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Kim Jong Il Sends Top Aide to Beijing as Diplomacy Founders
North Korea dispatched one of Kim Jong Il’s top aides to Beijing the same day as leaked U.S. diplomatic dispatches showed China is increasingly willing to consider a unification of Korea under the South’s control.
Choe Thae Bok, chairman of North Korea’s Supreme People’s Assembly, left for Beijing today for talks with Chinese leaders, state-run Korea Central News Agency reported. Choe met China’s President Hu Jintao in the Chinese capital on Oct. 2 and accompanied Kim on a trip to the city in May, according to KCNA.
Choe’s visit comes after China proposed on Nov. 28 that negotiators from the two Koreas, Japan, Russia and the U.S. meet in Beijing early next month to defuse tensions following a Nov. 23 North Korean artillery attack on a South Korean island that killed four people. A U.S. Navy aircraft carrier is now conducting exercises in the Yellow Sea off the Korean coast.
Japan rejected the Chinese proposal yesterday. Talks can’t be held only because North Korea has “run amok,” Japanese Foreign Minister Seiji Maehara told the Wall Street Journal in an interview. Nicholas Snyder, a spokesman at the U.S. Embassy in Beijing, said “clear steps by North Korea are needed to demonstrate a change of behavior.” South Korea’s Ministry of Foreign Affairs and Trade said it would consider China’s call for talks “very cautiously.”
China is North Korea’s biggest trading partner and a source of much of the country’s food, fuel, and foreign currency. The two countries have been allies for 60 years since fighting together against U.S.-led forces during the 1950-53 Korean War. The two countries share a 1,415-kilometer (880 mile) border.
A leaked Feb. 22 diplomatic cable provided to the Guardian by WikiLeaks.org said that South Korea’s then-vice foreign minister, Chun Yung Woo, told U.S. Ambassador Kathleen Stephens that young Chinese Communist party leaders don’t think North Korea is a reliable ally. Chun also said two unidentified Chinese officials told him they believed Korea should be unified under the South.
U.S. Secretary of State Hillary Clinton yesterday said the Obama administration “strongly condemns” the unauthorized release of more than 250,000 diplomatic documents that WikiLeaks began posting two days ago. State Department spokeswoman Nicole Thompson said she “can’t provide veracity of anything WikiLeaks has released to the media,” adding the agency’s policy is to refrain from commenting on specific leaked materials.
China hopes the U.S. will “properly handle” the situation caused by the leaked messages, Foreign Ministry spokesman Hong Lei told reporters in Beijing today.
South Korea’s foreign ministry spokesman Kim Young Sun said it would be “inappropriate to comment on other countries’ diplomatic documents.
‘‘If it is true that details of diplomatic discussions have been leaked, it is regrettable,’’ Kim said.
The U.S. is pressing China to censure North Korea for the shelling of Yeonpyeong island. China has avoided blaming its ally of 60 years, instead criticizing joint naval exercises by South Korea and the U.S. in the Yellow Sea that began Nov. 28.
Chun, now South Korea’s national security adviser, told Stephens that China ‘‘has much less influence than most people believe’’ over Kim Jong Il’s regime, according to the Feb. 22 cable cited in the Guardian, a U.K. newspaper.
Chinese officials told U.S. diplomats that their efforts to cajole North Korea had been rebuffed, and that the U.S. was the only country with real influence, according to a leaked June 17, 2009, cable. “The United States was the key while China was only in a position to apply a little oil to the lock,” the cable cited an unidentified Chinese official as saying.
A separate message from Beijing said China’s vice-foreign minister He Yafei in April 2009 told an American diplomat that North Korea’s missile tests were designed to get the attention of the U.S. and that the government in Pyongyang was acting ‘‘like a spoiled child.” Two months later, U.S. Ambassador to Kazakhstan Richard Hoagland sent a cable saying his Chinese counterpart, Cheng Guoping, told him North Korea was a “threat to the whole world’s security,” the Guardian said.
The cables all predate a surge in diplomatic activity between China and North Korea this year.
Kim made an unprecedented two visits to China this year, meeting with President Hu Jintao on both occasions. In October, Zhou Yongkang, a member of China’s ruling Politburo Standing Committee, stood next to Kim during a Pyongyang military parade. Later that month, top Chinese general Guo Boxiong visited North Korea, marking the two countries’ “victory” over “imperialist” U.S.-led forces during the 1950-53 Korean war.
China also refrained from criticizing or blaming North Korea over the March sinking of a South Korean warship. An international panel found evidence that a North Korean torpedo was responsible for the sinking, which killed 46 sailors.
WikiLeaks.org, a nonprofit group that releases information that governments and businesses want to keep confidential, has over the past two days posted on its website what it says are secret, confidential or in some cases unclassified U.S. embassy cables.
“Contagion risk is still high on the agenda,” said Marius Daheim, a senior fixed-income strategist at Bayerische Landesbank in Munich. “Nobody wants to expose themselves to any peripheral risks.”
The Italian 10-year bond yield rose 14 basis points to 4.79 percent as of 8:53 a.m. in London. The 3.75 percent security due in March 2021 fell 1.05, or 10.50 euros per 1,000-euro ($1,306) face amount, to 92.10. The spread with 10-year German bonds increased to as much as 209 basis points, a euro-era record.
The euro fell 0.5 percent to $1.3057 and dropped 0.8 percent to 109.74 yen.
The debt crisis that started a year ago in Greece deepened this month amid concern bondholders would be forced to share the cost of future bailouts. The average yield for 10-year debt from Greece, Ireland, Portugal, Spain and Italy reached a euro-era record as speculation intensified that other nations will require external support after Irish Prime Minister Brian Cowen conceded on Nov. 21 that the country needed a rescue.
The yield on 10-year Spanish bonds increased 22 basis points today to 5.68 percent, after a 25 basis-point jump yesterday. That pushed up the yield spread to German debt to 293 basis points.
German 10-year bonds rose, with the yield five basis points lower at 2.70 percent. The Irish 10-year yield was little changed at 9.47 percent.
The cost of insuring the debt of Italy rose 7 basis points to 253, Spain increased 9 basis points to 361, Portugal was 11.5 higher at 551 and Ireland was up 10 at 614, according to CMA prices for credit-default swaps.
Swaps on Greece were up 10 basis points at 979.
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Indore: In a raid, the Income-Tax department recovered cash and gold worth R four crore on Friday. Officials raided the offices and homes of bullion traders Honey-Toney where they confiscated R one crore cash and gold and jewels worth another R three crore.
Keshav Nachani (Honey) and Om Prakash Dhanwani allegedly made transcations from 100 false accounts and acquired crores in the form of black money.
The duo bought and sold gold across the country illegally. They came under the Income Tax department scanner when it was noticed that their accounts had no pan number, which is against the law.
Raids in more offices and locations from where they operated are expected on Saturday.
The duo allegedly operated from various parts of the country and their network is spread offshore as well. They are also accused of making money illegally through construction of malls.
New Delhi: Union Communications & IT Minister Kapil Sibal said Monday that the government would send notices to telecom companies that have flouted norms during the allocation of 2G spectrum. the notice will be send next week the minister said.
“It is time we issued notices to those who have suppressed facts and enjoyed undue privileges,” the minister told reporters in a press conference here.
The case of each of the 119 companies which were indicted in the CAG report will studied in detail before sending the notice.The companies will be given 60 days to respond to the notices.
Reiterating the CAG report on the 2G spectrum, the minister said that the companies violated norms in respect of transparency and equity as well as on the companies’ slcking in commitment to the roll-out of the licence. Of the 119 companies 81 fall under both categories of ineligibility to get licences and 38 for not meeting roll-out obligations
The eligibility requirement must have been undermined by companies because no such system was in place when they applied for the allocation, he said. Many of the companies when they applied would have done a self-certification, but would have failed to confirm to the Memorandum of Association(MoA). Any change to MoA can be made under Section 18 and 19 of the Companies Act.
“This helped some companies to get ahead,” the minister said. This would have turned the first-cum-first-serve basis to the advantage of a few companies.
Notice will be sent on the basis of inadequate paid-up equity of the company which are not in accordance with the terms of the Letter of Intent. The paid-up equity for each company depends on the category under which it has applied licence for the 2G spectrum.
A liquidated-damage clause will be imposed on the companies who failed to roll-out the spectrum within 52 weeks.
“There are about 119 of such instances, going back as far as to 2006, much before the actual allocation actually happened in 2008.
“Time has come for a transparent system which is very essential for a stable telecom sector,” he added.
Courtesy : Zee News
Iran obtained 19 advanced missiles from North Korea, potentially giving the Islamic nation the capability of attacking Moscow and cities in Western Europe, according to embassy cables posted by WikiLeaks.org and provided to the New York Times.
U.S. officials denounced the release, coming on the eve of Secretary of State Hillary Clinton’s departure for a security conference in the Persian Gulf, as jeopardizing U.S. ties with foreign governments and endangering individuals. WikiLeaks began posting the cables yesterday.
The 19 North Korean BM-25 missiles, based on a Russian design known as the R-27, might give Iran the “building blocks” for producing long-range missiles, according to a Feb. 24 cable posted on WikiLeaks. The cable didn’t provide specific evidence, according to the Times, which agreed not to publish the document at the Obama administration’s request.
“North Korea and Iran have had a decades-long missile relationship and also most likely a nuclear relationship,” said Bruce Klingner, an analyst at the Heritage Foundation in Washington and former chief of the Central Intelligence Agency’s Korea branch. “The leaking of the classified documents provides a greater sense of confidence” for analysis conducted previously by outside experts and most recently illustrated in photos from a North Korean parade, he said.
Pressured the U.S.
Diplomatic cables posted by the Guardian, which also received advance copies from WikiLeaks, indicate as far back as early 2008 Saudi Arabia and other Arab governments pressed the U.S. for attacks on Iran to stop it getting a nuclear bomb, even as some expressed concern that a military strike might destabilize the region.
The Obama administration has won stiffer United Nations Security Council sanctions against Iran and sealed arms agreements such as a $60 billion deal with Saudi Arabia over the next 10 years.
The State Department declined to confirm information in what WikiLeaks says is more than 250,000 documents, covering a period from December 1966 through February 2010.
“I can’t provide veracity of anything WikiLeaks has released to the media,” Nicole Thompson, a State Department spokeswoman, said in an interview, adding the agency’s policy is to refrain from commenting on specific leaked materials.
About 9,000 documents were listed as containing information too sensitive to be shared with a foreign government, the New York Times said. None was listed as “top-secret,” according to the Times.
Along with the Guardian of the U.K., France’s Le Monde, Spain’s El Pais and Der Spiegel of Germany obtained the WikiLeaks documents.
On the threat from Iran, a cable posted by the Guardian quoted Adel al-Jubeir, the Saudi ambassador to the U.S., as citing Saudi King Abdullah’s “frequent exhortations to attack Iran and put an end” to the Iranian nuclear weapons program. The exchange took place in an April 20, 2008 meeting between al- Jubeir, then-U.S. Iraq Ambassador Ryan Crocker and U.S. Central Command commander General David Petraeus, the Guardian said.
A similar tone was struck by King Hamad bin Isa Al Khalifa of Bahrain in a Nov. 4, 2009 conversation with Petraeus.
King Hamad “pointed to Iran as the source of much trouble” in the region and “he argued forcefully to take action to terminate their nuclear program by whatever means necessary,” according to a classified cable.
Hamad said “the danger of letting it go on is greater than the danger of stopping it,” according to the cable cited by the Guardian.
Bahrain is home to the U.S. 5th Fleet headquarters. The cable also disclosed that the king agreed to a NATO request to base Awacs air surveillance aircraft in his nation as part of increased monitoring of Iran.
Israeli military officials 14 days later in a Nov. 18, 2009, meeting with U.S. State and Defense Department officials, including Assistant Secretary of State Andrew Shapiro, said 2010 would be a “critical year” for Iran’s nuclear program and Israel’s capability to attack, according to a cable posted by the Guardian.
“If the Iranians continue to protect and harden their nuclear sites, it will be more difficult to target and damage them,” the cable said, summarizing Israel’s concerns.
The cable said both sides discussed the need to avoid publicity for an “upcoming delivery” of GBU-28 bunker-buster bombs to Israel “to avoid any allegations that the U.S. is helping prepare for a strike against Iran.”
Iran’s ties with Arab nations won’t be hurt by publication of the U.S. cables, Iranian President Mahmoud Ahmadinejad said today in a speech aired live on state television from Tehran.
“Our relations with Arab countries and our neighbors are very good, we are like brothers,” Ahmadinejad said. “They will not be affected by these reports.”
Israeli Prime Minister Benjamin Netanyahu expressed satisfaction that the WikiLeaks disclosures indicated that Arab leaders were as worried about Iran’s nuclear program as his own government.
“More and more countries, governments and leaders in the Middle East and the wider world understand that this is the fundamental threat,” Netanyahu told a news conference in Tel Aviv. “I hope the leaders will have the courage to say to their nations publicly what they’ve said about Iran.”
The leaked documents include details about governments and officials, including an episode last year in which Afghanistan’s then-vice president, Ahmed Zia Massoud, was found carrying $52 million in cash while visiting the United Arab Emirates. Massoud denied taking any money out of Afghanistan, according to the Times.
According to another cable, a Chinese contact told the U.S. embassy in Beijing in January that China’s Politburo directed an “intrusion” into Google Inc.’s local computer networks. The Google hacking was “part of a coordinated campaign of computer sabotage carried out by government operatives, private security experts and Internet outlaws recruited by the Chinese government,” the New York Times said in its account of the WikiLeaks cables.
The cyber attacks in China were orchestrated by a senior politburo member who found articles critical of him using Google’s search engine, the Guardian reported. The Chinese Foreign Ministry and Jessica Powell, a Tokyo-based spokeswoman at Google, weren’t immediately available today to comment on the report.
In July 2009, Crown Prince Mohammed bin Zayed Al Nahyan of Abu Dhabi, then the defense supreme commander for the United Arab Emirates, declared that Ahmadinejad “is Hitler,” the New York Times reported, citing the documents.
The Obama administration said in a statement yesterday that embassy reporting to Washington “is candid and often incomplete information,” not an expression of policy.
“Nevertheless, these cables could compromise private discussions with foreign governments and opposition leaders,” according to the statement from the White House Press Secretary, Robert Gibbs.
Republicans also condemned the release of the cables, with Senator Lindsey Graham of South Carolina stating on “Fox News Sunday” that “the people at WikiLeaks could have blood on their hands.”
WikiLeaks, a nonprofit group that posts information the government wants to keep confidential, previously released 400,000 documents in October related to the Iraq war and about 75,000 in July on the Afghan conflict.
An Army intelligence analyst named Bradley Manning was arrested in June at age 22 and charged with illegally releasing classified information. He had said in an online chat in May that the documents he downloaded included “260,000 State Department cables from embassies and consulates all over the world,” the New York Times reported.
The Pentagon said yesterday it will take action to prevent future reoccurrences, such as monitoring user behavior in a way similar to steps taken by credit-card companies to detect fraud. The military will also conduct security oversight inspections at forward bases and remove the ability of classified computers to download information onto removable disks.
Issue OpensNovember 26, 2010
Issue ClosesDecember 01, 2010
November 30, 2010 (for QIB Bidders)
Post Modification PeriodDecember 02, 2010
Fresh Issue Size33.60 Lakh Equity Shares of `10/- each
Issue Size at Lower Band` 114.24 Crore
Issue Size at Upper Band` 126.00 Crore
Price Band`340 – `375
Market Lot17 Equity Shares and Multiple
MOIL is currently a market leader in domestic manganese ore market commanding around 50% of the domestic market share. If a look at financials is taken, the company stands on Excellent Fundamental Grounds, which is also backed by the IPO Grade awarded to it by CARE. Company was conferred the Mini Ratna status in 2008, which provides it with certain operational and financial autonomy. In particular, it is not required to obtain the approval of the government to incur capital expenditure for the implementation of certain mechanization programs and purchase of equipment. The Company is worthwhile to be kept in Portfolio for long term and can also be applied for listing gains of almost 5-10%, if the market remains supportive.
Ireland Wins EU85 Billion; Germany Drops Bond Threat
By James G. Neuger and Simon Kennedy
Nov. 29 (Bloomberg) — European governments sought to quell the market turmoil menacing the euro, handing debt-strapped Ireland an 85 billion-euro ($113 billion) aid package and diluting proposals to force bondholders to cover a share of future bailouts.
European finance chiefs ended crisis talks in Brussels yesterday by endorsing a Franco-German compromise on post-2013 rescues that means investors won’t automatically take losses to share the cost with taxpayers as German Chancellor Angela Merkel initially proposed to the consternation of bond traders.
The first test of the twin decisions come today with markets resuming trading after speculation intensified last week that Portugal and perhaps even Spain will require external support. In a third move, Greece was told it could have an extra four-and-a-half years to repay emergency loans totaling 110 billion euros to match the seven-year term under Ireland’s deal.
“People are now going to focus on Portugal and it’s probably also going to need some help,” said Axel Merk, president and chief investment officer of Merk Investments LLC in Palo Alto, California. “We’ll maybe see some relief in markets, but governments need to show they’re getting their economies in shape.”
Six months after the Greek rescue exposed flaws in the euro’s makeup and fueled doubts whether 16 countries belong in the same currency union, policy makers again found themselves meeting on a Sunday racing to calm markets. They convened after a week in which the cost of insuring Portuguese, Irish and Spanish government debt against default rose to a record and the 10-year bond yields of those nations, Italy and Greece averaged more than 7.5 percent, a euro-era record.
The euro advanced in early Asian trading today before surrendering the gains to trade down 0.2 percent at $1.3216 as of 11:01 a.m. in Tokyo. The currency weakened 3.2 percent against the dollar last week.
Germany, which built the euro on the principle of budgetary rigor, unleashed the latest phase of the crisis by demanding a “permanent” system as of 2013 that would enable fiscally troubled countries to restructure their debts and cut the value of bond holdings.
The German push ran into criticism from policy makers elsewhere, who called it mistimed, and from European Central Bank President Jean-Claude Trichet, who warned it would unsettle bondholders. Germany yesterday backed away from the pitch for an automatic penalty, agreeing to give the International Monetary Fund a role in determining losses on a case-by-case basis.
The new proposal, fast-tracked from a debate set for December, would introduce “collective action clauses” for debt sold as of 2013, enabling fiscally hard-hit governments to renegotiate bond contracts. EU governments aim to enshrine it in the bloc’s treaties by mid-2013 and pair it with a new emergency liquidity fund to replace the one expiring then.
Trichet yesterday called the compromise a “useful clarification” and the ECB’s Governing Council said in a statement that the Irish program will “contribute to restoring confidence and safeguarding financial stability in the euro area.”
Banque de France Governor Christian Noyer said today on a visit to Tokyo that Europe has dealt with the debt crisis with determination and questions on the future of the euro are “totally” off the table.
“There’s plenty of herd behavior in the market,” EU Economic and Monetary Affairs Commissioner Olli Rehn said. “We want to clarify any possible confusion.”
Germany’s export-led economy has powered through the euro crisis, with business confidence at a record high in November and the government projecting expansion of 3.7 percent this year, the fastest pace in more than a decade. That resilience contrasts with recession in Greece and Ireland, splitting the euro region between better-off countries in Germany’s economic slipstream and poorer ones on the continent’s fringes.
Yesterday’s decisions bring “hope of preventing contagion spreading to other countries but do not address long-term solvency issues,” said Andrew Bosomworth, a Munich-based fund manager at Pacific Investment Management Co. “It’s a kick-the- can-down-the-road solution as opposed to acknowledging and confronting the here-and-now insolvency problems.”
Cost of Rescue
Ireland said it will pay average interest of 5.8 percent on the loans, which break down into 45 billion euros from European governments, 22.5 billion euros from the IMF and 17.5 billion euros from Ireland’s cash reserves and national pension fund.
“I don’t believe there were any other real options,” Irish Prime Minister Brian Cowen told reporters in Dublin.
A day after more than 50,000 protesters marched through Dublin to denounce Cowen’s budget cuts to stave off financial ruin, the EU gave Ireland an extra year, until 2015, to get its budget deficit to the euro limit of 3 percent of gross domestic product.
Including the bill for propping up Irish banks, the deficit is set to reach 32 percent of GDP this year, the highest in the euro’s 12-year history.
Cowen has overseen the collapse of Ireland’s banking system and public finances, leading to recession and unemployment near 14 percent. Cowen’s government is also unraveling. The Green Party, a junior coalition partner, wants elections in January, his party last week lost a special election for a vacant parliamentary seat and some of his own colleagues are slamming his leadership.
Close banking links led Britain, a non-euro user that didn’t contribute to Greece’s 110 billion-euro rescue in May, to contribute 3.8 billion euros to Ireland’s package.
“That is money we fully expect to get back,” Chancellor of the Exchequer George Osborne told reporters in Brussels. “It’s in everyone’s national interest and it’s in Britain’s national interest that we get some economic stability in Ireland and indeed across the euro zone.”
The deal for Ireland shifts attention to Portugal, which last week passed the deepest spending cuts in more than three decades with the goal of getting back under the EU’s deficit limits by 2012. HSBC Holdings Plc estimates it needs to find 51.5 billion euros over the next three years to meet its likely budget and bond redemption needs.
While Greece let the budget get out of hand and Ireland fell prey to a housing bust, Portugal suffers from a lack of competitiveness that kept average economic growth below 1 percent in the past decade. Its government has also been slower to cut its deficit than others, with the central government’s shortfall widening 1.8 percent in the first ten months of the year as Spain’s fell 47 percent.
Like Ireland, Portugal doesn’t immediately need money to run the government. It has completed this year’s bond sales and doesn’t face a redemption until April. The government debt agency plans to hold an auction of 12-month bills on Dec. 1.
“Portugal doesn’t see a need to ask for help,” German Finance Minister Wolfgang Schaeuble said yesterday.
Spanish Economy Minister Elena Salgado yesterday also reiterated that her economy — the euro zone’s fourth-largest and almost twice the size of Portugal, Ireland and Greece combined — won’t need aid either. As well as slashing its budget gap, the country has brought regional spending under greater control and half of its debt is held at home, limiting the threat of a withdrawal by foreign investors. It too doesn’t face the first of its 45 billion euros in bond redemptions next year until April.
Investors have nevertheless expressed worry that the EU’s bailout pot may be smaller than advertised and so not large enough to save Spain. HSBC’s sums show the country needs 351 billion euros over the next three years.
In practice, the EU may only be able to deploy 255 billion euros of the 440 billion-euro European Financial Stability Facility, according to Nomura International Plc. That’s because the rescue fund is financed by issuing bonds and to secure a AAA rating, governments agreed to set aside cash and to link lending to the creditworthiness of donors.
The rest of the bailout pool consists of 60 billion euros from the European Commission and 250 billion euro pledged by the IMF.
The reigniting of the crisis means the ECB may again postpone its exit from emergency measures just as it did at the height of the Greek turmoil. It’s likely to also provide more help to banks in Spain and Portugal and could ultimately extend its bond-purchase program to Spanish securities and maybe even conduct broader asset purchases, said Janet Henry, chief European economist at HSBC in London. – (bloomberg news)
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