jeudi 18 octobre 2012

10/18 The Guardian World News

     
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China's economy slows for a seventh quarter
October 18, 2012 at 8:20 AM
 

China's GDP grew 7.4% in the third quarter, missing the government's target for the first time since the financial crisis

China's economy slowed for a seventh straight quarter in July-September, missing the government's target for the first time since the depths of the global financial crisis.

The National Bureau of Statistics said GDP grew 7.4% in the third quarter from a year earlier - in line with forecasts from economists polled by Reuters - the first miss of the official target since 6.5% growth in the first quarter of 2009.

"This is within expectations, the economy is showing signs of stabilising, that is good news," said Dong Tao, an economist at Credit Suisse in Hong Kong.

"We think that with rebounding property markets, stabilising export orders, resuming consumption, we probably have seen the bottom of the economy. The economy can bounce back quickly."

While GDP growth at 7.4% would be cause for joy in recession-stalked developed economies, it represents a sharp slowdown for China, where GDP grew 9.2% in 2011 and has averaged an annual rate near 10% for three decades.

The government targets growth of 7.5% for the full year - reduced in 2012 from the previous 8% target - and the consensus forecast of economists polled by Reuters is that it will deliver on it, with an expansion of 7.7%.

Indeed, premier Wen Jiabao was quoted by local media as saying on Wednesday that the economic situation in the third quarter was relatively good, and the government was confident of achieving its goal.

But the remorseless slowdown has confounded forecasters repeatedly this year, with the initial consensus call for growth to bottom in the first quarter being persistently beaten back to its present position of a trough in the third quarter followed by a mild uptick in the fourth quarter.

Some analysts cite electricity usage growth running at roughly half the average rate of the last five years as a manifest sign of economic malaise.

Others disagree. They say there is clear evidence that the financial system's liquidity taps have been opened wide and that fine-tuning policies - Beijing's mantra for a year now - are gaining traction.

The fine tuning includes two interest rate cuts, three cuts to the proportion of deposits banks must keep as reserves - freeing an estimated 1.2 trillion yuan (£117 billion) for lending - and approvals in the last month for infrastructure projects worth about $157 billion (£97 billion), although Beijing has not said explicitly where the money to fund them is coming from.


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Chinese economic growth slows for a seventh quarter
October 18, 2012 at 4:53 AM
 

China's GDP grew 7.4% in the third quarter, missing the government's target for the first time since the financial crisis

China's economy slowed for a seventh straight quarter in July-September, missing the government's target for the first time since the depths of the global financial crisis.

The National Bureau of Statistics said GDP grew 7.4% in the third quarter from a year earlier - in line with forecasts from economists polled by Reuters - the first miss of the official target since 6.5% growth in the first quarter of 2009.

"This is within expectations, the economy is showing signs of stabilising, that is good news," said Dong Tao, an economist at Credit Suisse in Hong Kong.

"We think that with rebounding property markets, stabilising export orders, resuming consumption, we probably have seen the bottom of the economy. The economy can bounce back quickly."

While GDP growth at 7.4% would be cause for joy in recession-stalked developed economies, it represents a sharp slowdown for China, where GDP grew 9.2% in 2011 and has averaged an annual rate near 10% for three decades.

The government targets growth of 7.5% for the full year - reduced in 2012 from the previous 8% target - and the consensus forecast of economists polled by Reuters is that it will deliver on it, with an expansion of 7.7%.

Indeed, premier Wen Jiabao was quoted by local media as saying on Wednesday that the economic situation in the third quarter was relatively good, and the government was confident of achieving its goal.

But the remorseless slowdown has confounded forecasters repeatedly this year, with the initial consensus call for growth to bottom in the first quarter being persistently beaten back to its present position of a trough in the third quarter followed by a mild uptick in the fourth quarter.

Some analysts cite electricity usage growth running at roughly half the average rate of the last five years as a manifest sign of economic malaise.

Others disagree. They say there is clear evidence that the financial system's liquidity taps have been opened wide and that fine-tuning policies - Beijing's mantra for a year now - are gaining traction.

The fine tuning includes two interest rate cuts, three cuts to the proportion of deposits banks must keep as reserves - freeing an estimated 1.2 trillion yuan (£117 billion) for lending - and approvals in the last month for infrastructure projects worth about $157 billion (£97 billion), although Beijing has not said explicitly where the money to fund them is coming from.


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St Louis Cardinals 3 - San Francisco Giants 1 - as it happened
October 18, 2012 at 3:44 AM
 

The St. Louis Cardinals (2-1) weather a three hour rain delay and an injury to Carlos Beltran to defeat the San Francisco Giants (1-2) in Game 3 of the NLCS.




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New York Yankees vs Detroit Tigers - as it didn't happen!
October 18, 2012 at 2:37 AM
 

MLB Playoffs: The New York Yankees and the Detroit Tigers had their ALCS Game 4 postponed on Wednesday - the teams will make up the contest on Thursday




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New York Yankees vs. Detroit Tigers: ALCS Game 4 - live!
October 18, 2012 at 1:59 AM
 

Rolling report: The New York Yankees visit the Detroit Tigers for ALCS Game 4




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New York Federal Reserve 'bomb' plotter ensnared in FBI sting
October 17, 2012 at 10:12 PM
 

Federal authorities arrest 21-year-old Quazi Mohammad Rezwanul Ahsan Nafis who they say attempted to detonate a fake bomb supplied by the FBI

A man has been arrested in New York for allegedly trying to blow up the Federal Reserve with what he believed was a 1,000lb bomb but was in fact a fake device provided by federal agents.

The FBI said its sting operation culminated in the arrest of Quazi Mohammad Rezwanul Ahsan Nafis, 21, in a hotel room near the Fed as he tried in vain to detonate the inert device.

The agency said it had controlled the "entire operation to ensure the safety of the public and New Yorkers", adding that the public "was never at risk". But the FBI's admission that it ran the whole operation will inevitably attract accusations of entrapment.

According to the FBI, Nafis travelled to the US from Bangladesh in January with the intention of conducting a terrorist attack. Upon arrival he "actively sought out al-Qaida contacts within the US to assist in carrying out an attack", the FBI said.

In the course of his search he came across an undercover FBI agent posing as an al-Qaida facilitator. The agent supplied Nafis with 20 50lb bags of fake explosives, the FBI said, and drove to the Federal Reserve with Nafis on Wednesday morning.

During the journey to lower Manhattan the 21-year-old assembled what he thought was a 1,000lb bomb using the material supplied by the undercover agent. When the van arrived at the Federal Reserve, just a few blocks from the World Trade Center, Nafis and the agent left the vehicle and walked to a nearby hotel, where Nafis "repeatedly, but unsuccessfully, attempted to detonate the bomb", which had been assembled using "inert" explosives, the FBI said.

Nafis was arrested by agents from the Joint Terrorism Task Force at the scene.

"Quazi Mohammad Rezwanul Ahsan Nafis, 21, was arrested this morning in downtown Manhattan after he allegedly attempted to detonate what he believed to be a 1,000-pound bomb at the New York Federal Reserve Bank on Liberty Street in lower Manhattan's financial district," the FBI said in a statement.

"The defendant faces charges of attempting to use a weapon of mass destruction and attempting to provide material support to al-Qaida."

Nafis is said to have proposed several targets for the attack, including a "high-ranking US official" and the New York Stock Exchange before settling on the New York Federal Reserve. In a written statement he had professed a desire to "destroy America" and praised Osama bin Laden.

Nafis has been charged with attempting to use a weapon of mass destruction and attempting to provide material support to al-Qaida.

The Federal Reserve bank in New York is one of 12 locations around the country that, along with the Board of Governors in Washington, make up the Federal Reserve System that serves as the central bank of the United States.


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FBI sting operation ensnares New York Federal Reserve 'bomb' plotter
October 17, 2012 at 10:12 PM
 

Federal authorities arrest 21-year-old man who they say attempted to detonate a fake bomb supplied by the FBI

A man has been arrested in New York for allegedly trying to blow up the Federal Reserve with what he believed was a 1,000lb bomb but was in fact a fake device provided by federal agents.

The FBI said its sting operation culminated in the arrest of Quazi Mohammad Rezwanul Ahsan Nafis, 21, in a hotel room near the Fed as he tried in vain to detonate the inert device.

The agency said it had controlled the "entire operation to ensure the safety of the public and New Yorkers", adding that the public "was never at risk". But the FBI's admission that it ran the whole operation will inevitably attract accusations of entrapment.

According to the FBI, Nafis travelled to the US from Bangladesh in January with the intention of conducting a terrorist attack. Upon arrival he "actively sought out al-Qaida contacts within the US to assist in carrying out an attack", the FBI said.

In the course of his search he came across an undercover FBI agent posing as an al-Qaida facilitator. The agent supplied Nafis with 20 50lb bags of fake explosives, the FBI said, and drove to the Federal Reserve with Nafis on Wednesday morning.

During the journey to lower Manhattan the 21-year-old assembled what he thought was a 1,000lb bomb using the material supplied by the undercover agent. When the van arrived at the Federal Reserve, just a few blocks from the World Trade Center, Nafis and the agent left the vehicle and walked to a nearby hotel, where Nafis "repeatedly, but unsuccessfully, attempted to detonate the bomb", which had been assembled using "inert" explosives, the FBI said.

Nafis was arrested by agents from the Joint Terrorism Task Force at the scene.

"Quazi Mohammad Rezwanul Ahsan Nafis, 21, was arrested this morning in downtown Manhattan after he allegedly attempted to detonate what he believed to be a 1,000-pound bomb at the New York Federal Reserve Bank on Liberty Street in lower Manhattan's financial district," the FBI said in a statement.

"The defendant faces charges of attempting to use a weapon of mass destruction and attempting to provide material support to al-Qaida."

Nafis is said to have proposed several targets for the attack, including a "high-ranking US official" and the New York Stock Exchange before settling on the New York Federal Reserve. In a written statement he had professed a desire to "destroy America" and praised Osama bin Laden.

Nafis has been charged with attempting to use a weapon of mass destruction and attempting to provide material support to al-Qaida.

The Federal Reserve bank in New York is one of 12 locations around the country that, along with the Board of Governors in Washington, make up the Federal Reserve System that serves as the central bank of the United States.


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FBI foils bomb plot at New York Federal Reserve in sting operation
October 17, 2012 at 10:12 PM
 

Federal authorities arrest 21-year-old man who they say attempted to detonate a fake bomb supplied by the FBI

A man has been arrested in New York for allegedly trying to blow up the Federal Reserve with what he believed was a 1,000lb bomb but was in fact a fake device provided by federal agents.

The FBI said its sting operation culminated in the arrest of Quazi Mohammad Rezwanul Ahsan Nafis, 21, in a hotel room near the Fed as he tried in vain to detonate the inert device.

The agency said it had controlled the "entire operation to ensure the safety of the public and New Yorkers", adding that the public "was never at risk". But the FBI's admission that it ran the whole operation will inevitably attract accusations of entrapment.

According to the FBI, Nafis travelled to the US from Bangladesh in January with the intention of conducting a terrorist attack. Upon arrival he "actively sought out al-Qaida contacts within the US to assist in carrying out an attack", the FBI said.

In the course of his search he came across an undercover FBI agent posing as an al-Qaida facilitator. The agent supplied Nafis with 20 50lb bags of fake explosives, the FBI said, and drove to the Federal Reserve with Nafis on Wednesday morning.

During the journey to lower Manhattan the 21-year-old assembled what he thought was a 1,000lb bomb using the material supplied by the undercover agent. When the van arrived at the Federal Reserve, just a few blocks from the World Trade Center, Nafis and the agent left the vehicle and walked to a nearby hotel, where Nafis "repeatedly, but unsuccessfully, attempted to detonate the bomb", which had been assembled using "inert" explosives, the FBI said.

Nafis was arrested by agents from the Joint Terrorism Task Force at the scene.

"Quazi Mohammad Rezwanul Ahsan Nafis, 21, was arrested this morning in downtown Manhattan after he allegedly attempted to detonate what he believed to be a 1,000-pound bomb at the New York Federal Reserve Bank on Liberty Street in lower Manhattan's financial district," the FBI said in a statement.

"The defendant faces charges of attempting to use a weapon of mass destruction and attempting to provide material support to al-Qaida."

Nafis is said to have proposed several targets for the attack, including a "high-ranking US official" and the New York Stock Exchange before settling on the New York Federal Reserve. In a written statement he had professed a desire to "destroy America" and praised Osama bin Laden.

Nafis has been charged with attempting to use a weapon of mass destruction and attempting to provide material support to al-Qaida.

The Federal Reserve bank in New York is one of 12 locations around the country that, along with the Board of Governors in Washington, make up the Federal Reserve System that serves as the central bank of the United States.


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Obama steps up criticism of Romney in battle for women voters
October 17, 2012 at 9:52 PM
 

President in Iowa pokes fun of Romney's 'binders full of women' remark and accuses rival of wanting to return to the 1950s

Barack Obama stepped up his attacks on Mitt Romney in the battle to appeal to female voters as he sought to exploit the Republican's clumsy and odd responses during their second presidential debate.

Women's issues were prominent in Tuesday night's debate as Obama and Romney clashed over gender equality and contraception.

Obama is widely judged to have won the debate, undoing at least some of the damage caused by his painfully poor showing in the first one a fortnight ago.

On the campaign trail in Iowa Wednesday, Obama latched on to some of the remarks made by Romney, in particular a bizarre one about being offered "whole binders full of women" when searching for female recruits to his cabinet when he was governor of Massachusetts.

The comment went viral on the internet, with some complaining that Romney was being patronising towards women, and others expressing puzzlement over what he was talking about.

Obama poked fun of him at a rally in Iowa. "I tell you what: we don't have to collect a bunch of binders to find qualified talented women," Obama said.

The president, wearing a pink wristband to promote breast cancer awareness, hammered home the point just in case anyone thought he was just making a stray remark.

"You can choose to turn back the clock 50 years for women, gays and immigrants – or you can move us forward," Obama said.

The Obama campaign has repeatedly challenged Romney on his views on contraception and abortion, and accused him of wanting a return to the 1950s.

In Iowa, Obama, who favours ready access to contraception and supports abortion, said: "I certainly don't think politicians should control the healthcare that you get."

He made the point that equal pay was not just a matter of principle, but a personal affair, too. As father of two daugheters, he wanted them to be paid the same as other parents' sons.

Female voters have jumped to top priority for both Obama and Romney. Until recently, Obama had enjoyed a double-digit lead among women over Romney, more than enough to compensate for Romney's lead among white males. But Romney's team claims Obama's lead among women has gone, though the Obama team disputes this.

A Gallup seven-day poll tracking poll puts Romney ahead of Obama, 51% to 45%, among likely voters, though this was taken before Tuesday night's debate.

Romney has also reduced Obama's lead in Wisconsin, a state that initially was not included as a swing state on the assumption it was going to Obama. A new Marquette University poll puts Obama on 49% to Romney's 48%.

Over the past few weeks, Romney has been repositioning himself in the centre and has softened his position on women's issues. His campaign put out an ad on Monday insisting that women's right to contraception and abortion would not be harmed if he was president.

His running mate, Paul Ryan, Wednesday attempted to explain away the 'binders' remark. "All he simply meant was that he went out of his way to try to recruit qualified women to serve in his administration when he was governor," Ryan, who also said that Romney had an exceptional record in recruiting women, told CBS. "That's really what he was saying."

Romney has shifted ground during his political career, from relatively moderate while governor of Democratic-leaning Massachusetts to strongly conservative on social issues during the Republican primaries and caucuses when he said he would appoint to the supreme court judges who would overturn abortion rights.

During the debate, Romney accused Obama of misrepresenting his position on contraception, insisting he was in favour of it being widely available.

In the debate, Obama came across as the more sympathetic to women's rights. In exchanges on equal pay, the president said: "This is not just a women's issue. This is a family issue. This is a middle-class issue. And that's why we've got to fight for it."

The comment about "binders full of women" came during exchanges on equal rights. Romney said that as governor of Massachusetts he was concerned about the shortage of women in his cabinet.

"I said: 'Well, gosh, can't we find some women that are also qualified?' And so we took a concerted effort to go out and find women who had backgrounds that could be qualified to become members of our cabinet," Romney said. The remarks went a long way to calming the sense of panic that had begun to enter Democratic ranks.

Obama, transformed from the listless, unfocused candidate who lost badly to Romney in the first presidential debate in Denver a fortnight ago, landed damaging blows on his Republican rival in telling exchanges over women's rights, the Benghazi consulate attack and tax proposals.


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Meningitis outbreak: three more patients die as death toll rises to 19
October 17, 2012 at 9:22 PM
 

Officials from the CDC say they have identified 247 cases of fungal meningitis linked to contaminated steroid shots

A further three patients have died from a rare form of meningitis linked to contaminated steroid shots prepared by a Massachusetts pharmacy now the subject of a criminal investigation.

The Centers for Disease Control and Prevention (CDC) said Wednesday that a total of 19 deaths were now known to have occurred, with 247 cases of fungal meningitis identified across 15 states.

It comes a day after federal agents from the US Food and Drug Administration (FDA) raided the New England Compounding Center (NECC), a pharmacy compounder in the Boston suburb of Framingham, as part of a widening investigation into the outbreak.

The raid, which was supplemented by local police officers, came amid growing concerns that other medications mixed at the company may be contaminated.

In a statement Tuesday, Carmen Ortiz, the US attorney for Massachusetts, confirmed that prosecutors were looking at potential criminal charges against the once obscure pharmacy.

"I can confirm that this office and our law enforcement partners are investigating allegations concerning the New England Compounding Center," she said. But Ortiz added that it was "entirely premature" to speculate about what might be uncovered at the centre.

FDA investigators have already found evidence of lapse health and safety standards at the suspected source of the deadly outbreak. Experts, sent to the NECC's premises in the immediate aftermath of the outbreak, found a fungal contaminate in a sealed vial of the steroid methylprednisolone acetate.

They also found a "foreign material" in another, opened container.

The pharmacy compounder is also known to have a chequered history of violations standards, having been cited on numerous occasions by the FDA.

Earlier this week, the FDA sent out a warning to clinics across the country to contact all patients injected with any drug from the pharmacy, to alert them of the risk of infection.

It followed the discovery that a transplant patient who had received a heart drug mixed made by NECC had developed an infection. Until that point, all those known to have been made ill by drugs thought to have derived from the Massachusetts company have received a steroid shot for treatment in back pain.

Although the FDA said there may be another explanation for the infection in the heart transplant patient, a blanket call for medical facilities to contact all patients potentially at risk was made.

Meanwhile, a lawyer for NECC said Tuesday's raid by federal agents was unnecessary.

"It is difficult to understand the purpose of this search, since we have been clear that [NECC] would provide, and has provided, anything requested. We've been clear that warrants weren't needed," Paul Cirel, of the firm Collora LLP in Boston, said in a statement.

As federal agents search the premises, US lawmaker called on the justice department to launch an investigation of whether the compounding pharmacy violated federal laws as well as state legislation.

Pharmacy compounders traditionally mix drugs to cater for the specific needs of individual patients.

But in the case of the NECC, thousands of doses were being prepared and shipped out across the US. More than 17,000 individual portions of the suspect steroid shot are believed to have been delivered to 76 clinics in 23 states.

So far, 15 of those states have recorded cases of fungal meningitis linked to the Massachusetts pharmacy: Tennessee, Michigan, Pennsylvania, New Hampshire, Illinois, Indiana, Minnesota, New Jersey, Texas, Idaho, Maryland, North Carolina, Virginia, Ohio and Florida.

Health experts believe the outbreak is far from over, with one suggesting that infections were "nowhere near the end".

William Schaffner, an infectious diseases expert at the Vanderbilt University Medical Center in Nashville, said Tuesday that he expects a "steady increase" in the number of fungal meningitis infections over the coming weeks.


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No last act of charity as Tour de Lance reaches end of the yellow road | William Fotheringham
October 17, 2012 at 8:05 PM
 

The Nike move to drop Lance Armstrong is a defining moment as the corporation has a history of sticking with its athletes

How quickly empires crumble. Wednesday's announcement that Lance Armstrong has stood down from his position as chairman of his Livestrong cancer charity and lost the backing of Nike means the collapse of the entire Armstrong edifice that mushroomed so quickly between 1999 and 2001, when, almost overnight, the Texan went from being a relative obscurity – the cyclist no European team wanted when he was seeking employment in 1997 – to a sporting icon, with the wealth and the connections that go with these things.

The Nike move is a defining moment in the Armstrong saga, as the corporation has a history of sticking with its athletes, a case in point being Tiger Woods during his marital troubles.

It is also defining because of the extent to which the corporation bought into cycling, establishing a massive presence on the ground during the Tour de France, part of the American invasion of the race in the early Noughties which led, in part, to Armstrong's lack of popularity in France.

The end of Armstrong's chairmanship of Livestrong has other implications. Like Nike, the charity bought into the Tour de France, most famously late on in his reign, printing vast numbers of mottoes in yellow paint supporting Armstrong on the tarmac. But critically, it ends the notion that in attacking Lance over doping, the cancer community is being put under assault.

That was part of the fiction that supported the seven-times Tour winner for so long against his attackers; while you would need to be a cynic of the first order to claim he founded the charity as a deliberate front for his doping, it cannot be denied that it served his purposes later.

There is not a great deal left now for the Texan, other than a belated confession which will do nothing to repair his reputation.

In its sheer scale and the significance of the personalities involved, the Armstrong saga already far outstrips the defining doping scandal within cycling, the Festina debacle of 1998. But like the Festina scandal, Lance-gate has acquired a life and momentum of its own. Not only does it touch corporate America and the world of high-profile celebrity charity – how long will the likes of Robin Williams be sticking with him, one wonders? – its tentacles reach into so many corners of the cycling world.

On 12 December, a court case between the International Cycling Union against the writer Paul Kimmage will be heard in a Swiss court; the governing body is suing the writer for having alleged that it covered up a positive test involving Armstrong in the Tour of Switzerland in 2001, a charge it vigorously denies. A defence fund within the cycling community has raised over $60,000 (£37,000) to support Kimmage in a matter of weeks, and with the allegations repeated in the Usada report, the case looks set to test the robustness of the UCI's assertions that it did not give Armstrong favourable treatment over the years.

The UCI, its president Pat MacQuaid and its honorary vice-president Hein Verbruggen are increasingly under pressure over their treatment of the man who was the biggest star the sport had ever produced. Its former head of anti-doping Anne Gripper has publicly questioned the UCI's decision to allow Armstrong, as he made his comeback to racing in 2009, to compete outside the six-month window – albeit by a mere 13 days – within which he was required to be available for random drug-testing.

It is not just the UCI in the firing line. The long list of cyclists named in the report who either confessed to doping in the Armstrong era or are connected to him and his trainer Michele Ferrari means that many teams are now under strutiny. That was shown on Tuesday when the Belgian squad Omega-Pharma-Quickstep sacked the American Levi Leipheimer, who had confessed to doping as part of his testimony against Armstrong.

There has been some hard thinking at Team Sky as well, prompted by the presence of testimony from their former rider Michael Barry in the Usada file, in which the Canadian admitted to doping, in the years before he joined the British team, and media questions over their hiring of the former Rabobank doctor Geert Leinders, which went against their principle that their team medics would come solely from outside cycling.

The connection between the Sky road captain Michael Rogers and Armstrong's Italian trainer Ferrari, albeit during the 2005 season and with Rogers denying any wrongdoing, has also been made public by the Usada file, while they may also be wondering about the historic link between the Texan and their lead directeur sportif Sean Yates, who worked at Armstrong's Discovery Channel in 2005 and was his mentor at the Motorola team from 1992 to 1996.

They appear likely to beef up their zero-tolerance policy on riders and staff with connections to doping in the past, and are expected to give some details as early as Thursday evening.


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Greece close to €31bn bailout deal
October 17, 2012 at 7:34 PM
 

As European leaders prepare for summit, troika says broad outlines agreed on austerity measures Greece must impose

Greece has reached an agreement on "most of the core measures" to secure the release of the next €31bn tranche of its bailout as Europe's leaders prepared for a crucial two-day summit.

A statement from the troika of the European Commission, European Central Bank and International Monetary Fund said it had left Athens after "comprehensive and productive discussion" agreeing the broad outlines of the austerity measures Greece will be forced to impose in exchange for the latest payout.

Speaking in Bucharest at a meeting of right-of-centre leaders from across Europe, Greece's prime minister Antonis Samaras said: "I'm confident we're doing everything we have to do in order to get [a deal] and get it soon, so that we can move towards a recovery."

The details are expected to be finalised next week and any new commitments Samaras makes will be scrutinised by the electorate, which voted him into power earlier this year on the promise of exacting more lenient conditions from the troika.

Greece has seen violent protests against the stringent spending cuts and structural reforms imposed as part of previous bailout deals.

Europe's financial markets had rallied on Wednesday even before the upbeat signals from Greece, after Spain dodged a widely expected downgrade to junk status from ratings agency Moody's.

Spanish 10-year bond yields fell to a six-month low of 5.5% and the Ibex stock market in Madrid jumped by 1.4%, after Moody's confounded investors' expectations and left the country's rating unchanged.

In London, the FTSE100 closed up 0.69% at 5910.91.

Moody's said its judgment was based on the expectation that Spain would seek help from the single currency's bailout fund, the European Stability Mechanism.

That in turn could trigger massive purchases of Spanish bonds under the ECB's plan for "outright monetary transactions", announced by its president, Mario Draghi, last month, helping to drive the country's borrowing costs down further.

But Spain's prime minister, Mariano Rajoy, has so far resisted applying for help from the eurozone, fearing that it will mean surrendering political sovereignty.

Despite Wednesday's more optimistic mood, some analysts cautioned that even if a Spanish bailout does trigger the OMT, it will not bring the long-running crisis to a close.

"The OMT is a liquidity measure, it does not address solvency," said economists at City consultancy Fathom. "As such, it can only buy time; it cannot solve the structural flaws behind the European debt crisis. A more comprehensive resolution must involve some debt restructuring, both public and private, in peripheral economies to restore sustainability and lay the foundation for growth."

Even the stronger economies at the eurozone's core have seen growth hit hard by the crisis and the German government was forced to concede on Wednesday that it now expects to eke out GDP growth of only 1% in 2013, not the 1.6% it had forecast.

Economy minister Philipp Rösler said: "Germany is navigating stormy waters because of the European sovereign debt crisis and an economic weakening in emerging nations in Asia and Latin America." But he insisted: "We are still talking about 1% growth, so there's no talk about a crisis for Germany.


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Manssor Arbabsiar pleads guilty to plotting to kill Saudi Arabian envoy
October 17, 2012 at 7:25 PM
 

Iranian American, 58, enters guilty pleas at US court in Manhattan and claims Iranian army was involved in the plot

A Texas man pleaded guilty on Wednesday to plotting to assassinate Saudi Arabia's ambassador to the United States. The man said he had agreed to hire what he thought was a drug dealer in Mexico last year, for $1.5m, to carry out the attack with explosives at a Washington restaurant.

Manssor Arbabsiar, 58, entered the plea to two conspiracy charges and a murder-for-hire count in US district court in Manhattan, where Judge John F Keenan repeatedly asked him whether he intended to kill the ambassador. Arbabsiar, a US citizen who holds an Iranian passport, said he did.

Sentencing was set for 23 January, when Arbabsiar will face up to 25 years in prison. A trial had been scheduled for January.

President Barack Obama's administration has accused agents of the Iranian government of being involved in the plot. At the plea, assistant US attorney Edward Kim asked Arbabsiar if officials in the Iranian military had been involved in the plot. Arbabsiar said they had been.

Arbabsiar, who lived in Corpus Christie, Texas, for more than a decade, said he went to Mexico last year to meet a man named Junior, "who turned out to be an FBI agent". He said that he and others had agreed to arrange the kidnapping of the ambassador, Adel Al-Jubeir, but Junior said it would be easier to kill the ambassador.

Arbabsiar has been held without bail since he was arrested on 29 September 2011, at John F Kennedy International Airport. He was brought into court in handcuffs. He spoke English and did not use a translator, despite saying he understood only about half of what he read in English. Bearded and bespectacled, he smiled several times, including in the direction of courtroom artists who were seated in the jury box when he entered court.

Defense lawyers say Arbabsiar suffers from bipolar disorder.

Kim said that if the government had proceeded to trial, it would have presented a jury with secretly recorded conversations between Arbabsiar and a confidential source, along with Arbabsiar's extensive post-arrest statement to authorities and emails and financial records.

Authorities have said they secretly recorded conversations between Arbabsiar and an informant with the Drug Enforcement Administration after Arbabsiar approached the informant in Mexico and asked his knowledge of explosives for a plot to blow up the Saudi embassy in Washington. They said Arbabsiar later offered $1.5m for the death of the ambassador.

Arbabsiar admitted Wednesday that he eventually made a $100,000 down payment that was wired from an overseas account through a Manhattan bank.


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Iran sanctions 'putting millions of lives at risk'
October 17, 2012 at 6:05 PM
 

Western sanctions hitting import of medicines for diseases including multiple sclerosis and cancer, charity warns

Millions of lives are at risk in Iran because western economic sanctions are hitting the importing of medicines and hospital equipment, the country's top medical charity has warned.

Fatemeh Hashemi, head of the Charity Foundation for Special Diseases, a non-government organisation supporting six million patients in Iran, has complained about a serious shortage of medicines for a number of diseases such as haemophilia, multiple sclerosis and cancer.

Sanctions over Tehran's nuclear programme are not directly targeting hospitals but measures imposed on banks and trade restrictions have made life difficult for patients, according to Hashemi, the daughter of former Iranian president Akbar Hashemi Rafsanjani. Two of her siblings are in prison on separate anti-state charges.

"More than anything else, we have a lack of medicines for patients suffering from cancer and multiple sclerosis," Hashemi told the conservative website Tabnak. "Those with thalassaemia or in need of dialysis are facing difficulties too – all because of sanctions against banks or problems with transferring foreign currency."

Iran's central bank, the only official channel for Iranians to transfer money abroad, is a major target of the sanctions. Ordinary Iranians, including academics thereforehave no way of paying for services overseas, such as booking a hotel or subscribing to international journals.

Although foreign providers are not legally bound to refuse services to Iranians, they err on the safe side for fear of getting into trouble. Many Iranian Britons or Iranian Americans living in the west have complained they have had their credit accounts closed even though they have no connection with the Iranian regime or, in some cases, when they are allied with the opposition.

In midsummer, Hashemi wrote to United Nations secretary-general Ban Ki-moon calling on him to intervene for the health of Iranian patients who, she said, have had "their basic human right" taken away from them because of sanctions.

Earlier this month, it emerged Ban had warned the UN in a report that humanitarian operations in Iran were being harmed because of sanctions.

"The sanctions imposed on the Islamic Republic of Iran have had significant effects on the general population, including an escalation in inflation, a rise in commodities and energy costs, an increase in the rate of unemployment and a shortage of necessary items, including medicine," he said.

"The sanctions also appear to be affecting humanitarian operations in the country," he wrote. "Even companies that have obtained the requisite licence to import food and medicine are facing difficulties in finding third-country banks to process the transactions."

Mozhgan Elmipour, the mother of a four-year-old Iranian girl who was brought to London from Tehran for a life-saving surgery on her oesophagus, said: "Iranian hospitals have serious difficulties because of sanctions and not everyone in the country is as lucky as my daughter to be able to afford to come here."

Rojan Pirsalehi, whose oesophagus was damaged after swallowing a battery at the age of two, is being treated at Great Ormond Street hospital in London.

Her parents could not afford to bring her to the UK but thanks to a media campaign in Iran and help from the Iranian government enough funds were raised. The UK government facilitated her journey to London by granting visas to her family. The Guardian initially highlighted her case in June.

A Foreign Office spokesperson said: "We've been clear that financial sanctions against Iran are not intended to affect humanitarian goods and payments. That's why the UK argued for and secured specific exemptions to allow humanitarian transactions to take place."

The spokesperson added: "Whilst it is true that sanctions are having an impact on the Iranian population, this is compounded by the Iranian government's economic mismanagement. Iran's leaders are responsible for any impact on their people and can make the choices which would bring sanctions to an end."

Western sanctions targeting sectors from banking to trade and energy are aimed at forcing Iran's leaders to comply with their international obligations on nuclear activities.

Tehran's leaders have remained defiant against six UN security council resolutions calling on them to halt enrichment of uranium and they have refused to co-operate fully with the International Atomic Energy Agency over their nuclear programme.


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Lance Armstrong case: Nike about-turn completes the disintegration
October 17, 2012 at 5:57 PM
 

• Backer drops Texan as he stands down as charity chairman
• 'Nike does not condone use of performance-enhancing drugs'

One week after the publication of the Usada report that revealed the gory details of Lance Armstrong's doping, laying to rest any remnants of his sporting credibility, the public persona of the former seven-times Tour de France winner began disintegrating. With damage limitation clearly their goal, Armstrong's long-time backer Nike dropped the Texan, as did the electronics retailer Radio Shack, and he almost simultaneously stood down as the chairman of the cancer foundation Livestrong, which he had founded just over a year after his diagnosis for testicular cancer in September 1996.

Armstrong's resignation from Livestrong came in advance of a ball on Friday in his hometown of Austin, Texas, to celebrate the 15th anniversary of the foundation's inception, with thousands expected to attend, including stars such as the actor Robin Williams, a longstanding Armstrong fan. A statement from the charity said that "to spare the foundation any negative effects as a result of controversy surrounding my cycling career, I will conclude my chairmanship." Armstrong's responsibilities transferred to the vice-chairman Jeff Garvey; he will remain on the Livestrong board.

Following publication of the massive Usada report condemning Armstrong as a serial drug taker – who coerced team-mates into blood doping and bullied witnesses who attempted to blow the whistle on him – Nike had stated only a week earlier that they would stand by their most prominent athlete. This was an abrupt U-turn, citing "seemingly insurmountable evidence that [Armstrong] participated in doping and misled Nike for more than a decade". That brought to an end an association which had lasted since Armstrong's first Tour win in 1999, and at one time seen the US company produce the Tour de France leader's celebrated yellow jersey. The Armstrong sponsorship had spearheaded the company's move into cycling clothing on the back of his Tour successes, and he was said to earn about $7.5m (£4.6m) annually from the connection.

The sponsor added: "It is with great sadness that we have terminated our contract with him. Nike does not condone the use of illegal performance-enhancing drugs in any manner. Nike plans to continue support of the Livestrong initiatives created to unite, inspire and empower people affected by cancer." A spokesman also confirmed Nike will change the name of the Lance Armstrong Fitness Center at its world headquarters in Beaverton, Oregon.

Livestrong, Armstrong and Nike are a closely-knit trio thanks to the sportswear company's production of the yellow silicone Livestrong wristband which was introduced in May 2004. It has sold more than 80 million units, and having been initially launched to raise $25m (£15.4m)for the cancer charity, achieved its target within six months.

It was worn by many of the riders in the 2004 Tour, which was won by Armstrong, and has been seen on the wrists of celebrities as diverse as the actor Matt Damon and various US presidential candidates. Recently, there have been reports of wearers crossing out the "V" to create the motto "LieStrong".

RadioShack had been a backer of Armstrong's since 2009, when it announced that it would begin sponsoring his cycling team the following season and also use him for television commercials and advertising campaigns. Bu on Wednesday the company told the Wall Street Journal it had severed ties with him. The sunglasses maker Oakley last night said they were reviewing their relationship with the Texan, although he does retain other sponsorships, some of which pre-date his first Tour de France win in 1999, such as the sportsglasses maker Oakley and the cycle manufacturer Trek. Anheuser-Busch – which sponsors the RadioShack-Nissan-Trek squad – said it has "decided not to renew our relationship with Lance Armstrong when our current contract expires at the end of 2012. We will continue to support the Livestrong Foundation".

As well as possible moves by these sponsors, Armstrong faces other issues in coming weeks if the UCI ratifies the Usada decision to strip him of his Tour titles. The Sunday Times will look to recover around £1m in costs arising from a libel case in 2004; Armstrong could also face a counter suit from promotions company SCA which insured bonuses for four of his wins to the tune of $12m (£7.4m).


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Obama returns to campaign trail lifted by debate showing against Romney
October 17, 2012 at 5:54 PM
 

President lands blows on Romney over Benghazi, women and tax, and heads to Iowa and Ohio before third debate next week

Barack Obama hit the campaign trail only hours after coming out on top in a feisty debate with Mitt Romney that went a long way to calming the sense of panic that had begun to enter Democratic ranks.

Obama, transformed from the listless, unfocused candidate who lost badly to Romney in the first presidential debate in Denver a fortnight ago, landed damaging blows on his Republican rival in telling exchanges over women's rights, the Benghazi consulate attack and tax proposals.

An odd, patronising remark Romney made to "whole binders full of women", in reference to job appointments, may end up bringing to a halt a shift of women voters in Romney's direction that has been worrying the Obama campaign.

It will be several days before reliable polls gauge the overall response to the debate but Democrats expressed confidence that Obama's showing would lift them.

"I don't know what the polls are going to say but I feel very, very good about going into the next 20 days or so," vice-president Joe Biden told ABC.

However, although Obama was deemed to have won the second presidential debate in Long Island, it was not as lopsided as the first and so is unlikely to have the same dramatic impact on the polls. Since Denver, Romney has eaten into Obama's lead and the two are now tied nationally and in most of the swing states, suggesting a tight finish on 6 November.

Romney had a few good moments of his own in the debate, especially over the economy, with an answer that might have resonated with voters.

"I think you know better," Romney told a questioner. "I think you know that these last four years haven't been so good as the president just described, and that you don't feel like you're confident that the next four years are going to be much better either."

Obama, after flying back to Washington from the debate on Tuesday night, left the White House around 8am, heading for two swing states, Iowa and Ohio, the latter being the state that may in the end decide the election.

As part of the push to hold Ohio that has seen Democrats flooding the state with volunteers, Bill Clinton and Bruce Springsteen are appearing together at a free concert in Parma.

Romney also campaigned in a swing state, Virginia.

He and Obama go into the third and final presidential debate, in Boca Raton, Florida, on Monday, having won one debate each. The Florida debate is devoted to foreign policy, which, in theory, should be easier for Obama, who as president deals with security and overseas issues daily.

The Obama team, in the spin room next to the Long Island debating hall, were in better spirits than their Romney counterparts.

Conservatives – some of them, anyway – reluctantly awarded the night to Obama. The conservative commentator Charles Krauthammer told Fox News: "I think on points, if you were scoring it on points, Obama wins on points."

On the same network Bush's former strategist, Karl Rove, who runs one of the biggest Super Pacs backing Romney, criticised Obama for failing to set out what he would do in a second term but also conceded that Romney had made mistakes.

"Governor Romney, in my opinion, made a mistake asking questions of President Obama. You never ask a question and give your opponent a chance to offer an answer," Rove said.

In the 90-minute debate, watched by tens of millions of Americans, Obama appeared to have learned lessons from the previous debate, retaining eye contact with Romney, with the questioners and with the camera, instead of burying his head in a notebook.

His personal hostility towards Romney was apparent during several exchanges when the two went head-to-head. He accused Romney of being more extreme on social issues than George W Bush and described his tax plans as "a sketchy deal".

But the most politically damaging moment for Romney came when he bungled his attack on the Obama administration's handling of the assault on the Benghazi consulate in which the US ambassador Chris Stevens and three other Americans were killed.

It should have been an easy one for Romney, after days of shifting accounts from administration officials who initially blamed the attack on a protest over an anti-Islamic film but have now conceded it was a pre-planned terrorist attack.

Obama's response provided the most moving and powerful part of the night. "The day after the attack, governor, I stood in the Rose Garden, and I told the American people and the world that we are going to find out exactly what happened, that this was an act of terror.

"And the suggestion that anybody in my team, whether the secretary of state, our UN ambassador, anybody on my team would play politics or mislead when we've lost four of our own, governor, is offensive. That's not what we do. That's not what I do as president. That's not what I do as commander-in -chief."

When Romney tried to challenge the president over his assertion that he had described it as an act of terror, the moderator Candy Crowley intervened to say that Obama was correct. "He did, in fact, sir," she told Romney, who was unable to counter-attack.

Conservatives criticised Crowley's intervention, pointing out that Obama had been talking generally and ambiguously about an act of terror and it had not necessarily been a direct reference to Benghazi.

Obama also hit home in an exchange over Romney's investments in China. When the Republican responded that Obama should look at the investments in his own pension, Obama, with his trademark grin, shot back: "I don't look at my pension. It's not as big as yours."

The power of the quip was that it encapsulated the image the Democrats have been labouring to put across of Romney as rich and elitist, in a different league from the majority of Americans.

The two are battling hard for women's votes. Obama has for months enjoyed a bigger share of support among potential women voters but Romney has been closing the gap over the last fortnight. But he may have lost some with an odd comment about when he governor of Massachusetts, he was concerned about lack of women in his cabinet and asked women's groups for names and said they came forward with "whole binders full of women".


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Syria crisis: Brahimi pushes for truce - Wednesday 17 October 2012
October 17, 2012 at 5:53 PM
 

Follow the day's developments amid diplomatic efforts to secure a temporary ceasefire in Syria




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George Zimmerman trial date set for June over Trayvon Martin killing
October 17, 2012 at 5:52 PM
 

Florida judge sets a tentative date for next year's trial, in which Zimmerman is charged with second-degree murder

George Zimmerman, the neighborhood watchman charged with the murder of teenager Trayvon Martin, will go on trial on 10 June, a judge ruled on Wednesday.

The trial date was set by judge Debra Nelson in a Florida court, but the court noted that there are still several unresolved matters to complete. As such the start of the trial may be pushed back further.

Zimmerman is charged with second-degree murder in the shooting of 17-year-old Martin in February – an incident that led to protests across the US and put state gun laws and race relations in America under a spotlight.

Martin was killed as he walked back to the home of his father's girlfriend in Sanford, Florida, after a trip to a convenience store. After trailing the youth, whom Zimmerman claimed was acting suspiciously, the pair engaged in a fight during which Martin was fatally shot.

Zimmerman claimed self-defence, citing Florida's controversial stand-your-ground law. He has pleaded not guilty to charges of second-degree murder.

Supporters of the Martin family have claimed that the shooting had a racial element, and that Zimmerman may have targeted Martin for attention because he was black.

A recorded conversation between the shooter and a 911 operator shortly before the incident may have contained a racial slur, some have claimed, although this has been dismissed by Zimmerman and his lawyers.

Nonetheless, the allegations stoked tensions in the immediate aftermath of the shooting on 26 February, prompting demonstration and claims of police mishandling in the case.

Next year's trial is expected to last three weeks.

Attorneys in the case return to court on Friday for what is expected to be a lengthy hearing for arguments on several motions, including the defence asking for more time to interview state witnesses.


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Nike drops deal with Lance Armstrong after he 'misled us for a decade'
October 17, 2012 at 5:41 PM
 

• Sponsor confirms it has terminated Armstrong's deal
• 'Nike does not condone the use of illegal drugs'
• Armstrong stands down as chairman of Livestrong charity

Nike has severed its connections with Lance Armstrong, finally acknowledging the "seemingly insurmountable" evidence that that the seven-times Tour de France winner was a drugs cheat.

In a near-simultaneous statement, Armstrong said he would relinquish his position as chairman of Livestrong, the cancer charity he founded, in order to "spare the foundation any negative effects" after a damning report by the United States Anti-Doping Agency (Usada), which concluded he ran a sophisticated doping ring for years.

Armstrong's decision to step down from Livestrong allowed Nike to continue to support the initiative. In the US, 98 products bearing the Livestrong name are sold by Nike.

Nike – which initially indicated that it would stand by Armstrong – said in a statement it had been misled by Armstrong and did not "condone the use of illegal performance-enhancing drugs".

The full statement said: "Due to the seemingly insurmountable evidence that Lance Armstrong participated in doping and misled Nike for more than a decade, it is with great sadness that we have terminated our contract with him. Nike does not condone the use of illegal performance enhancing drugs in any manner.

"Nike plans to continue support of the Livestrong initiatives created to unite, inspire and empower people affected by cancer."

Armstrong has been dogged for years by allegations that he cheated his way to his Tour de France titles, while he was lead cyclist with his US Postal Service and Discovery Channel teams. Last week, Usada released a 1,000-page dossier which concluded that what had transpired amounted to "the most sophisticated, professionalised and successful doping programme that sport has ever seen".

Despite strongly denying the doping allegations, Armstrong elected not to fight Usada's claims, saying he thought the process was unfair.

The loss of the Nike deal will come as a financial blow, but stepping down from Livestrong is likely to be more personally damaging. Armstrong, a cancer survivor, set up the foundation in 1997, in order to help inspire others battling the illness. His inspiring story, of recovering from testicular cancer that had spread to his lungs and brain and then winning the world's most famous cycle race, helped the foundation grow from a small operation in Texas into one of the most popular charities in the US.

The cyclist insisted he was drug free at a time when doping was rampant in professional cycling. In 2004, the foundation introduced yellow "Livestrong" bracelets; more than 80 million were sold, creating a global symbol for cancer awareness and survival.

Armstrong, who was not paid a salary as chairman of the Lance Armstrong Foundation, will remain on its board, but his duties will be handed to the vice chairman, Jeff Garvey.

"This organisation, its mission and its supporters are incredibly dear to my heart," Armstrong said in a statement on Wednesday. "Today therefore, to spare the foundation any negative effects as a result of controversy surrounding my cycling career, I will conclude my chairmanship."

As chairman, Armstrong did not run the foundation's day-to-day operations, which are handled by the Livestrong president and chief executive, Doug Ulman. Ulman had said that Armstrong's leadership role would not change.

Armstrong's statement said he would remain a visible advocate for cancer issues. He is expected to speak at Friday night's 15th-anniversary gala for Livestrong in Austin, Texas.

"My family and I have devoted our lives to the work of the foundation and that will not change," Armstrong said. "We plan to continue our service to the foundation and the cancer community. We will remain active advocates for cancer survivors and engaged supporters of the fight against cancer."


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US housing starts jump to four-year high, says commerce department
October 17, 2012 at 4:05 PM
 

Rise is fastest since July 2008, prompting hopes that strengthening housing recovery will help economy grow

US builders started construction on homes in September at the fastest rate since July 2008, a further indication that the housing recovery is strengthening and could help the economy grow.

The commerce department said Wednesday that builders broke ground on single-family homes and apartments at a seasonally adjusted annual rate of 872,000 in September, an increase of 15% from the August level. Single-family construction rose 11% and apartment building increased 25.1%. Applications for building permits, a sign of future construction, jumped nearly 12% to an annual rate of 894,000, also the highest since July 2008.

"If there was any doubt that the housing market was undergoing a recovery, even a modest one in the face of the terrible 2008 decline, those doubts should be erased by now," said Dan Greenhaus, chief global strategist at BTIG.

Construction activity is now 82.5% higher than the recession low that was hit in April 2009. Activity is still well below the roughly 1.5 million rate that is consistent with healthier markets, but the surge in construction suggests builders believe the housing rebound is durable.

"Today's data reinforce the view that while housing is not going to be the driver of economic activity that it was in the middle of the prior decade, neither will it be the anchor on activity that it has been in recent years," Greenhaus said.

Construction activity rose in three of the nation's four regions, the biggest increases coming in the West and South, where housing starts increased by nearly 20%. Construction of new homes and apartments rose 6.7% in the Midwest but fell 5.1% in the Northeast.

Builder confidence reached at a six-year high this month, according to a survey by the National Association of Home Builders. The group's index of builder sentiment rose to a reading of 41. While that is still below the level of 50 that signals a healthy market, it has steadily climbed over the past year, from a reading of 17.

Sales of new and previously owned homes have been slowly improving this year, and home prices are starting to show consistent gains. Record-low mortgages have encouraged more people to buy, and the Federal Reserve's aggressive policies could push long-term interest rates even lower, making home-buying affordable for the foreseeable future.

Housing is expected to keep improving next year. But many economists say economic growth will stay muted until companies step up hiring and consumers start spending more.

Though new homes represent less than 20% of the housing-sales market, they have an outsized impact on the economy. Each home built creates an average of three jobs for a year and generates about $90,000 in tax revenue, according to data from the home builders group.


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Who controls the internet? | Jemima Kiss
October 17, 2012 at 3:25 PM
 

Ahead of a Google+ Hangout on the battle for the internet, Jemima Kiss looks at how tech giants are fighting for supremacy

Have you ever noticed that wherever you are in the world, every telephone keypad looks the same? Or wondered why satellites don't crash into each other? Or why you dial 64 to reach New Zealand, but 65 for Singapore? These are some of the mundane but essential logistical achievements of the International Telecommunication Union, a specialist UN agency that dates back to 1865.

Yet as it gears up for its first global conference in 14 years, the ITU has found itself under unprecedented attack. The first assailant is the powerful US technology lobby. Companies, including Google, are claiming that new ITU proposals would mean internet companies paying hefty fees to local telecoms companies, reigniting historic tensions between US internet giants and incumbent telecoms firms across the world.

But that's not the only battle that will be played out this December when the ITU's 193 member states gather in Dubai. Russia and China have been explicit in their goal of taking control of the internet away from the US, while developing countries feel the western technology hegemony is limiting their economic opportunities. With the world's internet population predicted to reach 3.4 billion by 2016, there is everything to play for.

The ITU has not helped its case. Suspected by some critics of encouraging the controversial proposals, comments by the eloquent secretary general Dr Hamadoun Touré seem designed to antagonise the US. He told Vanity Fair earlier this year: "When an invention becomes used by billions across the world, it no longer remains the sole property of one nation, however powerful that nation might be. There should be a mechanism where many countries have an opportunity to have a say."

The reaction to some of these new proposals, or ITRs, has been a comprehensive, well-organised and well-funded campaign by a cabal of powerful American corporates – including Google, Microsoft, Cisco, AT&T and Comcast. Much of the resulting media coverage of the ITU, particularly in the US, has ranged from dismissive to aggressive, labelling the low-profile union obscure and irrelevant and exploiting American animosity for the UN.

Expanding profile

Much of the damning coverage has focused on proposed changes to the wording of several ITRs that appear to attempt to expand ITU's remit from telecoms to the internet. Given that the organisation began by co-ordinating telegraph communications and expanded to telephones, mobiles and data, it isn't unreasonable that its members might seek to expand its remit accordingly.

But its members also include 700 private-sector organisations, and one of those, the European Telecommunications Network Operators (ETNO), has caused the most contention among the US tech lobby by pushing for a proposal that would effectively allow telcos to charge companies for delivering their content. "What we want is a pricing model that ensures the revenue of operators and allows content providers to better compete in the market," ETNO's chairman Luigi Gambardella told La Repubblica this month. For a player like Google or anybody else delivering media over the net, that could prove very expensive.

Google's chief internet evangelist Vint Cerf has been one of the big guns rolled out to lobby against the proposed regulations, describing the proposal to return to the "sender pays" principle as regressive. He claims that model had failed in the telephone world, particularly in developing countries where paying telcos high settlement rates had supposedly funded infrastructure, but instead ended up in the pockets of government treasuries or officials. "It's the absolute antithesis of the internet where the participating parties on the edge of the network pay for access to it," he said. "Freedom to innovate on the network has been largely a consequence of its economic model and its openness."

The ad-hoc coalition lobbying against ITU proposals is made up of Google, Microsoft, Cisco, Comcast and AT&T and 10 others, and is chaired by ambassador David Gross, a lawyer, past chair of several delegations to the ITU, and former government international communications policy coordinator. He represented the group when it testified at a congressional hearing in May. "[The sender pays proposal] is asking for trouble because it's suggesting the model, a model that is clearly working, would need to be revised for no apparent, real reason, other than the economic benefit of a few carriers," he told Digital Trends in August. "I will quickly add that my coalition has major carriers, like AT&T and Verizon, and they also think that this is the wrong way to go."

Campaigning for the open web

For its part, Google has campaigned hard under the banner of the open web and the media-genic issues of free speech and-anti censorship that other ITU proposals allude to. But make no mistake – this is absolutely business as usual for a company worth $243bn (£150bn) because the sender pays principle – which is said to be gaining traction among African and Arab delegations – would be catastrophic for its business, effectively taxing every interaction with its 700 million or so daily userbase.

Add to that the threat posed to Google's income by Facebook's monopoly of social data and related advertising and the trend for "privatised" data inside mobile apps, and suddenly Google's mission to "index the world's data" seems rather more precarious. No wonder Google has made a campaign for the open web such a priority. This is what Google's chief legal officer, David Drummond, describes as a "happy coincidence". "We are not ashamed," he says, "to say the open web is good for the world, and happens to create good opportunities for business".

On the other hand, administration and organisation of the internet has been dominated by the US since Arpanet, the precursor to the modern internet, was established between four US universities in 1969, and a handful of US-controlled authorities followed. The biggest point of contention is Icann, the Internet Corporation for Assigned Names and Numbers, which oversees management of internet address. Icann has responded to global pressure by internationalising its management board, though it is still a California-based non-profit. The US has, however, fiercely defended the root zone, the core domain name and numbering system run by the Internet Assigned Numbers Authority (Iana) – which remains on contract to the US Department of Commerce managed by Icann. On this, they will go down fighting.

Challenging western dominance

Western dominance is the one of the biggest challenges for developing nations, says Alice Munyua, a researcher and policy development expert, representing Kenya and Africa on forums such as Icann. "It is a big concern for African governments and stakeholders, and not just because of how the internet is governed, but how it is developed from a commercial and technical perspective," she said. "There is a feeling that we are not able to participate or contribute effectively because of the lack of capacity, skills and resources, so there's a digital divide in terms of access, but also in appropriating the internet for our own development."

This, she believes, is the reason most African governments are supporting Arab proposals that countries should be compensated, by websites and internet services, for the flow of internet traffic they generate, and that wide-ranging privacy protections be introduced with exceptions for law enforcement.

Drummond said he was sympathetic with developing countries who feel excluded from the western-dominated internet industry. "But the treaty route, and the lowest common denominator approach mandating a certain set of technologies or regulations, is not the way to go." Munyua says even finding delegates who understand issues of internet management and governance can be difficult, and that with problems as basic as a unreliable electricity supply, African nations have different priorities when engaging with the ITU.

Elsewhere in the ITU, the battle for control is more like a cold war. Russia, backed by several Middle Eastern countries and by China, has pushed for more cybersecurity regulations and for more ITU control of domain names: this follows Russian president Vladimir Putin stating last year that Russia aimed to establish "international control over the internet using the monitoring and supervisory capabilities of the International Telecommunication Union". It has mooted cutting off internet access for anyone who threatens network security, called for a new UN body to replace Icann, and campaigned, but failed, with a previous UN proposal to create a cybersecurity code of conduct.

Eleanor Saitta, technical director of the International Modern Media Institute, is also a hacker and security consultant. She warns that one of the biggest threats is the increasing militarisation of the internet. Even as the 193 nations of the ITU meet in December, some of those nations will be silently unleashing state-sponsored cyber attacks on each other, as well as surveillance and censorship on their citizens.

Occasional reports of this flourishing industry surface; just last month the UK government was moved to block software exports to Egypt after Gamma International admitted selling a product that could remotely copy files, log keystrokes and record video. "We are seeing governments wanting to get involved in censorship and surveillance and that truly has the potential to break the internet, because it will not function as a network or community where people can collaborate and share," said Saitta.

America's corporate internet industry has already had to battle on home turf, however. In 2011, the Stop Online Piracy Act (Sopa) and Protect IP Act (Pipa) proposed significantly expanded power for US law enforcement in identifying and penalising copyright infringement. Google was one of the loudest voices in this lobby, putting its sophisticated Washington policy department to work. The campaign, which saw high-profile sites including Wikipedia and Reddit black out for a day in protest, has succeeded in postponing the legislation for now.

Google in the dock

But lobbying by Google and its contemporaries against the ITU may well end up backfiring. Google is likely to face an anti-trust hearing in the US by the end of the year, investigating whether Google gives preferential treatment to its own products in search listings. The European Commission is also building a case against Google; the combination could stop Google expanding its US and UK businesses where Google accounts for 65% and 90% of the respective search markets. The search engine is also fighting a privacy battle against European regulators unhappy at how Google shares data between YouTube, Gmail and its other products. On one hand, Google is preaching for an open web, while on the other operating a virtual monopoly in search.

The lobby's arguments on cybersecurity look weaker in the light of America's own Cyber Intelligence Sharing and Protection Act, or Cispa, which was widely condemned by civil rights groups for sacrificing the privacy of its citizens to allow the government to trace hackers. Hot on the heels of Sopa, it was passed by Congress, killed off by the Senate and is now being revisited by the Senate. US defence secretary Leon Panetta claimed this week that the US risked a "cyber Pearl Harbour" if it did not resolve its cybersecurity issues. The US government itself was implicated in the development of the Stuxnet and Flame viruses which was intended to derail and spy on the Iranian nuclear programme, and the White House has also claimed it was subject to an attack in October from hackers linked to the Chinese government.

With so much to contend with on home turf, why, asks internet governance policy analyst professor Milton Mueller, is the US technology lobby chucking so much firepower at the declining institution of the ITU? They might do better, he suggests, to focus attention on Icann, pointing out problems with how governments engage with the group on advisory committees.

Mueller says: "We're all 'prepared to fight the ITU' – but we're ignoring threats that come from Icann, the US government and from nation states. We're not building the kind of new institutions we need to govern the internet and keep it free."

• Jemima Kiss will be hosting a Google+ Hangout on Thursday 18 October at 5pm BST on the battle for the internet


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Syria crisis: Brahimi pushes for truce - live updates
October 17, 2012 at 2:57 PM
 

Follow live updates as Turkey and the Pope back calls for ceasefire in Syria but rebels and the Assad regime show no interest in peace




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Nike drop deal with Lance Armstrong after he 'misled us for a decade'
October 17, 2012 at 1:43 PM
 

• Sponsor confirms it has terminated Armstrong's deal
• 'Nike does not condone the use of illegal drugs'
• Armstrong stands down as chairman of Livestrong charity

Nike, the global sportswear brand with longstanding ties to Lance Armstrong, have announced they have terminated their deal with the rider on the basis of "seemingly insurmountable evidence that he participated in doping and misled Nike for more than a decade".

The sponsor, a week after insisting they would stand by Armstrong, said in a statement: "It is with great sadness that we have terminated our contract with him. Nike does not condone the use of illegal performance enhancing drugs in any manner.

"Nike plans to continue support of the Livestrong initiatives created to unite, inspire and empower people affected by cancer."

Nike's British website sells 33 running products, from trainers to tracksuits, bearing the Livestrong brand and featuring its distinctive yellow branding. In the US, the total is 98.

Earlier on Wednesday Armstrong announced he would be stepping down as Livestrong's chairman, to limit the damage to the foundation.

More to follow


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Lance Armstrong steps down as chairman of Livestrong cancer charity
October 17, 2012 at 1:25 PM
 

• Armstrong attempts to limit damage caused to charity
• Livestrong has raised $500m since foundation in 1997

Lance Armstrong is stepping down as chairman of the Livestrong cancer charity to limit the damage to the organisation from his doping scandal.

Armstrong announced the move on Wednesday, a week after the US Anti-Doping Agency (Usada) released its report detailing allegations of widespread performance-enhancing drug use by Armstrong and his teams.

Armstrong, who was not paid a salary as chairman of the Lance Armstrong Foundation, will remain on its board. His duties leading the board will be handed to the vice chairman Jeff Garvey, who was founding chairman in 1997.

"This organisation, its mission and its supporters are incredibly dear to my heart," Armstrong said in a statement. "Today therefore, to spare the foundation any negative effects as a result of controversy surrounding my cycling career, I will conclude my chairmanship."

Armstrong strongly denies doping, but did not fight Usada accusations through arbitration, saying he thinks the process is unfair.

Once Armstrong gave up the fight in August and the report came out, crisis management experts predicted the future of the foundation, known mainly by its Livestrong brand name, would be threatened.

Armstrong's inspiring story of not only recovering from testicular cancer that had spread to his lungs and brain but then winning the world's best-known bike race helped his foundation grow from a small operation in Texas into one of the most popular charities in the US.

Armstrong drew legions of fans and donations and insisted he was drug free at a time when doping was rampant in professional cycling. In 2004, the foundation introduced the yellow "Livestrong" bracelets, selling more than 80m and creating a global symbol for cancer awareness and survivorship.

"As my cancer treatment was drawing to an end, I created a foundation to serve people affected by cancer. It has been a great privilege to help grow it from a dream into an organisation that today has served 2.5m people and helped spur a cultural shift in how the world views cancer survivors," Armstrong said.

As chairman, Armstrong did not run the foundation's day-to-day operations, which are handled by the Livestrong president and chief executive, Doug Ulman.

Ulman had previously said that Armstrong's leadership role would not change. Armstrong's statement said he will remain a visible advocate for cancer issues, and he is expected to speak at Friday night's 15th anniversary gala for Livestrong in Austin, Texas.

"My family and I have devoted our lives to the work of the foundation and that will not change. We plan to continue our service to the foundation and the cancer community. We will remain active advocates for cancer survivors and engaged supporters of the fight against cancer," Armstrong said.

Meanwhile, Armstrong's former doctor has denied accusations that he masterminded the rider's doping habits.

Dr Michele Ferrari, who was banned for life in July by Usada, wrote on his website: "I deny that I had a professional relationship with Armstrong."

In an apparent reference to the $1m plus which the Usada report into Armstrong said had been paid into a company controlled by the Italian, Ferrari said: "The dossier documented payments of Lance Armstrong to Health & Performance SA (a company for which I worked as a consultant) in 2005 and 2006: simply, those are delayed payments for consultancy in previous years."

The report had stated that: "Usada has found overwhelming proof that Dr Michele Ferrari facilitated doping for numerous members of the US Postal Service and Discovery Channel cycling teams."

Ferrari criticised their testimonies, saying that their "false accusations… are ALL based on 'visual' testimonies". He added: "In support of these allegations against me, the massive 'Usada dossier' does not contain ANY objective evidence of doping practices or conducts in Armstrong's past teams."


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Julia Gillard speech prompts dictionary to change 'misogyny' definition
October 17, 2012 at 1:16 PM
 

Australian prime minister's impassioned attack on opposition leader's views of women provokes debate over word's meaning

When Australian prime minister Julia Gillard launched a ferocious attack on the leader of the opposition for his repeated use of sexist language, she was feted by feminists the world over. But critics in Australia rounded on her for supposedly misusing the word misogyny and falsely accusing Tony Abbott of hating women.

Now, however, Gillard's critics no longer have the dictionary on their side. In the wake of the row, the most authoritative dictionary in Australia has decided to update its definition of the word, ruling that a contemporary understanding of misogyny would indeed imply "entrenched prejudice against women" as well as, or instead of, hatred of them. Sue Butler, editor of the Macquarie Dictionary, admitted that, on this occasion, the dictionary had failed to keep pace with linguistic evolution.

"Since the 1980s, misogyny has come to be used as a synonym for sexism, a synonym with bite, but nevertheless with the meaning of entrenched prejudice against women rather than pathological hatred," she said in a statement.

While the Oxford English Dictionary had reworded its definition a decade ago, staff at the Macquarie had been alerted to the issue only in the aftermath of Gillard's extraordinary speech in parliament, she said. "Perhaps as dictionary editors we should have noticed this before it was so rudely thrust in front of us as something that we'd overlooked," Butler told the Associated Press.

Gillard – Australia's first female leader – accused Abbott, head of the centre-right Liberal party, of repeated instances of sexism and misogyny, including his description of abortion as "the easy way out" and a political campaign against Gillard using posters urging voters to "ditch the witch".

She told MPs: "The leader of the opposition says that people who hold sexist views and are misogynists are not appropriate for high office. Well, I hope the leader of the opposition is writing out his resignation because if he wants to know what misogyny looks like in modern Australia, he needs a mirror."

Abbott had sparked the Labor prime minister's fury by calling for the speaker of parliament, Peter Slipper, to be sacked over a series of sexist and vulgar text messages he had sent to a former member of staff. Slipper has since resigned as speaker.

In an attempt to defend himself, Abbott has claimed the attack was part of a government smear campaign. His supporters have also accused Gillard of hyperbole, citing the Macquarie Dictionary as proof that, when she claimed Abbott was a misogynist, she was saying he had a visceral hatred of the opposite sex.

Those figures have not welcomed the dictionary's decision to expand its definition and Butler said she had received letters accusing the Macquarie of a political move. "It would seem more logical for the prime minister to refine her vocabulary than for the Macquarie Dictionary to keep changing its definitions every time a politician mangles the English language," Fiona Nash, a senator in Abbott's coalition, said.

Speaking to the Australian newspaper, the manager of opposition business, Christopher Pyne, also criticised the decision. "If Macquarie changes its definition of misogyny to something other than what it is, it undermines Macquarie Dictionary in its entirety," he said. "The prime minister knew when she used the term misogyny that she was calling Tony Abbott a women hater and she should bear the burden of that vicious personal smear."


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Spin it! Create your own lines from Romney and Obama's second debate
October 17, 2012 at 1:09 PM
 

Can you spin it? Mitt Romney and Barack Obama squared off in their second face-to-face meeting, but can you use what they said to create something new?


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Canadian government 'knew of plans to dump iron into the Pacific'
October 17, 2012 at 12:03 PM
 

Chief executive of company responsible for controversial geoengineering test implicates several departments

As controversy mounts over the Guardian's revelations that an American businessman conducted a massive ocean fertilisation test, dumping around 100 tonnes of iron sulphate off Canada's coast, it has emerged the Canadian government may have known about the geoengineering scheme and not stopped it.

The news combined, with Canadian obstructionism in negotiations over geoengineering at a United Nations biodiversity meeting in Hyderabad, India, has angered international civil society groups, who have announced they are singling out Canada for a recognition of shame at the summit – the Dodo award for actions that harm biodiversity.

They are criticising Canada for being one of "four horsemen of geoengineering", joining Britain, Australia and New Zealand in opposing southern countries' efforts to beef up the existing moratorium on technological fixes for global warming.

The chief executive of the company responsible for spawning the artificial 10,000 square kilometre plankton bloom in the Pacific Ocean has implicated several Canadian departments, but government officials are remaining silent about the nature of their involvement.

In an interview with Canadian radio, John Disney said: "I've been in touch with many departments within the federal ministry. All I'm saying is that everyone from the Canadian Revenue Agency down to the National Research Council and Department of Fisheries and Oceans and Environment Canada – these people, they've all known about this."

The Guardian has seen government correspondence which indicates that Environment Canada officers met with Disney's company in June and expressed their misgiving about any ocean fertilisation going forward, but appear to not have taken further action.

After the huge experiment happened in July, Canadian government officials were anxious to find out if the company's boat flew under a Canadian flag and whether the iron was loaded in Canada.

A large number of Canadian personnel have been involved on the boat, the largest fishing vessel under Canadian registration in the province of British Columbia. Disney, who is also a non-native economic manager for the indigenous council in the Old Masset village in Haida Gwaii, told media that the iron was brought from Alberta.

Russ George, a colleague of Disney's, told the Guardian: "Canadian government people have been helping us. We've had workshops run where we've been taught how to use satellites resources by the Canadian space agency. [The government] is trying to 'cost-share' with us on certain aspects of the project. And we are expecting lots more support as we go forward."

Environment Canada officials refused to comment, saying "the matter is currently under investigation."

"To clear these serious allegations of complicity the Canadian government needs to speak out and account for these events," said Jim Thomas of the international technology watchdog ETC Group. "Officials need to condemn this dump as a breach of Canadian laws and take swift action against geoengineering: in Haida Gwaii that means initiating measures against Russ George and any Canadians involved, while in Hyderabad that means backing a global test ban."

Sources indicate that the Council of the Haida Nations, the political body that speaks for all Haida people, is passing a resolution that any future decision on such projects will have to be ruled on by the entire nation, rather than by one village.

The Haida Salmon Restoration Corporation was established by Old Masset village after they borrowed $2.5m dollars from a Canadian credit union, which provided the loan despite flagging numerous concerns about George's credibility and his plans to try to win carbon credits for the project.

University of Victoria climate scientist Andrew Weaver told media that there are "profound implications" to dumping iron, and no guarantee that the ocean can be used as a carbon sink.

"They are not going to get a penny in carbon credits, because there's no evidence the carbon is going to stay where it is," he said.


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French TV host apologises to Japanese over Fukushima football joke
October 17, 2012 at 11:42 AM
 

Broadcaster expresses regret after attributing Japanese goalkeeper's impressive performance to the 'Fukushima effect'

A French broadcaster has apologised after showing a composite picture of Japan's national football team goalkeeper with four arms, prompting a presenter to attribute the extra limbs to the "Fukushima effect".

France 2 said it regretted using the image, which had been intended to complement Eiji Kawashima's impressive performance in Japan's 1-0 victory over France in a friendly last Friday.

In a statement to the Japanese embassy in Paris, France 2's director, Jean Reveillon, apologised to the Japanese people but said the image had not meant to cause offence to them or those affected by last year's triple meltdown at the Fukushima Daiichi nuclear power plant.

"We are deeply sorry for having hurt your fellow citizens. [The presenter] Laurent Ruquier did not want to be disrespectful to Japan and the Fukushima victims," Reveillon said.

"In this humorous or satirical programme, our presenter was mostly trying to mock the French football team. In any case, given the emotions that this has sparked, France 2 presents its regrets and reaffirms our friendship to the Japanese people."

Japan had lodged a protest over the image, which appeared as Ruquier, the host of a variety show, attributed a string of saves by Kawashima to the "Fukushima effect", prompting laughter and applause in the studio.

The chief cabinet secretary, Osamu Fujimura, called Ruquier's remark "inappropriate, while Japan's education minister, Makiko Tanaka, accused the presenter of "lacking sensitivity". She added: "Many people were hurt in the nuclear crisis. I don't know how people can make fun of it."

The Fukushima nuclear crisis was triggered by last year's magnitude-9 earthquake and tsunami along Japan's north-east coast, which killed more than 15,000 people and left almost 3,000 others unaccounted for.

Radiation leaks forced the evacuation of 150,000 people living near the nuclear plant, most of whom are still unable to return home.

The French foreign minister, Laurent Fabius, repeated the apology during a meeting with his Japanese counterpart, Koichiro Gemba, in Paris on Tuesday.

Kawashima, who plays for the Belgian club Standard Liege, was targeted for abuse while playing for Lierse SK during a league fixture last year, when opposition fans chanted "Kawashima, Fukushima!"

The referee temporarily halted play following protests from the player, who was reportedly in tears after the match.


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Hollande fires warning shot at Merkel over austerity on eve of EU summit
October 17, 2012 at 10:25 AM
 

Exclusive: In first British newspaper interview since becoming president, French Socialist leader says recession is as great a threat to Europe as debt

François Hollande, the French president, has warned for the first time that the Paris-Berlin motor driving Europe could stall over deep differences on how to resolve the euro crisis, insisting on a climbdown by Angela Merkel in her emphasis on austerity and the surrender of national powers to tighten fiscal discipline.

Giving the Guardian his first British newspaper interview since becoming president in May, Hollande said there was light at the end of the eurozone tunnel, but he also:

• suggested Merkel was too preoccupied with domestic politics in her response to the crisis

• demanded Berlin reverse its opposition to decisions taken by eurozone leaders in June

• called on the eurozone to act promptly to bring down the costs of borrowing for Spain and Italy

• insisted Greece be assured of staying in the eurozone

• gave short shrift to a German push for the creation of a federalised eurozone or political union

• and dismissed as unfounded the strong German criticisms of the recent moves on the crisis by the European Central Bank.

While the Franco-German relationship was the driving and "accelerating" force of the EU, Hollande said, "it can also be the brake if it's not in step. Hence the need for Franco-German coherence."

Hollande's remarks on the eve of a crucial EU summit in Brussels highlighted the extent of the gulf between Paris and Berlin and the deep divisions within the eurozone almost three years into Europe's worst ever crisis.

Solidarité

Interviewed by the Guardian and five other European newspapers from France, Germany, Spain, Italy and Poland, Hollande also called for monthly meetings of the national leaders of the 17 eurozone countries to end the cycle of "so-called 'last-chance' summits", which he said in the past had led only to "fleeting successes".

He said domestic electoral considerations should not get in the way of solving the euro-crisis. Merkel "is very sensitive to questions of internal politics and to the demands of her parliament. I understand that, and can respect that. But we all have our own public opinion. Our common responsibility is to put Europe's interests first."

France's first socialist president for 17 years also rejected the idea that Germany was the only nation putting its hand in its pocket for everyone else.

"We're all taking part in this solidarity. The French, the Germans, just like all the Europeans in the ESM [the eurozone's new rescue fund]. Let's stop thinking that there's only one country who's going to pay for the others. That's false. However, I know the sensitivity of our German friends to the problem of supervision. Whoever pays should control, whoever pays should sanction. I agree. But budgetary union should be completed by a partial mutualisation of debts through eurobonds."

Hollande's assertion of the need for the eurozone to pool some of its debt through eurobonds challenged one of Merkel's red lines. She has repeatedly refused to countenance the proposal and there is scant chance of her shifting that position as she moves into an election year.

"We are near, very near, to an end to the eurozone crisis," said Hollande. But decisions taken at the last EU summit in June had to be implemented "as fast as possible".

No Grexit

In June, EU leaders delivered a breakthrough deal, agreeing to make the European Central Bank the first supervisor of the eurozone's banks and to use the bailout funds to shore up weak banks directly rather than by lending the funds to governments. But Berlin is dragging its heels on the deal and last month shattered the confidence of its partners by walking away from the agreement.

Hollande insisted that the so-called "banking union" had to be finalised by the end of the year. He is demanding a German climbdown on the issue at the summit on Thursday and Friday.

Echoing calls by the Spanish and Italian governments for German support to bring down the costs of their borrowing in the bond markets, Hollande said they should be able to finance themselves at "reasonable" rates, and added it was unfair some eurozone countries were borrowing at 1% and others at 7%.

The Greek situation had to be dealt with "definitively" as "Greece has made so much effort and it must now be assured of staying in the eurozone".

"In the interests of all you can't inflict perpetual punishment on countries that have already made considerable efforts," he said.

For Hollande, the urgency of dealing with the crisis had to take priority over longer-term German-led calls for eurozone federation and political union. Only once immediate measures were taken could Europe look at changing its way of decision-making and "deepening its union". He suggested that political union – so dear to the Germans – would be on the backburner until after the 2014 European parliament elections.

Crucially, he warned against the issue of political union being used as a distraction to dodge difficult choices.

"The institutional issue is often evoked in order to avoid making choices. It hasn't escaped my notice that those quickest to talk of political union were often those the most reticent to take urgent decisions …"

Challenged that he specifically meant the Germans, he said: "No, I'm not pointing at anyone in particular." But he added: "Several times in the past, they [Germany] had sincerely made proposals on political union. Those were not picked up."

Read my lips: no new treaty

Outlining his recipe for tackling the crisis, Hollande called on Germany to help rebalance the eurozone economy by cutting taxes and raising wages to spur domestic demand and proposed policies sharply at variance with Berlin in terms of timing and sequencing.

"Solidarity" had to come first followed by deeper integration, he emphasised. "Whenever we take a step towards solidarity, the union – which means the respect of common rules around governance – should progress." He said the banking union was a very important role. "That solidarity can't go without democratic control. The banking union aimed at controlling finance would be an important step in European integration."

The German strategy, by contrast, is to insist on tighter, centralised controls of budgets and fiscal policies and then to move towards a pooling of liabilities for banks and debt once the new system is operational and seen to be working.

Asked whether in order for a more integrated political union it might be necessary to draw up a new European treaty and put it to referendums, Hollande shot back with a reference to the no vote on the European constitution in France in 2005. "If I remember rightly, we tried that formula in 2005 and it didn't produce the results we were hoping for. Because before launching into institutional mechanics, Europeans must know what they want to do together. The content is more important than the framework," he said.

He insisted France would "tirelessly" champion the growth agenda – "this compromise between getting out of debt and growth" – without questioning the need for budget discipline, which had been made "absolutely necessary" by the sovereign debt crisis. "Today, recession is as big a threat as deficits."

Brits on the backfoot

Hollande said his approach was "a Europe that advances at varying speeds, with different circles. We could call them 'avant garde', 'precursor states', the 'core' – names don't matter, it's the idea that counts." This meant strengthening the regular meetings of eurozone governments.

. He said the leaders of other countries intending to join the single currency could also take part in his proposed monthly summits of eurozone national leaders, but on less than equal terms, as "associates". But, in an implicit nod to David Cameron and other non-euro zone countries not to interfere if they were standing outside, he added: "Certain countries don't want to join [the eurozone]: that's their choice. But why should they come telling us how the eurozone should be run? It's a pretension I hear but that I don't think meets the need for coherence."

Asked if he would risk seeing Britain leave Europe, Hollande said: "I would like a UK fully engaged in Europe, but I can't decide in place of the British. I see that for the moment they want to be more in retreat. The British are tied by the accords they have signed up to. They can't detach from them. At least they have the merit of clarity. They aren't in the eurozone or budgetary union. I don't intend to force them."

The suggestion that Britain couldn't wriggle out of deals it had signed up to could be seen in London as a signal that it would not be easy for the UK to renegotiate binding European commitments in a way Cameron would like to.

Asked what was the biggest threat to the European Union, Hollande suggested it was "not being loved. Only being seen at best as an austere cash dispenser or at worse as a reform school."

In a message to Germany that France would stand by the others, he said. "France is the bridge between northern Europe and southern Europe. I refuse any division. If Europe has been reunified, it's not for it to then fall into egotism or 'each for one's own'. Our duty is to set common rules around the principles of responsibility and solidarity. As a French person, it's for me to ensure Europeans are conscious of belonging to the same group."

Asked if he had said that to Angela Merkel, he said: "She knows it perfectly. That was the meaning of her trip to Athens".

He said: "I'll do everything for Greece to stay in the euro and have the resources it needs by the end of the year, without it having to be necessary to inflict new conditions other than these already admitted by the Samaras government." But Hollande said he also felt for the Spanish and Portuguese people "who had paid dear for others' excesses".

"The time has come to offer a perspective beyond austerity". He said Spain must know the precise conditions for getting financing agreed in June. There was no reason to make its burden heavier.

Asked if the worst was over, Hollande said, "Yes, the worst – in the sense of the fear of the eurozone breaking up - is over. But the best isn't there yet. It's up to us to build it."

Interview conducted by Sylvia Kauffmann (Le Monde), Angelique Chrisafis (The Guardian) Berna Gonzalez Harbour (El Pais), Jaroslaw Kurski (Gazeta Wyborcza), Alberto Mattioli (La Stampa) et Stefan Ulrich (Süddeutsche Zeitung)

In keeping with established practice in France, Hollande's quotes were approved prior to publication.


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Syria crisis: ceasefire calls ignored - live updates
October 17, 2012 at 10:16 AM
 

Follow live updates as Turkey and the Pope back calls for ceasefire in Syria but rebels and the Assad regime show no interest in peace




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