Yuan to stay cool

The best thing American politicians can do to encourage a stronger Chinese currency is keep calm

ONE of the few good things about the Great Recession of 2008-09 was a merciful absence of complaints from America’s Congress about China’s currency. The yuan’s gradual appreciation stopped in July 2008, and China has since kept its currency tightly pegged to the dollar. But even as America suffered its worst downturn in the post-war period, its legislators steered clear of ranting against China.

That restraint was driven partly by fear. At the depths of the crisis even the most myopic Congressmen worried about a descent into 1930s-style protectionism. And it was driven partly by the facts. As investors’ flight to safety strengthened the dollar in late 2008, the yuan rose along with it. With America’s imports slumping it was hard to blame Chinese workers for American joblessness. And thanks to its huge domestic stimulus China added to global demand last year, as its current-account surplus shrank sharply.

Now things have, unfortunately, gone into reverse. As policymakers in both countries shift from cushioning recession to managing recovery, the rigidity of the yuan is, once again, becoming a source of tension—one that a still-fragile global recovery can ill afford.
… Continue Reading

First round knock-down

Nicolas Sarkozy’s party takes a battering in France’s regional elections

HE MAY have steeled himself for a poor result in the first round of French regional elections, held on Sunday March 14th. But the outcome for France’s president, Nicolas Sarkozy, must nonetheless have felt crushing. Polls had suggested that his ruling UMP party would be neck-and-neck at this point with the opposition Socialists. Instead, the Socialists bagged fully 30%, with the UMP trailing at 26%. At the second round vote next Sunday, Mr Sarkozy can now hope at best simply to hold on to Alsace and Corsica, the only two regions out of 22 in mainland France which the UMP governs. At worst, he might even lose both.

In a poll marked by the lowest turnout since France’s regions were created in 1986, Mr Sarkozy’s party did manage to come out top in several places, such as Champagne-Ardennes, Ile-de-France, Provence-Alpes-Côte d’Azur (PACA) and Rhone-Alpes. But the two-round voting system allows any party with at least 10% of the poll to go forward to a run-off. This is likely to help the Socialists more than it will the UMP. Their friends, Europe Ecologie, the rising stars of the French left, secured a handy 13%.

Frenzied talks are already underway to agree a deal that would allow the two parties to merge for the second round. Along with other left-wing votes from the scattered smaller parties that failed to qualify for the next round, the Socialists are well placed to sweep most of the map.
… Continue Reading

Rwandan president rejects human rights criticism

(CNN) — Rwandan President Paul Kagame hit back Monday at human rights activists who say he’s behaving like an autocrat and fueling a bloody civil war in Rwanda’s neighbor, Congo.

“If you are talking about people in the human rights community from outside… I have an issue with this,” Kagame said, 16 years after he was hailed as a hero for ending a genocide that killed at least 800,000 people.

“You tend to make a judgment of a country, 11 million people, on what a couple of people have said and (they) don’t take into account what Rwandans say.”

Kagame added, “Nobody has asked the Rwandans … it’s as if they don’t matter in the eyes of the human rights people. It’s our own decisions in the end.”

He said everyone in Rwanda has to play by the rules and be accountable. “There has to be leadership to make things move in the right direction,” Kagame stated.

Kagame’s comments came a month after the New York-based group, Human Rights Watch, said opposition activists are facing increasing threats, attacks, and harassment ahead of Rwanda’s presidential election in August.
… Continue Reading

Baccarat, the Chinese way: Rituals you won’t see in Vegas

Macau, China (CNN) — Baccarat is not just for James Bond anymore. It is the game of choice for Chinese gamblers from mainland China and Hong Kong. Both groups make up the majority of gamblers in Macau. And they bring some unique, superstitious rituals with them that you won’t see in Las Vegas.

If you watch many Chinese gamblers play baccarat in Macau, there is a good chance you will see the players squeeze the cards tightly between their fingers, slowly peek at the cards by lifting the vertical end just enough to see the suit and number, then turn the card horizontally to peek at the number again.

Each time, they crease the cards rendering the cards unusable for another round (Macau casinos seem to tolerate this). The slow dance of peeking and creasing is to increase the suspense as the player hopes for a good pair of numbers that close in on the magic number: 9.

Some Chinese players even blow on the cards, hoping to “blow away” bad numbers. At one table with a sizeable group, a woman exclaimed “hoi, hoi,” (“turn it over, turn it over”) as she watched a player perform his ritual.

“Sometimes, you almost believe that they can actually change the outcome of a card by the way they squeeze the card. So there’s a lot of superstition,” said Scott Milburn, vice president of table games at City of Dreams.
… Continue Reading

Insect that fights Japanese knotweed to be released

A tiny Japanese insect that could help the fight against an aggressive superweed has been given the go-ahead for a trial release in England.

Since Japanese knotweed was introduced to the UK it has rapidly spread, and the plant currently costs over £150m a year to control and clear.

But scientists say a natural predator in the weed’s native home of Japan could also help to control it here.

The insect will initially be released in a handful of sites this spring.

This is the first time that biocontrol – the use of a “natural predator” to control a pest – has been used in the EU to fight a weed.

Wildlife Minister Huw Irranca-Davies said: “These tiny insects, which naturally prey on Japanese Knotweed, will help free local authorities and industry from the huge cost of treating and killing this devastating plant.”
… Continue Reading

AIG selling overseas business to rival MetLife

AIG is selling an overseas insurance business to rival MetLife for $15.5bn (£10.3bn), as it continues to raise funds to pay off a federal bail-out.

MetLife is paying $6.8bn in cash and $8.7bn in shares for American Life Insurance Company (Alico), which operates in more than 50 countries.

The announcement comes a week after AIG agreed to sell its Asian business AIA to UK group Prudential for $35.5bn.

AIG is seeking to repay $182.3bn of loans from the US government.

“This came quicker than expected – normally you’d expect a company to take a breather after a deal like the AIA sale,” said Antony Gifford, portfolio manager for North American equities at Henderson Global Investors.

“But MetLife already announced it was in negotiations on 2 February, while the AIA deal was still going on. Perhaps the timetable was driven by the US government.”
… Continue Reading

The week ahead

Renewed diplomatic efforts over Iran’s nuclear activities

• AFTER Iran announced that its long-delayed Bushehr civilian nuclear plant will be operational within a few months, American diplomats will renew efforts to obtain further sanctions against the Islamic republic over its suspected efforts to build a nuclear bomb. Hillary Clinton, the American secretary of state, has been trying to persuade members of the UN Security Council, including Russia, which has been helping to build the Bushehr plant since 1995, to accept to a new round of sanctions against Iran. The country’s government refused to agree to a compromise plan for its uranium to be enriched in Russia.

• AMERICA’S vice-president, Joe Biden, tries again to untangle the knot that is Middle Eastern politics. He travels to the region on Monday March 8th and will meet the leaders of Israel, the Palestinian territories, Egypt and Jordan in an attempt to encourage the resumption of peace talks. George Mitchell, Barack Obama’s envoy, is adding his weight to efforts reopen negotiations. A recent row over historical holy sites has not helped to warm relations, as Israeli archaeologists in East Jerusalem, which the Palestinians see as their future capital, are intent on uncovering evidence of Jewish ties that could be used to undermine the Arab presence there.
… Continue Reading

6-4-magnitude quake hits southern Taiwan

(CNN) — A magnitude 6.4 earthquake rattled southern Taiwan on Thursday morning, according to the U.S. Geological Survey. There were no immediate reports of damage, injuries or deaths.

The quake struck at about 8:20 a.m. (7:20 p.m. Wednesday ET) in a mountainous region about 25 miles northwest of Taitung, on the southeast coast, and 40 miles east of Tainan and Kaohsiung on the southwest coast.

The region includes Taiwan’s Maolin National Scenic Area.

The quake was followed by several aftershocks, the largest reaching a 4.8 magnitude. The initial 6.4 quake rumbled to the surface from 14 miles deep.

The Taiwan Ministry of Interior and the National Fire Agency said electricity was cut off near the epicenter but had no further information.

Residents in southern Taiwan reported cracks in some buildings and major bridges. Train service was also disrupted in some areas, Taiwanese media reported.
… Continue Reading

Euro rises against the dollar on Greek austerity plan

The euro has risen against the dollar as Greece unveiled a new series of austerity measures to cuts its debt.

The euro rose 0.6% to $1.3698, but was slightly lower against the pound at 90.70 pence.

On Tuesday, the currency fell to its lowest level against the dollar for 10 months amid continuing concerns over Greece’s debt crisis.

Persistent worries over Greece’s 300bn euro ($419bn; £259bn) debt have weighed on the European single currency.

The pound rose against the dollar, trading at $1.512.

Protests

The Greek government approved an austerity package of tax rises and spending cuts worth 4.8bn euros, hoping to convince financial markets that it can pay off its debts and persuade European leaders it is doing enough.
… Continue Reading

Bachelet urges Chile earthquake survivors to stay calm

Chile’s president has appealed for calm in the earthquake-ravaged city of Concepcion, vowing a stern response to any renewal of looting and violence.

Michelle Bachelet says 14,000 troops are now in the region, after dozens of people were arrested on Monday.

A BBC reporter in Concepcion says police are now posted on street corners in the city centre, but says that aid convoys are yet to reach the needy.

The death toll from the 8.8-magnitude quake now stands at 795, officials say.

Emergency workers also say 19 people are still unaccounted for.

‘Necessary measure’

A special air route is being set up to deliver aid from the capital, Santiago, to Concepcion, 430km (270 miles) away.

But security in the city remains a key concern after shops and homes were looted on Monday and police made large numbers of arrests.
… Continue Reading