2011年6月27日星期一

Greek power company seeks court ruling on strike (AP)

在 ServiceModel 客户端配置部分中,找不到引用协定“TranslatorService.LanguageService”的默认终结点元素。这可能是因为未找到应用程序的配置文件,或者是因为客户端元素中找不到与此协定匹配的终结点元素。
在 ServiceModel 客户端配置部分中,找不到引用协定“TranslatorService.LanguageService”的默认终结点元素。这可能是因为未找到应用程序的配置文件,或者是因为客户端元素中找不到与此协定匹配的终结点元素。

ATHENS, Greece – The country's power company says it has filed a suit in an Athens court for the 48-hour rolling strikes by its workers to be declared illegal.

Electricity company employees object to the company's privatization — part of a euro50 billion privatization drive and new austerity measures essential for Greece to continue receiving international rescue loans that are preventing it from defaulting on its debts.

The power company said Friday it had filed a legal request for the strike to be declared illegal — a move which would force the employees back to work.

The strike has led to power cuts across the country, and consumers have been asked to limit their use of electricity and exercise caution when using elevators.


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Chinese prime minister offers support for euro (AP)

在 ServiceModel 客户端配置部分中,找不到引用协定“TranslatorService.LanguageService”的默认终结点元素。这可能是因为未找到应用程序的配置文件,或者是因为客户端元素中找不到与此协定匹配的终结点元素。
在 ServiceModel 客户端配置部分中,找不到引用协定“TranslatorService.LanguageService”的默认终结点元素。这可能是因为未找到应用程序的配置文件,或者是因为客户端元素中找不到与此协定匹配的终结点元素。

BUDAPEST, Hungary – Chinese Prime Minister Wen Jiabao has offered his country's support for Europe and its common currency amid the eurozone's debt crisis.

Wen says China is a long-term investor in the European sovereign debt market and has purchased a "not small" amount of euro-denominated bonds in the past years.

Wen says China will offer "consistent support for Europe and the euro."

Wen, on a five-day tour of Hungary, Britain and Germany just as Europe hammers out a plan to battle the eurozone debt crisis, met Saturday in Budapest with Hungarian Prime Minister Viktor Orban.

Wen says China is also willing to purchase bonds issued by Hungary, which does not yet use the euro, and offered Hungary a loan of 1 billion euros ($1.4 billion).


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G-20 announces measures to stabilize food prices (AP)

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在 ServiceModel 客户端配置部分中,找不到引用协定“TranslatorService.LanguageService”的默认终结点元素。这可能是因为未找到应用程序的配置文件,或者是因为客户端元素中找不到与此协定匹配的终结点元素。

PARIS – The largest economies in the world agreed Thursday to a series of measures to stabilize world food prices after recent fluctuations caused global instability, especially in poorer countries.

French Agriculture Minister Bruno Le Maire said the G-20 summit of agriculture ministers had agreed to calm the world market by establishing a transparent system to track global supplies, set up emergency food reserves, engage in more research into new wheat strains and create a rapid response mechanism to deal with drought in producer countries.

"It is a tour de force for the international community that lets you still believe in the power of solidarity and working together to address the big questions facing the planet, like the future of world agriculture," Le Maire told journalists.

Non-government organizations working on food issues, however, slammed the accord as too timid, saying it did not address the controversial issue of biofuels, which take up land that could be used to grow food, and doesn't focus enough on building up emergency stocks.

"Fixing the global food system and ending the food price crisis requires major surgery, yet the G-20 produced little more than a sticking plaster," said Jean-Cyril Dagorn of Oxfam, adding that measures needed to be taken to stop the prices rising in the first place.

Their criticisms were seconded by the international alliance of Catholic development agencies and the Action Aid international poverty organization.

The accord was still, however, a rare case of international agreement in the area of food and agriculture, where countries have long been at loggerheads because of divergent interests.

International farm groups have also called for more regulation in the market, but that has been resisted by more free market-oriented governments like Britain.

The gravity of the situation, however, was driven home when rising energy prices prompted a spike in food prices in 2008 that sparked riots in almost two dozen nations over three continents.

Last week, David Nabarro, the U.N. special representative on food security and nutrition, said that a repeat of 2008 is very likely and shortages of food, water and power are bound to create social anxiety and political instability in the future.

A recent U.N. study also predicted that prices will be 20 percent higher for cereals and up to 30 percent higher for meat in the coming decade compared to the past ten years.

With the global population expected to increase from 6.9 billion to 9 billion by 2050, the problem of feeding the world put food security at the top of G-20 summit's agenda.

"We all recognize the necessity of putting in place on the market of agricultural products new rules and regulations," Le Maire said, reflecting the new consensus that food prices had to be protected, especially from financial speculation in commodity markets.

Several dozen French farmers dressed as livestock and ears of corn demonstrated near the Paris bourse on Wednesday, protesting the role of financial markets in the food crisis.

The largest organization of European farmers, the COPA-COGECA, however, welcomed the agreement, especially the setting up of a mechanism to ensure transparency in the market.

World Bank President Robert Zoellick appeared at the ministers' side during the news conference to express his support for the new measures and the seriousness of price swings.

"We are not going to be able to stop food prices from going up and down, but we can smooth out the swings and we can protect the poor whether they are small farmers or consumers," he said.

One of the key aspects of the new accord is the Agricultural Market Information System that would stave off panic food speculation by making instantly available to all countries the state of world food stocks, production and consumption, Zoellick explained.

"What we saw when prices started to surge in 2008 was that the lack of information on stocks and availability can lead to panic in markets and panic is what leads to price hikes," said Zoellick. "Uncertainty leads to volatility."

The new "action plan on food price volatility and agriculture" also called for the institution of emergency food reserves to offset humanitarian crises.

Banks and international agencies were also urged to draw up risk management plans for developing countries financial tools to offset price fluctuations.

"Financial engineering has been associated with the 'dark side.' This initiative helps bring it into the light," said Zoellick. "These tools that are widely and commonly used in developed countries, we can now make them available to farmers in developing countries."

The plan also called for ending export bans by producer nations, such as when Russia banned grain exports following forest fires, causing a spike in wheat prices.

Le Maire emphasized that the plan sets down concrete and ambitious proposals that will be put in place immediately.

"The plan takes place as of today," he said.


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Wall Street sinks on Europe's debt misery (Reuters)

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在 ServiceModel 客户端配置部分中,找不到引用协定“TranslatorService.LanguageService”的默认终结点元素。这可能是因为未找到应用程序的配置文件,或者是因为客户端元素中找不到与此协定匹配的终结点元素。

NEW YORK (Reuters) – Wall Street dropped for a third day on Friday on worries about the Italian banking sector and Greece's debt crisis, but the S&P 500 managed to hold its 200-day moving average in a sign buyers still see value.

The Dow industrials and the S&P 500 fell for their seventh week in the last eight. The benchmark S&P 500 is down 7 percent from its 2011 closing high at the end of April.

Investors are fearful that Greece's government may fail to pass an austerity plan next week, which could force a default on its debt repayments. The government faces an electorate vehemently opposed to the austerity measures.

"They (politicians) may not believe that financial markets are as sensitive to their decisions as they actually are, and there is a worry that somewhere along the line, some political vote goes against the market," said Nicholas Colas, chief market strategist of the ConvergEx Group in New York.

The S&P 500 remained within striking distance of its 200-day moving average -- a line that has been tested twice in recent trading and has so far acted as a springboard for stocks. The level was at 1,263.47.

"Every time you test a resistance or support level, you make it weaker," Colas said. "It's almost like a piece of metal. Every time you hit it, it grows more fragile and that's why people are really worried the third or fourth time."

Problems in the euro zone appeared to intensify as shares of Italian banks UniCredit SpA (CRDI.MI) and Intesa Sanpaolo (ISP.MI) fell sharply on concerns about their capital positions. Trading in their shares was briefly suspended.

The CBOE Volatility Index (.VIX) or VIX, Wall Street's barometer of investor anxiety, rose 9.4 percent to 21.10. Some analysts say fear needs to rise further before the market reaches a bottom.

The Dow Jones industrial average (.DJI) dropped 115.42 points, or 0.96 percent, to 11,934.58 at the close. The Standard & Poor's 500 Index (.SPX) fell 15.05 points, or 1.17 percent, to 1,268.45. The Nasdaq Composite Index (.IXIC) lost 33.86 points, or 1.26 percent, to 2,652.89.

For the week, the Dow fell 0.58 percent and the S&P 500 shed 0.24 percent, while the Nasdaq gained 1.39 percent.

Bank stocks fell on concerns about the economic outlook. The KBW Banks Index (.BKX) lost 1 percent and the S&P Financial Sector Index (.GSPF) shed 0.7 percent. The sector has been the worst-performing this year, falling around 8 percent.

On Thursday, the market welcomed Greece's agreement to a five-year austerity plan.

The euro declined against the dollar for a third straight session on worries Greece's parliament might not pass austerity measures needed for the country to secure more bailout funds.

In the latest economic data, new orders for long-lasting U.S. manufactured products, known as durable goods, increased 1.9 percent in May after dropping 2.7 percent in April as bookings for transportation equipment rebounded strongly.

Oracle Corp (ORCL.O) fell 4.1 percent percent to $31.14 (.NDX) a day after the world's No. 3 software maker posted disappointing results, especially in hardware sales. Oracle's results sparked concerns about a bigger slowdown in technology spending.

Micron Technology Inc (MU.O) tumbled 14.5 percent to $7.21 after the memory chipmaker recorded results below expectations late Thursday.

About 9.26 billion shares traded on the New York Stock Exchange, NYSE Amex and Nasdaq -- well above the daily average so far this year of around 7.57 billion. Analysts said Friday's volume was much higher than average due in part to the rebalancing of the Russell 2000 Index (.TOY).

Declining stocks outnumbered advancing ones on the New York Stock Exchange by a ratio of 19 to 11. On the Nasdaq, about three stocks fell for every two that rose.

(Reporting by Edward Krudy; Editing by Jan Paschal)


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EU leaders appoint Draghi as next ECB president (AP)

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在 ServiceModel 客户端配置部分中,找不到引用协定“TranslatorService.LanguageService”的默认终结点元素。这可能是因为未找到应用程序的配置文件,或者是因为客户端元素中找不到与此协定匹配的终结点元素。
By GABRIELE STEINHAUSER, AP Business Writer Gabriele Steinhauser, Ap Business Writer – Fri?Jun?24, 11:04?am?ET

BRUSSELS – European Union leaders appointed Italy's Mario Draghi as the next president of the European Central Bank on Friday — a move that gives investors much-needed certainty over who will lead the institution in its pivotal role in the fight against the crippling debt crisis.

The head of Italy's central bank, Draghi is expected to adopt his predecessor's tough stand on inflation when he takes over the helm of the ECB on Nov. 1, a day after the term of President Jean-Claude Trichet expires.

"Mr. Draghi will exercise a strong and independent leadership of the ECB," said EU President Herman Van Rompuy. "This is essential in normal times, and indispensable in difficult times."

The timing of Draghi's appointment had come under doubt as fellow Italian executive board member Lorenzo Bini Smaghi had until Friday refused to leave his post.

With Bini Smaghi staying on the executive board, France would not have a representative on the six-person board once Trichet departs on Oct. 31. The French had previously implied they would only support Draghi if a French man or woman takes Bini Smaghi's spot.

On Friday, French President Nicolas Sarkozy said Bini Smaghi had informed him and EU President Van Rompuy that he would step down by the end of the year. He did not say what French candidate would take Bini Smaghi's spot.

German Chancellor Angela Merkel, meanwhile, rejected the claim that pressure applied on Bini Smaghi to resign his post by the Italian government had endangered the independence of the ECB.

"I believe that the independence of the European Central Bank, as regards its ability to perform its tasks, has been preserved entirely," she told reporters.

No resignation was announced Friday by the ECB, and a bank spokesman said that since board members are appointed for eight years under the EU treaty, "Mr. Bini Smaghi will take any future decision in full independence."

The European Parliament and the ECB board had already given their approve to Draghi's appointment.

Delaying his appointment until their next summit in September would have underlined divisions among EU leaders, who have already struggled to find a common line on debt-stricken Greece and the best way of containing the financial crisis that has also pushed Ireland and Portugal into needing massive bailouts.

The ECB has played a central role during the debt crisis that has afflicted the 17-country eurozone over the past 18 months or so. For example, Trichet overrode criticism from some of the more hawkish officials at the bank when he backed a multibillion euro (dollar) bond-buying program intended to ease the pressure on the more indebted countries.

More recently, the ECB has found itself in the difficult position of raising interest rates to keep a lid on above-target inflation levels even though the weaker eurozone economies are still struggling.

The 63-year-old Draghi will start his eight-year term at the ECB on Nov. 1. The former managing director at U.S. investment bank Goldman Sachs also runs the Financial Stability Board, an international organization that seeks to head off risks for the global financial system.

The decision on Draghi came a day after EU leaders gave their clearest sign yet that Greece will get a second bailout in the coming weeks, on top of last year's euro110 billion ($156 billion).

"We agreed that there will be a new program for Greece," said German Chancellor Angela Merkel.

The stronger language on aid for Greece was also made possible after debt inspectors from the EU and the International Monetary Fund reached a final deal Thursday with the government in Athens on euro28 billion worth of new austerity measures.

The measures have to be passed by the Greek Parliament next week for the bailout funds to be released. If lawmakers fail to back the package, then Greece will likely be staring at a default on its debts.

Even if it gets a second bailout, many economists think that Greece will have to restructure its debts in some shape or form in the coming years, especially if the economy shrinks further.

However, Greek Prime Minister George Papandreou once again ruled out default as an option.

"In case of default the health sector will collapse, ... the pension system will collapse by 80 percent and we won't be able to pay salaries in the public sector," he said after the summit, adding that the new bailout package being negotiated will give Greece the time necessary to get its economy back on track.

"What we are doing is changing Greece," Papandreou said. "We're not asking for money to stay the same."

___

David McHugh in Frankfurt and Raf Casert and Angela Charlton contributed to this story.


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"Probably inevitable" a country will exit euro: Soros (Reuters)

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VIENNA (Reuters) – Billionaire investor George Soros thinks a country will eventually exit the euro zone and urged policymakers on Sunday to come up with a "plan B" that could rescue the European Union from looming economic collapse.

Soros, famous for making $1 billion by betting against the British pound in 1992, did not name any country he thought might exit the currency, but speculation is mounting about the fate of Greece as its politicians struggle to agree more austerity measures demanded by international lenders as the price for staving off bankruptcy.

Soros reiterated his view in a panel discussion in Vienna that the euro had a basic flaw from the start in that the currency was not backed by political union or a joint treasury.

"The euro had no provision for correction. There was no arrangement for any country leaving the euro, which in the current circumstances is probably inevitable," he said.

While he called survival of the European Union a "vital interest to all," he said the EU needed structural changes to halt a process of disintegration.

"There is no plan B at the moment. That is why the authorities are sticking to the status quo and insisting on preserving the existing arrangements instead of recognizing there are fundamental flaws that need to be corrected."

With a debt crisis in some peripheral members testing the EU's cohesiveness at a time of popular disquiet in wealthier countries over bailouts, he said leaders had to adopt measures now to remedy the situation.

"Let's face it: we are on the verge of an economic collapse which starts, let's say, in Greece but could easily spread. The financial system remains extremely vulnerable...

"We are on the edge of collapse and that is the time to recognize the need for change."

Some steps the EU could adopt included creating a larger central budget; directing some of the income from value-added tax or a levy on financial transactions to Brussels; having a European institution guarantee banks, and tripling the size of its bailout fund by topping it up with tax revenue, he said.

(Reporting by Michael Shields; editing by Sophie Walker)


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German business sentiment rises unexpectedly (AP)

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在 ServiceModel 客户端配置部分中,找不到引用协定“TranslatorService.LanguageService”的默认终结点元素。这可能是因为未找到应用程序的配置文件,或者是因为客户端元素中找不到与此协定匹配的终结点元素。

FRANKFURT, Germany – Business optimism rose unexpectedly in Germany during June in a fresh indication that the country's recovery remains strong despite a steady drumbeat of bad news about Greece's debt crisis.

The Ifo institute said Friday its index rose to 114.5 from 114.2 in May. The rise was unexpected — the consensus in the markets was for a modest decline.

Germany is enjoying a strong economic recovery, based on strong exports and increasing investment in machinery and equipment at home as businesses expand. Upbeat reports from the manufacturing, wholesale and construction sectors offset a slight decline in retailing.

"The Germany economy is enjoying a robust upswing," the institute said in a statement.

The 7,000 business executives surveyed remained upbeat despite constant headlines about Greece's financial troubles. EU leaders are working on a second bailout to keep Athens from defaulting on its debts after last year's euro110 billion ($160 billion) rescue did not put the country back on its feet financially.

Most of the eurozone's economy is doing well despite financial crises in three smaller countries — Greece, Portugal and Ireland. Together they make up only about 6 percent of eurozone gross domestic product, which means their troubles have so far not held the overall economy back much. Still, a debt default could spread turmoil through the financial system.


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