expected to be pleased by the move as it vies for influence in Central Asia.The United States has moved its main transit base for Afghanistan to Romania, which in April approved an increase in American troops at a base on the Black Sea.

Turkey PM accuses international media of spying

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ANKARA (AFP) - Turkeys embattled prime minister lashed out at international media on Tuesday, accusing news outlets of stirring unrest during the one-year anniversary of mass anti-government protests.Recep Tayyip Erdogan singled out CNN International, whose reporter was arrested live on air last Saturday while covering street clashes, accusing the network of spying.International media organisations who came to Istanbul for provocative and exaggerated broadcasts were left empty-handed, Erdogan told members of his ruling AKP party in an apparent reference to the incident.On Saturday, police violently dispersed demonstrators in Istanbul and Ankara as they marked a year since the start of nationwide protests denouncing Erdogans authoritarian rule.Riot police fired tear gas and water cannon at protesters on Istanbuls side streets to prevent them reaching the citys iconic Taksim Square, the epicentre of last years uprising.News outlets were also targeted, with Turkish police briefly detaining a CNN team in the middle of a live broadcast from the square.Turkish police released CNN team after half an hour. Officer apologised for another officer who kneed me while I was being detained, CNNs Ivan Watson said on Twitter.On Tuesday, Erdogan called Watson a lackey who had been caught red-handed trying to bring chaos to Turkey. doesnt care about a free, impartial and independent press. They are assigned to work like spies, Erdogan said.Last years wave of protests was sparked by government plans to uproot trees at Istanbuls central Gezi Park and erect a shopping mall on the site.At least eight people were killed and thousands were left injured during three weeks of unrest that followed.Erdogan has branded demonstrators extremists and looters and accuses them of seeking to derail his governments economic achievements over the last decade.

Iraq violence kills 14

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BAGHDAD (AFP) - Attacks across Iraq killed 14 people on Tuesday, as politicians haggle over forming a new governing coalition after an April general election.Iraq is going through its worst protracted spell of violence since it emerged from a brutal Sunni-Shiite sectarian conflict that left tens of thousands dead in 2006 and 2007.The worst of Tuesdays bloodshed unrest was concentrated in the outskirts of Baghdad, with eight people killed in all, security and medical officials said.In Iskandiriyah, militants killed five people -- two with guns and three with knives -- along a main road in the town before fleeing the scene. It was not clear why the victims were targeted.The town lies in a confessionally-mixed area south of Baghdad dubbed the Triangle of Death for its brutal violence in 2006-7.On the capitals northern outskirts, two people were killed by mortar fire in Saba al-Bor, while a policeman was shot dead in Tarmiyah.Further north, attacks in Salaheddin, Nineveh and Kirkuk provinces killed six people, four of them policemen, officials said.Figures separately compiled by the United Nations and the government in Baghdad showed more than 900 people were killed last month alone.An AFP tally puts the death toll so far this year at more than 4,000.Officials blame external factors for the rise in bloodshed, particularly the civil war in neighbouring Syria, and insist wide-ranging operations against militants are having an impact.But the violence has continued unabated, with analysts and diplomats saying the Shiite-led government needs to do more to reach out to the disaffected Sunni Arab minority to reduce support for militancy.

German car sales rise in May

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FRANKFURT (AFP) - New car registrations in Germany, a key measure of demand in one of the most crucial sectors of Europes top economy, rose in May, data showed on Tuesday.A total 274,804 new cars were registered last month, an increase of 5.2 percent compared with the same month in 2013, according to data compiled by the federal automobile agency, KBA.In April, new registrations had fallen by 3.6 percent.Taking the first five months as a whole, new registrations rose by 3.4 percent to 1.261 million units, KBA calculated.

Asia shares rise after positive US manufacturing data

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HONG KONG (AFP) - Asian markets mostly rose Tuesday, taking their cue from another record close on Wall Street following improved manufacturing data in the United States and China.The dollar held steady while the euro continued to face pressure ahead of Thursdays European Central Bank meeting amid concerns over eurozone deflation.Tokyo closed up 0.66 percent, or 98.33 points, at 15,034.25, the first time the benchmark index has crossed the 15,000 mark in the last two months.Seoul rose 0.33 percent, or 6.56 points, to close at 2,008.56 while Sydney fell 0.70 percent, or 38.76 points, to close at 5,479.70.Hong Kong closed 0.91 percent higher, or 209.39 points, at 23,291.04 while Shanghai edged down 0.04 percent, or 0.90 points, to 2,038.31.Markets have taken heart from improved manufacturing output in the worlds two largest economies.On Tuesday HSBC said manufacturing activity in China improved in May. The British banking giants purchasing managers index (PMI), which tracks activity in the nations factories and workshops, came in at 49.4 in May.The figure was lower than a preliminary reading of 49.7 but improved from 48.1 in April and the highest reading since Januarys 49.5.PMI data is a closely watched indicator of the health of a countrys economy, and a reading above 50 indicates growth.Over the weekend, Beijings own National Bureau of Statistics gave a more optimistic PMI of 50.8 for May.- India, Australia hold rates -In the United States, meanwhile, the Institute of Supply Management said Monday its purchasing managers index of US manufacturing activity rose in May to 55.4 from 54.9 in April, rather than slowing to 53.2 as it first reported.The figures, which were corrected after a software error, gave an unexpected mid-session lift to the US stock market.The Dow Jones Industrial Average advanced 0.16 percent, or 26.46 points to 16,743.63 while the S&P 500 added 0.07 percent, or 1.40 points, to end at 1,924.97 -- closing records for the third straight session.Both Australia and Indias central banks kept interest rates on hold Tuesday, with the former hoping to transition away from mining-led growth and the latter trying to stave off rising inflation.It was the first monetary policy decision from Indias hawkish central bank since the recent election of Prime Minister Narendra Modi.Meanwhile, traders are keeping a close eye on Europe with investors fretting ahead of the European Central Banks meeting this week.ECB watchers predicted a cut in the central banks key interest rates and possibly new measures to pump liquidity into the banking system.In foreign exchange trade the greenback fetched 102.33 yen, little changed from 102.36 yen in New York Monday afternoon, having made up ground from its 102.02 yen level in Tokyo earlier in the day.A weak yen is positive for Japanese exporters as it makes them more competitive abroad and increases profits when repatriated.The euro ticked up slightly to $1.3601 and 139.24 yen on Tuesday against $1.3595 and 139.19 yen in US trade.Oil prices inched higher. The US benchmark, West Texas Intermediate (WTI) for delivery in July gained 15 cents to $102.62 a barrel while Brent North Sea crude for July was up 11 cents to $108.94 in afternoon trading.Gold fetched $1,246.83 an ounce at 1130 GMT compared to $1,244.75 late Monday in Europe.In other markets:-- Mumbai rose 0.70 percent, or 173.74 points, to end at 24,858.59 points.Havells India gained 7.45 percent to 1,056.20 rupees and Suzlon Energy rose 7.25 percent to 25.90 rupees.-- Kuala Lumpur rose 0.45 percent, or 8.3 points, to close at 1,872.55 points.British American Tobacco rose 0.90 percent to 63 ringgit, Petronas Gas gained 0.76 percent to 24 ringgit, and Public Bank shed 0.38 percent to close at 21.06 ringgit.-- Bangkok added 0.92 percent, or 13.30 points, to 1,454.24.Charoen Pokphand Foods gained 4.46 percent to 29.25 baht, while telecoms company Total Access Communication rose 3.64 percent to 128.00 baht.-- Jakarta ended up 0.61 percent, or 30.06 points at 4,942.16.Multimedia company Surya Citra Media gained 3.75 percent to 3,320 rupiah, while property firm Summarecon Agung fell 2.02 percent to 1,210 rupiah.-- Singapore closed 0.17 percent lower, or 5.57 points, to 3,296.67.Agribusiness company Wilmar International eased 1.24 percent to Sg$3.20 while DBS bank rose 0.35 percent to Sg$16.98.-- Manila gained 1.35 percent, or 90.44 points, to 6,800.84.Metropolitan Bank and Trust Co. gained 0.65 percent to 85.65 pesos while Megaworld Corp. rose 1.08 percent to 4.70 pesos.-- Wellington fell 0.28 percent, or 14.32 points, to 5,164.12.Trade Me was down 1.94 percent at NZ$3.53 and Z Energy was also off 0.77 percent at NZ$3.86.-- Taipei rose 0.52 percent, or 47.55 points, to 9,123.46.TSMC rose 2.51 percent to Tw$122.5 while Acer was 1.03 percent higher at Tw$19.7.

Eurozone inflation slows, in new signal for ECB easing

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BRUSSELS (AFP) - Inflation in the eurozone slowed last month to financial crisis levels, putting extra pressure on the ECB to act to fight a growing threat of deflation, data showed on Tuesday.Eurozone inflation fell to 0.5 percent in May, the same level as in March and erasing a bump to 0.7 percent in April.Inflation in the 18-nation eurozone has fallen steadily in the past year, reflecting weak demand and strength of the euro, and has raised expectations that the European Central Bank will cut interest rates at a policy meeting on Thursday.There is no sign of inflationary pressure in the pipeline, said Jennifer McKeown, senior European economist at Capital Economics.Inflation is way below the ECBs target of just under 2.0 percent and shows little sign of picking up any time soon.The ECB has held its key interest rates steady at their current all-time lows since November, repeatedly promising to act if necessary to avert a bout of destructive deflation in the 18 countries that share the euro.ECB president Mario Draghi has hinted strongly at a move at the next meeting, saying the central banks decision-making governing council was dissatisfied with the current path of inflation and was not prepared to accept it as a fact of nature.Low inflation increases the risks of tipping into deflation, which can push an economy into a vicious spiral of falling prices as businesses and households delay purchases.This in turn can reduce growth and raise unemployment. Once deflation takes hold, central banks can have great difficulty in stimulating activity.The low core inflation reading in particular should dispel any remaining hesitation within the (ECB) Governing Council to act aggressively on Thursday, said ING analyst Martin van Vliet.- Eurozone unemployment rate eases -And while the employment picture is not the ECBs responsibility, data also released on Tuesday showed that monetary stimulus could also help on the sensitive jobs front.The eurozone unemployment rate edged lower to 11.7 percent in April, with notable signs of improvement in bailed-out Portugal and Ireland, but the EU warned that the pickup was fragile.Laszlo Andor, European Commissioner for Employment said that the downtick was encouraging, but that many new jobs are precarious, and we are far from ensuring that every person has a real opportunity in the labour market.The highest levels of unemployment were still in Greece, at 26.5 percent and Spain at 25.1 percent.Encouragingly however, Portugals unemployment rate fell from 17.3 percent to 14.6 percent over 12 months and Irelands from 13.7 percent to 11.9 percent.But most recent data has backed the argument that the ECB needs to act.Eurozone growth stands at a disappointingly meagre 0.2 percent and loans to the private sector, seen as the key obstacle to a more sustained recovery, continued to fall.ECB critics urge Draghi to follow the Bank of England and US Federal Reserve which have embarked on huge waves of so-called quantitative easing (QE), large-scale bond purchases, to jump start recovery.But most ECB watchers believe this is still unlikely.The ECBs chief economist Peter Praet said last month that this would only happen if the economy and inflation develop significantly worse than we expect.While inflation was low in May, the critical levels needed to justify QE have not been reached, most observers agree.

Bangladesh halts shutdown of 'unsafe' garment factories

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DHAKA (AFP) - The Bangladesh government is refusing to shut down garment factories declared unsafe, following a row with independent inspectors over the strength of concrete used in the buildings, officials said Tuesday.Inspectors hired by Western retailers have been checking the structural safety of factories in the wake of the collapse of the Rana Plaza complex last year that killed 1,138 people.But a dispute has erupted between Bangladeshs Inspector General of Factories and engineers from the group of retailers called the Accord over the concrete strength in the buildings.The inspector general, Syed Ahmed, said his office has refused since April to review or close down six factories, employing hundreds of workers, deemed unsafe after inspections.Its a tricky issue, said Ahmed, whose office already closed 14 factories on the engineers recommendations before the row broke out.Until the debate on concrete strength is resolved, were not shutting down any factories recommended by the Accord, he told AFP.The factory shutdowns have infuriated Bangladeshs influential garment manufacturers and resulted in more than 10,000 job losses, triggering labour protests and violence.Bangladesh is the worlds second-biggest clothing manufacturer and the $22 billion (16 billion euros) sector is the mainstay of the impoverished South Asian nations economy.But the sector -- with some 3,500 factories -- has a woeful safety track record, highlighted by the collapse of Rana Plaza last April on the outskirts of the capital in Bangladeshs deadliest industrial disaster.The dispute centres on the estimated strength of the concrete in buildings made before 2005. Accords inspectors put the concrete strength significantly lower than estimates from the countrys main engineering university which advises the government.The head of inspections for the Accord, representing 150 mostly European retailers, including H&M, Tesco and Benetton, said the factory inspector generals refusal to go ahead with the shutdowns was disappointing.Were disappointed that the inspector general did not close down the unsafe factories, Brad Loewen, the Accords chief inspector, told AFP. Were working with BUET (Bangladesh University of Engineering and Technology) on the concrete strength issue.Officials from BUET, retailers and the International Labour Organisation were expected to meet later this week to try to resolve the dispute.But one BUET professor said accepting the Accords recommendations on concrete strength would prove disastrous for the garment industry.It may led to closure of some 40-50 percent of our garment factories, the professor said, speaking on condition of anonymity.But if they accept our estimate, it might lead to closure of only about 10 percent of factories. We think we are on the right side because weve more data on Bangladeshi factories, he added.

Oil prices in slight retreat

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LONDON (AFP) - Oil prices fell slightly on Tuesday as traders weighed ample supplies against data pointing to solid demand from the worlds biggest energy consuming nations, analysts said.US benchmark, West Texas Intermediate (WTI) for delivery in July dipped six cents to $102.41 a barrel.Brent North Sea crude for July dropped 27 cents to stand at $108.56 a barrel in midday deals compared with Mondays closing level.The losses in Brent crude could be attributed to an ample supply as OPECs output forecast remains high, said Dorian Lucas, an analyst at energy consultancy Inenco.Crude futures remained supported however by positive US and Chinese manufacturing data.The oil market at the moment is focused on the manufacturing data out of the US and China, Michael McCarthy, chief market strategist at CMC Markets in Sydney, told AFP.But we are seeing some of the risk premium associated with Ukraine coming off as the crisis continues to drag on with new developments having little impact, McCarthy said. That is dampening any upside factor on oil.Government forces and pro-Russian insurgents have been embroiled in skirmishes for weeks in eastern Ukraine, but the fighting has so far not expanded into a full-fledged civil war in the ex-Soviet state.The West has accused Russia of fomenting unrest in its neighbour since the ousting of pro-Kremlin president Viktor Yanukovych in February. Moscow denies the allegation.Investors are concerned that a full-blown conflict in Ukraine, a conduit for a quarter of European gas imports from Russia, would disrupt supplies and send energy prices soaring.The International Energy Agency said that more than $48 trillion (35 trillion euros) must be invested by 2035 to meet global energy needs as current technologies go offline and demand rises in emerging nations.In a report launched in London on Tuesday, the IEA said the expansion of the global gas market, thanks largely to the improvements in unconventional extraction methods, will not reduce prices significantly owing to high transportation and infrastructure costs.The Paris-based body forecast that $2 trillion per year will need to be invested by 2035, a rise of $400 billion from 2013.

Global warming: Breakthrough material absorbs CO2 from gas

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PARIS (AFP) - Chemists said on Tuesday they had invented a material that easily removes carbon dioxide (CO2) from natural gas, making the abundant fuel more climate-friendly.The porous substance can cheaply separate CO2 at wellheads and safely store it for industrial use or for re-injection into the gas field, they said.Current processes for removing CO2 involve chemical scrubbing, a costly procedure in which the carbon in natural gas is dissolved into corrosive liquid compounds heated to 140 degrees Celsius (284 degrees Fahrenheit).The new material comprises a carbon powder, studded with microscopic holes and infused with nitrogen or sulphur atoms, which turns CO2 gas into solid chains of polymer molecules.The polymers become trapped in the materials pores, while the natural gas is let through.This polymerisation happens under the pressure released naturally from the wellhead, the team behind the invention wrote in the journal Nature Communications.Once the pressure disappears, the polymers revert to their original gassy state, freeing the pores so that they can collect more carbon gas.This all happens at normal temperature, unlike existing capture technology which requires heat and uses up much of the energy being produced, according to the team.Study co-author James Tour, a professor at Rice University in Texas, told AFP by email that CO2-capturing materials already existed, but none that work like this and can be made so inexpensively.The new method is used at source, meaning the gas does not have to be transported to a collection station for the CO2 to be removed, a press statement from Rice University said.Natural gas is the cleanest fossil fuel. Development of cost-effective means to separate carbon dioxide during the production process will improve this advantage over other fossil fuels, it added.The breakthrough should also allow the use of gas whose high content of CO2 would make it prohibitively costly to clean using current capture technologies.With the new method, which is patented but not yet in use, CO2 can be pumped directly back into the gas well, where it had been for millions of years, or packaged and sold for other industrial applications, said the team.CO2 is the most abundant man-made greenhouse gas.Billions of tonnes of these gasses are being emitted each year, acting like an invisible blanket trapping solar energy in the atmosphere and damaging Earths delicate climate system, with potentially catastrophic risks, say experts.A car running on natural gas produces about 30 percent less CO2 than on petrol, said the study.But the CO2 released at the gas well itself significantly offsets this advantage, it added.
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