| |  | | | | | SHUTTING DOWN Feed My Inbox will be shutting down on January 10, 2013. To find an alternative service for email updates, visit this page. | | | | | | | | | | | | |  | |  | | | | | The Guardian World News | | | | | | | | | | | | | | | | | | | Eurozone ministers and the International Monetary Fund have hammered out a plan to bring down Greece's debts by €40bn, but questions remain...
  | | | | | | | | | | | | | | | | | | | | | | | | | Monitoring agency DigitalGlobe says launch could happen within three weeks based on activity at Sohae rocket pad North Korea may conduct a long-range ballistic missile test in the next three weeks, according to a satellite company that has analysised images of the launch site. The imagery was released days after a Japanese newspaper, the Asahi Shimbun, reported that US intelligence analysts had detected moves that were seen as preparation by North Korea for a long-range missile launch as early as this month. DigitalGlobe, which provides commercial satellite imagery to the US government and foreign governments, on Monday released a new image that it said showed increased activity at North Korea's Sohae (West Sea) satellite launch station. It said the imagery showed more people, trucks and other equipment at the site, a level of activity that was consistent with preparations seen before North Korea's failed 13 April rocket launch. "Given the observed level of activity noted of a new tent, trucks, people and numerous portable fuel/oxidiser tanks, should North Korea desire, it could possibly conduct its fifth satellite launch event during the next three weeks," DigitalGlobe said in a statement accompanying the image.
A Pentagon spokeswoman declined to comment on the reported satellite images but urged North Korea to comply with UN security council resolutions that "require Pyongyang to suspend all activities related to its ballistic missile program in a complete, verifiable, and irreversible manner, and re-establish its moratorium on missile launching".
North Korea carried out nuclear tests in 2006 and 2009 and is under heavy UN sanctions for its atomic weapons program. It has tried for years to influence major events in South Korea by waging propaganda or armed attacks. South Korea is gearing up for a presidential election on 19 December. In April, under its new leader Kim Jong-un, North Korea launched a rocket that flew a few minutes covering a little over 60 miles (100km) before crashing into the sea between South Korea and China.
  | | | | | | | | | | | | | | | | | | | | | | | | | Palestinian leader's remains have been taken to a mosque in Ramallah to allow doctors to take bone samples The remains of the late Palestinian leader Yasser Arafat have been exhumed from his grave so international forensic experts can search for additional clues to his death, Palestinian officials said. The remains were taken from the mausoleum in the West Bank city of Ramallah where Arafat was buried and moved to a nearby mosque so Palestinian doctors could take samples from his bones, the officials said. The samples will be handed over to French, Swiss and Russian experts who have flown in for the exhumation and who will examine them in their home countries, the officials said. Earlier, samples were also taken from Arafat's bedroom, office and personal belongings, they said. The new investigation into Arafat's death was prompted earlier this year by the discovery of a lethal radioactive substance, polonium, on clothing said to be his. Arafat died in November 2004 in a French military hospital, a month after suddenly falling ill. While the immediate cause of death was a stroke, the underlying source of an illness he suffered in his final weeks has never been clear, leading to persistent speculation that Israel poisoned him. Israel has denied such allegations. The exhumation might not resolve the mystery. Polonium-210 decomposes rapidly, and some experts say it is not clear whether any remaining samples will be sufficient for testing.
  | | | | | | | | | | | | | | | | | | | | | | | | | Finance ministers are making a third attempt to agree a deal over Greece's debts, at a Eurogroup meeting in Brussels today
  | | | | | | | | | | | | | | | | | | | | | | | | | European governments and the IMF make tentative agreement that should see the release of up to €44bn in bailout funds needed to rescue Athens from insolvency
| | | | | | | | | | | | | | | | | | | | | | | | | Agreement should see release of up to €44bn in bailout funds needed to rescue Athens from insolvency European governments and the IMF sought to bury months of feuding over Greek debt levels in a tentative agreement that should see the release of up to €44bn in bailout funds needed to rescue Athens from insolvency. But after almost 12 hours of talks for the third time in a fortnight between eurozone finance ministers, leaders of the IMF, the European central bank and the European commission struggled to reach a consensus, suggesting a lack of confidence that the effort to resurrect the Greek economy will bear fruit or that three years of European bailout policy was working. The meeting agreed to shave projected Greek debt to allow it to level at 124% of GDP by 2020, entailing a 20% cut in Greek debt by the deadline. With the IMF demanding a writedown of Greece's debt by its official eurozone creditors and Germany leading the resistance to such a move, declaring it illegal, the meeting agreed on a mixture of measures involving debt buybacks, lower interest rates on loans, longer maturity periods on borrowing, and ECB returns to Greece of profits on its holdings of Greek bonds. In an increasingly arcane dispute entailing sophisticated number-crunching over recent weeks, the IMF had stuck to a bottom line of getting the Greek debt level to 120% by 2020, far below what eurozone and IMF inspectors concluded was possible. A debt sustainability analysis last week said the debt level would be 144% without eurozone action to write much of it off. The Europeans hoped to extend the IMF-set 2020 deadline for debt "sustainability" by two years, but Christine Lagarde, the IMF chief, stuck to the 2020 date. While Berlin played for more time, until after next year's general election and the expiry of Greece's formal bailout schedule in 2014, the IMF has been demanding a clear, credible longer-term programme. Greece met the terms for the bailout funds a couple of weeks ago, agreeing a budget and swingeing spending cuts. Eurozone loans of at least €31.5bn have been pending since last summer, but held up recently by arguments not between Athens and its creditors, but by disputes among the creditors. Greece, where the eurozone's debt crisis erupted in late 2009, is the currency area's most heavily indebted country, despite a big "haircut" this year on privately-held bonds. Its economy has shrunk by nearly 25 percent in five years. The key question remains whether Greek debt can become sustainable without eurozone governments having to write off some of the loans they have made to Athens. A source familiar with IMF thinking said the global lender was demanding immediate measures to cut Greece's debt by 20 percentage points of GDP, with a commitment to do more to reduce the debt stock in a few years if Greece fulfils its programme. To reduce the debt to 124% by 2020, the ministers were putting together a package of steps including a debt buyback funded by a eurozone rescue fund, reducing the interest rate on loans and returning eurozone central bank 'profits' back to Greece. Germany and its northern European allies have so far rejected any idea of forgiving official loans to Athens. German finance minister Wolfgang Schäuble told reporters that a debt cut was legally impossible if it was linked to a new guarantee of loans. "You cannot guarantee something if you're cutting debt at the same time," he said.
 | | | | | | | | | | | | | | | | | | | | | | | | | Mahmoud Abbas pledge not to pursue Israel for war crimes and resumption of peace talks are UK conditions Britain is prepared to back a key vote recognising Palestinian statehood at the United Nations if Mahmoud Abbas pledges not to pursue Israel for war crimes and to resume peace talks. Abbas, president of the Palestinian Authority, has called for Britain's backing in part because of its historic responsibility for Palestine. The government has previously refused, citing strong US and Israeli objections and fears of long-term damage to prospects for negotiations. On Monday night, the government signalled it would change tack and vote yes if the Palestinians modified their application, which is to be debated by the UN general assembly in New York later this week. As a "non-member state", Palestine would have the same status as the Vatican. Whitehall officials said the Palestinians were now being asked to refrain from applying for membership of the international criminal court or the international court of justice, which could both be used to pursue war crimes charges or other legal claims against Israel. Abbas is also being asked to commit to an immediate resumption of peace talks "without preconditions" with Israel. The third condition is that the general assembly's resolution does not require the UN security council to follow suit. The US and Israel have both hinted at possible retaliation if the vote goes ahead. Congress could block payments to the Palestinian Authority and Israel might freeze tax revenues it transfers under the 1993 Oslo agreement or, worse, withdraw from the agreement altogether. It could also annex West Bank settlements. Britain's position is that it wants to reduce the risk that such threats might be implemented and bolster Palestinian moderates. France has already signalled that it will vote yes on Thursday, and the long-awaited vote is certain to pass as 132 UN members have recognised the state of Palestine. Decisions by Germany, Spain and Britain are still pending and Palestinians would clearly prefer a united EU position as counterweight to the US. Willian Hague, the foreign secretary, discussed the issue on Monday with Abbas and the French foreign minister, Laurent Fabius, offiicals said. Palestinian sources said Hillary Clinton, the US secretary of state, raised the issue with Abbas at his Ramallah headquarters last week, shortly before a ceasefire was agreed in the Gaza Strip, as had Tony Blair, the Quartet envoy. Abbas has been widely seen to have been sidelined by his rivals in the Islamist movement Hamas, as well by his failure to win any concessions from Israel. Abbas, whose remit does not extend beyond the West Bank, hopes a strong yes vote will persuade Israel to return to talks after more than two years. Officals in Ramallah have opposed surrendering on the ICC issue so it can be used as a bargaining chip in future, but views are thought to be divided. Abbas said at the weekend: "We are going to the UN fully confident in our steps. We will have our rights because you are with us." Leila Shaid, Palestine's representative to the EU, said: "After everything that has happened in the Arab spring, Britain can't pretend it is in favour of democracy in Libya, Syria and Egypt but accept the Palestinians continuing to live under occupation. As the former colonial power, Britain has a historic responsibility to Palestine. Britain is a very important country in the Middle East, it has extensive trade relations, and David Cameron should know he risks a popular backlash from Arab public opinion if he does not support us." Palestinians have rejected the claim that they are acting unilaterally, calling the UN path "the ultimate expression of multilateralism". Israel's apparent opposition to unilateralism has not stopped it acting without agreement to build and expand settlements, they say.
 | | | | | | | | | | | | | | | | | | | | | | | | | AP and other news outlets pick up hoax release from online PR company, leading to 3.321bn trades before sales are called off It was Cyber Monday deal that wasn't. On Monday morning as people took advantage of the online sales, Google appeared to be doing a little shopping of its own. The search giant had snapped up ICOA, a Wi-Fi firm for $400m, according to a press release and subsequent news stories. Only it hadn't. The flurry of interest in ICOA started with a post on PRWeb.com,
an cut-price online news distributor that claims its news is seen by more than 2.75m people a day. Google had made the purchase to "further diversify it's [sic] already impressive portfolio of companies", said the release. It described ICOA's operations, offering Wi-Fi in 40 states in high traffic locations such as airports and restaurants and gave contact information for the company. The story was picked up by the Associated Press – apparently without further checks. But almost as soon it appeared, it was being denied by Google and ICOA executives. News outlets, including the Associated Press, pulled or amended their stories. But not quickly enough to prevent the penny stock shares briefly leaping from 1¢ to 5¢. More than 3.321bn shares traded hands before the stock was frozen. ICOA trades about 926,000 shares on an average day. Sam Hamadeh, chief executive of PrivCo, an analyst which specialises in private companies, said the press release looked like a classic scam. "I've seen similar stunts with biotech firms that are supposed to have made a new breakthrough but never anything so brazen." In similar schemes, Hamadeh said, people buy shares ahead of the scam then sell out on the "news" before they are uncovered. But usually such frauds avoid high profile companies like Google. Given that the size of the company and access to internet records as well as trading accounts, Hamadeh predicted the culprits would soon be identified. But the money may already be gone. "I think they'll soon find out who did it, but they may also find that the money is now in a series of bank accounts in Nigeria," he said. PRWeb's owner Vocus said in a statement: "PRWeb transmitted a press release for ICOA that we have since learned was fraudulent. The release was not issued or authorized by ICOA. Vocus reviews all press releases and follows an internal process designed to maintain the integrity of the releases we send out every day. "Even with reasonable safeguards identity theft occurs, on occasion, across all of the major wire services. We have removed the fraudulent release and turned the matter over to the proper authorities for further investigation." More established PR distribution networks like Business Wire and PR Newswire make rigorous checks with their clients, talking through the wording of a release in some cases, before issuing a release. PR Newswire had to tighten up its checking procedures in 2010 after a hoax release falsely claimed President Barack Obama had ordered an investigation into General Mills' supply chain. The established players have been undercut by new rivals like PRWeb in recent years. On its website PRWeb claims: "PRWeb 'democratized' news distribution, transforming the 'press release' from an expensive tool used by large corporations to an inexpensive yet highly effective way for organizations of all sizes to distribute their news on the Internet, increase their visibility online and attract customers."
 | | | | | | | | | | | | | | | | | | | | | | | | | Egypt's president tries to defuse 'immunity' decree crisis by indicating acceptance of judiciary-proposed compromise Egypt's president has agreed that only his decisions related to "sovereign matters" would be protected from judicial review, his spokesman has said, indicating he had accepted a judiciary-proposed compromise to try to defuse a crisis. President Mohamed Morsi had angered opponents with a decree last Thursday that expanded his powers and put any decision he took beyond legal oversight until parliament was in place. Senior judges proposed he limit that to "sovereign matters". "The president said he had the utmost respect for the judicial authority and its members," Yasser Ali told reporters, adding that regarding the issue of immunity for presidential decisions: "what is intended is those that are linked to matters of sovereignty". Ali added: "The article [in the decree] regarding retrials of past regime officials is dependent on the discovery of new evidence. "Regarding the immunity of Morsi's decrees, that is a temporary measure until a constitution is in place and pertains only to what is known as 'sovereign matters' of elected bodies. Both the presidency and the judiciary are cautious for there not to be a confrontation between the executive and the judiciary." Ali said there has "been no amendments to the decree." The term "sovereign matters" is ambiguous but tends to mean issues referring to the executive branch of the government, especially foreign policy and national security, but in this case would also include constitutional matters as Morsi holds legislative power in the absence of parliament. It would therefore extend to granting immunity from legal challenges to the constituent assembly and the upper house of parliament, the shura council, which remains in session. Meanwhile Barack Obama called for calm in Egypt and for the country to resolve differences over its constitutional impasse peacefully, a White House spokesman said. Morsi's decrees have forced the Obama administration to adopt two attitudes towards Morsi, who helped broker a ceasefire in the recent Gaza conflict that was backed by the United States. White House spokesman Jay Carney said that Morsi had played an "important role" in bringing "about a ceasefire, so that lives could be saved and the possibility of moving forward on negotiations for a more enduring peace could be realised. "Separately we've raised concerns about some of the decisions and declarations that were made on 22 November," he added. "And we continue to engage with the Egyptians on this. And I think the important issue here is the Egyptian people want a government that reflects their will." Egyptians remain braced for rival protests on Tuesday against Morsi. Others are planned by the Muslim Brotherhood and Salafists in support of the president. Most schools will be closed and universities and many workplaces will wrap up early in anticipation of the marches, which are expected to draw tens of thousands to the streets.
  | | | | | | | | | | | | | | | | | | | | | | | | | Two weeks of talks aim at securing a treaty by 2015 to cut greenhouse emissions The US is claiming credit for "enormous" efforts on climate change – delivered in part by the carbon reductions from its investments in the controversial practice of "fracking" for shale gas. The claim came as nearly 200 governments gathered in Doha, Qatar, for two weeks of talks aimed at forging an agreement on the climate. Governments have until 2015 to draw up a binding treaty, the first since the 1997 Kyoto protocol, to cut greenhouse gas emissions and avoid dangerous global warming. Jonathan Pershing, a senior negotiator for the US, said: "Those who don't know what the US is doing may not be informed of the scale and extent of the effort, but it's enormous." The United Nations' top climate official, Christiana Figueres, called on countries to step up their efforts to reach an agreement. The Kyoto protocol took five years to draft, so the new deadline is tight, and scientific warnings have grown more stark in recent years. In the past few weeks alone, authorities including the World Bank and the International Energy Agency have warned that the world is heading for unprecedented warning – of between 4C and 6C – if current trends are not reversed. Levels of warming on that scale would result in droughts, floods, heatwaves and fiercer storms, as well as declining agricultural productivity, plant and animal extinctions, and widespread human migration, according to scientists. Figueres said it was still possible for the world to cut emissions in time to avoid such a fate, but that it would take urgent action. She said: "Expert analysis consistently says that we do have the possibility to keep on track and that to act now is safer and much less costly than to delay. "In the last three years, policy and action towards a sustainable, clean energy future has been growing faster than ever. But the door is closing fast because the pace and scale of action is simply not yet enough. So Doha must deliver its part in the longer-term solution." The host of the conference, Abdullah bin Hamad al-Attiyah of Qatar's Administrative Control and Transparency Authority, said: "Climate change is a common challenge for humanity. We must work in earnest for a better future for present and for future generations. We have a precious opportunity over the coming days, and we must make full use of it." But Qatar has drawn criticism because it has the highest emissions per capita in the world, owing to its oil and gas wealth, and high use of energy for air conditioning, desalination and other technologies. Attiyah responded: "We should not focus on the amount per capita but on the total per country." The US has often been painted as the villain in the annual United Nations climate talks, since it signed the Kyoto protocol in 1997 but then failed to ratify it, and as under George Bush's presidency climate sceptics were in the ascendancy. The Obama White House has taken a different view, but developing countries complain that the US has not taken on sufficient responsibility for cutting emissions and aiding the most vulnerable nations. Pershing defended the US's record, saying that more effort was on its way. He said: "[Our efforts so far] doesn't mean enough is being done. It's clear the global community, and that includes us, has to do more if we are going to succeed at avoiding the damages projected in a warming world." Greenhouse gas emissions from the US have fallen sharply in recent years, owing to the replacement of coal-fired power generation by gas in the US, following its widespread adoption of shale gas. By contrast, a new analysis by HSBC has found that China's greenhouse gas emissions are unlikely to start falling before 2030, which could put the 2 degree target out of reach. China's increasing role in emissions, compared with the decrease in the US, could redraw the battle lines of the talks.
  | | | | | | | | | | | | | | | | | | | | | | | | | The musician has published his latest collection of songs not as recordings but as beautifully illustrated sheet music. He explains why he decided to do it Between the heavy blue covers of the Song Reader, tucked in among its neat sheaf of papers, lies composition number 18: "Title of This Song" it reads in a simple cream font. And then below, in more scrolling, handwritten style: "Written by Beck Hansen." Beck has always been one of music's great pioneers, from his early days of slacker-anthem Loser and using leaf-blowers on stage, to the stark numbness of Sea Change and the lascivious brass of Midnite Vultures. Along the way he has been lauded by artists from David Bowie to Björk, via Allen Ginsberg, launched a record club, worked with Jack White, Charlotte Gainsbourg and William Orbit, and appeared in an episode of Futurama. But his latest project is different again – a collection of 20 new songs that, instead of being recorded, have been set down silently as sheet music and exquisitely illustrated, collected and published as a Song Reader, in collaboration with McSweeney's and Faber. As well as a beautiful object, the Song Reader serves as an exploration of the evolution of popular music, of music passed-down, shared in homes and communities, songs that are roused only when played, given breath. "These songs, they're here to be brought to life," Beck writes in the Song Reader's preface, "or at least to remind us that, not so long ago, a song was only a piece of paper until it was played by someone." Beck joins me on the line from Los Angeles. His voice is sturdier than I'd imagined; a warm and faintly dusty west-coast drawl. "Sheet music wasn't something that I was conscious of growing up," he says. "But it was always on the periphery. I remember being at my aunt's house, the long summer afternoons looking for something to do, and finding a pile of them in the piano stool. But it was more about the artwork then, I couldn't play the songs, so it was about the artefact itself." But something about the magic of them stuck with him; he tangled it up with his memories of the old organ accompanists in the movie theatres of Los Angeles where you could hear blues and ragtime and mountain music, as well as the junk-shop sheet-music finds of his teens, and he began to think of the time when music was not bought as a CD or downloaded online. It was a time when, as he points out in the preface, the success of a song meant the sale of 54m copies of the sheet music to Bing Crosby's Sweet Leilani. Wouldn't it be wonderful, he thought, to try and recreate something like that? He started thinking about the Song Reader project in the 1990s. "It was just an idea then to write some songs and put them in a book," he recalls. In the intervening years he came to notice how deeply music can be affected by its format. "When I first thought of the project there was no internet, there were no MP3s or file-sharing. But I collect vinyl and I've heard famous songs on their original masters," he says, "and it's so different to an MP3 – in recent years I've been paying attention to how records are affected by it. Imagine if you were writing an article and someone was to take out half the words and they were going to put them in a really different font. That's what it's like. And it's a problem, I think." The Song Reader project began as a conversation with writer Dave Eggers in 2004, and evolved over the years from a simple notion of setting out a Beck album in sheet music form to something incorporating illustration and an exploration of popular music. "I thought a lot about what songs people play," Beck says. "What are those songs that people go to? Because it is specific kinds of song – it's somewhere between American standard, jazz-based, folk-based and classic pop. And a lot have a humour and a novelty far beyond anything we listen to today." He cites examples such as The Unlucky Velocipedist and I'm a Cake-Eating Man. "Or they're almost ridiculously sentimental." The humour and sentimentality in popular song has thinned out over the decades, he explains. "It still exists in some way, but there is a different attitude to popular music that happened after the 60s. Different things were expected from music than in the 20s, when music was a thing to take your mind off other things. That changed after the folk era, and after the singer-songwriter era. Then music became more personal, more profound, it had more relevance." In his own career he has seen a something of a similar evolution in his own songwriting. "When I started out it was the beautiful innocent chaos of throwing things at the wall," he says. "My songs were more personal, more emotional, but I had a lot of rejection at open mics and performance spaces on the Lower East Side in New York. I found people tuned out. So in the early 90s I wrote humorous songs, and the absurdity of them or something trenchant about them would go over." Over time he has noticed his songwriting has become more pared-back. "I've learned to say more with less," he says. "You're still writing from the same frame, but there have been habits I've tried to break and ones I've tried to acquire." Writing the songs for the Song Reader was a new challenge again. "It was a struggle for me," he admits. "Sometimes the lyrics were too cliched, the sentiments were too shop-worn sometimes. But if the song was too clever or self-conscious it wouldn't have that universality." The result is a quite magnificent collection of songs – from the tale of veneration in Saint Dude to the vocal harmonies of Now That Your Dollar Bills Have Sprouted Wings and the heartbreak of Please Leave a Light on When You Go – songs that are simple and funny and touching. He has not written much recently, but he is certain that the project will have exerted a lasting influence on his work. "This was a very disciplined process," he says. "It was like putting an X-ray or a magnifying glass on your own songwriting – it's right there, its weaknesses glaring." Normally, songwriting is a sloppier, serendipitous process for Beck. "Half the time I'm rewriting at the last minute," he says. "Out of 20 songs, if I'm lucky one out of 10 will hold up. So I'll be more exacting. Though, I've done this before, with Sea Change. I put those songs under the microscope, took out lines that were too easy." The artists were all chosen by McSweeney's – "Though I've worked with some of them before," Beck adds. "I thought they would really understand the project, and they did, they were able to leapfrog ideas and evolve it." There are fine-drawn wolves and cartoon figures, cityscapes, diving cowboys and a plethora of pretend advertisements on the back pages. He is particularly pleased with the artwork for Do We, We Do – "It's completely beautiful. It looks like one of the illustrations from the 20s, when they had this crude colour process," and for America Here's My Boy, which initially showed a modern soldier, "but I thought it worked better with a first-world-war soldier." He wants to hear what can be done with these songs, "I want to hear how far away they are from the original way they were written," he says. "I can play them live, but I'm more interested to hear what people do with them." If there is a song he was particularly pleased with he says it is that composition number 18, Title of This Song, "It was a puzzle, a logic that was convoluted, a tangle of ideas that I had to put to a metre," is how he explains it. After we hang up I return to its sheet music, and am struck by how sweetly its sentiment seems to encapsulate this project: "It's only the notes that you've played that drowned out the thoughts from a song that was lost," it runs. "And the song you sang it didn't have a name. There was nothing but the song we were singing. There was nothing but the song we were singing."
 | | | | | | | | | | | | | | | | | | | | | | | | | Opposition plunged into an crisis as the two men fighting to lead the party continued to dispute the results of election France's opposition was plunged into an unprecedented crisis on Monday as the two men fighting to lead the party continued to dispute the results of a botched election. A second investigation confirmed Jean-François Copé as the new leader of the Union pour un Mouvement Populaire (UMP), the centre-right party of former president Nicolas Sarkozy. But his rival, former prime minister François Fillon, immediately rejected the result saying the new count was "illegal" and the UMP appeals committee that produced it was biased in favour of Copé. Copé, 48, was initially declared winner by a margin of just 98 votes after the ballot of party members eight days ago. Shortly afterwards Fillon, 58, claimed votes from three overseas districts had been "forgotten" and would have given him victory. For the past week, the two sides have ripped the UMP apart, accusing each other of cheating and election fraud while party heavyweights called for calm and tried to referee the dispute. One French newspaper described it as "live suicide". As a final attempt to reconcile the rival camps, party grandee Alain Juppé was brought in to mediate. He threw in the towel on Sunday evening after his peace efforts failed. The latest result, which appeared to show the hardliner Copé had won by 952 votes out of around 173,000 cast, followed a day of new lows that saw a bailiff sent by a judge to seize contested ballot papers turned away from the UMP headquarters, allegedly by Copé supporters. The legal move followed a breakdown in talks between Fillon and Copé. The bailiff, sent on the orders of a judge at the Tribunal de Grand Instance in Paris, arrived at the UMP offices in the 15th arrondissement of Paris on Monday morning, to remove voting papers and documentation relating to the ballot after Fillon supporters suggested there was a risk of "manipulation and alteration". However, shortly after midday, he left empty handed after party officials loyal to Copé were reported to have refused access to the documents. "The [UMP] leaders have deliberately refused to execute a judicial order ... in politics, contempt for the justice system is a pretty bad augury for the quality of leaders," said Fillon's lawyer François Sureau. The Fillon camp said it had been forced to act after Copé refused to give it access to the documents. The move was aimed at "conserving" the documents, it said. "The electoral documents cannot be considered to be safe from manipulations or alterations," said one of Fillon's supporters. Jean-Pierre Versini-Campinchi, lawyer for the UMP, was due in court on Monday evening to try to delay the seizure of the election documents by the court until the party's appeals commission has finished examining the ballot papers. There have been calls for Sarkozy to step in and "use his authority" to calm everyone down and end the stalemate. The former president had lunch with Fillon on Monday after phoning Copé in the morning, and was said to be "preoccupied" with the ongoing shambles in his party. Speaking earlier in the day, Juppé said: "It's clear that he is the only one who today has sufficient authority to finally propose a solution, that, as far as I'm concerned, is difficult to see. Can Nicolas Sarkozy calm things down and persuade the two parties back around the table to discuss a solution? That's for him to decide." Former UMP cabinet minister Nathalie Kosciusko-Morizet launched a petition calling for a re-vote among the 300,000 party members, saying the "political legitimacy" of the first election on 18 November was compromised. "It is too doubtful, too contested," she told Europe 1 radio. "Nicolas Sarkozy, so far, so near ..." wrote centre-right newspaper Le Figaro. "Far, very far from the Barnum show that is the UMP, the international conference lecturer Nicolas Sarkozy flew off to Shanghai on Friday where he held a conference on the relations between the European Union and China. "Since his return on Monday morning, Nicolas Sarkozy was plunged once more in the nightmare of an UMP in shreds. What is the former president of the Republic to do?" Analysts say Sarkozy, who until now has been careful to keep out of the fray, is primarily concerned over how the outcome of the UMP election will affect his chances of returning to politics if he wishes. At least one UMP member of parliament has threatened to leave the party if Copé refuses to stand down. Michel Piron said he would not "stay in a UMP presided over by a president who is contested and contestable". Party treasurer Dominique Dord announced his resignation . As political analysts warned the row would fuel support for the far right Front National, the FN's president, Marine Le Pen, told French television: "The UMP no longer exists. The UMP is finished. "Whoever runs the UMP will have no legitimacy. Either they re-run the election, which would be reasonable, or the UMP announces its death and at that moment becomes two structures." In the vacuum left by the implosion of the official opposition party, the FN has been quick to vaunt itself as the only party able to take on François Hollande's Socialist government. "We will welcome [UMP members] with open arms, because the real battle against the left must be fought and today, tomorrow and in the months to come the UMP is clearly not in a state to fight it," she said.
  | | | | | | | | | | | | | | | | | | | | | | | | | Small group of Republicans indicate they may go back on deal signed with Norquist pledging not to raise taxes on Americans Democrats have welcomed what they say are the first cracks in the Republican party's long-standing opposition to any tax rises, which Barack Obama has insisted must be part of a deal to resolve the fiscal cliff crisis. But anti-tax campaigner Grover Norquist, a key figure in the negotiations, predicted that Republican members of Congress would not back down and insisted he would hold them to pledges most of them signed not to raise taxes. In an interview with the Guardian, Norquist, president of Americans for Tax Reform, was scathing about a small group of Republicans who hinted over the weekend that they might break that pledge in order to resolve the crisis. Over the last 48 hours, senators Lindsey Graham and Saxby Chambliss and congressman Pete King have said they do not feel bound by the Norquist pledge they signed. Members of Congress returned to Washington on Monday after the Thanksgiving holiday with time running out to resolve the crisis before the 1 January deadline. If no deal is reached, all taxpayers will face rises and huge across-the-board cuts will be implemented, including military and welfare spending. Norquist portrayed the three Republicans who have broken ranks as being the usual suspects, not representative of the party at large and over-fond of appearing on television. Norquist, who is a central figure in the fiscal cliff negotiations, predicted these members of Congress did not mark the start of a stampede by Republicans in Congress. He predicted the Republican coalition against tax rises – the majority of Republican members of Congress have signed Norquist's pledge not to vote for an increase – will hold fast. "One cannot see into the future," Norquist said. "But in 2011 the same people were saying the same thing. The Republican party held and the leadership held." The promise is one of the biggest stumbling blocks to getting Republicans to support any fiscal cliff deal involving a tax rise. President Obama is insisting that as part of a tax and spending deal to prevent America going over the 'fiscal cliff', taxes for the wealthiest need to rise. Democrats welcomed the comments by Graham, Chambliss and King as offering hope of a deal. Dick Durban, a senior Democratic senator, said: "Let me salute Lindsey Graham. What he just said about revenue and taxes needed to be said on his side of the aisle." Graham, on ABC, said: "I will violate the pledge, long story short, for the good of the country, only if Democrats will do entitlement reform." Chambliss told a Georgia TV station: "I care more about my country than I do about a 20-year-old pledge." He added: "If we do it [Norquist's] way, then we'll continue in debt." King, on NBC, concurred, saying: "A pledge you signed 20 years ago, 18 years ago, is for that Congress. … For instance, if I were in Congress in 1941, I would have signed a declaration of war against Japan. I'm not going to attack Japan today. The world has changed, and the economic situation is different." Norquist said the views of these three were not new and the same views had been expressed during the 2010 and 2011 congressional stand-offs. "First of all, the three said the same thing two years ago. They are trying today to start a stampede over the debt ceiling." He added: "These are three guys who like television. But that has not in the past translated into the rest of the party voting with the guys who want on television. Could it happen? Yes. Does history suggest it will happen? No." Norquist began his no-tax-rise pledge more than two decades ago and has collected the signatures of the bulk of Republican members of Congress. The pledge says they would "oppose any and all efforts to increase the marginal income tax rates for individuals and/or businesses". Norquist said: "They have made a promise to constituents. If they break it, they can have that conversation with their constituents. It is like someone who cheats on their wife." He described the three as having "impure thoughts" but noted that they had not yet acted on them and were only saying they might vote for tax increases. "They might also shoplift, or might rob a bank," Norquist said. He proposed that during the negotiations C-Span be allowed to cover the behind-closed-doors negotiations and that once a deal is reached, it be printed and made available to the public for seven days before a vote.
  | | | | | | | | | | | | | | | | | | | | | | | | | Schools will be closed and universities and many workplaces will wrap up early for protests over president's new powers Egypt is braced for a wave of protests on Tuesday against the decree granting new powers to President Mohamed Morsi. Other demonstrations are planned by the Muslim Brotherhood and Salafists in support of the decree. Most schools will be closed and universities and many workplaces will wrap up early in anticipation of the marches, which are expected to draw tens of thousands to the streets. Morsi issued his decree last Thursday, granting himself sweeping powers and immunity from judicial challenges over any laws he may pass until a new parliament is elected and a constitution is in place. He also granted immunity to the Brotherhood-dominated constituent assembly tasked with drafting the constitution. At the same time he removed the Mubarak-era general prosecutor and appointed a new one in his stead. On Monday evening Morsi met representatives of the supreme judicial council in an attempt to end the impasse. Before the meeting, the justice minister, Ahmed Mekki, who is mediating between the presidency and the judiciary, said a resolution was "imminent". Opposition to the decree has brought together disparate secular forces with pro-revolution movements across the political spectrum. Marches will set off from various starting points in Cairo and lead up to a mass demonstration in Tahrir Square. The Muslim Brotherhood demonstration in support of Morsi's decree has been relocated from central Cairo to a location in front of Cairo University in Giza, in order to avoid potential clashes. Violence erupted in the wake of the decree in some of Egypt's governorates, resulting in the death of a teenage member of the Brotherhood youth movement in Damanhour. Islam Massoud, 15, was buried in his home town after a funeral march that drew thousands of mourners. Protests had begun before Morsi's declaration. Four days earlier demonstrators clashed with police near Tahrir Square on the one-year anniversary of clashes that resulted in 47 casualties. This year's fighting resulted in the death of another teenager, Gaber Salah, who was a member of the April 6 youth movement. His funeral procession through Tahrir also measured in the thousands.
  | | | | | | | | | | | | | | | | | | | | | | | | | Finance ministers are making a third attempt to agree a deal over Greece's debts, at a Eurogroup meeting in Brussels today
| | | | | | | | | | | | | | | | | | | | | | | | | Defence minister says he will not stand in January elections as he wants to spend more time with his family Israel's defence minister, Ehud Barak, has announced he will retire from party politics at the next election in January. But the former prime minister kept open the possibility of retaining the defence portfolio if the prime minister, Binyamin Netanyahu, is reelected and reappoints him to the cabinet as an individual not a party leader in the governing coalition. Barak said he will not run in the election and that he wanted to spend more time with his family. "There are many ways to contribute to the state, politics isn't the only one," he said. "My decision to retire stems from my desire to devote that time to my family, and also because I have never felt that politics was the height of my ambition. "I made the decision not without qualms but ultimately with a whole heart." Asked if he could serve as defence minister in the next government, he said the question was irrelevant. But politicians close to Netanyahu told Israel Radio there was no reason for Barak not to be defence minister as a civilian if the prime minister chooses to appoint him after the elections. Avigdor Lieberman is touted as the likely next defence minister, leader of Yisrael Beiteinu which has merged with Netanyahu's Likud party for the election. The agreement gives Lieberman the right to choose any cabinet portfolio he wants and he has indicated defence. But Lieberman is under investigation for fraud, money laundering and witness tampering. If he were to be charged, he would not be able to take up a cabinet position. Barak's announcement shakes up the vote because his Independence party is part of Netanyahu's coalition. It was launched after Barak quit as Labour party leader because a majority of its MP were opposed to remaining in Netanyahu's government over its stalling of the peace process with the Palestinians. The Independence party failed to widen its base of support over the past two years with some surveys suggesting voters would deal it an embarrassing blow in January's election. But it did receive a bounce in the polls from Barak's handling of this month's assault on Gaza. His announcement adds a fresh twist to the ever-shifting alliances of Israeli politics. It also comes as Tzipi Livni, Israel's former foreign minister and former head of the Kadima party founded by Ariel Sharon, plans to launch a new party this week and return to politics, which can be expected to divide the centre-left vote. Barak's announcement was greeted with applause from rightwing parties allied to Jewish settlers in the occupied territories. They said his actions as defence minister, including agreeing to a partial settlement construction freeze, had hurt their cause. Hamas claimed Barak's retirement was another success for its military campaign and was brought about by the recent fighting in Gaza. Barak trumpeted his proudest achievements, including more than 50 years in the military. "This is the culmination of seven and a half years in this office, two terms under three governments, one of which I was at the head. Years in which, along with others, I led the defence establishment and the IDF [Israel Defence Force], through the rehabilitation after the second Lebanon war, strengthening our 'long arm' and building our operational capabilities to cope with the Iranian threat for if and when a decision should be made, pushing through the 'Iron Dome' and the multilayer interception system," he said. "And no less important, we secured the nature and depth of the relationship with the US in the operational, political and intelligence spheres."
 | | | | | | | | | | | | | | | | | | | | | | | | | Supreme court orders federal appeals court to consider university's claim that Obamacare violates religious freedoms The supreme court has revived a Christian college's challenge to President Barack Obama's healthcare overhaul, with the acquiescence of the Obama administration. The court on Monday ordered the federal appeals court in Richmond, Virginia, to consider the claim by Liberty University in Lynchburg, Virginia, that Obama's healthcare law violates the school's religious freedoms. A federal district judge rejected Liberty's claims, and the fourth US circuit court of appeals ruled that the lawsuit was premature and never dealt with the substance of the school's arguments. The supreme court upheld the healthcare law in June. The justices used lawsuits filed by 26 states and the National Federation of Independent Business to uphold the healthcare law by a 5-4 vote, then rejected all other pending appeals, including Liberty's. The school made a new filing with the court over the summer to argue that its claims should be fully evaluated in light of the high court decision. The administration said it did not oppose Liberty's request. Liberty is challenging both the requirement that most individuals obtain health insurance or pay a penalty, and a separate provision requiring many employers to offer health insurance to their workers. The appeals court could ask the government and the college for new legal briefs to assess the effect of the supreme court ruling on Liberty's claims before rendering a decision. Liberty's case joins dozens of other pending lawsuits over health reform, many involving the requirement that employer insurance plans cover contraception, which are working their way through the federal court system.
  | | | | | | | | | | | | | | | | | | | | | | | | | Death penalty clause dropped from latest draft but bill encourages violence against gay men and lesbians, say activists The Uganda anti-homosexuality bill is back in parliament. Its return was announced by the speaker, Rebecca Kadaga, who, according to this report, is committed to passing it by the end of the year, although Ugandan activists believe it could be passed as early as this week. Speaker Rebecca Kadaga told the Associated Press that the bill, which originally mandated death for some gay acts, will become law this year. Ugandans "are demanding it", she said, reiterating a promise she made before a meeting on Friday of anti-gay activists who spoke of "the serious threat" posed by homosexuals to Uganda's children. Some Christian clerics at the meeting in the Ugandan capital, Kampala, asked the speaker to pass the law as "a Christmas gift".
The latest news is that the death penalty clause has been removed although the threat of death remains. The second objective states the bill will "prohibit and penalize homosexual behaviour and related practices in Uganda as they constitute a threat to the traditional family". The phrase "related practices" could mean anything and leaves the door open to subjective interpretations. This is later spelled out in more detail to the extent that "touching – with the intent to commit a homosexual act" is a crime. Any form of advocacy and failure to report an offense will be subject to a fine and up to three years in prison. This will include medical staff, counselors, priests and pastors, employers and family members. One of the worst aspects of the bill is in clause five, which effectively allows "victims" to kill anyone they claim has committed a homosexual offense against them. [1] A victim of homosexuality shall not be penalized for any crime committed as a direct result of his or her involvement in homosexuality.
The violence has already begun as LGBTI (lesbian, gay, bisexual, transgender, and intersex) and those perceived as being LGBTI have been arrested and harassed. Once the law is in place the potential for acts of physical violence against LGBTI people is very real. We should not forget the murder of David Kato in January 2011. Under the anti-homosexuality bill his murderer would be free today. This clause is an open invitation to lynch LGBTI people so in reality the death penalty remains. The jurisdiction of the bill extends beyond the borders of Uganda and includes the "nullification of inconsistent international treaties, protocols declarations and conventions". It remains relevant if: [a] a person who, while being a citizen of or permanently residing in Uganda, commits an act outside Uganda, which act would constitute an offence under this Act had it been committed in Uganda; or [b] the offence was committed partly outside and or partly in Uganda.
Although we are told the bill is supported by the majority of parliament and the country, there are dissenting voices. Blogger Sebaspace says that some politicians, including the president, do not support the bill. He also quotes the former mayor of Kampala as saying he thought the bill unnecessary but that it was too risky to oppose it, which begs the question of how many other parliamentarians support the bill for similar reasons, including, some say, Madam Kadaga herself.
We already know that Uganda's president, Yoweri Museveni, doesn't like the anti-gay bill because he has said so publicly. Yes, it was wrung out of him by a persistent foreign press but Museveni is on record about his views which are that homosexuality is not new in Africa and, more pertinently, that he doesn't want anything to do with this bill. His motivation for rejecting the bill is debatable of course – but that's not our concern right now.
One of Museveni's long term advisers, John Nnagenda, is also on record condemning the bill. We also know that the outgoing leader of the opposition, Forum for Democratic Changes's Kizza Besigye, would have decriminalized homosexuality if he had had the chance because he is on record saying so a month before the last elections, which he lost to Museveni.
The complete bill in PDF format can be read here. For updates and questions on how to support the campaign to stop it follow @frankmugisha and @Seba_Space
 | | | | | | | | | | | | | | | | | | | | | | | | | Cameron Diaz's much ridiculed bid to sound Texan rodeo star is the latest in a resonant cinematic tradition of feeble phonemes Gambit has attracted plenty of brickbats, but one complaint might have surprised yesteryear's filmgoers. Cameron Diaz plays an over-the-top rodeo queen, so she weighs in with a wacky Texan accent. What's wrong with that? Well, it isn't quite the way that Texans actually speak. Her effort is "insufferable" according to Guanabee.com; it had BuzzSugar "cringing". Sadly, California–born Diaz has form when it comes to mangling the speech of the southern states. The moral dilemma film The Box was set in Richmond, Virginia. For this, Diaz laid on what a Brit might have thought an unobjectionable southern accent. The city guide Black Book heard things differently. "It's that generic cornpone drawl that Hollywood would usually have us believe everyone below the Mason-Dixon line speaks," the magazine fumed. "To natives of the south, this refusal to acknowledge what are in many cases profoundly different regional dialects can be pretty grating/laughable/offensive." Diaz isn't alone in displeasing the confederacy with her diction. In Sweet Home Alabama, Reese Witherspoon's accent was "ear-piercingly awful", according to Pajiba.com. Asked to provide a Civil War era accent in Cold Mountain, Renee Zellweger "just clobbers it to death". Tom Hanks's effort in The Ladykillers "became intolerable". According to Moviefone, Nicholas Cage's accent in Con Air is "laughably bad". Note that these are American actors being arraigned for failing to get an American accent right. This is a step beyond the groans that have long been evoked by stars' efforts to capture foreigners' speech. Top 10s of the worst-ever such exercises have been compiled with glee for decades. Brits may be surprised to learn that Dick Van Dyke's performance in Mary Poppins came in at only number 14 in a list prepared last year by Life magazine. Kevin Costner came out top as Robin Hood: Prince of Thieves, while Keanu Reeves appeared ahead of Van Dyke in both Bram Stoker's Dracula and Little Buddha. Other Van Dyke beaters included Drew Barrymore (Ever After), Julia Roberts (Mary Reilly), Charlton Heston (Touch of Evil), Angelina Jolie (Alexander) and Tom Cruise (Far and Away). Infelicitous though some of these performances may have been, they used to arouse more amusement than irritation. Reeves found that his verbal debacles helped make his name. Actors who burned their fingers were allowed to abandon the field: after that regrettable Irish lilt in Far and Away, Cruise, alone among the cast of Valkyrie, didn't even try to sound German. After all, the stars of cinema's heyday saw no need to mimic the inflections of the characters they portrayed. The likes of John Wayne, Clark Gable, Bette Davis, Humphrey Bogart, Cary Grant and Katharine Hepburn spoke the way they spoke, and audiences were expected to put up with it. In those days, when an accent seemed required at all, a kind of generic funny-foreigner-speak was often considered sufficient. Now, however, as Diaz has discovered, things have changed. You don't just have to sound like a native of your character's country. You're expected to convey the authentic voice of the region involved. Thus, Leonardo DiCaprio was expected to learn Bostonian for The Departed. Cinderella Man required the specific tones of 1930s New York. Last year, Anne Hathaway was roundly condemned for her performance in One Day. It wasn't just that she didn't sound properly British; she'd failed to capture the unique resonances of south Yorkshire. Russell Crowe, on the other hand, was accused of allowing too much Yorkshire to seep into his Robin Hood's Nottinghamshire brogue. One of the forces behind this phonic revolution seems to have been sheer thespian ambition. Marlon Brando is seen as a pioneer of geographical consciousness, trying for an English accent in Mutiny on the Bounty, an Irish one in The Missouri Breaks and a German one in The Young Lions when other stars might not have bothered. Meryl Streep may have been yet more influential. Not only has she set a demanding example by having a go at Irish, Italian, Polish and Australian speech; she's risen to the challenge of those prickly American regions, and refused to be put off by much jeering along the way. Some film-makers have been reluctant to go along with the trend, fearing that audiences would find unfamiliar accents a barrier between them and the story. However, the indications now, as Diaz has also discovered, are that filmgoers are coming to insist that actors must make the effort. Paradoxically, one effect of cultural globalisation seems to have been growing awareness of, interest in, and attachment to local characteristics, including patterns of speech. The voice coach industry has therefore blossomed. Whereas actors were once taught how to add an African or Asian twang to their voices, they're now trained up in the niceties of Ugandan versus Somali or Korean versus Japanese, not to speak of the fine distinctions between Illinois and Indiana. Most actors are doing their best, even those who don't always succeed. Zellweger may have disappointed some in Cold Mountain, but her Bridget Jones was a triumph of contemporary middle-class Englishness comparable with Gwyneth Paltrow's in Sliding Doors. Still, there are some who lack sufficient "phonemic awareness" to get on top of this skill. Others give the impression that they just can't be arsed. Sean Connery, whose attempt at Chicago-Irish in The Untouchables was voted "worst film accent of all time" in an Empire magazine poll, seems to think his highland grunt will do for anything from a Russian submariner to an English king. Tomorrow, however, seems to belong to the phonologically correct. Film-makers who really care, like Ken Loach, who makes a point of casting people from the places where his films are set, can expect more recognition for their pains. Actors who go out of their way to get it right, like Daniel Day-Lewis, who mastered the most subtle intricacies of Belfast speech for In the Name of the Father, may begin to enjoy the appreciation they deserve. We should applaud the effort that's going to be required. Being a movie star ain't always as easy as it looks. Still, this aspect of the trade is one that you can safely try for yourself. Why not give it a go? Like this.
 | | | | | | | | | | | | | | | | | | | | | | | | | Current governor of the Bank of Canada has a reputation as a tough operator and is credited with helping the country survive the financial crisis unscathed George Osborne sprang a surprise on the City on Monday when he put Canada's central bank chief in charge of the Bank of England. Mark Carney, the current governor of the Bank of Canada, is largely unknown outside the cloistered circles of central bankers and financial regulators, but has gained a reputation as a tough operator able to confront major banks at the heart of the financial crisis. The chancellor said Carney would bring a wealth of experience to the job, which from next year will include acting as the City's top watchdog alongside setting interest rates and monetary policy. In appointing a foreign national to the top job at the Bank of England, Osborne rejected several high profile British candidates, including the current deputy governor and frontrunner for the job, Paul Tucker, and the chairman of the Financial Services Authority, Adair Turner. Carney is the first governor in the Bank's history to be appointed after an open recruitment process, in which the role was advertised and candidates interviewed by a panel. Osborne said he had recommended Carney to David Cameron, who in turn recommended him to the Queen for appointment. The chancellor said Carney was "the outstanding central banker of his generation with unparalleled expertise in financial regulation". He told MPs: "He will bring a fresh perspective. He has got what it takes to help bring families and businesses through these incredibly challenging economic times. "My responsibility was to get the best for Britain, and with Mark Carney we've got that." Born in Canada, the 47-year-old intends to bring his British wife and four children to the UK and apply for British citizenship. But he rejected the Treasury's stipulation that the new governor serve for a single eight-year term in favour of a contract that runs for only five years. The shadow chancellor, Ed Balls, welcomed the appointment, saying he had worked with Carney on several occasions and found him to be an impressive character who was well qualified to take on the role. Labour backbench MPs joined the chorus of approval, with one describing Carney as a breath of fresh air. City analysts said that while they were surprised by the appointment, Canada's ability to survive the financial crash had boosted the status of its central bank boss. Carney said he had strong ties to the UK, not only through his wife's family, but also from working here for a decade and making contacts with UK businesses and financial institutions over recent years. He said: "I think I can play a constructive role in relaunching the institution in its new role in promoting financial stability and the regulation of financial services." But there will be some who question why an outsider with little in-depth knowledge of the UK economy should take on the country's most powerful regulatory job. He will need to manage a nine-strong monetary policy committee with eight people who have a much deeper and broader knowledge of the business culture and economic quirks of the UK economy than him. Canada, like Sweden, is credited with surviving the financial crash largely unscathed, though both countries suffered crippling banking crashes in the early 1990s, after which they put in place strong regulations. Osborne wants Carney to carry through a raft of structural reforms to City regulation. The Bank of England will become the main regulator, taking responsibility for making sure the financial system becomes robust enough to withstand a future crash on the same magnitude as the 2008 credit crunch. Osborne said: "It says something of Mark Carney's abilities that he was chosen by the world's financial regulators to run the global regulator, the Financial Stability Board."
 | | | | | | | | | | | | | | | | | | | | | | | | | After five-year-old girl is wounded in the Bronx, commissioner notes gun crime is high in president's hometown of Chicago New York's police chief has hit out at President Barack Obama over his refusal to tackle gun violence, accusing him of uttering "barely a peep" on the issue. NYPD commissioner Raymond Kelly is quoted in the New York Daily News as noting that Chicago is "maybe the city most affected" by gun violence, adding: "The president's hometown. But barely a peep out of him." His comments echo that of mayor Michael Bloomberg, who has repeatedly called on the White House to act over America's lax gun controls, but to no avail. Bloomberg is one of the highest profile anti-gun politicians in the US, regularly pumping his own money into campaigns to counter the influence of the pro-gun National Rifle Association. In the aftermath of the Colorado theatre massacre earlier this year – a mass shooting that resulted in the deaths of 12 moviegoers – he issued a stark challenge to Obama and his then-rival for the White House, Mitt Romney. "You know, soothing words are nice, but maybe it's time that the two people who want to be president of the United States stand up and tell us what they are going to do about it," he said at the time. New York has seen a decline in gun-related homicides in recent years, but as Bloomberg noted after a recent fatal shooting outside the Empire State Building, the city is "not immune to the problem of gun violence". The latest comments by Kelly follow the wounding of a five-year-old girl in the Bronx on Sunday. A stray bullet pierced the lung of Hailey Dominguez as she was returning home from a baby shower with her mother and brother in the early hours. The Daily News said Monday that she remained in a "critical but stable" condition. Reacting to the latest shooting, Kelly is quoted as saying: "We can never accept the shooting of a child as a part of city life. We can never accept the notion that somehow children are going to be a part of the casualty count, whether somebody else is targeted or not." He said: "Children are not supposed to be collateral damage". But the pleas of both Kelly and Bloomberg have done little to shift policy in Washington, where the pro-gun lobby exert a great deal of influence. Prior to coming into office, Obama had been a vocal supporter of a ban on semi-automatic weapons and a tightening up of gun controls in general. But since assuming office, he has largely remained silent on greater restrictions on ownership. And in 2009 he signed laws allowing people to carry concealed weapons in the Grand Canyon, Yellowstone and other national parks and have guns in checked bags on Amtrak trains. The anti-gun lobbying group Brady Campaign gave the president an "F" on gun-control policy during his first term.
 | | | | | | | | | | | | | | | | | | | | | | | | | Sir Mervyn King's successor announced as Bank of Canada governor
 | | | | | | | | | | | | | | | | | | | | | | | | | Negotiations over the so-called 'fiscal cliff' resume in earnest as Congress returns today. Follow the latest developments in our updating blog
  | | | | | | | | | | | | | | | | | | | | | | | | | Report says 'hard-earned rise in consumer confidence at risk' as retail figures show encouraging Thanksgiving weekend spending A failure to reach a deal over the year-end automatic spending cuts and an expiration of tax breaks – known collectively as the fiscal cliff – would hit consumer spending and economic growth in the holiday season, according to the White House. As Congress resumed after the Thanksgiving break and after the busiest shopping weekend of the year in the US, the Obama administration released a prediction that consumer confidence would take a significant hit if a deal was not reached. Sales figures for the holiday weekend were encouraging: total spending was $59.1bn, 12.8% higher than last year, according to a survey from the National Retail Federation. An estimated 139.4m adults visited US stores and websites from Thanksgiving through Sunday, up 6.4% from last year. But Monday's report from the White House National Economic Council, entitled The Middle-Class Tax Cuts' Impact on Consumer Spending and Retailers, warned that consumer confidence, currently at a five-year high, was at risk. "The hard-earned rise in consumer confidence will be at risk if the middle-class tax cuts are not soon extended with a minimum of political drama," it said. If Congress fails to act, the report states, every American family's taxes will automatically go up, "including the 98% of Americans who make less than $250,000 a year, and the 97% of small businesses that earn less than $250,000 a year. A typical middle-class family of four would see its taxes rise by $2,200." The report says: "While the president is committed to working with Congress to reach compromises on areas of disagreement, there is no reason to delay acting where everyone agrees: extending tax cuts for the middle-class. There is no reason to hold the middle-class hostage while we debate tax cuts for the highest income earners." A report from the independent Congressional Budget Office recently warned that failure to reach an agreement over the fiscal cliff would plunge the US back into recession and drive unemployment back up to 9.1%, from the current 7.9%. The White House report does not mention the impact on unemployment or make any predictions about the return to recession, concentrating instead on the immediate impact on consumers. "American consumers are the bedrock of our economy, driving more than two-thirds of the overall rise in real GDP over 13 consecutive quarters of economic recovery since the middle of 2009," the report says. "And as we approach the holiday season, which accounts for close to one-fifth of industry sales, retailers can't afford the threat of tax increases on middle-class families."
 | | | | | | | | | | | | | | | | | | | | | | | | | Negotiator Jonathan Pershing says America deserves more credit for the 'scale and extent' of its action The United States defended its track record on fighting climate change on Monday as UN talks began in Doha, saying it is making "enormous" efforts to slow global warming and help the poor nations most affected by it. Other countries have accused Washington of hampering the climate talks ever since the Bush administration abandoned the Kyoto protocol, the 1997 treaty limiting emissions of heat-trapping gases by industrialised countries. As negotiators met for a two-week session in oil and gas-rich Qatar, US delegate Jonathan Pershing suggested America deserved more credit. "Those who don't follow what the US is doing may not be informed of the scale and extent of the effort, but it's enormous," Pershing said. He noted that the Obama administration has taken a series of steps, including sharply increasing fuel efficiency standards for cars and trucks, and made good on promises of climate financing for poor countries. A climate bill that would have capped emissions stalled in the Senate. "It doesn't mean enough is being done," Pershing said. "It's clear the global community, and that includes us, has to do more if we are going to succeed at avoiding the damages projected in a warming world." The two-decade-old UN talks have not fulfilled their main purpose: reducing the greenhouse gas emissions that scientists say are warming the planet. The goal is to keep the global temperature rise under 2C (3.6F), compared to pre-industrial times. Efforts taken so far to rein in emissions, reduce deforestation and promote clean technology are not getting the job done. A recent projection by the World Bank showed temperatures are expected to increase by up to 4C (7.2F) by 2100. Scientists warn that dangerous warming effects could include flooding of coastal cities and island nations, disruptions to agriculture and drinking water, the spread of diseases and the extinction of species. Attempts to forge a new climate treaty failed in Copenhagen three years ago, but countries agreed last year to try again, giving themselves a deadline of 2015 to adopt a new pact. Several issues need to be resolved by then, including how to spread the burden of emissions cuts between rich and poor countries. That is unlikely to be decided in the current talks in the Qatari capital of Doha, where negotiators from nearly 200 countries are focusing on extending the Kyoto protocol, and trying to raise billions of dollars to help developing countries adapt to a shifting climate. "We owe it to our people, the global citizenry. We owe it to our children to give them a safer future than what they are currently facing," said South African roreign minister, Maite Nkoana-Mashabane, who led last year's talks in Durban, South Africa. "Climate change is no longer some distant threat for the future, but is with us today," said Greenpeace climate campaigner Martin Kaiser, who was also at the Doha talks. "At the end of a year that has seen the impacts of climate change devastate homes and families around the world, the need for action is obvious and urgent." The Kyoto protocol is seen as the most important climate agreement reached in the UN process so far. The first "commitment period" expires this year, so negotiators in Doha will try to extend it as a stopgap measure until a wider deal can be reached. Environmentalists found the choice of Qatar as host of the two-week conference ironic. The tiny Persian Gulf emirate owes its wealth to large deposits of gas and oil, and it emits more greenhouse gases per capita than any other nation. Qatar has not even announced any climate action in the UN process. Former Qatari oil minister Abdullah Bin Hamad al-Attiyah opened the conference Monday, saying: "We should not concentrate on the per capita (emissions). We should concentrate on the amount from each country. "I think Qatar is the right place to host" the conference, he said.
 | | | | | | | | | | | | | | | | | | | | | | | | | Bank says iPad maker's shares could have reached trough and should move higher from now on Apple shares have dropped around 20% since their recent peak in September, but analysts at Citigroup believe the worst could now be over. A combination of factors have led to Apple's decline - the US election, worries about America's fiscal cliff, Europe's financial problems, a slowdown in China, as well as concerns about the company's own growth prospects amid increased competition. Citi said: We assert that Apple's share of the smartphone market is at risk from low-end smartphones and competition from other eco-systems. We see upside from tablets, but this negatively impacts gross margin. Even so, Citi has begun coverage of Apple with a buy recommendation and $675 a share price target. The bank said We believe Apple shares have already achieved trough, setting them up for near-term appreciation. We note that based on history, after such sell-offs, Apple shares typically increase 20%-50%. Apple is currentlyhh nearly 1% higher at $576, even as Wall Street opens lower, with the Dow Jones Industrial Average down 0.5%.
 | | | | | | | | | | | | | | | | | | | | | | | | | Finance ministers are making a third attempt to agree a deal over Greece's debts, at a Eurogroup meeting in Brussels today
| | | | | | | | | | | | | | | | | | | | | | | | | Islamabad police defuse device hidden under parked vehicle as interior minister promises protection for talkshow host A popular Pakistani television journalist who incurred the wrath of the Taliban by daring to criticise the movement over its attempted assassination of Malala Yousafzai vowed to continue "speaking the truth" on Monday after a bomb was found planted under his car. Police in Islamabad said the remotely controlled device was defused by bomb experts after it was discovered shortly after Hamid Mir, one of the country's best-known television presenters, returned from a hair appointment to his parked vehicle. "This was a highly sophisticated device containing around half a kilogram of high explosives," said Bani Amin Khan, Islamabad's inspector general of police who was in no doubt that it could have killed. "It was in a metal box attached by magnets to the bottom of the car, under the seat where Mr Mir usually sits." Although bombings and assassinations by militant groups are a near daily occurrence in Pakistan, car bombs are rare. The drama on Islamabad's suburban streets played out on Geo TV, the hugely popular private channel that employs Mir as one of its star political talkshow hosts. Rehman Malik, the country's interior minister, rushed to Mir's house and promised television viewers that the celebrity presenter would receive all the police protection he required. Mir already has three police guards, who have been provided by the government for the past few months. Khan said one of the guards spotted the box under the car, which was given away by a piece of plastic bag trailing out of it. No group has yet taken responsibility for planting the bomb, although Mir reportedly received threats from the Taliban earlier this year in the wake of the shooting of Malala, the 15-year-old girl who campaigns against attempts by militants to shut down girls' schools. The attempt to kill Malala prompted a storm of outrage from a Pakistani media that is normally careful about directly criticising the Taliban and other militant groups. On one edition of his show Capital Talk shortly after the shooting of Malala, Mir concluded his programme by pointedly saying he rejected the Taliban's claims that the attack on the schoolgirl was justified under Islamic law. But some journalists said Mir had other enemies besides the Taliban. His programmes on Baluchistan, the province where the military has been accused of extra-judicial killings and "disappearances", are thought to have angered the country's powerful army establishment. Mir's status as a hate figure for militants is a marked change from an earlier period in his career when he had a good working relationship with both Pakistan's military establishment and militant groups, becoming one of the few journalists to interview Osama bin Laden. But in 2010 a tape recording of a conversation believed to be between Mir and a Taliban spokesman showed the journalist apparently urging the movement not to release a hostage who was later executed. Although Mir has always strenuously denied his voice was on the tape, some of his colleagues in the media believe the row prompted him to join the country's embattled band of so-called media "liberals" who dare to criticise the security establishment. Pakistan is one of the most dangerous places in the world for journalists, according to Reporters without Borders, which last month said eight journalists had been killed in Pakistan this year. In 2011 the country's spy service was implicated in the killing of the investigative journalist Syed Saleem Shahzad. Another Geo TV star, the journalist Najam Sethi, is so fearful that his outspoken nightly commentary has made him a target that he rarely leaves his house and broadcasts from a special studio erected in a spare bedroom. "We are with you Hamid!" Sethi tweeted to his tens of thousands of followers on Monday. "We must be strong [and] united. We will not be intimidated by state or non-state terrorists and extremists."
  | | | | | | | | | | | | | | | | | | | | | | | | | Follow the day's developments as they unfolded
  | | | | | | | | | | | | | | | | | | | | | | | | | Congolese soldiers 'drunk, angry and paranoid' in contrast to apparent order of rebels, but both sides accused of abuses "The soldiers came and they started to shoot and rape our women. They stole all the food and goods in the shops. They said if anyone spoke out against them, they would be killed." The soldiers being described do not belong to a rebel militia running amok, instead they are members of the national army of the Democratic Republic of the Congo. The accusation was made by a resident of the town of Minova, who did not wish to give his name for fear of reprisals. An extraordinary role reversal is taking place amid the violent conflict in eastern Congo. The rebel M23 movement is well-equipped, clad in crisp uniforms and gives the impression, at least when TV cameras are watching, of military discipline. The official national army, meanwhile, is hungry, badly paid and collapsing into disarray. After M23 swept through the city of Goma last week and seized a satellite town 26 miles (40km) to the west, the Congolese army had mounted a surprise counterattack. It failed spectacularly. Thousands of army soldiers retreated to Minova, around 50km from Goma, with smashed regiments mixed up and leadership sorely absent. They are visibly drunk, angry, paranoid and intent on demanding money and cigarettes from visitors and locals. Civilians describe the tension as unbearable and accuse the soldiers of rape and looting since their arrival last Thursday. A UN source in Minova backed the claims. Mousinganga Siprian, an elderly man with a bad leg and crutch fashioned from a branch, said the soldiers had also killed people, though that could not be confirmed. The Congolese army seems to be in a tailspin. The commander of the ground forces, General Gabriel Amisi, was suspended last Thursday after a UN report accused him of supplying weapons to illegal rebel groups. Analysts in Congo suspect the suspension may also be punishment for the army's meek defence of Goma. M23 launched its advance on 15 November and had captured the city, home to around 1m people, by midday on 20 November. The army fled and allowed them to walk into the city. General Francois Olenga, Amisi's stand-in, arrived in Minova on Saturday and has begun the unenviable task of reorganising the troops, instilling discipline and boosting morale. However, another emphatic defeat at the hands of M23 could spell the complete the disintegration of the army in this troubled region. Official estimates of the army's manpower stand at 150,000, though sceptics believe this is wildly exaggerated to conceal corruption, and put the true figure closer to 70,000. M23 was thought to be only 1,500-strong before it took Goma, but this figure is now likely to be much higher. The army's decline is in stark contrast to the growing confidence and discipline of rebel in and around Goma. In scenes more reminiscent of liberating government forces, M23 marched into Goma with eyes fixed straight ahead, paying little attention to the photographers, cameramen and journalists following them and asking questions. Observers increasingly perceive the fingerprints of Rwanda, accused by the UN of providing M23 with military and financial support – evidence described by British foreign secretary William Hague as "credible and compelling". In the M23 bastion of Rutshuru, there is a superficial calm as armed uniformed rebels patrol the town. At a local administrator's office, with dramatic views of mist-surrounded hills, M23 fighters stand guard, salute their commanders and rest in humble mudbrick dwellings among the trees. A colonel there, who did not wish to be identified, said M23 soldiers get two meals a day, civilian clothes and soap to wash them, access to medicines and a team of 18 doctors – including exiles who have returned from the UK and other countries. They even have a barber. The colonel denied Rwandan involvement. Flourishing a digital camera, iPhone and Samsung laptop, he showed photos of UN ammunition that he said M23 had captured from the fleeing Congolese army. M23's uniforms were bought, he added, though he did not know from where. "People say the proof of Rwandan support is the new guns, but we get them from the government soldiers at the front line," the colonel said. He claimed M23 only imposes a third of the taxes that the government did. So how do they afford it all? "Many of us were in government, coming from a family with land. Everyone brings his own contribution. I came here with $4,000 [£2,500]. The one who has a cow, he sends a cow." He denied widespread allegations from the UN, Human Rights Watch and other organisations that M23 has perpetrated killings, rapes and other atrocities. He was only aware of one M23 soldier who had murdered a civilian, he claimed, and that soldier had been disciplined. Other attacks have been carried out by youths who had acquired government army uniforms and guns, he added. "We are Christian. We have a big fear of God. We pray. It doesn't make sense to kill and rape and loot. We are here for the cause. I had a good life before with a home and vehicle, but I came here where I get bitten by mosquitos. Would I just come here to rape? It doesn't make sense." However, several local residents painted a less rosy picture of life under M23. A 31-year-old teacher said: "We are forced to live with them, whatever our hearts. How can you support someone when you don't know their objectives? Even a child can tell you they are supported by Rwanda. Everyone knows." A 27-year-old farmer, with a baby tied to her back, accused M23 of forcing her to bring produce to its warehouses then failing to pay for it. "They also come during the night," she said. "They knock and if you don't open because you are afraid, they force the door or shoot with weapons. "Then they fill their vehicles with food. When you are crying and ask for help from the police, they don't come to help. When you go the fields and soldiers come, you have to pray." The woman added: "God will not accept M23 because we are suffering so much. If they took the whole country, nobody will be able to speak. We will live like slaves."
 | | | | | | | | | | | | | | | | | | | | | | | | | UMP officials loyal to Jean-François Copé deny bailiff access to election papers after breakdown in talks with rival François Fillon France's centre-right opposition party is close to total collapse after a bailiff sent to its headquarters to seize contested election papers was turned away. The move followed a breakdown in talks between the former prime minister François Fillon and rival Jean-François Copé, who have been engaged in a bitter war of words since a leadership election more than a week ago. The bailiff, sent with a court order, arrived on Monday at the offices of the UMP in Paris's 15th arrondissement to remove voting papers and documentation relating to the ballot after Fillon supporters suggested there was a risk of "manipulation and alteration". However, shortly after midday, he left empty-handed after party officials loyal to Copé were reported to have refused him access to the documents. "The [UMP] leaders have deliberately refused to execute a judicial order … in politics, contempt for the justice system is a pretty bad augur for the quality of leaders," said François Sureau, Fillon's lawyer. The Fillon camp said it had been forced to act after Copé refused to give it access to the documents. It claimed the move was aimed at "conserving" the documents. "The electoral documents cannot be considered to be safe from manipulations or alterations," said one of the former prime minister's supporters. Copé, 48, was declared winner by a narrow margin after the ballot of party members. Shortly afterwards, Fillon, 58, claimed votes from three overseas districts had been "forgotten" and gave him victory. In the mud-slinging that followed, both sides accused the other of cheating and election fraud. For the past week, the two sides have ripped apart the UMP as party heavyweights called for calm and attempted to referee the dispute. In a final attempt to reconcile the rival camps, the party grandee Alain Juppé was brought in to mediate. He threw in the towel on Sunday evening after his peace efforts failed. On Monday, there were calls for Nicolas Sarkozy to step in and "use his authority" to calm everyone down. The former president was due to have lunch with Fillon, apparently to dissuade him from taking legal action over the contested vote. "It's clear that he is the only one who today has sufficient authority to finally propose a solution, that, as far as I'm concerned, is difficult to see. Can Nicolas Sarkozy calm things down and persuade the two parties back around the table to discuss a solution? That's for him to decide," said Juppé on Monday. The former UMP cabinet minister Nathalie Kosciusko-Morizet launched a petition calling for a fresh ballot among the party's 300,000 members, saying the political legitimacy of the first election on 18 November was compromised. "It is too doubtful, too contested," she told Europe 1 radio. As political analysts warned the row would fuel support for the far-right Front National, Marine Le Pen, the FN president, declared the UMP was finished. "The UMP no longer exists. The UMP is finished," she told French television. "It's finished. Whoever runs the UMP will have no legitimacy. Either they re-run the election, which would be reasonable, or the UMP announces its death and at that moment becomes two structures." In the vacuum left by the implosion of the official opposition party, the FN has been quick to vaunt itself as the only party able to take on President François Hollande's Socialist government. "We will welcome [UMP members] with open arms, because the real battle against the left must be fought and today, tomorrow and in the months to come. The UMP is clearly not in a state to fight it."
| | | | | | | | | | | | | | | | | | | | | | | | | Follow live updates as the Egyptian president Mohamed Morsi tries to avert the crisis over the new decree granting him wide ranging powers
| | | | | | | | | | | | | | | | | | | | | | | | | Barak makes sudden announcement despite polls showing support for his Independence party ahead of elections The Israeli defence minister, Ehud Barak, has announced he is to quit politics, shaking up the country's political system just weeks before general elections. Barak, a decorated former general and former prime minister, said he would stay on in his current post until a new government is formed following the 22 January vote. "I didn't make this decision without hesitating, but I made it wholeheartedly," he told a hastily arranged news conference, saying he had been wrestling with the decision for weeks. Barak's resignation could mean the departure of the most moderating influence on the prime minister, Binyamin Netanyahu, who is expected to retain his job after the election. Barak, who heads a small centrist faction in parliament, had often served as Netanyahu's unofficial envoy to Washington in order to smooth over differences with the Obama administration. Barak, 70, made the surprise announcement even after polls showed his breakaway Independence party gaining momentum after Israel's recent military offensive in the Gaza Strip. "I feel I have exhausted my political activity, which had never been an object of desire for me. There are many ways for me to serve the country, not just through politics," he said, adding his decision was spurred in part by his desire to spend more time with his family. Barak and Netanyahu, who have enjoyed a close working relationship for most of the past four years, have reportedly fallen out over whether to defer to the US on any attack against Iranian nuclear facilities. Barak's detractors in Netanyahu's Likud party wanted him replaced. Barak evaded repeated questions about whether he might agree to serve as a cabinet minister in an upcoming government, leaving open the possibility that he might still retain an impact on Israeli politics. While most cabinet ministers also hold parliamentary seats, small numbers have been appointed as "professional" ministers without winning election.
 | | | | | | | | | | | | | | | | | | | | | | | | | Follow live updates as the Egyptian president Mohamed Morsi tries to aver the crisis over the new decree granting him wide ranging powers
| | | | | | | | | | | | | | | | | | | | | | | | | Singer made announcement several minutes into show, which he dedicated to the 'spirit and talent' of Chinese artist Sir Elton John has publicly dedicated his only concert in Beijing to Chinese artist and political critic Ai Weiwei, sending a murmur of shock through an audience accustomed to tight censorship of entertainment. Minutes into a more than two-hour show on Sunday night, John told the audience the performance was dedicated "to the spirit and talent of Ai Weiwei", according to several audience members. An internationally acclaimed sculptor and installation artist, Ai has used his art and his renown to draw attention to social injustice and remains a touchy subject for the Chinese government. He was detained for nearly three months last year, and he remains barred from leaving the country. Ai and John met each other briefly on Sunday before the concert. "I super like him," Ai said on his feed on Twitter, which is banned in China but has 180,000 followers. China-based online media sites reported on John's Beijing show, as they did on a Friday night performance in Shanghai, but they did not report the singer's remark about Ai. The Chinese government exercises tight control of live performances, requiring artists to submit detailed lists of songs, casts and crew members before approval is given. Censors further tightened scrutiny after singer Bjork shouted "Tibet, Tibet" at the close of a song titled Declare Independence at a performance in Shanghai in 2008.
 | | | | | | | | | | | | | | | | | | | | | | | | | Defence minister announces judge will examine allegations of abuse from more than 1,000 people dating back to the 1950s Australia's defence minister has apologised to military personnel past and present who were sexually abused or otherwise mistreated during their service. He also started an inquiry into hundreds of allegations of abuse over six decades. Stephen Smith made the apology in parliament on Monday on behalf of the government as the latest step in a two-year effort to reform the culture of the Australian military and make it more accepting of women. "Young men and women have suffered treatment which no member of our defence force or our community generally should experience," Smith said. "Young men and women have endured sexual, physical or mental abuse from their colleagues which are not acceptable and do not reflect the values of a modern, diverse, tolerant, Australian society," he added. He noted claims that officers had abused their positions of trust through their own behaviour or by turning a blind eye to the actions of others. Smith also announced that the retired judge Len Roberts-Smith had been appointed to examine allegations of abuse from more than 1,000 people dating back to the 1950s. The earliest case relates to the alleged abuse of a 13-year-old navy trainee in 1951, while the most recent relates to events in 2011. A preliminary review of these allegations by a law firm found that 750 were "plausible", Smith said. The three-month inquiry could result in compensation of up to A$50,000 (£30,000) for each victim and the alleged perpetrators being referred to criminal authorities for prosecution. Smith said some of the perpetrators could still be serving in the military. The Australian defence force (ADF) chief David Hurley also apologised to victims and pledged co-operation with the inquiry. "The number, nature, and range of allegations demonstrates that some members of the ADF have failed to understand the responsibility that rank imposes; that rank is a privilege and not a license for domineering, belittling or predatory behaviour," Hurley said in a statement. The government started inquiries last year in response to a young woman's allegation that a fellow cadet had secretly filmed a sexual encounter between the pair and broadcast it to their colleagues at the Australian military officer training academy. The incident and the attention the government focused on it provoked a wave of complaints of sexual misconduct over several decades.
  | | | | | | | | | | | | | | | | | | | | | | | | | Finance ministers will make a third attempt to agree a deal over Greece's debts, at a Eurogroup meeting in Brussels today
| | | | | | | | | | | | | | | | | | | | | | | | | FSA fines Swiss bank for 'serious weaknesses' in systems and controls which allowed Kweku Adoboli to rack up £1.5bn losses UBS has been fined £30m by the UK's Financial Services Authority – and could see its investment banking activities hampered by the Swiss regulator – after its former trader Kweku Adoboli was jailed for fraud. Both regulators criticised the Swiss bank for serious weakness in its systems which allowed Adoboli to rack up eventual losses of over £1.5bn during three years of secretive, off-the-books trades. "The systems and controls failings revealed serious weaknesses in the firm's procedures, management systems and internal controls," the FSA said on Monday. The Swiss financial market supervisory authority (Finma) also reprimanded the bank, saying: "The fraudulent transactions executed by the rogue trader would have been detected sooner if these deficiencies had not existed." As part of a series of measures to limit UBS's risk taking, Finma has imposed capital restrictions and an acquisition ban on the investment bank. It will appoint an independent third party to "ensure that corrective measures are successfully implemented". The regulator – which didn't have the power to fine UBS – hinted at further sanctions, saying it continued to investigate whether UBS should increase the levels of capital it holds. Adoboli, a relatively junior City trader who almost destroyed UBS through increasingly reckless illicit deals, was jailed last week for seven years after being convicted of what police describe as the biggest fraud in UK history. He was acquitted on four separate charges of false accounting. Tracey McDermott, director of enforcement and financial crime at the FSA, said: "UBS's systems and controls were seriously defective. UBS failed to question the increasing revenue of the desk and failed to ensure that there was a corresponding increase in the controls in place over the desk. As a result Adoboli, a relatively junior trader, was allowed to take vast and risky market positions, and UBS failed to manage the risks around that properly. We know from past experience that failures to manage risk properly can cause firms to fail and cause systemic harm."
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