"Bush had one overriding criterion in choosing his inner circle: loyalty. The result was nobody would pull the plug on stupidity."

Roger Cohen
NYT Columnist

Insider's view: see how local concerns shape up the global world. Read the daily press review in Migalhas International

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• Top News

World economy 'weakest since 30s'

The United Nations says the world economy faces its worst downturn since the Great Depression. It expects world economic output to shrink by as much as 0.4% in 2009, due to a slump among developed countries - particularly the US and in Europe. This would mark the world economy's first year of contraction since the 1930s, the UN said. The report added there had been complacency about the impact of the financial crisis on poorer countries.

Mumbai attack strains India-Pakistan relations

Life in Mumbai is returning to its usual bustling frenzy after last week's massacres. But as investigators attempt to untangle the Islamist terror web behind the attacks, India is finding that security in a city of 18 million — and a nation of 1.2 billion — is a daunting job. Tensions are rising between two of America's biggest partners in the war on terrorism.

Tensions grow between Thai protesters, police

The siege at two major airports in Thailand continues. Police Sunday ordered anti-government protesters to disperse, but so far the order has been ignored. Meanwhile, thousands of pro-government supporters held a rally in Bangkok.

UN forum backs harsher penalties for sex tourists

Tourists who go abroad to abuse children should face the prospect of prosecution in their home countries if they are caught having sex with kids in nations with lax penalties, participants at a U.N.-backed conference concluded Friday. Their final declaration called for nations to establish laws allowing stiffer prosecution of child sex cases for perpetrators who take trips to nations with few or no penalties because they know they'll face little if any retribution. Participants are now expected to go to their home countries and lobby governments for the law changes. They also supported the creation of detailed sexual abuse databases in nations around the world so that governments can find out the extent of sexual exploitation of children beyond just the sex trade. Armed with that information, they can work to solve problems ranging from child prostitution, sexual abuse of children by people ranging from family and friends to priests.

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• MiMIC Journal

Economy warning from China leader

China's President Hu Jintao has warned that the global financial crisis could weaken his country's competitiveness and that the economic situation was a test of the Communist Party's ability to govern.

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• Brief News

UK 'closer' to adopting the euro

The euro zone may not be perfect, but it's warmer inside. British politicians are actively considering joining the eurozone, says European Commission president Jose Manuel Barroso. However Downing Street said its position on the euro remained the same. The key test is whether the UK economy is coming together with those of countries in the eurozone and whether this can be sustained in the long-term. The second test, linked to this, is whether there is sufficient flexibility to cope with economic change.

Drug firms 'block cheap medicine'

Drug companies are blocking or delaying the entry of cheaper generic medicines into the EU, pushing up medicine bills, the European Commission has said. Their actions cost EU healthcare providers 3bn euros ($3.9bn) in savings between 2000 and 2007, it said. It added that drug firms used legal action and multiple patents to stop rivals getting to market. Drug firms said the "perfectly lawful" measures were justified to protect investment in research and development.

What is deflation?

Many major Western economies are in recession and others are heading towards it. But some experts are warning that deflation could be next. And, if there is one word to get an economist quaking in their boots, it is deflation. It is what happened in the Great Depression of the 1930s and in Japan in the 1990s. "Deflation is, as it sounds, the opposite of inflation. It means that the general level of prices is falling consistently over quite a long period of time. They're not just one-off price cuts, and we've seen those for a long time now in things like computers or electronic games. If it's just a few types of item, or it only happens for a short period, nobody's very worried. It's if it's longer lasting and more widespread than that, and then it's deflation." Falling prices might sound great for consumers, but in fact this is bad news for everyone as it can lead to a vicious circle of decreased spending and increased unemployment. "People wait as prices fall for goods to get cheaper before buying and in fact they become the buyers' strike. "Then that creates more deflation, more job losses and so on. The reason why economists also worry about deflation is because it's much harder to combat than inflation. If inflation rises there's no limit to how far you can raise interest rates, with deflation there is a limit to how far you can cut interest rates."

Ryanair in new Aer Lingus offer

The budget airline Ryanair is to make a fresh takeover offer for the Irish flag-carrier Aer Lingus. The all-cash offer would value Aer Lingus at 748m euros ($950m). Ryanair's previous offer for Aer Lingus, which valued it at 1.5bn euros, was blocked by the European Commission on competition grounds. "The world has changed dramatically over the past two years, as high oil prices and deep recession have caused a flood of airline bankruptcies, consolidations and capacity cutbacks," said Ryanair boss Michael O'Leary.

National Security Law marks 60 years

The National Security Law marks its 60th anniversary in South Korea. Enacted in 1948 as a time-limited law during a period of emergency, the National Security Law itself speaks of South Korea’s winding modern history and of incomplete democracy. Under the Lee administration, the law and the power of public security organizations depending on it have grown in strength

Brady Law at fifteen: 1.6 million dangerous sales blocked, but there's more work to do

Fifteen years ago today, President Clinton signed the Brady Bill into law, America's first critical step toward requiring criminal background checks for all firearm purchases in order to keep guns out of the hands of dangerous people. A true success story, the law has blocked 1.6 million bad sales to felons, fugitives, domestic abusers, dangerously mentally ill and other prohibited purchasers -- but the nation still allows too many sales to go forward without a Brady background check. A true success story, the law has blocked 1.6 million bad sales to felons, fugitives, domestic abusers, dangerously mentally ill and other prohibited purchasers -- but the nation still allows too many sales to go forward without a Brady background check. Too many sales -- from so-called 'private sellers' at gun shows, through classified ads and by word of mouth -- still don't require background checks

Panel foresees unconventional terror threat

A panel concluded that terrorists will likely attack with biological or nuclear weapons somewhere in the world in the next five years unless the U.S. and allies act urgently to prevent that.

EU drops antitrust case against E.ON

The European Commission dropped its electricity antitrust case against E.ON, saying the company's promise to sell capacity and part of its grid would address competitive bottlenecks in the market.

Associate bonuses at big law firms may drop up to 75 percent

A law firm consultant is telling law firms to cut back on bonuses this year—advice that several firms already appear to be heeding. Associates who got year-end and special bonuses last year totaling $115,000 may see only about one-fourth of that amount this year. Law firms have already announced lower year-end associate bonuses this year topping out at around $30,000, with no mention of any special bonus. Last year, some bonuses amounted to 22 percent of total pay for new associates.

Argentina court formally charges ex-president Menem in arms deals

Former Argentine President Carlos Menem was formally charged Friday with illegally trafficking arms to Croatia and Ecuador, contrary to a 1991 UN embargo against Croatia and a 1995 Organization of American States (OAS) ban on selling arms to Ecuador. Defense lawyers contend the then-president authorized legal arms shipments to Venezuela and Panama which were then diverted, without Menem's knowledge, to Croatia and Ecuador. A Buenos Aires-based court charged Menem by videolink with his home town in Argentina's northern La Rioja province as Menem said health problems precluded his attendance.

Civil rights complaint filed over subprime credit ratings

National Community Reinvestment Coalition (NCRC) has filed a federal civil rights complaint with the US Department of Housing & Urban Development (HUD) Office of Fair Housing & Equal Opportunity (FHEO) claiming that two leading credit rating agencies, Moody's Investor Services and Fitch Inc., caused significant damage to African-American and Latino communities during the current foreclosure crisis. The complaint alleges the two agencies facilitated, encouraged, and profited from discriminatory lending by making public misrepresentations about the soundness and reliability of subprime securities’ ratings.

• Weekly Magazines

Time

How ro fix America’s schools. Rhee Tackles Classroom Challenge. Teachers hate her. Principals are scared of her. How Michelle Rhee became the most revolutionary — and polarizing — force in American education.

Newsweek

The Global Agenda. How to Fix the World.

Business Week

Can Obama Keep New Jobs at Home? Massive fiscal stimulus could wind up creating jobs offshore as funds are spent on imports.

The Economist

Terror in India. A dangerous new front-line in the global war against terrorism.

Der Spiegel

Angela Mutlos. Das gefährliche Zaudern der Kanzlerin in der Wirtschaftskrise.

• Daily Press Review

'No water' in cholera-hit Harare
BBC News, Centrist newscaster, London, England

Congo Government Calls Human Rights Watch Allegations Unfounded
CongoPlanet.com, Independent online news aggregator

NHIS to embark on awareness walk
GhanaWeb, Online news portal, Amsterdam, Netherlands

Now anthrax rocks Zim
iafrica, Online news portal, Cape Town, South Africa

Nzimande disparaging on Manuel's policies
Independent Online, News portal, Cape Town, South Africa

Smith looks to Australia after crushing Bangladesh
Mail & Guardian Online, Liberal, Johannesburg, South Africa

Taliep judgment gets under way
News24.com, Online news portal, Cape Town, South Africa

Brazil rain toll mounts to 110
Brazil Sun, Independent online news aggregator

I sold my stocks (the psychic said I should)
The Globe and Mail, Centrist daily, Toronto, Canada

Police chief asks Water Police to intensify security in outermost isles
Antara News, News agency, Jakarta, Indonesia

Gov't Launches Taskforce to Support Real Economy
Chosun Ilbo, Conservative daily, Seoul, South Korea

R R Patil quits, Deshmukh offers to resign
India Express, News portal, Mumbai, India

Japanese tourist found dead in hotel
India Times, Conservative daily, New Delhi, India

Apache sweep Golden Kings to send out warning to bj-league rivals
Japan Times, Independent centrist, Tokyo, Japan

Forms for EPF members to contribute at 11% now available
Malaysian Star, Online news portal, Selangor Darul Ehsan, Malaysia

Obama to name Clinton top diplomat tomorrow
New Zealand Herald, Conservative daily, Auckland, New Zealand

Official: AIDS in Indonesian grows rampantly
People's Daily Online, English-language, Beijing, China

That goofy dance is now generating big bucks
Sydney Morning Herald, Centrist daily, Sydney, Australia

Patil quits, Chidambaram takes charge of Home
The Hindu, Left-leaning daily, Chennai, India

RBS offers to delay repossessions
BBC News, Centrist newscaster, London, England

Training legionnaires to fight (and eat rodents)
International Herald Tribune, Independent daily, Paris, France

At war level: India raises security status amid grief
The Guardian, Liberal daily, London, England

Ryanair bid for Aer Lingus dismissed as 'mischief'
The Irish Times, Centrist daily, Dublin, Ireland

Mumbai attacks: India's relationship with Pakistan in the balance
The Telegraph, Conservative daily, London, England

Thai protesters end occupation of Government House
Times Online, Conservative daily, London, England

Livni Calls on Olmert to Resign
Arutz Sheva, Online, right-wing, Tel Aviv, Israel

Terror in Mumbai: A Saudi Survivor Tells His Story
Asharq Al-Awsat, Pan-Arab daily, London, England

Toll in Nigeria clashes rises to around 400
Gulf News, Independent daily, Dubai, United Arab Emirates

EGYPT: Anti-Piracy Flotillas Rattle Arab Security
IPS Middle East, International cooperative of journalists, Rome, Italy

UAE- RAK Tourism boosts hotel developments
Middle East North African Network, Online financial portal, Amman, Jordan

Mumbai Bloodshed Threatens to Escalate India-Pakistan Tensions
Nahamet, Online news portal, Beirut, Lebanon

Obama set to officially name Hillary and Gates to cabinet
The Daily Star, Independent daily, Beirut, Lebanon

Confrontations between security and JMP demonstrators
Yemen Times, Independent weekly, Sana'a, Yemen

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