Sabtu, 8 Disember 2012

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Egypt's Leader Seen on a Path To Martial Law - New York Times

Posted: 08 Dec 2012 09:29 AM PST

CAIRO — Struggling to quell street protests and political violence, President Mohamed Morsi is moving to impose a version of martial law by calling on the armed forces to keep order and authorizing soldiers to arrest civilians, Egyptian state media announced Saturday.

If Mr. Morsi goes through with the plan, it would represent a historic role reversal. Before the ouster of Hosni Mubarak last year, Egypt's military-backed authoritarian presidents had spent six decades warning against the threat of an Islamist takeover and using martial law to hold onto their power. Mr. Morsi, a former leader of the once-banned Muslim Brotherhood, and many of his fellow Islamists spent months in jail under those decrees for their opposition to the government.

A turn back to the military would come just four months after Mr. Morsi managed to pry political power out of the hands of the generals, who refused for months after his election to allow him full presidential power.

The flagship state newspaper Al Ahram reported that Mr. Morsi "will soon issue a decision for the participation of the armed forces in the duties of maintaining security and protection of vital state institutions." The military would maintain its expanded role until the completion of a referendum on a draft constitution next Saturday and the election of a new Parliament expected two months after that.

The announcement of impending martial law would represent the steepest escalation yet in the political battle between Egypt's new Islamist leaders and their secular opponents over the Islamist-backed draft constitution — a standoff that has already threatened to derail Egypt's promised transition to a constitutional democracy.

Calling in the army could overcome the danger of protests or violence that might disrupt the planned referendum on the constitution and the election of a new parliament to follow. But resorting to the military to secure the vote could undermine Mr. Morsi's efforts to end the political crisis threatening his rule if it delegitimizes the new charter as an expression of national consensus and a vote of confidence in him.

Although the plan would not fully suspend the civil law, it would nonetheless have the effect of suspending legal rights by empowering soldiers under the control of the defense minister to try civilians in military courts.

There was no sign of military tanks in the streets Saturday evening, but the military appeared for now to back Mr. Morsi. Soon after the news of Mr. Morsi's plans, a military spokesman read a statement over state television that echoed the reports of Mr. Morsi's planned decree.

The military "realizes its national responsibility for maintaining the supreme interests of the nation and securing and protecting the vital targets, public institutions, and the interests of the innocent citizens," the spokesman said, emphasizing the "sorrow and concern" over recent developments and warning of "divisions that threaten the state of Egypt."

"Dialogue is the best and sole way to reach consensus that achieves the interests of the nation and the citizens," the spokesman said. "Anything other than that puts us in a dark tunnel with drastic consequences, which is something that we will not allow."

Mr. Morsi's relationship with the military has been fraught since he was elected president in June in Egypt's first free vote for president. The generals at first had sought a continuing role in Egyptian politics — in part their supporters argued, as a safeguard against an Islamist takeover.

But after taking office Mr. Morsi spent months courting the generals, sometimes earning the derision of liberal activists for his public flattery of their role. In an August decree, he relied on the backing of some top officers to remove the handful of generals who had insisted on maintaining a political role. And then last month, despite the protests of the same activists, the new Islamist-backed draft constitution turned out to include protections of the military's autonomy and privileges within the Egyptian government, suggesting an understanding between the two sides that may now come into effect.

Under the president's planned martial law order, the defense minister would determine the scope of the military's role, Al Ahram reported. Military officers acting as police officers would be authorized "to use force to the extent necessary to perform their duty," the newspaper said.

Silvio Berlusconi confirms he will run – again – to be Italy's prime minister - The Guardian

Posted: 08 Dec 2012 09:21 AM PST

Silvio Berlusconi
Silvio Berlusconi: 3/1 to become the next Italian prime minister. Photograph: Giuseppe Cacace/AFP/Getty Images

Never a man to let defeat – or scandal – keep him down, the disgraced former prime minister of Italy Silvio Berlusconi has announced he will run once again for the country's top job.

With three colourful terms behind him, Berlusconi confirmed he would try for a fourth time to become premier, saying he was doing it out of "a sense of responsibility" days after his party withdrew its support for the technocrat government of the current prime minister, Mario Monti.

The media mogul told reporters he was running to win and that "the campaign is already on".

Monti took the loss of Berlusconi's support calmly, calling the situation "manageable", despite it increasing the likelihood of fresh elections. Although Italy's economy is still struggling, Monti is credited with calming the country's financial markets and rescuing it from financial disaster.

Monti, who is a life-appointed senator, has said he will not stand in next year's vote, but is willing to step in afterwards if the result is not clear.

The British betting firm Ladbrokes gave 3/1 odds on Berlusconi becoming the prime minister in 2013.

Berlusconi stepped down last year amid a severe debt crisis. Allegations of his involvement with an underage prostitute and reports that he hosted sex-filled "bunga-bunga" parties also clouded his premiership. He has since been convicted of tax fraud and faces low favourability ratings in the polls.

The three-time prime minister got his start selling vacuum cleaners and singing on cruise ships. In 1971, Berlusconi founded a local cable firm, Telemilano, which grew into the country's largest media company, Mediaset. He has since expanded his media empire to include Italy's largest publishing house, Mondadori, and the newspaper Il Giornale. Other business interests include owning the globally popular football club, AC Milan.

Berlusconi entered politics in 1993, forming his own party and naming it after an AC Milan chant used by fans, Forza Italia, which means "go Italy". He rose to power the next year, winning the elections, and went on over the next 14 years to win twice more and lose twice, both times to Romano Prodi.

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Jumaat, 7 Disember 2012

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US stocks end the week mixed

Posted: 07 Dec 2012 06:22 PM PST

NEW YORK: A surprise slide in the US unemployment rate to 7.7 per cent for November gave markets an initial boost Friday, but stocks ended the session mixed.

The Dow Jones Industrial Average rose 81.09 points (0.62 per cent) to 13,155.13 in closing trade.

The S&P 500 gained 4.13 points (0.29 per cent) to 1,418.07, while the Nasdaq Composite lost 11.23 points (0.38 per cent) at 2,978.04.

"Stocks ended the week mixed, with traders struggling to find direction amid a better-than-expected jobs report and a disappointing drop in consumer confidence, as well as a lack of progress on resolution to the fiscal cliff," said Charles Schwab & Co. analysts.

The November jobs market data came in better than expected, with the economy adding 146,000 jobs, a gain from October's downwardly revised 138,000.

Meanwhile, the University of Michigan consumer sentiment index declined to 74.5 from November's 82.7, which had been the best level in five years.

Also weighing on market sentiment was a continued impasse on the so-called fiscal cliff, with top Republican congressman John Boehner saying there was "no progress" in talks about looming tax hikes and spending cuts due in January. In the absence of a deal, the measures were expected to push the country into recession.

Stocks in focus included bailed-out insurance group AIG, which announced Friday it was in discussions to sell a majority stake in International Lease Finance Corporation (ILFC) -- one of the world's top aviation leasing firms -- to a consortium of Chinese companies. Government-controlled AIG gained 2.6 per cent.

Dow member Bank of America was among the most actively traded stocks, rising 1.7 per cent. JPMorgan Chase rose 2.6 per cent.

Shares of Copper miner Freeport-McMoRan, which lost some 20 per cent in two days as investors frowned on its deal to buy two related companies at generous prices in deals worth US$9 billion, gained 2.9 per cent.

In the technology sector, Apple shares, which have been volatile all week, lost 2.6 per cent.

Online video giant Netflix dropped 0.2 per cent, a day after announcing it faces a possible penalty from US regulators for comments made by its top executive on his Facebook account about subscriber activity. -- AFP

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Economy Adds 146000 Jobs - Wall Street Journal

Posted: 07 Dec 2012 07:58 AM PST

Article Excerpt

WASHINGTON—U.S. job growth picked up and the unemployment rate fell to a four-year low in November as the labor market shrugged off superstorm Sandy, the latest sign of a steady if unspectacular economic recovery.

U.S. nonfarm payrolls increased by a seasonally adjusted 146,000 last month, the Labor Department said Friday. The unemployment rate, obtained by a separate survey of U.S. households, fell two-tenths of a percentage point to 7.7%, the lowest level since December 2008.

Friday's report is the first measure of Sandy's impact on payrolls. The storm made landfall Oct. 29 and caused severe damage in New York and ...

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Cairo Protesters Take to Streets as Political Crisis Deepens - New York Times

Posted: 07 Dec 2012 09:00 AM PST

CAIRO — Supporters and opponents of the government of President Mohamed Morsi staged competing demonstrations on Friday after noon prayers, throwing Egypt deeper into political crisis.

Thousands of pro-government Islamists attended the funeral of two men killed in clashes on Wednesday outside the presidential palace, the site of continuing demonstrations by the opposition. "With blood and soul, we redeem Islam," they chanted, while calling opposition leaders "murderers" the Associated Press reported.

Simultaneously, thousands of opposition protesters streamed in separate marches toward the presidential palace, gathering there to shout "Leave!, Leave," even though Mr. Morsi does not make his residence in the building. Speakers accused the Muslim Brotherhood, which Mr. Morsi once helped lead, of sparking the violence by sending "hired thugs" to destroy a tent camp set up by the president's opponents, the news agency reported.

Rival protests were reported throughout the country, including in Alexandria in the Nile delta, the tourist center of Luxor and Assiut, in the south, where marchers chanted "No Brotherhood, no Salafis, Egypt is a civic state," the A.P. said.

News reports quoted several leaders of the opposition coalition as saying they would not join the dialogue proposed by Mr. Morsi in a speech on Thursday in which he blamed the outbreak of violence on a "fifth column." He also vowed to proceed with a referendum on an Islamist-backed constitution that has prompted deadly street battles between his supporters and their opponents.

Mr. Morsi spoke a day after the growing antagonism between his supporters and the secular opposition triggered the worst outbreak of violence between political factions here since Gamal Abdel Nasser's coup six decades ago. By the time the fighting ended, six people were dead and hundreds were wounded.

The violence also led to resignations that rocked the government, as advisers, party members and the head of the commission overseeing the planned vote on a new constitution stepped down, citing the bloodshed.

"The National Salvation Front is not taking part in the dialogue, that is the official stance," Ahmed Said, a member of the coalition and head of the liberal Free Egyptians Party, told Reuters.

Several other prominent opposition figures, including Mohamed ElBaradei, the former head of the International Atomic Energy Agency, said they would not participate.

In a message on Twitter, Mr. ElBaradei said the president's offer "lacks the basics of real dialogue."

"We are for dialogue that is not based on arm-twisting and imposing a fait accompli," he said.

The sight of protesters on Cairo's streets has been common since the beginnings of Egypt's transition toward democracy that began with the ouster of former President Hosni Mubarak last year.

In the latest protests, the target of the demonstrations has been the presidential palace in the wealthy suburb of Heliopolis, where protesters converged on Friday.

Since clashes there earlier this week, the elite presidential guard has ringed the palace with barbed wire, tanks and armored vehicles. After Mr. Morsi's speech on Thursday, his opponents mocked his words and called for new demonstrations on Friday.

Some observers said the president speech echoed his predecessor, Mr. Mubarak, who always saw "hidden hands" behind public unrest. Mr. Morsi said that corrupt beneficiaries of Mr. Mubarak's autocracy had been "hiring thugs and giving out firearms, and the time has come for them to be punished and penalized by the law." He added, "It is my duty to defend the homeland."

Mr. Morsi received a phone call on Thursday from President Obama, who expressed his "deep concern" about the deaths and injuries, the White House said in a statement.

"The president emphasized that all political leaders in Egypt should make clear to their supporters that violence is unacceptable," the statement said, chastising Mr. Morsi and the opposition leaders as failing to urge their supporters to pull back during the fight.

Prospects for a political solution also seemed a casualty, as both sides effectively refused to back down on core demands.

The opposition leadership refused to negotiate until Mr. Morsi withdrew a decree that put his judgments beyond judicial review until the referendum — which he refused to do. And it demanded that the referendum be canceled, which he also refused.

The hostilities have threatened to undermine the legitimacy of the constitutional referendum with concerns about political coercion. The feasibility of holding the vote also appears uncertain amid attacks on Brotherhood offices around the country and open street fighting in the shadow of the presidential palace.

Though Mr. Morsi spoke of opening a door for dialogue and compromise, leaders of the opposition and the thousands of protesters surrounding his palace dismissed his conspiratorial saber rattling as an echo of Mr. Mubarak. And his tone, after violence many here view as a national tragedy, seemed only to widen the gulf between his Islamist supporters and their secular opponents over his efforts to push through the referendum on an Islamist-backed charter approved over the objections of other factions and the Coptic Christian church.

Outside the palace, demonstrators huddled around car radios to listen to Mr. Morsi's words and mocked his efforts to blame outside infiltrators for the violence, which began when thousands of his Islamist supporters rousted an opposition sit-in.

"So we are the ones who attacked him, the ones who attacked the sit-in?" one protester asked sarcastically. "So we are the ones with the swords and weapons and money?" asked another.

Some left for the headquarters of the Muslim Brotherhood, where a mob had broken in, looted offices, and made a bonfire out of the belongings of the group's spiritual leader — until riot police officers chased them away with tear gas.

"I never thought I would say this, but even Mubarak was more savvy when he spoke in a time of crisis," said Hossam Bahgat, executive director of the Egyptian Initiative for Personal Rights.

The director of state broadcasting resigned Thursday, as did Rafik Habib, a Christian who was the vice president of the Muslim Brotherhood's Freedom and Justice Party and the party's favorite example of its commitment to tolerance and pluralism. Their departures followed an announcement Wednesday by Zaghoul el-Balshi, the new general secretary of the commission overseeing the planned constitutional referendum, that he was quitting. "I will not participate in a referendum that spills Egyptian blood," Mr. Balshi said.

Mr. Morsi's speech, previously set for 6 p.m. here and delayed for several hours, was his first effort to address the night of deadly violence and the underlying crisis set off by his Nov. 22 decree putting his own edicts above the review of any court until the ratification of a new constitution. He had said he needed those powers to protect the constitutional assembly and planned referendum. He has also said he wanted to head off interference by a counterrevolutionary conspiracy of corrupt businessmen and foreign enemies, cynical opposition leaders willing to derail democracy rather than let Islamists win elections, and the Mubarak-appointed judges who had already dissolved an earlier assembly and the democratically elected Parliament.

Each side of the political battle is now convinced that it faces an imminent coup. Secular groups believe Mr. Morsi is forcing through a constitution that will ultimately allow Islamist groups and religious leaders to wield new power. And the demands to stop the referendum have convinced Islamists that their secular opponents seek to abort the new democracy.

Advisers to Mr. Morsi say he has sought for days to find a way to reach out to his critics and resolve the building tension. In his speech, he offered to withdraw an article of his recent decree whose Orwellian language giving him ill-defined powers to protect the revolution had unnerved his opponents. He invited opposition and youth leaders to join him for a meeting at his palace at 12:30 p.m. on Saturday to try to hammer out some compromise, suggesting certain elements of the draft charter might be revised. And he declared that even if the constitution failed he would relinquish his emergency powers at the referendum on Dec. 15.

But opposition leaders dismissed his offers as all but meaningless. Their main objection to Mr. Morsi's decree is the more essential article removing the judicial check on his power. They said that his proposed dialogue would take place on the first day of overseas voting on the new constitution, giving the meeting little chance of changing the text or the schedule. And the text of the draft constitution, if approved as expected, would already end his emergency powers.

Mr. ElBaradei, the former diplomat now acting as coordinator of the secular opposition, said Mr. Morsi's refusal to postpone the referendum until there was consensus on a new constitution had "closed the door to any dialogue." He argued that the Morsi government's failure to stop the previous night's bloodshed had "made the authority lose its legitimacy."

Nadine Sherif of the Cairo Institute for Human Rights Studies said in a statement: "President Morsi had a choice to either bring the country together or tear it apart. Today it seems clear that he has made his decision and civil war seems looming."

David D. Kirkpatrick reported from Cairo, and Alan Cowell from London. Two employees of The New York Times contributed reporting from Cairo.

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Khamis, 6 Disember 2012

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KL shares open mixed in early trading

Posted: 06 Dec 2012 06:06 PM PST

Share prices on Bursa Malaysia were traded mixed in the early session Friday, tracking losses in selected blue chips,
dealers said.

After 36 minutes of trading, the barometer FTSE Bursa Malaysia KLCI (FBM KLCI) was 0.33 of a point lower at 1,615.90 after opening 0.76 of a point weaker at 1,615.47.

HwangDBS Vickers Research said the key FBM KLCI is expected to back off from the immediate 1,617 resistance level ahead.

"However, if it clears this hurdle, then the benchmark index may be eyeing 1,635 as its next resistance threshold," the research house said in a statement.


Meanwhile, the Finance Index shed 3.71 points to 15,044.81, but the Industrial Index gained 2.4 points to 2,668.73, and the Plantation Index rose 3.76 points to 7,855.75.

The Ace Index added 11.83 points to 4,180.38, the FBMT100 lost 3.32 points to 10,848.85, the FBM Emas declined 2.55 points to 10,995.09, while the FBM Mid 70 index lost 9.029 points to 12,007.61.

There were 113 gainers and 94 losers while 171 counters were unchanged, 1,261 counters untraded and 18 others were suspended.

Volume stood at 130.33 million shares worth RM59.911 million.

Among actives, Karambunai lost 1.5 sen to 12 sen, Takaso Res-Warr inched down a sen to 15 sen, while Nexnation Communication was flat at 11.5 sen.

Heavyweights, Maybank earned two sen to RM9.07, Sime Darby and CIMB rose two sen each to RM8.97 and RM7.57, respectively, while Axiata slipped three sen to RM5.94. Bernama

India second fastest growing aviation mart

Posted: 06 Dec 2012 06:10 PM PST

India will emerge as the world's second fastest growing aviation market by 2016, with 13.1 per cent compound annual growth rate (CAGR), adding 49.3 million new passengers, according to the
International Air Transport Association (IATA).

IATA said Kazakhstan will experience the fastest growth rate at 22.5 per cent CAGR, adding 3.9 million passengers to 2.2 million last year.

In the third spot is China, with 10.1 per cent growth rate, resulting in 158.9 million new domestic passengers, said IATA in its Airlines Industry Forecast 2012-2016.

IATA said no other country is expected to experience double-digit growth rates in the forecast period.


The air transport body said airlines expect to welcome some 3.6 billion passengers in 2016, about 800 million more than the 2.8 billion passengers carried by airlines last year.

This industry consensus outlook for system-wide passenger growth sees passenger numbers expanding by an average of 5.3 per cent per annum between this year and 2016.

The 28.5 per cent increase in passenger numbers over the forecast period will see almost 500 million new passengers travelling on domestic routes and 331 million new passengers on international services.

By 2016, the five largest markets for domestic passengers will be the United States (710.2 million), China (415 million), Brazil (118.9 million), India (107.2 million) and Japan (93.2 million).

As for international freight developments, IATA said the five fastest growing international freight markets over the 2011-2016 period will be Sri Lanka (8.7 per cent CAGR), Vietnam (7.4 per cent), Brazil (6.3 per cent), India (6.0 per cent) and Egypt (5.9 per cent). Bernama

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DeMint to Leave Senate to Run Heritage Foundation - Wall Street Journal

Posted: 06 Dec 2012 09:09 AM PST

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Egypt deploys tanks, troops to keep President Morsi's friends and foes apart after ... - CBS News

Posted: 06 Dec 2012 09:00 AM PST

Updated at 11:50 a.m. ET

CAIRO The Egyptian army sealed off the presidential palace with barbed wire and armored vehicles Thursday as protesters defied a deadline to vacate the area, pressing forward with demands that Islamist leader Mohammed Morsi rescind decrees giving himself near-absolute power and withdraw a disputed draft constitution.

Inside the palace gates, Morsi met with members of his Cabinet and military leaders to discuss the expanding crisis after fierce street battles in an upscale residential suburb of Cairo killed five people and left more than 600 injured in the worst outbreak of violence between the two sides since the Islamist leader's election.

The intensity of the overnight violence, with Morsi's Islamist backers and largely secular protesters lobbing firebombs and rocks at each other, raised the specter that the 2-week-old crisis that has left the country sharply divided would grow more polarized and violent.

Play Video

Morsi to address Egypt as more protests planned

The army's Republican Guard, an elite unit assigned to protect the president and his palaces, surrounded the complex and gave protesters on both sides until 3 p.m. (1300 GMT, 8 a.m. EDT) to clear the vicinity, according to an official statement. The statement also announced a ban on protests outside any of the nation's presidential palaces.

But a group of several dozen anti-Morsi protesters continued to demonstrate across the street from the palace past the military's deadline Thursday afternoon, chanting slogans against the president. And organizers called for a larger evening rally. Meanwhile, members of the Muslim Brotherhood and other Islamists supporting Morsi withdrew from the area after an overnight sit-in.

Inside the palace gates, Morsi held crisis meetings Thursday with Cabinet members and military leaders, including the defense minister, according to a presidential statement.

"The president discussed ways to deal with the situation regarding the political, security and legal landscapes so that Egypt can achieve stability and preserve the gains of the revolution," the statement said.

CBS News correspondent Holly Williams said Morsi was expected to address the nation in a televised address later Thursday.

Egypt has seen sporadic clashes throughout nearly two years of political turmoil after Hosni Mubarak's ouster in February 2011. But Wednesday's street battles were the worst between Morsi's supporters and opponents.

The clashes began after an implicit call by the Muslim Brotherhood and its political party, to which the president belongs, for their members to go to the palace and stage a sit-in that would remove anti-Morsi protesters who were camped out there.

Unlike Mubarak, Morsi was elected in June after a narrow victory in Egypt's first free presidential elections, but many activists who supported him have jumped to the opposition after he issued decrees on Nov. 22 that put him above oversight and a draft charter was later rushed through by his Islamist allies despite a walkout by Christian and liberal factions.

Compounding Morsi's woes, four of his advisers resigned Wednesday, joining two other members of his 17-member advisory panel who have abandoned him since the crisis began.

Six tanks and two armored vehicles belonging to the Republican Guard, an elite unit tasked with protecting the president and his palaces, were stationed Thursday morning at roads leading to the palace in the upscale Cairo district of Heliopolis. The guard's commander, Maj. Gen. Mohammed Zaki, sought to assure Egyptians that his forces were not taking sides.

Play Video

Pro-, Anti-Morsi protestors clash in Egypt

"They will not be a tool to crush protesters and no force will be used against Egyptians," he said in comments carried by the official MENA news agency.

The situation was calm Thursday morning. Thousands of Morsi supporters had camped outside the palace after driving away opposition activists who had been staging a sit-in there, prompting fierce street battles that spread to upscale residential areas. The Brotherhood, which had erected metal barricades and manned checkpoints with rocks and empty glass bottles on hand overnight, withdrew from the area by Thursday afternoon.

"I don't want Morsi to back down," said Khaled Omar, a Brotherhood supporter who had camped out. "We are not defending him. We are defending Islam, which is what people want."

Other Brotherhood supporters outside the palace accused opposition protesters of being Mubarak loyalists or foot soldiers in a coup attempt.

"They want to take over power in a coup. They are conspiring against Morsi and we want him to crack down on them," said one, Ezzedin Khoudir. "There must be arrests."

The violence began when the Brotherhood called on its members to head to the presidential palace against what a statement termed as attempts by the opposition to impose its will by force. In response, thousands descended on the area Wednesday, chasing away some 300 opposition protesters who had been staging a peaceful sit-in outside the palace's main gate since the night before. Clashes later ensued with the two sides using rocks, sticks and firebombs.

State television quoted the Health Ministry as saying Thursday that five people were killed and 644 injured by beatings, gunshot wounds and tear gas inhalation.

A journalist for the independent daily Al-Fagr newspaper was in critical condition Thursday after being shot in the head with a rubber bullet, according to a staff member who spoke to The Associated Press on condition of anonymity in exchange for releasing the information ahead of a formal announcement. The newspaper said it did not know who fired the rubber bullet.

"We raise Egypt's flag but they raise the Brotherhood flag. This is the difference," protester Magdi Farag said as he held the tri-colored national flag stained with blood from his friend's injury in the clashes the night before.

"We will not leave until he leaves," Farag said about the president.

Morsi, meanwhile, remains determined to press forward with plans for a Dec. 15 constitutional referendum to pass the new charter. The opposition, for its part, is refusing dialogue unless Morsi rescinds the decrees giving him near unrestricted powers and shelves the controversial draft constitution, which the president's Islamist allies rushed through last week in a marathon, all-night session shown live on state TV.

Mohamed ElBaradei, a leading opposition reform advocate, said late Wednesday that Morsi's rule was "no different" than Mubarak's.

"In fact, it is perhaps even worse," the Nobel Peace Prize laureate told a news conference after he accused the president's supporters of a "vicious and deliberate" attack on peaceful demonstrators outside the palace.

Wednesday's violence also spread to other cities, with at least two Brotherhood offices set ablaze outside Cairo.

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Rabu, 5 Disember 2012

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US stocks mostly higher

Posted: 05 Dec 2012 03:57 PM PST

NEW YORK: US stocks closed mostly higher Wednesday after some upbeat data on the huge services sector, but market chatter about Apple's prospects sent it tumbling 6.4 percent, weighing on the tech-rich Nasdaq.

Financials moved higher as Citigroup surged 6.3 percent to $36.46, on its announcement of plans to cut four percent of its workforce to slash costs.

The Dow Jones Industrial Average closed the day up 82.71 points (0.64 percent) to finish at 13,034.49.

The S&P 500-stock index rose 2.23 points (0.16 percent) to 1,409.28 while the Nasdaq Composite dropped 22.99 (0.77 percent) to 2,973.70.

"Blue chips took their cue from some mostly positive economic news from around the globe today, but technology stocks pressured the Nasdaq," Charles Schwab & Co. analysts said.

Apple shares fell $37.05 to $538.79. The decline in the stock, which peaked above $700 in September, came as IDC forecast Apple's worldwide tablet share to slip to 53.8 percent this year from 56.3 percent in 2011.

Internet radio Pandora Media plummeted 17.5 percent after reporting third-quarter earnings and revenue above forecasts but offering disappointing guidance for the current quarter.

US economic data was generally positive. The Institute for Supply Management's monthly index on activity in the services sector rose to 54.7, from 54.2 in October.

Bank of America jumped 5.7 percent, JPMorgan Chase added 1.6 percent and Morgan Stanley was up 2.2 percent.

Travelers gained 4.9 percent after saying it will resume share buybacks that had been suspended to estimate damage from superstorm Sandy. The insurer put its net losses from the storm at a preliminary US$650 million.

Mining giant Freeport-McMoRan plunged 16 percent after announcing it will buy Plains Exploration for US$6.9 billion and McMoRan Exploration for US$2.1 billion.

Plains leaped 23.4 percent and McMoRan Exploration skyrocketed 87 percent. -- AFP

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Citi to Cut 11000 Jobs as New CEO Moves to Slash Costs - Wall Street Journal

Posted: 05 Dec 2012 08:59 AM PST

Article Excerpt

Citigroup Inc. set plans to cut 11,000 jobs in the giant bank's first major strategic shift since Michael Corbat succeeded Vikram Pandit as chief executive in October.

The move, announced Wednesday, is the latest illustration of the immense pressure on big banks to take action in response to stagnant revenue and weak stock prices. The decision also shows the company's cost-cutting focus under Chairman Michael O'Neill, a banking veteran who took over for Richard Parsons in April and was known in his past jobs for recommending tough medicine.

More than half the cuts will take place in the company's global ...

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Obama Appeals to Business Leaders on Cliff - Wall Street Journal

Posted: 05 Dec 2012 08:59 AM PST

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