Archive for August 18th, 2010

Aug
18

General Motors unveils plans for a massive share sale

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General Motors unveils plans for a massive share sale

General Motors has paved the way for an initial public offering (IPO), expected to be the second largest share sale in US history.
GM, 60%-owned by the US government, has officially filed its proposals with the Securities and Exchange Commission.
The move begins the timetable for the IPO, which analysts believe will raise between 12bn and 16bn (7.7-10.2bn).
It means the US Treasury can begin selling the stake it took after last year's 50bn bailout of the carmaker.
Company executives have said for several months they were planning to re-float GM, as the biggest US carmaker seeks to repay its debt to the government.
The filing of the IPO paperwork with the SEC came nearly a week after the GM reported second-quarter profits of 1.6bn (1bn), its biggest profit in six years.
The share sale is expected to take place later this year. The largest US IPO so far is Visa's 2008 offering that raised 19.7bn.
News of the IPO also comes a week after GM's chief executive, Edward Whitacre, announced plans to resign.
He will hand over to current board member Dan Akerson, but will stay on as chairman until the end of the year.
Mr Whitacre joined GM in July last year to help restructure the carmaker and prepare its return to full private-sector ownership.
GM has cut more than 65,000 jobs in the US and closed factories in an attempt to cut costs in the last year.
It has also sold its Saab brand and wound down others, though it has retained its European brands, Opel and Vauxhall.
GM has already repaid 8.4bn worth of loans to the US and Canadian governments.

Source:BBC

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Aug
18

Barclays Bank sanctionbusting fine approved

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Barclays Bank sanctionbusting fine approved

A US judge has approved a settlement under which Barclays Bank will be fined 298m (191m) for sanctions-busting.
Barclays had agreed a settlement with the US Justice Department over dealings with Cuba, Iran, Sudan, and Burma.
However, despite approving the deal, which means Barclays avoids criminal prosecution, Judge Emmet Sullivan still queried if the fine was enough.
It looked like the bank was “getting a free ride here,” he said. Barclays has refused to comment on the affair.
Barclays was charged with breaching the International Emergency Economic Powers Act and the Trading with the Enemy Act in dealings between 1995 and 2006.
According to court documents filed in the US on Monday, in 2006 Barclays voluntarily disclosed transactions that violated US sanctions.
The bank began cooperating with a broad review by federal and state prosecutors in 2007.
Under the settlement with the Justice Department, two criminal charges the bank faces will be deferred and ultimately dropped if Barclays demonstrates that it is complying with all US laws.
The deal was, however, criticised by the judge, who said that the “average person probably concludes” that Barclays is “getting a free ride here”.

Source:BBC

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Aug
18

US backs inquiry into alleged Burma war crimes

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US backs inquiry into alleged Burma war crimes

The US government says it will back the creation of an international commission to investigate alleged war crimes by Burma's military junta.
The body could advance the cause of human rights in Burma by “addressing issues of accountability” for members of the regime, the White House said.
A senior US official told the BBC the move was still consistent with the US policy of engagement with Burma.
The US announced in 2009 that it would engage diplomatically with Burma.
In March, UN special rapporteur Tomas Ojea Quintana released a critical report referring to “systematic violation of human rights” for years in the country.

  • The Obama administration's aim was to help put Burma on a path to reform, achieve credible elections as well as promote national reconciliation, including with the National League for Democracy, led by Aung San Suu Kyii.
    But US Secretary of State Hillary Clinton says efforts have yielded no improvement in the situation inside the country, ahead of general elections scheduled for 7 November.
    “Diplomatic engagement is not a reward – it is a tool designed to facilitate and encourage positive change,” a state department official told the BBC.
    “We have been clear all along this did not preclude us from taking steps to increase pressure when warranted.”
    The commission of inquiry could be formed either through the UN Human Rights Council, through a UN General Assembly resolution or by UN Secretary General Ban Ki-moon, and could eventually lead to a war crimes prosecution.
    The US official hinted that further sanctions on Burma were also possible.
    “Our sanctions regime is dynamic, is constantly being assessed for efficacy, and is capable of being adjusted as warranted by conditions within Burma and the actions of the Burmese government,” he added.
    The US move has been welcomed by human rights organisations like the US Campaign for Burma.
    “This is the right and timely action by the Obama administration in response to the power-thirsty and brutal generals in [the Burmese capital] Nay Pyi Taw, who are expecting to delete their dirty crimes by putting a sham constitution into effect through a sham election,” said the group's executive director, Aung Din.
    “This is a clear message that the United States will not recognize their show-case election and will make them accountable for their horrible abuses against their own citizens.”
    It is unclear what impact, if any, the commission will have on the leadership, particularly the ruling General Than Shwe.
    But much of what drives policy towards Burma, including the decision to engage, is about influencing younger members of the junta, who may not be as deeply involved in any alleged war crimes.

    Source:BBC

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    Aug
    18

    Two infant skeletons found in 1920s LA building

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    Two infant skeletons found in 1920s LA building

    Two infant skeletons have been found wrapped in newspaper from the 1930s in the basement of a building in Los Angeles, California, police say.
    The remains, which are believed to be decades-old, were found placed in doctor's bags inside a trunk in a 1920s building near MacArthur Park.
    Workers found the remains while cleaning out the Glen-Donald building.
    Police have promised an investigation and are awaiting test results from the coroner's office.
    “We'll try to reconstruct the circumstances based on what the coroner tells us, based on the history of the residence and based on science,” Los Angeles police chief Charlie Beck told the Los Angeles Times newspaper.
    One of the skeletons was wrapped in a 1933 copy of the LA Times and the other was in a 1935 issue.
    The trunk also contained personal letters and ticket stubs from the 1932 Los Angeles Olympic Games.

    Source:BBC

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    Aug
    18

    Profile – Child prodigy Alia Sabur at 21

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    Profile - Child prodigy Alia Sabur at 21

    If she has no “inventions” to offer the world just now, she takes great pride in her published scientific research and, with her first professorship already behind her, science remains her passion.
    “However much we know, it's a tiny fraction of what there actually is to know about,” she says. “I try to learn as much as I can about as much as I can.”
    Asked about the maxim attributed to Einstein that “intellectuals solve problems; geniuses prevent them”, she says she does not feel her intelligence has placed a burden on her.
    “I want to make the world a better place and I will use all my abilities to do that, including my intelligence, but I don't feel it gives me a responsibility to do anything in particular,” she says.
    The 21-year-old, who watches Dr Who and reads Terry Pratchett, believes she feels much the same way as anyone of her age, “trying to figure out where they stand and what they want to do”.
    A high IQ, she argues, is not an obstacle to living a normal life.
    “The same way that an athlete doesn't display their talents while spending time with friends but isn't considered to be 'suspending' their abilities, I don't 'suspend' my intelligence,” she says.
    “It's part of who I am, and I don't feel the need to prove that I'm smart, or hide it either.”Alia Sabur was interviewed as part of .

    Source:BBC

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    Aug
    18

    Obama says housing glut hindering economic recovery

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    Obama says housing glut hindering economic recovery

    President Barack Obama has said an over-supply of homes is hindering the US economic recovery.
    Mr Obama also said the US had to find a way to curb its budget deficit without further slowing economic growth.
    “People, consumers, are not going to start spending until they feel a little more confident that the economy's getting stronger,” he said in Ohio.

  • Mr Obama is touting Democratic policies on a campaign-style swing through important electoral states.
    The president told a group of about 30 voters at a private home in the city Columbus that a glut in the housing market was partly responsible for the slow economic recovery.
    “The housing market is still a big drag on the economy as a whole,” he said.
    “It is going to take some time for us to absorb this inventory, that was really too high… We were building 2 million homes a year when only 1.4 were being absorbed.”
    Mr Obama was speaking at an event the White House billed as a “kitchen table and backyard discussion”.
    The economy is expected to be the single biggest issue for US voters in November's mid-term elections.
    Unemployment in the country is lingering at around 10%, and US growth slowed in the second quarter of 2010, sparking fears the country might fall back into recession.

    Source:BBC

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    Aug
    18

    Peru court revokes parole for US rebel Berenson

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    Peru court revokes parole for US rebel Berenson

    A court in Peru has revoked parole for an American woman who was imprisoned for aiding a left-wing rebel group.
    Judges ordered that Lori Berenson be arrested and sent back to prison to finish the last five years of her 20-year sentence. She was freed in May.
    On Monday, Ms Berenson apologised for collaborating with the Tupac Amaru Revolutionary Movement (MRTA) and asked judges to let her stay out of jail.
    But she denied ever having participated in any “violent or bloody acts”.
    As part of its insurgency, the MRTA robbed banks, kidnapped and killed a number of people in the 1980s and 90s.

    Source:BBC

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    Aug
    18

    Lone juror refused to find Blagojevich guilty

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    Lone juror refused to find Blagojevich guilty

    Share this page Lone juror 'refused to find Blagojevich guilty' A single juror prevented former Illinois Governor Rod Blagojevich being convicted of selling Barack Obama's Senate seat, the jury foreman has said.
    The juror, a female retiree, believed there wasn't sufficient evidence – “a smoking gun” – to warrant a conviction for corruption, James Matsumoto said.
    “She saw it as, no crime was being committed. It was just talk – political talk,” Mr Matsumoto told reporters.
    The Chicago federal jury convicted Blagojevich of lying to FBI agents.
    That charge carries a maximum sentence of five years in jail.
    The jury was unable to reach unanimous verdicts on 23 other corruption charges. On several charges, the same juror held out.
    The verdict came on the jury's 14th day of deliberations. Mr Matsumoto said the jury room was often tense.
    Another juror, Erik Sarnello, told the Chicago Sun-Times newspaper that some jurors found the government's case – which involved several different instances of alleged corruption over many years – to be confusing.
    The trial of Rod Blagojevich was one of the most high profile and politically charged in recent years. It threatened to involve White House officials – although none were called to give evidence – and centred on whether President Barack Obama's former US Senate seat was being sold for political favours.
    It also raised questions about the nature of Chicago politics, where Mr Obama honed his political skills, and whether normal “wheeling and dealing” had moved into the territory of criminal racketeering.
    But Blagojevich denied all charges and, in the end, the prosecution was unable to convince the jury that he was planning to following through on some of the questionable deals he was caught discussing on tape.
    He was found guilty of just one of the 24 charges – that he lied to the FBI during the investigation. That's a crime that carries up to five years in prison and is the same offence that landed lifestyle guru Martha Stewart behind bars for five months in 2004.
    Blagojevich will remain free until he is sentenced. A hearing has been set for 26 August to decide whether he will be retried on the remaining counts of corruption, extortion, bribery and racketeering.
    The jury was split different ways on each charge, sometimes 6-6, other times 9-3. But in the end, the most explosive charge – seeking to sell Mr Obama's senate seat – came down to one person.
    “Say it was a murder trial – she wanted the video,” the Chicago Sun-Times reports Mr Sarnello as saying.
    “She wanted to hear [Blagojevich] say, 'I'll give you this for that'.
    “For some people, it was clear. Some people heard that. But for some, it wasn't clear.''
    After the verdict was announced, US attorneys said the government planned to retry the case “as quickly as possible”.
    Speaking afterwards outside the court, Mr Blagojevich, 53, was defiant.
    “This jury shows you that the government threw everything but the kitchen sink at me,” he said.
    “They could not prove I did anything wrong – except for one nebulous charge from five years ago.”
    His lawyer said he would appeal against the conviction.
    The judge said he intended to declare a mistrial on the remaining counts and will decide whether to retry on 26 August.
    The one charge on which Blagojevich was found guilty was that he lied to federal agents when he said he did not track campaign contributions and that he kept a “firewall” between his political campaigns and his government work.
    The case involved hours of conversations wire-tapped by the FBI.
    Defence lawyers had maintained that Blagojevich's talk was mere bluster and he had done nothing illegal.
    Blagojevich, a Democrat, was ejected from office by the Illinois state legislature in January 2009.

    Source:BBC

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    Aug
    18

    Canadian police oust gun registry chief Marty Cheliak

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    Canadian police oust gun registry chief Marty Cheliak

    Share this page Canadian police oust gun registry chief Marty Cheliak The head of the Canadian Firearms Program, a vocal supporter of a national firearms registry, has been moved from his job.
    Royal Canadian Mounted Police Chief Superintendent Marty Cheliak's ouster comes as the government weighs scrapping the gun control initiative.
    Mr Cheliak was appointed in an acting capacity in August 2009
    The RCMP said he was below the rank needed to fill the role permanently and was being sent for French language training.
    The Canadian firearms registry was instituted in 1996 by the Liberal government of Jean Chretien and is largely backed by Canadian police, who say it helps trace guns used in crimes.
    But the Conservative minority government has pledged to end it, calling it wasteful and ineffective and saying it penalises lawful gun owners.
    Mr Cheliak had spoken strongly in favour of the registry, including at a parliamentary hearing.

    Source:BBC

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    Aug
    18

    Rupert Murdochs News America Inc gives Republicans $1m

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    Rupert Murdochs News America Inc gives Republicans $1m

    Rupert Murdoch's News America Inc has donated 1m (637,000) to the Republican Governors Association ahead of November's US mid-term elections.
    The donation from News America Inc, the parent company of Fox News, helped the RGA more than double its fundraising in the second quarter of 2010.
    The association helps elect Republican candidates to US governorships.

  • Democrats said the donation meant Fox News had “crossed a bright line” regarding impartiality.
    “Fox can no longer pretend that it is a fair and balanced news organisation when Rupert Murdoch greenlights a million dollar contribution to defeat Democratic governors,” Democratic Governors Association executive director Nathan Daschle said.
    Media conglomerate News Corp, of which News America Inc is a subsidiary, defended the donation.
    “News Corporation has always believed in the power of free markets and organisations like the RGA, which have a pro-business agenda, [to] support our priorities at this most critical time for our economy,” the Associated Press quoted spokesman Jack Horner as saying.

    Source:BBC

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    Aug
    18

    American Ballet Theatre returns to Cuba

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    American Ballet Theatre returns to Cuba

    The American Ballet Theatre company is to perform in Cuba later this year for the first time in 50 years.
    Barack Obama's administration has given the troupe permission to dance at the Havana International Ballet Festival at the Karl Marx Theatre.
    Its last Cuban performance was at the inaugural event in 1960.
    While the general travel ban on US tourists remains, it is the latest sign of an easing of relations between the two former Cold War adversaries.
    On 3 and 4 November, the company will perform scenes from ballets including Alexei Ratmansky's Seven Sonatas and Fancy Free by Jerome Robbins.
    American Ballet executive director Rachel Moore, speaking at a Havana press conference to announce the tour, said: “I can't speak for the politics but I do believe that the arts are a tremendous bridge between communities.
    “Dance is an art form that doesn't require a knowledge of language,” she added.
    The BBC's Michael Voss, in Havana, said the tour almost had to be called off for financial reasons after Washington refused to allow the company's sponsors to support the tour.
    Cuban authorities stepped in and agreed to cover the dancers' accommodation and other expenses during the festival, he added.
    The company's last appearance at the festival came just a year after Fidel Castro's revolution.
    On Tuesday, US officials said the Obama administration was considering loosening travel restrictions to the communist island.
    It wants to ease restrictions on travel for US students, researchers and educators as well as for religious and cultural groups.
    But there are no plans to ease the 48-year US trade embargo against Cuba.

    Source:BBC

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    Aug
    18

    Erykah Badu fined for nude video shoot

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    Erykah Badu fined for nude video shoot

    US soul singer Erykah Badu has paid a 500 (322) fine and will serve six months probation for stripping naked on a Dallas street for a music video.
    The 39-year-old ended filming by re-enacting the moment when President John F Kennedy was shot dead in 1963 in the city.
    The Grammy award-winning singer was charged with disorderly conduct when tourists and visitors complained.
    A spokeswoman for the singer did not immediately comment.
    In March, the star performed a walking striptease as part of the video for Window Seat, before falling to the ground as if she has been shot.
    The filming took place at Dealey Plaza, the location where President Kennedy was assassinated.
    In April, Sgt Mitchell said that “people calling from all across the country to express their concern” about the making of the video.
    A Dallas city spokesman confirmed that Badu had paid the fine.

    Source:BBC

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    Aug
    18

    BHP Billiton launches hostile bid for Potash

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    BHP Billiton launches hostile bid for Potash

    Mining giant BHP Billiton has launched a 40bn (25.8bn) hostile takeover bid of Canadian firm Potash Corp after having had an initial offer rejected.
    On Tuesday, Potash, the world's largest fertiliser producer snubbed BHP's offer, saying it undervalued the firm.
    BHP has offered to buy Potash for 130 per share.
    Demand for fertiliser is expected to increase this year because of rising demand for meat in emerging markets, as more crops are needed to feed cattle.
    “The acquisition will accelerate BHP Billiton's entry into the fertiliser industry and is consistent with the company's strategy of becoming a leading global miner of potash,” BHP said in a statement.
    It added that its offer represented a 20% premium to Potash's closing share price on 11 August, the day before BHP's first approach to the company.
    In its offer document, BHP said the fertiliser industry was attractive because of increasing demand for food and a shift to higher protein diets.
    Potash Corp is the world's leading miner of potash – an agricultural fertiliser – and is responsible for about 20% of global capacity.
    On Tuesday, Potash said BHP's offer was “grossly inadequate” and “substantially undervalues” the company.

    Source:BBC

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    Aug
    18

    American Apparel warns about mounting debts and losses

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    American Apparel warns about mounting debts and losses

    The US clothing chain American Apparel has warned it might not be able to continue because of debts and trading losses.
    The Los Angeles based retailer said its debts had risen to 120.3m (77.2m).
    The firm said there was “substantial doubt that the company will be able to continue as a going concern”.
    Its share price fell 15% on Tuesday morning. The shares had already lost 55% of their value since the beginning of the year
    American Apparel, which has more than 280 stores worldwide, and 14 in the UK, warned of losses of up to 7m (4.5m) for the three months to June.
    The company says it expects its losses to continue throughout the third quarter of this year.
    The firm has also said it was likely to breach the terms of its agreement with its main lender, the private equity firm, Lion Capital.
    The company, which is known for its t-shirts and low-budget advertising style, has been involved in several controversies.
    Last year, US immigration inspectors ordered it to dismiss some 1,500 workers in Los Angeles because they did not have work documents.
    The company's auditors Deloitte resigned in July. A newly appointed auditor Marcum is completing a review of the accounts.
    The firm employs around 10,000 people.

    Source:BBC

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    Aug
    18

    Colombia declares US base share deal unconstitutional

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    Colombia declares US base share deal unconstitutional

    A Colombian court has declared as unconstitutional a deal which gave US troops access to its military bases.
    The constitutional court ruled the 2009 accord should be redrafted as an international treaty and sent to the Colombian Congress for approval.
    The plan allowed the US to use seven bases to help with operations against drug trafficking and terrorism.
    But it was criticised by other Latin American countries over a concern about the rise in US influence in the region.

  • The US was forced to look for a new centre for regional operations after Ecuador refused to renew the lease on its military base of Manta.
    The deal, passed by former President Alvaro Uribe in October 2009, gave the US access to the bases for 10 years and would see a maximum of 800 US military personnel and 600 civilian defence contractors based in Colombia.
    They would operate the US aircraft that maintain 24-hour monitoring of the region, intercepting communications and coordinating with spy satellites to protect US interests.
    But the court's chief justice Mauricio Gonzalez said the deal was “an arrangement which requires the State to take on new obligations as well as an extension of previous ones”.
    He said that as such, it should be “handled as an international treaty, that is, subject to congressional approval”.
    The court did not rule on the legitimacy of the agreement itself.
    The BBC's Latin America editor Warren Bull said the ruling is unlikely to generate a crisis in US-Colombia relations.
    The government of the new President Juan Manuel Santos has a large majority in Congress and he will be confident of getting a redrafted version of the agreement approved.

    Source:BBC

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    Aug
    18

    US judge drops piracy charges against six Somali men

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    US judge drops piracy charges against six Somali men

    A US federal judge in Virginia has thrown out piracy charges against six Somalis accused of attacking a US Navy ship last spring off the coast of Africa.
    Judge Raymond Jackson ruled the piracy charges should be dismissed because the group did not rob, board or take control of the USS Ashland.
    Prosecutors accuse the six of opening fire on the ship in the Gulf of Aden.
    The men still face seven other charges over the alleged 10 April attack.
    The piracy charges, which would have carried a minimum penalty of life in prison if proven, were brought under a nearly 200-year-old statute in a courtroom in Norfolk, Virginia.
    Prosecutors argued that any unauthorized armed attack or violent act on open waters should qualify as piracy.
    But the judge ruled that broader acts like these fell outside the charges.
    “The court finds that the government has failed to establish that any unauthorized acts of violence or aggression committed on the high seas constitutes piracy as defined by the law,” Judge Jackson said in his ruling.
    The US warship returned fire after the alleged attack, sank the group's small vessel, killed one man on board, and captured the others in the group, prosecutors said.
    The six Somali men have also been charged with conspiracy, assault with a dangerous weapon, attacking to plunder a vessel, and acts of violence against people on a vessel.
    Five Somali men have been accused separately in Virginia of an attack on the USS Nicholas on 1 April.
    All the men are being held until court proceedings continue this autumn.

    Source:BBC

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