News & Reports 2012-05-13

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In This EditionLarge scale anti-austerity demonstrations 2 are held in cities across Europe including Barcelona and Budapest.
A new poll shows Greece's radical 3 leftist Syriza party will head for the first place in fresh parliamentary votes after rounds of failed attempts to form a coalition 4 government.
The 2012 Yeosu Expo featuring challenges posed by climate change opens to the public in South Korea.
And international airlines tap business potential in China as an increasing number of Chinese tourists travel overseas.
Hot Issue ReportsEconomic Woes 5 Spark Protests in Spain & HungaryLarge anti-austerity demonstrations were held in cities across Europe on Saturday, including Barcelona, Spain and Budapest, Hungary.
It has been a year since the government enacted 6 deep spending cuts to reduce the national debt, but many people blame those measures for deepening families' financial plight 7.
"Everything is getting worse. Budget cuts are ongoing 8 in healthcare and education. This demonstration 1 is about all that. Mostly about spending cuts and the suffering of the people."Spain is in deep economic difficulty, prompting fears it may need a bailout like Greece, Ireland and Portugal.
It is in recession, and unemployment stands at almost 25 percent - the highest among the 17 countries eurozone. Half of Spaniards under the age of 25 are out of work.
Meanwhile, in the Hungarian capital Budapest, thousands of supporters of Hungary's far right Jobbik party marched in protest at the government's economic policies, including a series of tax rises and other austerity measures the government said are needed to keep the country's budget deficit 9 under control and support growth.
The protesters said these policies were dictates 10 of the European Union and international lenders.
"The standard of living in Hungary just keeps falling and not rising, and since the European Union membership it has only got worse, I don't feel that it would have brought us any good economically and otherwise."The party leader said they would continue rallies in each major Hungarian city in the coming several weeks to demand fair wages, education, law and order.
Leftist Syriza Projected to Win Most Votes in New ElectionsA new poll now shows Greece's radical leftist Syriza party will head for the first place in fresh parliamentary votes after rounds of failed attempts to form a coalition government in the debt-saddled country.
According to the poll by Metron Analysis, backing for the anti-bailout Syriza stands at 25.5 percent - almost 9 points up on its May 6th voting result.
New Democracy gains slightly, rising to some 22 percent, while Socialist 11 Pasok comes third with 14.6 percent.
The poll also shows Syriza leader Alexis Tsipras as the most popular candidate for prime minister with 19 percent of votes.
Many Greeks have been disappointed at the international bailout terms, which include deep wage cuts and sharp decrease in government spending to reduce budget deficits 12.
The country has been deeply divided over the bailout issue and many voters are hoping for a change.
"The people will decide what will happen, there's nothing more to say. But I want to believe that Tsipras will be the first party.""I am troubled because it is the unknown, this is a fact. However we must try something different. The old political system has given everything it had to give. Perhaps the previous establishment must step aside for the younger politicians."Backers of the bailout say the wage cuts, tax hikes and economic reforms demanded by Brussels are the only way Greece can hope to become solvent 13. But opponents say it is self-defeating - making Greece's debt problem even worse and without support for economic growth.
The younger generation has been hit particularly hard - more than half of Greek youth are unemployed 14. They appear to have found a hero in Tsipras, a boyish 37-year-old civil engineer, ex-Communist and former student leader.
Greece's president is scheduled to meet party leaders Sunday in a last-ditch effort to broker 15 a deal for a coalition government. If that fails, new parliamentary elections are expected be held next month.
Barroso Warns Greece, Merkel Says Europe Can Navigate 16 CrisisFollowing Greece's deadlocked 17 politics, European Commission President Jose Manuel Barroso said Greece may have to leave the eurozone if it doesn't respect the rules.
"I very much respect the Greek democracy and, of course, the Greek parliament. But I also have to respect the other 16 parliaments that have approved the program. So, of course, the agreements have to be respected by everybody. And, if the agreements are not respected, it means that we are not in a condition to continue with a country that does not respect the agreements."Meanwhile, German Chancellor 18 Angela Merkel said on Saturday that she believed Europe was strong enough to withstand the ongoing financial crisis.
"I believe we are strongly united by our common ideas regarding democracy, freedom of travel, freedom of speech, freedom of religion. On the other hand, it is becoming obvious to people that there are seven billion people on the planet, we in Germany are the largest in the EU with 80 million, and if we want to accomplish something together in this world, then we'll need more than ourselves."Merkel also said that Germany is expecting French president-elect Francois Hollande's visit to Berlin on Tuesday, and the two leaders will exchange views on austerity and growth.
Syria Government Asks UN Peace Broker to Tackle "Armed Groups"Syria has urged international mediator 19 Kofi Annan to take action against "armed groups" as an official funeral was held for 55 people killed by twin bombings in Damascus earlier this week.
Hundreds took part in the funeral service at the Osman Mosque 20 in the Syrian capital. Mourners later demonstrated outside to condemn 21 the blasts and throw support behind President Bashar al-Assad.
Among the official mourners was the Syrian Information Minister Adnan Mahmoud. He says the attacks should remind Kofi Annan, the UN peace broker, to tackle "armed groups" in Syria.
"This terrorist escalation 22, through car bombs with tons of explosives that target Syrian people is a continuation of the bloody 23 terrorist coalition between the armed groups and al-Qaeda, along with the regional and western countries that back those armed groups with weapons and money. It represents a serious violation 24 to the Security Council's resolutions that aim to fight terrorism and to Kofi Annan's ceasefire plan."The attacks, by two suicide car bombers 25, killed 55 people and wounded some 400 on Thursday. Those were the deadliest in Damascus since the unrest began 14 months ago.
The U.N. Security Council has strongly condemned 26 the "terrorist attacks", urging all parties to the conflict to cease armed violence and comply with a U.N.-backed peace plan.
The United Nations has already deployed 27 monitors in Syria, supervising a ceasefire in a country, which has seen thousands of people killed in a prolonged conflict.
Shipments for UN Mission in Syria Arrive in DamascusMeanwhile, a Turkish airplane has landed in Damascus airport, carrying six armored cars for the U.N. Supervision 28 Mission in Syria.
Vassilis Bontosoglou, head of the European Union Delegation 29 in Syria, says the six cars are part of a greater shipment that includes 24 armored cars donated by the EU.
"This shipment is part of the European Union assistance to the Kofi Annan plan. It's 24 armoured cars which will delivered to the UN observers mission. This is a part of an overall engagement with the European Union which has committed through the UN Security Council in order to do its utmost regarding the Kofi Annan plan."Meanwhile, on the ground, a group of people have attacked a convoy 30 of UN monitors who were holding a field visit to Dumeir, a Damascus suburb.
Syrian state TV said a U.N. monitors' convoy was attacked by a group of people who hit the cars with stones and wrote insults on the vehicles.
Australian FM Visits ChinaAustralian Foreign Minister Bob Carr is visiting China for the first time after taking office in March.
Carr said he was prepared to push Chinese officials on better trade access for Australian companies in the world's second largest economy, despite an impasse 31 over a free trade agreement between the two countries.
"I think it is appropriate for us to make representations about access, about rules, separate from the FTA. But I spoke 32 to my colleague, Craig Emerson, this week, and he was upbeat about China's motivation as it approaches the opportunities afforded in the FTA."Australia and China began free trade talks in April 2005, but negotiations 33 stalled after the 13th round in December 2008 and strains over the jailing of an Australian Rio Tinto executive for stealing commercial secrets and bribery 34.
After a delay of more than a year, both countries resumed free trade negotiations in February 2010.
Increased Activity at Mexico's Volcano, Worrying ResidentsIncreased activity at Mexico's Popocatepetl volcano, which is some 50 miles to the southeast of the capital, leaves nearby towns covered in ash, worrying residents.
On Saturday residents of the town of Xalizintla, which lies in the shadow of the volcano, had to wear protective face masks to avoid inhaling 35 the volcanic 36 ash which can cause respiratory problems.
Local resident Lizbeth Agustin Cadena began removing the ash from around her home to avoid inhaling it.
"The volcano was very powerful last night and a lot of ash fell so today we woke up and started cleaning up the ash so that we don't get a bad throat because the wind is strong so the ash gets blown into the air."National authorities have raised the warning to the third-highest, indicating possible magma expulsion and explosions of increasing intensity 37.
They also advise that emergency services should ready evacuation teams and shelters, limit access to the area around the volcano and alert air-traffic control systems.
But local policeman Silvano Merino Taquianez said there was no plan in place for a possible evacuation.
"If it gets worse we are going to have to get everyone out here but we are not organized and we don't even have a bus or anything like that."The volcano has spewed smoke and ash sporadically 38 over the last few years and a major eruption 39 in 2000 forced the evacuation of nearly 50,000 residents.
Ocean-themed Yeosu Expo Opens to Public in S. KoreaThe 2012 Yeosu Expo opened to the public on Saturday in South Korea. The event aims to raise awareness 40 of the challenges posed by climate change.
The international exposition employing the theme, "The Living Ocean and Coast: Diversity of Resources and Sustainable Activities" will run for three months. It focuses on the world's oceans and their potential to tackle climate and environmental challenges, which threaten the survival of mankind.
Japanese visitor Futakami Atsushi was the first official visitor to the expo.
"I came here because I like expos and I'm interested in how it would be opened. I have high expectations of the Yeosu expo since I come from a port city, Kobe, and Yeosu is also a port city."Local visitor Kim Min-gyu came with his family.
"There are many interesting facilities here as well as educational ones for children. I need to look around more and see, but it seems like there're so many things to see here. I hope we have more expos in the future."A total of 104 countries are expected to open pavilions at the exhibition which will welcome around 10 million visitors from around the world.
The exhibition also presents South Korea's largest aquarium 41, a 6,000 ton tank, which displays 280 different species of marine 42 creatures. The tank provides visitors with a 360-degree underwater view.
Fitch Cuts JPMorgan's Credit Rating after Trading LossFitch Ratings has downgraded its assessment 43 of JPMorgan Chase & Co., the biggest and most profitable bank in the US.
The move comes a day after JPMorgan disclosed a surprise two billion US dollar trading loss in a portfolio 44 designed to hedge against risks the company takes with its own money.
Fitch says JPMorgan's risk to its reputation and governance no longer merits an "AA-" rating and lowered its long-term issuer default rating one notch 45 to "A+," still considered investment-grade territory.
Fitch says the magnitude of the loss and JPMorgan's hedging position imply a lack of liquidity 46. It also raises questions about JPMorgan's practices, oversights 47 and other key issues.
Other international ratings agencies have also indicated that they will follow suit by cutting the credit rating of the bank.
Teddy Weisberg, an analyst 48 at Seaport 49 Securities, says the problems which occurred at JPMorgan are not isolated 50.
"The banks, since the government began regulating the banks have always figured out how to circumnavigate the rules without breaking them. These guys aren't right all the time. It's impossible, if they were right all the time they wouldn't need the government's help, right, and 2008 is an example of that."JPMorgan's trading loss prompted a sell-off in financial stocks on Friday, but the broader market rose as investors 51 decided 52 this was a problem for investment banks and not other industries.
Thousands Take to the Streets in Support of Same Sex MarriageThousands of Australians marched in rallies throughout major cities around the country on Saturday to support same-sex marriages.
Protesters carried a huge rainbow flag and banners calling for marriage equality in Sydney.
Australian actor and comedian 53 Magda Szubanski told protesters in Melbourne that the push for change will eventually overwhelm politicians.
"This movement, what we are about, is the forces of love, the forces of tolerance 54, the forces of a mature society that can accept difference and learn to live together. Those forces are gathering 55 across the globe. We are part of that."In Brisbane, Australian Prime Minister Julia Gillard was criticized for her stance on gay marriage, as she remained opposed, while polls reveal that most Australian people support gay marriage.
However, three bills in parliament which would allow same-sex couples to marry are unlikely to pass.
Rallies were also held in Perth, Canberra, Adelaide and Hobart.
New Flights Highlight Chinese Tourism Boom to EuropeWith an increasing number of Chinese tourists going abroad, international airlines are eyeing business opportunities in the country.
Finnair has launched the first route to connect Chongqing directly to Europe, with onward 56 transfers to over 50 European cities.
The airline earns half its revenues in Asia, and the company's CEO Mika Vehvilainen said the time is ripe for tapping into the growing ranks of Chinese tour groups from the country's vast interior.
"Actually, already today in China, the outbound tourism has outgrown 57 the inbound tourism, which is fairly interesting. And that rate of growth is about 20 percent a year at the moment. And we have already seen a very healthy booking from tour organizers out of Chongqing into the different destinations in Europe."Finnair is banking 58 on the rapid development of business travelers in Chongqing and the surrounding provinces to deliver the profits.
"There's a lot of growing business opportunities, manufacturing base, and etc in Chongqing. This will attract European business travel, and of course, Chongqing is a tourist destination in its own right. My understanding is there are about 100,000 tourists from Europe that travel to the Chongqing area every year."Home to more than 30 million people in its greater metropolitan 59 area, Chongqing has attracted both Chinese and foreign companies to expand their operations in the city, especially in the electronics, automotive and chemical industries.
Emerging as a prime business and tourism hub, Chongqing is expanding its airport, which is expected to handle 45 million passengers by 2015.
China Daily: Manila's Antics CostlyOver the past month, the Philippines has put its ties with China at risk by provoking tensions over an island in the South China Sea.
Beijing has responded with restraint but Manila's continued anti-China moves have threatened to further undermine the bilateral 60 ties.
Earlier this week, China's travel agencies suspended tourist trips to the Philippines due to safety concerns about Chinese citizens in that country.
An editorial in the China Daily says that it is in the interests of the Philippines to repair relations with China as a decline in bilateral ties will harm Manila's interests most.
The newspaper notes that there has been deep economic and tourist-related interaction between the two countries in recent years.
Currently, Beijing is Manila's third largest trading partner, with bilateral trade hitting a record high of $30 billion last year.
China Daily contends that it is logical that Manila will strive for a stable, growing relationship with Beijing, especially with regards to trade.
But in reality, a Philippine gunboat harassed 61 Chinese fishermen in the South China Sea in early April. The country then sent more ships to the area to face off with Chinese fishery administration vessels 62.
Meanwhile, ill-advised politicians have openly enlisted 63 third-party help to back its maritime 64 territorial 65 claims.
The commentary points out that Manila's claim over the Huangyan Island has no sound or legal basis.
The article states that the island was not included as Philippine territory within its own official maps published in 1981, 1984 and 2006. Some Filipinos are also asking how and when their country suddenly acquired the island.
China Daily says Manila is only shooting itself in the foot by continuing with its antics. The newspaper warns Manila to keep in mind that China is fully 66 prepared to respond to anything the Philippines might do to further escalate 67 the dispute.
Developing Countries Should be Alert to Developed Countries Monetary 68 PoliciesSince the breakout of the international financial crisis more than three years ago, the central banks of developed countries have adopted numerous unconventional monetary policies and measures in an effort to obtain huge amounts of seigniorage from the world.
The US, the EU, the UK, and Japan have all launched large-scale quantitative 69 easing policies so as to buy company securities and government bonds from bond markets in an effort to stabilize 70 bond markets and strengthen the liquidity of their respective banking systems.
An editorial in China's People's Daily points out that the international community should pay close attention to such monetary policies, as the cost and risks of such policies have now shifted to developing countries.
The article says developing countries have contributed greatly to the coffers of developed countries because their foreign exchange reserves increased about 3 trillion U.S. dollars during the past few years, while that of China doubled.
The article states that developed countries are the issuers of international reserve currencies. As a result, the increase of government assets and monetary base caused by the quantitative easing policies has lead to the increase of foreign exchange reserves for other countries.
The article goes on to state that currently, the credit functions of national commercial banks within developed countries have not totally recovered from the impact of the financial crisis while increases in liquidity have not yet been fully converted into credit growth. Therefore, severe inflation has still not appeared in developed countries.
The article warns that in the future, developing countries could suffer losses caused by the inflation and the depreciation 71 of international reserve currencies if developed countries and their economies cannot rapidly and effectively take back these huge monetary bases.