Saturday, 8 January 2011

Algeria debates food price cuts to quell riots

ALGIERS | Sat Jan 8, 2011 6:40am EST

ALGIERS (Reuters) - The Algerian government was due to hold a special meeting on Saturday to consider steps to reduce soaring food prices, in an effort to quell violent protests which have broken out across the country.

Algerians have taken to the streets since Wednesday in protest against high unemployment and food price inflation which has seen the cost of staple products like sugar, cooking oil and flour double in recent months.

Authorities are expected to announce measures such as limits on the profit margins traders can make on staple foods.

Fresh rioting broke out in several provinces on Friday. Police were deployed near mosques and authorities suspended soccer matches to try to quell the violence.

According to security sources, two young men were killed on Friday in the cities of Msila, about 250 km (155 miles) southeast of Algiers, and Bou Ismail, 50 km (31.07 miles) west of the capital.

The official APS news agency said protesters ransacked government buildings, bank branches and post offices in several eastern cities, including Constantine, Jijel, Setif and Bouira, on Thursday night and Friday morning.

"There is a lot of tension in the air. People are afraid. In my neighborhood, this morning there was no bread, no milk, nothing," said pensioner Abdallah Chiboub, 65, who lives in Bab Ezzouar east of Algiers.

President Abdelaziz Bouteflika, serving his third term, has not made any public comment on the riots. Trade minister Mustapha Benbada has said urgent measures will be taken to alleviate pressure on the population.

"From the start of next week, the situation will get better," Benbada was quoted as saying by state radio.

The government is expected to impose fixed profit margins on widely-consumed goods including edible oil and sugar. The cost of flour and salad oil has doubled in the past few months, reaching record highs, while 1 kg of sugar, which a few months ago cost 70 dinars (27 U.S. cents), is now 150 dinars.

Unemployment stands at about 10 percent, the government says. Independent organisations put it closer to 25 percent. Official data put inflation at 4.2 percent in November.

With oil prices at around $90 a barrel, energy exporter Algeria can afford to spend more on subsidies to overcome the crisis. Its foreign exchange reserves hit $155 billion by the end of 2010.

(Editing by Myra MacDonald)

Australia PM pledges financial help for flood-hit Queensland

Australia's Prime Minister Julia Gillard flies in a Black Hawk helicopter as she views flooding near the northern Australian city of Rockhampton, in this January 8, 2011 handout photograph. Gillard pledged financial support for Australia's flood-hit northeast on Saturday during a tour of the most heavily inundated parts of Queensland state, but warned the recovery would be slow. REUTERS/Australian Department of Defence/Handout

SYDNEY | Sat Jan 8, 2011 7:25am EST

SYDNEY (Reuters) - Prime Minister Julia Gillard pledged financial support for Australia's flood-hit northeast on Saturday during a tour of the most heavily inundated parts of Queensland state, but warned the recovery would be slow.

In a series of visits by military helicopter, Gillard went to towns whose streets have been turned into waterways by a Christmas deluge that left an area the size of France and Germany combined under water.

The floods have swamped coal mines and hit agriculture hard, washed away roads and railways, killed four, and brought the country's $50 billion coal export industry to a near standstill.

Some river levels have hit records and some are still rising with further rain forecast for this weekend. Months more wet weather is predicted, brought by the La Nina weather phenomenon.

"The scale of the floodwaters, the sheer size of this is best appreciated from the air and we are talking about huge areas, lots of water, a lot of it still very fast moving and so it's going to be a long time back," Gillard told a news conference in the flooded town of Rockhampton, 600 km (370 miles) north of the state capital Brisbane.

Asked how much it would cost Australia's federal government, she said: "I've been very clear that we are talking about hundreds and hundreds of millions of dollars."

Thousands have been evacuated from their homes, and in many towns locals and relief workers have taken to getting around the streets in boats. Authorities say around 200,000 people have been affected.

Gillard pledged funding to help improve flood protection for Rockhampton, a town of around 75,000 situated near the mouth of the Fitzroy River which peaked at 9.2 meters on Wednesday. On Saturday, it was still at 9.15 meters and predicted to stay above 8.5 meters until next Friday.

Rendering some highways flood-proof would be a priority, she said, after the state's major rail and road links were seriously disrupted and in some cases washed away.

Earlier in the flooded town of St George, 450 km (270 miles) west of the state capital Brisbane, Gillard said A$4 million ($4 million) in emergency payments had already been paid and more was on the way to help "families who are doing it tough."

Gillard pledged to work with state Premier Anna Bligh to "help Queensland through." The Balonne River in St George was forecast to peak at near 13.4 meters over the weekend.

On Saturday a fourth person was confirmed dead in the latest flooding, a 55-year-old truck driver whose truck veered off a road while transporting water to the inundated town of Condamine. The scale of the disaster has prompted fears of disease in the largely tropical areas affected, and in some areas drinking water has been in short supply.

Flood warnings were still current on Saturday for more than 10 rivers in Queensland. Up to 200 mm of rain was forecast in some areas over the weekend, but forecasters said the worst would likely spare the areas most heavily affected by the floods.

The man tasked with overseeing the recovery, Major General Mick Slater, has warned it is likely to take years and said the damage cannot be properly assessed until the waters recede. While traveling with Gillard on Saturday, he said the crisis was "not over yet."

U.S. woman arrested in Iran for spying: report

TEHRAN | Sat Jan 8, 2011 7:44am EST

TEHRAN (Reuters) - Iranian border police said on Saturday they had arrested an American woman on suspicion of spying, Iranian news agencies reported on Saturday, two days after state-run TV denied a similar story.

"The female American spy was arrested at the Jolfa border," the semi-official Fars news agency quoted Ahmad Geravand, deputy commander of state border police, as telling a news conference.

Jolfa is on the border with Azerbaijan and also close to Armenian territory. Fars said she entered from Armenia.

The ISNA news agency quoted Geravand as saying: "We arrested a woman who was on a mission for the Americans to film the borders with equipment, so we arrested her at the Jolfa border and she was then handed to the intelligence ministry."

The news comes at a time of high tension between Tehran and Washington, which have been in a long-running dispute over Iran's nuclear programme.

The two countries have had no diplomatic relations since Iran's 1979 Islamic Revolution but both will be represented at talks in Istanbul later this month which Western countries hope will address the nuclear stand-off.

On Thursday, daily newspaper Iran said a 55-year-old U.S. woman identified as Hall Talayan had been arrested trying to cross the border without a visa, a report which Iran's Arabic language television al-Alam said was false.

Saturday's news reports gave Talayan's age as 34. The arrest happened on Wednesday, they said.

Three Americans -- two men and a woman -- were arrested in July 2009 near the Iran-Iraq border on suspicion of spying. The woman, Sarah Shourd, was released on bail a of $500,000 in September and returned to the United States. She has said the three of them strayed across the border while hiking in Iraq.

Her two companions remain in jail awaiting trial, which was postponed in November due to Shourd's absence.

(Reporting by Mitra Amiri; Writing by Robin Pomeroy; Editing by Peter Graff)

Obama urges end to "symbolic battles" in Congress

U.S. President Barack Obama discusses the economy and December jobs report during his visit to Thompson Creek Window Company in Landover, Maryland January 7, 2011. REUTERS/Jason Reed

WASHINGTON | Sat Jan 8, 2011 6:47am EST

WASHINGTON (Reuters) - President Barack Obama urged newly empowered Republicans on Saturday not to wage "symbolic battles" against him but to instead work together to help spur job growth and economic recovery.

Obama issued his appeal in his weekly radio address after Republicans took power in the House of Representatives on Wednesday, setting up potentially fierce fights with the president and his Democrats on spending, debt and healthcare.

"Our fundamental mission must be to accelerate hiring and growth," Obama said.

He touted as an example of bipartisan cooperation a massive compromise tax cut package approved by Congress last month that he said had contributed to "more optimistic economic forecasts for the year ahead."

Obama cautiously welcomed Friday's Labor Department report that unemployment in December fell to 9.4 percent from 9.8 percent. But the rise of 103,000 in non-farm payrolls fell short of economists' expectations.

"We know that these numbers can bounce around from month to month. But the trend is clear," he said. "The pace of hiring is picking up.

Turning to the political front, Obama kept up his push for increased bipartisanship since his Democrats were trounced in the November congressional elections.

"What we can't do is refight the battles of the past two years that distract us from the hard work of moving our economy forward," he said.

"What we can't do is engage in the kinds of symbolic battles that so often consume Washington while the rest of America waits for us to solve problems," he said.

Resurgent Republicans have vowed to undo Obama's healthcare reform plan, but the effort took a hit on Thursday when congressional budget analysts said repeal would add billions of dollars to the federal budget deficit.

Democrats, who still control the Senate despite losses in last year's elections, have promised to protect the healthcare law, Obama's signature legislative victory. The Republican drive to overturn it is thus seen as largely symbolic.

(Reporting by Matt Spetalnick; editing by Todd Eastham)

Germany and France want Portugal to accept aid: report


A sculpture showing the euro currency sign is seen in front of the European Central Bank (ECB) headquarters in Frankfurt, April 1, 2010. REUTERS/Kai Pfaffenbach

BERLIN | Sat Jan 8, 2011 7:56am EST

BERLIN (Reuters) - Germany and France want Portugal to accept an international bailout as soon as possible in order to prevent its debt crisis spreading to other countries, German magazine Der Spiegel reported on Saturday.

Without citing its sources, the magazine said government experts from both European heavyweights were concerned Lisbon will soon not be able to finance its debt at reasonable rates, after its borrowing costs rose at the end of last year.

Berlin and Paris also want euro zone countries to publicly commit to do whatever it takes to protect the bloc's single currency, including topping up a 750 billion euro ($968 billion) rescue fund if necessary.

Portugal is viewed by many economists as the peripheral euro zone country that is most likely to follow Ireland and Greece to seek an international bailout as it grapples to cut its debts and borrowing costs. It holds its first bond auction of the year next week.

(Writing by Brian Rohan; Editing by Alison Birrane)

UPI NewsTrack TopNews

Published: Jan. 8, 2011 at 8:08 AM

Obama: 'Larger paychecks' for U.S. workers

WASHINGTON, Jan. 8 (UPI) -- U.S. President Barack Obama said Saturday "155 million workers will see larger paychecks this month" because of tax cuts enacted and signed into law last month.

In his weekly radio and Internet address, the president noted that the private sector added more than 100,000 jobs and the unemployment rate fell in December, following growing strength in auto sales and manufacturing.

"Now, we know that these numbers can bounce around from month to month," Obama said. "But the trend is clear. We saw 12 straight months of private sector job growth -- the first time that's been true since 2006. The economy added 1.3 million jobs last year. And each quarter was stronger than the last, which means the pace of hiring is picking up."

The president said tax cuts passed during the recent session of Congress are "in part" responsible for optimistic forecasts for 2011 but he acknowledged that the United States "still has a lot of work to do. The recession rocked the foundations of our economy, and left a lot of destruction and doubt in its wake."

He said the administration will focus on acceleration hiring and growth, and said growth will be helped along by the payroll tax cut included in the tax package he signed, which he said "will mean $1,000 more this year for a typical family."

"In fact, 155 million workers will see larger paychecks this month as a result of this tax cut," Obama said.


Republicans attack healthcare agenda

WASHINGTON, Jan. 8 (UPI) -- The U.S. economy can't get back on track with existing Democratic healthcare policies, House Majority Leader Rep. Eric Cantor, R-Va., said Saturday.

In the party's weekly radio and Internet address, Cantor derided the 10-month-old healthcare package as flawed and claimed it was hindering economic recovery, The Hill reported.

"At a time when we need to do everything in our power to encourage job creation, the healthcare law hangs around the necks of businesses small and large, causing them to not hire new workers -- or worse, be forced to let current employees go," he said.

Cantor said a scheduled vote on repealing the measures Wednesday would be a message to voters the party was determined to scale back government's role.

"The best boost that Congress can provide to the economy is to send a credible signal that we are serious about cutting spending and eliminating job-killing regulations," Cantor said.

The repeal measure is expected to be passed by the Republican-dominated House, but thwarted in the Democrat-controlled Senate, the report said. President Barack Obama has already stated he would veto any repeal measures.


Iraq's Sadr returns with anti-U.S. theme

NAJAF, Iraq, Jan. 8 (UPI) -- A militant Shiite Muslim leader ended his exile in Iran and was back in Iraq calling for national unity and an end to the U.S. military presence.

Moqtada Sadr, 39, returned to the south-central city of Najaf after four years of self-imposed exile in Iran and called for fellow Shiites to support the government, the BBC reported Saturday.

He also led chants of "No, no, to America" to a crowd of thousands, urging "all other kinds of resistance" to the U.S. military presence in the country.

Sadr is the leader of the Shiite Mehdi militia, formed as resistance to former President Saddam Hussein's Sunni Muslim-controlled government.

"Whatever happened between brothers happened, but that page must be forgotten and turned forever," Sadr told the cheering crowd. "The Iraqi government has been formed. If it serves the Iraqi people, and provides services, we will stand by it, not against it."

Sadr's political wing has 39 seats in the 325-seat parliament.

"This is a new government, we must give it a chance to prove that it can serve the people," he said.


U.S. wounded rate in Afghanistan soars

WASHINGTON, Jan. 8 (UPI) -- The number of U.S. troops wounded in battle in Afghanistan in 2010 more than doubled from the previous year, The New York Times reported Saturday.

The newspaper cited reports it obtained from the Pentagon that showed almost 5,500 soldiers were injured in 2010 in the NATO intervention to oust Taliban and al-Qaida insurgents from Afghanistan.

In 2009, 2,415 U.S. soldiers were wounded in action, the report said. The year's death toll for U.S. troops was 430, the newspaper said.

The wounded rate was almost six times higher than 2008, although data indicated advances in emergency care reduced the mortality rate to 7.9 percent last year from 14.3 percent in 2008, the Times said.

Military officials said soldiers were better trained and equipped to deal with injuries.

"This is just basic techniques -- trained well," said Lt. Col. Michael Wirt, brigade surgeon in the 101st Airborne Division.


U.S. to offer Pakistan more aid

WASHINGTON, Jan. 8 (UPI) -- Vice President Joe Biden is to take a message to Pakistan that the United States is prepared to supply military aid its government wants, officials say.

The Washington Post described President Barack Obama's plan as challenging Pakistan, calling on its political and military leaders to specify what they need to drive the Taliban from tribal areas. Biden is scheduled to travel to Pakistan next week for meetings with Gen. Ashfaq Kayani, the head of the military, and other officials.

Pakistani officials have complained that U.S. military aid is both inadequate and late to arrive. The report on Obama's Afghanistan policy review said unspecified "adjustments" were needed for Pakistan.

One senior official told the Post the review concluded the United States must "make sure that our sizeable military assistance programs are properly tailored to what the Pakistanis need and are targeted on units that will generate the most benefit."

The official said other parts of the strategy include easing Pakistani fears that India is becoming a force in Afghanistan and working toward a political solution. The official said Pakistan is vital to efforts to negotiate with the Taliban.

Pope Shenouda flies to US for checkups


Sat, 08/01/2011 - 12:03
Photographed by Fouad Elgarnousy

Pope Shenouda III flew to the US Saturday morning on a private aircraft owned by Coptic businessman Naguib Sawiris to undergo medical examinations.

A church source told Al-Masry Al-Youm that the Pope’s three secretaries--Fathers Boutros, Youannis, Armia--and his physician Maher Assad are accompanying him on the trip.

The Coptic Pope will be admitted to Cleveland Hospital in Ohio for routine medical checkups.

Two weeks ago, the Pope announced in a sermon that he would travel to the US for treatment and rejected an offer of a kidney donation from one of the attendees, saying he is too old for such an operation.

The same source added that the Pope will return after one week to continue following up on the Alexandria church blast which left 23 people dead and more than 90 injured.

The Pope suffers kidney and back problems, and travels regularly to the US for medical examinations and treatment.