September9, 2005 n° 255 - Vol. 3

"True individual freedom cannot exist without economic security and independence"

Franklin D. Roosevelt
 32nd president of US (1882 - 1945)

• Top News

Lula has promised to press ahead with his economic policies despite the scandal that has engulfed his party. In an address marking Independence Day, he pledged to investigate corruption allegations against the Workers Party and to punish those found guilty. The party has admitted receiving millions of dollars in illegal funds. "Brazil is bigger, much bigger than all this and we cannot lose the economic and social opportunity that we have built at the cost of so much sacrifice," he said in his address. "It is a characteristic of the Brazilian people to fight against adversity and overcome. We will overcome, with courage and calm, the current political turbulence," the president added. 

In a widening political scandal, the owner of a restaurant concession in Brazil's Congress said on Thursday he had paid kickbacks to the lower house president, an admission that could force the resignation of a vital government ally. After earlier denying it, the restaurant owner, Sebastiao Buani, confirmed allegations in news magazines that he paid Severino Cavalcanti in exchange for the concession. "There was no secrecy whatsoever, the money was handed over in brown envelopes," Buani told a news conference. As lower house president, Cavalcanti has the final say on whether to file impeachment requests against politicians and controls the legislative agenda. Buani said that in 2002, Cavalcanti, who was then congressional first secretary, demanded a payment of 40,000 reais ($16,000) to extend his restaurant concession in the Congress building, saying he needed the money to fund his election campaign. Buani said he also paid Cavalcanti 10,000 reais ($4,000) a month for seven months in 2003, but stopped because the payments were ruining his business. Cavalcanti, who is currently in New York, has denied he received kickbacks from Buani and refused to step down. 

Thousands of anti-corruption demonstrators rallied in S"o Paulo yesterday, demanding harsh punishment for politicians caught up in the bribery scandal. Protesters, including unionists, students and businessmen, braved heavy rains to vent their rage. Many demonstrators said 19 legislators from six political parties linked to the corruption scandal should get jail time. 

Israeli troops may complete their withdrawal from the Gaza Strip on Monday, three days ahead of schedule, Defense Minister Shaul Mofaz says. He added that the controversial destruction of synagogues in former Jewish settlements was the only factor that could cause a delay. Israel's Supreme Court has rejected an appeal against their demolition. Mofaz said the cabinet was due to make a final decision on Sunday, adding he would vote against demolishing them. 

The foundation stone for the last section of the inter-oceanic highway was laid on Thursday in the Peruvian city of Puerto Maldonado. The presidents of Peru, Brazil and Bolivia all took part in the ceremony. Politicians and international organizations have stressed the importance of transport links for the region's economic development. More than 500 years after the Spanish and Portuguese arrived in South America, it is still impossible to drive across the continent on a continuous paved road. But that is about to change. Stretching more than 2,500 km (1 553 miles), the inter-oceanic highway will connect the Atlantic with the Pacific, resulting in important economic fallout. 

Animal testing group Huntingdon Life Sciences (HLS) has demanded an explanation as to why the NYSE halted its debut. The company said they had been given "scant information" about the exchange's decision. Reports claim the NYSE received calls warning it could be threatened by animal rights activists opposed to HLS. But NYSE would only confirm the firm's floatation had been postponed. Just 45 minutes before shares in Life Sciences Research - the US parent company set up by HLS - were due to begin trading on Wednesday, HLS executives were taken to one side by the exchange's boss and told the listing had been postponed. 

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Chinese and US Customs officials say they have broken a major pharmaceuticals smuggling ring. Eleven Chinese citizens and an American man have been arrested in a counterfeit medicine scheme that spanned 11 countries. It involved around $4m-worth of fake drugs, officials of both countries have said. But it is a rare success in China's attempts to safeguard intellectual property rights. The arrested men are accused of manufacturing fake versions of well-known drugs including Viagra and the cholesterol-reducing Lipitor. The drugs were made in China, sold on the internet and delivered by mail to customers in Britain, America and Israel. It was a tip-off from the pharmaceutical company, Pfizer, that led to the investigation. 

Eighteen Buddhist monks in China are pausing in their spiritual pursuits to concentrate on more worldly issues. They have joined business classes in temple management at Jiaotong university in Shanghai. Their study will include corporate strategy and religious product marketing. 

The European Union has approved a trade deal with China that aims to end a row over import quotas and free up millions of garments stuck in port warehouses. The approval means the clothes - bras, trousers, sweaters, and other items - could head for their final destinations in Europe's shops within a week. The agreement confounds fears that textile producers such as Italy and Portugal might refuse to sign up. The row blew up over a sudden surge in Chinese imports this year. 

Phone equipment manufacturer Ericsson said it plans to invest $1bn in China over the next five years. Ericsson said that it would focus on 3G systems, which allow users to download larger amounts of data more quickly and access services such as music videos. The company also plans to use the money to finance "significant local purchasing". 

State-owned China Minmetals Corp. the country's biggest trading house, has held joint venture talks with CVRD. Minmetal's President Zhou Zhongshu said the Chinese group was already buying products from CVRD, the world's biggest iron ore miner, and wanted to expand the relationship. 

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Police backed by troops have started to use force to remove people from their homes in the city of New Orleans amid growing fears of epidemics. As many as 10,000 people had refused to leave the flooded city despite the mayor's compulsory evacuation order. Many are now going voluntarily - but others are being handcuffed and taken to evacuation centers.

Meanwhile, a new opinion poll suggests that two-thirds of Americans think Bush could have done more in the aftermath of Hurricane Katrina. 

Oil prices rose for the second day running amid predictions from the US that this winter would bring the highest energy costs for a decade. As more damage reports from Hurricane Katrina filtered in, US light crude rose 52 cents to $65.01 a barrel. The US Energy Department forecast that gasoline would cost 34% more than a year ago this winter. It said natural gas would be 52% more expensive and electricity would cost US consumers 11% more than in 2004. This is expected to result in a 24% annual rise in total energy expenditure in the US, accounting for about 8.7% of GDP.

Proposals to introduce elements of Muslim law in Canada's largest province spark nationwide protests. Islamic law could be used to settle civil and marital disputes under the proposal. Roman Catholic and Jewish arbitration tribunals already operate Ontario. Opponents of Sharia law say allowing Islamic tribunals could lead to discrimination against women. 

EU plans to make telecommunications companies store details of calls and e-mail traffic for a year or more were criticized by the industry on Thursday. European interior ministers meeting in Newcastle heard that the measure would be hugely expensive and would violate EU data protection laws on invasion of civil liberties. The proposal is part of an EU plan to fight terrorism. 

Microsoft has filed a second appeal against a European Union ruling that stated it had to give rivals greater access to its operating systems. In March 2004, the world's biggest software firm was found guilty of abusing its position, hit with a record fine and told to open up its systems. Microsoft has appealed against the fine and now wants to avoid giving more information on its server programs. The firm argues that doing so would violate intellectual property rights. 

The world's biggest brewer by volume, Inbev, has unveiled an 86% profits rise for the first half of 2005, thanks to growth in Latin America and Russia. Belgium-based Inbev said net profits were 382m euros ($474.6m), up from 205m euros a year earlier. The group, which makes Stella Artois, Brahma and Beck's, said three-quarters of sales came from emerging markets. It said it performed poorly in traditional markets: Britain, Belgium and Germany. 

Government workers classified over 15 million documents last year, more than twice the number classified in 2001. The cost? About $7 billion. 

The European Parliament has approved a law intended to boost the production of children's medicines. The law obliges firms producing a drug for adults in the EU to test whether it can also be used for children. It also gives firms an new incentive to produce children's drugs, by adding six months to the patent protection period. At present most of the drugs prescribed to children have not been tested for paediatric use, forcing doctors to guess the right dose. 

Brazil's Environmental Protection Agency Ibama said it had licensed a unit of the state-run oil company Petrobras to start building a controversial gas pipeline cutting through pristine Amazon forest. Petrobras and environmentalists have quarreled since 2001 over the planned 550-kilometre pipeline from the oil- and gas-producing region of Urucu in Amazonas state to the city of Porto Velho in Rondonia state. Petrobras plans to use the pipeline to supply gas-fired power plants in Porto Velho. The company currently re-injects most of the 9.3 million cubic metres of natural gas it produces in Urucu. 

Bunge Ltd., the world's biggest oilseed processor, said business was being hurt by weakness in the Brazilian fertilizer market, and a profit forecast for 2005 will only be attained by tax changes (18 and 22 percent from a range of between 28 and 33 percent). 'Weak operating conditions in the Brazilian fertilizer industry are expected to persist for the remainder of the year,' Bunge said. 

Brazil's economy probably slowed this quarter as industrial output lost momentum and allegations of corruption against the government eroded confidence. The Institute of Applied Economic Research estimates industrial production fell between 0.5 percent and 1 percent in July from the previous month, seasonally adjusted, as factories scale back expansion plans 

Brazil sold $1 billion of 20-year bonds to help finance a debt buyback and raise funds for 2006. The Finance Ministry said it sold the bonds to yield 8.52 percent, down from a yield of 8.9 percent when it first sold $1.25 billion of the securities in January. Brazil sold $1.25 billion of the bonds in the January sale. Brazil, the largest debtor among developing nations, is taking advantage of growing investor demand for higher-yielding securities after the yield on 10-year U.S. Treasuries last week fell to the lowest since July. U.S. treasury yields overall are lower. That's good for Brazil. 

'Yes' team fights back
East African Standard, Liberal daily of Nairobi, Kenya 

What if the alliance splits?
Mail and Guardian, Liberal daily of Johannesburg, South Africa 

Zimbabwe launches MDGs report
Panapress, Pan-African news agency of Dakar, Senegal 

PDP Elders Meet, Say Obj/Atiku Feud Rumour
This Day, Independent daily of Lagos, Nigeria

Former Russian president Boris Yeltsin recovering from fall
The Globe And Mail, Centrist daily of Toronto, Canada 

Penguin News Update
MercoPress, News Agency of Montevideo, Uruguay

Six-Party Talks to Resume Sept. 13
Chosun Ilbo, Conservative daily of Seoul, South Korea 

Granny killer found dead in cell
The Sydney Morning Herald, Centrist daily of Sydney, Australia 

Indonesia Will Not Propose Anything Regarding UN Security Council Reform
Tempo, Independent weekly of Jakarta, Indonesia 

India could have been cradle of civilisation
The Times Of India, Conservative daily of New Delhi

Islam oppressive to women
The Daily Telegraph, Conservative daily of London, England 

EU Data-Retention Bill Likely to Be Delayed
Deutsche Welle, International broadcaster of Cologne, Germany 

Kremlin bell tower restoration to finish in 2005
Interfax, Government-owned news agency, Moscow, Russia 

Putin Hedges His Bets in German Campaign
The Moscow Times, Independent, English-language daily of Moscow, Russia 

Political experts warn that oligarchs crave for revenge
Pravda, Liberal daily of Moscow, Russia 

Teenager's suicide shakes Scots town of tragedy just weeks after Rory died
The Scotsman, Centrist daily of Edinburgh, Scotland

Slain Gaza security chief's son freed
Aljazeera.net, English-language Web site of Doha, Qatar 

All Five Terrorists Killed Were on the Wanted List
Arab News, Pro-government, English-language daily of Jidda, Saudi Arabia 

Final Cabinet Vote on Synagogues to be Held Sunday
Arutz Sheva, Pro-settler publication of Israel 

Israel closes vital Gaza-Egypt border crossing
The Daily Star, Independent, English-language daily of Beirut, Lebanon 

IDF evacuates remaining facilities in Gaza Strip
Ha`aretz, Liberal daily of Tel Aviv, Israel 

War Disabled Day commemorated in Iran
Islamic Republic News Agency, Government-owned news agency of Tehran, Iran 

Exclusive: Austria launches probe into Cyril Kern affair
The Jerusalem Post, Conservative daily of Jerusalem, Israel

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