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Iran Daily December 13, 2007 10
Putin Rejects Global Shares Fall
Oil $90
State Capitalism LONDON, Dec. 12--European
stock markets have opened lower,
following falls in the US and Asia
"The action on Wall Street was
very much knee-jerk on the disap-
pointment of not getting a 50 basis
at LaSalle Bank. He expects the
next cut could come as soon as
January.
MOSCOW, Dec. 12--President Vladimir Putin reas- which came despite Tuesday's US point cut," said Craig James at Meanwhile, oil prices dropped
sured business leaders Tuesday that Russia's new state interest rate reduction. Commonwealth Securities. Wednesday in Asia on reports
corporations would not become monopolies, and that The Federal Reserve's cut from The Federal Reserve's latest pipelines shut by an ice storm in
the Kremlin had no plans to strangle the private sector. 4.5 percent to 4.25 percent had warnings differ markedly from the US Midwest had been restart-
Putin--who has boosted the government's clout in key been expected by the markets. those made by Fed Chairman Ben ed, and after the Federal Reserve
industries, including oil, in his eight years in power-- Many had hoped for a bigger Bernanke after last month's interest cut a key interest rate less than
told business leaders from the Russian Chamber of reduction, BBC reported. rate cut, when he sounded a rela- many had hoped, AP wrote.
Commerce and Industry that the Kremlin does not The Federal Reserve also warned tively upbeat note on the health of An ice storm that caused outages
intend to create “state capitalism”, AP reported. about "the intensification of the the US economy. of key US oil pipelines helped
Putin has established state corporations focusing on housing correction and some soft- At that time, it was suggested that drive oil prices up by more than $2
manufacturing, aviation, space and construction, say- ening in business and consumer the greater risks came from infla- a barrel in the previous session.
ing a tight Kremlin grip on key industries is necessary spending". tionary pressures due to higher But Dow Jones Newswires report-
to bolster the economy. But he assured business offi- The Dow Jones fell 2.1 percent energy and food prices. But on this ed that at least one of the pipelines
cials that state corporations would get less support in and the Nikkei in Tokyo closed occasion, it warned that "recent had been quickly restarted and that
the future. down 0.7 percent. The technology- developments, including the dete- three others soon would be.
“We don't plan to keep state corporations the way they Vladimir Putin (r) in a meeting of business leaders at the Kremlin in
Moscow on Tuesday.
heavy Nasdaq fell 2.5 percent or rioration in financial market condi- Light, sweet crude for January
are now,” he said. “After the corporations are stable 66.6 points to close at 2,652.4. tions, have increased the uncertain- delivery fell 65 cents to $89.37 a
and standing on their feet, it would be good for them to Tuesday's Kremlin meeting was attended by several In London, the FTSE 100 closed ty surrounding the outlook for eco- barrel in Asian electronic trading
work in the market,” he said. top industry leaders, including the president of Russia's down 1.2 percent, while the Dax in nomic growth and inflation." on the Nymex by midday in
He also promised that the government would safe- Chamber of Industry and Commerce Yevgeny Frankfurt was down 0.8 percent "They left open the possibility of Singapore. The contract raised
guard private enterprise and ensure that state corpora- Primakov and the CEO of oil giant Rosneft, Sergei and the Cac 40 in Paris fell 1.2 per- additional rate reductions," said $2.16 to settle at $90.02 a barrel
tions “do not strangle other businesses.” Bogdanchikov, AFP wrote. cent. Carl Tannenbaum, chief economist Tuesday.
Putin, who has faced criticism over Kremlin interfer- Primakov, a former prime minister, listed two main
ence in the business world, said if state corporations dangers facing the Russian economy.
monopolize certain market niches, the government will
step in to protect smaller players. He did not elaborate.
"One is young liberals teaming up with oligarchs to
bring back the 1990s situation. The second is a part of Strike Paralyzes Italy Again
At the same time, mammoth state-controlled compa- the state apparatus teaming up with business to create a
nies such as natural gas monopoly Gazprom and oil bureaucratic market society," Primakov told Putin. "I ROME, Dec. 12--Italy's
giant Rosneft have expanded their presence in Russia think you are against this and it should be resisted," truck drivers defied a gov-
and abroad. he said. ernment order and contin-
ued to strike Wednesday,
blocking highways out-
Bank of South an Opportunity side cities and border
areas in a protest that
No Intervention in Paris Club Talks idled factories, left gaso-
line pumps dry and
BUENOS AIRES, "I can understand the "It might be less effi- pursue a process that caused shortages of basic
Argentina, Dec. 12-- political idea," behind the cient or more efficient, does not involve the foodstuffs across the
The Bank of the South bank's creation, said we will see," Strauss- International Monetary country.
launched on Sunday by Strauss-Kahn, a French Khan said of the new Fund," Strauss-Kahn told Protesters in the third of
several South American former finance and econ- regional bank. reporters after meeting a five-day walkout
countries is an alternative omy minister. "It's not a The IMF chief was in Argentina's new presi- against high gasoline
to the IMF and brings problem, it's maybe an Buenos Aires for dent, Cristina Kirchner. prices, long working
fresh opportunity to the opportunity," he was Monday's inauguration of "I can help, including hours and foreign compe-
region, IMF director gen- quoted by AFP. Argentine President by being an intermediary, tition showed no sign of
eral Dominique Strauss- "There is no reason why Cristina Kirchner, with but I am not an actor in heeding an order to return
Kahn said Tuesday. another development whom he met, along with this issue. I can only help to work issued late
bank couldn't be useful," Argentina's new resolve it," he said, Tuesday by the Transport
he added, stressing that Economy Minister stressing that the issue Ministry, AP said.
the new bank's activities Martin Lousteau. was "in the hands of Drivers could be fined Trucks are stuck at a toll booth at the France-Italy border in Vintimiglia where Italian truck drivers
started a five-day strike on Dec. 10 in protest to high fuel prices.
are not exactly the same Strauss-Kahn said Argentina and the Paris and have their licenses
as the International Tuesday that Argentina Club, not the revoked, while those talks broke down between went undelivered. get back the increase in
Strong Growth Monetary Fund's, since it should renegotiate its International Monetary engaging in violent unions and government Many gas stations across diesel oil prices," said the
HARTFORD--General will primarily deal with $6.5 billion debt with the Fund." behavior, like forcibly on the second day of a the country ran out of fuel FAI union, one of seven
Electric Co. expects per- financing development Paris Club of internation- Argentina owes $6.5 blocking ports and high- planned five-day strike. earlier in the strike. In that called the strike that
share earnings of 67 projects. al creditors without the billion to the Paris Club, way tollbooths, risk jail However, thousands of Rome, the few pumps still began Monday.
cents to 69 cents for the The Bank of the South IMF's intervention. which includes the sentences of up to four trucks still blocked the working attracted lines of The strike forced Fiat to
fourth quarter and earn- was the brainchild of But Strauss-Kahn, United States, Japan and years, the ministry said. highways Wednesday dozens of cars, which temporarily lay off thou-
ings of $2.19 to 2.21 for Venezuelan President whose institution is partly other developed countries Italy's transport minister morning and unions spilled over into the sands of workers because
the year, Chief Executive Hugo Chavez in his cam- blamed by Argentina for in Europe. ordered the end of the vowed to continue the streets causing further of a lack of supplies at
Jeffrey Immelt said paign against the United the South American The Paris Club requires highly-disruptive strike, strike as planned until gridlock. factories, and farm lobby
Tuesday. GE's outlook is States and international country's economic crisis that the IMF endorse any saying the move was nec- Friday. The unions are demand- Coldiretti said it was con-
in line with the estimate financial institutions like of 2001, said he was will- debt restructuring deal, essary to protect the deliv- The protest left super- ing greater financial help sidering legal action to
of $2.20 by analysts sur- the IMF and World Bank, ing to be an intermediary but Argentina's govern- ery of essential supplies. market shelves empty as to compensate for the demand damages for the
veyed by Thomson which he claims are tools between the two sides. ment rejects the IMF's Alessandro Bianchi fresh produce like milk, higher price of diesel. tons of perishable goods
Financial. GE also said it of Washington. "The best solution is to participation. issued the decree after meat, fruit and vegetables "It is essential that we left rotting in warehouses.
expects revenue of $172
billion for the year.
EU Deficit Rising China-US Trade Threatened by Protectionism
Mining BRUSSELS, Belgium, Dec. 12-- Euros registered in the third quarter of
The European Union's current account last year, according to the first estimate XIANGHE, China, Dec. 12--China and the United the latest US figures.
Investment deficit grew to 16.3 billion Euros ($23.9 from the EU's Eurostat data agency, States warned each other Wednesday that their boom- Critics in the United States blame what they say is a
ABIDJAN--Indian steel billion) in the third quarter of the year, AFP reported. ing but tense trade relationship was under threat from wealth of unfair trade practices from China for the
giant Tata is to invest according to EU data released on The current account deficit, the broad- protectionism, as they began two days of top-level eco- deficit, including keeping the currency, the yuan, at an
"between one and two Tuesday. est measure of trade in goods and serv- nomic talks. artificially weak level.
billion dollars" (680 mil- The 27-nation bloc's current account ices, thus fell 0.5 percent of the Proposed US trade legislation was a particular risk, "Whereas trade was once largely a source of stability
lion to 1.3 billion euros) deficit was up from 14.6 billion Euros European Union's gross domestic prod- Vice Premier Wu Yi, the head of the Chinese delega- in US-China relations, it has recently become a source
in an iron mine in the in the second quarter of 2007, though uct in the third quarter of 2007, from tion, told US Treasury Secretary Henry Paulson. "I am of tension, and not only because of safety concerns,"
Ivory Coast, the firm's down significantly on the 24.6 billion 0.9 percent in the same period last year. particularly concerned about the 50 or so protectionist Paulson said. "Worries about the effects of foreign
director general China-related bills introduced in the US Congress," competition--through trade or through foreign invest-
announced Tuesday.
Tata will create a joint
Norway Proposes Carbon Auction said Wu, the country's highest-profile trade official,
AFP reported.
ment--have led to a rise in economic nationalism and
protectionist sentiments in both our nations," he said.
venture with the pub- NUSA DUA, their needs, the proceeds process to hammer out "I need to be quite candid about this: If these bills are He warned against "short-term, politically expedient
licly-owned Ivory Coast Indonesia, Dec. 12-- of which would help poor economic solutions to one adopted, they will severely undermine US business ties actions," arguing that neither side can "protect (its)
Society of Mines for the Norway's finance minister countries adapt to climate the biggest challenges with China," she said. way to further prosperity."
rights to the mine at on Tuesday proposed a change, said Halvorsen. facing the world today. The third Sino-US Strategic Economic Dialogue, Paulson also said China's leaders should loosen the
Mount Nimba, in the fresh plan to battle cli- "If you implement a "One of the most impor- held an hour's drive from Beijing, was expected to reins on the nation's currency to better address internal
west of the country. mate change by quota system, you can tant challenges of this focus on China's enormous trade surplus with the issues such as "mounting inflation, growing asset bub-
Auctioning off permits to withhold a small portion conference ... is how to United States and the Chinese currency, which US crit- bles and possible overheating."
Power emit CO2 and using the for Auction, and then distribute money from the ics say is undervalued. Reflecting the lingering tension, the US trade chief,
profits to help poor maybe the UN or some rich countries to the "Obviously, to resort to trade protectionism and Susan Schwab, told Congress in an annual report on
Rationing nations cope with global other international organi- poor," she said. blame another country for the structural problems in Tuesday that China was failing to live up to its World
JOHANNESBURG-- warming. zation gets the revenue Poor countries say that the US economy is the wrong approach which would Trade Organization commitments. In the report,
Energy-strapped South Kristin Halvorsen said from this Auctioning, and the industrialized nations- only harm the interest of the United States itself," she Schwab cited "China's shortcomings in observing
African power utility that a global cap should be then finances adaptation -which climate scientists said. basic obligations of WTO membership, as well as
Eskom warned Tuesday put on how much pollut- for poor countries," say were historically The US trade deficit with China hit $23.8 billion in Chinese policies and practices that undermine previ-
that nationwide electrici- ing greenhouses gases can Halvorsen told AFP. responsible for most of September, up 5.5 percent from August, according to ously implemented commitments."
ty rationing would last be spewed into the atmos- She put her proposal to a the greenhouse gases in
until the end of the week phere to help stabilize forum of finance minis- the atmosphere--should
and could return in
January. The electricity
these emissions at a safe
level.
ters and economic offi-
cials on the sidelines of a
pay for the knock-on
effects around the world.
Greece, Libya Mull Gas Pipeline
group announced the That amount would then United Nations gathering Under the present format TRIPOLI, Libya, Dec. 12-- Greece's deputy foreign minis- energy, transport, telecoms and
start of rationing on be divided up among the looking to lay out a of the Kyoto Protocol, Greece has proposed building a ter, Petros Doukas, during a tourism industries have been in
Monday because it was world, with individual roadmap to deepen action there is no global ceiling submarine pipeline to transport meeting in Tripoli with the Libya since Monday.
unable to meet demand. countries agreeing to their against climate change. on Carbon emissions. natural gas from Libya to the chairman of the Libyan National According to the NOC, Greece
Each district of the coun- own share. She said the suggestion Instead, industrialized Mediterranean island of Crete, Oil Co., Shokri Ghanem, Jana is a major importer of Libyan
try faces daily power A small amount of emis- was well received, but countries that are parties Libya's Jana news agency said. petroleum and derivatives,
cuts of two and half sions would be held over added that the finance to the 1997 accord agree reported on Tuesday. Doukas and a delegation of importing around $1.234 billion
hours as a result. and Auctioned to rich ministers meeting was to their own, individual, The proposal was made by Greek businessmen from the worth this year.
nations to help them meet only the start of a long targets for pollution.
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