The top job at the IMF usually goes to a European while an American leads its sister organisation, the World Bank The battle for the top job at the IMF has intensified as a group of leading emerging economies attacked Europe’s “obsolete” grip on the position ahead of an expected declaration from French finance minister Christine Lagarde that she wants to be head of the organisation on Wednesday. The Bric nations – Brazil, Russia, India and China – along with South Africa said in a rare joint statement that the choice of managing director on the basis of nationality undermines the legitimacy of the International Monetary Fund, and stressed it should be based on competence. “The recent financial crisis which erupted in developed countries, underscored the urgency of reforming international financial institutions so as to reflect the growing role of developing countries in the world economy,” they said. They called for the end of the “obsolete unwritten convention that requires that the head of the IMF be necessarily from Europe,” which dates back to the founding of the agency at the end of the second world war. The top job at the IMF usually goes to a European while an American leads its sister organisation, the World Bank. However, the Bric countries did not suggest an alternative candidate to Lagarde, who is set to formally announce her candidacy on Wednesday. She has garnered support in Europe – including from the UK government – and the United States. Hours before the Bric statement was issued in Washington, France’s government said China would back Lagarde to succeed Dominique Strauss-Kahn, who resigned after being charged with sexually assaulting a hotel maid in New York. China’s foreign ministry declined to comment. Lagarde has played a key role in protecting France’s financial system since the crisis struck, but she faces a possible legal probe of her role in a payout to Bernard Tapie, a prominent French businessman, to settle a dispute with a state-owned bank in 2008. Mexico has nominated its central bank chief , Agustin Carstens, for the IMF role. Former South African finance minister Trevor Manual has been mooted as a possible candidate, although he is currently involved in a racism row which would undermine his diplomatic credentials, and Russia has said it would back Kazakhstan’s central bank chief, Grigory Marchenko. IMF Christine Lagarde Economics Global economy Dominique Strauss-Kahn Julia Kollewe guardian.co.uk
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Focus had 178 shops and employed 3,920 people when it collapsed but E&Y managed to sell 55 stores to B&Q owner Kingfisher Up to 3,000 jobs are to be lost at Focus DIY as the administrators announced the closure of its remaining 120 stores, crushing hopes that a buyer could be found. The loss-making DIY chain, owned by US privatey equity firm Cerberus, collapsed into administration three weeks ago, burdened by debts of around £230m. Administrators at Ernst & Young are appointing Gordon Brothers, a specialist retail agent, to liquidate stock and shut the remaining shops. Focus had 178 shops and employed 3,920 people when it collapsed but E&Y managed to sell 55 stores in tranches to B&Q owner Kingfisher , rival DIY chain Wickes, owned by Travis Perkins, and discount chain B&M Retail, saving some 900 jobs. A mooted management buyout led by former Focus chairman Bill Grimsey has not materialised. An E&Y spokeswoman said the administrators would continue to try to sell the remaining stores, but closing down sales are set to start on Wednesday. Focus has blamed the recession and the housing slump for its troubles, but analysts say it has always been squeezed by the two bigger DIY chains, B&Q and Homebase, and never managed to carve out a niche for itself. Retail industry Job losses Julia Kollewe guardian.co.uk
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Bombing campaign steps up pressure on Gaddafi regime amid upbeat assessments of dictator’s ‘inevitable’ departure Nato has carried out its heaviest air strikes against Libya’s capital in more than two months of bombing, amid upbeat comments from France and the US on progress towards ending Muammar Gaddafi’s rule. Six loud explosions rocked Tripoli within 10 minutes late on Tuesday. These followed powerful strikes 24 hours earlier, including one on Gaddafi’s compound, that Libyan officials said killed 19 people and state television blamed on “colonialist crusaders”. The French foreign minister, Alain Juppé, said on Tuesday that the Nato bombing campaign was making progress and should achieve its objectives within months. An alliance official said Tuesday’s early strike was “the most concentrated to date”. France, Britain and the US are leading the air strikes, which started on 19 March after the United Nations security council authorised “all necessary measures” to protect civilians from Gaddafi’s forces as he sought to crush an uprising against his 41-year rule. The three countries have declared they will keep up the campaign until Gaddafi leaves power. Juppé’s upbeat assessment came after the US said the Libyan leader’s departure was inevitable. “There are more and more centres of resistance (to Gaddafi), especially in the west,” Juppé said during a question and answer session in the French parliament. “Defections are speeding up.” “I can assure you that our will is to ensure that the mission in Libya does not last longer than a few months.” France said this week it would deploy attack helicopters to ensure more precise attacks against Gaddafi forces embedded among the civilian population of Libyan cities. Britain said on Tuesday it was considering doing the same. Military analysts said these plans and the intensified bombing of Tripoli reflected growing western concerns that Libya’s civil war was dragging on. But they said the latest moves may not be enough to tip the balance quickly. While critics argue that Nato has overstepped its mandate, rebels have complained western forces are not doing enough to break Gaddafi’s army. Gaddafi denies his forces target civilians and says the rebels, who control the east of the oil-producing country, are criminals, religious extremists and members of al-Qaida. The US bolstered the credentials of the Benghazi-based rebel National Transitional Council as a potential government-in-waiting on Tuesday when an American envoy invited it to set up a representative office in Washington. Unlike France, Italy and Qatar, the US has not established formal diplomatic ties with the rebels. Jordan said on Tuesday it recognised the rebel council as a legitimate representative of Libya’s people and planned to open an office in Benghazi. Libyan news agency Jana said targets hit by Nato on Tuesday included a Tripoli mosque called Nuri Bani, though this could not be independently verified. A French newspaper reported that Gaddafi was tired of fighting a civil war under constant pressure from Nato bombs, and would step down if allowed to remain in his country. France Soir, citing “reliable sources, close to Libyan power”, said people in Gaddafi’s entourage had been holding secret meetings with representatives from western countries, including France, for weeks. It said Gaddafi, traumatised by the death of a son and three grandchildren in a Nato raid, was tired of living as a hunted man and spent several hours a day watching Arabic news channels and surfing news on Arab, English and Italian websites. In his public pronouncements, Gaddafi has vowed to fight to the death. Libya Nato Muammar Gaddafi Middle East Africa France United States Jordan United Nations guardian.co.uk
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Day two of Barack Obama’s UK visit sees the US president in Downing Street talks, giving a speech to parliament and his wife reunited with London schoolgirls she first met in 2009 8.50am: Oh dear. Eamonn Holmes is on Sky News talking about Michelle Obama and fashion. “Most women would cover that derriere,” he tells Emily Sheffield, the deputy editor of British Vogue (and Samantha Cameron’s sister). The two go on to discuss the clothes worn by the Duchess of Cambridge and the Queen. Holmes is careful what he says about SamCam. 8.45am: It’s day two of Barack Obama’s state visit to Britain. Yesterday the US president went to Buckingham Palace and looked at the art , exchanged gifts with his hosts , managed to get some US media attention by meeting William and Kate, lay a wreath at Westminster Abbey, high-fived David Cameron in a game of table tennis and rounded off the day with a Windsor lamb and a Sussex rosé at a state banquet where guests included Tom Hanks. Today is the real political business of the visit. He and Hillary Clinton will hold talks with David Cameron, Nick Clegg, George Osborne and others where the focus is likely to be on joint US-UK security issues, then later this afternoon give a speech to both houses of parliament. His wife, Michelle, is hosting a barbecue with Samantha Cameron for military families before she goes to Oxford University to host an open day for pupils from Elizabeth Garrett Anderson School in north London. It’s the same school she visited in 2009, telling pupils “I thought being smart was cooler than anything in the world” (also: “I do hugs”). Below is an approximate schedule. • Talks at 10 Downing Street • 12.30pm: Downing Street press conference • Barbecue at No 10 hosted by Michelle Obama and Samantha Cameron • 2.15pm: Michelle Obama at Oxford University • 4.30pm: Obama gives speech to parliament • Dinner at Winfield House Barack Obama Simon Jeffery guardian.co.uk
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British Airways and Ryanair attack airspace closures, claiming their planes have gone through no-fly zones without incident The head of British Airways and Iberia has joined the clamour over the handling of the volcanic ash cloud this morning after claiming that a BA test flight “found nothing” after flying through a smoke plume deemed by regulators to be too dangerous for normal commercial flights. Echoing criticism from Ryanair, Willie Walsh said the plane flew through an ash “red zone” for 45 minutes over Scotland and northern England and encountered no difficulties. The chief executive of International Airlines Group, the parent of Britain and Spain’s national carrier, spoke as the cloud from the Grímsvötn volcano moved away from UK airspace and began to affect travel in Germany. Walsh told BBC4′s Today programme that the flight operated at different altitudes, through a zone designated by the Met Office to contain high densities of ash – a level at which no commercial carrier has received safety clearance to operate. “Initially it flew over the north of England, Newcastle, Glasgow, Edinburgh, back to Newcastle. The aircraft then returned and has been examined. All the filters were removed and will be sent to a laboratory for testing. The simple answer is that we found nothing.” Travel plans for thousands of people are getting back on track as the ash cloud moves out of British airspace. Some airline passengers face continuing disruption as flights have been cancelled to destinations in Germany. About 500 flights were halted – and others delayed – across Europe on Tuesday as the eruption of the Grímsvötn volcano in Iceland caused havoc at airports in Scotland and northern England. The transport secretary, Philip Hammond, has held out hopes that the late May bank holiday getaway will not fall victim to similar travel chaos, although the Met Office has warned possible changes in wind direction could bring the ash back by the end of the week. A Met Office spokesman said concentrations of ash would reduce significantly over the next 24 hours. But much of the UK could be affected by the ash cloud on Friday if the volcano continued to erupt at current levels. “There’s a risk of seeing high concentrations of volcanic ash above 35,000ft on Friday.” Passengers are being warned to continue to check with airlines as carriers return to near-normal services. British Airways cancelled one London-Hamburg and two Hamburg-London flights, and easyJet cancelled some German flights. EasyJet said Hamburg airport would be closed until 2pm UK time and Berlin’s Schonefeld and Tegel airports were expected to be shut. EasyJet said more of its flights could be cancelled later. Ryanair cancelled all its flights in and out of the German airports of Bremen, Lubeck and Magdeburg until 1pm UK time. There were other delays caused by the knock-on effects of Tuesday’s disruption. Despite the better volcanic and weather forecast, the Barcelona football team who play Manchester United at Wembley in the Champions League final on Saturday brought forward their journey to London from Thursday to Tuesday. After chairing a meeting of Cobra, the government’s emergency planning committee, Hammond said the ash plume was getting smaller and less intense. He was “cautiously optimistic” that south-west winds would clear the remainder from British airspace over the next couple of days. “In the short term it is reasonably positive news,” he said. Hammond and O’Leary, head of Ryanair, have clashed over the airline’s claim that one of its planes flew safely through airspace condemned as dangerous by the Civil Aviation Authority. The minister said the aircraft had only gone through a zone already redesignated safe. The British Airways test flight was to help determine procedures to continue flying in accordance with recommendations developed by ICAO, the global aviation governing body, over the last 12 months. Hammond said the blanket flight bans imposed by UK authorities last time there was a volcanic eruption were a thing of the past. The new system in the UK allows individual carriers to apply for permission to fly in different environments depending on their capabilities. This meant proportionally fewer flights had been cancelled and airports closed this time around. “We’re red-lining a much smaller proportion of total ash cloud this year compared to last,” Hammond said. Other countries within the EU have different arrangements for managing flights and airspace during such crises. Iceland volcano 2011 (Grimsvotn) Air transport Natural disasters and extreme weather Iceland Transport policy Transport Dan Milmo James Meikle guardian.co.uk
Continue reading …Jane Corwin sees early lead dissolve after coming out in favour of Republican plan to cut millions from Medicare Democrats have won a heavily Republican upstate New York congressional seat, in a special election that was regarded as a potential bellwether for US national elections next year. Erie County clerk Kathy Hochul edged past Republican state assemblywoman Jane Corwin to win the seat in the 26th congressional district in north-west New York state. The rural-suburban district between Buffalo and Rochester is one of the state’s most conservative. But Corwin saw her early lead dissolve after coming out in favour of a Republican budget plan that would cut billions from Medicare, the popular government healthcare plan for senior citizens. The Democratic victory in the strongly Republican district came just six months after the Republicans rode discontent over the soaring deficit and fragile economic recovery to a sweeping victory in November’s congressional elections. The Republicans picked up 63 seats to regain control of the House of Representatives and trimmed the Democrats’ majority in the Senate. Hochul’s victory gives the Democrats hope that they can use voters’ anxiety over Republican proposals to overhaul Medicare to their advantage in November 2012, when all seats in the House and a third of seats in the Senate are on the ballot. President Barack Obama will also be seeking re-election. At the same time, Republicans find themselves on the political defensive on the Medicare issue, exhibiting significant internal strains for the first time since last autumn’s electoral gains. With 89% of precincts reporting, Hochul had 48% of the vote, compared with 42% for Corwin. A third candidate, Jack Davis, with 9%, also siphoned votes away from Corwin by running as a supporter of the ultra-conservative Tea Party movement. Scores of Hochul supporters, roaring with delight and chanting “Kathy, Kathy, Kathy,” jammed into a UAW union hall in Buffalo suburb Amherst for Hochul’s victory speech. The crowd chanted “Medicare, Medicare.” The seat became vacant in February when Republican Chris Lee, who won in 2010 with 74% of the vote, resigned after shirtless photos he sent to a woman surfaced online. The 26th congressional district was one of only four districts in the state out of 29 that favoured Republican John McCain over Barack Obama in 2008. But Corwin, a multimillionaire state assemblywoman, watched her lead evaporate after expressing support for a plan crafted by House budget committee chairman Paul Ryan to strip billions from Medicare. Corwin said she supported the Ryan plan as a way to ensure Medicare for future generations. Under Ryan’s proposal, Medicare would remain unchanged for those 55 or older, including the millions who receive healthcare under the programme. Anyone younger would be required to obtain coverage from a private insurer when they turn 65, with the government providing a voucher to subsidise part of the cost of premiums. Hochul quickly seized on Corwin’s position and cast herself as the protector of Medicare in a district with a large population of voters over 55. Hochul’s ads said that she wants to reduce government spending, but blasted Corwin for favouring Medicare cuts “to pay for more tax cuts for multimillionaires”. Corwin tried to shift her position, suggesting she would favour changing the Ryan plan if elected. The race had long been expected to be an easy victory for Republicans, but once the race turned unexpectedly competitive both national parties and several independent groups poured in more than $2m (£1.23m) to sway voters. Lee, who had just started his second term, abruptly resigned after a gossip website published a shirtless mobile phone picture he had sent to a woman he had been flirting with on Craigslist, the classified ads website. Tuesday’s vote will not have an immediate effect on the balance of power in Washington. Republicans still hold a commanding majority in the House. A recent Associated Press-GFK poll found that most Americans do not believe Medicare has to be cut to balance the federal budget. Democrats Republicans New York US elections 2012 US Congress United States US politics guardian.co.uk
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Five police officers killed and at least 30 wounded in latest violence to hit Pakistan since killing of Osama bin Laden A suicide car bomber has struck a police building in Pakistan’s main north-west city, killing five police officers and wounding at least 30 others in the latest violence to hit the country since the US raid that killed Osama bin Laden. Although no group immediately claimed responsibility for the early morning strike on Wednesday in Peshawar, the attack added to growing fears of a long, bloody summer as Pakistani Taliban and other al-Qaida-affiliated groups carry out threats to avenge the al-Qaida chief’s death. Already this month, the Pakistani Taliban have claimed they carried out three revenge attacks, including a deadly 18-hour siege of a naval base. The bomber’s target appeared to be a building belonging to the police’s criminal investigation department, but the station was located in an army cantonment and military facilities are also nearby, said Liaquat Ali Khan, a senior police official in Peshawar. Investigators with the police counter-terrorism unit were stationed at the centre, said Fayaz Khan Toru, the leading police official in north-west Khyber-Pakhtunkhwa province. Police officer Mohammad Zahid was in the basement of the building when the bomb went off. “I felt like the sky fell on me,” Zahid said from the hospital where he was being treated for multiple injuries. “The explosion jammed the door of my room in the basement, but there was a small hole in the wall so I crawled through that. When I got outside, there was lots of dust and smoke.” Military forces quickly sealed off much of the area as machines were brought in to sift through the facility’s wreckage. “Our determination is much higher than before, and we will fight till the defeat of these terrorists,” said Bashir Bilour, a senior official with the provincial government. Since the death of Osama bin Laden, US-Pakistan relations have sunk to new lows. The Pakistani Taliban are exploiting the tense relations by promising to attack both Pakistani and western targets to avenge Bin Laden’s death. The militant group has long despised the Pakistani government and army for their alliance with the US, a sentiment shared by many ordinary Pakistanis. Since the Bin Laden raid, the group has taken responsibility for a twin suicide bombing at a paramilitary police training facility that killed around 90 people and a car bomb that slightly wounded two Americans in north-west Pakistan. Pakistan Taliban Osama bin Laden Global terrorism guardian.co.uk
Continue reading …The mutual animosity between House Republicans and White House adviser Elizabeth Warren was on full display today during a testy congressional hearing on the new consumer protection bureau she is working to get running. Rep. Patrick McHenry accused Warren of overstepping authority and misleading Congress about it (she said he…
Continue reading …The storms continue: Oklahoma tornadoes killed at least two people this afternoon near El Reno, reports the Oklahoman . A second tornado was threatening Oklahoma City, notes CNN . The first storm blew cars off I-40, injuring motorists, and triggered a gas leak at an energy plant. At least two other tornadoes…
Continue reading …The house always wins, right? Not for blackjack aficionado Don Johnson, who’s won $15.1 million over six months at Atlantic City casinos. The Pennsylvania man took home $4.23 million from Caesars, some $5 million from Borgata, and $5.8 million from Tropicana—and he scored that last bundle…
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