Iran Khodro says coping with Peugeot exit
Tehran Times | July 25, 2012
Iran’s main automobile company, Iran Khodro, says it is coping with a decision early this year by troubled French car maker Peugeot to halt exports of vehicle kits for assembly, according to reports on Wednesday.
“Iran Khodro has managed to become self-sufficient in producing 90 percent of the parts for the (popular Peugeot model) 206, and an effort is being made to use local suppliers for parts that were previously imported,” Hossein Najari, Deputy CEO for production was quoted as saying.
Peugeot’s parent company PSA Peugeot Citroen in February suspended its sales of car assembly kits to Iran, which had been its top export market in terms of trade volume up to then.
The decision appeared to be tied to Peugeot’s alliance with U.S. group General Motors, and U.S. sanctions pressure on Iran.
PSA Peugeot Citroen on Wednesday announced it will seek to cut 1.5 billion euros ($1.8 billion dollars) in costs over the next three years after declaring a 819-million-euro ($989-million) loss for the first half of 2012.
Its exports to Iran, where locally assembled versions of its 405 and 206 models are prevalent on the roads, represented up to 800 million euros in revenue per year before they were suspended, according to figures given in Tehran.
The maker of two-thirds of France’s cars is in a tailspin as a deepening recession in many markets in Europe takes its toll on its business — Europe is Peugeot’s main market. The company’s share price has more than halved since March.
The first-half loss contrasts starkly with a profit of €805 million in the same period last year and came on the back of a 5.1 percent fall in revenue to €29.6 billion.
The company doesn’t expect Europe to pick up anytime soon, saying Wednesday that it expects its European market to contract by 8 percent this year.
In response, Peugeot announced earlier this month that it would close a major factory in France and cut 8,000 jobs — part of a plan to save €2.5 billion by 2015. Those savings will also come from efficiencies gained by an alliance with General Motors. About half — €1 billion — of those savings will come this year alone.
“The group is facing a difficult time,” Chairman Philippe Varin said. “The depth and persistence of the crisis impacting our business in Europe requires the launch of the reorganization of our French production and a reduction in our structural costs.”
But the company’s cost-cutting plans have run afoul of President Francois Hollande’s Socialist administration, which has said the restructuring is unacceptable and that it will force Peugeot to save some of the jobs it wants to eliminate.
On Wednesday, the government will unveil a plan to support the auto industry — part of its carrot-and-stick strategy with Peugeot. It’s expected to give incentives to French consumers to buy French cars and to support the clean-energy vehicles that the company excels at.
But much of Peugeot’s problems stem from an over-supplied European car market, and it’s unclear how much the government can do for the company. France’s car industry was already given a bailout under former President Nicolas Sarkozy.
(Source: agencies)
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- Peugeot First-Half Profit Plunges on Europe Sales Decline – Bloomberg (bloomberg.com)
UN Committee against Torture releases list of issues for Israel
DCI | July 19, 2012
In June, the UN Committee Against Torture (the Committee) released a list of issues it would like the Government of Israel to address when the Committee reviews Israel’s compliance with the Convention Against Torture (CAT) in 2013. Specific issues raised by the Committee relevant to the continued prosecution of Palestinian children in military courts include:
- What steps has the Government of Israel taken to audio-visually record interrogations conducted by the Israeli Security Agency (ISA) as a further means to prevent torture and ill-treatment? DCI-Palestine further recommends that this inquiry should be broadened to include interrogations conducted by the Israeli police, being the body most likely to interrogate Palestinian children from the West Bank.
- What steps has the Government of Israel taken to ensure that all detainees are promptly brought before a judge and have prompt access to a lawyer? Under military law, Palestinian children are not required to be brought before a judge for 8 days, and can be denied access to a lawyer for up to 90 days. By way of contrast, Israeli children, including those living in the settlements, must be brought before a judge within 24 hours and can be denied access to a lawyer for 48 hours.
- Please indicate how many Palestinian prisoners from the Occupied Palestinian Territory are held in detention facilities inside Israel? Transferring and detaining Palestinian prisoners out of occupied territory violates article 76 of the Fourth Geneva Convention and attracts personal criminal liability under articles 146 and 147 of the same convention.
- Please indicate the measures taken to ensure that the detention or imprisonment of a child is used as a measure of last resort, that solitary confinement is never used as a means of coercion or punishment and that all children receive appropriate education.
- Please also explain the regime applied to children under military detention, in particular if their interrogations are recorded and if their parents or other legal representatives can have access to them. DCI-Palestine recommends that all interrogations of children must be audio-visually recorded and parents must be entitled to accompany their children at all times, as is the right generally afforded to Israeli children. Further, children must be entitled to consult with a lawyer of their choice prior to their interrogation.
The full list of issues released by the Committee is available here.
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Israel to Annex More of East Jerusalem
By Craig Harrington | IMEMC & Agencies | July 25, 2012
On Tuesday Israel announced plans to take full municipal control of a section of East Jerusalem that lies on the other side of its separation wall.
Israeli officials in Tel Aviv have been discussing taking full municipal control of the rest of East Jerusalem for several years. Their latest plan will bring portions of the city suburbs that lie east of the separation wall under Israeli jurisdiction, reports Ma’an News.
The decision to expand municipal services into this portion of East Jerusalem does carry some positive potential outcomes. As it currently stands the area under consideration has been cut off from the rest of the neighborhood by the Israeli wall. It is sectioned off from the rest of Jerusalem and receives no government services from Israel. At the same time the neighborhood also receives no administration from the Palestinian Authority. The expansion of municipal control for the Israeli authority in Jerusalem will at the very least bring some administration to the forgotten Palestinian district.
Unfortunately, the presence of some semblance of administration may be the only positive change many residents should expect. The portions of East Jerusalem that have already been formally annexed into Israel receive administration and pay taxes, but see virtually nothing in return in terms of developmental or social services. East Jerusalem contributes nearly half of the tax base for the city of Jerusalem, but receives less than one-tenth of the municipal funding. Schools are overcrowded, trash is infrequently collected, and job opportunities are hard to come by.
More than 90,000 Palestinians live on the eastern side of the separation wall and receive no administration from either the governments of Israel or Palestine.
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Russia: US Supporting Terror in Syria, West Spurring Bloodshed
Al-Manar | July 25, 2012
Russia accused the US on Wednesday of justifying terror in Syria, as it said that the West was spurring further bloodshed in the crisis-hit country.
Foreign Minister Sergei Lavrov told reporters that Washington’s failure to condemn the July 18 blast that killed top security officials meant it was justifying terror.
“This is quite an awful position, I cannot even find the words to make clear how we feel,” Lavrov said, adding: “This is directly justifying terrorism. How can this be understood?
Lavrov expressed bewilderment at calls on Russia to clarify its position on Syria, saying Moscow’s policy was crystal-clear and it was the West whose actions were contradictory.
He criticized the US ambassador to the United Nations Susan Rice, saying she had argued that the attacks in Damascus meant the UN Security Council had to agree to a sanctions resolution against Syria last week that Russia later vetoed.
“In other words, to say it in plain Russian, this means ‘we (the United States) will continue to support such terrorist acts for as long as the UN Security Council has not done what we want’,” Lavrov said.
WEST SURRING BLOODSHED IN SYRIA
For his part, Russian Deputy Foreign Minister Gennady Gatilov said statements made by some Western leaders urging to end the conflict in Syria outside the UN Security Council framework were wrong and “a step aside from our common positions.”
During an interview with Itar-Tass news agency, Gatilov said: “We agreed that all foreign players will act in one direction – in the work with the government and with the opposition. We believe that viable decisions backing political settlement can be taken only in the UN Security Council.”
The international community would exert “proper influence” on both sides of the Syrian conflict only if it spoke with one voice and acted in coordination, Gatilov said, adding some Western partners’ intention to circumvent the UN would make no progress in the current difficult situation.
Meanwhile, Gatilov slammed those Western countries trying to spur “further bloodshed” from the opposition. “This upset us greatly, we take this as a step aside from the consensus obtained by the Geneva agreements,” the diplomat said.
Disconnect: Public Wants Cuts in Defense Spending; Democratic and Republican Leaders Don’t
By Matt Bewig | AllGov | July 23, 2012
Americans want a Peace Dividend, but their leaders won’t give it to them. Despite multiple polls showing broad support for cuts in U.S. defense spending, a sort of anti-democratic bipartisanship has emerged in Washington, where both Republicans and Democrats oppose such cuts, often vocally.
The most recent polling data on the issue, released last week by the Program for Public Consultation (PPC), in conjunction with the Center for Public Integrity and the Stimson Center, shows that Americans believe defense spending should shrink next year by a fifth to a sixth of its present size. Other polls released during 2012, including surveys by Gallup, Roper, and others, have been similar, although variations have occurred.
The issue has arisen this summer because, under a budget compromise reached last year between Democrats and Republicans, 10% across the board cuts are set to kick in at the beginning of 2013, which would give the Department of Defense a budget next year of $470 billion—an amount it got by on during the George W. Bush administration while the U.S. was fully engaged in both the Iraq and Afghanistan wars. Nevertheless, both Republicans and some Democrats in Congress oppose these spending reductions, and former Vice President Dick Cheney recently emerged to lobby Congress against them, joined by representatives of Lockheed Martin Corp., who warned of thousands of layoffs if the cuts occur.
Lockheed Martin, the largest arms merchant in the world, is eager to keep filling up from the taxpayers’ money spigot. With annual revenues of about $45 billion, it invests its profits in influence, especially in Washington, where since 1989 Lockheed has donated $23 million to political campaigns, spent $125 million on lobbying; received $20 million in earmarks; received 31 grants and 15,358 contracts from the federal government; and placed 257 of their people on 135 government advisory committees.
The economic impact of defense cuts, especially on jobs, is one of the main reasons otherwise moderate or liberal Democrats oppose defense cuts, reasoning that the recession-ravaged economy cannot sustain a significant spending cut. Yet according to the PPC poll the public, even when provided information about the possible economic consequences of defense spending reductions, still opts for them over cuts to domestic programs like Social Security, health care, or education. Further, people in congressional districts with high defense spending supported defense cuts as readily as those in other districts, although Democrats generally supported larger cuts than Republicans.
“The idea that Americans would want to keep total defense spending up so as to preserve local jobs is not supported by the data,” said PPC director Steven Kull. On average, Democrats supported a Pentagon cut of 22%, while Republicans wanted a cut of 12%.
Related articles
- Poll: 76% of Americans favor cutting military spending (alethonews.wordpress.com)
- Survey Finds Large Majorities In GOP Districts Support Reducing Military Spending (thinkprogress.org)
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Solyndra scandal’s key players pay big bucks to attend Obama fundraiser
RT | July 24, 2012
US President Barack Obama shook hands with some of his wealthiest supporters Tuesday night at a fundraising shindig in San Francisco. Also on hand, though, was a matter the commander-in-chief just can’t seem to shake: his failed deal with Solyndra.
Around sixty patrons paid $35,800 a piece to attend a party in honor of President Obama this week, including a pair of gentlemen who have become central figures in an energy debacle that has haunted the Oval Office since last year. Among those in attendance were two key players in the Solyndra scandal.
President Obama touted Solyndra, a California solar-panel start-up, as an example of perfect American entrepreneurship early on in his presidency. Last year, however, the infant green energy company filed for bankruptcy, despite the president earlier approving a gigantic loan guarantee worth $535 million for the Silicon Valley start-up. The company had borrowed all but $8 million of the massive loan before calling it quits late last year, a move that prompted Obama’s opponents to ridicule the president over what some said was “a dubious investment” and even initiated an investigated by the FBI.
Nearly a year after Solyndra first filed for bankruptcy, the scandal took center stage again this week after Monday’s fundraiser funneled in donations from Matt Rogers, a former adviser at the Department of Energy that helped approve the loan as part of the stimulus plan, and Steve Westly, a venture capitalist that warned the White House against offering a deal to Solyndra before the president offered his own endorsement. Darren Samuelsohn of Politico was on-hand at Monday’s fundraiser and writes that it appears that the president isn’t exactly distancing himself from one of the most costly scandals of his administration.
Officials within the campaign to elect Massachusetts Governor Mitt Romney for president have already attacked the administration for still maintaining ties with people privy to the Solyndra deal. In a statement addressing the latest news, Romney spokesman Ryan Williams writes, “The Obama Administration betrayed American taxpayers when it dumped hundreds of millions of public dollars into Solyndra while ignoring clear warnings about the company’s dire financial situation.”
“President Obama’s first term worked out well for his donors who got special access and taxpayer money for their failed ventures. It hasn’t worked as well for the 23 million Americans struggling for work in the worst economic recovery our country has ever had,” Williams adds.
Japan bans U.S. Osprey war planes over safety concerns
Tehran Times | July 24, 2012
Japan’s prime minister says that he will not allow the U.S. military to fly its newest transport aircraft in his country until safety concerns are first addressed.
Yoshihiko Noda told parliament on Tuesday that no flights of the MV-22 Osprey aircraft would be allowed to take place until investigations into two recent crashes were completed.
The crashes took place in April and June, and Japan says that it will not allow them to operate over its airspace and from its soil until the government is satisfied that safety checks have been completed.
The deployment of the MV-22s to a U.S. military base on the island of Okinawa has become a political headache for the Japanese government due to intense local opposition.
Okinawa hosts more than half of the roughly 50,000 U.S. troops in Japan. The deployment of the aircraft has become an issue for anti-U.S. protesters to rally around.
The first 12 Ospreys headed for Okinawa arrived in Japan on Monday.
The Osprey is a hybrid aircraft with rotors that allow it to take off like a helicopter and engines that can tilt forward, enabling it to fly like an airplane at higher speed than helicopters.
The aircraft’s development was plagued with issues in its early years in the 1990s, but U.S. officials say the technical glitches have been cleared up.
It is used by the U.S. marines, primarily as a troop transport aircraft, allowing soldiers on the ground greater range than current transport helicopters offer.
EU turns down Israel call to put Hezbollah on terror list
Press TV – July 24, 2012
The European Union has flatly rejected an Israeli call to blacklist Hezbollah as a terrorist group, saying there is no such agreement among the bloc’s member states.
“There is no consensus for putting Hezbollah on the list of terrorist organizations,” Cypriot Foreign Minister Erato Kozakou-Marcoullis, whose country currently holds the rotating EU presidency, said on Tuesday.
Israel’s hawkish Foreign Minister Avigdor Lieberman made the request for blacklisting the Lebanese resistance movement while sitting alongside the Cypriot minister at a news conference held after annual EU-Israel talks.
“The time has come to put Hezbollah on the terrorist list of Europe,” Lieberman urged. “It would give the right signal to the international community and the Israeli people.”
But Kozakou-Marcoullis highlighted Hezbollah’s active role as a political party, stating that the EU would consider the move if there were tangible evidence of Hezbollah engaging in acts of terror.
Lieberman’s call comes days after the sixth anniversary of Israel’s war against Lebanon in July 2006, a 33-day conflict which ended in Hezbollah’s victory and heavy losses on the Israeli side.
This raised serious questions about Tel Aviv’s long-boasted military capabilities and forced several Israeli commanders to resign over their poor handling of the war.
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Raising the Minimum Wage Is Cheap and Easy
By Dean Baker | opednews.com | July 24, 2012
There are some policies that are pretty much no-brainers. We all agree that the Food and Drug Administration should keep dangerous drugs off the market. We all agree that the government should provide police and fire protection. And, we pretty much all agree that workers should be able to count on at least some minimal pay for a day’s work.
The minimum wage is non-controversial. The vast majority of people across the political spectrum support the minimum wage. In fact, one of the big accomplishments of the Gingrich Congress in 1996 was a 22 percent increase in the minimum wage. The only real issue is how high it should be. There are good reasons for believing that the minimum wage should be considerably higher than it is today.
At the current rate of $7.25 an hour, a full-time year-round worker would have gross pay of less than $15,000 a year. This is less than half of what the average Fortune 500 CEO makes in a day. It would be hard enough for a single person to survive on this income, imagine trying to support a child or even two on this money. And, close to 40 percent of the workers who would be benefited by a minimum wage increase have kids.
The counter-argument against raising the minimum wage is that it would actually hurt the people we are trying to help by reducing employment. There is little basis for this claim. The impact of the minimum wage on employment is one of the most heavily researched topics in economics.
Most recent research finds that it has no impact on employment. Even the research that finds job loss shows that the effect is small, suggesting that a 20 percent increase in the minimum wage may reduce employment of young people by around 2 to 3 percent.
While it’s not desirable to see anyone lose their job, it is important to remember the character of these jobs. They tend to be high turnover jobs that people leave after working relatively short periods of time. Job loss in this context is not likely to mean people being fired, rather it means that firms might be somewhat slower to hire. This would cause a typical low-wage worker to spend somewhat longer between jobs.
The dollars and cents might mean, for example, that a typical low wage worker ends up working 2 percent fewer hours in a year, but they take home 20 percent more pay for each hour that they work. This nets out to an increase in pay of 18 percent, a deal that most workers would likely consider pretty good.
In terms of whether we can afford a higher minimum wage, it is worth remembering that the minimum wage in 1968 would be almost $9.22 an hour in today’s dollars. In spite of the high minimum wage in the late 1960s, the job creators of that period pushed the unemployment rate down to 3.0 percent.
And, the country has not gotten poorer in the last four and a half decades. We have policy wonks running around Washington who seem to think that cell phones, computers, the Internet, and all other innovations of the past four decades that we now take for granted have reduced our standard of living.
This is of course nonsense. Productivity has increased by more than 120 percent since the late 1960s. If the minimum wage had kept step with productivity growth and inflation it would be over $20 an hour today.
The real problem in our economy today is not a lack of productivity. The problem is that the gains from productivity growth have not been broadly shared. The wealthy have used their power to rig the deck so that most of the benefits of growth have gone those at the top. They have used their control of trade policy, the Federal Reserve Board, and more recently the Wall Street bailout, to ensure that those at the top have gained at the expense of everyone else.
A higher minimum wage is an important step toward reversing this rigging. It should not be too much to expect that workers today should get at least as much as they did 45 years ago, and perhaps some dividend to allow them to share in the benefits of economic growth over this period. A minimum wage of $10 an hour would be a big step in the right direction.
Dr. Dean Baker is a macroeconomist and Co-Director of the Center for Economic and Policy Research in Washington, D.C.
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