Pakistan bomb kills 41

A suicide car bomber detonated his vehicle near a market in Pakistan's city of Peshawar on Friday, killing 41 people and underlining the militants' ability to strike major cities despite American-backed military offensives.

Associated Press
Published: 9:32AM BST 09 Oct 2009

Pakistani volunteers and bystanders shift an injured car bomb blast victim into an ambulance at a bomb blast site in Peshawar Photo: AFP/GETTY

The attack in the Khyber Bazaar area came as Pakistan's army prepares for another major operation in the al-Qaida and Taliban stronghold of South Waziristan tribal region. The militants have threatened bombings if the army doesn't back off, but the U.S. has continued to prod Pakistan to take action against insurgents using its soil to fuel the insurgency in neighboring Afghanistan.
Television footage showed the charred skeleton of a bus flipped on its side in the middle of a major road. Twisted remains of a motorbike lay alongside the bus. A nearby vehicle was in flames.
Noor Alam saw the vehicle explode, and suffered wounds on his legs and face.
"I saw a blood soaked leg landing close to me," Alam told The Associated Press at the overwhelmed Lady Reading hospital. "I understood for the first time in my life what a doomsday would look like."
Peshawar Police Chief Liaqat Ali Khan said the attacker was in a car packed with "a huge quantity of explosives and artillery rounds." A minibus apparently carrying passengers nearby was also leveled in the blast.
It came days after a suicide attack killed five at a U.N. office in the capital, Islamabad and two weeks after another explosion killed 11 in a Peshawar commercial area.
It was the deadliest attack in Pakistan since a suicide bomber demolished a packed mosque near the northwestern town of Jamrud in March, killing about 50.
Provincial Health Minister Syed Zahir Ali Shah said 41 people were killed and more than 100 wounded Friday.
"Death has to come one day, but we will keep chasing these terrorists, and this attack cannot deter our resolve," Provincial Information Minister Mian Iftikhar Hussain said as he visited the bloody scene.
Also Friday, Interior Minister Rehman Malik said a suspect had been arrested in Monday's suicide attack at the office of the U.N.'s World Food Program in Islamabad. Malik says the man was alleged to have given the attacker shelter, but gave few details.
Militants in Pakistan also have targeted trucks carrying supplies for U.S. and NATO forces in Afghanistan.
Early Friday, militants ambushed a tanker carrying fuel for the Western troops at a gas station near Peshawar, torching it, said Fazal Rabi, a police official. No injuries or deaths were reported.
The attacks come amid growing tensions between the U.S. and Pakistan over a multibillion-dollar U.S. aid package that is aimed at helping Pakistan's economy and other nonmilitary sectors.
Pakistan's army has raised concern over strings attached to the aid, bolstering critics who say it will invite U.S. interference.
The debate over the proposal also has exposed rifts between Pakistan's military and its weak civilian government.
The government has hailed the package, which would provide $1.5 billion a year over the next five years. But the measure, which awaits President Barack Obama's signature, makes U.S. aid contingent on whether Pakistan's government maintains effective control over the military, among other conditions.
The army, which has ruled Pakistan for around half its 62-year existence, raised "serious concern" over the conditions, while the government said nothing in it was against Pakistan's interests.

India in new anti-Maoist strategy

By Sunil Raman BBC News, Delhi

Maoists have a presence in more than 200 districts of India

The Indian government has agreed on a new tactic to fight Maoists who are operating in several states.

Officials say state police are to take the lead in co-ordinating operations against the Maoists, while central forces are only to lend assistance.
The decision came hours after at least 17 policemen were killed in a battle with Maoist insurgents in the western state of Maharashtra.
India says that Maoist insurgents pose its biggest security threat.
They operate in many states and say they are fighting for the rights of the poor and landless.
Remanded
Maoists have a presence in over 223 of India's 600-odd districts across 20 states, according to the government.
Around 70,000 central paramilitary troops along with elite commando and special forces will be deployed in the upcoming operation against the rebels.
The troops will be provided cover by the army and armoured air force helicopters.
A senior government official told the BBC that the operation is to be launched within weeks to "wipe out the top leadership" of the rebels and secure some 40,000 sq km of territory that is being held by them.
The government believes there are less than 20 top rebel leaders, nearly 30 commanders, and some 12,000 cadres.
A top Maoist leader recently told the BBC that their strength was "overestimated" by the government.
Areas under Maoist influence are poor and dominated by tribes people. But the areas are rich in mineral wealth which the Maoist says are being handed over to corporate firms while the poor remain deprived.

A massive security operation against the rebels will be launched soon

The government has come to the conclusion that development work can take place in the affected areas only after the rebels are defeated.
A recent statement by the Maoist leadership called upon its armed cadres to paralyse government functioning, attack and kill police and paramilitary soldiers and destabilise administrative functioning.
There have been over 1,400 cases related to violence by Maoists between January and August, according to official records. Nearly 600 civilians have died over that period.
In the latest attack on Thursday evening, a group of Maoists attacked a police station in Gadchiroli district in Maharashtra.
At least 17 policemen, including a top commander, were killed in the battle. It was not clear whether the rebels suffered any casualties.
Prime Minister Manmohan Singh told police chiefs last month that a campaign against the rebels had failed to produce results.
In September Kobad Ghandy, one of the Maoists' most senior leaders, was arrested in Delhi. A court in Delhi has remanded him in custody for another week.

Aug. trade deficit narrows unexpectedly to $30.7B

In this Aug. 12, 2009 photo, containers are shown stacked and ready for export at the Port of Long Beach, Calif. The U.S. trade deficit unexpectedly narrowed in August as exports posted a small gain and imports fell on a big drop in demand for foreign oil. (AP Photo/Nick Ut)

By MARTIN CRUTSINGER (AP) – 1 hour ago

WASHINGTON — The U.S. trade deficit unexpectedly narrowed in August as exports posted a small gain, while imports fell on a big drop in demand for foreign oil.
The Commerce Department said Friday that the trade deficit declined 3.5 percent to $30.7 billion, surprising economists who had expected higher oil prices to push the imbalance to $33 billion. Oil prices did shoot up, but the volume of shipments dropped sharply in August.
The continued rise in exports may be viewed as an encouraging sign that the global economy is starting to recover from a severe recession that began in the United States and quickly spread to other parts of the world.
For August, exports of goods and services edged up 0.2 percent to $28.2 billion, the fourth straight gain. The strength reflected higher sales of American farm products including soybeans and wheat, and increases in sales of autos and related parts, industrial engines and telecommunications equipment.
Through the first eight months of this year, the trade deficit is running at an annual rate of $357 billion, about half of last year's $695.9 billion imbalance. That huge decline reflects the recession that sharply dampened demand for imported goods.
Despite the August improvement, economists expect the deficit to rise in coming months on the back of a rebounding U.S. economy, which will start importing more foreign products. But that impact will be dampened somewhat by rising exports as American manufacturers benefit from a revival in the global economy.
The deficit with China dipped slightly to $20.2 billion, down 0.9 percent from July. Through August, the deficit with China totals $143.7 billion, down 15.1 percent from last year's record pace. Even with the small improvement, trade tensions have been rising between the two economic powers with China denouncing a move by the Obama administration last month to impose punitive tariffs on imports of Chinese tires.
Imports dropped 0.6 percent to $158.9 billion, reflecting a 5.7 fall in petroleum imports to $21 billion. A big decrease in the volume of shipments offset a sharp rise in prices. The average price of a barrel of imported crude oil rose to $64.75, up from $62.48 in July and the highest since last November.
The drop in oil imports in August offset a jump in foreign-made autos and parts, which rose 8.6 percent to $14.6 billion. Economists believe the government's Cash for Clunkers' sales incentives for buyers to trade in their old cars for more fuel efficient vehicles helped drive the increase.
Imports of autos and related parts had jumped even more in July, as plants owned by General Motors and Chrysler ramped up production. Those companies had curtailed operations in May and June as they struggled to emerge from bankruptcy protection.
Both companies, as well as foreign automakers with plants in the U.S., make use of foreign-made auto parts in their U.S. manufacturing operations.

Copyright © 2009 The Associated Press. All rights reserved.

Contest for Air Force refueling tanker contract again hits turbulence

An artist's rendering of a Northrop-Airbus tanker plane in action. Politicians and others have taken sides as Boeing and Northrop Grumman vie for the Air Force contract. (Associated Press / March 1, 2008)

When the U.S. Air Force recently launched its third attempt to award a $35-billion contract for aerial refueling tankers, Pentagon officials said the competition would be fair and transparent.

But it was only a matter of days before the process was under attack.

Interest groups, politicians and the contenders -- Boeing Co. and Northrop Grumman Corp. -- began blasting the way the bids were evaluated, prompting some defense industry analysts to question whether the Air Force would ever get its much-needed tankers.

"I don't see how either of these two companies walk away being the sole winner of the contract," said Loren Thompson, defense policy analyst for the Lexington Institute in Virginia. "The Pentagon says the competition will be objective, but that's going to be hard. It's a very complicated framework."

Handing out one of the largest military contracts in U.S. history hasn't been easy for the Pentagon. Twice it has held a competition to replace its fleet of 415 Eisenhower administration-era Air Force refueling tankers, and both times it has failed amid accusations of underhanded politics and discriminatory rule-making. The process first started in 2001.

The tankers, modified Boeing 707 passenger jets, have enabled the U.S. to project its military might all over the world because they can refuel bombers, fighters and cargo planes in midair.

Last month, the Pentagon unveiled the new criteria it would use to award the contract.

Just days later, Century City-based Northrop complained that the latest competition was flawed because its pricing information from the previous tanker bid was provided to Boeing by the government but it had not been given Boeing's pricing information.

"It is fundamentally unfair, and distorts any new competition, to provide such critical information to only one of the bidders," said Paul K. Meyer, Northrop's vice president and general manager of advanced technology and programs.

The Pentagon immediately fired back, saying that "it created no competitive disadvantage because the data in question are inaccurate, outdated and not germane to this source-selection strategy."

Then a collection of eight leaders from conservative groups went on the offensive for Chicago-based Boeing.

They collaborated on a letter that was sent to each member of Congress, asking them to factor in a recent World Trade Organization ruling that found that European Union governments illegally subsidized Airbus, whose parent company, European Aeronautic Defense & Space Co., is teamed with Northrop in the tanker contest.

"The illegal trade subsidies were specifically intended to enable Airbus to underbid its chief rival Boeing," said Kerri Toloczko, senior vice president for policy at the Institute for Liberty. "If the only way you can win is by cheating, what does it say about your team? I don't think the American taxpayer wants their hard-earned dollars going toward a company like that."

The latest scuttlebutt has added to the nearly decade-long controversy that the Pentagon had hoped would end when it awarded a contract last year.

Boeing won the first contract in 2004, but it fell apart because of an ethics scandal that resulted in prison terms for a former senior Boeing executive and a former high-ranking Air Force official.

The competition was relaunched and in 2008 Northrop took home the $35-billion contract to build 179 tankers based on a modified Airbus A330 passenger jet.

It was a huge upset since Boeing had built all of the tankers in the current fleet.

Northrop said the contract award would have created more than 7,500 jobs for California's struggling aerospace industry, even though the planes would be assembled in Alabama.

But the decision was overturned after the Government Accountability Office found that the Air Force mishandled the yearlong competition by failing to credit Boeing, which had offered a tanker based on its 767 airliner, for some of its plane's capabilities.

Defense Secretary Robert Gates was hoping to avoid similar problems, said James McAleese, a lawyer in McLean, Va., who specializes in defense contracts.

Justice Dept probing IBM's computer market conduct

By JORDAN ROBERTSON

The Associated Press
Thursday, October 8, 2009; 2:55 AM

SAN FRANCISCO -- The Justice Department is looking into allegations that IBM Corp. has abused its dominant position in the market for mainframe computers, the data-crunching heavy lifters of the computing world that IBM introduced in the 1960s and which are now used to process some of the most sensitive data in banking, government and health care.
The accusations stem from claims by IBM rivals that they've been illegally frozen out of the mainframe market because of IBM's refusal to allow its mainframe operating software to run on non-IBM computers. IBM doesn't have many rivals anymore that make mainframe computers, but some smaller companies are trying to develop technologies that would allow the software to run on cheaper hardware.
They allege that IBM, which used to license its mainframe software to competitors and for the back half of the last century operated under an antitrust agreement with the government, stopped doing so in recent years to choke off competition.
Known for their reliability, mainframes can cost $1 million or more each and are behind many everyday transactions. Withdrawing cash from an ATM, for example, often involves the ATM pinging a mainframe at the bank where the customer's data is stored to make sure there's enough money in the account.
The Computer and Communications Industry Association, an industry organization that complained to the Justice Department last month about IBM's behavior, said Wednesday the government has started examining its allegations by sending out formal requests for information about the mainframe market to IBM rivals.
"IBM will tell big customers that if you buy that other stuff, we're not going to let that stuff talk to our stuff," said Ed Black, CEO of the trade group. "We think of the Internet as open and innovative, but that's a lock 'em up and keep 'em locked up strategy. That's very unsatisfactory for the customer base."

One of the companies that received a request from the Justice Department was Tampa, Fla.-based T3 Technologies Inc., which in January lodged a formal complaint against IBM with European antitrust regulators and is suing IBM in the U.S. alleging antitrust abuses.
The company, a reseller of IBM mainframes from 1992 to 2002, says IBM has tried to thwart its expansion into making mainframes by denying it licenses for IBM's mainframe software, something done "for no reason other than to remove all competition from the mainframe market."
T3's president, Steven Friedman, didn't respond to messages from The Associated Press late Wednesday.
The Justice Department would not comment on a potential antitrust investigation.
In a statement, IBM pointed to a decision last week by a judge in the U.S. District Court for the Southern District of New York dismissing T3's complaint against IBM.
"We understand the Department of Justice has asked T3 for documents from the litigation," IBM said. "We continue to believe there is no merit to T3's claims, and that IBM is fully entitled to enforce our intellectual property rights and protect the investments that we have made in our technologies."

Alcoa announces surprise profit

Alcoa said demand for aluminium was now rising

The US aluminium-maker Alcoa has announced a surprise profit after three consecutive quarterly losses.

Analysts had expected another loss but the firm reported a net income of $77m (£48m) in the third quarter.
The result was better than the $454m loss it made in the previous quarter, but was still well below the $268m it made in the third quarter of 2008.
The company said it had benefited from an increase in aluminium prices and cost savings.
The price of aluminium has risen 16% to $1,890 per tonne in the last three months.
'Big improvement'
In the past year the company has been forced to cut jobs, sell parts of the business and reduce production after a fall in orders.
But Alcoa said global demand for aluminium was now on the increase.
"Due to low inventories at distributors and rising shipments, regional premiums are improving and global aluminium consumption is expected to increase 11% in the second half of 2009," the firm said in a statement.
"It's a pretty big improvement," said Brian Hicks from US Global Investors.
"The company has really streamlined itself during these softer economic times."
Alcoa is traditionally the first company in the Dow Jones industrial average to report quarterly earnings.
Its results are being watched closely for any sign of economic recovery.

Turned down for an auto loan? There are options

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To find out what vehicle you will qualify for, fill out the short application at www.car.com, and start improving your credit.

Copyright © 2007, ARAnet, inc.

Sponsored content provided by ARALifestyle. Copyright ARAnet, Inc.

The secret to getting highly discounted cruise tickets

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New Presidential Helicopter Plan Could Cost More

By WBNG News

Story Created: Oct 7, 2009 at 11:44 AM EDT
Story Updated: Oct 7, 2009 at 6:16 PM EDT

Scrapping Lockheed's VH-71 Helicopter contract for another plan could end up costing more time and money.

That's according to an internal navy document Congressman Maurice Hinchey discovered.
The Democrat says it shows a new replacement plan will cost triple and also take years longer than Lockheed's initial contract.
Hinchey says the Pentagon's plan to scrap Lockheed's helicopters and buy a new fleet would cost of up to $22 billion, and won't be ready until 2024.
A Navy spokesman could not immediately be reached for comment.
The government spent close to $3.2 billion on Lockheed's project before Defense Secretary Robert Gates killed it for being behind schedule and over budget.
Gates said the project no longer met White House requirements.

Two killed and thousands without power as Typhoon Melor batters Japan

A powerful typhoon has torn through Japan's main island today, cutting off electricity to hundreds of thousands of people, ripping off roofs and forcing the cancellation of flights.
Two men have been killed and at least 30 people injured after Typhoon Melor struck, flooding roads and homes, toppling trees and causing heavy damage to some buildings.
More than 11,000 people have been evacuated to shelters, according to the Fire and Disaster Management Agency.

Storm force: Large waves caused by Typhoon Melor break over defences near Shizuoka City. Two men have been killed and thousands are without power

One of the men was killed when his motorbike slammed into a downed tree in the coastal area of Wakayama, and another died when he was hit by a falling tree north of Tokyo, police said.

More...

• Six earthquakes in just 24 hours rock Pacific islands, Philippines and California

The storm smashed walls and windows and overturned large trucks on major roads as it moved north east.
News broadcasts showed partially submerged cars, bridges destroyed by flooding and shipping containers scattered by powerful winds.

Damage: A lorry is overturned by winds, which gusted up to 100mph, on a coastal highway near Toyohashi City

Cut-off: Workmen attempt to repair overhead power lines in Tsuchiura City. Thousands of people are without power because of the storm

Flooding: Waves batter the coast near Shirahama town with up to 20 inches expected to fall by the end of today

Electricity is gradually being restored to more than 500,000 homes which had been cut off by the typhoon, according to Japan's power companies.
In Tokyo, train operators delayed or cancelled services on all lines, stranding workers across the city during the busy morning rush hour.
Around 2.3 million commuters were affected, with some forced to leave trains between stations.

Commuter chaos: One woman shelters under her umbrella as heavy rain hits Tokyo and, right, another woman battles with her umbrella during the high winds

Two teenagers enjoy a joke as the typhoon turns their umbrellas inside out

The country's major airlines said at least 400 domestic flights and 20 international flights had been canceled due to the storm.
Some coastal highways were closed and news footage showed large waves crashing over storm barriers on to roads.
Typhoon Melor, with winds gusting up to 100mph, gradually moved north of Tokyo through Fukushima and is expected to veer off the eastern Japan coast later today.

Bikes are strewn across the pavement after the high winds in Nagoya and, right, a satellite image shows Typhoon Melor as it hits Japan

Powerful: A Japanese fisherman runs for safety after a high wave strikes a break water in Ohara

Read more: http://www.dailymail.co.uk/news/worldnews/article-1218959/Two-killed-thousands-power-Typhoon-Melor-batters-Japan.html#ixzz0TL1P7IOH

Indian Embassy in Kabul bombed for second time in one year

An Afghan policeman stands guard at the site of a suicide car bomb explosion near the Indian Embassy in Kabul Photo: AFP

Afghan policemen secure the site of a bomb blast outside the Indian embassy in Kabul Photo: REUTERS

Early reports said three people had died in the attack, but the toll was expected to rise.
Reports from the ground said two sporty utility vehicles, one with UN signage, had been badly damaged in the blast.

The centre of the blast appeared to be just outside the Indian embassy. Windows in surrounding shops were shattered.
Police officers on the site said they believed it was the work of a suicide bomber, but did not provide further details.
Spokesmen for the US and NATO said they did not yet have any information on the explosion.
The Indian Embassy was targeted last year. At the time, the US claimed elements within Pakistan's ISI intelligence agency had been involved in the plot.
India, which has poured millions of dollars into the rebuilding of Afghanistan, recently reaffirmed its committment to the country.
The Afghan capital has been hit numerous times in recent months by suicide bombers and roadside bombs. The attacks usually target international military forces or government installations, but Afghan businesses and civilians are also often killed or injured.
In the most recent attack in mid-September, a suicide car bomber rammed into an Italian military convoy on a road leading to the airport. That blast killed six Italian soldiers and 10 Afghan civilians.

Gold hits record high

Weaker U.S. dollar sparks interest in precious metals, prices rise to $1,036.60 (U.S.) an ounceGold (GC-FT1,044.6026.802.63%) rallied to an all-time high on Tuesday as a report that Gulf Arab states were considering pricing oil in a currency other than the U.S. dollar knocked the U.S. unit, boosting interest in the metal as an alternative asset.

A small seasonal increase in demand for physical gold is also supporting prices, traders said.

Gold prices hit a record high of 1,036.60 dollars an ounce.

Peter Fertig, a consultant at Quantitative Commodity Research, said the final quarter was typically strong for gold, due to rising jewellery demand – a weaker than usual factor this year – and as the dollar is seasonally soft.

“That is the major driver of investment demand,” he said.

“The speculation, even if it has been denied, that Gulf states would like to peg oil prices to a currency basket and not the U.S. dollar alone has been a positive factor for gold, while weakening the dollar against other major currencies.”

The dollar slipped sharply in Asian trade after UK newspaper the Independent said Gulf Arab states were in secret discussions to end the use of dollars in oil trading.

The newspaper said the states were in talks with Russia, China, Japan and France to replace the unit with a basket of currencies. The dollar pared losses after the report was denied by Saudi and Russian authorities, but stayed weak.

Dollar weakness, if sustained, could push gold prices to new all-time highs above $1,030.80, the peak they hit in March last year, analysts said.

“The ability of gold to climb back over $1,000 is, in our opinion, impressive,” HSBC analyst Jim Steel said in a note.

“If the dollar remains subject to gradual erosion and commodity prices remain firm.... then gold is likely to remain well-bid and may challenge all-time highs.”

Among other commodities, oil and base metals climbed on the back of the U.S. currency weakness, which makes dollar-priced assets cheaper for holders of other currencies. Strength in other commodities is often reflected in gold.

Physical demand for the metal also trickled through. The largest gold exchange-traded fund, New York's SPDR Gold Trust, said its holdings rose 1.5 tonnes on Monday.

Traders say they are also seeing rising demand in major gold consumer India ahead of the Diwali festival on Oct. 17.

Boeing sees $1 Billion 3rd-quarter charge

The Associated Press
Tuesday, October 6, 2009; 9:57 AM

CHICAGO -- Boeing said Tuesday it expects to record a charge of $1 billion in the third quarter due to higher costs in its 747-8 program and difficult market conditions.

Last year, the company said it was delaying deliveries of the 747-8 freighter and passenger jets due to design changes, limited engineering resources and a strike that shut down the company's commercial jet factories for eight weeks.

About $640 million of the charge reflects higher estimated costs to produce 747-8 airplanes at Boeing and its suppliers, Boeing said. Higher fixed expenses and volume-based penalties to suppliers are the main drivers of the additional costs, Boeing said.

Euro zone economy dips 0.2%

For the 27 EU nations as a whole, second-quarter growth slid by 0.3 per cent compared with the first quarter, revised from 0.2 per cent in the September forecast. -- PHOTO: AP

BRUSSELS - SECOND quarter growth in the 16-nation euro zone fell by 0.2 per cent compared to the first quarter of 2009, Eurostat, the EU statistics office reported Wednesday.
The figure revises its previous estimate, issued in early September, of a drop of 0.1 per cent.
For the 27 EU nations as a whole, second-quarter growth slid by 0.3 per cent compared with the first quarter, revised from 0.2 per cent in the September forecast. -- AP

Costco 4th-quarter profit slips partly on stronger dollar, but tops analysts' estimates

By THE ASSOCIATED PRESS (CP) – 1 hour ago

ISSAQUAH, Wash. — Costco Wholesale Corp. said Wednesday that its fiscal fourth-quarter profit fell 6 per cent, partly on the stronger dollar and increased employee benefit costs, but results beat analysts' estimates.

The warehouse club operator earned US $374 million, or 85 cents per share, for the quarter ended Aug. 30. That's down from $398 million, or 90 cents per share, a year earlier.

Still, the performance was enough to top the 77 cents-per-share forecast of analysts polled by Thomson Reuters. Analysts' estimates generally exclude one-time items.

Revenue slipped 3 per cent to $22.38 billion from $23.1 billion, but surpassed Wall Street's $22.34 billion sales estimate.

Sales at stores open at least a year dropped 5 per cent in the quarter, with a 6 per cent decline in the U.S. and a 3 per cent dropoff internationally. Removing the effect of the stronger dollar and lower gas prices, sales at stores open at least a year edged up 1 per cent.

These figures are considered a key indicator of a retailer's performance because they measure growth at existing stores, rather than newly opened ones.

Issaquah-based Costco has managed to pull in budget-conscious shoppers during the recession with deals on food and everyday items but has been hurt by a pullback in spending on big-ticket items like jewelry and furniture.

For the year, net income slipped 15 per cent to $1.09 billion, or $2.47 per share, compared with $1.28 billion, or $2.89 per share.

Annual sales dipped 2 per cent to $71.42 billion from $72.48 billion.

Costco currently runs 560 warehouses, including 407 in the U.S. and Puerto Rico, 77 in Canada, 32 in Mexico, 21 in the U.K., seven in Korea, six in Taiwan, nine in Japan, and one in Australia.

Turkish police battle IMF protesters in Istanbul

Turkish police used water cannon, tear gas and pepper spray today to disperse hundreds of demonstrators protesting against the annual meetings of the International Monetary Fund and World Bank.

Masked protesters shattered the windows of a McDonald’s restaurant and banks and damaged vehicles as they ran into the streets behind Istanbul's landmark Taksim Square, which is less than half a mile from the complex where the financiers are meeting.

Thousands of police wearing gas masks and protective gear erected barriers around the venue and detained dozens of protesters – mostly members of small leftwing parties or labour unions. CNN-Turk television said that some foreign protesters were also involved.

Clouds of tear gas filled the air above Taksim Square while firefighters battled a blaze apparently set by protesters. Passers-by and reporters were also affected by the tear gas. Police helicopters hovered above the crowds. From Times Online
October 6, 2009
Turkish police battle IMF protesters in Istanbul
Leftist protesters clash with Turkish riot police in central IstanbulFrom Times Online
October 6, 2009
Turkish police battle IMF protesters in Istanbul
Leftist protesters clash with Turkish riot police in central IstanbulFrom Times Online
October 6, 2009
Turkish police battle IMF protesters in Istanbul
Leftist protesters clash with Turkish riot police in central IstanbulAlong the famous tourist route of Istiklal Street, shop owners pulled down their shutters and customers hid inside, deserting a once-busy thoroughfare.

Security has been tight at the International Congress Centre since the meetings began last week with armed police and large groups of security guards highly visible, but the policing was stepped up dramatically today even before any trouble flared.

At the main entrance to Taksim Square, large contingents of blue-uniformed police carrying gas masks, riot shields and weapons gathered since early this morning. Many wore body armour.

Before the violence flared three female protesters had managed to get within a few yards of the main entrance, mingling with the thousands of bankers and officials entering the complex.

As soon as they began to chant in protest, they were surrounded by both uniformed and plain-clothed officers who grabbed them, clamped hands to their mouths and frogmarched them to a police van with blacked-out windows.

At the back entrance to the congress centre – a mass of new buildings and roadways spread over a wide hillside area and surrounded by high temporary fencing – four dozen uniformed police marched in, many wearing helmets and carrying riot shields. A helicopter hovered overhead.

Delegates walking into the conference have to pass through two airport-style metal detector doorways and have their bags checked. Similar arrangements are in place in the vestibules of the main hotels where delegates and bankers are staying.

Turkey and the International Monetary Fund are engaged in slow-moving talks about a new loan deal that could boost investor confidence, but Turkey has been reluctant to cut spending and implement austerity measures.

Last week, a student journalist hurled a shoe at Dominique Strauss-Kahn as the IMF director answered questions at a university in Istanbul. The shoe missed its target.

Family Dollar Likely To Post Improved Q4 Numbers

(RTTNews) - Discount retail chain Family Dollar Inc. (FDO: News ) is slated to release its fourth-quarter earnings results before the market opens today. The Charlotte, North Carolina-based company, which has been benefiting from the recession as penny-pinching consumers flock to discount stores for necessities, currently expects earnings for the fourth quarter to be between $0.39 and $0.43 per share.

On average, 22 analysts surveyed by Thomson Reuters expect earnings of $0.41 per share for the quarter, with estimates ranging between $0.39 and $0.44 per share. Analysts' estimates typically exclude special items. The company recorded net income of $53.2 million or $0.38 per share in the year-earlier quarter.

In September, Family Dollar reported that fourth-quarter comparable store sales increased 1% and net sales grew 2.6% to about $1.811 billion from $1.766 billion a year ago, while analysts expected revenues of $1.81 billion. As per its initial fourth-quarter forecast, the company had projected net sales growth of 4% - 6% and comparable store sales increase of 2% - 4%.

While announcing the quarterly sales results, Howard Levine, Family Dollar Chairman and Chief Executive Officer, stated, "As expected, our fourth quarter sales results were impacted as we anniversaried the effect of last year's stimulus package. In addition, this quarter we continued our aggressive pace of investments, and re-aligned space in approximately half our chain. Although the repositioning of categories to create better merchandise adjacencies and expand our selection of consumables resulted in some temporary disruption, customers are responding well to the improved shopping experience. We are pleased with the progress we have made and believe that these changes position us well for continued growth in fiscal 2010."

Oil steadies near $70, eyes on U.S. manufacturing data

PERTH (Reuters) - Oil was little changed at just below $70 on Monday, pausing from the previous session's losses, as concerns about a halting U.S. economic recovery and sluggish energy demand continued to cast a pall on crude prices.
Oil prices fell more than 1 percent on Friday as doubts over an economic recovery resurfaced after data showed the U.S. unemployment rate had soared to a 26-year high.
U.S. crude for November delivery dipped 3 cents to $69.92 a barrel by 0226 GMT. The contract settled down 87 cents at $69.95 a barrel on Friday.
London Brent crude inched down 2 cents to $68.09.
"The market is cautious after the poor U.S. jobs data on Friday. But the overall trend of an economic recovery hasn't changed and I think investors are using such weaker-than-expected data as an opportunity to take profits," said Ben Westmore, a commodities analyst at the National Bank of Australia.
U.S. employers cut a deeper-than-expected 263,000 jobs in September, lifting the unemployment rate to 9.8 percent, the highest since June 1983. The Labor Department said payrolls had now dropped for 21 consecutive months.
Analysts said a further decline in the U.S. dollar could lift oil prices, while all eyes will be the U.S. manufacturing data for September due later on Monday.
The U.S. service sector is thought to have been on the verge of growth in September after 11 months of contraction, according to a Reuters' poll of economists.
The U.S. dollar index .DXY fell 0.28 percent against a basket of currencies to 76.79 points on Monday, amid expectations that U.S. interest rates will stay near zero for some time.
With a thin economic calendar in the United States, the oil price is likely to take its cue from equities markets, leading some analysts to caution that it could hit more speed bumps this week if the start of the third-quarter earnings season provides little evidence the economic recovery is gaining strength.
Oil gained nearly 6 percent last week, largely bolstered by a U.S. government report mid-week showing a surprise drop in gasoline inventories as well as tensions between key oil exporter Iran and the West over Tehran's nuclear program.
However, analysts said, crude prices are likely to lose some support from geopolitical tensions, after Iran and the U.S. described recent talks as productive, with Iran allowing inspectors from United Nations into a uranium enrichment plant.
Still, crude prices are still trading in the $65-$75 range of seen over the past two months and some analysts said prices are unlikely to break out of the $75 mark until energy demand worldwide start to show more convincing signs of a rebound.
The amount of crude oil held at sea on tankers is likely to fall as consumption grows in the fourth quarter, the chief executive of the world's biggest independent oil tanker group Frontline (FRO.OL) said on Friday.
Money managers cut net long crude oil positions on the New York Mercantile Exchange in the week to September 29, the Commodity Futures Trading Commission said in a report on Friday.
(Reporting by Fayen Wong; Editing by Clarence Fernandez)

IMF backing for Bank could signal more quantitative easing

• Britain's credit system needs 'continuing support'
• MPC member says policy is helping thoughout economy

The International Monetary Fund has warned that the UK's economic recovery will be muted. Photograph: Matthew Cavanaugh/EPA

The International Monetary Fund today gave the all-clear for the Bank of England to step up its electronic money-creation programme as a leading Threadneedle Street policy maker said the benefits of "quantitative easing" were being felt in factories and high streets across the UK.
On the day that the fund used its half-yearly health check of global financial conditions to warn that a dearth of credit risked derailing Britain's economic recovery, professor David Miles said the use of QE to offset weak bank lending was having "significant effects".
Miles said: "QE is having an impact and that is relevant to economic conditions right across the country". He said it was being felt not only in London financial markets but "in high streets and factories and homes throughout the country".
Miles, one of the nine members of the Bank's monetary policy committee, said it was hard to assess how many gilts the authorities would need to buy to boost spending in the economy.
The central bank is ramping up its purchases of assets to £175bn. Although Bank governor Mervyn King and Miles wanted last month to increase the programme to £200bn, they were outvoted by a majority of their colleagues on the MPC, who opted for the lower figure.
Most economists think quantitative easing has helped to stabilise the economy as well as to push down gilt yields and thereby borrowing costs across the economy, aiding a fledgling recovery. Commercial bank lending to households and businesses remains frozen, although QE was not designed to increase bank lending as such.
Miles's remarks came as the IMF's Global Financial Stability Report noted that the UK was particularly vulnerable to credit constraints caused by the weakness of bank lending and by the need to finance the government's rapidly rising deficit.
Over 2009 and 2010, the fund estimates the UK will have a funding gap totalling £430bn. At 15% of GDP that is much higher than the 2.4% projected for the United States and the 3% for the eurozone.
"The UK appears most susceptible to credit constraints … given its significant reliance on the banking channel and the projected sharp decline in domestic bank balance sheets, as well as substantial public financing needs."
José Viñals, the IMF's financial counsellor, said there was "significant tension" in the UK between the credit needed to sustain recovery and the current supply. "Either there is continuing support on the part of the authorities to underpin the credit process or there would be high lending interest rates or credit would be constrained," he said.
Although his comments do not amount to an explicit call for more QE, they do indicate the IMF would not stand in the way of an enhanced programme.
The stability report said the UK's reliance on foreign investors to finance the budget deficit made it vulnerable.
"The recent "Evidence of increasing home bias among investors poses a particular risk to interest rates in the US and UK as they seek to finance large deficits."
For the first time since the financial crisis began in August 2007, the Fund cut its estimate of the write-downs facing banks and other financial institutions. In the spring it predicted a $4tn bill (£2.5tn) but has now pared this back to $3.4tn.
It said the financial sector was only halfway through the write-down process, with American banks further advanced than those in Europe. US banks have recognised 60% of anticipated losses against 40% for banks in Britain and the eurozone.
Nevertheless, Viñals said, the world economy appeared to be on the mend.
"Over a year has now passed since the Lehman Brothers bankruptcy prompted a potential global financial meltdown. Fortunately, the situation is very different today due to unprecedented policy actions and the overall improvement in economic conditions. We are on the road to recovery, but this does not mean that risks have disappeared."
Despite the rally in stockmarkets and an easing in the price of credit in recent months, the IMF said it was too early to claim that the crisis was finally over.
"The risk of a re-intensification of the adverse feedback loop between the real and financial sectors remains significant as long as banks remain under strain and households and financial institutions need to reduce leverage."

Iran has questions to answer after ‘secret annexe’ and Qom revelations

Revelations about the contents of the so-called “secret annexe” change little in diplomatic efforts to force a halt to Iran’s nuclear programme. But they do give an insight into some of the questions that Iran must answer if it is to dispel well-founded suspicions that it is, at the very least, putting in place the facilities and expertise to build itself a nuclear bomb.
Iran’s next international appointment is on October 19, when it meets with nuclear officials from the US, Russia and France to discuss a deal to transfer overseas almost 90 per cent of its known stockpile of enriched uranium for reprocessing.
That agreement, struck in Geneva, will allay temporarily fears that Tehran could divert nuclear fuel to a weapons programme. The catch, of course, is whether it has secret stockpiles elsewhere.
On October 25, inspectors will travel to the Republican Guard base near Qom to examine the recently unveiled enrichment plant. What they find could prove crucial to how the world then deals with Tehran. Western powers believe that the site is part of a military nuclear programme, a belief bolstered by its size, clandestine nature and location on a heavily guarded base.

Why inspectors must wait three weeks to see it remains unclear and may fuel suspicions about a “clean-up” ahead of the visit. Given that the site is far from operational, the inspection may prove inconclusive.
Before October is out, another round of talks is planned with Iran. The E3 plus 3 (Germany, France, Britain, China, Russia and the US) will be looking for evidence that Tehran is truly co-operating.
Iran’s behaviour in Geneva last week was encouraging but is still far short of the enrichment freeze that is being demanded if no new sanctions are to be imposed.
Tehran has until the end of the year to decide how far it is prepared to go.

EU Warns American Airlines, British Airways, Iberia of Antitrust Concerns

The commission said the alliance “may be in breach of European rules on restrictive business practices”. Photo by BGNES

The EC has sent antitrust complaints to American Airlines, British Airways, and Spain's Iberia regarding a proposed trans-Atlantic alliance.
The European Commission, the EU’s antitrust authority, said in a statement today that the airlines received so-called statements of objections in relation to their planned agreement on coordinating commercial, operational and marketing activities on trans-Atlantic routes.
The commission said the alliance “may be in breach of European rules on restrictive business practices.”
American, British Airways and Iberia are seeking antitrust clearance to cooperate on flights between the US, Mexico and Canada and the EU, Switzerland and Norway. The carriers requested the immunity last year.
British Airways and American are seeking approval for the third time, saying it’s needed for their Oneworld partnership to compete against the Star Alliance and SkyTeam groups. The carriers last scrapped a plan in 2002 after US regulators signaled they would require some flights to be surrendered to competitors.