Saudi SABIC hits two-week low as investors react to weak earnings

Released on - Tuesday,20 July , 2010 -16:18 36

Dubai – Saudi Basic Industries Corp (SABIC) tumbled to a two-week low as investors belatedly reacted to the petrochemical producer's disappointing earnings, while a fresh downturn on global markets also hurt local sentiment.

SABIC fell 3.4 percent to its lowest finish since July 7. Late Sunday, the firm reported a quarterly profit below consensus forecasts and a slowing global economic recovery is seen as likely weighing on demand for its products, analysts said.

"Investors gave a delayed reaction to SABIC's results - we expected it to fall yesterday and when it ended flat we almost gave up trying to predict the market," said a Riyadh-based analyst who asked not be identified.

"SABIC's numbers weren't a disaster, but it's all about what to expect in the third and fourth quarters and I think with European markets falling today, people woke up to that."

Rabigh Refining and Petrochemical Co fell 2.4 percent and Yanbu National Petrochemical Co's (Yansab) lost 2.7 percent.

Saudi Arabia's index fell 1 percent to 6,069 points.

Worries about the US economic recovery and bank exposure to risky debt combined with disappointing earnings on Tuesday to snuff out a world short stock rally and reverse gains in the euro.

Aabar Investments extended gains after the firm confirms it will pay minority investors an improved price to buy back shares, boosting Abu Dhabi's index, although Aldar Properties slumped to a 16-month low.

Aabar climbed 9.9 percent to AED1.89, nearing the AED1.95 price it says it will pay minority investors, markedly below its book value. Abu Dhabi stocks can move a maximum 10 percent up or down.

Aldar fell 3.4 percent to its lowest close since March 23, 2009, with market talk its latest drop was sparked by a bank closing portfolio holders' margin positions, while the outlook for the developer is uncertain.

"We don't forecast Aldar handing over much property in Q2 and the costs and interest expenses of carrying so much debt is dropping the bottom line into negative territory," said Chet Riley, Nomura property analyst.

"Aldar has increased the leverage on its balance sheet in recent quarters, not deleveraged."

Nomura expects Aldar will make a loss of AED130m in the second quarter.

Abu Dhabi's index rose 0.4 percent to 2,543 points, its third straight gain.

Property-related stocks slid, dragging Dubai's benchmark 0.6 percent lower to 1,510 points, its second decline in three days.

Emaar Properties fell 0.9 percent, builder Arabtec dropped 1.1 percent and Deyaar lost 1.3 percent.

"UAE property stocks have been sold off and are starting to look attractive, but the problem is that there's no earnings predictability - it's a black box because project handovers are usually delayed, we don't know the default rate or the selling or construction prices," added Riley.

Some banks made minor gains to help Qatar's index end higher for a second day, although trade is slight with most investors expected to stay away until after Ramadan.

Qatar Islamic Bank climbed 0.6 percent, trimming its losses to 3.6 percent since it reported a declining second-quarter profit, while Commercial Bank of Qatar added 0.9 percent.

"Volumes are really low and banks results were mixed - nothing too inspiring, but nothing too disastrous either," said a Qatar analyst who spoke on condition of anonymity.

He said bank and financial sector earnings per share fell 9 percent year-on-year in the second-quarter, but rose 11 percent quarter-on-quarter, adding he places more importance on the latter figure.

"Most banks had provisions in Q2, which would explain the year-on-year EPS fall. Quarter-on-quarter there was a pick up in loans, mostly driven by Islamic or government-relating borrowing," he said.

Banks' performance for the rest of 2010 will largely depend on provisions. These should fall but the outlook remains uncertain, the analyst said, pushing investors to stay out of bank stocks for the time being.

The index rose 0.2 percent to 6,935 points.

Kuwait's Global Investment House rose 9.8 percent to a four-week high after saying it had won a Dubai court case against a UAE bank.

Kuwait volumes are concentrated on small cap stocks, indicating the presence of day traders who tend to speculate in these names in the hope of turning a quick profit.

Most bluechips rose. National Bank of Kuwait and Kuwait Finance House gained 1.7 and 2 percent respectively.

Kuwait's benchmark slipped 0.1 percent to 6,494 points.

Agility was the main drag, falling 6.2 percent, with the stock remaining volatile as investors await a conclusion to its US fraud case. Agility is up 38 percent since July 4's six-year low.

Oman's index slipped 0.05 percent to 6,223 points.

Bahrain's benchmark ends 0.23 percent higher at 1,404 points.

Source: Arabian Business

Coach not letting All Blacks get 'carried away' ..... Read it

Released on - Sunday,18 July , 2010 -09:05

With the World Cup just a year away, All Blacks coach Graham Henry is not letting his side get carried away after their latest walloping of South Africa.

Despite the All Blacks blowing away the reigning world champions 31-17 in Saturday's second Tri-Nations Test, following their 32-12 domination the previous week, Henry only gave qualified praise.

"We're just a step ahead at this point in time," Henry said.

"But if we don't do the right preparation for the team and don't prepare correctly as individuals that could change very quickly."

Both matches were four-try bonus point efforts and put the All Blacks firmly on course to regain the Tri-Nations crown they relinquished to South Africa last year.

But they also highlighted similarities with 2002 and 2006 when the All Blacks again twice hammered the Springboks -- only to later crash out of the World Cup, drawing fierce criticism they had peaked too soon.

The second Test did not earn a straight 'A' from the former schoolmaster after Henry spent the week drumming into the players they were not to drop away from the standards set in the first match.

"We weren't as clinical as we were last week at the set piece and defensively, so we've got a bit of work to do before we play Australia in Melbourne in a couple of weeks' time," he said.

Henry felt the result was still in doubt until a solid defensive effort with 20 minutes to play with the All Blacks leading 23-10.

"About the 60th minute I think the game could have gone either way. We were under pressure on our line and we defended superbly for about three or four minutes... so I think it was probably a turning point," he said.

In contrasting conditions for both matches -- pristine in Auckland and wet and windy in Wellington for the second Test -- the All Blacks played the same brand of rugby.

They were ready to run the ball at all times after their forwards dominated the much-vaunted Springbok forward-power fortress.

However, like Henry, forwards coach Steve Hansen also tempered his praise.

"I don't think we put as much pressure on their lineout as we did the week before and there'll be some learnings there," Hansen said.

The South Africans were in no doubt that they were second best.

"On the whole, in these two Test matches we've been thoroughly outplayed, so it's back to the drawing board for us and credit to the All Blacks," acknowledged flanker Schalk Burger.

"The emphasis was on getting off to a good start and unfortunately we didn't and ended up chasing the game for 70 minutes, which was hard work."

The Springboks play Australia in Brisbane next week, desperate to get some points if they are to stay alive in the competition and keen to rectify disciplinary problems.

In the second Test Danie Rossouw was yellow-carded for kicking Richie McCaw while wing Jean de Villiers earned a two-week suspension for a dangerous tackle on Rene Ranger.

The previous week lock Bakkies Botha was both yellow-carded and incurred a nine-week ban for separate incidents.

Springboks captain John Smit said the yellow cards put his side on the backfoot early in both Tests, but he still saw improvement in the second game.

"The result's still the same, we lost the game, but there were far more positives to pull out," he said.

"The guys at least put up a fight, got stuck in. In the Tri-Nations you really have to be on the top of your game if you want to win away from home."

Iraq suicide bombing kills nine, wounds 40

Released on - Sunday,18 July , 2010 -10:13

A suicide bomber killed nine people and wounded 40 on Sunday in an attack targeting anti-Qaeda militiamen in a former insurgent hotspot west of Baghdad, the defence and interior ministries said.

"A suicide attacker blew himself up at 8:30 am (0530 GMT) at an office of the Sahwa," an interior ministry official said, referring to the Sunni Arab militia that with US backing took up arms against Al-Qaeda in late 2006.

"A soldier was among those killed and there were 40 people, including two soldiers, wounded," he added.

A defence ministry official confirmed the death toll in Sunday's attack in Al-Balassim neighbourhood, part of Radwaniyah, a largely Sunni district, 25 kilometres (16 miles) from the Iraqi capital.

The US military began recruiting for the Sahwa (Awakening) militia, also known as the Sons of Iraq, among Sunni Arab tribesmen and former insurgents almost four years ago, turning the tide in the war against Al-Qaeda in Iraq.

Control of the Sahwa passed to Iraq in October 2008, and their wages -- said to have been cut from 300 dollars under US leadership to 100 dollars -- have been paid, often late, by the Shiite-led government.

Baghdad has promised to incorporate 20 percent of the Sahwa into the police and military and find civil service jobs for many of the rest, but the process has been slow and is fraught with risks.

In the past six months many Sahwa fighters and members of their families have been killed in revenge attacks.

Israel, Palestinian leaders in separate visits to Cairo

Released on - Sunday,18 July , 2010 -09:57

The Israeli and Palestinian leaders were due in Cairo on Sunday for separate meetings with the Egyptian president, to be joined by the US Middle East peace envoy in his persisting quest to get the two men to relaunch direct talks.

No direct encounter between Israeli Prime Minister Benjamin Netanyahu and Palestinian president Mahmud Abbas was foreseen, Egyptian President Hosni Mubarak's office stressed, despite months of efforts by US envoy George Mitchell to end an 18-month hiatus in face-to-face negotiations.

Mitchell met Netanyahu in Jerusalem on Sunday morning ahead of their departure for Cairo, the Israeli leader's spokesman Mark Regev said, without elaborating on the content of the talks.

After a meeting between the US envoy and Abbas in the West Bank town of Ramallah on Saturday, the Palestinian leadership renewed its conditions for a resumption of direct negotiations, broken off after Israel launched a devastating offensive against the Gaza Strip in December 2008.

Senior Palestinian official Yasser Abed Rabbo called for greater clarity from Washington about its position on new negotiations, insisting that the Palestinians were not ready to join talks for talks' sake, but wanted to address the core issues of the Middle East conflict.

"Until now there is no clarity in the (US) position on a number of issues, especially those related to moving into final status talks," Abed Rabbo told reporters.

"The three-hour meeting between Abbas and Mitchell was important but there are several issues, most important among them the settlements and the situation in Jerusalem, that need more clarity," Abed Rabbo said.

The Palestinians have long demanded a complete freeze on Israeli settlement expansion ahead of face-to-face talks and accused Israel of undermining the process by approving new settler homes in annexed Arab east Jerusalem, which the Palestinians view as their capital.

As with previous visits, Mitchell himself declined to discuss the details of the talks, saying only that it was a "very productive" meeting and that US President Barack Obama remained committed to a two-state peace deal.

Earlier this month, during a visit to Washington by Netanyahu, Obama said he hoped to see direct talks begin before a partial Israeli moratorium on the expansion of Jewish settlements in the occupied West Bank ends in September.

The Palestinians reluctantly agreed to join US-brokered indirect peace talks in May and Mitchell has since shuttled repeatedly between Washington, Jerusalem and Ramallah.

In recent weeks, Abbas had appeared to back away from his previous demand for a full settlement freeze as a condition for opening direct talks, instead insisting on "progress" on the issue of borders and security.

In an interview published on Saturday, he said he would meet Netanyahu if Israel agreed in principle to a Palestinian state based on the borders before Israel's occupation of the West Bank during the 1967 Middle East war, with equal land swaps and the presence of an international security force.

"Israel must accept that the Palestinian territory in question be that of the 1967 borders and with the presence of a third party," he told Jordan's Al-Ghad newspaper, referring to Gaza and the West Bank, including east Jerusalem.

"This will push us to embark on direct negotiations," Abbas said.

The Palestinians say Netanyahu has yet to respond to the proposal, and the prime minister has previously said Israeli forces must remain in the strategic Jordan Valley after any peace deal to prevent weapons smuggling.

In an indication of the domestic pressure Abbas faces, his own party on Thursday told him not to join direct talks with Netanyahu's right-wing government without showing progress in the US-brokered proximity negotiations.

ASEAN concerned by S.Korea ship sinking, Gaza

Released on - Sunday,18 July , 2010 -09:57

Foreign ministers of the Association of Southeast Asian Nations (ASEAN) shared "deep concern" at the sinking of a South Korean warship, says a draft document which also calls for unimpeded aid access to Gaza.

"We expressed deep concern over the sinking of (the) ship Cheonan and the rising tension on the Korean peninsula," says the draft, which fails to apportion blame.

AFP obtained the document ahead of the 10 foreign ministers' annual talks, which begin in Vietnam on Monday.

The discussions culminate on Friday in the ASEAN Regional Forum (ARF), Asia-Pacific's largest security dialogue, which will be attended by United States Secretary of State Hillary Clinton.

Tensions over the sinking are expected to overshadow the ARF talks, diplomats and observers said.

Foreign ministers of North and South Korea as well as from Japan, Russia, China and Europe are among those expected at the meeting of the 27-member ARF.

South Korea has said it wants ARF to condemn North Korea for the torpedo attack which broke the corvette in two in March with the loss of 46 lives. Pyongyang vehemently denies involvement despite the findings of a multinational investigation, and said it was ready to retaliate if punished.

"We urged all parties concerned to exercise utmost restraint," the ministers' draft says.

It reaffirms support for a nuclear-free Korean peninsula and encourages a return to six-party talks as soon as possible, "bearing in mind that peace and security on the Korean peninsula would greatly impact the region".

After a United Nations statement on the ship sinking, nuclear-armed North Korea said it was willing in principle to return to the multilateral disarmament talks which it abandoned last year.

The talks involved China, Japan, the two Koreas, Russia and the US.

Kurt Campbell, US Assistant Secretary of State for East Asia, said Pyongyang would have to demonstrate a commitment to change its "provocative ways" before dialogue would start.

On July 9 the UN Security Council condemned the Cheonan attack but did not apportion blame -- a result hailed by the North as a "great diplomatic victory".

Analysts and diplomats said the ARF is also unlikely to blame Pyongyang.

In their draft document, the ASEAN foreign ministers also call for unimpeded aid access to Gaza and a resumption of Middle East peace talks.

ASEAN includes the world's largest Muslim nation, Indonesia, as well as Muslim-majority Malaysia and Brunei.

The ministers "strongly condemned" a deadly May 31 Israeli military raid on an aid flotilla bound for the Gaza Strip.

"In this regard, we reiterated the call for the unimpeded access of humanitarian assistance to the Palestinian people in Gaza in order to help alleviate their plight," says the draft.

It calls for a resumption of negotiations for "a final, just and comprehensive settlement with the realisation of two states, Israel and Palestine".

The draft also reiterates ASEAN's position on elections planned this year in the bloc's military-ruled member Myanmar.

Ministers want the ballot conducted "in a free, fair and inclusive manner with the participation of all political parties," the draft says.

The opposition group led by detained Nobel laureate Aung San Suu Kyi is boycotting the vote, which the US expects will not be held freely.

In their draft, ministers stress the importance of peace and stability in the South China Sea, where China and ASEAN nations have overlapping sovereignty claims.

Canada and Turkey are to accede to a non-aggression pact with ASEAN and other nations, the draft communique says.

Iraq suicide bombing kills nine, wounds 29

Released on - Sunday,18 July , 2010 -09:49

A suicide bomber killed at least nine people and wounded 29 on Sunday in an attack targeting anti-Qaeda militiamen in the Al-Balassim area, west of Baghdad, the defence and interior ministries said.

"A suicide attacker blew himself up at 8:30 am (0530 GMT) at an office of the Sahwa," an interior ministry official said, referring to the Sunni Arab militia that with US backing took up arms against Al-Qaeda in late 2006.

A defence ministry official confirmed the casualty toll in Sunday's attack.

EU diplomat to press for open borders on Gaza visit

Released on - Sunday,18 July , 2010 -05:03

The European Union's top diplomat Catherine Ashton visits Gaza on Sunday to press for the further lifting of Israel's blockade on the Hamas-ruled territory.

On her second visit to Gaza in four months, Ashton was due to assess the partial lifting of the four-year closures in the wake of a deadly May 31 raid on a Gaza aid fleet.

"We've made it clear that we want to see the potential for the people of Gaza to live an ordinary life," Ashton told reporters in the West Bank town of Ramallah on the eve of her visit.

"There needs to be an opening of the crossings for both people and goods to flow in both directions."

She said the European Union was willing to send monitors to help operate the crossings, but they would have to have a clear role and work with the Western-backed Palestinian Authority, which Hamas drove out of Gaza in 2007.

"At the moment that is not something that is on the table," she said.

Israel said it would begin allowing everything into Gaza except for weapons and dual-use goods during the international uproar that followed the bloody seizure of the flotilla and the killing of nine Turkish activists.

It said it would allow building materials into the territory but only for internationally-supervised projects and that its naval blockade would remain in place to keep the Islamist Hamas from importing military-grade rockets and other weapons.

The European Union welcomed the changes but has pressed Israel to allow for freer travel and the export of goods manufactured in Gaza, where the near-collapse of the private sector has spawned 40 percent unemployment.

"What we have today is 75 percent less (volume of traffic) than what we had in the first half of 2007... That's not what we are looking for," Palestinian prime minister Salam Fayyad said on Saturday.

"The economy of Gaza cannot be sustained only by importation. There needs to be exports," Fayyad told a joint press conference with Ashton.

Ashton was to press those concerns during her three-day Middle East trip, which includes meetings with Israeli Prime Minister Benjamin Netanyahu, visiting US envoy George Mitchell and other officials.

She had no plans to meet with anyone from Hamas, which is blacklisted as a terrorist group by the West because of its refusal to recognise Israel and its commitment to armed struggle.

In Gaza, Ashton will visit a summer camp and a school run by the United Nations Relief and Works Agency for Palestine Refugees (UNRWA).

She will also visit local businesses co-financed by the EU through its private sector reconstruction programme in Gaza.

The British baroness was named last year as the EU's high representative for foreign affairs, a new position that was created to give the 27-nation bloc a single voice on the world stage.

The visit came as Mitchell held the sixth round of indirect peace talks between Israel and the West Bank Palestinian leadership in a bid to relaunch direct talks suspended after the Gaza war erupted in December 2008.

Palestinian president Mahmud Abbas has thus far rejected US and Israeli demands for direct talks, insisting that the two sides first make progress on the thorny issues of final borders and security.

Israel first imposed the closures on Gaza in June 2006 after Hamas and other militants captured Israeli soldier Gilad Shalit in a deadly cross-border raid. The 23-year-old is still being held at a secret location.

The sanctions were tightened a year later when Hamas seized power after driving Abbas's forces out in a week of fierce street clashes.

Top EU diplomat calls for further lifting of Gaza siege

Released on - Saturday,17 July , 2010 -22:03

The European Union's top diplomat on Saturday called for the further easing of Israel's blockade of the Gaza Strip on the eve of a visit to the Hamas-ruled territory.
"We've made it clear that we want to see the potential for the people of Gaza to live an ordinary life," EU foreign policy chief Catherine Ashton told reporters in the West Bank town of Ramallah.
"There needs to be an opening of the crossings for both people and goods to flow in both directions," she said at a joint news conference with Palestinian prime minister Salam Fayyad, ahead of her Gaza visit.
Israel has taken steps to ease its four-year blockade of the territory in the wake of a deadly May 31 raid on a Gaza-bound aid fleet and now says it allows the import of everything except weapons and dual-use items.
It has also begun allowing the import of building materials such as wood and cement for projects under international supervision.
But the limited opening has drawn criticism from the Palestinians and rights groups because it does not include an easing of the movement of people or allow for exports.
"What we all are looking for is to end the suffering of our people in Gaza by lifting the siege and... by having a policy of openness that is clearly defined," Fayyad told reporters.
"What we have today is 75 percent less (volume of traffic) that what we had in the first half of 2007... That's not what we are looking for," he said.
"The economy of Gaza cannot be sustained only by importation, there needs to be exports."
Israel has said its naval blockade is necessary to prevent the Islamist Hamas movement ruling Gaza -- which is pledged to its destruction -- from shipping in military-grade weapons and longe-range rockets.
Ashton said she was open to sending European Union monitors to the crossings but that they would have to work alongside the Western-backed Palestinian Authority, which Hamas ousted in June 2007.
"We are willing to engage in work at the crossings if there is a clear role for the European Union to play, and of course working with the Palestinian Authority," she said.
"At the moment that is not something that is on the table."
Ashton was to head to Gaza for a few hours on Sunday before returning to Israel to meet with Prime Minister Benjamin Netanyahu and other top officials.

Yemen ruling party, opposition agree points for dialogue

Released on - Saturday,17 July , 2010 -21:06

Yemen's ruling General People's Congress and opposition parties on Saturday signed the minutes of an agreement to push for national dialogue in a move hailed by President Ali Abdullah Saleh.

"This is a positive step towards political detente... and to start a new phase," Saleh told reporters after the signing, and renewed a call he made in May to the opposition to form a national unity government.

The memorandum was signed with the opposition Common Forum which groups Al-Islah (Reform) Party, the main Islamist opposition, and the Yemeni Socialist Party, as well as other smaller factions. There were no other details.

"We are all in the same boat and we must sail together," Saleh said.

"There must be one leadership for this ship from all political parties and I said in my speech in May that we welcome a partnership with all the political parties in Yemen," Saleh said.

In May Saleh invited all political groups inside and outside the country to a "responsible national dialogue, within the framework of the constitutional institutions."

"According to this dialogue, it is possible to form a government of all the influential political parties represented in the parliament," he had said on the eve of the 20th anniversary or Yemen's unification.

Saleh said in May that the Yemeni Socialist Party which is agitating to re-establish south Yemen as an independent state, would be a principal partner in the political dialogue.

Other major opposition parties in parliament include the Islamist Al-Islah party, popular among tribesmen who form the backbone of Yemen's traditional society.

On Saturday the president also insisted that parliamentary elections should take place on time in April 2011, in line with an agreement struck in February 2009 between the opposition and Saleh's party.

The election was due to take place in April 2009 but lawmakers agreed to delay it by two years in order to restructure Yemen's political system, including an amendment of the constitution.

Iran briefly detains Swiss ambassador: reports

Released on - Saturday,17 July , 2010 -20:33

Iranian authorities briefly detained the Swiss ambassador to Tehran, Livia Leu Agosti, while she was on a trip three days ago to North Khorasan province, state media reports said on Saturday.

Agosti was detained on Wednesday by provincial security forces "because her identity was not established at the time," said the website of Press TV, the Iranian channel in English, citing "informed sources."

She was freed a few hours later, the report said.

Agosti's trip to a village in North Khorasan was planned in "coordination and full permission of the foreign ministry," state television said on its website, quoting an informed source.

"But the local security forces temporarily arrested on July 14 the Swiss ambassador because her identity was not established. However after coordination with relevant authorities she was immediately released," the website said.

In Switzerland, a foreign ministry spokesman told AFP that his office "does not have any information" about the possible detention of Agosti.

The Swiss embassy in Tehran has represented the interests of the United States in Iran since the two archfoes broke off ties in the aftermath of the 1979 Islamic revolution.

Social reforms needed for Syria growth: economists

Released on - Saturday,17 July , 2010 -19:18

Syria, which has launched significant economic reforms, must now follow up with social changes that will tackle corruption and relieve poverty, economists say.

Their comments come as Syrian President Bashar al-Assad marks 10 years in power on Saturday, gaining plaudits for opening up the economy and engaging in a process of rapprochement with the West, but criticism from rights groups who accuse him of not delivering on promises of greater freedoms for his people.

After decades of planned reforms to Syria's dirigiste economy, Assad's Baath party finally pledged its commitment to developing a market economy in 2005.

It began phasing out state subsidies on basic commodities, allowed private banks to operate, liberalised exchange controls and eased conditions under which businesses can operate.

But economists say further economic and social reforms are now needed in order to reduce unemployment -- currently riding at about 20 percent according to unofficial estimates -- and to relieve the plight of the poor.

An estimated 5.3 million of Syria's 22 million population are affected by poverty, according to a study by the United Nations. The budget deficit, meanwhile, reached 9.25 percent of GDP last year.

Economists warn that the gap between Syria's rich and poor has grown due to the economic reforms, the global financial crisis and a drought which has ravaged the northeast of the country for the past four years.

And with the phasing out of subsidies, the price of food and fuel has skyrocketed, hitting in particular the pockets of the less well-off.

The Arab Human Development Report, published by the United Nations Development Programme (UNDP) last year, named Syria and Yemen as the Arab countries which have experienced the biggest rise in income inequality over the past decade.

"Improving living standards is a priority," Syria's Prime Minister Mohammed Naji Otri was quoted as saying recently in the official media.

But he added that the government must find 25 billion Syrian pounds (500 million dollars) to be able to raise the salaries of its 1.4 million employees by 10 percent, in order to keep pace with inflation.

Paul Salem, director of the Carnegie Middle East Centre, warned that unless Damascus deals with the economic erosion, social unrest could follow.

"Syria is aware of the importance of the economy as a stabilising element," Salem told AFP.

"If the economic and social problems are not solved, they will in the long term become" a time bomb, he added.

The governor of the Central Bank of Syria, Adib Mayala told AFP that Syria "is making major efforts to advance the path of reform" but said it was necessary to "alter attitudes" of some people opposed to the changes, alluding to bureaucrats.

Economist Samir Seifane says that to modernise its infrastructure, and at the same time spur economic growth, Syria must invest heavily in the transport, agriculture, irrigation, energy, housing and water sectors.

He told AFP that some 12 billion dollars must be invested yearly to assure a growth rate of seven percent, which would help make inroads into the problems of poverty and unemployment.

Carnegie's Salem says Syria should follow the example of its neighbour Turkey.

"Thirty years ago (Turkey) now on its way to becoming a world economic power, resembled Syria of today," he says.

The authorities in Syria have "a clear economic vision but the changes are being made at a slow pace due to corruption, lack of transparency and freedom," he adds.

Settlement issue holding up talks: Palestinians

Released on - Saturday,17 July , 2010 -18:23

The Palestinian leadership said Saturday it wants "clarity" regarding the US position on Israeli settlements and Jerusalem before moving to direct peace talks.

"Until now there is no clarity in the (US) position on a number of issues, especially those related to moving into final status talks," senior Palestinian official Yasser Abed Rabbo told reporters in the West Bank.

He spoke after a three-hour meeting between visiting US Middle East envoy George Mitchell and Palestinian president Mahmud Abbas, part of a sixth round of indirect talks with Israel.

"The three-hour meeting between Abbas and Mitchell was important but there are several issues, most important among them the settlements and the situation in Jerusalem, that need more clarity," Abed Rabbo said.

The Palestinians have demanded a complete freeze of Israeli settlements ahead of any face-to-face peace talks and have accused Israel of undermining the process by approving new settler homes in mostly Arab east Jerusalem, which the Palestinians view as their capital.

Israel occupied the eastern half of the city in 1967 along with the West Bank and annexed it in a move not recognised by the international community, declaring the entire city its "eternal, undivided capital."

As with previous visits, Mitchell declined to discuss the details of the talks, saying only that it was a "very productive" meeting and that US President Barack Obama remained committed to a two-state peace deal.

Earlier this month, during a visit to Washington by Israeli Prime Minister Benjamin Netanyahu, Obama said he hoped to see direct talks begin before a partial moratorium on West Bank settlements ends in September.

But Abed Rabbo insisted "the timing is not as important as the foundation of the peace process."

The Palestinians reluctantly agreed to launch indirect peace talks in May after suspending the last round of direct negotiations during the 2008-2009 Gaza war.

Israel must accept outside forces: Abbas

Released on - Saturday,17 July , 2010 -17:58

Palestinian leader Mahmud Abbas said Israel must accept the deployment of an international force in a future Palestinian state before direct talks can begin, in an interview published on Saturday.

"Israel must accept that the Palestinian territory in question be that of the 1967 borders and with the presence of a third party," he told Jordan's Al-Ghad newspaper, referring to the 1967 Six-Day War.

"We will consider this as the desired progress and this will push us to embark on direct negotiations," Abbas said.

Al-Ghad said Abbas was referring to a security accord sealed under former Israeli premier Ehud Olmert calling for the presence of an international force to guard the Palestinian territories, excluding Israel.

"This is the accord and I believe that Jordan and Egypt were aware of it and gave their approval in principle," said Abbas.

In the West Bank town of Ramallah, Abbas held a three-hour meeting on Saturday with visiting US Middle East envoy George Mitchell, part of a sixth round of indirect talks with Israel.

The Palestinians have demanded a complete freeze of Israeli settlements ahead of any face-to-face peace talks and have accused Israel of undermining the process by approving new settler homes in mostly Arab east Jerusalem.

Iraqi cleric Sadr visits Syria from exile in Iran

Released on - Saturday,17 July , 2010 -17:49

Self-exiled Iraqi radical Shiite cleric Moqtada al-Sadr visited Damascus on Saturday from his base in Iran for talks with Syrian President Bashar al-Assad on Iraqi affairs.

During the meeting, Assad urged Iraqi leaders to quickly form a government and put an end to a four-month coalition stalemate, the official SANA news agency reported.

"Any delay to form a (national unity) government will have a negative impact on the situation in Iraq," Assad was quoted as telling his guest, stressing that a new cabinet should be set up "as soon as possible."

Iraqi politicians have failed to form a new government since former premier Iyad Allawi's narrow victory over incumbent Prime Minister Nuri al-Maliki in the March 7 parliamentary polls.

The bloc of anti-US cleric Sadr, who is rarely seen in public and who lives in self-imposed exile in Iran, gained 39 seats in the new 325-strong parliament, against 91 for Allawi and 89 for Maliki -- both Shiite Muslims.

Initially Sadr was opposed to the return of Maliki as prime minister but in May he said he removed his objection under certain conditions.

SANA quoted Sadr as praising Syria for its support of the Iraqi people and "for working in favour of security and stability in Iraq."

Hazem al-Araji, a Sadr bloc MP, told AFP in Baghdad that the cleric travelled to Damascus "at the official invitation of Syrian President Bashar al-Assad to discuss Iraqi affairs."

Sadr's visit to Syria -- his second since July last year -- comes after Iraqi legislators on Monday extended an inaugural parliamentary session by two weeks to give political leaders a chance to form a government.

Israeli troops attack photographers in West Bank

Released on - Saturday,17 July , 2010 -16:33

Two Palestinian news photographers were hospitalised on Saturday after being attacked by Israeli troops during a weekly protest in the occupied West Bank, one of them said.

An AFP photographer said a soldier hit him in the face and leg with a baton and that another photographer lost his hearing after a stun grenade exploded near his head.

The two were covering a weekly demonstration against Israel's controversial separation barrier attended by dozens of Palestinian, foreign and Israeli activists near the southern West Bank town of Beit Umar, outside of Hebron.

An Israeli military spokesman declined to comment directly on the two journalists being wounded, saying only that security forces had dispersed 40 "rioters" who had entered a closed military zone and thrown rocks at them.

"Anyone who chooses to be present in close proximity to conflict areas or violent incidents does so at his or her own risk," he added.

Weekly demonstrations have multiplied across the West Bank in recent years and frequently see Palestinian youths hurling stones at Israeli troops, who fire tear gas and rubber bullets to disperse the gatherings.

The Foreign Press Association on Saturday protested what it called a "recent policy change" by the military and border police.

"Over the past months journalists covering these events have been harassed, arrested and attacked by the various on site forces before these forces turn their attention to the activists or demonstrators," it said in a statement.

"Open, unhindered coverage of news events is a widely acknowledged part of the essence of democracy.

"Generally speaking this would not include smashing the face of a clearly marked photographer working for a known and accredited news organisation with a stick, or for that matter aiming a stun grenade at the head of a clearly marked news photographer or summarily arresting cameramen, photographers and/or journalists," it said.

The group represents most international media outlets operating in Israel and the Palestinian territories, including AFP.

Iran threatens to blacklist foreign oil firms

Released on - Saturday,17 July , 2010 -14:14

Oil Minister Massoud Mirkazemi warned on Saturday that Iran will blacklist foreign firms like Russian energy giant Lukoil that pull out of projects because of sanctions against Tehran.

"If one of the companies acts against Iran, we will be forced to consider the reality and put that company on a blacklist," the Mehr news agency quoted Mirkazemi as saying.

"They will no longer work in our country," he said.

Mirkazemi singled out the case of Lukoil, which announced it was pulling out in March as new UN, US and EU sanctions over Tehran's controversial nuclear programme loomed.

The minister said the Russian firm had reneged on its commitments in the Anaran oilfield which it discovered in western Iran in 2005.

But he added that Iran might consider continuing to work with Lukoil "if we can adjust the content of the agreement."

Iran is under four sets of UN sanctions over its refusal to heed repeated Security Council ultimatums to suspend uranium enrichment, the most controversial part of its nuclear programme.

Both the United States and the European Union have also imposed additional sanctions unilaterally.

Netanyahu holds key White House talks

Netanyahu holds key White House talks

Released on - Tuesday,06 July , 2010 -10:42 US

 President Barack Obama hosts Israeli Prime Minister Benjamin Netanyahu on Tuesday for a White House summit that could see a strong push for direct peace talks with the Palestinians.

A warm red-carpet welcome is expected, in stark contrast to Netanyahu's previous visit in March when he was given the cold shoulder by Obama because of a row over the expansion of Jewish settlements in east Jerusalem.

A diplomatic flurry in the run-up to this visit, including talks on Monday between Israeli Defence Minister Ehud Barak and Palestinian prime minister Salam Fayyad, suggested movement in the stagnant peace process.

The political calculus has also changed with Obama more jumpy about the important US-Israel axis in the run-up to mid-term elections and Netanyahu appearing keener for direct negotiations with the Palestinians.

"I believe that a main part of my conversations with President Obama in Washington next week will be focused on how to start direct peace talks between Israel and the Palestinians right away," Netanyahu said last week.

Obama and Vice President Joe Biden will hold a working lunch with the Israeli leader from 12:35 (1635 GMT), according to the White House.

While no major announcements are expected, US officials talked optimistically about the chances of progress after weeks of shuttle diplomacy by Obama's Middle East peace envoy George Mitchell.

"Certainly a major focus of the discussion will be around the progress that's been made so far in the proximity talks and the opportunity to make the transition into direct talks," said White House adviser Dan Shapiro.

"We feel that already in the little over a month that these talks have been going on, the gaps have narrowed. And we believe there are opportunities to further narrow those gaps to allow the sides to take that next step to the direct talks."

The Palestinians froze direct negotiations in December 2008 when Israel launched a deadly 22-day offensive against the Hamas-ruled Gaza Strip to halt rocket attacks.

Also on the agenda will be Iran's nuclear programme and Gaza, where Israel has eased a four-year blockade following pressure after its deadly raid on an aid flotilla that killed nine Turks, one of them with US nationality.

The May 31 raid badly damaged relations between Israel and Turkey, two key US allies. Turkish Foreign Minister Ahmet Davutoglu warned on the eve of the visit that ties with Israel would be cut unless an apology was forthcoming.

State Department spokesman Philip Crowley said he expected Netanyahu to give Obama "a report on the early stages of the Israeli investigation into the flotilla tragedy" and that the two would discuss "recent progress" on Gaza.

When Netanyahu and Obama last met in March, the Israeli leader was reportedly chastised by his host and denied privileges customarily granted to foreign dignitaries, even the ritual handshake photo.

It was an expression of Washington's ire at Israeli plans to build 1,600 Jewish homes in annexed east Jerusalem, announced during a trip to Israel by US Vice President Joe Biden in a move that Washington called "insulting."

This time, the temperature in the White House is likely to be warmer, with the usual niceties observed.

Obama's Democratic Party is expected to face a tough battle in November's mid-term elections and could lose its congressional majority, while Netanyahu is negotiating his own political minefield.

Obama wants Israel to extend a West Bank settlement freeze due to expire in September, but right wingers in Netanyahu's ruling coalition, notably Foreign Minister Avigdor Lieberman, fiercely oppose a further moratorium.

Israel will not apologise for boarding Turkish aid ship: PM

Israel will not apologise for boarding Turkish aid ship: PM

Released on - Friday,02 July , 2010 -20:41 Israeli Prime Minister Benjamin Netanyahu on Friday ruled out any apology from his country for a deadly commando raid on a Turkish Gaza-bound aid ship in May, that killed nine Turks.

"Israel cannot apologise because its soldiers had to defend themselves to avoid being lynched by a crowd," Netanyahu said in an interview broadcast on public television.

On May 31 Israeli commandos raided a Turkish ship leading an activist aid flotilla to the Gaza Strip, killing nine Turkish militants, in an operation that triggered international condemnation and strained ties with Ankara.

Turkey recalled its ambassador from Tel Aviv and cancelled three planned joint military exercises after the raid. It also twice denied permission to Israeli military aircraft to use its air space.

Netanyahu's remarks come two days after Trade Minister Benjamin Ben Eliezer and Turkish Foreign Minister Ahmet Davutoglu held secret talks in Brussels, to try and ease the feud sparked by the deadly raid.

The talks sparked tensions in Israel as it emerged that Netanyahu gave the go-ahead for the meeting without informing hardline Foreign Minister Avigdor Lieberman, who has said he is opposed to any apology for the raid.

Netanyahu met Lieberman on Friday to mend ties with the firebrand top diplomat.

At the meeting, Lieberman reiterated that he does not want Israel to apologise or pay the compensation Turkey is seeking, saying it would harm Israel's international standing, an official said.

White House insists Middle East talks making progress

White House insists Middle East talks making progress

Released on - Friday,02 July , 2010 -21:36 The White House insisted Friday that US-brokered indirect Middle East talks were making progress, despite Palestinian complaints that the Israelis were stalling.

Senior US officials said they hoped to be able to move to direct talks between the two sides soon, though could not give a timeline, as they briefed reporters ahead of Israeli Prime Minister Benjamin Netanyahu's visit next week.

Daniel Shapiro, President Barack Obama's senior director for the Middle East, said the talks "have made progress and the gaps have been narrowed."

Washington sees the proximity talks brokered by US Middle East envoy George Mitchell as an interim step towards full direct talks between the two sides.

"It is hard to put a precise timeline on when that step could be taken," Shapiro said. "But we are encouraged by the progress that has been made."

On Monday, Palestinian president Mahmud Abbas offered Israeli newspapers a negative summary of how the talks have been going.

"We haven't received from Netanyahu even a single sign that might indicate progress," Abbas was quoted as saying by the Maariv daily.

"He has completely ignored everything we've raised," the paper quoted him as saying in comments made to Israeli journalists from four newspapers who spent the evening at his West Bank headquarters in Ramallah.

The indirect talks, which began on May 9 and are scheduled to take four months, are focusing on core issues including borders and security.

Netanyahu wants direct talks to begin but the Palestinian leadership first wants progress on recognizing borders of Palestinian lands and a halt to demolitions of Palestinian homes in east Jerusalem.

Netanyahu's visit is an attempt by both Israelis and the United States to put to rest perceptions of a rift between the two allies, after a frosty summit between Obama and Netanyahu, amid a settlements row, in March.

Netanyahu had been due to see Obama last month, but had to cancel the visit due to the crisis over the Israeli raid on a flotilla heading for Gaza.

This time, the Israeli premier will get all the trappings traditionally associated with a visiting foreign leader, including Oval Office talks, a question and answer session and photo op with reporters and a White House lunch.

"There is absolutely no rift between the United States and Israel," said Ben Rhodes, deputy national security advisor for strategic communications.

"This is a relationship first of all that is very strong and very important to the United States... our administration in partnership with the Israeli government has taken a number of steps to strengthen and deepen our cooperation."

Rhodes said the talks would focus primarily on the push for direct Palestinian and Israeli talks, but would also range onto regional security challenges like Iran.

Obama would also bring up the new Israeli policy easing restrictions on the goods that are allowed to cross between Israel and Gaza, which was adopted following global outrage at the Israeli flotilla raid.

"The president welcomed those changes which we think already are, and as they are implemented, will make a significant difference in the lives of people on the ground in Gaza," Shapiro said.

"I think the president and the prime minister really look forward to reviewing that progress."

'Total CEO calls Iran oil embargo'an 'error

'Total CEO calls Iran oil embargo'an 'error

Released on - Friday,02 July , 2010 -23:09 The CEO of French energy giant Total on Friday criticised sanctions against Iran, saying an embargo on petrol products was an "error" that would harm ordinary people.

Speaking at an economic forum in Aix-en-Provence in southern France, Christophe de Margerie confirmed Total had suspended its deliveries to Iran in line with sanctions adopted by the UN, US and European Union in response to Tehran's refusal to halt its uranium enrichment programme.

"I maintain this is a mistake. The embargo affects the population, too many things are politicised these days," he told media.

"We do not think an embargo on the delivery of petrol products is a good way to settle differences of a political nature," he said.

De Margerie said Total would resume deliveries at the first opportunity, saying it was a "serious mistake to mix things that are civil and political".

On June 9, the UN Security Council adopted a resolution imposing sanctions on Tehran over its nuclear programme.

Additional US sanctions aimed at interrupting petrol imports were approved Thursday by President Barack Obama. The EU is set to finalise further measures at a meeting of foreign ministers July 26.

The US sanctions would prevent foreign companies from doing business with the US government if they had commercial ties to Iran.

Iran is the world's fourth largest crude oil producer but lacks refinery capacity and is heavily dependent on imports of petrol and refined products.