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As Tea Party rallies, FBI says IRS probe a top priority

Thu, 20 Jun 2013 03:47:40 +0800

By David Ingram and Patrick Temple-West WASHINGTON (Reuters) - More than a dozen FBI agents are assigned to a criminal probe into Internal Revenue Service scrutiny of conservative political groups, FBI Director Robert Mueller said on Wednesday. "It's a high-priority investigation and it needs to be handled with care, but it also needs to be pushed aggressively," he told the Senate Judiciary Committee at a hearing. Mueller spoke as Tea Party conservatives rallied outside the U.S. ...

INSTANT VIEW - Fed to keep buying bonds, boosts 2014 forecasts

Thu, 20 Jun 2013 03:30:34 +0800

REUTERS - The U.S. Federal Reserve on Wednesday said it would keep buying $85 billion in bonds per month and gave no explicit indication that it was close to scaling back the program, despite intense market speculation it could soon start drawing it to a close. KEY POINTS: * Describing the economy as expanding moderately, Fed officials cited further improvement in labor market conditions, and noted inflation had been running below the Fed's 2 percent long term goal. ...

Greek party leaders to meet Thursday over ERT impasse

Thu, 20 Jun 2013 02:55:02 +0800

ATHENS (Reuters) - Greece's ruling coalition leaders will meet again on Thursday to resolve an impasse over last week's closure of state broadcaster ERT after failing to reach agreement during talks on Wednesday, PASOK leader Evangelos Venizelos said. Venizelos said the issue would be resolved on Thursday but reiterated that public broadcasting must go back on air immediately. (Reporting by Lefteris Papadimas)

Analysis: Putin basks in isolation over Syria as Obama's charm falls flat

Thu, 20 Jun 2013 02:50:39 +0800

By Guy Faulconbridge and Timothy Heritage ENNISKILLEN, Northern Ireland/MOSCOW (Reuters) - At the end of a tense two-hour meeting with Russian President Vladimir Putin, Barack Obama - slumped over and serious - tried to lighten the mood with a joke about their favorite sports. "And finally, we compared notes on President Putin's expertise in judo and my declining skills in basketball," the U.S. president told reporters at the G8 summit, after the two men gave formal statements emphasizing their common ground rather than their sharp differences on how to end the Syrian crisis. ...

Fed keeps buying bonds, but sees economic risks easing

Thu, 20 Jun 2013 02:45:36 +0800

By Alister Bull and Pedro da Costa WASHINGTON (Reuters) - The Federal Reserve on Wednesday said risks to the outlook for the U.S. economy and job market had eased since last fall, but it said it would keep buying $85 billion in bonds per month given the still-high level of unemployment. Describing the economy as expanding moderately, Fed officials cited further improvement in the labor market and the housing sector, even as they noted that inflation was running below their 2 percent long-term goal. ...

Bank of Canada in uncharted territory, says new chief Poloz

Thu, 20 Jun 2013 02:42:21 +0800

By Euan Rocha and Peter Henderson BURLINGTON, Ontario (Reuters) - The Bank of Canada cannot rely on its usual models to assess the economy because of unexpectedly high levels of uncertainty, with the biggest risks coming from abroad, the new central bank chief, Stephen Poloz, said on Wednesday. Answering audience questions after his inaugural speech, Poloz said the central bank was in "uncharted territory" and called for direct feedback from those doing business on the ground in order to better understand what is happening. ...

Czech ruling party backs speaker to be first woman PM

Thu, 20 Jun 2013 02:09:56 +0800

By Jan Lopatka and Jason Hovet PRAGUE (Reuters) - The ruling Czech Civic Democrats have proposed lower house speaker Miroslava Nemcova as the next prime minister following the resignation of Petr Necas in a corruption scandal, the party said on Wednesday. The popular Nemcova, 60, would be the Central European country's first woman prime minister, but the center-right party needs the consent of coalition partners and President Milos Zeman to have her lead the cabinet. ...

Fed lowers growth, inflation forecasts

Thu, 20 Jun 2013 02:04:10 +0800

The Federal Reserve on Wednesday trimmed its growth forecast for 2013 slightly and slashed its inflation outlook, suggesting it saw little threat to prices from its ongoing easy-money program.

Singapore's air turns "hazardous" as Indonesian fires rage

Thu, 20 Jun 2013 01:50:25 +0800

By Kevin Lim and Eveline Danubrata SINGAPORE (Reuters) - Singapore's air quality deteriorated to "hazardous" levels late on Wednesday as smoke from slash-and-burn land clearing in Indonesia enveloped the city-state, inflaming tensions between the Southeast Asian neighbours. Singapore, a major financial centre, will send a delegation to Jakarta on Thursday to discuss the smog that has turned its usually clear skies grey, Environment Minister Vivian Balakrishnan told a news conference. ...

Ireland to put off sale of Aer Lingus stake - minister

Thu, 20 Jun 2013 01:45:38 +0800

DUBLIN (Reuters) - Ireland's government does not think the time is right for it to sell its 25 percent stake in Aer Lingus , the minister in charge of the country's privatisation plan said on Wednesday. Dublin said it would consider the sale of its remaining stake in the former state carrier two years ago and that it was determined to find a buyer once market conditions improved when it detailed its state asset sales plan in February last year. However, spending minister Brendan Howlin said on Wednesday that an investigation into rival airline Ryanair's 29. ...

Swiss parliament rejects deal to expose US tax-dodgers

Thu, 20 Jun 2013 01:27:16 +0800

Swiss lawmakers rejected Wednesday a deal proposed by Washington to expose American tax dodgers and halt a raft of US lawsuits provided that Swiss banks that helped stash the cash pay massive fines.

Italian designers Dolce and Gabbana convicted of tax evasion

Thu, 20 Jun 2013 01:14:06 +0800

By Manuela D'Alessandro MILAN (Reuters) - Fashion designers Domenico Dolce and Stefano Gabbana were handed a 20-month suspended prison sentence and a heavy fine on Wednesday for hiding hundreds of millions of euros from the Italian tax authorities. The design duo, who are nearly as famous as the stars they dress, were not present in court in Milan and will lodge an appeal against their conviction on charges that they have always denied. "We will read the reasons for the verdict, and we will appeal," said Massimo di Noia, one of the pair's defense lawyers after the hearing. ...

Euro zone wrangling may cost Greece 2 billion euros in 2013 - sources

Thu, 20 Jun 2013 00:56:30 +0800

By Martin Santa and Lefteris Papadimas BRUSSELS/ATHENS (Reuters) - European foot-dragging could leave Greece short of 2.0 billion euros (1.7 billion pounds) this year as some euro zone creditors are reluctant to roll over their Greek debt holdings, Greek and euro zone sources involved in the matter told Reuters. Greece's creditors - euro zone countries, the European Central Bank and the International Monetary Fund - agreed last December that the bloc's 17 national central banks would replace some of the Greek bonds they hold with new Greek paper as the debt matures. ...

FedEx posts higher-than expected profit, will cut more capacity

Thu, 20 Jun 2013 00:49:27 +0800

By Nivedita Bhattacharjee (Reuters) - FedEx Corp reported a higher-than-expected quarterly profit on Wednesday, sending its shares higher, but the world's biggest air-freight company said it was cutting more capacity between the United States and Asia. The company, considered an economic bellwether because of the massive volume of goods it moves around the world, is still trying to adjust to increasing demand for cheaper ground transport rather than pricier but faster air shipping. ...

Dolce and Gabbana sentenced to jail for tax dodge

Thu, 20 Jun 2013 00:36:57 +0800

An Italian court on Wednesday sentenced fashion house duo Dolce & Gabbana to one year and eight months in prison for tax evasion of 200 million euros ($268 million)

India's Tata Motors revamps 'world's cheapest car'

Thu, 20 Jun 2013 00:32:36 +0800

India's top automaker Tata Motors unveiled a new version of what was once billed as the world's cheapest car Wednesday, in a bid to reverse a slump in sales.

EU fines drugs firms 150 mn euros for delaying cheap generics

Thu, 20 Jun 2013 00:30:32 +0800

The EU executive on Wednesday imposed hefty fines of around 150 million euros on pharmaceutical firms including Denmark's Lundbeck for colluding to delay the sale a decade ago of a cheap generic version of a widely sold anti-depressant.

Switzerland buries U.S. tax law, banks seen at risk

Thu, 20 Jun 2013 00:21:34 +0800

By Ruben Sprich BERNE (Reuters) - Swiss lawmakers dealt a death blow on Wednesday to a draft law which aimed to protect the country's banks from criminal charges in the United States for helping wealthy Americans evade tax. The Swiss government has warned that the bill's failure could prompt impatient U.S. prosecutors to indict banks, though it could still use an executive order to allow them to hand over data to try to avoid criminal charges. ...

China's Xi tells Vietnam wants peace in South China Sea

Thu, 20 Jun 2013 00:16:23 +0800

By Ben Blanchard BEIJING (Reuters) - Chinese President Xi Jinping told his visiting Vietnamese counterpart of Wednesday that maintaining peace and stability in the contested South China Sea was vital for both countries, who should remember their traditional friendship. Beijing's assertion of sovereignty over a vast stretch of the South China Sea has set it directly against Vietnam and the Philippines, while Brunei, Taiwan and Malaysia also lay claim to other parts of the sea, making it Asia's biggest potential military troublespot. At stake are potentially massive offshore oil reserves. ...

Israel to export 'only 40% of natural gas finds'

Thu, 20 Jun 2013 00:07:09 +0800

Israel is to export only 40 percent of the natural gas it extracts from newly discovered gas fields off its Mediterranean coast, Prime Minister Benjamin Netanyahu said on Wednesday.

South Sudan president suspends two ministers in fraud inquiry

Wed, 19 Jun 2013 23:55:34 +0800

By Andrew Green JUBA (Reuters) - South Sudanese President Salva Kiir has suspended two key ministers in a fraud investigation, the government said on Wednesday. Western donors have warned South Sudan's government that aid payments are at risk unless it tackles the corruption undermining development in a country devastated from decades of civil war with Sudan, from which it seceded in 2011. Last year, Kiir wrote to 75 current and former officials to ask them to return $4 billion in "stolen" public money, but no senior figure had been publicly put under investigation until now. ...

Greek coalition parties meet to try to settle state TV row

Wed, 19 Jun 2013 23:29:28 +0800

By Lefteris Papadimas and Renee Maltezou ATHENS (Reuters) - Greece's ruling party leaders met on Wednesday to try to agree when and how to resume state TV broadcasts, two days after a top court ordered the immediate reopening of the state broadcaster ERT, abruptly closed by the government a week ago. ERT's screens were black or showing color bars for an eighth straight day after Prime Minister Antonis Samaras's unexpected decision to pull the plug at a few hours' notice to save money and help shore up Greece's bankrupt state finances. ...

Germany agrees financing of 8 billion euro flood aid fund

Wed, 19 Jun 2013 23:11:36 +0800

BERLIN (Reuters) - Germany has agreed the financing of an 8-billion euro fund to help repair damage caused by the worst flooding in a decade, with both the federal government and states footing the bill, the finance ministry said on Wednesday. The federal government at the outset will itself raise the full amount for the so-called "reconstruction aid" fund because of initial disagreement with the states on how the 16 regions would contribute their share of the cost. ...

Singapore air pollution soars to "very unhealthy" levels

Wed, 19 Jun 2013 23:04:04 +0800

SINGAPORE (Reuters) - Singapore's air pollution level rose to "very unhealthy" levels late on Wednesday, with the main pollution index hitting the highest on record, as smoke from Indonesian forest fires enveloped the city-state. The Pollution Standards Index (PSI) soared to 290 at 9:00 p.m. local time (1300 GMT), up from 190 just an hour earlier. A PSI reading above 300 indicates "hazardous" air quality and 201-300 means "very unhealthy". ...

Ireland on track for bailout exit, says IMF

Wed, 19 Jun 2013 23:02:25 +0800

By Sam Cage DUBLIN (Reuters) - Ireland has a good chance of exiting its bailout this year but would benefit from more European support in cleaning up its indebted banks and the safety net of precautionary funding, the International Monetary Fund said on Wednesday. Tight budgets in line with the conditions of its 85 billion euro (72 billion pounds) bailout have helped Ireland get back on its feet. In contrast to much of the euro zone, the country's economy has expanded for much of the last two years, and the Fund kept its growth forecasts for 2013 and 2014 unchanged, at 1.1 percent and 2. ...

Swiss lower house committee rejects U.S. tax deal again

Wed, 19 Jun 2013 22:31:47 +0800

By Ruben Sprich BERNE (Reuters) - A Swiss parliamentary committee has again urged the lower house to reject a draft law aimed at protecting the country's banks from criminal charges in the United States for helping wealthy Americans to evade tax. The Swiss government has warned that the bill's failure could prompt impatient U.S. prosecutors to indict banks, though it could still use an executive order to allow them to hand over data to try to avert charges. ...

Analysis: Half-way to lost decade, Europe's growth task as tough as ever

Wed, 19 Jun 2013 22:19:10 +0800

By Alan Wheatley, Global Economics Correspondent LONDON (Reuters) - Half-way towards a lost decade for Europe's economy, pessimism persists about the political will to halt a worrying slide in the region's potential growth. Without sweeping reforms to boost productivity, Europe's output will remain sub-par, making it harder for governments to reduce debt burdens that are unsustainable financially and unemployment rates that are unsustainable socially. Leaders of the 27-nation bloc will have another chance to cut this Gordian knot at a summit in Brussels next week. ...

Security risk clouds Libya's tourism ambitions

Wed, 19 Jun 2013 22:16:20 +0800

By Marie-Louise Gumuchian SABRATHA, Libya (Reuters) - The ruins of a grandiose Roman theatre behind them, two foreigners taking pictures in the Libyan coastal city of Sabratha make a rare sight these days. The ancient Roman city used to attract more than 20,000 foreign visitors annually before the 2011 war that ousted Muammar Gaddafi. Now the temples and mosaics overlooking the turquoise waters of the Mediterranean are usually deserted. The two European visitors touring the UNESCO World Heritage site on this quiet day are geologists on a work trip to Libya. ...

IMF says Spain making progress, warns on jobs and banks

Wed, 19 Jun 2013 22:15:14 +0800

By Julien Toyer MADRID (Reuters) - Spain has made strong progress in fixing its economy but needs to do more to put millions back to work and shield its fragile banks from recession, the International Monetary Fund said on Wednesday. Echoing European Commission recommendations made last month, the IMF said the government should further reform labour laws to make it easier for firms to modify shifts or reduce wages rather than dismiss workers and cut taxes to promote job creation. ...

Palestinian tobacco faces threat from crackdown on black economy

Wed, 19 Jun 2013 22:09:20 +0800

By Noah Browning YA'ABAD, West Bank (Reuters) - Palestinian farmers sow tobacco sprouts in the rocky earth of the northern West Bank, reaping a harvest that provides a reliable livelihood in the struggling occupied territory. From planting, drying and rolling, the local cottage industry has put dozens of whole families to work and has defied high levels of unemployment and poverty. But pressures on their business are growing. ...