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Nasa signs agreement with Isro for use of Indian satellite

PTI — Thu, 19 Nov 2009 06:45:00 GMT

Washington: US space agency Nasa has signed an agreement with Isro to use data from Indian satellite Oceansat-2, for various American agencies for research activities, including weather forecasting.

Launched on 23 September 2009 using the Polar Satellite Launch Vehicle from Sriharikota, Oceansat-2; is designed to provide service continuity for operational users of the Ocean Colour Monitor (OCM) instrument on Oceansat-1.

The agreement with the Indian Space Research Organisation will lead to the use of data from Oceansat-2 for various US agencies for research, education and other activities of public good including weather forecasting.

The letter of intent in this regard was signed by Michael H Freilich, director earth science division, National Aeronautics and Space Administration; Mary E Kicza assistant administrator for satellite and information science of the oceanic and atmospheric administration; and R R Navalgund, director, space application centre, Isro.

The signing ceremony was done in Washington on the sidelines of Sixth Plenary Session of the Group on Earth Observations (GEO).

The deputy chief of mission, Indian Embassy, Arun K Singh; and Deviprasad Karnik, Counsellor (Space) were also present on the occasion.

The letter of intent signed between Isro, Nasa and NOAA under the overall joint civil space cooperation agreement promotes opportunity for receiving Oceansat-2 data by the US agencies for research, education and activities of public good.

The joint activities would include calibration, validation, algorithm development, scientific investigations and operational applications.

While ocean colour data is envisaged to be useful for fisheries, monitoring of harmful algae and in studying global carbon cycles, wind vectors from scatterometer would be useful in facilitating better weather forecasting.

Oceansat-2 carries three instruments like the eight band Ocean Color Monitor (OCM) to study Ocean biology, Ku band pencil beam Scatterometer to measure sea surface wind vectors and Radio Occultation Sounder for Atmosphere (Rosa).

While the first two instruments are Isro built, Rosa has been contributed by the Italian Space Agency.

All the three payloads have been switched on and are working satisfactorily, providing valuable data, said a statement from the Indian Embassy.

US banks failure toll reaches 123 so far in 2009

PTI — Sun, 15 Nov 2009 05:57:00 GMT

New York: The number of bank failures in the US has continued to increase with a staggering 123 entities going out of business so far this year, despite the economy witnessing some signs of recovery.

The authorities shut down three banks — Orion Bank based in Naples, Pacific Coast National Bank in San Clemente and Century Bank FSB of Sarasota on 13 November, taking the count of failed banks to 123 this year.

The Federal Deposit Insurance Corp (FDIC), which was named the receiver of the failed banks, took over Orion Bank, with about $2.7 billion in assets and $2.1 billion in deposits and Century Bank with $728 million in assets and $631 million in deposits.

Meanwhile, Pacific Coast National Bank was also shut down. It had $134.4 million in assets and $130.9 million in deposits.

In addition, FDIC had entered into a purchase and assumption agreement with Iberia Bank of Lafayette, Louisiana, to assume all of the deposits of Century Bank, FSB.

However, the maximum number of collapses this year took place in July, when 24 banks were closed down, while 20 entities bite the dust last month.

Despite the slowly improving economic situation, soaring unemployment rate have resulted in rising defaults, primarily impacting the small and medium banks.

Banks are failing at the fastest pace in 17 years even as the economy grew for the first time in one year at 3.5% in the September quarter.

Estimates show that bank collapses this year have made the FDIC poorer by about $25 billion and the agency has projected such costs to reach $100 billion by 2013.

So far in November, eight banks have been collapsed, while in the last week of October, nine banks were shut down on the same day costing the FDIC nearly $2.5 billion.

Faced with increasing failures, the FDIC has proposed the banks to pre-pay their premiums, which would boost the federal agency’s insurance fund by $45 billion.

After the Wall Street giant Lehman Brothers collapsed in September last year, which pushed the financial system into a tizzy, 135 US banks have gone out of business.

Partners Bank, Jennings State Bank, Warren Bank, Flagship National Bank, Community Bank of Lemont, Pacific National Bank, Georgian Bank and Irwin Union Bank, are among the entities which collapsed this year.

Google, Authors try to answer book deal concerns

Reuters — Sat, 14 Nov 2009 10:33:00 GMT

Washington: Google and the Authors Guild filed a new version of a deal to create a massive online library on Friday in hopes of answering antitrust and copyright concerns in the US and overseas.

Google’s plan to put millions of books online has been praised for expanding access to books but has also been criticized on antitrust, copyright and privacy grounds.

According to a 30-page court filing made by the parties late on Friday, a section was eliminated that required the book registry created by the settlement to give Google at least as good a deal as any competitor.

In another shift, money from unclaimed or orphan works will go to an independent fiduciary rather than go to the registry.

The justice department, in September, had pointed to that arrangement as a conflict of interest since it was the registry that was also tasked with locating writers and paying them for their online sales.

Under the new deal, unclaimed funds will eventually go to charities.

The class action agreement must be approved by a court, and the justice department had recommended that the previous version be rejected because of concerns that it might break antitrust law. It also had concerns about violations of copyright law.

“We’ve had numerous discussions and quite a lot of dialogue with the justice department and feel we’ve addressed their key concerns,” said Richard Sarnoff, president of Bertelsmann Digital Media.

The agreement is designed to settle a 2005 class action lawsuit filed against Google by authors and publishers who had accused the search engine giant of copyright infringement for scanning libraries full of books.

International Objections

As part of the amended deal, books in the registry would be reduced to those copyrighted in the US or published in Australia, Canada and the UK.

There had been significant international objection to the deal on the grounds that non-English speaking authors, in particular, were represented by the authors and publishers who sued Google but had no say in negotiating the deal.

Dan Clancy, architect of the Google program, said the search giant would reach out to authors’ groups overseas.

German book publishers have been up in arms about the deal, and on 24 September they criticized European regulators for failing to take a stand against the settlement.

The French publishing house La Martiniere, the French Publishers’ Association and authors’ group SGDL asked a Paris court to fine Google for infringement for digitizing their books.

On 22 October, a group representing authors in China accused Google of copyright infringement.

Critics of the deal have been a varied group that includes Yahoo, Amazon, Microsoft, the National Writers Union, Consumer Watchdog and singer Arlo Guthrie.

The case is Authors Guild et al v Google Inc 05-08136 in US district court for the southern district of New York (Manhattan)

US unemployment claims down; jobs summit planned

AP — Fri, 13 Nov 2009 07:26:00 GMT

Washington: With the sputtering US job market flashing an encouraging sign unemployment claims at their lowest point since January the White House announced a summit on Thursday to try to speed the day when hiring finally starts again.

While President Barack Obama called the new jobless figures hopeful, economists think claims will probably stay too high to indicate even a slight gain in jobs until early next year.

Job creation is essential for a sustained economic recovery. Obama said the White House is “open to any demonstrably good idea to supplement the steps we’ve already taken to put America back to work.”

The White House forum, to be held in December, will bring in public and private sector experts to talk about how to get job creation humming again, Obama said.

First-time claims for unemployment aid fell last week to a seasonally adjusted 502,000, fewer than Wall Street had expected.

Still, most economists say weekly claims would have to fall below 425,000 for several weeks to signal that the economy is actually adding jobs.

Claims for unemployment aid are generally considered a gauge of the pace of layoffs. They also indicate how much hiring is going on because laid-off workers who can’t find jobs are likely to request benefits.

“I’d be more comfortable if we were closer to 400,000” claims for jobless benefits, said Cary Leahey, senior economist at Decision Economics. “We still have a lot of work to do.”

Abiel Reinhart, an economist at JPMorgan Chase, offered a slightly more optimistic view, estimating unemployment claims in the high 400,000s would signal job gains are likely to follow within a month.

Many economists expect the nation to add jobs in the first quarter of next year, perhaps as soon as January. They project the unemployment rate to peak one to three months after that.

Other economists don’t expect the unemployment rate to peak until next summer.

Employers shed a net total of 190,000 jobs in October, according to a government survey of companies’ payrolls the 22nd straight month of losses. The US unemployment rate passed 10% for only the second time since World War II.

The last time the economy added jobs was in December 2007, when employers added 120,000 jobs. Initial jobless claims that month averaged about 340,000.

The weak job market is ratcheting up the political pressure on Obama administration. The summit was an acknowledgment that unemployment will remain a problem for months to come.

After his remarks, the president left for a trip to Asia, where US and global business prospects will be among the key issues under discussion.

Obama originally had promised the $787 billion stimulus package would create or save 3.5 million jobs. But the administration’s efforts to tally the jobs it attributes to the stimulus about 640,000 so far have been bedeviled by reports of double-counting and other errors.

An Associated Press-GfK poll released earlier this week found 46 percent of Americans approve of how Obama has handled the economy, down from 50% last month.

With the unemployment rate above 10%, congressional Republicans also have pointed to administration officials’ claims earlier this year that the stimulus package would prevent the rate from reaching double digits.

Economists think unemployment will stay above 9% through next year’s congressional elections. Exit polls showed The struggling economy was a key issue for most voters in last week’s gubernatorial elections in Virginia and New Jersey, both won by Republicans. Obama’s Democratic Party has a majority in both chambers of Congress.

Many of the administration’s liberal supporters are calling for more infrastructure spending or public works programs to directly create jobs.

Conservative economists, meanwhile, are pushing for permanent tax cuts. They argue that the uncertainty created by health care reform and other initiatives is discouraging hiring.

Private economists and Federal Reserve officials say the nation could face a “jobless recovery” as the unemployment rate rises despite modest economic growth. Companies may start hiring, but the economy needs roughly 100,000 additional jobs each month to absorb population growth and keep the jobless rate from rising.

The government also said Thursday that the number of people continuing to claim jobless benefits dropped by 139,000 to 5.6 million, also below analysts’ estimates. The figures on continuing claims lag behind the data on initial claims by a week.

Millions of unemployed Americans have used up the regular six months of benefits typically provided by states and are receiving extended benefits for up to almost another year and a half, paid for by the federal government.

Congress extended the program last week for the fourth time since the recession began. About 4 million people were receiving extended jobless benefits in the week that ended 24 October. That total was little changed from the previous week.

The financial panic is over: Warren Buffett

Jonathan Stempel and Clare Baldwin / Reuters — Fri, 13 Nov 2009 06:56:00 GMT

New York: Warren Buffett, perhaps the world’s most admired investor, said on Thursday the financial panic that gripped the globe last year is a thing of the past, even as the US economy’s struggles persist.

“The financial panic is behind us,” the world’s second-richest person said at Columbia University’s business school. “Our economy was sputtering, still is sputtering some.”

Buffett, 79, nevertheless said there is greater opportunity for investments inside the United States than outside, noting that the US economy is far larger than any other.

He appeared at Columbia with Microsoft Corp founder Bill Gates, the world’s richest person and a Buffett friend and bridge partner.

Last month, preliminary government data showed the US economy expanded in the third quarter, the first three-month period of growth since the second quarter of 2008.

Nonetheless, the US unemployment rate last month reached 10.2%, the first double-digit reading in 26 years.

Buffett last week made a big bet on the US economy when his Berkshire Hathaway Inc agreed to pay about $26.4 billion for the 77% of railroad company Burlington Northern Santa Fe Corp that it did not already own.

“There will be more people in this country, 10, 20, 30 years from now,” Buffett said. “They’ll be moving more and more goods back and forth to each other and the most environmentally friendly and cost-efficient way of doing that is railroads.”

Buffett said rail transport uses one-third less fuel and pollutes the air less than trucks, and that one train can supplant about 280 trucks.

Gates, who is also a Berkshire director, said other sectors might also boost the economy over the long term, including information technology, energy and medicine.

Separately, Buffett advised the US government not to coddle companies that need bailouts to survive or preserve capital.

“More sticks are called for,” he said.

Buffett gave Federal Reserve chairman Ben Bernanke and US treasury secretary Timothy Geithner ”high marks” for how they managed the financial crisis.

The billionaire has praised Bernanke in the past, while mocking Geithner’s stress tests for banks.

CNBC television was a host for the Columbia event.

What does Obama’s new health care plan entail?

Samanth Subramanian — Thu, 12 Nov 2009 11:02:00 GMT

download podcast here

A few days ago, the US House of Representatives passed a healthcare bill that President Obama had championed energetically for all of 2009. The process of passing this bill has stimulated intense debate in the United States, and comparisons have inevitably been drawn to healthcare systems in Europe and Asia.

So what exactly does Obama’s bill do? What are the deficiencies in the present healthcare system that the bill hopes to rectify? Once it passes through Congress, what sort of new healthcare regime will it create, and how will that compare to the systems in Europe and what we know in India?

To answer these questions, our guest is Shashwat Sharma, a KPMG India director with extensive experience in the healthcare and health insurance industry.

Fed officials see choppy recovery for US economy

Reuters — Wed, 11 Nov 2009 05:40:00 GMT

Austin/Atlanta: High unemployment and reluctant consumers will likely make an incipient US economic recovery weak and erratic, top Federal Reserve officials said in a string of speeches across the country on Tuesday.

That means interest rates, currently at historic lows close to zero, should remain near that floor for the foreseeable future, the policymakers said.

“The strength and durability of the expansion is in question,” said Janet Yellen president of the Federal Reserve Bank of San Francisco, in Phoenix, Arizona. “High unemployment, weak job growth and paltry wage increases are a recipe for sluggish consumer spending growth and a tepid recovery.”

Echoing her remarks, Richard Fisher, head of the Dallas Fed, flagged commercial real estate and a heavy reliance on government stimulus as other key risks.

“The more demand you steal from the future, the less future demand there is for you to steal,” Fisher told the Austin Headliners’ Club, a group of Texas business executives, lobbyists and politicians.

The US economy grew 3.5 % in the third quarter, unofficially emerging from its worst recession in generations. But the jobs picture remains dismal, with the unemployment rate surging to 10.2 % in October, its highest level since 1983. A Reuters poll on Tuesday showed economists expect it to hit 10.5 % in mid-2010 before subsiding.

Fisher said he was mindful of the possibility that the central bank’s pledge to keep rates at rock bottom for an “extended period” could fuel unwanted speculative activity in financial markets.

“I am fully aware that the law of unintended consequences is lurking in the shadows,” Fisher said. “Were this to become a disorderly influence, I would expect the FOMC and other authorities to craft an appropriate remedy,” he said.

Pressed on the issue by reporters, he added: “Thus far, the dollar has not been in a disorderly depreciation.”

Some analysts fear a more rapid fall in the US dollar, which recently hit a 15-month low, could disrupt global markets.

The Fed slashed borrowing costs in response to the global financial crisis, and has pumped more than $1 trillion into the banking system. The White House and Congress also lent a hand with a $788 bilion stimulus package of tax cuts and spending.

As key government programs like mortgage tax credits and car-buying incentives wane, private demand may struggle to fill the void, Fed officials said, particularly given the state of the labor market.

“At this juncture, it’s hard to be encouraged about a fast rebound in job growth,” said Dennis Lockhart, president of the Atlanta Fed.

Still, Lockhart said he could envision a scenario where the Fed might have to tighten policy even with unemployment “frustratingly high”.

Richmond Fed President Jeffrey Lacker was more upbeat than his colleagues, telling CNBC the broad contours of recovery would be the same even without government stimulus.

Nevertheless, he made clear he was not itching to push up rates. Asked if a hike was in the cards for next year, Lacker, considered an inflation hawk, responded: “It is too soon to say ... it could take longer than that. What I’m going to look for is growth that is strong enough and well-enough established that we need higher real interest rates.”

Eric Rosengren, of the Boston Fed, agreed: “It’s a question of timing. We’re not there yet.”

Yellen, Lockhart and Lacker are among the voters this year on the Fed’s policy panel, while Rosengren will move into a voting slot in 2010. While Yellen and Rosengren are seen as Fed “doves,” Lockhart is considered more of a hawk.

Fed Board Governor Daniel Tarullo spoke in New York, but focused his remarks on financial regulation rather than the economic outlook.

As officials looked for ways to describe the likely shape of the economy’s trajectory -- a V representing a robust rebound, an L denoting stagnation, a W flagging the risk of renewed contraction -- the alphabet no longer seemed enough.

“The letter I would choose doesn’t exist in our alphabet, but if I were to describe it, it would look something like an “L” with a gradual upward tilt of the base,” Yellen said.

Fisher was thinking along the same lines, but opted for a symbol instead.

“We are more likely to see a more uneven recovery -- not a V-shaped recovery but something more akin to a check mark, where the elongated arm of that check mark inclines at a slope that is less than desirable and might possibly be repressed by an occasional pause or several quarters of weak growth,” he said.

Afghan and western Pak pose danger to India and US: Holbrooke

PTI — Tue, 10 Nov 2009 09:04:00 GMT

Washington: Identifying Afghanistan and western Pakistan as one of the most dangerous parts of the world, special US envoy for Af-Pak has said that the region poses a great threat to not only the United States, but also India and Western Europe.

“Western areas of Pakistan remain a clear and present danger to everyone not only in the United States, but in Western Europe, in Pakistan itself, in India, and elsewhere throughout the region,” special US envoy for Pakistan and Afghanistan Richard Holbrooke told the CNN in an interview.

Asserting that Obama Administration’s commitment to Afghanistan remains undiminished, Holbrooke said, “We remain committed to the core objectives of defeating and dismantling al-Qaeda, of helping strengthen civilian democratic rule in Pakistan, of strengthening the Afghan people’s government and its security forces.”

Holbrooke, who has not visited Afghanistan since the 20th August presidential elections, said he will attend the inauguration of Hamid Karzai’s presidency for the second term.

Terming the recently concluded Pakistan trip of the secretary of state Hillary Clinton as incredible, he said, “this was a very important trip in which we committed ourselves to much greater support of Pakistan’s democratic institutions and the economy in Pakistan, with particular attention to energy.”

Obama to visit Asia as domestic issues smoulder

Reuters — Tue, 10 Nov 2009 06:50:00 GMT

Washington: Barack Obama this week makes his first trip to Asia as President, leaving behind a host of domestic problems with a visit that recognizes the region’s economic and diplomatic importance to the United States.

The trip, which starts on Thursday, will take Obama to an Asia-Pacific Economic Cooperation (APEC) summit in Singapore.

But the critical leg will come in China, where Obama will have to navigate an increasingly complex relationship with the country that is the largest holder of US foreign debt and its second-largest trading partner.

“I see China as a vital partner, as well as a competitor,” Obama told Reuters in an interview before the trip.

“The key is for us to make sure that that competition is friendly, and it’s competition for customers and markets, it’s within the bounds of well-defined international rules of the road that both China and the United States are party to, but also that together we are encouraging responsible behaviour around the world,” he said.

He will also visit Japan and South Korea.

“The overarching theme is that America is a Pacific nation, it understands the importance of Asia in the 21st century, and it’s going to be very engaged in a very comprehensive way to make progress on a whole series of issues that are critical for our prosperity and our security,” said Ben Rhodes, a deputy national security adviser.

North Korea, Iran, the global economy and trade, climate change, energy, human rights, Afghanistan and Pakistan are likely to get the most attention. Obama will also use a stop in Tokyo to speak broadly about his view of US engagement with Asia.

In China from 15 to 18 November, Obama will visit Shanghai and Beijing, hold bilateral meetings with President Hu Jintao — their third and Premier Wen Jiabao.

Deeply Engaged

The trip is intended to make the point that the United States is deeply engaged with Asia, after years of focusing on the threat of Islamic militancy in the region.

But the issues dominating US politics — his fight to reform the healthcare system, joblessness and the pressing question of how many more troops to send to Afghanistan — are likely to dog Obama on his Asian trip.

Those domestic worries could make it more difficult to make progress on climate change and trade, on which he faces stiff opposition from US groups whose support he needs on healthcare and other issues.

Many businesses, for example, are wary of new rules on climate change they say could be costly and labour unions worry about free trade agreements they fear could cost jobs, so Obama is unlikely to push hard for deals such as a free trade pact with South Korea.

“I think the administration has been sending pretty careful signals that, hey, we’re not gone on trade ... we’ll be back to the table on trade on some of these regional agreements and some of the bilateral agreements,” said Ernie Bower, director of the Southeast Asia programme at the Center for Strategic and International Studies in Washington.

“Do Asian leaders believe that? I’m not sure,” he said.

With Obama enjoying sky-high popularity ratings in the countries he is visiting, concrete results may be beside the point. Noting that Obama has been in office only since January, analysts and administration officials point to this trip as mostly laying the groundwork for future cooperation.

“President Obama is enormously popular in all the countries that he’s visiting. I haven’t seen the latest polls, but the numbers I have seen are staggering,” said Jeffrey Bader, senior director for East Asian affairs at the National Security Council.

“When we have someone who has that degree of respect and affection and admiration, the message that he is bringing is much more likely to resonate than when you come in with a 5% approval rating,” he said.

Obama wins big as House approves historic healthcare bill

AFP — Sun, 08 Nov 2009 09:55:00 GMT

Washington: The US House of Representatives has approved the broadest overhaul of US healthcare in four decades, handing President Barack Obama a hard-fought victory for his top domestic priority.

Heeding Obama’s appeal to “answer the call of history,” lawmakers late Saturday capped 12 hours of bitter debate with a 220-215 vote.

The bill amounts to a 10-year, trillion-dollar plan to extend health coverage to some 36 million Americans who lack it now.

“Tonight, in an historic vote, the House of Representatives passed a bill that would finally make real the promise of quality, affordable healthcare for the American people,” Obama said in a statement.

The fight to remake health care in the world’s richest country shifted to the US Senate, where its fate remained unclear amid a tense intra-party dispute among Democrats anchored on what role the US government should play.

Obama said he was “absolutely confident” the Senate would pass its own bill, stressing: “I look forward to signing comprehensive health insurance reform into law by the end of the year.”

House Speaker Nancy Pelosi, who has faced tough criticism from Republicans over the proposal, said the healthcare bill “improves quality, lowers cost, expands coverage to 36 million more people and retains choice.”

If, as expected, the House and Senate pass rival versions of healthcare legislation, they will need to thrash out a compromise version and approve it in order to send it to Obama to sign into law, a frequently tough process.

Obama and Democratic House leaders had invested heavy political capital in what they knew would be a close contest sure to shape his legacy and the fate of his ambitious plan to remake US healthcare if the bill went down to defeat.

The president telephoned wavering members on Friday and paid a rare visit to Congress on Saturday, buttressed with a speech from the White House Rose Garden, but still 39 Democrats joined 176 Republicans to oppose the plan.

One Republican - Joseph Cao of Louisiana - broke ranks, nominally fulfilling, in the barest terms, Obama’s vow to secure bipartisan support.

The chamber’s Democrats erupted in loud cheers and triumphant applause the moment the bill had the 218 votes needed for passage, about 11:07pm.

Final House passage came after a flurry of votes, including a 240-194 vote to sharply tighten restrictions on government funds for abortions, vital to cementing support from a platoon of anti-abortion Democrats.

The House then voted 176-258 to defeat the Republican alternative to the overall plan - with one lone Republican, Representative Timothy Johnson of Illinois, joining the Democrats in opposition.

Republicans appealed to swing-vote Democrats from battleground districts to reject what they warned would end up being a costly government takeover of healthcare, stoking traditionally American suspicions of the public sector.

“This bill bulldozes individual liberty and puts the government just where it doesn’t belong,” said Republican Representative Sam Johnson.

The United States is the only industrialized democracy that does not ensure that all of its citizens have healthcare coverage, with an estimated 36 million Americans uninsured.

Washington spends vastly more on healthcare - both per person and as a share of national income as measured by Gross Domestic Product - than other industrialized democracies, but with no meaningful edge in quality of care, according to the Organization for Economic Cooperation and Development.

The bill would create a government-backed insurance plan, popularly known as a “public option,” to compete with private firms and would end denial of coverage based on preexisting medical problems.

Under the White House-backed bill, Americans would have to buy insurance and most employers would have to offer coverage to their workers - though some small businesses would be exempt and the government would offer subsidies.

US grieves after doctor kills 13 on army base

AFP — Sat, 07 Nov 2009 09:51:00 GMT

Texas: US President Barack Obama led his nation in mourning Friday as shocked Americans struggled to understand why an American-Muslim army doctor unleashed a massacre at a US military base, killing 13.

Alleged shooter Major Nidal Malik Hasan, 39, a psychiatrist and specialist in combat stress who had been about to deploy to Afghanistan against his wishes, also wounded 30 people in Thursday’s deadly rampage.

Just hours later, Americans were left reeling again when a disgruntled former employee went on the rampage in an office block in Orlando, Florida, Friday, killing one and wounding five before being arrested.

Speculation swirled at Fort Hood, Texas Friday as to whether the alleged shooter Hasan had snapped under the pressure of his job counseling thousands of war-weary troops, or was motivated by deeper convictions.

Obama cautioned against making hasty assumptions as an investigation was launched.

“We don’t know all of the answers yet. I would caution against jumping to conclusions until we have all of the facts,” he said.

“What we do know is that their families, friends, and an entire nation is grieving right now for the valued men and women that came under attack,” Obama said.

He ordered flags to fly at half-staff at the White House and federal buildings, as troops here and around the world held a minute’s silence to mourn the dead.

Obama would also attend a memorial service due to be held in the coming days, the White House said.

The bodies of those killed will be taken to the same mortuary at Dover Air Base in Delaware that handles fallen soldiers from the wars in Afghanistan and Iraq, the Pentagon said Friday.

Army chief of staff General George Casey said the attack was “a kick in the gut, not only for the Fort Hood community but for the entire army.”

Hasan was shot and seriously wounded by a female civilian police officer who was being hailed as a heroine for ending his deadly rampage. He remained on a ventilator in a civilian hospital Friday.

Witnesses reportedly heard him shout “Allahu Akbar!” (God is greatest) as he opened fire in a troop processing center with a semiautomatic weapon and a handgun.

“There are first hand accounts here from soldiers here that are similar to that,” base commander Lieutenant General Bob Cone said.

Although “Allahu Akbar” is a Muslim prayer, it has come to be associated with Islamic militants as they carry out attacks or suicide bombings.

A surveillance video aired by CNN showed the major buying breakfast wearing traditional Muslim garb at a base store just hours before the shooting.

The bloodshed dealt a new blow to US forces already under severe strain from repeated combat tours and plagued by a rise in suicides and depression.

Fort Hood, by area the world’s largest US military base, has borne the brunt of the wars in Iraq and Afghanistan. Troops based here have suffered the highest number of casualties and have undertaken multiple tours of duty.

Amid the sorrow, the shooting raised delicate questions about Muslim soldiers serving in the US Army, as some Muslim groups feared a huge backlash.

Casey, the army chief of staff, said after a visit to the base that he, too, feared that possibility.

“One of the reasons I told our leaders to keep their people informed and not rush to judgment or speculate until the investigation comes out, I do worry slightly about a potential backlash and we have to be all concerned about that,” he said.

Hasan was born in the United States to Palestinian parents who had moved from a small town near Jerusalem.

His cousin Nader Hasan, writing on behalf of the family as Hasan’s parents are dead, said they were stunned by Thursday’s events and stressed they all considered themselves Americans.

“Our family loves America. We are proud of our country, and saddened by today’s tragedy,” Nader Hasan said in the message posted on The Washington Post website.

Nidal Hasan’s aunt, Noel Hasan, told the daily her nephew had been subjected to harassment about his faith since the September 11, 2001 attacks and had repeatedly sought to be discharged.

An unsigned video praising the attack appeared on a Islamic militant website called the Fallujah forum on Friday, and was swiftly picked up by other sites.

The shooter “seemed upset and did not want to participate in this war, and he did not want to be among the ranks of infidels against his Muslim brothers,” the video said, offering its congratulations.

4 Indians among 20 charged in largest hedge fund scam

Betwa Sharma / PTI — Fri, 06 Nov 2009 10:33:00 GMT

New York: The FBI has charged a further 14 people, including two Indians and Wall Street professionals, in a widening $53 million insider trading scam, the largest ever such case in the United States.

The latest action brings the number of people who have been charged in the case to 20, including four Indians.

The scam came to light last month with the arrest of Sri Lankan Tamil-origin billionaire Raj Rajaratnam, founder of the Galleon Group founder and hedge fund operator, and five others, two of whom were Indians.

Deep Shah, a former analyst at the Moody’s Investor Service, and Gautham Shankar, a former proprietary trader at Schottenfeld Group in New York, were charged on Thursday. Shankar has pleaded guilty, while Shah is still at large.

Anil Kumar and Rajiv Goel (both 51) are the two other Indians who were arrested last month for allegedly committing the fraud.

US attorney Preet Bharara and New York’s assistant FBI director Joseph Demarest on Friday said the accused took part in insider trading schemes that “generated more than 20 million dollars in illegal profits.”

The people charged included hedge fund managers and trading firm executives, lawyers and corporate insiders, the prosecutor and FBI officer said in a statement.

Of the 14, eight were arrested on Thursday, while a ninth man was being sought, and later released on bail. Five others had already been charged and have pleaded guilty in a court in New York.

Atheros Communications Inc executive Ali Hariri has been charged with passing on confidential information to a hedge fund manager Ali Far who has pleaded guilty of fraud and is now reportedly cooperating with the investigators.

“People will probably ask just how pervasive is insider trading these days? Is this just the tip of the iceberg? We aim to find out,” said Preet Bharara, the US attorney for the Southern District of New York.

Rajaratnam received 13 charges, four counts of conspiracy and eight counts of security fraud.

Galleon Group is a hedge fund with up to $7 billion in assets under management. Out of the $20 million, Rajaratnam alone made $12.7 million in illegal profits for Galleon.

This is the first case to use authorized wiretaps and the investigators are still on the job.

US Fed sees rates near zero for “extended period”

Mark Felsenthal and David Lawder / Reuters — Thu, 05 Nov 2009 07:18:00 GMT

Washington: The US Federal Reserve on Wednesday expressed growing confidence that an economic recovery was building, even as it stuck to its commitment to keep borrowing costs near zero for “an extended period.”

As expected, the central bank closed out a two-day meeting with a decision to keep benchmark overnight interest rates in a range of zero to 0.25%. The vote was unanimous.

In a statement, the Fed said the US economy had “continued to pick up” since its last meeting in September, but it expressed concern the recovery was likely to be muted.

“Household spending appears to be expanding but remains constrained by ongoing job losses, sluggish income growth, lower housing wealth, and tight credit,” it said. While still emphasizing risks, the Fed was a bit more upbeat than in September, when it had simply said spending was “stabilizing.”

The Fed cut interest rates to near zero last December and has pumped more than $1 trillion into the economy to tame a severe financial crisis and the deepest recession since the 1930s.

Now that the economy is starting to recover, financial markets are increasingly wondering when the Fed and other central banks around the globe will begin to remove the extraordinary economic support they have provided.

The US central bank was more explicit than it had been previously on why it expects to be able to keep rates “exceptionally low” for a long time, citing the slack that has built up in the economy and the lack of an inflationary threat.

By citing “low rates of resource utilization, subdued inflation trends, and stable inflation expectations,” analysts said the Fed was providing a road map to follow to determine when it may finally begin to tighten policy.

Testing the waters?

In another shift, the Fed said it would buy only about $175 billion of debt issued by federal housing agencies. It had planned to buy up to $200 billion to help keep mortgage costs low.

Some analysts saw the move as a baby step away from the Fed’s “quantitative easing” policy of flooding the financial system with money, but the Fed said it curtailed purchases because the supply of the debt was scarce.

US stocks wavered after the Fed’s decision, but gave up most of their earlier gains by the end of the day, with the broad S&P 500 index closing up only marginally.

Prices for US government debt fell on worries about massive debt supply, while interest rate futures turned higher as traders cut bets the Fed would soon step back from its easy money policy. The US dollar weakened.

“If there is any surprise, it sounds like there is not even any hint that they are going to raise rates soon,” said Robert MacIntosh, chief economist at Eaton Vance Corp in Boston. “We’ve got a number of Fed meetings to go before we will get any kind of increase.”

Top Fed officials, including chairman Ben Bernanke, have said the US recession has left a legacy of high unemployment and idle factories that should keep price pressures in check.

A private report on Wednesday showed US companies cut payrolls at the slowest pace in more than a year, adding to a sense that the economic numbers are moving in the right direction.

The government on Friday also is expected to report that employers are cutting fewer jobs, but the jobless rate is forecast to rise to a fresh 26-year high of 9.9% and unemployment is expected to keep climbing into next year.

The world’s largest economy grew at a faster-than-expected 3.5% annual rate in the third quarter, which effectively signaled the end of the downturn.

Suggesting further momentum, data on Monday showed manufacturing activity hit its highest level in 3-1/2 years last month, though a report on Wednesday showed the nation’s vast services sector was growing only modestly.

Wrestling with an exit

The budding recovery has started to lift the spirit of some investors. Billionaire Warren Buffett demonstrated his faith in the economy’s prospects with an announcement on Tuesday that his company, Berkshire Hathaway Inc, would spend $26 billion to buy the nation’s largest rail company, Burlington Northern Santa Fe Corp.

Still, worries linger. The banking system remains under pressure from loan losses, and credit remains tight.

Most analysts at top US banks have been expecting the Fed to keep interest rates on hold until mid-2010 or later. Before it raises rates, it is expected to begin to withdraw some of the cash it pumped into the economy to keep credit flowing.

Other central banks also are wrestling with how best to spur economic growth and when to withdraw extraordinary measures to support their economies.

The European Central Bank is expected to keep rates on hold at a record-low 1.0% on Thursday, while there is a good chance the Bank of England will expand its large asset purchase program at a meeting the same day.

Chicago men discussed terror attack on India

Mike Robinson / AP — Wed, 04 Nov 2009 17:15:00 GMT

Chicago: A Chicago man charged with scheming to launch a terrorist attack on a Danish newspaper also discussed a possible attack against a military college in India, prosecutors said on Tuesday.

Federal prosecutors said in court papers that Chicago businessman Tahawwur Rana in September spoke to another man charged in the case about designating the National Defence College of India as among possible targets they might pursue.

“Recorded conversations involving the defendant, emails and other documentary evidence demonstrate that the defendant conspired to provide and did provide material support to the conspiracy,” prosecutors said in court papers.

Rana, 48, and another man, David Headley, 49, are charged with conspiring to attack the Copenhagen newspaper ‘Jyllands-Posten’, which sparked outrage in much of the Muslim world in 2005 by publishing 12 cartoons of Prophet Muhammad.

There was no detail in the court papers on whether anything substantial had been done in regard to the school in India or whether it was merely a talk.

US private sector sheds 203,000 jobs in October: ADP

AFP — Wed, 04 Nov 2009 13:44:00 GMT

Washington: The US private sector shed 203,000 jobs in October, the seventh month in a row that employment declines were smaller than in the previous month, payrolls firm ADP said Wednesday.

The ADP survey, a snapshot of nonfarm private employment that offers a clue on the direction of the US labor market, comes ahead of Friday’s official October labor market data, expected to show the unemployment rate rising to 9.9%.

The ADP survey added support to indications that job losses are slowing as the economy pulls out of steep recession that began in December 2007.

“Despite recent indications that overall economic activity is stabilizing, employment, which usually trails overall economic activity, is likely to decline for at least a few more months,” ADP said.

The October ADP reading was slightly worse than the 198,000 job losses expected by most analysts.

The ADP revised downward the October number of job losses, to a decline of 227,000 from the prior estimate of 254,000.

US Federal Reserve seen staying on easy-money path

Mark Felsenthal / Reuters — Wed, 04 Nov 2009 05:04:00 GMT

Washington: The Federal Reserve on Wednesday is expected to reaffirm its intention to keep US interest rates at ultra-low levels for a long time to support the economy, even as signs of recovery accumulate.

The US central bank cut overnight rates close to 0% last December and it has vowed to keep them there for an “extended period.” While some analysts think the Fed could start to tip-toe away from that pledge, most say it is too soon.

“Once they start removing that, that’s a real sign that they intend, within six months, to start raising rates,” said Deutsche Bank economist Torsten Slok. “But it’s just premature, looking at the economic numbers, to arrive at that conclusion.”

The Fed will issue a statement around 2:15 pm (1915 GMT) at the conclusion of its two-day policy meeting on Wednesday. Analysts expect the Fed to nod to modestly encouraging signs suggesting the economy is gaining strength, but still expect a cautious tone on policy.

Policy makers will need to take into account the economy’s faster-than-expected 3.5% annualized growth rate in the third quarter, which effectively signaled the end of the most painful recession since the 1930s. Suggesting further momentum, data on Monday showed manufacturing activity hit its highest level in 3-1/2 years last month.

Improved third-quarter corporate earnings have also fed optimism that the upturn can be sustained next year even after government help has dried up.

In an act underlining rising confidence in the recovery, billionaire investor Warren Buffet on Tuesday said his company, Berkshire Hathaway Inc, agreed to purchase the nation’s largest rail company, saying it is poised to benefit from the recovery.

Fed officials in recent weeks, however, have sent the message that while the outlook has improved, the recovery is likely to be sluggish and needs continuing support.

Unemployment is expected to climb above 10% before the labour market improves, damping the consumer spending that accounts for around 70% of US output. The banking system is still under pressure from loan losses, and credit remains tight.

“We have to think about our exit policy and are looking at it very carefully, but at the moment, that’s not our first order concern. At the moment, it’s policy accommodation,” Chicago Federal Reserve Bank president Charles Evans, a voter on the Fed’s policy-setting panel, said on 22 October.

Other central banks are also wrestling with how best to spur growth and when to withdraw extraordinary measures to support their economies.

The European Central Bank is expected to keep rates on hold at a record-low 1% on Thursday, while there is a good chance the Bank of England will expand its large asset purchase program at a meeting the same day.

Most analysts at top US banks expect the Fed to keep interest rates on hold until mid-2010 or later, although interest rate futures markets are pricing in an increase earlier in 2010.

Time ripe for ‘new chapter’ in Afghanistan: US

PTI — Wed, 04 Nov 2009 04:59:00 GMT

Washington: The Obama Administration believes time is ripe for a “new chapter” in Afghanistan to achieve its goal of defeating Al-Qaeda and Taliban and has asked the Hamid Karzai government to take concrete action against corruption and build up the country’s security force.

This message has been conveyed to President Hamid Karzai and this is what the US authorities are working towards, the White House said on Tuesday.

“The President is anxious to see improvement,” White House Press Secretary Robert Gibbs said.

“We have made, obviously, important investments in the troops that we have put in Afghanistan, as well as through international assistance. I think the President understands that for any of our efforts to be successful it’s time for a new chapter in Afghan history,” Gibbs said.

He said the US goal to “dismantle, disrupt and ultimately destroy” Al-Qaeda remains unchanged.

Barack Obama, who has held five situation room meetings since mid-August on Afghanistan, Gibbs said is expected to meet his top military aides including Admiral Mike Mullen, Chairman of the Joint Chiefs of Staff, soon to go through the additional recommendations that the Pentagon is working through, he said.

However, Gibbs maintained that no decision has been taken when the new policy would be announced and said the decision might be coming in weeks.

Emphasising the need to set clear benchmarks for international assistance that is used to provide for the needs of the Afghan people, Gibbs said: “As the President reiterates, this is not just rhetoric; there have to be deliverables to this.”

“Both the Afghan National Army and the Afghan National Police ultimately are going to have to take charge of the security situation in the country. I’ve said this, the President has said this, that we’re not going to be there forever,” Gibbs said.

He said the Obama Administration has been evaluating the situation in Pakistan and how it relates to the relationship with Pakistan and the region as a whole in crafting a policy that addresses all of these things.

US, EU agree to reduce global emissions by 50% till 2050

Lalit K. Jha / PTI — Wed, 04 Nov 2009 04:41:00 GMT

Washington: The United States and the European Union (EU) on Wednesday vowed to reduce global emission by 50% by the year 2050 and agreed to promote an “ambitious and comprehensive” international climate change agreement in Copenhagen.

At the conclusion of the US-EU 2009 Summit, both sides also agreed to achieve the goal of a world free of nuclear weapons and fight protectionism.

The US and EU, which account for over half of world’s GDP, in a joint declaration agreed to promote an ambitious and comprehensive international climate change agreement at the upcoming Copenhagen Climate Change Summit.

“Together, we will work towards an agreement that will set the world on a path of low-carbon growth and development, aspires to a global goal of a 50% reduction of global emissions by 2050, and reflects the respective mid-term mitigation efforts of all major economies, both developed and emerging,” it said.

Following up on the G-20’s declaration at Pittsburgh, the joint declaration said: “We commit to remain vigilant to take actions to assure a strong recovery and to plan for cooperative and coordinated exit strategies to be implemented once recovery is ensured.”

The US and EU are committed to undertake financial regulatory reforms to improve the resilience of the financial system to prevent future crises, create a 21st century global economic architecture, and address pressing global challenges including energy security and climate.

The statement said: “We will lead by example by respecting our G-20 commitments to refrain from raising or imposing new barriers to trade and investment. We are committed to supporting efforts by the WTO and other international institutions to monitor new trade barriers with a view to increasing transparency in global trade.”

Expressing support for the entry into force of the Comprehensive Test Ban Treaty (CTBT), the declaration called for the start of negotiations on the Fissile Material Cut-Off Treaty in January 2010.

The statement reiterated the necessity for Iran and North Korea to fulfill their international nuclear obligations.

Welcoming the conclusion of electoral process in Afghanistan, the declaration urged new government to swiftly develop an agenda focused on the serious challenges facing the country.

Earlier at the end of the meeting, US President Barack Obama said they discussed their shared commitment to success in Afghanistan and Pakistan, where EU civilian assistance has played an absolutely critical role.

“We discussed climate change extensively. And all of us agreed that it was imperative for us to redouble our efforts in the weeks between now and the Copenhagen meeting, to assure that we create a framework for progress in dealing with what is a potential ecologic disaster,” he said.

Job losses to continue for some more time: Obama

PTI — Tue, 03 Nov 2009 10:52:00 GMT

Washington: US President Barack Obama on Tuesday said his administration has been successful in “pulling the economy back from brink” but sounded a cautious tone on unemployment, saying he expects job losses to continue for some more time.

“We have pulled the economy back from the brink,” Obama said during a meeting of the President’s Economic Recovery Advisory Board at the White House.

“We got good news last week showing that for the first time in over a year the economy was actually growing once again. And we have seen some (economic) indicators that manufacturing is beginning to pick up,” he said.

“That’s all good news and we are pleased that the actions that we took swiftly through the Recovery Act helped to stem what could have been a disastrous situation for the economy and we are starting to see stabilisation and, indeed, some improvement,” Obama said.

However, Obama expects continued job losses in the weeks and months to come.

“As I said before, there (is) always a lag of several months between businesses starting to make profits again and investing again, and then actually rehiring again,” he said.

“But I want to emphasise I am confident that having moved the economy on the right track, that if we apply some good common sense and reinvigorate that sector of our economy that’s based on innovation and dynamism and entrepreneurship, that there’s no reason why we’re not going to be able to not only create jobs, but the kind of sustainable economic growth that everybody is looking for,” Obama said.

US economy back on track; IMF raises Asia forecast

Catherine Rampell / NYT — Thu, 29 Oct 2009 18:00:00 GMT

A year after its worst tumble in more than seven decades, the US economy could be back on its feet.

The US department of commerce said on Thursday that the world’s largest economy expanded from July through September, after shrinking for four quarters in a row, a sign that the recession in that country could be over.

Healthy outlook: IMF building in Washington, DC. The fund raised its forecast for Asia, saying it would grow 2.75% in ’09 and 5.75% in ’10. Joshua Roberts / Bloomberg

The news came on a day when the International Monetary Fund, or IMF, provided further cause for cheer. The multilateral lender raised its growth forecast for Asia in 2010, even as it warned that the continent’s economic fortunes were linked to the health of the world economy.

Wall Street welcomed the strong US growth figures. The benchmark Dow Jones Industrial Average was up 82.90 points at 8.20pm Indian time, a rise of 0.85%. India’s 30-share Sensex closed down 230.77 points in a fourth straight day of losses across Asia.

“At this stage the numbers are just going to tell you the recession is over, and now the argument is going to centre on the speed of the recovery,” said Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd in New York. “There will be a lot of naysayers after the numbers because ‘cash for clunkers’ did figure prominently in the quarter’s bounceback.”

Cash for clunkers was a stimulus plan in which the US government paid consumers to trade in their old cars for new and more fuel-efficient ones. The plan, which ended in August, boosted sales by about 700,000 vehicles, according to a US transportation department estimate.

Robust US government spending, exports, consumer spending—buoyed by the cash-for-clunkers programme—and housing helped push growth into positive territory. Spending on consumer durable goods such as cars shot up an astounding 22.3% at an annual rate, compared with a decrease of 23.3% the previous quarter.

But even if a recovery is technically in the offing, job seekers in the US likely will not begin to feel the benefits for months to come. In September, the US unemployment rate reached a 26-year high of 9.8%, up from 7.6%. Economists project the jobless rate will exceed 10% by early 2010. High unemployment dampens demand for consumer goods.

The US economic growth came without a major surge in inflation. The price index for gross domestic purchases, which measures prices paid by US consumers, increased 1.6% in the third quarter, compared with an increase of 0.5% in the second, the commerce department said.

Asia’s rapid expansion will remain below the levels seen in the decade before the economic crisis as consumers in the US and other large industrialized nations curtail their spending on Asian-made electronics, cars and other goods in the face of rising unemployment and other legacies of the downturn, the fund said in a report.

“Asia has not decoupled from the rest of the world,” IMF said, wading into a broader debate over whether the region’s prospects hinge on the West. “In fact, Asia’s fortunes remain closely tied to that of the global economy.”

The fund raised its forecast for Asia, saying the broader regional economy that spans countries from New Zealand to India would grow 2.75% in 2009 and 5.75% in 2010. That’s still below the average of 6.7% over the past decade. Both projections were about 1.5 percentage points stronger than those estimated by the fund in May.

Asian countries have been leading a recovery in the world economy, with growth accelerating since governments across the region loosened monetary policies and unleashed a torrent of spending to help shelter their companies and consumers from the drop-off in global trade and finance.

Except for China, India and Australia, whose economies are staging quicker recoveries than most, Asian countries should ensure government policies continue to prop up their economies next year, the fund said. Steps to restrain the easy flow of money, through interest rate hikes and other monetary tightening, won’t be necessary anytime soon because recoveries are still fragile and risks of inflation low.

Once the effects of stimulus programmes fade, however, Asia will ultimately need to find ways to make up for weaker demand in the West by increasing its local private consumption with the help of a broader social safety net and other reforms, IMF said.

Asia’s history of high savings and low consumption reflects a lack of state pension systems and affordable health insurance. Knowing there’s no safety net, Asia’s workers save more than they otherwise would while also using part of their incomes to support their parents.

IMF also warned against raising interest rates too soon. Doing so might not only sap the tentative rebound in most countries but exacerbate this year’s surge in prices of equities, real estate and other assets in Asia. That’s because investors would be encouraged to borrow money from countries with rock-bottom interest rates, such as the US and Japan, and direct it toward nations with higher interest rates, a practice known as the carry trade.

AP, Bloomberg and a staff writer contributed to this story.

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