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Obama moves to rein in banks in Wall Street assault

In World on January 22, 2010 at 10:47 am

President Barack Obama unveiled plans Thursday to limit the size and scope of US banks and finance firms in a new assault on the Wall Street excesses laid bare by the financial crisis.


“Never again will the American taxpayer be held hostage by a bank that is too big to fail,” Obama vowed, flanked by former Federal Reserve chief Paul Volcker, who advised the president on the rules.


The plans to limit “excessive” risk taking and “protect” taxpayers are aimed at preventing banks or finance institutions from owning, investing in or sponsoring hedge fund or private equity funds.


They will effectively force finance firms to choose between proprietary activities, trading in stocks and sometimes risky financial instruments and commercial activities, like making loans and collecting deposits.








US President Barack Obama delivers remarks on finacial reform at the White House in Washington, DC.

The initiative, which must be approved by Congress, includes a new proposal to limit the consolidation of the finance sector, placing broader limits on “excessive growth of the market share of liabilities” at the largest financial firms.


Obama blamed banks for sparking the worst economic crisis since the Great Depression with “huge reckless risks in pursuit of quick profits and massive bonuses” in a “binge of irresponsibility.”


He vowed to enact the reforms in Congress, even if Wall Street deployed an army of lobbyists to kill them.


“If these folks want a fight, it’s a fight I’m ready to have,” he vowed defiantly.


The announcement was the latest attempt by the White House to harness popular fury at massive Wall Street bonuses and the financial crisis, which is adding up to an angry political mood in a crucial election year.


Separately, the Federal Reserve and other US regulators ordered banks Thursday to follow tougher rules on capital requirements and accounting standards starting in November.


“Banking organizations affected by the new accounting standards generally will be subject to higher risk-based regulatory capital requirements,” said a joint statement by regulators.


The new accounting standards require banks to include a number of off-balance sheet items in their liabilities, which could raise capital requirements.


Wall Street gave an immediate thumbs down to Obama’s plans as US stocks plunged, with the blue-chip Dow Jones Industrial Average down more than 200 points or two percent.


“Rather than arbitrarily banning certain activities, or setting arbitrary size limits, our policy response should focus on improving risk management, internal controls, corporate governance, and supervisory oversight,” said the Financial Services Forum.


It is a nonpartisan group of the chief executives of 18 of the largest and most diversified financial services institutions in the United States.


The Obama administration?s proposal “is inconsistent with achieving” goals, such as promoting responsible lending, increasing jobs and promoting a stronger economy, said Steve Bartlett, president for the Financial Services Roundtable.


The group represents 100 top financial services firms providing banking, insurance, and investment products and services.


Obama’s first year in office was dominated by efforts to rescue a handful of banks that threatened to topple the US economy after being exposed to massive losses on the subprime mortgage market.

According to Treasury officials, about 205 billion dollars was pumped into 707 banks under the government rescue plans.

Obama has sounded a tougher tone towards banks in recent weeks as he faced widespread voter anger at the massive government bailout, which came as Americans faced surging unemployment, home foreclosures and national debt.

Top Obama economic aide Austan Goolsbee sought to counter criticism that the plan is returning to the Depression-era law creating a wall between investment and commercial banks.

“It’s not returning to Glass-Steagall,” Goolsbee said.

While the act repealed in 1999 forbid underwriting securities or investing in securities by any commercial bank, Goolsbee said, “This is not that. This says a bank cannot own a hedge fund, cannot own a private equity fund or do trading for its own account that is not related to its client business.”

He added that the goal is “to get back to the fundamental nature of the bank, which is serving its clients, rather than investing for its own profit.”


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US Airways jet lands when religious item mistaken as bomb

In World on January 22, 2010 at 10:47 am

A US Airways passenger plane was diverted to Philadelphia on Thursday after a religious item worn by a Jewish passenger was mistaken as a bomb, Philadelphia police said.


A passenger was alarmed by the phylacteries, religious items which observant Jews strap around their arms and heads as part of morning prayers, on the flight from New York’s La Guardia airport heading to Louisville.


“Someone on the plane construed it as some kind of device,” said officer Christine O’Brien, a spokeswoman for the Philadelphia police department.


No one was arrested or charged, O’Brien said.


The plane landed without incident and the passengers and crew were taken off the plane, a spokesman for US Airways said.








A plane is escorted by a law enforcement vehicle to a terminal at Philadelphia International Airport in Philadelphia, Thursday, Jan. 21, 2010

Phylacteries, called tefillin in Hebrew, are two small black boxes with black straps attached to them. Observant Jewish men are required to place one box on their head and tie the other one on their arm each weekday morning.


Thursday’s incident was the latest of several false alarms on U.S. flights since the December 25 incident in which a Nigerian man attempted to detonate a bomb in his underpants from materials he smuggled onto the plane just as his flight was about to land in Detroit, authorities said.


The device did not explode and only burned the man, who was pounced on by fellow passengers.


Since then several flights have been diverted by security scares that have turned out to be harmless.


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Railroads signal a tepid US economic recovery

In World on January 22, 2010 at 10:46 am

The nation’s railroad operators expect a tepid recovery for the U.S. economy in 2010, as both businesses and consumers continue to wrestle with the effects of the recession.


The severe economic slump cut shipping demand for the railroads because American consumers and industries have been buying fewer of the cars, chemicals, crops, lumber and containers of imported goods the railroads carry.


Union Pacific Corp., Burlington Northern Santa Fe Corp. and CSX Corp. — the nation’s top three railroad companies — all say demand for coal, once a lucrative segment, is slumping as U.S. factories and homeowners use less electricity. And as people continue to spend sparingly, shipments of consumer goods will show a slight increase at best.








FILE – In this April 22, 2008 file photo, a Union Pacific train travels through Council Bluffs, Iowa.

The companies reported lower fourth-quarter profits this week and said results won’t improve until they see a firm turnaround in the economy.


“Until employment shows some signs of improvement, you’re going to have consumers stay on the sideline, and I think it’s going to be pretty tough to see any kind of a strong recovery,” Union Pacific Chairman and CEO Jim Young said in an interview with The Associated Press on Thursday.


Economists are forecasting U.S. gross domestic product to rise a little over 3 percent, modest growth for an economy coming out of recession.


Many economists are hoping the U.S. manufacturing sector is beginning to rebound as the economy struggles to emerge from the worst recession since the 1930s. Manufacturing activity has expanded for five straight months, according to the Institute for Supply Management, a trade group. But construction activity remains weak, reflected in the steep drop reported by Union Pacific and Burlington Northern in shipments of industrial products, a category that includes lumber.


Burlington Northern says on its Web site that it transports enough lumber each year to build more than 500,000 homes and enough newsprint each year to print 1 billion Sunday newspapers.


Union Pacific reported a 17-percent drop in fourth-quarter net income Thursday to $551 million, or $1.08 per share. The Omaha-based company handled 5 percent fewer carloads during the quarter.


CSX on Tuesday said fourth-quarter net earnings rose 23 percent compared to a year ago. Burlington Northern’s quarterly earnings fell to $536 million, or $1.55 per share, compared with $615 million, or $1.78 per share. Revenue fell 16 percent. The company expects any economic turnaround to be gradual.


CSX CEO Michael Ward said the railroad expects better results in all of its business segments in 2010, except coal. But CSX, like all the major railroads, will be comparing this year’s results with 2009’s weak performance.


Coal shipments have been hit hard. As industrial production slowed and jobs vanished, plants closed and consumers reduced their electricity consumption. That, combined with mild weather last summer, resulted in large coal stockpiles at many power plants.


CSX is pessimistic about its coal business partly because more utilities in the eastern United States have switched to cheaper natural gas to run power plants. The switch to natural gas isn’t as common in the western U.S. where Union Pacific and Burlington Northern deliver coal.


Automotive shipments should be a bright spot in railroad earnings reports during the first half of 2010. U.S. auto sales were solid in December and should improve from last year’s total of 10.4 million, a 27-year low.


Agriculture shipments offer another opportunity for growth. Already, Union Pacific said its ethanol shipments are up because ethanol plants that used to be owned by bankrupt VeraSun Energy have reopened under new owners.


Citi Investment Research analyst Matthew Troy said railroads will carry more crops later this year if the USDA’s forecasts are correct. Troy said in a research note that sustained improvement in grain traffic could be a bright spot in early 2010.


When consumers start buying more goods and retailers have to replace them, railroads will benefit. That’s because many imported shipping containers are carried inland from ports on trains before being delivered to their final destinations by truck. Union Pacific actually hauled 5 percent more of those intermodal containers in the fourth quarter although revenue for that sector was still down 3 percent.


And Union Pacific officials said they’re watching to see if construction activity picks up this spring as more projects funded by stimulus money get going. That could lead to an increased demand for industrial shipments.

Besides the economy, fuel prices will be another factor in the railroads’ 2010 prospects. When diesel gets expensive, the cost of shipping on railroads becomes more attractive compared to shipping by truck.

“If the economy starts to pick up, you’ll see fuel prices move up. That makes us much more competitive versus moving products on the highway,” Young said.


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The five decisions that defined President Obama’s first year

In World on January 22, 2010 at 10:46 am

These are the five decisions that garnered the most news and the most controversy in President Barack Obama‘s first year – and had the largest effect on the country. As Tuesday’s stunning GOP win in Massachusetts shows, we don’t yet know how each choice will end up. But we do know each is poised to define Obama’s legacy:


5. The “Closing” of Gitmo Throughout his campaign for office, Barack Obama vowed to close the American military prison camp at Guantanamo Bay, arguing that it harms America’s reputation and violates our fundamental principles. 


Upon taking office, he almost immediately signed an order to close the prison within one calendar year. Conservatives howled in protest and accused the new president of being “soft on terror.” But the order was a central part of Obama’s generally successful effort to rehabilitate America’s global reputation after the unpopular Bush presidency.








US President Barack Obama

With the deadline looming, however, the administration has conceded that, in the words of Defense Secretary Robert Gates, ”the logistics of it have proven more complicated than we anticipated.” The Pentagon is reportedly ready to release at least 100 of the 200 total prisoners, but it has found few countries willing to take them.  And with reports now connecting former Gitmo detainees with the Christmas Day “underwear bomber” and Al Qaeda in Yemen, the challenges are greater than ever.


This decision embodied what happens when Barack Obama’s high hopes meet the complicated, harsh realities of the so-called “War on Terror.”


4. Supreme Court Justice Sonia SotomayorSome presidential historians would argue that a president’s most significant lasting impact is made through their appointments to the Supreme Court.  The sudden and surprising retirement of Justice David Souter offered Obama his first chance to make his mark on the land’s highest court.


His choice of Sonia Sotomayor was simultaneously highly controversial and not. While Hispanic groups were thrilled at the prospect of having one of their own on the Supreme Court, conservative Republicans were outraged by the Bronx native’s off-the-bench expressions of cultural pride. They railed against her infamous claim that a “wise Latina” would come to better legal decisions by virtue of her experience and argued that what Obama called her admirable “empathy” was truly a liberal double-standard.


But her relatively moderate judicial record and cool demeanor during the hearings allowed her to sail through confirmation. She was confirmed by the full Senate on August 6, 2009, by a vote of 68 to 31. In his brief remarks following her confirmation, President Obama hailed the moment for “breaking yet another barrier and moving us yet another step closer to a more perfect union.”


3. Taking on health care reformAlthough the outcome of the current effort to reform America’s health care system is still unknown, Barack Obama has gotten closer to passing a final bill than any previous president.


President Obama’s core decision in pursuing reform was to leave the drafting of the bill to leaders of Congress. Many attribute President Clinton‘s failure to succeed in 1993 to his administration’s choice to lay out its own plan and demand that Congress pass it. The president’s only specific requests were that costs be contained and that any bill provide quality, affordable health care for all Americans.


The road through Congress, though, has been bumpy. Throughout the summer and fall public battles were fought over the public option, abortion, “death panels,” and total cost. With the exception of a major address in September, President Obama remained mostly behind the scenes, pushing House and Senate leaders to gather enough votes for passage. The House narrowly passed a bill on November 7, the Senate on Christmas Eve.


While the Democrats losing their 60th seat in the Senate will make it difficult, President Obama hopes to be able to sign a reconciled version of the two in the coming weeks.


2. Two surges in AfghanistanWhen he moved into the White House, Barack Obama inherited something no other incoming president ever had: two major wars overseas. Throughout his presidential campaign, Obama stressed the importance of shifting the focus of America’s military effort from the now-stabilizing Iraq to Afghanistan.


“If another attack on our homeland comes, it will likely come from the same region where 9/11 was planned,” he said in a speech last summer. “And yet, today, we have five times more troops in Iraq than Afghanistan.”


So, not surprisingly, within the first month of his presidency, Obama ordered the deployment of 17,000 troops to Afghanistan to support the 38,000 already there. That proved insufficient, however, and in August General Stanley McChrystal, the newly appointed U.S. commander in Afghanistan, made a rather startling announcement: The Taliban had gained the upper hand, and the eight-year war in the region was rapidly failing. To salvage the operation, McChrystal wanted at least 40,000 additional troops.


On December 1, 2009, President Obama, after a period of prolonged deliberation that led right-wing critics like former Vice President Dick Cheney to accuse him of “dithering,” ordered an additional 30,000 troops to report to the region within six months. Their mission would be to counter the expansion of the Taliban and to help train the Afghan security forces to control the country on their own. The president hopes to begin removing U.S. troops from the region by the end of 2011, but no concrete timetable beyond that has been offered.


1. The economic stimulus packageComing into office with the economy in the throes of recession, and many believe on the verge of a much deeper crisis, President Obama’s first major initiative was to pass a massive economic stimulus package in the hopes of jolting the economy back into gear. The $800 billion American Recovery and Reinvestment Act of 2009 included federal tax cuts, an expansion of unemployment benefits, and money for state governments and public works projects focused on health care, energy, and education.


The bill was viewed by conventional wisdom-makers like the Washington Post’s Dan Balz as a “bold” beginning to the Obama presidency. The administration wasn’t afraid of its price tag or the fervency of those opposed to the idea of government spending in moments of economic crisis. The president’s supporters, including some conservative economists, believe the bill prevented the recession from becoming worse.

But the bill’s passage did not come without a price. No Republicans in the House, and only three in the Senate voted for its passage, and the fight led to an immediate erosion of whatever goodwill existed between the opposition party and the new president. Outside of Washington, the bill polarized Americans’ opinions of the new president and helped give birth to what became the Tea Party movement.

In the months since the passage of the bill, the country remains in what many define as a recession. Many argue that the president must take up a second stimulus bill in the form of a “jobs bill” to fight continuing unemployment.


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US envoy starts Mideast tour amid Obama pessimism

In World on January 22, 2010 at 10:45 am

Washington’s Middle East envoy launched a new effort Thursday aimed at restarting Israeli-Palestinian peace negotiations, just as President Barack Obama expressed pessimism about the prospects.


Already complicating envoy George Mitchell’s mission was a new demand by Prime Minister Benjamin Netanyahu for an Israeli military presence in the West Bank to stop weapons smuggling, even after formation of a Palestinian state.


Mitchell met late Thursday with Israeli Prime Minister Benjamin Netanyahu, whose office released a brief statement saying they discussed ways to move the peace process forward and that contacts would continue.








U.S. Mideast envoy George Mitchell, right, stands with Israeli Foreign Minister Avigdor Lieberman, during their meeting in the foreign ministry in Jerusalem, Thursday, Jan. 21, 2010.

As Mitchell began his mission, his boss, Obama, admitted he overreached in the Middle East.


In an interview with Time Magazine published Thursday, Obama said internal conflicts made it hard for the Israelis and Palestinians to restart talks, “and I think that we overestimated our ability to persuade them to do so when their politics ran contrary to that.”


He said Israel “found it very hard to move with any bold gestures,” while Palestinian President Mahmoud Abbas had “Hamas looking over his shoulder.”


Obama concluded, “I think it is absolutely true that what we did this year didn’t produce the kind of breakthrough that we wanted and if we had anticipated some of these political problems on both sides earlier, we might not have raised expectations as high.”


Before meeting Israeli President Shimon Peres Thursday, Mitchell pledged to soldier on. He said Obama’s vision is a Palestinian state alongside Israel in peace. “We will pursue (that) until we achieve that objective,” Mitchell said.


The envoy is set to meet with Palestinian officials in the West Bank on Friday.


Mitchell has been laboring without success for a year to get both sides back to the negotiating table, and Netanyahu’s new demand made his mission even tougher.


Netanyahu said Israel must maintain a presence “on the eastern side of a prospective Palestinian state” to keep militants from using the territory to launch rockets at Israel’s heartland.


The eastern side of such a state would be the part of the Jordan Valley that lies in the West Bank.


Abbas aide Nabil Abu Rdeneh rejected the demand. “The Palestinian leadership will not accept a single Israeli soldier on Palestinian land after ending the Israeli occupation,” he told The Associated Press.


The Palestinians have refused to sit down with Israel until it stops all construction in the West Bank and east Jerusalem, saying it is eating up lands they claim for their future state. Israel, which captured both areas in 1967, has slowed settlement construction in the West Bank, but has applied no restrictions in east Jerusalem, which Netanyahu hopes to retain.


Israel also says negotiations should begin immediately with no conditions, but the Palestinians accuse Israel of heaping plenty of conditions of its own, including the demilitarization of a future Palestinian state, the retention of east Jerusalem and now, a military presence along Jordan’s border.


The Israeli leader heads a coalition largely opposed to the sweeping territorial concessions that would be necessary to clinch a peace deal with the Palestinians. He himself had long refused to endorse the concept of Palestinian statehood, doing so only in June under intense U.S. pressure.


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Tijuana floods leave 10 missing; at least 1 dead

In World on January 22, 2010 at 10:45 am

Rains have unleashed heavy flooding in parts of the Mexican border city of Tijuana, killing a 5-year-old girl and leaving at least 10 other people missing, officials said Thursday.


Storms also caused a plane to skid off the runway Thursday in the Tijuana International Airport. Nobody was hurt.


Four days of storms have swelled the Rio Tijuana, which reaches the United States, sending torrents of water into some neighborhoods of the city across the border from San Diego.


A flash flood swept away a car with a pregnant woman and her three children inside in the hilly Canon de los Laureles neighborhood Wednesday night, the Baja California state prosecutors‘ office said in a statement. Police later found the car with the woman, unharmed, and her 5-year-old daughter dead. The two other children, 7 and 2, are missing.








Tijuana police officers stand guard on sand bags placed to prevent the police station from flooding in Tijuana, Mexico,

Tijuana fire chief Rafael Carroll said the children are among 10 people missing and feared swept away by floods.


At the airport, an Aeromexico flight originating in the northeastern city of Monterrey struggled to land and then skidded off the runway, its left wing ending up buried in the mud, said Baja California State Gov. Jose Guadalupe Osuna.


One passenger, Clara Martinez Gutierrez, said the plane circled the airport several times before trying to land. She said the plane jumped upon landing and passengers were told to get into emergency positions.


“The pilot controlled the plane well, but in the end the left wing ended up buried in the mud,” she said.


Meanwhile, an American citizen drowned Thursday morning when a huge wave swept him out to sea as he fished by the shore in the Migrino area of the southern part of the Baja California Peninsula, said local fire chief Gabriel Garcia Tinoco. The Mexican navy found the body of the California man at sea.


The area where the man drowned is known for rough seas, and his death appeared unrelated to the storms affecting the northern part of the peninsula.


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Bankrupt Japan Airlines scrambles to reassure passengers

In World on January 21, 2010 at 12:59 am

TOKYO, Jan 20, 2010 (AFP) – Japan Airlines sought to reassure the travelling public Wednesday that it will keep flying despite declaring bankruptcy as its share price dropped to a new record low of just two US cents.


The debt-laden carrier apologised in full-page newspaper advertisements for causing “tremendous worries to customers” and promised that “JAL will keep flying” and that passengers’ air miles will remain valid.








JAL President Haruka Nishimatsu (L) and JAL group provisional acting COO Masato Uehara (R) bow their heads to aplogize at a press conference in Tokyo on January 19, 2010. AFP photo

“Please be reassured and use us as before,” the company pleaded.


The once iconic airline, a symbol of Japan’s rise to prosperity, filed for bankruptcy protection Tuesday with 26 billion dollars in debt in the country’s biggest post-war corporate failure outside the financial sector.


It is set to undergo a painful overhaul under a new corporate chief, with more than 15,600 jobs to be cut, reducing the workforce by a third, and many loss-making routes expected to be slashed.


JAL, which carries more than 50 million passengers a year, is set to receive almost 10 billion dollars in public funds and emergency loans under a three-year turnaround plan.


The Tokyo Stock Exchange will delist JAL shares by February 20, a move expected to wipe out shareholders’ investments.


JAL shares were trading at a record low of two yen (two US cents), down three yen or 60 percent from Tuesday’s close. The price could theoretically fall to a rock-bottom one yen.


“There are still people who are trading JAL, including those who are enjoying a one-month game, with the downside risk limited to one yen,” said Hideyuki Higashi, a strategist at SMBC Friend Securities.


The company has made no announcement regarding its tie-up talks with American and Delta Air Lines, which are in a bidding war for a slice of the carrier, eyeing its lucrative Asian landing slots.


JAL is understood to prefer switching its alliance from the American Airlines-led oneworld grouping to SkyTeam with Delta.


But it is expected to take some time for JAL and Delta to clear anti-trust hurdles and get approval from US authorities for joint operations.


The government has tapped Kazuo Inamori, a 77-year-old entrepreneur, business guru and ordained Buddhist monk, to run the stricken airline during its overhaul, replacing Haruka Nishimatsu, who resigned as president Tuesday.


Yasuhiro Matsumoto, a credit analyst at Shinsei Securities, voiced optimism JAL will successfully implement the restructuring plan but said the company still lacks a solid long-term vision.


He said the turn-around plan involves “getting rid of money-losing businesses to return to profit and is not based on unfounded optimism that travel demand will grow in the future.”


However, he said, the government still “has no growth strategy. It doesn’t have a strategy on how JAL should design its international network.”


The bankruptcy, shocking to many Japanese, dominated newspaper front pages.


The Nikkei business daily said debt-ridden JAL’s failure should serve as a warning to other companies and the government in a country where the public debt now stands at about 180 per cent of gross domestic product.


“If you shun the pain that is ahead of you, greater pain will come someday,” the Nikkei warned. “The fall of JAL, which shone in the past, sends this message to the state and companies.”


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Grisly massacre footage shown at Philippine trial

In World on January 21, 2010 at 12:59 am

MANILA, Jan 20, 2010 (AFP) – A Philippine politician accused of massacring 57 people displayed no emotion Wednesday as grisly footage was shown in court of the victims’ mangled and bloodied bodies being pulled from mass graves.


The video clips were part of evidence introduced by prosecutors against Andal Ampatuan Jnr, who is charged with murder over the election-related killings in the southern province of Maguindanao in November last year.








Datu Unsay Mayor, Andal Ampatuan Jr. (C)the prime suspect in the massacre of 57 people in Maguindanao province is led by a National Bureau of Investigation agent into a courtroom during the resumption of his trial at the national police headquarters compound in Manila on January 20, 2010 (AFP photo)

Filmed by a local government employee who accompanied police as they retrieved the victims from the mass graves in the two days after the murders, the video showed bloodied bodies, some of which were already decomposing.


As the footage was shown, a sister of one of the female victims broke down and had to be helped out of the courtroom.


A male lawyer representing the victims also rushed out of the silent courtroom, covering his mouth as he headed for the bathroom to vomit.


However Ampatuan Jnr, who has pleaded not guilty, had no visible reaction to the footage, at one point applying liniment to his neck as he stifled a yawn.


“He looked bored. It was like the most ordinary thing to watch,” Lilian de Lima, head of the government’s Commission on Human Rights who was in the courtroom, told reporters.


Prosecutors allege Ampatuan Jnr and about 100 of his gunmen abducted and shot dead the victims to stop a rival, Esmael Mangudadatu, from running against him for the post of Maguindanao governor in May elections.


Mangudadatu’s wife and pregnant sister, as well as at least 30 journalists travelling with them, were among the 57 killed. Mangudadatu’s relatives had been on their way to an election office to register his candidacy.


Police have said Ampatuan Jnr’s father and namesake, the patriarch of the clan who was then governor of Maguindanao, should also be charged over the killings.


Ampatuan Snr and several other clan members were arrested after martial law was briefly imposed in Maguindanao and charged with rebellion.


However no date for his rebellion trial has been set, and prosecutors have yet to lay murder charges against him.


Before the killings, the Ampatuans were close political allies of President Gloria Arroyo, who armed and used them to help contain Muslim separatist rebels in the southern Philippines.


 
 
politician accused of massacring 57 people displayed no emotion Wednesday as grisly footage was shown in court of the victims’ mangled and bloodied bodies being pulled from mass graves.


The video clips were part of evidence introduced by prosecutors against Andal Ampatuan Jnr, who is charged with murder over the election-related killings in the southern province of Maguindanao in November last year.


Filmed by a local government employee who accompanied police as they retrieved the victims from the mass graves in the two days after the murders, the video showed bloodied bodies, some of which were already decomposing.


As the footage was shown, a sister of one of the female victims broke down and had to be helped out of the courtroom.


A male lawyer representing the victims also rushed out of the silent courtroom, covering his mouth as he headed for the bathroom to vomit.


However Ampatuan Jnr, who has pleaded not guilty, had no visible reaction to the footage, at one point applying liniment to his neck as he stifled a yawn.


“He looked bored. It was like the most ordinary thing to watch,” Lilian de Lima, head of the government’s Commission on Human Rights who was in the courtroom, told reporters.


Prosecutors allege Ampatuan Jnr and about 100 of his gunmen abducted and shot dead the victims to stop a rival, Esmael Mangudadatu, from running against him for the post of Maguindanao governor in May elections.


Mangudadatu’s wife and pregnant sister, as well as at least 30 journalists travelling with them, were among the 57 killed. Mangudadatu’s relatives had been on their way to an election office to register his candidacy.


Police have said Ampatuan Jnr’s father and namesake, the patriarch of the clan who was then governor of Maguindanao, should also be charged over the killings.


Ampatuan Snr and several other clan members were arrested after martial law was briefly imposed in Maguindanao and charged with rebellion.


However no date for his rebellion trial has been set, and prosecutors have yet to lay murder charges against him.


Before the killings, the Ampatuans were close political allies of President Gloria Arroyo, who armed and used them to help contain Muslim separatist rebels in the southern Philippines.


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Haiti aid relief steps up gear as US troops pour in

In World on January 21, 2010 at 12:58 am

PORT-AU-PRINCE, Jan 19, 2010 (AFP) – US troops fanned out across the ruined Haitian capital Tuesday as the military ramped up a huge aid operation with tensions mounting on the streets a week after the catastrophic quake.








A US Blackhawak helicopter hovers over a landing zone at the airport in Port-au-Prince on January, 19, 2010. (AFP photo)

Camped out under makeshift tents among the rubble of buildings flattened by last Tuesday’s devastating 7.0 magnitude quake, desperate survivors were hunting for food as international aid finally began flowing.


The Haitian government said 75,000 people had been killed in the quake, with another 250,000 injured and more than a million left homeless.


While the full scale of the disaster remains unclear, extraordinary stories of children and adults surviving under collapsed buildings provided rare glimmers of hope.


In one, dubbed “a miracle” by rescuers, Mexican firefighters pulled an elderly woman alive from the ruins of Haiti’s Roman Catholic cathedral.


But on the streets, tensions are running high between local police and many people as looting has become a survival strategy.


“Look, when you are hungry and poor, nobody helps, you have to steal,” a defiant young man named Vicent said, as people plunged into the ruins of a flattened supermarket in the hope of finding food or something to sell.


On Tuesday, US paratroopers descended from helicopters to secure the presidential palace, a once elegant white building in Port-au-Prince now in ruins and surrounded by a squalid refugee camp.


From there, a 100-strong squad of soldiers marched to the city’s general hospital, which is swamped with injured people.


“We are here to provide security to the hospital. We work with the government of Haiti. We have rules of engagement, but we are on a humanitarian mission,” Sergeant Bill Smith told AFP.


In a multi-pronged operation, US Marines also landed southwest of the capital Port-au-Prince to link up with UN peacekeepers and assess conditions to start moving in more troops and equipment.


State Department spokesman Gordon Duguid said there were 12,000 troops in or around Haiti, and about 2,200 Marines and sailors are also expected to take part in the relief operation.


The military arrival at the presidential palace was not welcomed by all of the 50,000 destitute refugees camping outside. “It’s an occupation. The palace is our power, our face, our pride,” said Feodor Desanges.


But Duguid stressed: “Our troops are here at the invitation of the people in the name of your president. As soon as the Haitian people no longer need our presence, we will leave.”


Amid reports of sporadic looting, the UN Security Council voted unanimously to send 3,500 extra UN troops and police to Haiti to help maintain order and protect aid convoys.


Relatives told AFP that Haitian police killed a 15-year-old girl, Fabienne Cherisma, while firing warning shots over looters in the capital.


Some witnesses in the angry crowd, including the girl’s father, said a policeman had aimed deliberately at the girl, while others spoke of a warning shot that went astray.


In one extraordinary survival story, Anna Zizi, aged 69 or 70, was pulled from rubble at about 3:30 pm, two hours short of a full week after the quake struck.


“It seems rescuers were communicating with her and managing to get water to her through a tube. She was singing when she emerged,” said Sarah Wilson, of British charity Christian Aid.


But with hopes of finding more survivors fading, the deputy commander of the military operation in Haiti said US forces would soon switch the focus of the operation to recovering bodies.


“We fully expect that we will transition very soon from the search phase to the recovery phase, and obviously we continue to be in prayer,” said Major General Daniel Allyn.


Allyn said there were now around 200 daily flights at the capital’s damaged airport, and that two additional airstrips, in the coastal city of Jacmel and in San Isidro in neighboring Dominican Republic, would be in use by Thursday.


In a huge global effort, more than 1.2 billion dollars has been pledged in aid funding for Haiti, United Nations data showed Tuesday.


International efforts are also focusing on rebuilding the country, with a major donor conference set for Monday in Montreal.


Meanwhile, in a surreal scene, the giant 3,600-berth cruise ship Liberty of the Seas dropped anchor off the port of Labadee where Royal Caribbean International leases a private resort with beautiful beaches.


The company, which has donated one million dollars to the Haiti relief effort, defended its decision to keep taking passengers there by saying it was important to keep supporting the Haitian economy.


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Prince William eyes Sydney real estate

In World on January 21, 2010 at 12:58 am

SYDNEY, Jan 20, 2010 (AFP) – Britain’s visiting Prince William said Wednesday he was so thrilled by his warm welcome to Sydney that he’d like to buy a house in the Australian harbourside city.








Britain’s Prince William (R) poses for photos with New South Wales premier Kristina Keneally before the Sydney opera house on January 20, 2010 (AFP photo)

William, 27, told guests at a traditional Australian waterfront barbecue in his honour that he had enjoyed “the most warm welcome ever, not just with the weather but with all Sydney people.”


“It has been a terrific couple of days in Sydney, and because of that I’ve joked that I will actually try and buy a house in Sydney,” the prince said.


“So if any of you have got any properties for sale then please let me know.”


The prince was mobbed by hundreds of well-wishers when he arrived at the gathering, which offered him stunning views of the city’s famed Opera House and Harbour Bridge on the second day of a three-day whistlestop tour of Australia.


Dressed casually in an open-collared shirt and loafers, the prince enthused about his surroundings, gesturing across glittering waters to the Opera House, which sat against a cloudless blue sky.


“What a view it is too, I’ve always wanted to see the Opera House,” said William, in his first public remarks since landing in Australia on Tuesday.


“The last time I was here and I saw it, it was through very small eyes and I don’t quite remember very much about it.”


The open-air barbecue topped off a two-day stay in Sydney for the young prince, who last visited Australia in the arms of his late mother, Princess Diana, when he was just nine months old in 1983.


William requested the unofficial trip as a way to get to know the country and its people, taking in a poor inner-city Aboriginal neighbourhood and rehab centre for drug addicted youth as part of his less-than-conventional itinerary.


His laid-back manner and ready humour won the praise of press and punters alike, with many likening him to his much-beloved late mother.


Some in the crowds which gathered across the city to see the prince greeted him with the affectionate nickname “Willie Wombat,” which was bestowed upon him during his last visit as an infant.


The prince took a self-deprecating dig at his musical tastes after a rap jam performance by hip-hop artists at a youth dug rehab centre, saying his choice of music often made him the butt of jokes.


“I can’t do any beatboxing, I’m not so good at that,” he told Prime Minister Kevin Rudd, referring to the vocal percussion stylings of the hip-hop trio before them.


“I normally get the piss taken out of me for my choice of music,” he joked.


“Mine’s very varied — I like rock, Linkin Park… Kanye West.”


His marksmanship impressed soldiers at a major army base on the city’s outskirts, winning approval with his willingness to get down on his belly for a live firing exercise with elite snipers returned from Iraq and Afghanistan.


“I understand he has been in the Air Force,” said Private Jace Barnett of William, who graduated as a fully-fledged Royal Air Force helicopter pilot just before his trip to Australia.


“It would be a bit embarrassing if we let a Rafie beat us,” Barnett joked to state radio, admitting there had been some good-natured rivalry with the prince on the rifle range.


Second in line to the British throne, William was welcomed to Australia Tuesday with a traditional Aboriginal “smoking ceremony” in the poor inner-city neighbourhood of Redfern, which was presided over by an elder daubed in body paint and bearing smouldering gum leaves.


He met with Aboriginal elders to discuss, among other things, the repatriation of indigenous artefacts and remains, including the head of indigenous warrior Pemulwuy.


William reportedly slipped out for a seafood platter and a few beers at exclusive Sydney nightspot Bungalow 8 on Tuesday night.


He will visit bushfire-ravaged areas near Melbourne on Thursday before returning home the following day. His Australia tour follows an official visit to New Zealand, where he represented his grandmother Queen Elizabeth II for the first time.


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