US Jobless Claims Drop, Housing Starts Rise

Posted June 16th, 2011 at 12:40 pm (UTC-5)
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Americans put in fewer new claims for unemployment benefits last week while the number of new home construction projects last month rose.

The U.S. Labor Department said Thursday first-time jobless claims dropped to 414,000 for the week ending June 11, a decrease of 16,000 from the week before.

The number of unemployed Americans continuing to get unemployment benefits also fell, hitting its lowest level in nearly two months.

A separate Commerce Department report found the number of new homes being built jumped 3.5 percent in May from the month before. The number of permits for new building projects also gained, rising almost nine percent to its highest level since December.

Some economists and investors say Thursday's data shows the U.S. economy may be starting to strengthen again following several weeks of poor economic data.

Earlier this month, the Labor Department announced the country's unemployment rate had risen slightly, to 9.1 percent, after the economy created fewer jobs than previously forecast.

Still, another report released Thursday indicates the U.S. economy may continue to struggle, dragged down by ongoing problems with the housing sector.

RealtyTrac — a private company that analyzes the housing market — said Thursday the number of homes seized by banks fell 4 percent from April to May. But RealtyTrac said the drop was due to a backlog of homes scheduled to be repossessed.

RealtyTrac Senior Vice President Rick Sharga said there are about four million homeowners who are unable to make timely payments on their home loans.

The company said about one out of every 600 U.S. homeowners was warned in May that they were in danger of losing their homes.

Separately, a report by one of the U.S. Federal Reserve's regional banks gave another indication the country's manufacturing sector is struggling.

The central bank's Philadelphia branch said Thursday its manufacturing index fell to minus 7.7 in June. That's the index's lowest reading in almost two years, and down from a positive 3.9 in May.

Any reading below zero indicates the sector is contracting.

The index gives only a partial picture of the sector because it is based on data from only parts of the eastern United States .

New Hopes, Protections for Domestic Workers

Posted June 16th, 2011 at 12:25 pm (UTC-5)
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The world's domestic workers could soon have better working conditions under a landmark convention.

Delegates at the International Labor Conference in Geneva Thursday adopted a treaty protecting domestic workers' rights.

If approved by member states, it will give domestic workers many of the same basic rights already available to other workers, including reasonable work hours, at least 24-hours of consecutive rest and a limit on in-kind payments.

International Labor Organization Director General Juan Somavia called the adoption of the convention a “breakthrough of great significance.”

The ILO estimates there are at least 53 million domestic workers worldwide but that there could be as many as 100 million.

About 83 percent of the domestic workers are women or girls. Many are also migrants from developing countries.

The United Nations' labor agency says many domestic workers are currently exploited or treated badly. The ILO also says many domestic workers are subjected to physical or mental abuse.

The director of the ILO's conditions or work program says the next challenge will be to ensure that domestic workers are given the rights contained in the convention. But Manuela Tomei says inspectors could be allowed into private homes to verify that the basic standards are being met.

US Stocks Push Higher

Posted June 16th, 2011 at 12:25 pm (UTC-5)
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The major U.S. stock indexes posted slight gains in Thursday's midday trading, following reports on jobless claims and the housing market.

The Dow Jones Industrial Average edged up six-tenths of one percent. The S&P 500 Index rose almost half a percent. And the NASDAQ gained one-quarter of a percent.

European stock prices closed lower.

London's Financial Times index fell three-quarters of a percent to end at 5,699. The CAC-40 in Paris slid four-tenths of a percent to close at 3,792. And trading on the DAX index in Frankfurt slipped less than one-tenth of a percent to finish at 7,110.

In Asia, Tokyo's Nikkei index plunged 1.7 percent to finish at 9,411. Hong Kong's Hang Seng index lost almost 1.8 percent to finish the day's trading at 21,953.

The price of gold fell more than $1 to trade at $1,529.75 an ounce.

The dollar was down against the yen but rose against the euro.

Reports: US Congressman to Resign Amid Internet Sex Scandal

Posted June 16th, 2011 at 12:05 pm (UTC-5)
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U.S. lawmaker Anthony Weiner is reportedly resigning from the House of Representatives following his involvement in an Internet sex scandal.

U.S. media report the married Democrat from New York will announce his decision to step down Thursday.

House Democratic Minority Leader Nancy Pelosi declined to take reporters' questions on Weiner Thursday, saying she would not talk about the issue before his announcement.

Weiner has admitted to exchanging explicit photographs and messages with six women during the past three years.

On Monday, the House approved a two-week leave of absence for Weiner so he could seek professional help.

His indiscretions became public late last month when a lewd photo sent to a female college student showed up on his Twitter feed.

Weiner initially claimed his account had been hacked. But more than a week later, the 46-year-old congressman held an emotional news conference, admitting the photo was his and that he had sent it.

He apologized for lying, but rejected numerous calls for his resignation. Even U.S. President Barack Obama voiced his opinion, telling NBC News that he would step down if he were Weiner, and calling the congressman's behavior “highly inappropriate.”

Weiner's wife of nearly one year, Huma Abedin, is a long-time aide to Secretary of State Hillary Clinton. Last week, The New York Times reported that Abedin is pregnant with the couple's first child.

Weiner said he never met any of the women he corresponded with online and by phone and that he was not sure of their ages. One woman who has spoken out about her online relationship with Weiner is a former porn star. The congressman also corresponded with a 17-year-old girl, but local authorities found nothing inappropriate in those exchanges.

Minority Leader Pelosi called for an ethics investigation to determine whether Weiner used any official resources in his communications or if any other violation of House rules occurred. Pelosi has said Weiner needs help and he should get some “without the pressures of being a member of Congress.”

Weiner says he did not break the law.

US Opposes Serbian Calls for Partition of Kosovo

Posted June 16th, 2011 at 12:00 pm (UTC-5)
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A senior U.S. official says Washington opposes Serbian calls for Kosovo to be partitioned along ethnic lines as a way of resolving a dispute about Kosovo's 2008 secession from Serbia.

U.S. Assistant Secretary of State Philip Gordon said Thursday the idea of redrawing Kosovo's borders to incorporate ethnic Serb areas into Serbia would be a “recipe for disaster” for the Balkan region. Gordon was speaking during a visit to Kosovo's capital, Pristina, where he met with Prime Minister Hashim Thaci.

Serbia rejects the independence of Kosovo, a predominantly ethnic Albanian state that has been recognized by more than 70 countries. But Serbian Deputy Prime Minister Ivica Dacic recently said Belgrade may be able to resolve the dispute if Kosovo's Serb-dominated north joins Serbia.

Gordon is on a four-nation Balkan tour that began with visits to Bosnia-Herzegovina on Tuesday and Serbia on Wednesday. His final stop is Croatia.

In the Bosnian capital, Sarajevo, Gordon met with Kosovo Foreign Minister Enver Hoxhaj and pledged continued U.S. support for Kosovo as an “independent and multi-ethnic country.” The U.S. official also called for “technical dialogue” between Kosovo and Serbia, saying it will reduce their differences.

More NATO Bombings in Libya as Russia, Italy Lead Diplomatic Efforts

Posted June 16th, 2011 at 12:00 pm (UTC-5)
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NATO fighter jets pounded targets near Libyan leader Moammar Gadhafi's Tripoli compound on Thursday while Russia and Italy led new diplomatic efforts to resolve Libya's crisis.

A series of thunderous booms rocked the capital city and a column of smoke could be seen rising from near Mr. Gadhafi's Bab-al-Aziziya compound early Thursday. It was not immediately clear what had been hit.

Meanwhile, Italy says it will host a meeting of Libyan tribal leaders to help promote reconciliation. Foreign Minister Franco Frattini said Thursday that up to 300 tribal representatives will attend the meeting in Rome. He did not specify the date.

Also Thursday, Russian envoy Mikhail Margelov met with Libyan government officials in Tripoli. He said officials told him that Mr. Gadhafi was not ready to step down, despite growing calls for his resignation.

Russian news agencies quote Margelov as saying Libyan government officials had assured him that direct contacts between the government and rebels based in Benghazi were underway.

On Wednesday, forces loyal to the Libyan leader bombarded rebel positions in the Western Mountains region.

Rebels, meanwhile, made advances from the port city of Misrata toward Zlitan, about 135 kilometers east of Tripoli.

Zawahri: From a Life of Comfort to Hunted Terrorist

Posted June 16th, 2011 at 11:50 am (UTC-5)
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Ayman al-Zawahri, the new leader of the al-Qaida terror network, was born into a life of comfort in Egypt but shaped by life experiences into a feared radical Islamic terrorist.

He is a surgeon by training but an ideological firebrand by choice. Now he is replacing Osama bin Laden, who was killed last month by U.S. commandos in a raid on his Pakistani hideout.

Zawahri was bin Laden's deputy, supporting al-Qaida with his organizational and tactical skills, the first to espouse the use of suicide bombings and independent terror cells. His jihad, or holy war mission, was simple and straightforward — inflict “as many casualties as possible” on the Americans and their allies, especially Israel.

Now he is believed to be living somewhere in the mountainous region near the Afghan-Pakistani border, with the U.S. offering a $25 million reward for information leading to his capture. In regular videotapes, he has condemned the U.S., saying that al-Qaida's fight will not be ended until the Western powers leave “the lands of the Muslims.”

He was born in Cairo to a wealthy family of doctors and scholars and became involved with radical Islam as a teenager. Like many educated young Egyptians, he was outraged at the treatment of Islamists in the 1960s as Egypt moved toward a Soviet-style state under socialist Gamel Abdel Nasser. Thousands of people suspected of subversion were thrown in jail.

While earning a medical degree, he helped to form the Egyptian Islamic Jihad militant group.

Zawahri traveled to Pakistan for the first time in 1980, working with the Red Crescent Society in the city of Peshawar to provide medical treatment to Afghans wounded in fighting with Soviet troops occupying neighboring Afghanistan. He also made his first trips into Afghanistan that year.

Later, he was one of hundreds tried for links to the 1981 assassination of Egyptian President Anwar Sadat. He was acquitted of that, but served a three-year term for illegal arms possession. After his release in 1984, Zawahri returned to Peshawar to support the Afghan insurgency against the Soviets and formed a bond with bin Laden, serving as his personal doctor.

In 1998, Zawahri formed an alliance with bin Laden, becoming his deputy. The United States accuses the Egyptian of helping to organize the bombings of U.S. embassies in Kenya and Tanzania later that year.

Zawahri also is suspected of playing a major role in the 2001 terrorist attacks on the United States, for which al-Qaida claimed responsibility from its base in Afghanistan. He went into hiding with bin Laden when U.S.-led forces invaded Afghanistan weeks later, ousting the country's Taliban militant rulers, who had sheltered the terror network.

Zawahri's hatred of the U.S. also became personal: A U.S. air strike killed the Egyptian's wife and at least two of his children in southern Afghanistan's Kandahar province in December 2001.

Zawahri proceeded to rebuild al-Qaida in the lawless tribal regions of the Afghan-Pakistani border and became the new face of the terror network, releasing videos and audiotapes taunting the United States as bin Laden faded from view.

In some videos, the bearded Zawahri could be seen jabbing his finger and staring from behind heavy-rimmed glasses. The Central Intelligence Agency came close to killing or capturing him several times in the Pakistani tribal region.

But he remains at large and now, as he turns 60 later this week, has become the head of al-Qaida.

Britiain Warns Against Early Afghan Withdrawal

Posted June 16th, 2011 at 11:45 am (UTC-5)
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British Defense Secretary Liam Fox is cautioning against taking too many troops out of Afghanistan too early, weeks ahead of the expected start of the U.S. withdrawal from the country.

Fox made his comments Thursday while visiting British troops stationed in Afghanistan.

He echoed the view of U.S. officials by saying the coalition's military gains against the Taliban are far from irreversible. He said Britain's withdrawal of troops will depend on the situation.

The United States is expected to start withdrawing troops from Afghanistan in July as the coalition moves to gradually hand over security control to the Afghans by 2014.

Britain Urged Not to Deport Tamils

Posted June 16th, 2011 at 11:25 am (UTC-5)
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Amnesty International is urging Britain not to deport a group of Sri Lankans, because they risk torture when they return to their country.

The rights group says Britain was set to return at least 20 Sri Lankans, mostly ethnic-Tamils, from London to Sri Lanka's capital, Colombo, on Thursday.

Amnesty's Sri Lanka researcher, Yolanda Foster, says the end of Sri Lanka's civil war has not diminished the risks facing asylum seekers, including arrest and detention upon arrival in Sri Lanka. She says there have been cases where returned asylum seekers have been tortured.

Sri Lanka's war against the Tamil Tiger rebels ended in May of 2009, with the rebels' defeat. The United Nations says thousands of civilians, mostly ethnic Tamils, were killed in the final months of the conflict. Tens of thousands of other Tamils were placed in displacement camps.

EU Official Expects Euro Zone to Agree on $17 Bn Loan for Greece

Posted June 16th, 2011 at 11:05 am (UTC-5)
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A senior European Union official says he expects the 17-nation eurozone to provide debt-ridden Greece with another $17 billion to prevent a Greek debt default that could further destabilize global financial markets.

EU Economic Affairs Commissioner Olli Rehn said Thursday he is “confident” that eurozone finance ministers will agree to disburse the funds at a meeting that begins Sunday. The funds would represent the latest installment of a $160-billion bailout package offered to Greece last year by the European Union and International Monetary Fund.

Both organizations previously said the Greek parliament must approve further austerity measures this month before the loan can be disbursed. Greek Prime Minister George Papandreou has asked parliament to approve new tax hikes, spending cuts and state asset sales, but the measures have provoked outrage from many Greeks who say they have sacrificed enough.

Greece has warned that it may default on its debt unless it secures the $17-billion loan installment next month.

EU officials have been discussing the terms of a second bailout for Greece to keep the eurozone member's economy afloat in the longer term. But Rehn says no decision is expected on that issue until July at the earliest, due to disagreements about the role of the private sector in a new rescue package.

But Mr. Papandreou is facing growing dissent from Socialist lawmakers who called an emergency party meeting on Thursday to discuss his handling of the crisis. Two ruling party deputies also resigned in protest at the collapse of talks Wednesday with opposition conservatives on forming a unity government. The vacated seats will go to fellow Socialists and will not affect the ruling party's slim five-seat majority in the 300-member parliament.

Mr. Papandreou said Wednesday he plans to reshuffle his Cabinet to help push his austerity package through parliament. He announced the plan after the collapse of the unity government talks.

The Greek parliament is expected to hold a confidence vote within days of the new government being announced.

French President Nicolas Sarkozy said Thursday EU members must do everything necessary to help Greece and safeguard the stability of the euro.

IMF official Zhu Min said the lending agency is concerned about the situation in Greece and is ready to provide support. Zhu is a special adviser to the IMF managing director.

Tens of thousands of Greeks rallied Wednesday in Athens and Thessaloniki to oppose the government's new austerity plans. Some protesters in Athens tried to form a human chain around parliament to prevent debate on the program, but police set up barricades to allow lawmakers to enter the building.

The protest in Athens' Syntagma Square turned violent when riot police fired tear gas at demonstrators who threw stones and fire bombs. Authorities said dozens of people were injured and at least 16 protesters were arrested.

Major Greek labor unions also staged a general strike Wednesday, crippling the country's public transit, media and state-run hospitals.

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