November 2009

Dubai World $26 billion debt plan soothes contagion fears

DUBAI (Reuters) –
Efforts by Dubai World to restructure about $26 billion in debt out of the estimated $59 billion it owes reassured investors that the emirate's debt problems can be contained, helping global markets edge higher on Tuesday.

Dubai World, the government-controlled conglomerate that led the transformation of Dubai into a regional hub for finance, investment and tourism, unveiled details of a restructuring plan late on Monday that would cover debt owed by its main property firms, Nakheel and Limitless.

"Initial discussions have commenced with the banks of Dubai World and are proceeding on a constructive basis," Dubai World said in a statement, its first comment since the crisis began.

Dubai threw global markets into a tailspin last week when it said it would ask creditors of Dubai World and Nakheel to agree to a standstill on billions of dollars of debt as a first step to restructuring.

News of the restructuring plan helped soothe some investor nerves after the Dubai government on Monday disclaimed responsibility for the debts of Dubai World, crushing assumptions by creditors that the emirate would guarantee its liabilities.

Hassaim Arabi, chief executive at Gulfmena Alternative Investments, said Dubai World's restructuring statement offered support to worried markets but was not likely to completely stem selling.

"This is definitely good news, it shows they are still committed to their payments and it removes all fears that this is a complete default."

NO CONTAGION SEEN

Stock markets in Dubai and Abu Dhabi tumbled on Monday, the first day of trade since the announcement made on the eve of a four-day public holiday.

Abu Dhabi's 8.3 percent plunge was its worst one-day fall on record, while Dubai's 7.3 percent slide was the biggest in more than a year.

Gulfmena's Arabi said UAE markets could slide further as foreign investors bailed for the exits while other Gulf markets in Qatar and Kuwait, reopening after the Eid holiday, were seen playing catch-up to Monday's declines.

But after initial sharp falls last week, markets in Asia and the United States rallied on Monday and Asian stocks extended gains on Tuesday.

"Dubai is still a risk but most of Asia has very limited exposure to Dubai other than isolated banks. So people may want to avoid the banks but most other companies are okay," said Francis Cheung, an equities strategist at CLSA in Hong Kong.

Major Wall Street indexes rose 0.3 to 0.4 percent on Monday, while MSCI's index of Asia-Pacific stocks outside of Japan rose 0.6 percent.

Dubai World said its restructuring efforts would not include other firms such as Infinity World Holding, Istithmar World and Ports & Free Zone World, which includes DP World, Economic Zones World, P&O Ferries and Jebel Ali Free Zone, or JAFZA. Dubai World said those firms were financially stable.

The statement said the restructuring plan would look at options for deleveraging, including asset sales, funding requirements and the formulation of restructuring proposals to financial creditors.

"It's a step in the right direction," said Raj Madha, a banking analyst at EFG Hermes in Dubai.

"I'd like to see the details it promises basically: Which entities they're talking about (selling), how big a haircut they're going to take."

(Additional reporting by Rania Oteify and Tamara Walid; Writing by Lincoln Feast; Editing by Tomasz Janowski)

Swiss minaret ban may signal new right-wing surge

ZURICH (Reuters) –
A Swiss vote to ban the construction of new minarets puts the spotlight on the Alpine country's social and political divisions and could herald a new surge in populist, anti-immigrant sentiment.

The unexpected vote and high turnout in Sunday's referendum gives a boost to the right-wing populist Swiss People's Party (SVP), a relatively new political force that has shaken up the country's traditionally cozy power-sharing system.

"It could well be the beginnings of a new right-wing surge," said Clive Church, a Swiss politics expert from Kent University.

The SVP, which has grown rapidly since the 1980s to become Switzerland's largest party, has been accused of racism for its strident anti-immigration campaigns, including a poster showing a white sheep kicking black sheep off a Swiss flag.

It campaigned against extending the right of European Union citizens to live and work in non-EU member Switzerland, which voters approved in February despite SVP posters of three long-beaked sinister-looking ravens picking at a small map of Switzerland.

The SVP won the largest share of the vote in a 2007 general election but its fortunes have since faded: a faction split off to form another party, at one point it lost all its cabinet seats and it has had little success in referenda. Until now.

The SVP poster for Sunday's vote featured a Swiss flag covered in missile-like minarets and the portrait of a woman covered with a black chador and veil, associated with strict Islam, continuing the line of provocative election literature.

While Switzerland's Muslim community of some 300,000 is relatively small there is wider concern about immigration in a country where foreigners make up more than a fifth of the total 7.7 million population.

Nationwide voter turnout was about 53 percent, higher than a more usual 35 to 45 percent, and 22 of 26 cantons, or provinces, voted in favor of the initiative. The decision went against recent polls, which had indicated a slim majority opposed a ban.

There was marked division between urban areas like Zurich and French-speaking areas -- which are traditionally more liberal -- and rural, German speaking cantons like Schaffhausen, where some 70 percent of voters supported the initiative.

"It represents a two finger gesture against the towns, foreigners, the powerful, the better educated and the like. The pattern of voting confirms that," said Swiss culture and politics expert Jonathan Steinberg of the University of Pennsylvania.

IDENTITY CRISIS

Switzerland has suffered an identity crisis since the end of the Cold War robbed its neutrality of much meaning, helping fuel the rise of the SVP.

Switzerland's relations with the Muslim world are already strained over the detention of two Swiss businessmen in Libya following the 2008 arrest in Geneva of Muammar Gaddafi's son on charges, later dropped, of mistreating two domestic staff.

In a front page editorial, Algeria's Le Soir newspaper said Switzerland should be tackling religious intolerance, not Muslims who want to practise their faith in peace.

"This vote is shocking because it took place in a state which advocates secularism and which prides itself on treating all religions on an equal basis," Le Soir said.

It is also likely to complicate relations beyond the Arab world and France's Foreign Minister Bernard Kouchner told French radio RTL the vote was "oppressing a religion."

Protests against the vote in Zurich and Berne attracted few attendees, however, while supporters were jubilant.

"We'll definitely celebrate," Nadja Pieren, who attended a rally supporting the ban, told Reuters. "It's to show that we don't want political Islam in Switzerland. We don't have a problem with people who pray in mosques."

(Additional reporting by Christian Lowe in Algiers, Catherine Bosley in Berne and Sophie Hardach in Paris; Editing by Sonya Hepinstall)

Wash. shooting re-opens Huckabee's clemency record

LITTLE ROCK, Ark. – As governor of Arkansas, Mike Huckabee had a hand pardoning or commuting many more prisoners than his three immediate predecessors combined. Maurice Clemmons, the suspect in Sunday's slaying of four Seattle-area police officers, was among them.
For a politician considering another run for the White House, Clemmons could become Huckabee's Willie Horton.
"In a primary between a law-and-order Republican and him, I think it could definitely be a vulnerability," said Art English, a political scientist at the University of Arkansas at Little Rock. "It is very damaging when you have someone like that whose sentence was commuted. That's pretty high profile and very devastating and very tragic."
English said it's hard to avoid comparing the case to Horton, a convicted killer who raped a woman and assaulted her fiance while on release as part of a prison furlough program supported by Michael Dukakis when he was governor of Massachusetts.
Allies of former President George H.W. Bush ran ads criticizing Dukakis for his support of the program, undermining the Democrat's presidential campaign.
As recently as Sunday, hours before the shooting suspect was linked to him, Huckabee said he was leaning against running again for president, telling "Fox News Sunday" he was "less likely rather than more likely" to run.
On Monday, Huckabee said he takes responsibility for making Clemmons eligible for parole in 2000, and called the case a failure of the justice systems in Arkansas and Washington. Huckabee cited the length of Clemmons' sentence — 108 years — and a state judge's recommendation that it be reduced as factors in his decision.
"If I could have known nine years ago that this guy was capable of something of this magnitude, obviously I would have never granted a commutation. It's sickening," Huckabee said on Fox News Channel's "The O'Reilly Factor."
Clemmons was among 1,033 people who were pardoned or had their sentences reduced during Huckabee's 10 1/2 years as governor. Bill Clinton, Frank White and Jim Guy Tucker granted 507 clemencies in the 17 1/2 years they served. Beebe, Huckabee's Democratic successor, has issued 273 commutations and pardons since taking office in January 2007 — all but one of them were pardons after the completion of the inmates' prison terms.
Huckabee's role in gaining the release of a convicted rapist, Wayne DuMond, was the subject of an attack ad during his presidential run. While Huckabee's predecessor, Tucker, reduced DuMond's sentence making him eligible for parole, Huckabee took steps almost immediately after taking office to win DuMond's release.
Two members of the state parole board said Huckabee pressured them to show DuMond mercy, while Huckabee publicly questioned whether DuMond was guilty of the rape of a teenage girl. During the presidential primaries, a conservative group aired television commercials in South Carolina featuring the mother of Carol Sue Shields, whom DuMond killed in 2000 after his release.
Pulaski County Prosecutor Larry Jegley, whose office opposed Clemmons' parole in 2000 and 2004, said Huckabee created a flaw in the Arkansas justice system by freeing the number of prisoners he did.
"(Clemmons) should have stayed locked up like the jury wanted him and we wouldn't even be having this discussion," Jegley said.
"I just have been figuratively holding my breath and hoping something like this wouldn't happen," Jegley said. "I just think that a lot of the people that were subjects of clemency during that period of time were some very dangerous people who didn't need to be let out."
Clemmons also had the backing of Pulaski County Circuit Judge Marion Humphrey, who urged the board to grant clemency. Humphrey later presided over Clemmons' 2004 wedding in his court chambers.
Huckabee cited Humphrey's support Monday and noted local prosecutors didn't object to Clemmons' commutation. Jegley said his office doesn't have any record that the governor notified him of the intention to grant clemency.
Prosecutors have said Huckabee, a Southern Baptist preacher, was more inclined to release or reduce the sentences of prisoners if he had direct contact with them or was lobbied by those close to him. Clemmons' letter perhaps appealed to Huckabee's Christian faith.
In his application for clemency, Clemmons wrote that he prayed Huckabee would show him compassion and said at the time of his crimes he had just moved to Arkansas from Seattle. Clemmons also wrote that he had changed his life since "the angel of death has visited and taken away my dear sweet mother."

In 1989, Clemmons, then 17, was convicted in Little Rock for aggravated robbery and other charges and sentenced to 108 years. Between 1989 and 1998, Clemmons broke prison rules more than two dozen times — sometimes violently, said state prison system spokeswoman Dina Tyler.

Clemmons didn't stay out long. He was convicted of robbery in Ouachita County in 2001, but was released again in 2004 by the parole board. Little Rock police say Clemmons also faced charges here in 2001 but prosecutors dropped the additional charges when Clemmons was released a second time.

Huckabee said Monday that Clemmons was allowed back on the street because prosecutors "failed to file the paperwork in a timely way." Jegley said the charges were dropped because the warrant wasn't served in a timely manner and because there was trouble locating witnesses to the 2001 robbery.

Jegley called Huckabee's comments "red herrings."

"My word to Mr. Huckabee is man up and own what you did," Jegley said Monday night.

Months after his 2004 release, Clemmons was named as a suspect in an aggravated robbery at a hotel in Little Rock but he was not charged.

Saline County Circuit Judge Robert Herzfeld, who as a prosecutor successfully sued Huckabee over clemency practices, said Huckabee's decision to give Rolling Stones guitarist Keith Richards a pardon for a 1975 traffic offense after meeting him at a concert showed how lightly the ex-governor approached the practice.

"That just said volumes about how he considered this serious ultimate power over freedom as a joke," Herzfeld said.

(This version CORRECTS Clemmons' 1989 sentence to 108 years, not 95 years.)

Voice Chips

Voice Chips

For the MSX several sound upgrades, such as the Konami SCC, the Yamaha YM2413 (MSX-MUSIC) and Yamaha Y8950 (MSX-AUDIO, predecessor of the OPL3) and the OPL4-based Moonsound were released as well, each having its own characteristic chiptune sound.

Common file formats used to compose and play chiptunes are the SID, YM, SNDH, MOD, XM, several Adlib based file formats and numerous exotic Amiga file formats.

Business foes of health care revamp ramp up effort

WASHINGTON – Business foes of health care overhaul legislation are outspending supporters at a rate of 2-to-1 for TV ads as they grow increasingly nervous over a final bill.
Led by the giant U.S. Chamber of Commerce, opponents of the Democratic health care drive have spent $24 million on TV commercials over the past month to $12 million spent by labor unions and other backers. That's an abrupt reversal from the vast spending advantage supporters enjoyed most of this year, according to Evan Tracey, president of Campaign Media Analysis Group, which tracks political ads.
More than half the opposition spending has been by the chamber. With the House narrowly approving its health overhaul on Nov. 7 and Senate Majority Leader Harry Reid, D-Nev., drafting his measure behind closed doors, the outpouring of cash underscores how crunch time has arrived for business and other groups trying to shape or scuttle the legislation.
"There's no input from any of us, no input from Republicans" as Reid puts the bill together, said R. Bruce Josten, the chamber's top lobbyist. "So what option do we have than to take our message and story to the American people?"
At the same time, the chamber has circulated an e-mail to other business groups asking them to help fund a $50,000 study by a "respected economist" of the proposed health care overhaul. The study would be used for a letter, ads and other lobbying efforts to argue that the bill "will kill jobs and hurt the economy," according to the e-mail.
It is common practice by interest groups to commission studies or polls that buttress their views, though it is unusual for internal communications about them to be revealed. The e-mail was first obtained by The Washington Post and verified by a chamber official.
Other lobbyists privately speculated Monday that the chamber might abandon its plan for a study for fear that its credibility could instantly be questioned. Asked whether the chamber would continue to pursue the idea, spokeswoman Blair Latoff said, "Now that final bills are emerging from both chambers, an updated review of employer mandates and job impacts is warranted."
Coalitions are also proliferating among business groups hoping to amplify their attacks, including one that is still gearing up and tentatively named the Start Over Coalition. It is envisioned as a huge alliance of trade groups and companies that will use grass roots, local contacts with lawmakers and shoe-leather lobbying to persuade Congress to drop its current effort and settle for far more modest legislation, according to E. Neil Trautwein, a lobbyist for the National Retail Federation.
A complementary group started last month, Employers for a Healthy Economy, already has spent millions of dollars on three sets of TV ads, including one aired nationally that argues Democrats' health care plans would further weaken the economy. Illustrating how convinced lobbyists are that the economic argument is a winner, the group updated the commercial to reflect the recent announcement that the unemployment rate now exceeds 10 percent.
"Call Congress. Tell them the new health care bill is a bill America can't afford to pay," the ad says.
A second ad the group is airing in nine congressional districts thanks local representatives who voted against the House bill. Another criticizes 11 Democratic lawmakers who voted for it, including Reps. Marion Berry of Arkansas and Paul Hodes of New Hampshire.
The 300,000-member chamber, the retail federation, the National Association of Manufacturers and eight other major business organizations comprise Employers for a Healthy Economy.
The chamber has also used e-mails to ask more than 80,000 supporters to contact their lawmakers, saying, "It's important to let your representative know that you will remember this vote next November."
Generally, business groups say they don't like the emerging bills because they'd force companies to provide health coverage for workers and impose new expenses and taxes on employers without slowing the rise in health care costs. But they have not been in lockstep on the issue.
The Business Roundtable, representing chief executives of large corporations, issued a report last week complimenting some Democratic proposals for potentially saving money, like changing how Medicare reimburses doctors and hospitals. It said others — like an optional government-run health plan — could drive up costs.
Supporters of President Barack Obama's health care drive have also geared up their efforts recently, though they've been outgunned.
Health Care for America Now, backed by labor and liberal groups, has spent $9 million this year on TV ads, including $7 million since September as Congress' work has intensified, according to national campaign manager Richard Kirsch. Even so, the group is asking previous donors for more help in response to the other side's stepped-up spending.
"We're very concerned, so we're vigorously looking to raise more money," said Kirsch. "It's easier to scare people about change than to reassure people about change."

Other liberal and labor groups that have run recent ads include Moveon.org, the American Federation of State, County and Municipal Employees, and Americans United for Change.

Obama's political organization, Organizing for America, e-mailed members on its huge mailing list last week, urging action by people in the 32 House districts that Obama carried last year and are represented by Republicans who opposed the House bill. The e-mail said they should visit lawmakers' local offices, adding, "When folks like you take the time to show up in person, tell your story and ask for change, elected officials take notice."

Afghan officials worried over bold attack in east

KABUL – The deaths of 12 civilians in a rocket attack presumably aimed at military officials and local leaders underscores the inability of NATO to successfully defeat the Taliban in eastern Afghanistan, an official said Tuesday.
Monday's attack in Tagab missed the meeting but the rockets hit in the crowded market area, killing 12 Afghan civilians and wounding dozens more. About 15 people were seriously injured enough that they were evacuated to NATO hospitals for treatment, provincial Police Chief Matiullah Safi said.
Brig. Gen. Marcel Druart said Monday that the meeting, known as a shura, continued despite the attack to show that the Taliban cannot disrupt NATO's plans in a tense valley where both sides are competing for influence.
But a provincial council member said that such a bold attack just a day after French and Afghan forces launched a major offensive to secure Tagab Valley shows that the international forces either aren't trying hard enough or just don't want to catch the Taliban.
"They have jet fighters that can see everything. They can see the Taliban. But what is the use? They do not stop the attacks," Mohammad Arif Malakjan said.
Others said that they just felt more than ever that the Taliban threat will not go away.
"The security situation in Tagab is so bad this year," said Najibullah Rahimi, a member of the district council. "The people are demoralized by both sides. The foreigners and the insurgents fight but the civilians are the ones who are sacrificed."
Taliban spokesman Zabiullah Mujahid denied any role in the attack and condemned the civilian deaths, saying international forces must have opened fire. The Islamist extremist group typically does not claim responsibility for attacks that result in civilian deaths.
Rahimi said that it is the repetition of such violent incidents that threatens the valley, because it will prompt retaliation against whoever is deemed responsible.
"If these kinds of incidents happen, it will have consequences in the future because the people are just getting angrier and angrier," he said.

Microsoft co-founder Allen treated for lymphoma

SEATTLE – Microsoft Corp. co-founder and billionaire investor Paul Allen has been diagnosed with non-Hodgkin's lymphoma and is undergoing chemotherapy.
In a memo sent to employees, Jody Allen, Paul Allen's sister and the CEO of his investment firm Vulcan Inc., said the 56-year-old received the diagnosis early this month. According to the memo, Paul Allen has diffuse large B-cell lymphoma, a relatively common form of lymphoma.
Allen battled another form of immune system cancer, Hodgkin's lymphoma, more than 20 years ago and survived. The CEO wrote that Allen "is optimistic he can beat this, too."
"Paul is feeling OK and remains upbeat," she added. "He continues to work and he has no plans to change his role at Vulcan."
Allen founded Microsoft with Bill Gates, a high school friend and fellow computer enthusiast, in 1975.
Gates said in a statement late Monday that Allen remains one of his closest friends.
"Melinda and I have Paul and his family in our thoughts and prayers," he said in the statement, as reported by TechFlash, a tech news Web site. "I know to him be a strong and resilient individual."
Allen served as the company's executive vice president of research and new product development until 1983, when he left to focus on his health.
Allen remained a major shareholder and member of the board, and went on to invest broadly in technology, real estate, sports and the arts.
He formed Vulcan in the mid-1980s to invest in media and communications companies, including America Online, DreamWorks Animation and cable operator Charter Communications Inc. He also co-founded a Silicon Valley research lab that he then shuttered after investing more than $100 million.
Beyond technology, Allen has used his Microsoft earnings to take his interests to an extreme. A longtime sports fan, Allen bought football's Seattle Seahawks and basketball's Portland Trailblazers, and he is part owner of the Seattle Sounders FC, a major league soccer team. Allen has been present at Seahawks games this season, chatting in the locker room with players. He has a band and a recording studio, and built the Experience Music Project, a museum about rock music in Seattle.
Allen has also collected and restored more than 30 vintage airplanes, started a brain science institute and through Vulcan's real estate arm redeveloped a large swath of downtown Seattle known as the South Lake Union neighborhood.
At last count, Allen's net worth totaled about $11.5 billion, making him the 17th richest person in the world according to Forbes' September 2009 tally.

Obama welcomes foreign leaders to the White House

WASHINGTON – President Barack Obama is welcoming German Chancellor Angela Merkel to the White House. The two leaders will hold a morning meeting in the Oval Office.
Obama will then meet with His All Holiness Ecumenical Patriarch Bartholomew. The Orthodox Christian leader is winding up an extended visit the United States.
In the afternoon, the president will participate in the U.S.-European Union Summit in the Cabinet Room. Participants include Swedish Prime Minister Fredrik Reinfeldt, European Commission President Jose Manuel Barroso and European Council High Representative Javier Solana.

Christening Gift

In the Eastern Orthodox Church and the Eastern Catholic Churches of the Byzantine Rite, the baptismal garment is worn by the newly baptized for eight days, after which there is a special ceremony on the eighth day for the removal of the baptismal robe. For adults, the robe is a long, sleeved garment, similar to the Western alb, tied at the waist usually with a white cloth belt or rope. A woman may also cover her head with a white veil (usually a simple kerchif). For infant baptisms, the robe may be a white gown and bonnet, and a white blanket.

Someone who has been baptized as an adult will often be buried in their baptismal robe, if they have not advanced to some higher ministry within the church.

Christening Gift

Wall Street rallies on Ford profit surprise

NEW YORK (AFP) –
Wall Street revved higher in morning trade Monday after a surprise profit reported by Ford Motor Co. and a strong factory sector report helped the market rebound from last week's drubbing.

The Dow Jones Industrial Average climbed 119.11 points (1.23 percent) to 9,831.84 at 1550 GMT, coming off a 2.6 percent slide in last week's action for the blue-chip index.

The Nasdaq composite rose 16.97 points (0.83 percent) to 2,062.08 and the broad-market Standard & Poor's 500 index added 12.48 points (1.20 percent) to 1,048.67.

Market sentiment was helped by news ahead of the bell of Ford's third-quarter profit of 997 million dollars on improvement in its North American business, and comments that it was on track to become "solidly profitable."

Douglas McIntyre at 24/7 Wall Street called the earnings at the number two automaker "a little miracle."

"Almost no one thought Ford could make money in North America -- except Ford," he said.

Gains accelerated after the Institute of Supply Management said its purchasing managers index of the factory sector rose to a stronger-than-expected 55.7 percent, suggesting stronger growth in manufacturing.

"The October ISM suggests the fourth quarter got off to a better than anticipated start," said Ryan Sweet at Moody's Economy.com.

Among the sub-indexes in the ISM survey, the employment index was 53.1 percent, marking a sharp turnaround from last month's level of 46.2 percent and suggesting that factories are starting to add jobs.

Patrick O'Hare at Briefing.com said the market remains in a correction phase after a strong rally of over 60 percent from lows in March.

"It is clear now that the recovery rally has run into a wall of high expectations," he said.

"Participants aren't seeing the broader market respond the way they have grown accustomed to seeing it respond to better-than-feared news."

Among key stocks, Ford powered higher by 8.39 percent to 7.58 dollars after its results surprised analysts expecting another loss from the auto giant.

Clorox Co. added 1.01 percent to 59.83 after the maker of bleach and cleaning products reported better-than-expected earnings in the past quarter.

Meanwhile business lender CIT plunged 64 percent to 25 cents after its weekend announcement of a bankruptcy filing.

Bonds slipped. The yield on the 10-year US Treasury bond increased to 3.426 percent from 3.392 percent Friday and that on the 30-year bond rose to 4.269 percent from 4.236 percent. Bond yields and prices move in opposite directions.