Thursday, 3 April 2014

Putin seeks diplomatic end to Ukraine crisis: US

Putin seeks diplomatic end to Ukraine crisis: US
Russian President Vladimir Putin called his American counterpart Barack Obama on Friday to discuss a US proposal on resolving the crisis in Ukraine, the White House said.
"President Obama suggested that Russia put a concrete response in writing" to the proposal presented by US Secretary of State John Kerry to Russian Foreign Minister Sergei Lavrov in The Hague this week, White House spokesman Jay Carney said.
The proposal had been drawn up after consultations with Ukraine and the European Union, and Putin and Obama agreed "Kerry and Lavrov would meet to discuss next steps".
Earlier Obama told Russia in a CBS interview to pull troops back from Ukraine and stop escalating a crisis that has already redrawn the map of Europe and reopened the Cold War's East-West split.
Obama's blunt message added further urgency to a standoff that has forced NATO to reinforce positions along Russia's frontier in a bid to calm anxious ex-Soviet satellite nations about the Kremlin's new expansionist mood.
The American leader, who is visiting Saudi Arabia, told Putin "that the United States continues to support a diplomatic path" to resolve the crisis, which has seen Moscow absorb Ukraine's southern peninsula of Crimea and mass tens of thousands of troops on Ukraine's eastern border.
But Carney said Obama made clear to Putin "that this remains possible only if Russia pulls back its troops and does not take any steps to further violate Ukraine's territorial integrity and sovereignty".
Obama also "noted that the Ukrainian government continues to take a restrained and de-escalatory approach to the crisis and is moving ahead with constitutional reform and democratic elections".
And he urged Russia "to support this process and avoid further provocations".

China cuts taxes, to build more rail lines to steady economic growth

China cuts taxes, to build more rail lines to steady economic growth

China cuts taxes, to build more rail lines to steady economic growth
China has acted for the first time this year to boost the economy. Beijing has announced tax cuts for small firms along with plans to speed up rail construction. Tax rates for smaller companies will be lowered by relaxing the criteria that allows them to halve their income taxes. This policy will be extended to the end of 2016, the government said. There will be an acceleration of the construction of rail projects that have been approved, and an increase in the total length of lines being laid this year by 18 percent compared to 2013. That will increase investment, which is the biggest driver of China’s economy. GDP there is rising at its slowest rate in at least a decade as the country moves from investment-driven growth to more expansion through domestic consumption. The Chinese government said recently it aims to grow the economy by around 7.5 percent this year, but some analysts believe it will fall short of that.

Obama faces rights criticism after Saudi visit focused on ties

Obama faces rights criticism after Saudi visit focused on ties
US President Barack Obama flew home from Saudi Arabia Saturday under fire for not doing more to raise human rights concerns on a visit dominated by smoothing policy differences with a longtime ally.
Obama met a campaigner for the rights of women in the ultra-conservative Muslim kingdom before leaving on Saturday morning.
But despite appeals from US lawmakers, he did not raise any rights issues in his talks with King Abdullah late on Friday, which were dominated by policy on Iran and Syria, a source of friction between the allies, a senior US official said.
The official insisted that did not mean Obama did not share "significant concerns," merely that the conflict in Syria and Riyadh's concerns about Washington's diplomatic engagement with Tehran had left no time to discuss them.
"We do have a lot of significant concerns about the human rights situation that have been ongoing with respect to women's rights, with respect to religious freedom, with respect to free and open dialogue," the official said.
But "given the extent of time that they spent on Iran and Syria, they didn't get to a number of issues and it wasn't just human rights."
Saudi Arabia has strong reservations about efforts by Washington and other major powers to negotiate a deal with Iran on its controversial nuclear programme.
The Sunni Muslim oil kingpin, long wary of Shiite Iran's regional ambitions, views a November deal between the powers and Iran aimed at buying time to negotiate a comprehensive accord as a risky venture that could embolden Tehran.
Riyadh -- a staunch supporter of the Syrian rebels -- was also deeply disappointed by Obama's 11th-hour decision last year not to take military action against Tehran ally Damascus over chemical weapons attacks.
Obama sought to reassure Abdullah on both issues in Friday's meeting, telling the king that the strategic interests of the United States and its longtime ally remained "very much aligned", the US official said.
But Obama's focus on smoothing over the strains in the alliance to the exclusion of concerns over women's rights and religious freedoms drew criticism from international watchdogs and from activists inside the kingdom.
"President Obama's visit offered a crucial opportunity to raise a series of human rights issues from discrimination against women to the repression of independent human rights activists and freedom of expression and assembly," said Amnesty International's Saudi researcher Sevag Kechichian.
"His failure to publicly voice his concerns over the dire state of human rights in Saudi Arabia is disappointing and a real missed opportunity," Kechichian told AFP.
Obama's meeting with Maha Al-Muneef, who was honoured by the US State Department earlier this month for her bravery in campaigning against domestic violence and child abuse, came as activists called for a new day of defiance of the kingdom's unique and deeply controversial ban on women driving.
A small number of women responded to the call, the latest in a campaign of defiance launched last October.
"I drove my car for a while on Olaya Road in Riyadh," activist Aziza Yousef told AFP, adding that she was one of several women who got behind the wheel across the country.
Women in Saudi Arabia need permission from their male guardians to travel, marry, work and enrol in higher education.
Women who have been stopped by police during previous protests against the driving ban have been required to sign pledges before being released not to do so again.
Dozens of US lawmakers had called on Obama to publicly address Saudi Arabia's "systematic human rights violations", including the rights of women.
Saudi activist Nasima al-Sada expressed "disappointment" that Obama had met only Muneef and not a wider delegation of women activists.
"We were hoping he would meet a delegation of female civil society activists to explain the situation of women and human rights in a better way," she told AFP.
She said the meeting with Muneef did "not send a real message of support for the rights of women" in Saudi Arabia.

S&P Forum to Explore Opportunities and Challenges in Saudi Debt Capital Markets

S&P Forum to Explore Opportunities and Challenges in Saudi Debt Capital Markets
A Forum hosted by Standard & Poor’s Ratings Services (S&P), the world's leading provider of independent credit risk research, analytics and benchmarks, will discuss the opportunities and challenges facing conventional and Islamic bond issuance in Saudi Arabia. The event is set to take place in Riyadh on Tuesday, 1 April, 2014.
Under the theme of ‘Navigating the Risk Dimension in 2014’, the Forum will explore a wide range of developments shaping the growth of Saudi debt capital markets in the context of key rating analytical, process and criteria developments. The event is designed for CEOs, CFOs, treasurers, advisors, bankers, financial intermediaries and institutional investors.
Stuart Anderson, Managing Director & Regional Head, Middle East for S&P said: “A variety of factors are creating a strong impetus for growth in Saudi and GCC capital markets including strong economic prospects; continued need for infrastructure investments; new regulation supportive of capital markets, including the implementation of Basel III; growing demand for Islamic Finance; and low interest rates resulting from accommodative central bank policies around the world.”
The S&P Forum will outline how ratings can further support the growth of deep and liquid debt capital markets. “Ratings greatly enhance the transparency and efficiency of debt capital markets, generating greater local, regional and global exposure for issuers, and contributing significantly to their development and diversification for the benefit of investors and financial market intermediaries,” Anderson said. The event will discuss ratings prospects for four key sectors - Corporate and Infrastructure; Sovereign; Banking; and Insurance.
The last three months of 2013 saw increased issuance in GCC capital markets, driven partly by growth in Islamic finance. This momentum has continued into the first quarter of 2014, with Saudi Electric Co.’s Saudi Arabian riyal (SAR) 4 billion sukuk being one of the key issuances this year among S&P-rated companies.
Corporate and infrastructure issuers in Saudi Arabia and the region have benefited from sustained positive economic fundamentals and strong appetite from regional and international investors for high credit quality paper. Among GCC sovereigns rated by S&P, Saudi Arabia is the only one to have a positive outlook, while all others carry stable outlooks.
The liquid banking sector is another key factor that underpins the positive credit profiles of corporate and infrastructure issuers both in the Kingdom and the region. The overall profitability of Saudi banks will be a highlight of the discussions at the Forum. Over the last year, Saudi banks have fared better than their peers in developed markets, showing consistently strong profitability and low risk profile.
Andreas Kindahl, Managing Director, S&P Ratings Services will present his outlook on the Corporate and Infrastructure sector in the region while S&P analysts Christian Esters and Timucin Engin will deliver their prognosis for GCC sovereigns and the banking sector respectively. Other S&P analysts Karim Nassif and Kevin Willis will lead workshops on Corporate & Infrastructure and Insurance ratings.
Michael Baker, Managing Director and Head of Solutions & Services, S&P Capital IQ will present case studies on credit risk modelling in the GCC

German retail trade logs surprise gain

German retail trade logs surprise gain
German retail trade posted surprising turnover gains in February, the National Statistics Office (Destatis) reported on Monday.
Destatis said revenues in the sector rose by 1.3 percent in real, price-adjusted terms compared with the previous month. This came as a surprise as analysts polled by Reuters had penciled in a 0.5-percent drop for the month.
In a year-on-year comparison, retailers' turnover jumped by 2 percent in real terms. Destatis noted the biggest driver was the sale of clothing, shoes and leather goods, which surged by 6.1 percent.
Robust labor market
Almost equally successful was the sale of pharmaceutical and medical products, while trade in household appliances and food items was sluggish throughout February.
Germany's retail umbrella organization, HDE, said it expected a 1.5-percent rise in turnover throughout the current year, up from a 1.1-percent increase in 2013.
Retailers continue to profit from a generally positive consumer mood in the country against the background of low unemployment and the prospect of more wage hikes in many industries as the market research group GfK confirmed last week.
However, a large proportion of the money Germans were willing to spend was found to be going into holidays, services and refurbishing.

Free-trade pact could hit developing countries

Free-trade pact could hit developing countries
Since July last year, the EU and the US have been negotiating a Transatlantic Trade and Investment Partnership (TTIP). This free-trade agreement would reduce trade costs between the US and the EU, according to Julia Kubny of KfW Development Bank.
'This would mean a bottle of wine from Italy would be cheaper for the US consumer, who might thus be more likely to buy the Italian instead of Chilean wine,' she said. 'More trade between the EU and the US tends to lead to less trade with other countries.'
The EU and the US together account for around a third of world trade. By creating the largest free-trade zone with 800 million consumers, world per capita income is expected to rise by more than 3 percent. These are the findings of a study by the Munich-based Ifo Institute for Economic Research. That is a statistical average that would, however, have very different regional effects, Thiess Petersen of the Bertelsmann Foundation said. 'The US and Europe would benefit greatly. But there would be drawbacks for the rest of the world.'
'The rest of the world' means above all the emerging and developing countries in Asia, Africa and Latin America. But the TTIP could also adversely affect the traditional trade partners of the US and the EU, Petersen said. 'The most worrisome implications are for Canada and Mexico. As GDP per capita could contract seven to nine percent.'
The TTIP would negatively affect the North American Free Trade Agreement (NAFTA)that binds these two countries with the United States. And other trading partners such as Chile and Australia would be hit. 'And in Asia, too, virtually all countries would suffer a decline in growth, between 0.5 and 2.5 percent,' he said.
Two scenarios
At present, the TTIP negotiations are faltering. It is unlikely that the FTA will be passed within the next two years. Even so, it is becoming apparent that the impact on third countries will likely match one of two scenarios.
If the transatlantic trade agreement only eliminated customs duties, the impact on transatlantic trade relations would be relatively small because duties in most regions are already very low. The second variant would thus make more sense: reducing not only tariffs but also so-called non-tariff barriers to trade. These include food regulations and other standards for environmental and consumer protection.
They have ignited a conflict between the interests of European consumer advocates and development experts. The former want to cement their high EU standards in the TTIP. They aim to prevent, for example, non-labeled genetically modified foods going on the European market. 'If the partly lower US standards are implemented at the EU level, producers who previously exported to the US, but did not meet EU standards, would now be excluded from the US market,' Kubny said. 'Or they would have to bear substantial costs to adapt to the higher standards - if they are ever able.'
Free trade versus development policy
At present, new worldwide sustainable development goals are being negotiated to replace the UN Millennium Development Goals from 2016. They aim to eliminate worldwide hunger and extreme poverty by 2030. If the transatlantic free trade agreement should lead to a decline in per capita income in third countries by up to nine percent, then there is the question of policy coherence: how can the economic and commercial interests of the north agree with the development needs of the south?
The stated goal of German and European development cooperation is to strengthen the competitiveness of developing countries and to facilitate their participation in world trade. 'If it comes to the point that developing countries' market access to the US and the EU is hindered, this would thwart development cooperation efforts' Kubny said.
Doha by the back door?
Developing countries have almost brought World Trade Organization negotiations on a far-reaching liberalization of world trade to a standstill. Among other things, they oppose abolishing state aid in the food supply in the course of cutting subsidies. India is spearheading this movement. The dispute over patent protection on drugs represents another almost insurmountable obstacle. While the industrialized countries agree to only a very limited easing of patent protection, the southern countries want to manufacture and distribute essential medicines, such as for cancer and AIDS, even ignoring patent protection.
In this context, the Doha Round of trade talks is 'a catalyst for taking the interests of developing countries into account' Kubny said, since the developing countries sit at the negotiating table as equals. 'Some of the standards that developing countries torpedoed in the Doha Round, will be discussed again in the context of the TTIP. So they could now be introduced through the back door.'
Developing countries do not have direct influence on the TTIP negotiations. It would be desirable, but not realistic, for the EU and US to open their internal market to products from the south to compensate these countries for the drawbacks of the new trade bloc, Petersen said.
'An alternative would be for the regions that expected to lose out from this Agreement to pursue stronger integration.' Only regional alliances such as South America's Mercosur and the Asian free trade area between ASEAN countries and China could allow the countries of the south to challenge the TTIP.

An unwilling star: 20 years since Kurt Cobain’s death

An unwilling star: 20 years since Kurt Cobain’s death
'F**k you all; this is the last song of the evening,' Kurt Cobain said into the microphone. It was November 18, 1993, and Nirvana's legendary MTV Unplugged gig was being recorded. He was sitting on stage in a thick cardigan and with stringy blond hair. The singer looked weary, and he was coping with torturous stomach pains that even hard drugs didn't alleviate.
Ahead of the MTV concert, he had threatened to prevent its recording from going forward, and he'd picked a fight with fellow bandmate Dave Grohl, saying the drummer's playing was too loud. In short, the dress rehearsal was a catastrophe. A few hours later, the audience wouldn't have suspected a thing. The band harmonized and fooled around a bit between songs. Cobain lolled about on his swivel stool, making sarcastic jokes here and there.
But when he sang, he was unmistakably engrossed in the music. The concert went down in pop music history.
'I don't have a gun'
Five months later, Kurt Cobain was found dead after shooting himself with a shotgun. When his body was discovered two days after his suicide, drug paraphernalia were lying next to the corpse.
Just weeks ago, police investigators released new photos of the scene. Mike Ciesynski, a detective specializing in unsolved crimes, hoped the photos would help put an end to the various conspiracy and murder theories that have mounted in the two decades since Cobain's death. 'It's a suicide. This is a closed case,' Ciesynski told members of the press. In 1994, investigators came to the conclusion that Kurt Cobain took a large dose of heroin before he shot himself.
A point of bitter irony for many fans: One of Nirvana's greatest hits, 'Come As You Are,' includes repetitions of the line, 'And I swear that I don't have a gun.'
Music for Gen X
In some ways, Kurt Cobain's suicide spelled not just the end of Nirvana, but the end of grunge - the genre from Seattle that conquered the world of pop music and with which the maladjusted struck back at the garish commercialism of the 90s. Generation X found its idol in the highly emotional, despairing, fragile, and unruly Kurt Cobain. Nirvana's music was hard, wild and burned out - the perfect soundtrack to long hair, ripped jeans and lumberjack flannel. It issued a clear rejection of the 'love everyone' spirit of 90s techno and rave culture, embodied in Germany by Berlin's Love Parade festival.
The band's lyrics didn't delve into politics. Instead, grunge bands with loud guitars, heavy-hitting drums and raw vocals conjured up problems of the everyday in a world that had just been freed from nuclear fears and the Cold War. It was a world in which there suddenly appeared to be much less to demonstrate against.
Cobain developed his own form of protest, though: bitter sarcasm, particularly directed at his primary backers - a recording industry that he dismissed as capitalist pigs. He also didn't shy away from harsh words for his fans, even though they'd made him what he wanted to be from early on: a rock star.
Enduring anthem
In many ways, though, Kurt Cobain was not the revolutionary with an extended middle finger, as he is so often portrayed. It's an image even he seemed to be fond of. But his journals, published as a book in 2002, paint a different picture. Sketches, letters, shopping lists and other checklists can be found within the pages, but there's little to lead readers to believe they are getting a glimpse into one of the most important rock idols of the 90s.
His drug addiction was no secret among his friends and associates. He was hardly the only one in the grunge scene who had developed a heroin habit. But almost no one could get inside his head.
Fellow band members Krist Novoselic and Dave Grohl knew what was going on, however. Bored one day, Grohl wrote a song about the group's lead singer called 'A Friend of a Friend,' in which the lyrics go, 'He needs a quiet room / With a lock to keep him in … He's never been in love / But he knows just what love is / He says never mind / And no one speaks / He thinks he drinks too much / 'Cause when he tells his two best friends / 'I think I drink too much' / No one speaks.'
Months later, in September 1991, came the Nirvana album 'Nevermind,' which changed the world of rock music profoundly. The first track, 'Smells Like Teen Spirit,' remains an anthem into the present. 'Rolling Stone' named it one of the best songs of all time - on what the magazine has hailed as one of the best albums in pop music history.
Point of no return
Cobain found himself swamped with prizes, massive tours, TV appearances, publications, the follow-up hit album 'In Utero,' and, ultimately, the MTV Unplugged gig - a kind of accolade for creative greats in the music industry. The more success Nirvana found, the worse things got for Cobain. Between his rise to fame, the drugs and his stomach problems, it all proved too much. In February 1994, Nirvana went on tour in Europe, with their last concert slated for April 8 in Dublin. But on March 1, the band broke things off. They had their last show on stage together in Munich, where the 3,000 fans in attendance had no idea what things were like for the ailing frontman. Days later, he tried to take his own life with sleeping pills. His wife, Courtney Love, found him and he was revived at the hospital.
But by then, Cobain had already shut himself off from everything. Neither Nirvana's success, nor his friends in the band, nor his wife and young daughter had a real chance of stopping his suicide. In his last brief to Courtney Love, he wrote, 'You know I love you, I love Frances, I'm so sorry.… I don't know where I'm going, I just can't be here anymore.'