News & Current Affairs

July 19, 2009

Sink or swim in modern China

Sink or swim in modern China

Chris Hogg heads to the small Chinese village of Zhushanxia, 200km from Shanghai, to see how lives have been shaped by the economy under communist rule, the recession and the country’s economic recovery.

A farmer sells vegetables at a wholesale market on March 22, 2005 in Hefei of Anhui Province, China

China’s economic roller-coaster has divided communities and villages into those who have sunk financially, and those who managed to swim

Huang Jiao Ling lives at the end of a long dusty road.

Mobile phone numbers are daubed all over the walls of her home and those of her neighbours.

It is like a strange kind of mathematical graffiti, but the numbers are, in fact, advertisements for people offering goods and services.

In modern China, it seems everyone has something to sell.

Huang Jiao Ling, too, is an entrepreneur. She is in her 50s, but she looks younger.

In her front garden, where others might have planted vegetables, she has built a small workshop.

Inside, the walls are unfinished and the floor uneven, but there is just about enough room for a work-bench and a handful of basic machine tools.

Churning out widgets

On the floor are cardboard boxes filled with piles of tiny metal widgets.

They are simple to make – her husband sits at the bench turning them out rapidly by hand.

Fruit seller in China

Many Chinese run their own small businesses in order to get ahead

A few feet away, his bicycle-taxi is parked just inside the front door of the house.

The machine work is a lot less tiring than pedalling passengers around, but he still keeps the bike.

It is useful, he says, to supplement their income in leaner times.

The Huangs sell the boxes of widgets to the factory where Huang Jiao Ling has a full-time job.

For a while this year they had to shut the workshop as demand dropped, but now the machines are humming again.

They have two children, because if you live in the country and your first child is a girl, you are allowed to have another one.

The girls go to very good schools, the best Huang Jiao Ling can afford.

She spends more than half her income on school fees.

“We have to think of their future,” she tells me.

“It’s a Chinese tradition. Parents always think of their children, and when the parents get old, their children will look after them. It’s the same for every generation.”

Yu Feng Guo is Huang Jiao Ling’s brother-in-law.

She is doing well for herself in China’s new modern market economy, but he has been left behind.

He used to work in a state-owned brick factory.

Different lifestyles

When the economic reforms began 30 years ago he watched as some of his co-workers left their jobs to start up their own small businesses, many of them selling prawns or fish by the side of the road.

He decided to do what he thought was the right thing, what the communist party would expect of a loyal worker in a state-owned enterprise – he stayed.

Eventually, the brick factory went bust and he was out of a job.

Rice paddy field

Agriculture provides an income for many rural Chinese

Now, dressed in a shabby khaki jacket, he works as a security guard in an open-air food market.

Those early entrepreneurs who had left his factory to try their luck in the fledgling market economy are now much richer than him and to his family this seems unfair.

“Thirty years ago everyone in the village was poor,” his son tells me.

“Now the difference in lifestyle between the rich and the poor in our village is huge.”

There is an implicit bargain in modern Chinese society between the leaders and the led.

Beijing tells its people “we will give you opportunities” – to earn more, to enjoy a better standard of living than your parents did.

But you, in return, will behave yourself.

Back on track

In Zhushanxia village quite a few cars can be seen bumping along past the fields, something you would not have seen 30 years ago.

If you have got used to having more, whether it’s a car, or a bigger house, or a more expensive school for your child, you have more to lose when times get tough.

That is why it is so important for the government to get the economy back on track.

When it first faltered, when factories started laying off workers, there was a risk that they would start to feel the government was no longer keeping to its side of the deal, so why should they?

So in Beijing, of course, there will be relief that a recovery appears to be under way.

But the next challenge for the government will be to do more to try to ensure that everyone shares the benefits.

Huang Jiao Ling is happy her workshop is busy again, but still nervous about the future.

So she, like most other Chinese, is saving as much of her income as she can.

Her brother-in-law Yu Feng Guo, has no idea how he will be able to save enough to secure a state pension on his meagre wages from his unstable job.

He and others like him will be looking to their leaders for reassurance that they will be cared for as they approach old age.

But that will costly and complicated. Fixing the economy may prove to have been the easy part.

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July 17, 2009

Fatal blasts hit Jakarta hotels

Fatal blasts hit Jakarta hotels

At least nine people have been killed, including two suspected suicide bombers, in two blasts at luxury hotels in the Indonesian capital Jakarta.

One explosion hit the Ritz-Carlton, ripping off its facade, and the other the JW Marriott. As many as 50 people were hurt, including many foreigners.

At least one attacker was a guest at the JW Marriott, police said.

President Susilo Bambang Yudhoyono has visited the scene and condemned “the cruel and inhuman attack”.

No group has yet claimed responsibility for the blasts. One foreign national has been confirmed dead – a New Zealander.

Indonesia suffered a number of bomb attacks – mainly linked to the militant group Jemaah Islamiah – in the first years of the century, but has since been praised for its campaigns against militants.

‘Barbaric’

President Yudhoyono said Friday’s attacks were carried out by a suspected terrorist group, though he said it was “too early to say” if Jemaah Islamiah was involved.

He added: “Those who carried out this attack and those who planned it will be arrested and tried according to the law.

I heard two sounds like ‘boom, boom’ coming from the Marriott and the Ritz-Carlton – then I saw people running out
Eko Susanto, security guard

“This act of terrorism… will have wide effects on our economy, trade, tourism and image in the eyes of the world.”

The attacks, with homemade bombs, were on the basement car park of the Marriott and a restaurant in the Ritz-Carlton, police said.

Police said that two suicide bombers were involved, and at least one attacker, and possibly more, was staying at the Marriott.

An unexploded bomb and other explosives material were found in room 1808, which officials said was the “control centre” of the attacks.

National police spokesman Nanan Soekarna said: “We still don’t know who booked room 1808.”

Gen Wahyono said a suicide bomber was suspected of carrying out the car park attack as a severed head was found there.

AT THE SCENE
Karishma Vaswani
Karishma Vaswani,Courtesy
BBC News, Jakarta

It was a scene of confusion and chaos outside the Ritz Carlton and JW Marriott hotels this morning. Ambulances and security forces arriving at the hotels came to rescue the injured and treat anyone who was hurt.

People milled around outside, onlookers wondering what had happened as hotel staff and guests stood around shocked on the streets. The blasts took place at breakfast time in one of the most prestigious areas in Jakarta’s commercial centre.

Many Indonesians we spoke to this morning told us how shocked and upset they were by what had happened here today and how worried they are about the damage this will do to the reputation of their country.

New Zealand’s Prime Minister John Key confirmed a New Zealand national was among the dead.

Reuters news agency named him as Tim Mackay, president director of PT Holcim Indonesia, quoting the company’s marketing director Patrick Walser.

Australian Prime Minister Kevin Rudd condemned the attacks as “barbaric”.

He said he had “grave concerns” for an embassy official and two other missing Australians.

US Secretary of State Hillary Clinton said they were “senseless” and that the threat of terrorism remained “very real”.

The Manchester United football team was due to arrive in Indonesia on Saturday and was booked to stay at the Ritz-Carlton.

The team have now called off the Indonesian leg of their tour, saying they “cannot fulfil the fixture in Jakarta” against an Indonesia Super League XI on 20 July.

The two blasts, in Jakarta’s central business district, occurred at about 0730 (0030 GMT).

INDONESIA ATTACKS
Dec 2000 – Church bombings kill 19
Oct 2002 – Bali attacks kill 202, many Australian
Dec 2002 – Sulawesi McDonalds blast kills three
Aug 2003 – Jakarta Marriott Hotel bomb kills 12
Sept 2004 – Bomb outside Australian embassy in Jakarta
Sept 2005: Suicide attacks in Bali leave 23 dead, including bombers

Businessman Geoffrey Head, who was in the Ritz Carlton, told the BBC he did not hear the blast but that his colleagues had called him after it happened to tell him to leave the building.

“I looked out of the window – I could see down to ground level and I saw there was a lot of broken glass. I thought it was time to actually get out.”

Mr Head said there had been no warning to evacuate the building.

“The surreal thing was going down in the elevator and walking through the lobby and looking across to my left and noticing the cafe was completely blown out,” he said.

A 50-year-old South Korean man, Cho In-sang, was taken to hospital with minor injuries.

“I don’t remember exactly but suddenly the ceiling is falling down and the sound was big,” he said.

Anti-terror training

Consular staff are trying to track their nationals, and Australia issued a warning against unnecessary travel to Indonesia.

The attacks come just weeks after the peaceful presidential elections.

The country of 240 million people has been praised in recent years for maintaining a pluralist democracy while finding and punishing radical Islamists responsible for a series of bombings more than five years ago.

Attacks on two nightclubs in Bali in October 2002 killed 202 people, most of them Australian.

The Marriott Hotel was the target of a bomb attack in August 2003 in which 13 people were killed.

Since then, a combination of new laws, anti-terror training, international cooperation and reintegration measures have kept Indonesia peaceful, analysts have said.

Jakarta map


Are you in the area? You can send us your comments and experiences

US firm averts French explosion

Filed under: Business News, Entertainment News, Latest, Politics News — Tags: , , , , , , , , , , , , , — expressyoureself @ 6:15 pm

US firm averts French explosion

Gas bottles have been placed around the New Fabris site

A threat to blow up another French factory has not been defused

A US construction equipment firm has agreed to pay extra compensation to French workers who had threatened to explode gas canisters at their plant.

Staff at JLG Industries in Tonneins, south-western France, made the threat in order to get better redundancy terms for 53 workers.

It is the third such incident in which workers have threatened violence against employers.

Elsewhere, French workers have taken managers hostage in “boss-nappings”.

The French Employment Minister, Laurent Wauquiez, described the tactics as “blackmail”.

In the JLG deal, the 53 affected workers were each guaranteed 30,000 euros (£26,000; $42,000) in severance pay.

JLG Industries is a subsidiary of the US company Oshkosh, which makes cranes and work platforms.

Meanwhile, a tense stand-off continues at the bankrupt New Fabris car plant in Chatellerault, south-west of Paris, where workers have also made a threat to blow up the factory.

They have given a 31 July deadline for Renault and Peugeot, which provided 90% of the plant’s work, to pay them 30,000 euros each.

Renault and PSA Peugeot said it was not their responsibility to pay workers.

The BBC’s Emma Jane Kirby in Paris says there is an acute sense of injustice in France at the moment, with many workers complaining that while their bosses continue to reap company benefits and bonuses, they are paying for this economic crisis with their jobs.

Wikipedia painting row escalates

Wikipedia painting row escalates

Georgina Spencer, Duchess of Devonshire ascribed to Sir Joshua Reynolds, circa 1759-1761. © National Portrait Gallery

Work by Sir Joshua Reynolds was among those uploaded to Wikipedia

The battle over Wikipedia’s use of images from a British art gallery’s website has intensified.

The online encyclopaedia has accused the National Portrait Gallery (NPG) of betraying its public service mission.

But the gallery has said it needs to recoup the £1m cost of its digitisation programme and claims Wikipedia has misrepresented its position.

The NPG is threatening legal action after 3,300 images from its website were uploaded to Wikipedia.

The high-resolution images were uploaded by Wikipedia volunteer David Coetzee.

Now Erik Moeller, the deputy director of the Wikimedia Foundation which runs the online encyclopaedia, has laid out the organisation’s stance in a blog post.

‘Empire building’

He said most observers would think the two sides should be “allies not adversaries” and that museums and other cultural institutions should not pursue extra revenue at the expense of limiting public access to their material.

“It is hard to see a plausible argument that excluding public domain content from a free, non-profit encyclopaedia serves any public interest whatsoever,” he wrote.

He points out that two German photographic archives donated 350,000 copyrighted images for use on Wikipedia, and other institutions in the United States and the UK have seen benefits in making material available for use.

Another Wikipedia volunteer David Gerard has blogged about the row, claiming that the National Portrait Gallery makes only £10-15,000 a year from web licensing, less than it makes “selling food in the cafe”.

They honestly think the paintings belong to them rather than to us
David Gerard
Wikipedia volunteer

But the gallery insists that its case has been misrepresented, and has now released a statement denying many of the charges made by Wikipedia.

It denies claims that it has been “locking up and limiting access to educational materials”, saying that it has been a pioneer in making its material available.

It has worked for the last five years toward the target of getting half of its collection online by 2009. “We will be able to achieve this,” said the gallery’s statement,”as a result of self-generated income.”

The gallery says that while it only makes a limited revenue from web licensing, it earns far more from the reproduction of its images in books and magazines – £339,000 in the last year.

But it says the present situation jeopardises its ability to fund its digitisation process from its own resources.

Legal issues

The gallery has claimed that David Coetzee’s actions have breached English copyright laws, which protect copies of original works even when they themselves are out of copyright.

The National Portrait Gallery now says it only sent a legal letter to David Coetzee after the Wikimedia Foundation failed to respond to requests to discuss the issue. But it says contact has now been made and remains hopeful that a dialogue will be possible.

A spokeswoman also said that the two German archives mentioned in Erik Moeller’s blog had in fact supplied medium resolution images to Wikipedia, and insisted that the National Portrait Gallery had been willing to offer similar material to Wikipedia.

National Portrait Gallery

The gallery said the row could prevent it putting more of its collection online

The gallery also explained how David Coetzee was able to obtain the high resolution files from its site. They were made available to visitors using a “Zoomify” feature, which works by allowing several high resolution files to be seen all together.

It claims Mr Coetzee used special software to “de-scramble” the high-resolution tiles, allowing the whole portrait to be seen in high resolution.

The British Association of Picture Libraries and Agencies has backed the National Portrait Gallery’s stance.

“If owners of out of copyright material are not going to have the derivative works they have created protected, which will result in anyone being able to use then for free, they will cease to invest in the digitisation of works, and everyone will be the poorer,” it wrote in an email to its members.

But the Wikipedia volunteer David Gerard accuses the gallery of bureaucratic empire building.

“They honestly think the paintings belong to them rather than to us,” he wrote.

July 16, 2009

Chicago’s Sears Tower is renamed

Filed under: Business News, Latest, Politics News — Tags: , , , , , , , — expressyoureself @ 5:43 pm

Chicago’s Sears Tower is renamed

Sears Tower

No longer the Sears Tower – but will the new name catch on?

The Sears Tower in Chicago – one of the most famous skyscrapers in the world – is being renamed.

The 110-storey structure, which opened in 1973, is being rechristened the Willis Tower on Thursday.

London-based insurance brokerage Willis Group Holdings has secured the naming rights as part of an agreement to lease space.

But the name change has angered some protesters, who have launched a website called http://www.itsthesearstower.com.

The Sears Tower is not just a Chicago landmark, it’s a national landmark that’s known around the world
Aaron Perlut
PR agency Elasticity

Tourists from around the world have visited the tower’s gallery to see views of Chicago.

Chicago teacher Marianne Turk, 46, told the Associated Press news agency that she was firmly against the change, as she waited to go up.

“It’s always going to be the Sears Tower. It’s part of Chicago and I won’t call it Willis Tower. In Chicago we hold fast,” she said.

Chicago landmark

The Willis Tower will be introduced to Chicago by the city’s mayor, Richard Daley, during a public renaming ceremony hosted by Willis Group Holdings.

The company is hopeful that the name change will catch on.

“Everybody knows that tower,” chief executive Joe Plumeri said ahead of the ceremony.

“If we’re good corporate citizens and do what we should, hopefully Willis and the tower and Chicago will all become synonymous.”

Other well-known buildings have undergone name changes – New York City’s Pan Am Building became the MetLife Building, and Chicago’s Standard Oil Building is now the Aon Center.

But people have not always taken to them.

Public relations experts said it could take decades for the new name of the Chicago skyscraper to take its place in the public consciousness.

“The Sears Tower is not just a Chicago landmark, it’s a national landmark that’s known around the world,” Aaron Perlut, a managing partner at St Louis-based PR agency Elasticity, told Reuters news agency.

“We see it on our TVs, in movies and magazines, so it is part of pop culture.”

“Gaining public acceptance of renaming the Sears Tower will be extremely challenging. Even with a very long, integrated marketing campaign we could be looking at a 20-to-30-year period,” he said.

The building’s original tenant, Sears Roebuck and Co, moved out in 1992 but its sign stayed on.

A real estate investment group, American Landmark Properties of Skokie, Illinois, now owns the building.

July 15, 2009

Price of habit chokes US smoker

Filed under: Business News, Latest, Politics News — Tags: , , , , , , , , , , , , , — expressyoureself @ 6:06 pm

Price of habit chokes US smoker

Josh Muszynski

Josh Muszynski: ‘I thought someone had bought Europe’

A man in the United States popped out to his local petrol station to buy a pack of cigarettes – only to find his card charged $23,148,855,308,184,500.

That is $23 quadrillion (£14 quadrillion) – many times the US national debt.

“I thought somebody had bought Europe with my credit card,” said Josh Muszynski, from New Hampshire.

He says his appeals to his bank first met with little understanding, though it eventually corrected the error.

It also waived the usual $15 overdraft fee.

“It was all back to normal,” Mr Muszynski told his local television station, WMUR. “They reversed the negative balance fee, which was nice.”

Debt crisis

His nightmare began when he checked his online bank account a few hours after buying the cigarettes.

He thought he would be a couple of hundred dollars in the black. But his overdraft had pushed him into the red – by an amount equivalent to many times the entire US national debt.

“It is a lot of money in the negative,” he said. “Something I could never, ever, afford to pay back.

A copy of Josh Muszynski's bill

The 17-digit amount on his online bill shocked Mr Muszynski

“My children could not afford it, grandchildren, nothing like that.”

In panic, Mr Muszynski rushed back to the petrol station, but they were unable to help. He says he then spent two hours on the phone with the Bank of America.

Eventually, it assured him it would be fixed – and the next morning, it had been.

But no-one has yet explained to Mr Muszynski how such a astonishing error could have been made.

July 11, 2009

Obama speaks of hopes for Africa

Obama speaks of hopes for Africa

US President Barack Obama, on his first trip to sub-Saharan Africa since taking office, has said Africa must take charge of its own destiny in the world.

Mr Obama told parliament in Ghana during his one-day stay that good governance was vital for development.

Major challenges awaited Africans in the new century, he said, but vowed that the US would help the continent.

The US president’s trip comes at the end of a summit of eight of the world’s most powerful nations, held in Italy.

Ghana was chosen as the destination for the president’s visit because of its strong democratic record.

Mr Obama headed from parliament to Cape Coast Castle, a seaside fortress converted to the slave trade by the British in the 17th Century. He was accompanied by his wife, Michelle, a descendant of African slaves, and both of his young daughters.

People crowded into a public area outside the fort to greet Mr Obama, with those unable to get a place in the throng climbing onto nearby roofs and filling balconies just to catch a glimpse of the US leader.

Africa’s choice

Mr Obama spoke to parliament shortly after a breakfast meeting with Ghanaian President John Atta Mills.

He wore a broad grin as he was greeted at the podium by a series of rousing horn blasts from within the chamber.

US President Barack Obama speaks to the Ghanaian parliament
Development depends upon good governance. And that is a responsibility that can only be met by Africans
US President Barack Obama

“Congress needs one of them,” Mr Obama joked, before turning to more serious matters.

“I have come here to Ghana for a simple reason,” the US president said: “The 21st Century will be shaped by what happens not just in Rome or Moscow or Washington, but by what happens in Ghana as well.”

Delivering a message that “Africa’s future is up to Africans”, Mr Obama conceded that the legacy of colonialism had helped breed conflict on the continent.

“But the West is not responsible for the destruction of the Zimbabwean economy over the last decade, or wars in which children are enlisted as combatants,” he added.

He praised Ghana’s own progress, governance and economic growth, saying Ghana’s achievements were less dramatic than the liberation struggles of the 20th Century but would ultimately be more significant.

“Development depends upon good governance,” Mr Obama told legislators. “That is the ingredient which has been missing in far too many places, for far too long.

“And that is a responsibility that can only be met by Africans.”

‘Yes you can’

Expanding on his message, Mr Obama said four key areas were critical to the future of Africa and of the entire developing world, citing democracy, opportunity, health and the peaceful resolution of conflict.

ANALYSIS
Andrew Harding, BBC News, Accra
Andrew Harding, BBC News, Accra

The speech has gone down extremely well. This is a country that has been enormously proud to play host to Mr Obama and referred to him as a brother. People say endlessly that he is part of the family and they are expecting a great deal of him.

It was a very broad-ranging speech but Mr Obama has an ability because of his heritage, his Kenyan father, to reach out and speak to Africans in a way that I think most foreign leaders would find very difficult.

There are very few barriers for Mr Obama in this conversation that he is trying to initiate with Africans and I think that this speech will have ticked many, many boxes.

This is Mr Obama trying to link Africa into the international community.

He hailed Ghana’s democratic society, calling for strong parliaments, honest police, independent judges and a free press across Africa.

However, there were some blunt words directed at other countries, many of which have been undermined by despotic leaders and corrupt politicians.

“Africa doesn’t need strongmen, it needs strong institutions,” Mr Obama told his audience.

“No person wants to live in a society where the rule of law gives way to the rule of brutality and bribery. That is not democracy, that is tyranny.”

He pledged to continue strong US support for public healthcare initiatives in Africa, and called for sensible use of natural resources such as oil in the face of the threat of climate change.

“Africa is not the crude caricature of a continent at war,” Mr Obama added. “But for far too many Africans, conflict is a part of life, as constant as the sun. He described wars as a “millstone around Africa’s neck”.

“You have the power to hold your leaders accountable, and to build institutions that serve the people,” Mr Obama said, describing freedom as Africa’s “inheritance” and urging the continent to beat disease, end conflict and bring long-lasting change.

In an echo of his presidential election campaign, he drew his speech to a close with a version of his trademark slogan: “Yes you can,” he told the gathered legislators.

Tight security

On the streets of Accra, many billboards welcoming Barack Obama have been erected, including one showing an image of the president and wife with the words: “Ghana loves you”.

A young supporter listens to Barack Obama's speech

Barack Obama’s speech was welcomed by Ghanaians of all ages

People have poured into Accra for a glimpse of the president during his 24-hour stay in Ghana.

But security is tight for the president’s visit, and few ordinary Ghanaians will have the chance to glimpse the first African-American President of the United States.

Mr Obama arrived in the capital late on Friday, fresh from the G8 summit in Italy where heads of state agreed on a $20bn (£12.3bn) fund to bolster agriculture – the main source of income for many sub-Saharan Africans.

July 10, 2009

Leaner GM emerges from bankruptcy

Filed under: Business News, Politics News — Tags: , , , , , , , — expressyoureself @ 7:01 pm

Leaner GM emerges from bankruptcy

General Motors (GM) says it has emerged from bankruptcy protection after creating a “new GM” made up of the carmaker’s best assets.

GM chief executive Fritz Henderson said it was the beginning of a “new era”.

The leaner GM will own four key brands including Cadillac and will be 61% owned by the US government.

Mr Henderson said negotiations were continuing “around the clock” to conclude a deal to sell GM Europe, which includes Opel and Vauxhall.

Mr Henderson said that GM would take the “intensity, decisiveness and speed” of the bankruptcy process and apply it to the new company.

“We will be profitable, we will repay our loans as soon as possible and our cars and trucks will be among the best in the world,” he said.

A smaller GM is being created with a reduced workforce, smaller dealer network and less debt.

‘Cautiously optimistic’

Industry analysts interpreted the short timeframe of the bankruptcy as a good sign.

GM BRANDS
1958 Cadillac Eldorado
BRANDS STAYING
Chevrolet
GMC
Cadillac
Buick
BRANDS GOING
Pontiac*
Saturn#
Saab#
Hummer#
Opel#
Vauxhall#
*= to be discontinued/# = to be sold

“It is the smaller, leaner, tougher, better cost-focused GM,” said George Magliano, an automotive analyst with consulting firm IHS Global Insight.

“But they still have to deal with the problems that they faced longer-term.”

Analysts argue that GM will need to change what it offers consumers and produce more cutting-edge vehicles.

“I’m still cautiously optimistic – they still need to put a product out there that everyone is excited about purchasing,” said Pete Hastings, analyst at Morgan Keegan.

“The challenge in the future is how to approach a marketplace that has been burned by GM,” he added.

The firm lost its title as the world’s largest vehicle-maker in January.

Toyota sold 8.97 million vehicles in 2008, while GM’s global sales had dropped to 8.35 million vehicles.

The new GM will operate with 27,000 fewer US employees and operate 13 fewer US car plants compared with last year.

It will operate the strongest parts of the old company, with only its Chevrolet, Cadillac, Buick and GMC brands remaining. Others such as Hummer and Saab are being sold off.

The company’s logo will remain the same; blue with white GM letters underlined.

Loan repayment

RECENT ROAD TO GM BANKRUPTCY
Feb 2008: GM posts $38.7bn loss for 2007 and plans to cut 74,000 union jobs
Sept 2008: GM has 100th anniversary
Dec 2008: US state offers $13.3bn in loans to GM and Chrysler; Canada offers $3.3bn
Feb 2009:GM posts $31bn loss for 2008
March 2009: The White House requests a new viability plan from GM and calls for boss Rick Wagoner to resign
May 2009: Reaches deals with US and Canadian unions. GM bondholders approve restructuring
June 2009: GM files for bankruptcy
July 2009: GM emerges from bankruptcy

GM said it planned to repay its government loans before the current 2015 deadline.

The firm is getting $60bn (£37.3bn) in financing from the US Treasury, which gives the US government a 61% share in the new GM, while the United Auto Workers union will have 17.5%.

Canada’s government will have a 12% share and GM bondholders will own about 10% in the new company.

GM said it hoped to float the company on the stock exchange again “as soon as practical”.

The US government has said it does not want to be involved in the day-to-day running of the carmaker.

The company also said it was exploring a partnership with online auction site eBay to make it easier for customers to buy its cars.

Rocky road ahead

GM filed for bankruptcy protection on 1 June, saying it would be forced to liquidate if the plan was not approved.

The plan was strongly supported by President Barack Obama and GM’s 40-day bankruptcy ended two days earlier than that of its cross-town rival Chrysler.

However, it is unlikely to be smooth sailing for the two carmakers.

US car sales have been hit hard as the financial crisis has made it harder to get credit and made consumers reluctant to make big purchases.

During the past six months, car sales in the US have fallen by more than 30%, while in Japan they have declined 20%.

July 9, 2009

Ban criticises G8 climate efforts

Ban criticises G8 climate efforts

(L-R) Manmohan Singh; Luiz Inacio Lula da Silva; Felipe Calderon; Jacob Zuma; Dai Bingguo

The summit has opened up to take in the so-called G5 nations

UN Secretary General Ban Ki-moon has criticised leaders of the G8 industrial nations for failing to make deeper commitments to combat climate change.

On Wednesday, the leaders, meeting in Italy, agreed to cut emissions by 80% by 2050, but Mr Ban said big cuts were needed sooner rather than later.

The leaders are set to meet their counterparts from emerging economies to discuss a new deal on global warming.

US President Barack Obama will chair the session, in the city of L’Aquila.

The second day of the summit has begun, opening up its discussions to take in the so-called G5 nations – Brazil, China, India, Mexico and South Africa. Egypt is a special invitee.

The G8 leaders said on Wednesday they had agreed to try to limit global warming to just 2C (3.6F) above pre-industrial levels.

That is the level above which, the United Nations says, the Earth’s climate system would become dangerously unstable.

The G8 leaders also said rich nations should cut emissions by 80% by 2050 while the world overall should reduce them 50% by 2050.

But correspondents say emerging nations appear reluctant to sign up and tough negotiations lie ahead.

‘Moral imperative’

Mr Ban said Wednesday’s agreement was welcome, but the leaders needed to establish a strong and ambitious mid-term target for emissions cuts by 2020.

“This is politically and morally imperative and a historic responsibility for the leaders… for the future of humanity, even for the future of Planet Earth,” he told the news.

Mr Ban said the leaders also had to come up with financial incentives for poorer countries to reduce pollution and aid to help them mitigate the effects of climate change.

President Obama will chair the Major Economies Forum meeting on Thursday afternoon.

The countries represented there account for some 80% of the emissions of gases that are blamed for global warming.

‘Still time’

Our diplomatic correspondent says, in L’Aquila, says the talks with India and China will be difficult.

China’s president has headed home to deal with the ethnic violence in Xinjiang, so there are now questions whether his delegation will be more cautious.

G8 KEY ISSUES/TIMETABLE
THURSDAY: Climate Change
Brazil, China, India, Mexico, South Africa, Egypt join talks
1230 GMT – Junior G8
1300 GMT – Major Economies Forum meeting
FRIDAY: Development
0630 GMT – crisis’ impact on Africa with African leaders attending
0830 GMT – food security
1100 GMT – final news conference
G8 members: Britain, Canada, France, Germany, Italy, Japan, Russia, US

Our correspondent adds that India is already complaining that the G8’s long-term targets for 2050 are too long-term and that G8 countries are ducking interim targets for 2020 which would make their 40-year ambitions more credible.

But in a meeting with Brazilian President Luis Inacio Lula da Silva, Mr Obama said there was still time to close the gap between developed and developing nations before UN talks on a new climate change treaty in Copenhagen in December.

The summit host, Italian Prime Minister Silvio Berlusconi, has said a deal should be all-inclusive.

“It would not be productive if European countries, Japan, the United States and Canada accepted cuts that are economically damaging while more than five billion people in other countries carried on as before,” he said.

The G8 summit began in L’Aquila on Wednesday, with the first day largely taken up with discussion of the fragile state of the global economy.

The leaders also issued a statement reaffirming that they were “deeply concerned” by Iran’s nuclear programme and condemning North Korea’s recent nuclear test and missile launches.

African leaders will join the summit on Friday to push for a new initiative to fund farming in the developing world and tackle global hunger.

Graph shows rising global temperatures

July 5, 2009

MI6 chief’s Facebook details cut

Filed under: Business News, Latest — Tags: , , , , , , , , , , , , — expressyoureself @ 7:44 am

MI6 chief’s Facebook details cut

Sir John Sawers

Sir John Sawers is currently the UK’s ambassador to the United Nations

Details about the personal life of the next head of MI6, Sir John Sawers, have been removed from Facebook.

The Mail on Sunday says his wife, Lady Shelley Sawers, put details about their children and the location of their flat on the social networking site.

The details, which also included holiday photographs, were removed after the paper contacted the Foreign Office.

MP Patrick Mercer, counter-terrorism sub-committee chairman, said he was disappointed by the couple’s actions.

‘Distressing and worrying’

He said: “Sir John and his family have been at the heart of the intelligence community for several decades now.

“It’s distressing and worrying therefore that these sorts of details should be appearing in the public domain. I would have hoped these sort of mistakes would not have been made by people like that.”

And the Liberal Democrat Foreign Affairs spokesman, Edward Davey, tells the paper he wants Gordon Brown to launch an inquiry into whether the disclosures have compromised Sir John’s ability to take up his MI6 post.

Sir John is currently the UK’s ambassador to the United Nations and will take up his new post in November.

The Mail on Sunday says the information included the couple’s friendships with senior diplomats and well-known actors including Moir Leslie from BBC Radio 4’s The Archers.

Lady Sawers revealed the location of the London flat used by the couple and the whereabouts of their three grown-up children and of Sir John’s parents, the paper added.

Diplomatic postings

Sir John is due to replace Sir John Scarlett as head of the overseas Secret Intelligence Service (MI6).

He has been the UK’s Permanent Representative to the UN since 2007.

Before that he was political director at the Foreign Office, an envoy in Baghdad and a foreign affairs adviser to former prime minister Tony Blair.

In that post from 1999 to 2001 he was involved in the Kosovo conflict and Northern Ireland peace process.

Elsewhere overseas he worked in the British embassy in Washington, as an ambassador to Cairo and in South Africa from 1988 and 1991 when apartheid was ending.

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