lebanon

Iran to Consider Limiting Ties With UN Nuclear Agency After Sanction Vote

by on June 10, 2010

By Ali Sheikholeslami and Bill Varner June 10 (Bloomberg) — Iran said it will consider downgrading relations with the United Nations nuclear agency after the UN Security Council passed a fourth round of sanctions against the Persian Gulf nation over its atomic development. Parliament on June 13 will discuss revising Iran’s ties with the International Atomic Energy Agency as a result of the sanctions, a senior lawmaker, Esmaeil Kosari, was cited as saying today by the state-run Fars news agency. “We are studying this and will comment when it’s done,” Foreign Ministry spokesman Ramin Mehmanparast said by phone from Tehran. The Security Council , with backing from Russia and China, yesterday approved new sanctions including restrictions on financial transactions, a tighter arms embargo and authority to seize cargo suspected of being used for Iranian nuclear or missile programs. With further U.S. and European Union sanctions likely, Iran may take “provocative” steps over the next few months, Cliff Kupchan , a senior analyst at Eurasia Group, a New York political-risk consulting firm, said in an e-mailed commentary. Iran’s representative at the IAEA downplayed the possibility his country would end its cooperation with the agency, which monitors compliance with the international treaty on nuclear weapons. “The parliamentarians are very upset,” Ambassador Aliasghar Soltanieh told reporters today at the IAEA’s offices in Vienna. “As of now, there is no intention to withdraw from the nuclear Non-Proliferation Treaty or to stop our cooperation in accordance with IAEA safeguards.” ‘Trash Bin’ Iran denounced the sanctions, which President Mahmoud Ahmadinejad said should be “thrown into the trash bin like a used tissue.” The 15-nation council voted 12 to 2, with one abstention, to approve a resolution that also freezes the assets of 40 companies, banks and government agencies, and bars the foreign travel of Javad Rahiqi, head of a branch of the Atomic Energy Organization of Iran. Turkey and Brazil voted against the measure, and Lebanon abstained. China said today the sanctions don’t close off continued diplomacy. A solution to the nuclear standoff should be resolved through dialogue and diplomatic means, spokesman Qin Gang said in comments posted on the Foreign Ministry’s website after the vote. “We will ensure that these sanctions are vigorously enforced,” President Barack Obama said at the White House. “A nuclear arms race in the Middle East is in nobody’s interest.” Energy Production The new penalties, the fourth set of sanctions imposed on Iran by the council since 2006, aim to block Iran’s ability to develop nuclear weapons and pressure the country to join international talks on the issue. Iran maintains that its nuclear development is needed for energy production. Brazil and Turkey, which have temporary seats on the Security Council, both criticized the sanctions. The two countries brokered a proposed agreement with Iran under which half of its low-enriched uranium would be swapped for a more concentrated supply in a form that can only be used in a medical-research reactor in Tehran that will run out of fuel. They say the exchange would build confidence and keep talks with Iran open. The U.S. and its allies say Iran has rebuffed diplomacy. Iran has refused Security Council demands to suspend the production of enriched uranium, which can fuel a reactor or form the core of a bomb. The IAEA has criticized Iran for failing to cooperate with its inspectors. Inspectors’ Access Cutting IAEA access in Iran would be a blow to inspectors, who last month negotiated enhanced access to a uranium enrichment site in Natanz. The agency said May 31 that it won the right to add more cameras, increase atomic-material accounting and conduct surprise inspections at the site, where Iran has produced 5.7 kilograms (12.6 pounds) of 20 percent enriched uranium. While most nuclear weapons contain 90 percent enriched uranium, concentrations as low as 20 percent can start the atomic fission seen in nuclear weapons. Russia and China, which had resisted further UN sanctions to avoid damaging their commercial ties with Iran, agreed to the measures after amendments to the text. Russia is building Iran’s first nuclear power plant and will supply the fuel for it. Iran expressed disappointment with China’s vote for sanctions. “It will slowly lose its respectable position in the Muslim world and will wake up when it’s too late,” said Ali Akbar Salehi , vice president and head of the Atomic Energy Organization of Iran, said according to the Iranian Students News Agency. Lebanon Vote Lebanon said it abstained because its Cabinet couldn’t reach a decision on the resolution. The UN measure bars Iran from investing in uranium mining or the construction of new enrichment facilities. It bans sales to Iran of tanks, armored combat vehicles, artillery, fighter jets, attack helicopters, warships or missiles. Russia will freeze a contract to deliver its S-300 air- defense systems to Iran, Interfax reported today, citing an unidentified Russian defense-industry official. Iran’s financial transactions, including those related to insurance and re-insurance, would be barred if they might have a nuclear purpose. Air, Sea Cargo The sanctions text “calls upon” nations to intercept and inspect any cargo by air or sea suspected of containing banned materials that would contribute to Iran’s nuclear or missile programs. Three annexes to the resolution’s main text cite 15 entities “owned, controlled or acting on behalf” of the Revolutionary Guard Corps, an arm of the Iranian military with extensive business interests. Also cited are three companies the resolution says are related to the Islamic Republic of Iran Shipping Lines, and 22 companies it says are involved in nuclear and ballistic missile activities. “If Iran would meet and engage on their nuclear program, there was receptivity,” Secretary of State Hillary Clinton said in Colombia. “We know that Iran did not and would not. At the end of the day, it was clear Iran was not willing to abide by the expectations of the international community.” The UN action is “long overdue but doesn’t go far enough,” Representative John Boehner of Ohio, the Republican leader in the U.S. House, said in a statement. Boehner said Obama’s 16-month “engagement strategy” on this issue has simply given the Iranians 16 more months to work on acquiring nuclear capability. “At the request of the administration, Congress has repeatedly delayed mandatory bilateral sanctions legislation,” he said. “Any justification for delay is now at an end, and the Congress must act immediately.” To contact the reporters on this story: Ali Sheikholeslami in London at alis2@bloomberg.net ; Bill Varner at the United Nations at wvarner@bloomberg.net .

Read more:
Iran to Consider Limiting Ties With UN Nuclear Agency After Sanction Vote

Manhattan Drug Costs Outpace Every Other Place in U.S. in Medicare Study

by on June 9, 2010

By Drew Armstrong June 9 (Bloomberg) — Medicare, the U.S. health program for the elderly and disabled, spends more per patient on medicine in New York City, in Anchorage, Alaska, and in Great Falls, Montana, than anywhere else, a study found. The program pays 60 percent more on each beneficiary for prescription drugs in the most-expensive area, Manhattan, compared with the least costly area, in Hudson, Florida, researchers said today in the New England Journal of Medicine. Studies from the Dartmouth Atlas of Healthcare , in Lebanon, New Hampshire, had shown regional differences in Medicare payouts for doctor visits and hospital care since 1996. The authors of today’s research said their analysis is the first to plumb spending for Medicare’s drug benefit, which took effect in 2006. Doctors in high-cost regions prescribe “both more drugs and more expensive drugs,” wrote the authors, led by Yuting Zhang, an assistant professor of health policy and management at the University of Pittsburgh . The cost in Hudson, an area in Pasco County, near Tampa, was $1,854 in 2007 for each Medicare beneficiary, while the figure in New York City’s Manhattan borough was $2,973. Other low-spending areas include Dubuque, Iowa; and Detroit. There is little connection between Medicare’s drug spending in parts of the country and its outlays on hospital care or doctors, the study found. Low-spending hospital areas weren’t compensating for lost revenue by treating patients with more prescription drugs, according to the analysis. Lawmakers and members of the Obama administration focused on the variation in hospital spending as part of the health-care overhaul signed in March, looking to save money by making the most-expensive parts of the country more like the least expensive. To contact the reporter on this story: Drew Armstrong in Washington at darmstrong17@bloomberg.net .

Visit link:
Manhattan Drug Costs Outpace Every Other Place in U.S. in Medicare Study

Iran Sanctions Approved by UN Security Council as Turkey, Brazil Vote No

June 9, 2010

By Bill Varner June 9 (Bloomberg) — The United Nations Security Council voted to impose new sanctions on Iran that restrict financial transactions, tighten an arms embargo and authorize the seizure of cargo linked to its nuclear or missile programs. The 15-nation Security Council voted 12 to 2, with one abstention, to adopt a resolution that freezes the assets of 40 companies, banks and government agencies, and bars the foreign travel of Javad Rahiqi, head of a branch of the Atomic Energy Organization of Iran. Turkey and Brazil voted against the measure, and Lebanon abstained from the vote. “We will ensure that these sanctions are vigorously enforced,” President Barack Obama said at the White House. “A nuclear arms race in the Middle East is in nobody’s interest.” The new round of penalties, the fourth set of sanctions imposed on Iran by the Security Council since 2006, is aimed at blocking Iran’s ability to develop nuclear weapons and pressuring the country to join international talks. The Brazilian ambassador to the world body, Maria Viotti , told the Security Council just before the vote that the resolution was a mistake. “Sanctions threats can result in tragic consequences,” Viotti said. Uranium Deal Brazil and Turkey, a North Atlantic Treaty Organization ally of the U.S. that borders Iran, have pursued a deal to swap Iranian enriched uranium for fuel to power a medical-isotopes reactor. The two countries, which have temporary seats on the Security Council, say the exchange would build confidence and keep talks with Iran open. The U.S. and its allies say Iran has rebuffed diplomacy. Iran maintains that its nuclear development work is intended for energy production, not to build weapons. The vote is “incorrect” and will only make the situation more complex, Foreign Ministry spokesman Ramin Mehmanparast said today in a telephone interview in Tehran. “It is neither constructive nor will it have impact. It will only result in making the situation more complex.” Iranian President Mahmoud Ahmadinejad was more blunt. The sanctions are “worthless” and should only go into “the trash bin,” the state-run Iranian Students News Agency cited him as saying during a visit to Tajikistan. The Turkish foreign ministry said the sanctions don’t contribute to regional peace and security, in an e-mailed statement. ‘Pyrrhic Victory’ Lawrence Haas , senior fellow at the American Foreign Policy Council in Washington, called the resolution negotiated with China and Russia a “Pyrrhic victory” for the Obama administration that will do little to achieve its aim of preventing Iran from developing nuclear weapons and ballistic missiles. “There are elements that are good, but also loopholes built in so I don’t know if I can point to any one thing with real bite,” Haas said in an interview. “There is no question they are tightening pressure but, unfortunately, not enough.” Lebanon, which represents Arab nations on the Security Council, said its Cabinet couldn’t reach a decision on the resolution. “There was no majority, no consensus, therefore it was an abstention,” said Mohamad Chatah , a political adviser to Prime Minister Saad Hariri , in a telephone interview. The UN resolution bars Iran from investing in uranium mining or construction of new enrichment facilities. It bans sales to Iran of tanks, armored combat vehicles, artillery, fighter jets, attack helicopters, warships or missiles. Banks, Insurance Nations are asked to prohibit the licensing of Iranian banks on their territory or the opening of bank branches in Iran if there is reason to suspect a connection to nuclear activities. Financial transactions, including those related to insurance and re-insurance, would be barred if they might have a nuclear purpose. “These sanctions aim squarely at the nuclear ambitions of a government that has chosen a path that will lead to increasing isolation,” U.S. Ambassador Susan Rice said after the vote. “These sanctions are as tough as they are smart and precise.” The text “calls upon” nations to intercept and inspect any cargo by air or sea suspected of containing banned materials that would contribute to Iran’s nuclear or missile programs. Three annexes to the main text of the resolution cite 15 entities “owned, controlled or acting on behalf” of the Revolutionary Guard Corps, an arm of the Iranian military with extensive business interests. One is the Khatam al-Anbiya Construction Headquarters, described as being involved in “large scale civil and military construction projects,” including the nuclear facility at Qom whose existence was made public in September. Manufacturer, Ministry Also cited are three companies the resolution says are related to the Islamic Republic of Iran Shipping Lines and 22 companies it says are involved in nuclear and ballistic missile activities. The companies include the Armament Industries Group, identified as a small-arms manufacturer, and the Ministry of Defense Logistics Export, which the measure says sells Iranian- made weapons “to customers around the world.” The resolution also targets the Malaysia-based First East Export Bank, which is “owned or controlled” by Bank Mellat, named in previous sanctions. Mellat has “facilitated” hundreds of millions of dollars in transactions linked to Iranian nuclear defense and missile entities, according to the resolution. The U.S. Treasury Department has barred U.S. transactions with the Malaysia bank. The Export Development Bank of Iran, which was included on the draft sanctioned companies list as late as June 7, was dropped from the final version of the UN resolution. Travel Ban The measure approved today bars the foreign travel of 40 Revolutionary Guard officials and persons involved with Iran’s nuclear or missile programs, individuals who were listed in the three previous sanctions resolutions. Those texts only sought “vigilance” of their entry into other nations. The text “encourages” the Vienna-based International Atomic Energy Agency to continue talks with Iran aimed at “measures to build confidence” in its intentions. It takes note of the effort by Brazil and Turkey to reach an agreement with Iran under which half of its enriched uranium would be swapped for fuel in a form that can only be used in Tehran’s medical-research reactor. To contact the reporter on this story: William Varner in New York at wvarner@bloomberg.net

Read the full article →

Iran Sanctions Approved in UN Council Vote Turkey, Brazil Opposed Measure

June 9, 2010

By Bill Varner June 9 (Bloomberg) — The United Nations Security Council voted to impose new sanctions on Iran that restrict financial transactions, tighten an arms embargo and authorize the seizure of cargo linked to its nuclear or missile programs. The 15-nation Security Council voted 12 to 2, with one abstention, to adopt a resolution that freezes the assets of 40 companies, banks and government agencies, and bars the foreign travel of Javad Rahiqi, head of a branch of the Atomic Energy Organization of Iran. Turkey and Brazil voted against the measure, and Lebanon abstained from the vote. The new round of sanctions is aimed at blocking Iran’s ability to develop nuclear weapons and pressuring the country to join international talks. Iran says its nuclear development work is intended for energy production. To contact the reporter on this story: William Varner in New York at wvarner@bloomberg.net

Read the full article →

Stocks Drop in Europe, Asia on BP Probe, Hatoyama U.S. Index Futures Rise

June 2, 2010

By Adria Cimino June 2 (Bloomberg) — European stocks fell as the U.S. opened criminal and civil investigations into the BP Plc oil spill in the Gulf of Mexico. Asian shares dropped after Japan’s prime minister resigned, while U.S. futures advanced. BP , Europe’s second-biggest oil company, dropped 1.7 percent to the lowest level in 15 months. Neste Oil Oyj, Aegis Group Plc and Porsche SE fell more than 1.4 percent after analysts advised selling the shares. Portugal Telecom SGPS SA jumped 6.9 percent after Telefonica SA raised its bid for the Portuguese company’s stake in their Brazilian joint venture. The Stoxx Europe 600 Index fell 0.6 percent to 243.91 at 8:13 a.m. in London. The gauge has slumped 10 percent from this year’s high on April 15 amid concern that European nations will have difficulty taming their budget deficits without harming the economic recovery. U.S. stocks fell yesterday as BP’s failure to plug a leaking oil well dragged down energy producers and Agence France-Presse reported Lebanon fired on Israeli warplanes. Futures on the Standard & Poor’s 500 Index rose 0.4 percent today before a report on pending U.S. home sales. The MSCI Asia Pacific Index sank 1 percent as Prime Minister Yukio Hatoyama resigned less than nine months after a landslide election victory amid funding scandals and a broken promise to relocate U.S. troops. BP Investigation BP slipped 1.7 percent to 422.55 pence, the lowest level since March 2009, after the U.S. Justice Department unveiled its investigation. Attorney General Eric Holder announced the probe at a news conference in New Orleans after President Barack Obama called the spill “the greatest environmental disaster of its kind in our history.” BP will cooperate with the Justice Department, said Jon Pack , a company spokesman. BP shares plunged 13 percent yesterday, the biggest drop since 1992. BHP Billiton Ltd. sank 2.9 percent to 1,820 pence. Australia’s largest oil and gas producer said it’s studying the impact of Obama’s moratorium forcing deep-water drilling rigs in the Gulf of Mexico to halt operations. CGGVeritas, the world’s largest seismic surveyor of oilfields, tumbled 4.3 percent to 16.68 euros, a fourth day of losses. Neste Oil slid 2.5 percent to 12.26 euros. Finland’s only refiner was cut to “sell” from “neutral” at Goldman Sachs Group Inc. Aegis, Porsche Downgrades Aegis dropped 1.4 percent to 112.7 pence. The world’s largest independent buyer of advertising space was downgraded to “sell” from “hold” at Deutsche Bank AG. Porsche fell 1.8 percent to 34.59 euros after the maker of the 911 sports car was cut to “reduce” from “buy” at Nomura Holdings Inc. Portugal Telecom surged 6.9 percent to 9.05 euros after Telefonica raised its bid for the Portuguese company’s stake in Vivo Participacoes SA, a venture that controls Brazil’s largest wireless operator, by 14 percent to 6.5 billion euros. Portugal Telecom called a shareholders’ meeting to decide on the revised offer and appointed three top executives to negotiate with Telefonica, the Lisbon-based company said late yesterday. The board said the new offer “does not reflect the strategic value of the asset for Telefonica.” The directors unanimously rejected Telefonica’s initial 5.7 billion-euro offer on May 10. Prudential Plc, the U.K.’s biggest insurer, slipped 1.8 percent to 565 pence after its $35.5 billion takeover of American International Group Inc.’s main Asian unit collapsed. The aborted deal to buy AIA Group Ltd. will cost Prudential about 450 million pounds ($660 million), including a 153 million-pound break fee, the London-based insurer said. Prudential will also scrap a $21 billion rights offer, a record to fund a takeover. The number of contracts to buy previously owned U.S. homes probably rose in April for a third consecutive month as buyers rushed to lock in a government tax credit, economists said before a private report today. To contact the reporter on this story: Adria Cimino in Paris at acimino1@bloomberg.net .

Read the full article →

Most Asian Stocks Rise as Japan’s Prime Minister Steps Down Mitsui Slumps

June 1, 2010

By Masaki Kondo June 2 (Bloomberg) — Most Asian stocks rose, led by gains in Japan after the country’s prime minister resigned. Commodity companies fell amid concern the BP Plc oil disaster will prompt stricter regulations on oil companies. Toyota Motor Corp., the world’s largest carmaker, advanced 0.9 percent in Tokyo as Yukio Hatoyama ’s resignation prompted a drop in the yen that boosted the earnings outlook for exporters. Mitsui & Co. , which owns a stake in oil and gas fields in the Gulf of Mexico, sank 6.6 percent. Four stocks advanced for every three that fell on the MSCI Asia Pacific Index , which dropped 0.1 percent to 112.11 as of 11:07 a.m. in Tokyo. The gauge slumped 9.8 percent last month, the most since October 2008 on mounting concern budget deficits in Europe and Chinese measures to control property prices will hurt the global economy. The measure had slumped as much as 0.7 percent before Hatoyama announced he was stepping down. “Overseas investors viewed Hatoyama’s administration as a problem because of a lack of political leadership and problems linking politics and money,” said Yumi Nishimura , an equity- market analyst at Daiwa Securities SMBC Co. The Nikkei 225 Stock Average gained 0.4 percent. It had earlier fallen 1.1 percent and started rallying after NHK Television first reported Hatoyama had told leaders of the ruling Democratic Party of Japan he will resign. Hong Kong’s Hang Seng Index gained 0.6 percent. South Korea is closed for a holiday. Futures on the Standard & Poor’s 500 Index rose 0.5 percent today. The index fell 1.7 percent in New York yesterday after Agence France-Presse said Lebanon’s military fired at Israeli planes. Energy companies slumped as Attorney General Eric Holder said the U.S. Justice Department is investigating whether any criminal or civil laws were violated in the BP oil spill in the Gulf of Mexico. “Regulations on drilling for crude oil may tighten after the oil leak in the Gulf of Mexico,” said Hiroichi Nishi , an equities manager in Tokyo at Nikko Cordial Securities Inc. “That may spur concerns that the earnings environment for resources-related companies, including major trading firms, will worsen.” The slump in the MSCI Asia Pacific Index last month has dragged down the average price of stocks in the MSCI gauge to 14.2 times estimated earnings , near the lowest level since January 2009. To contact the reporters for this story: Masaki Kondo in Tokyo at mkondo3@bloomberg.net .

Read the full article →

Stocks, Oil Drop, Treasuries Rise as Middle-East Tension Grows

June 1, 2010

By Rita Nazareth and Nikolaj Gammeltoft June 1 (Bloomberg) — Stocks and oil dropped, while the dollar and Treasuries rose, as a report that Lebanon fired on Israeli warplanes spurred concern tensions in the Middle East are escalating. Energy companies led declines in equities after BP Plc failed to halt the biggest oil spill in U.S. history. The Standard & Poor’s 500 Index slid 1.7 percent to 1,070.71 at 4 p.m. in New York and the Dow Jones Industrial Average slumped 112.61 points to 10,024.02 after last week completing a 7.9 percent monthly tumble, its worst May since 1940. Oil fell 1.9 percent to settle at $72.58 a barrel and extended losses in after-hours electronic trading. The Dollar Index climbed 0.2 percent to 86.737. The 10-year Treasury yield slipped 4 basis points to 3.26 percent. Stocks and commodities fell to their lows of the day as AFP reported Lebanon’s military fired at Israeli warplanes as they flew over its space, citing a senior Israeli security official, and Attorney General Eric Holder said the Justice Department is probing whether criminal laws were broken in BP’s Gulf of Mexico oil spill. Equities advanced earlier on growth in U.S. construction spending and manufacturing. “We’re in anxiety mode,” said Bruce McCain , chief investment strategist at Cleveland-based Key Private Bank, which manages $25 billion. “There are already too many international and geopolitical things to worry about. What happens in the Middle East definitely gets investors worried especially because of all the concern about energy.” The AFP report of Israeli warplanes taking fire from Lebanon came a day after nine people were killed in an Israeli commando raid on boats carrying pro-Palestinian activists to the Gaza Strip. Israeli forces killed two Palestinians who tried to infiltrate from the enclave today and another three who tried to fire a rocket, according to an army statement. Economic Data Manufacturing in the U.S. expanded in May for a 10th month as factories boosted payrolls to keep up with rising global sales, data from the Institute for Supply Management showed. The Commerce Department said U.S. construction spending rose 2.7 percent in April, the most since 2000. The data helped stocks and commodities recover from an early tumble triggered when China’s Purchasing Managers’ Index trailed economists’ estimates, raising concern that the economic engine of global growth is slowing. Benchmark indexes then fluctuated for most of the day before turning lower in the final hour of trading after the AFP report. ‘Normal Correction’ The five-week drop in U.S. stocks is consistent with a temporary pullback within a bull market, said Thomas J. Lee , the chief U.S. equity strategist at JPMorgan Chase & Co. The S&P 500 has fallen 12 percent from a 19-month high on April 23 on concern that widening budget deficits in Europe could derail global growth. “It is a pretty normal correction in a bull market,” Lee said today in a Bloomberg Television interview. “It pays up to be a slow buyer here. If you start to get enough positive headlines to offset the negatives, that would be a way to build confidence. Investors are seeing good opportunities to buy, and that could be as a sign of potential capitulation as well.” Energy companies in the S&P 500 slumped 4.3 percent as a group and contributed more than a quarter of the index’s decline, according to Bloomberg data. Transocean Ltd. , owner of the Deepwater Horizon rig that exploded April 20, declined 12 percent to $50.04. Halliburton Co., which provided oilfield services on the well, dropped 15 percent to $21.15. Anadarko Petroleum Corp. , which owns a 25 percent stake in the well, lost 20 percent to $42.10 for the biggest drop in the S&P 500. BP Probe Attorney General Holder announced the investigation today at a news conference in New Orleans, the same day President Barack Obama called the spill “the greatest environmental disaster of its kind in our history.” The president said, “My solemn pledge is that we will bring those responsible to justice.” U.S. shares of BP, Europe’s second-biggest oil company, slumped 15 percent for the biggest drop since at least 1980. The yield investors demand to hold BP’s bonds rather than government debt widened to 1.48 percentage points, or 148 basis points. That’s almost double the 77 basis-point average for similarly rated industrial companies and higher than the 124 premium on notes graded five levels lower. BP is rated Aa1 by Moody’s Investors Service. The cost of protecting against a default on BP’s bonds rose to a record, with credit-default swaps increasing 36 basis points to 136. European Stocks Most European shares fell, even as the Stoxx Europe 600 Index erased a 2.1 percent slide to close 0.2 percent higher. Four stocks fell for every three that advanced in the European benchmark. “A continuing re-pricing of risk appears to be the order of the day for now, with markets across asset classes moving from oversold to rally mode and back again,” John Stoltzfus , senior market strategist at Ticonderoga Securities LLC in New York, said in a note to clients. The cost of insuring against default by European lenders jumped after the European Central Bank said they may be crowded out of credit markets by governments seeking to finance fiscal deficits. The Markit iTraxx Financial Index of credit-default swaps on 25 European banks and insurers rose 13.5 basis points to 173.5, according to JPMorgan Chase & Co. Investor appetite for European bank bonds may also be curbed by the ECB’s forecast that lenders will have to write off 195 billion euros ($237 billion) of bad debts by 2011. Earnings will remain “modest” given continued loan losses, pressure on the industry to reduce leverage and forecasts of higher funding costs, the ECB said. Canadian Interest Rates The slump in energy shares led Canada’s S&P/TSX Composite Index down 1.6 percent. The Bank of Canada raised its key interest rate from a record low today, the first Group of Seven central bank to do so since last year’s global recession, and said further moves will be “weighed carefully” against future growth in Canada and elsewhere. The Bank of Canada raised the rate to 0.5 percent from 0.25 percent, as predicted by 25 of 27 economists surveyed by Bloomberg News. The MSCI Asia Pacific Index sank 1.1 percent. Sony Corp., which gets 69 percent of its sales outside Japan, fell 1 percent in Tokyo as a stronger yen threatened to hurt the value of overseas revenue. Hitachi Ltd., Japan’s No. 3 company by revenue, slumped 3.5 percent after the Financial Times cited the company’s president as saying it’s affected by Europe’s debt crisis. Emerging Markets The MSCI Emerging Markets Index declined for the first time in five days, falling 2.4 percent. The MSCI China Index of Hong Kong-traded shares retreated 2.2 percent, while Zijin Mining Group Co. lost 2.8 percent in Hong Kong on speculation demand from the world’s largest metals consumer will decline. China is the world’s biggest consumer of industrial metals including copper and zinc, and the second-biggest consumer of crude oil after the U.S. Emerging economies such as China are driving the global economy, which the Organization for Economic Cooperation and Development estimates will expand 4.6 percent this year. Excluding those economies, the forecast is 2.7 percent. Copper futures for July delivery dropped 4.15 cents, or 1.3 percent, to $3.063 a pound on the Comex in New York. Earlier, the metal touched $3.0185, the lowest level for a most-active contract since May 25. Lead lost 5.4 percent and nickel and zinc retreated at least 4 percent to lead industrial metals lower in London. To contact the reporters on this story: Rita Nazareth in New York at rnazareth@bloomberg.net ; Nikolaj Gammeltoft in New York at ngammeltoft@bloomberg.net .

Read the full article →

Stocks, Oil Drop, Treasuries Rise on Concern Middle East Tensions Growing

June 1, 2010

By Rita Nazareth and Nikolaj Gammeltoft June 1 (Bloomberg) — Stocks and oil dropped, while the dollar and Treasuries rose, as a report that Lebanon fired on Israeli warplanes spurred concern tensions in the Middle East are escalating. Energy companies led declines in equities after BP Plc failed to halt the biggest oil spill in U.S. history. The Standard & Poor’s 500 Index slid 1.7 percent to 1,070.71 at 4 p.m. in New York and the Dow Jones Industrial Average slumped 112.61 points to 10,024.02 after last week completing a 7.9 percent monthly tumble, its worst May since 1940. Oil fell 1.9 percent to settle at $72.58 a barrel and extended losses in after-hours electronic trading. The Dollar Index climbed 0.2 percent to 86.737. The 10-year Treasury yield slipped 4 basis points to 3.26 percent. Stocks and commodities fell to their lows of the day as AFP reported Lebanon’s military fired at Israeli warplanes as they flew over its space, citing a senior Israeli security official, and Attorney General Eric Holder said the Justice Department is probing whether criminal laws were broken in BP’s Gulf of Mexico oil spill. Equities advanced earlier on growth in U.S. construction spending and manufacturing. “We’re in anxiety mode,” said Bruce McCain , chief investment strategist at Cleveland-based Key Private Bank, which manages $25 billion. “There are already too many international and geopolitical things to worry about. What happens in the Middle East definitely gets investors worried especially because of all the concern about energy.” The AFP report of Israeli warplanes taking fire from Lebanon came a day after nine people were killed in an Israeli commando raid on boats carrying pro-Palestinian activists to the Gaza Strip. Israeli forces killed two Palestinians who tried to infiltrate from the enclave today and another three who tried to fire a rocket, according to an army statement. Economic Data Manufacturing in the U.S. expanded in May for a 10th month as factories boosted payrolls to keep up with rising global sales, data from the Institute for Supply Management showed. The Commerce Department said U.S. construction spending rose 2.7 percent in April, the most since 2000. The data helped stocks and commodities recover from an early tumble triggered when China’s Purchasing Managers’ Index trailed economists’ estimates, raising concern that the economic engine of global growth is slowing. Benchmark indexes then fluctuated for most of the day before turning lower in the final hour of trading after the AFP report. ‘Normal Correction’ The five-week drop in U.S. stocks is consistent with a temporary pullback within a bull market, said Thomas J. Lee , the chief U.S. equity strategist at JPMorgan Chase & Co. The S&P 500 has fallen 12 percent from a 19-month high on April 23 on concern that widening budget deficits in Europe could derail global growth. “It is a pretty normal correction in a bull market,” Lee said today in a Bloomberg Television interview. “It pays up to be a slow buyer here. If you start to get enough positive headlines to offset the negatives, that would be a way to build confidence. Investors are seeing good opportunities to buy, and that could be as a sign of potential capitulation as well.” Energy companies in the S&P 500 slumped 4.3 percent as a group and contributed more than a quarter of the index’s decline, according to Bloomberg data. Transocean Ltd. , owner of the Deepwater Horizon rig that exploded April 20, declined 12 percent to $50.04. Halliburton Co., which provided oilfield services on the well, dropped 15 percent to $21.15. Anadarko Petroleum Corp. , which owns a 25 percent stake in the well, lost 20 percent to $42.10 for the biggest drop in the S&P 500. BP Probe Attorney General Holder announced the investigation today at a news conference in New Orleans, the same day President Barack Obama called the spill “the greatest environmental disaster of its kind in our history.” The president said, “My solemn pledge is that we will bring those responsible to justice.” U.S. shares of BP, Europe’s second-biggest oil company, slumped 15 percent for the biggest drop since at least 1980. The yield investors demand to hold BP’s bonds rather than government debt widened to 1.48 percentage points, or 148 basis points. That’s almost double the 77 basis-point average for similarly rated industrial companies and higher than the 124 premium on notes graded five levels lower. BP is rated Aa1 by Moody’s Investors Service. The cost of protecting against a default on BP’s bonds rose to a record, with credit-default swaps increasing 36 basis points to 136. European Stocks Most European shares fell, even as the Stoxx Europe 600 Index erased a 2.1 percent slide to close 0.2 percent higher. Four stocks fell for every three that advanced in the European benchmark. “A continuing re-pricing of risk appears to be the order of the day for now, with markets across asset classes moving from oversold to rally mode and back again,” John Stoltzfus , senior market strategist at Ticonderoga Securities LLC in New York, said in a note to clients. The cost of insuring against default by European lenders jumped after the European Central Bank said they may be crowded out of credit markets by governments seeking to finance fiscal deficits. The Markit iTraxx Financial Index of credit-default swaps on 25 European banks and insurers rose 13.5 basis points to 173.5, according to JPMorgan Chase & Co. Investor appetite for European bank bonds may also be curbed by the ECB’s forecast that lenders will have to write off 195 billion euros ($237 billion) of bad debts by 2011. Earnings will remain “modest” given continued loan losses, pressure on the industry to reduce leverage and forecasts of higher funding costs, the ECB said. Canadian Interest Rates The slump in energy shares led Canada’s S&P/TSX Composite Index down 1.6 percent. The Bank of Canada raised its key interest rate from a record low today, the first Group of Seven central bank to do so since last year’s global recession, and said further moves will be “weighed carefully” against future growth in Canada and elsewhere. The Bank of Canada raised the rate to 0.5 percent from 0.25 percent, as predicted by 25 of 27 economists surveyed by Bloomberg News. The MSCI Asia Pacific Index sank 1.1 percent. Sony Corp., which gets 69 percent of its sales outside Japan, fell 1 percent in Tokyo as a stronger yen threatened to hurt the value of overseas revenue. Hitachi Ltd., Japan’s No. 3 company by revenue, slumped 3.5 percent after the Financial Times cited the company’s president as saying it’s affected by Europe’s debt crisis. Emerging Markets The MSCI Emerging Markets Index declined for the first time in five days, falling 2.4 percent. The MSCI China Index of Hong Kong-traded shares retreated 2.2 percent, while Zijin Mining Group Co. lost 2.8 percent in Hong Kong on speculation demand from the world’s largest metals consumer will decline. China is the world’s biggest consumer of industrial metals including copper and zinc, and the second-biggest consumer of crude oil after the U.S. Emerging economies such as China are driving the global economy, which the Organization for Economic Cooperation and Development estimates will expand 4.6 percent this year. Excluding those economies, the forecast is 2.7 percent. Copper futures for July delivery dropped 4.15 cents, or 1.3 percent, to $3.063 a pound on the Comex in New York. Earlier, the metal touched $3.0185, the lowest level for a most-active contract since May 25. Lead lost 5.4 percent and nickel and zinc retreated at least 4 percent to lead industrial metals lower in London. To contact the reporters on this story: Rita Nazareth in New York at rnazareth@bloomberg.net ; Nikolaj Gammeltoft in New York at ngammeltoft@bloomberg.net .

Read the full article →

David Nassar: Beirut Times

May 28, 2010

On May 2, the New York Times ran a story called “36 hours in Beirut” as part of its regular series about short visits to exciting global destinations. This followed on the Times designation of Beirut just last year as the world’s number one destination. Later that week, I had an opportunity to drop in to Beirut following a conference I spoke at in Jordan. I fell in love with Beirut in the late 90s and early 00′s, but I had not been back since 2001 so I decided to reacquaint myself with the city. What I saw over four days was certainly worthy of the Times picks but it was even more than that. I saw an economic boom that I had not expected. If anyone had told me that Beirut would become a retreat for money amidst a global recession, I would have laughed. Yet, that is what is happening and I do not think that outside of the Middle East, most people are paying much attention. When I talked with members of the Parliament, government officials, academics and corporate officials about the boom, I heard a fairly uniform series of explanations. First, during the 1975-1990 civil war, Lebanon never once defaulted on its debt. In part this reflects a developed capacity for managing risk but it is also good business sense, something Lebanese are known for having in spades. Second, to this day, the Lebanese banking system remains very conservative which includes certain secrecy provisions that make it attractive to those with honest and I am sure not so honest intentions. Third, because of the civil war and the pursuant reconstruction of the late 90s, Lebanon was fairly isolated from the global economic wave that washed over almost every other country. As a result, it did not get hit hard in the collapse that came after. The most obvious outcome of this situation is construction. After 24 hours in Beirut, I found myself taking pictures of the signs developers put up to advertise the building that will be there shortly. There were slogans like – Come live in Paradise” and “Refined Living”, or my favorite “Very Few Dreams Left: Baabda Palace Residence.” I found the irony if one thinks back just even a couple years to be striking. What is an even more striking outcome is the life of the city. At night, the Gemmayze District can swing with any nightlife district in the world. Dozens of bars have been created in the basements of very old buildings, all of them serving great food and drink – this is Lebanon after all – and many of them offer fantastic music. The result is people on the streets. Regardless of their sect, the young people are enjoying life, further fueling the boom. To be sure, there is a class division here. Not everyone can afford to party. And it was a class division that cut fairly clearly along sectarian lines that helped spark the Civil War. However, the lines are not so strictly drawn this time. Every sect, at some level, is enjoying the new Beirut. Some elected officials are trying to capitalize on this positive outlook of the future to pass laws that will help further reduce the old divisions of the past, and democracy continues to reassert itself lending a bit more stability to the country. While I was there the local elections were being conducted and people were turning out and voting in an orderly fashion. There were some complaints in Beirut about a lack of choice but this seemed to be more the result of politics than uninhibited manipulation. Lastly, one of the most encouraging signs I saw was that venture capital funds are emerging to support the development of new businesses in the country. All of this is remarkable when you consider Lebanon’s recent history. Of course, those unfortunate realities of Lebanon’s existence have not disappeared. All of this happens in the shadow of weak regional stability. And the obvious question is typically answered that people are nervous but they are not willing to stop living or to stop trying. Perhaps that is the most fascinating thing. In the face of so many reasons to quit, Lebanon is rebuilding itself and the people are finding ways to work with each other to make a stronger country, even a place where people have enough confidence to put their money.

Read the full article →

Arqaam Capital of Dubai May Hire 100 Middle East Equity Research Analysts

May 16, 2010

By Arif Sharif May 16 (Bloomberg) — Arqaam Capital Ltd., a Dubai-based investment bank, will start an equity research unit that may hire as many as 100 analysts in three years to meet demand for Middle East research, its chief executive officer said. Arqaam, whose businesses include equities brokerage, equity derivatives and corporate finance, will open the research unit in Beirut, Lebanon, covering some 300 companies in the region with a market value of more than $500 million, Riad Meliti , said in a phone interview. “One of the key issues in the market is data aggregation, and we are going to focus a great deal on aggregating data from across the region,” Meliti said. Arqaam, which is three years old and operates from the Dubai International Financial Center, has seen volumes at its brokerage business grow by 40 percent quarter-on-quarter in the past 12 months, Meliti said. The increase was spurred by Arqaam’s focus on institutional clients, he said. Gulf Arab stock markets have risen in the past 12 months as the prospects of global economic growth improved, oil prices climbed and governments in the region boosted investments. The Bloomberg index of the region’s biggest 200 stocks has advanced 11 percent in the past 12 months, Saudi Arabia’s Tadawul All Share Index added 10 percent, while Dubai’s Financial Market General Index climbed 3 percent. A number of Middle East share indexes “will sooner or later be included in the emerging market indexes,” which will boost the inflow of global equity funds to Middle East markets, Meliti said. “As a firm we are positioning ourselves for the continued growth of the institutional participation” in equity markets, he said. To contact the reporters on this story: Arif Sharif in Dubai at asharif2@bloomberg.net

Read the full article →

Moody’s: Lebanese banking outlook stable

March 18, 2010

18 Mar 2010 A report by a Middle East finance group suggests the credit outlook for the banking sector in Lebanon is stable. Moody’s Investors Service has published its Banking System Outlook on Le…

Read the full article →

Fed Officials May Set Sights on Avoiding Low U.S. Inflation in Exit Debate

March 16, 2010

By Craig Torres March 16 (Bloomberg) — Douglass Henry, chief executive officer of Henry Molded Products in Lebanon, Pennsylvania, used to worry about inflation because a jump in energy prices could drive up production costs. Now, with prices “pretty darn flat,” he’s also concerned about the risk the inflation rate will fall too low. Profit margins at his company, which employs 102 people to make packaging materials for products used in printers made by Hewlett-Packard Co. and Dell Inc., might be undermined as competitors cut prices. “They still have excess capacity,” Henry, a former chairman of the Federal Reserve Bank of Philadelphia’s business council, says of his rivals. “When a piece of business comes up, they have a tendency to make a reach for new volume and they will depress prices.” Prices may move to the center of the debate over the timing of an exit from the most stimulative U.S. monetary policy in history. Low inflation will keep the benchmark interest rate unchanged until the middle of 2011, predicts former Fed governor Laurence Meyer . Policy makers meet today, and the Federal Open Market Committee will release its statement around 2:15 p.m. New York time. The Fed’s preferred price gauge will slow to a gain of 1.2 percent this year, the lowest since 1962, according to a Bloomberg News survey of economists this month. Economists also forecast the Fed will raise rates by a half point to 0.75 percent in the fourth quarter, and unemployment will end the year at 9.5 percent, the survey shows. Doesn’t Hold Up Meyer, vice chairman of St. Louis-based Macroeconomic Advisers LLC, says the outlook for a rate increase doesn’t hold up to scrutiny. “If you think the unemployment rate is going to be above 9 percent and inflation around 1 percent at the end of this year, I don’t think you should have any expectation” of a rate increase by the end of 2010, he says. Meyer’s firm predicts the Fed’s preferred price gauge, the personal consumption expenditures price index, minus food and energy, will rise 0.9 percent this year and next, with economic growth of 3.5 percent and 3.8 percent. If the Fed stays on hold while some reports show the recovery gaining traction, yields on long-term Treasury securities will rise faster than those for short-term notes, says Anshul Pradhan, an analyst at Barclays Capital in New York. The yield difference between two-year and 10-year U.S. government securities was 2.76 percentage points yesterday, compared with 1.95 percentage points a year ago. Inflation Expectations Chairman Ben S. Bernanke has repeatedly discussed the need to reverse a record expansion of the Fed’s balance sheet to avoid inflation once the economy picks up. The timing depends on officials’ estimates of how long low inflation will persist and whether inflation expectations break lower or higher. Total excess reserves in the banking system stand at $1.2 trillion. “There is a cadre of members at the Federal Reserve that are absolutely convinced that core inflation will be quiet,” says Allen Sinai , president of Decision Economics Inc. in New York. “At the moment, that looks more right than wrong.” Sinai includes in that group regional Fed presidents Janet Yellen in San Francisco, William Dudley in New York, Charles Evans in Chicago, and Eric Rosengren in Boston as well as Bernanke and Vice Chairman Donald Kohn . Yellen is President Barack Obama’s choice to replace Kohn, who retires in June, three people with knowledge of the selection process said last week. ‘Unwelcome’ Decline U.S. central bankers warned of an “unwelcome substantial fall in inflation” in 2003, and kept their policy rate at 1 percent for the year. Deflation can be harmful to businesses whose fixed costs on debt and salaries decline more slowly than the prices they charge for the goods and services they sell, squeezing profits. “For all of the imperative to step away from unconventional policy and the constant discussions on exit strategy, what do we do if these persistent declines on core inflation continue?” says Mark Spindel , chief investment officer at Potomac River Capital LLC, a Washington-based hedge fund that specializes in inflation-related strategies. High unemployment and idle capacity haven’t lowered inflation expectations. Consumer predictions for inflation in a year’s time have ranged from 2.5 percent to 2.9 percent over the past six months, according to a Reuters/University of Michigan survey. “The Fed wants to have inflation expectations maintained because it is one of the lines of defense against deflation,” says Ethan Harris , head of North America economics at Bank of America-Merrill Lynch Global Research in New York. Not all FOMC members are willing to keep the benchmark lending rate near zero for several more months. ‘No Longer Warranted’ Kansas City Fed chief Thomas Hoenig in January dissented against the pledge to keep rates low for an “extended period,” saying it was “no longer warranted.” Philadelphia Fed President Charles Plosser last month said the phrase has “gotten us in a box.” Morgan Stanley economists Richard Berner and David Greenlaw predict an inflation rebound and forecast the federal funds rate, the target for overnight lending among banks, will rise to 1.5 percent by the end of the year. “A strong global recovery will lift commodity prices and inflation expectations,” says Berner, co-head of global economics. “That lift, coupled with narrowing slack in the economy and labor markets, will begin to reverse the inflation downtrend by the summer.” Inflation Forecasts While Fed officials discuss the risk of inflation in speeches, the concern isn’t reflected in their forecasts. They predict core and headline inflation in a range of 1 percent to 2 percent for the next three years, according to so-called central tendency forecasts made in January. “With the unemployment rate at 9.7 percent and inflation significantly under my benchmark for price stability, there is no conflict between our policy goals,” of low and stable inflation and full employment, Chicago Fed president Charles Evans said in Arlington, Virginia, March 9. At Henry Molded Products, lower prices on motors and pipe have allowed Henry to boost efficiency at his molded paper mill, and high unemployment means he doesn’t have to bid up wages to find labor. Still, few businesses want to see prices collapse. “Inflation is very, very low,” Home Depot Inc. chief financial officer Carol Tome said on a Feb. 23 conference call with analysts. “We aren’t seeing any pricing pressure.” To contact the reporter on this story: Craig Torres in Washington at ctorres3@bloomberg.net

Read the full article →

How long can Lebanon’s real estate boom last?

March 1, 2010

Despite Lebanon’s troubled history, property prices are now rising strongly, fuelled by firm demand and a very strong economy.

Read the full article →

Alexander Haig, Former Secretary of State, Four-Star General, Dies at 85

February 20, 2010

By Laurence Arnold Feb. 20 (Bloomberg) — Alexander Haig , the decorated four- star general and assertive aide to U.S. presidents who declared himself “in control” at the White House after Ronald Reagan was shot, has died, the Associated Press reported. He was 85. He died today at Johns Hopkins Hospital in Baltimore from complications associated with an infection, AP said, citing the Haig family. Haig straddled the worlds of politics and the military during almost two decades in posts that included supreme commander of the North Atlantic Treaty Organization . His 18- month tenure as Reagan’s first secretary of state, the pinnacle of his political career, was marred by turf battles and by the famous comment he could never live down. He uttered it on March 30, 1981, hours after John Hinckley Jr . shot and wounded Reagan outside a Washington hotel. As surgeons worked to save Reagan’s life at a nearby hospital, and with Vice President George H.W. Bush in flight to Washington from Texas, Haig huddled with other top officials at the White House, then went before reporters. “Constitutionally, gentlemen,” he told the press, “you have the president, the vice president and the secretary of state, in that order, and should the president decide he wants to transfer the helm, he will do so.” He went on, “as of now, I am in control here in the White House, pending the return of the vice president and in close touch with him.” Fourth in Line In fact, under the rules of presidential succession, Haig wasn’t in control. The secretary of state is fourth in line to the presidency, behind the vice president, speaker of the House and president pro tempore of the Senate. His off-the-cuff comment gave Haig a lasting image as a power-grabber. “It was reminiscent of Dr. Strangelove,” Richard Darman , Reagan’s deputy chief of staff, wrote in his memoir. “Haig intended to calm the nation. He unnerved the world.” Haig had “lost control” and “written his own political epitaph,” Larry Speakes, Reagan’s spokesman, recalled in his memoir. “From then on, other members of the Reagan team would be viewing him with suspicion, and within 15 months their hazing would drive him out of the White House.” For his part, Haig long defended his comment as merely “a statement of fact that I was the senior Cabinet officer present.” The ‘Vicar’ During his stormy term as secretary of state, Haig called himself the “vicar of American foreign policy” and reportedly chafed when others — even Reagan — took steps without his approval. In one instance, White House Chief of Staff James A. Baker III rebuked Haig for remarks on Central America that diverted attention from the administration’s planned message about the economy. “Indiscreet and volatile, knowledgeable and arrogant, Haig was ever ready to take offense at slights real and imagined,” Richard Reeves wrote in “ President Reagan: The Triumph of Imagination .” In April 1981, while convalescing from his gunshot wound, Reagan penned a heartfelt handwritten note to Soviet leader Leonid Brezhnev , extolling the importance of peace. Haig tried without success to persuade Reagan to sharpen the letter’s tone. Haig’s tenure was “doomed from that moment,” according to Reagan biographer Lou Cannon. Reagan’s Limits “Al really did not understand how much Reagan intended to be his own president,” Cannon said in a 2008 interview. “Reagan delegated a ton of stuff, arguably more than he should have, but he considered the U.S.-Soviet relationship the most important thing on his plate, and he was never about to delegate that.” Haig resigned in June 1982 and presented his side of the story in a 1984 book, “ Caveat: Realism, Reagan and Foreign Policy .” The Reagan White House was “an administration of chums,” he wrote, and his status as an outsider was a “handicap.” He said he was unjustly blamed for failing to forge a diplomatic solution to avert the Falklands War between Argentina and the U.K. He also denied longstanding allegations that he gave Israel a green light to invade Lebanon in 1982. Haig became a presidential candidate himself in 1987, joining a Republican field that included Bush, the sitting vice president. He dropped out on Feb. 12, 1988, four days before the New Hampshire primary, and endorsed Senator Robert Dole , who went on to lose the nomination to Bush. Attacking Bush Haig spent much of his brief candidacy attacking Bush, venting some leftover resentment toward the Reagan White House. Rejecting one of Reagan’s central arguments, candidate Haig said the ballooning budget deficit was a “Republican deficit” that couldn’t be blamed on congressional Democrats. He indicated that at least some of his anger toward Bush stemmed from his feelings toward Baker, a Bush friend and adviser. Alexander Meigs Haig Jr. was born on Dec. 2, 1924, the son of a lawyer. He was raised in the suburbs of Philadelphia. He graduated in 1947 from the U.S. Military Academy at West Point, New York, and obtained a master’s degree in international relations from Georgetown University in 1961. He served military assignments in Japan, Korea, Europe and Vietnam, working part of the time under General Douglas MacArthur . Among numerous commendations, Haig received a Distinguished Service Cross , the nation’s second-highest medal for heroism, for leading outnumbered U.S. troops in a 1967 battle with Viet Cong forces. Nixon White House He joined Richard Nixon ’s White House in 1969 as chief military assistant to National Security Adviser Henry Kissinger , became deputy assistant to the president for national security and was promoted to general in 1972. He worked on negotiations for a cease-fire in Vietnam as well as arrangements for Nixon’s historic visit to China in 1972. After a brief stint as Army vice chief of staff, Haig returned to the White House and succeeded H.R. Haldeman as chief of staff as Nixon’s team dealt with the fallout from the Watergate break-in. Haig played a central role in persuading Nixon to resign in August 1974. Nixon’s successor, Gerald Ford , named Haig commander-in- chief for U.S. forces in Europe. Haig then spent five years as supreme allied commander in Europe, responsible for the multi- nation forces of NATO. He survived an assassination attempt in June 1979 when a bomb exploded near his car as he was being driven to his NATO office in Belgium. That same year, he became president and chief operating officer of Hartford, Connecticut-based United Technologies Corp . Confronting Soviets Reagan, upon taking office in 1981, named him the 59th secretary of state. Haig endured contentious confirmation hearings in the Senate, then went to work building a foreign policy rooted in direct confrontation with the Soviet Union in Cuba, Central America and elsewhere. His resignation in June 1982 marked the end of his work in government. He returned to United Technologies as senior adviser and director while opening and serving as chairman of Worldwide Associates Inc. , which provides political and security consulting to international corporations. He served on the boards of several companies, including America Online Inc., MGM Grand Inc. and Metro-Goldwyn-Mayer Inc. He was popular on the paid lecture circuit and hosted an independently produced weekly television program, “World Business Review. ” In addition to his 1984 book on the Reagan White House, he wrote “Inner Circles: How America Changed the World,” published in 1992. Haig married the former Patricia Fox on May 24, 1950. They had two sons, Alexander and Brian, and a daughter, Barbara. To contact the reporter on this story: Laurence Arnold in Washington at larnold4@bloomberg.net .

Read the full article →

Ethiopian Air Plane Carrying 90 Crashes Into Sea After Takeoff From Beirut

January 25, 2010

By Massoud A. Derhally and Jason McLure Jan. 25 (Bloomberg) — An Ethiopian Airlines plane with 90 people on board crashed into the Mediterranean Sea after taking off from Beirut, Lebanon, early this morning. Eleven bodies have been recovered and no survivors have been found, Lebanese army Brigadier Saleh Haj Suleiman said by phone. Search operations are ongoing about 8 kilometers (5 miles) off the coast, he said. “Weather conditions are very harsh,” Suleiman said. “We hope, God willing, to find some survivors.” The passengers on flight ET409 included 51 Lebanese and 23 Ethiopians, the carrier said on its Web site . The eight crew members were all Ethiopian. The Boeing Co. 737-800 left Beirut’s Rafik Hariri International Airport for Addis Ababa, the Ethiopian capital, at 2:35 a.m. and lost contact with air traffic control shortly afterward. Flames were seen coming from the aircraft before the crash near Na’ameh town, south of Beirut, according to the state-run Lebanese National News Agency. Lebanon has been lashed with heavy rains, thunderstorms and high winds for much of the past two days. “It was manageable weather otherwise the crew wouldn’t have taken off,” Chief Executive Officer Girma Wake told reporters at a briefing in Addis Ababa. “On behalf of Ethiopian Airlines and myself I am sorry that this happened.” Lebanese President Michel Suleiman said terrorism was unlikely to have been the cause during a press conference in Beirut. Boeing Investigation The other passengers onboard the plane comprised two Britons and one each from Turkey, France, Russia, Canada, Syria and Iraq, state-owned Ethiopian Airlines said. The Lebanese National News Agency put the number of Lebanese citizens onboard at 54, saying that some held dual citizenship. The wife of the French ambassador to Lebanon was among those on the plane, said Anne-Charlotte Dommartin, a spokeswoman for the French embassy in Beirut. The flight was due to take off at 2:10 a.m. At Bole International Airport in Addis Ababa, people have been told to wait for further information on possible survivors, said Tedros Abdissa, whose 35-year-old cousin Tegist Shokur was onboard the flight. Possible Survivors “She was a domestic servant and her employer beat her up so she chose to leave,” he said in an interview at the airport. The crashed plane was made in 2002 and leased from CIT Aerospace in September, Girma said. Addis Ababa-based Ethiopian Airlines said it had dispatched investigators to the scene of the crash. Boeing is working with the U.S. National Transportation Safety Board to assist Lebanese authorities with the investigation, spokeswoman Sandy Angers said in an e-mailed reply to Bloomberg News questions. Ethiopian Airlines operates a fleet of 37 planes, most of them Boeing aircraft, according to its Web site . It also has orders outstanding for planes including 10 787 Dreamliners, 12 Airbus SAS A350s and 5 Boeing 777s, according to the site. The airline and Boeing announced a deal for 10 737s on Jan. 22. The carrier hasn’t suffered a fatal crash since November 1996, when 125 people died during a hijacking of a Boeing 767 bound for Abidjan, Ivory Coast, according to the Flight Safety Foundation . To contact the reporter on this story: Massoud A. Derhally in Beirut, Lebanon at mderhally@bloomberg.net

Read the full article →

COMP Dean Named Vice President of Clinical Affairs

January 15, 2010

POMONA, CA–(Marketwire – January 15, 2010) – College of Osteopathic Medicine of the Pacific (COMP) Dean Clinton Adams, DO, MPA, FACHE, has been named Vice President of Clinical Affairs at Western University of Health Sciences. Dr. Adams will continue to serve as COMP dean while taking on the added responsibilities of the newly created position, managing all aspects of operations and planning for WesternU’s COMP-Northwest Campus (COMP NW) in Lebanon, Ore., and any future osteopathic medicine school sites. He also will lead the planning, development and operations of WesternU’s Healthcare Practice Plan, including health care services, clinical services, and patient care services, said WesternU Provost and COO Benjamin Cohen, DO.

Read the full article →

Lebanon’s economic growth to reach 7% next year

November 4, 2009

04 Nov 2009 The growth of the economy in Lebanon will rise to seven per cent during 2010, it has been claimed. According to the Institute of International Finance (IIF), the Middle Eastern country …

Read the full article →

Iran Military Power Faces U.S. Study for First Time Under Defense Measure

November 3, 2009

By Viola Gienger Nov. 3 (Bloomberg) — Iran’s military will be subject for the first time to the kind of U.S. assessment reserved for China’s expanding forces as lawmakers seek a more accurate analysis of the Persian Gulf oil power’s strengths and strategy. Congress ordered an annual report on Iranian military goals and capabilities, including the country’s missile and nuclear programs, in a provision tucked into a 1,200-page measure authorizing defense spending. President Barack Obama signed the bill into law last week. The demand for the analysis reflects lawmakers’ concerns that periodic U.S. intelligence estimates focusing on Iran’s nuclear efforts are too limited in scope. The U.S. and nations in Europe and the Middle East see current and potential threats from Iran, including its support of designated terrorist groups such as Hamas and Hezbollah, interference in Iraq and Afghanistan, and a push to dominate the Gulf. “Iran’s actions pose a threat to peace and stability in their region, and these have repercussions for global security,” said California Representative Howard “Buck” McKeon , the top Republican on the House Armed Services Committee . He and Kansas Republican Sam Brownback in the Senate proposed the provision and won Democratic support for its inclusion in the defense bill. “Our hope is that our nation and countries around the world will gain better insight on the true intentions of Iran,” McKeon said. The legislation requires the first report to be produced by Jan. 30 in classified and unclassified versions. Obama Overtures The timing may coincide with increasing pressure on Obama to toughen his approach on Iran should a policy based on diplomatic overtures fail to win concessions. The U.S. is working with France, the U.K., Germany, Russia, and China to persuade Iran to stop enriching uranium, a process that can lead to nuclear energy production or a nuclear bomb. Committees in the House and Senate last week backed separate legislation to further restrict trade with Iran by imposing sanctions on companies that supply the country with refined petroleum products. While Iran is the world’s fourth- largest oil producer, limited refining capacity forces it to import about a third of its gasoline. Congress and the administration also are considering further sanctions on Iran’s Revolutionary Guard Corps, an arm of the military that also has become a political and economic force. Mohamed ElBaradei , the head of the United Nations nuclear watchdog agency, said yesterday that negotiations intended to turn Iranian enriched uranium into fuel for a Tehran medical reactor provide a chance to resolve the dispute over the nuclear effort. ‘Fleeting’ Opportunity “This is a unique and fleeting opportunity to reverse course from confrontation to cooperation and should therefore not be missed,” ElBaradei said in his final report to the UN General Assembly before leaving the Vienna-based International Atomic Energy Agency after 10 years as director-general. In Washington, House Armed Services Committee Chairman Ike Skelton said he endorsed the requirement for an annual report on Iran’s military because the U.S. needs a better handle on Iran’s general military strength. “That country has potential to cause great mischief,” said Skelton, a Missouri Democrat. In addition to Iran’s nuclear and missile programs, the analysis must include the size and effectiveness of Iran’s conventional forces and the Revolutionary Guard’s Quds Force. Power Trends Congress wants details indicating trends in the Gulf nation’s strategy “that would be designed to establish Iran as the leading power in the Middle East and to enhance the influence of Iran in other regions of the world.” The administration also will have to examine Iran’s strategy regarding other countries in the region, especially Israel, Lebanon, Syria, Jordan, Iraq, Afghanistan, Saudi Arabia, Turkey, Bahrain, Kuwait, the United Arab Emirates, Armenia and Azerbaijan. “This report will help us understand the comprehensive threat Iran poses,” Brownback said in an e-mailed response to questions. The analysis will create “a much clearer picture of Iran’s capabilities and how it intends to use them.” Congress has required a similar report since 2000 on China, which has criticized the practice. ‘Disruptive’ Technology The most recent report, issued by the Pentagon in March, found that China is shifting the balance of power in Asia by continuing to develop “disruptive” military technology, including anti-satellite and cyber capabilities. The Foreign Ministry in Beijing called the analysis a “gross intervention in China’s international affairs.” The U.S. has long been concerned that China aims to threaten the American military presence in the Asia-Pacific region. China recently resumed military talks with the Obama administration after cutting off dialogue 18 months ago when the U.S. signaled its intent to sell arms to Taiwan. The Iran report might be more effective were it to include updates on diplomatic negotiations and Iran’s compliance with UN Security Council resolutions and the atomic energy agency, said Michael Elleman , a visiting senior fellow at the International Institute for Strategic Studies in Washington. “One needs to examine the entire picture, not just the military side of it,” said Elleman, who has consulted on weapons programs for the UN and the U.S. and is leading an independent study of Iran’s missile program. “It could have been much sharper language and more balanced if they tried to address the entire issue.” To contact the reporter on this story: Viola Gienger in Washington at vgienger@bloomberg.net .

Read the full article →

Diane Francis: Bust Up the Banks Before it’s Too Late

October 27, 2009

The world desperately needs Glass-Steagall on steroids. Banking must be atomized — a la America’s 1933 Glass-Steagall legislation — in order to separate high-risk investment banking from taxpayer-insured deposits. Canada does a reasonably good job of sequestering these businesses, but the facts are that excessively big banks like ours contributed mightily to the current global catastrophe. Busting up the banking trusts is essential for the following reasons: 1) It eliminates the too-big-to-fail issue, which puts entire economies at risk. 2) Excessively large banks destroy democracies, like the United States, through inordinate influence on policy, politicians and regulators. 3) Oligopolies and monopolies are economically inefficient and charge excessive fees, earn excessive profits and pay excessive salaries and bonuses. 4) Oligopolies and monopolies don’t innovate because they don’t have to. 5) Oligopolies and monopolies are risky because they indulge in groupthink mistakes that are too large for economies and the business community to bear. 6) Oligopolies and monopolies fossilize markets by dealing with big entities, cronies, politically connected clients and nepotism. 7) Oligopolies and monopolies hurt economies because of overcharging and gouging. The world’s concentrated financial sector has been grabbing more than its fair share of wealth because it has been able to, and this must stop. Between 1989 and 1999, financial fees increased tenfold. Since the 1960s, the financial sector in the United States has more than doubled in size, from 3% of GDP to 7.5% currently. “This is like looting,” said outspoken Boston money manager Jeremy Grantham, whose firm invests $89 billion in funds. “That 7.5%, that goes to financial fees, is on its way to 10%. This industry can grow to gobble up all the benefits of the real economy if allowed to. It is trying to grab our cash. It’s obscene.” Despite the obvious benefits of busting up the bank trusts, the U.S. and other governments resist a Glass-Steagall restructuring. Washington’s intransigence flies in the face of the anti-trust tradition in the United States. Americans invented a strong economy by keeping banks smaller and competitive, by blowing up Rockefeller’s abusive Standard Oil of New Jersey into pieces to prevent it from owning the world and by curbing other robber barons through law. More recently, AT&T’s breakup created innovation and competition, as did the prolonged (even if unsuccessful) attempt to break up software bully Microsoft Corp. Even though the bust-up didn’t happen, the firm was cosseted and the possible stultification of the high-tech world was prevented. Glass-Steagall is the only type of reform that will work, which is why Bank of England governor Mervyn King and former Federal Reserve chairman Paul Volcker came out last week in support of a global Glass-Steagall. But Washington, London, Ottawa and others are counting on regulation instead, even though that didn’t work. Their position is even less justifiable given the fact that the meltdown has increased concentration of banking power, with even more accompanying problems. For instance, monopoly profits are why, months after Goldman Sachs was given $10 billion in taxpayer bailout funds, it has amassed $23 billion for bonuses this year — an amount equivalent in size to the economies of Trinidad and Tobago, Estonia, Lebanon or Congo and Mongolia combined. Goldman Sachs should be the first to be broken up. The firm would have disappeared if not for its $10 billion bailout (which it paid back) and is still at the taxpayer trough, thanks to its conversion of part of its business into a deposit-taking institution to get $26 billion taxpayer deposit insurance. Likewise, oligopoly profits are why a handful of America’s other rescued banks also planned on handing out obscene salaries, forcing Washington this week to chop some salaries by 90% to appease an outraged public. But slashing salaries is a one-time event that won’t work as bankers learn how to get around such salary restrictions by paying themselves through consulting contracts, by outsourcing to partners, or by simply fooling regulators or co-opting politicians, as they have done for years. Governments must bust up the banking giants or risk ruination again. Diane Francis blogs at National Post

Read the full article →

Nobel Peace Prize Award to Obama Generates Surprised, Divided Reactions

October 9, 2009

By Jeff Bliss and Meera Bhatia Oct. 10 (Bloomberg) — The award of the 2009 Nobel Peace Prize to President Barack Obama caught the winner off guard, divided Washington along familiar partisan lines and left foreign-policy experts and some past recipients puzzling over the choice. “I am both surprised and deeply humbled,” Obama, 48, said in the White House Rose Garden yesterday. Summing up much of the worldwide reaction, he said, “I do not view it as a recognition of my own accomplishments, but rather as an affirmation of American leadership.” Democrats defended the prize as an endorsement of Obama’s diplomatic initiatives. Republicans, who oppose Obama’s domestic agenda and are urging him to grant U.S. military requests for as many as 40,000 additional troops in Afghanistan, said the choice was based more on popularity than accomplishment. “It is unfortunate that the president’s star power has outshined tireless advocates who have made real achievements working towards peace and human rights,” Republican National Committee Chairman Michael Steele said in a statement. Political analysts said the award may have been an attempt by the Nobel committee to underscore its opposition to the policies of former President George W. Bush . The selection also is a way for the committee to boost Obama’s initiatives on nuclear-weapons reduction and climate change. ‘New Climate” In announcing the prize, Thorbjoern Jagland , chairman of the five-member Nobel committee , said Obama “created a new climate in international politics.” The committee “in particular looked at Obama’s vision and work toward a world without atomic weapons,” Jagland said. Some foreign leaders praised the decision. “It sets the seal on America’s return to the heart of all the world’s peoples,” French President Nicholas Sarkozy wrote to Obama. “Very few leaders, if at all, were able to change the mood of the entire world in such a short while with such profound impact,” said Israeli President Shimon Peres , co-winner of the 1994 prize. None of the analysts who follow Nobel prizes predicted the choice of Obama, who is just nine months into his term and became the third U.S. president to receive the award while in office. Roosevelt, Wilson President Theodore Roosevelt won the prize in 1906 and Woodrow Wilson in 1919. Former President Jimmy Carter won in 2002 and former Vice President Al Gore received it in 2007. Supporters and critics alike of the committee’s decision agreed that it was based more on Obama’s aspirations than his achievements. “He hasn’t made such a contribution,” said Nobel laureate and former Polish President Lech Walesa . “He’s proposing things, getting started, but he still has to do something.” Obama said he saw the award as an opportunity to move forward on his agenda. “I do not feel that I deserve to be in the company of so many of the transformative figures” who have won previously, he said. “I will accept this award as a call to action, a call for all nations to confront the common challenges of the 21st century.” Money to Charity White House spokesman Bill Burton said Obama will donate the 10 million Swedish kronor ($1.4 million) in prize money to charity. Obama is presiding over two wars and met yesterday with U.S. generals and his foreign policy advisers yesterday for three hours to discuss troop levels in Afghanistan. His administration also is negotiating with Iran and North Korea to curtail their nuclear programs. He was elected last year on a platform that included extracting U.S. forces from Iraq and closing the terror detention center at Guantanamo Bay, Cuba. These and other positions contributed to changing the perception of the U.S. in much of the world. The Nobel committee alluded to the shift in tone. “Multilateral diplomacy is again central, with emphasis on the role the United Nations and other international institutions should play,” Jagland said. “Dialogue and negotiations are the preferred method to solve even the most difficult international conflicts.” Bush Critic The Nobel committee had been critical of the Bush administration. Upon awarding Carter the peace prize, Gunnar Berge , the Norwegian committee chairman, responded with “an unconditional yes” when asked if the award was meant as a rebuke of Bush. Bush declined to comment through his spokesman, David Sherzer. Obama moved quickly to fulfill his campaign pledge for greater U.S. support for the UN, a contrast with the Bush administration’s skeptical stance toward the organization. Last month, Obama became the first U.S. president to preside over a meeting of the UN Security Council, which unanimously adopted a U.S.-written resolution calling for progress toward his goal of nuclear-weapons disarmament. Obama’s administration also paid U.S. debts to the UN for the first time since 1999. Cairo Speech Obama has sought to improve U.S. relations with the Muslim world. In a June 4 speech at Cairo University, he pledged to “seek a new beginning” on this front that would end a “cycle of suspicion and discord.” Those questioning whether he deserved the prize included Fawzi Barhoum , a Hamas spokesman in the Gaza Strip. “There’s a lot more that Obama needs to achieve for peace and for the Palestinian people in order to receive this award,” Barhoum said in a telephone interview. The U.S., European Union and Israel brand Hamas, which controls Gaza, a terrorist organization. Other Arab politicians said they hoped the prize would strengthen Obama’s hand in Middle East peace negotiations. The award may “provide a stimulus for peace,” said Lebanon’s foreign minister, Fawzi Salloukh . The prize, along with honors for literature, physics, medicine and chemistry, was created by Swedish industrialist Alfred Nobel in his will and first awarded in 1901. Past laureates include Martin Luther King Jr ., Desmond Tutu , Mother Teresa and groups such as the International Committee of the Red Cross. Most Nominations There were 205 names submitted for this year’s prize, the highest number in the award’s history. The winner is selected by a committee of five people elected by the Norwegian parliament. The prizes for literature, chemistry, medicine and physics, are picked by the Stockholm-based Nobel Foundation . Obama said he learned of the award when White House spokesman Robert Gibbs woke him with the news at 6 a.m. yesterday. The president said that after he found out, his daughter, Malia, “walked in and said, ‘Daddy, you won the Nobel Peace Prize, and it is Bo’s birthday,’” a reference to the family dog. He said his other daughter, Sasha, added, “‘Plus, we have a three-day weekend coming up.’ So it’s good to have kids to keep things in perspective.” To contact the reporters on this story: Meera Bhatia in Oslo at mbhatia2@bloomberg.net ; Jeff Bliss in Washington at jbliss@bloomberg.net .

Read the full article →

Georges Ugeux: Iran: Let’s Get Back To Business!

August 12, 2009

One of the most politically complex issues confronted by the Western world is its handling of Iran. Thirty years of disputes, including eight years of ostracizing and economically boycotting Iran, have been totally ineffective, as was the Bush administration’s more directly confrontational stance. The United States cannot drive Iran into bankruptcy because of Iran’s ranking as the world’s fourth largest oil producer. The boycott of Iranian banks because they handle the accounts of the Iranian Army was a particularly bad idea, since every substantial bank in the world handles army accounts. There are 44 foreign banks in Iran and the government recently decided to allow more foreign branches in the country. In other words, Iran’s substantial oil revenues will find their ways into the banking system, regardless of the U.S. policy. It is time to reconsider one of the biggest failures of the U.S. foreign policy. I am definitely not underestimating the threat that Iran represents to the world. Its possible production of nuclear weapons in a few years, its non-democratic regime and its anti-Israeli stance are particularly alarming. But we should not forget that it is also the second largest Jewish population in the Middle East after Israel. Their involvement in Iraq (with the consensus of the local leadership the U.S. put in place), with Hezbollah in Lebanon, and with Hamas in Palestine mean that the future of peace in the Middle East requires a serious reconsideration of our attitude vis-à-vis Iran. The enormity of the conflict is such that political progress, initiated with President Obama’s first declaration on the subject, will take years to produce concrete results. Does that mean that we should not try to (re)build normal business and trade relationships with Iran now? Do we need to continue to enforce an ineffective boycott? The question merits close examination for a number of reasons. The last election and the following demonstrations have significantly damaged the united front of the leadership in Iran. For the first time since the revolution, the clerical leadership of the mullahs is deeply divided. Significant demonstrations protested against what every country knows but refuses to openly state: the elections were won by the opposition. But taking advantage of these divisions will require subtlety, certainly not confrontation. We cannot afford to support openly the opposition, but can support openness, especially in business. When I first went to Iran for business in 1976, I was impressed by the quality, wisdom and shrewdness of their business leadership. After I joined the NYSE, those business interactions could only happen at global meetings such as the World Economic Forum, where the Iranian leadership was represented. They were keen to understand and develop capital markets. The Tehran Stock Exchange has quadrupled in market capitalization since 2000 and its trading was multiplied by five. Now is the time for the administration to send a clear signaling that, in a measured and limited way, they no longer object to business dealings in sectors that carry no military or nuclear energy risks. The best way for the situation to improve, is for the Iranians to see concretely that the Western world is willing to deal with them in a fair way. This will strengthen the hand of the Iranian partisans of openness better than any statements or declarations. It will also be good business for everybody. Iran needs to export as much as it needs to import. The fourth five-year plan provides for the creation of free trade zones to allow gateways to and from international markets. Free trade zones can become gateways for other positive exchanges as well. We should encourage them. Even if the U.S. continues to refuse to do business with Iran, others will not follow its lead. Are we convinced that it is smart to let Russian, Chinese or Indian interests build businesses (and influence) in Iran? Is it the right policy to refuse to be part of the $ 10 billion of foreign direct investments in 2007 in beverage, tobacco, textiles, clothing, leather, chemical, steel and oil derivatives? Most of the largest European groups in the energy, automotive and engineering sectors already have substantial presence in Iran. The U.S. simply cannot continue to ignore this market. For those who would have any doubts, I have absolutely no contacts or cooperation activities with Iran and my comment are entirely based on my personal assessment of the situation, and its urgency.

Read the full article →

Markaz reports EPS 5 fils for H1 2009 High quality assets and a leading market share

August 3, 2009

yield excellent returns ? Introduction of put and Islamic options tools pending KSE approval due August ? Recession-proof real estate investments in KSA, Qatar, Lebanon Kuwait City, 03 August 2009, Kuwait Financial CentreKuwait Financial Centre

Read the full article →

Gates to Assure Israel U.S. Will Pressure Iran on Nuclear Weapons Program

July 26, 2009

By Viola Gienger July 26 (Bloomberg) — U.S. Defense Secretary Robert Gates will seek to assure Israeli leaders during a visit this week that the Obama administration stands firm in its demand that Iran forgo any development of nuclear weapons. Gates, scheduled to arrive in Israel tomorrow, will ask the Israeli leadership for patience while President Barack Obama tries diplomatic engagement with Iran, according to an American defense official who briefed reporters. The U.S

Read the full article →