Chinese economy receives a package of stimulus program

China is about to infuse a multi-billion dollar financial package in order to maintain growth and insulate its economy against global slowdown. Among the top priorities are building of new roads, airports and hydropower stations, subsidizing purchases (on energy saving products) and reviving cash-for-clunkers programs (to boost up sales in the automobile sector). The fresh boost of investment is estimated to be around $150 billion or more.

China's economic stimulus program has barely received any formal acknowledgement; although, Chinese premier has agreed “new emphasis on growth.” The Prime Minister of China has also stressed on the importance to develop strategic emerging sectors, particularly when the economy is feeling downward pressure.

It is reported that China has sanctioned 868 new projects in the first four months of this year, followed by another 100 projects in the month of May alone. This is a remarkable shift from recession hit economies as both the investment and the consumption incentives are totally backed by the state. As of now, Chinese planners are treading cautiously, watching the impact of economic stimulus on Chinese economy.

Syrian diplomats get marching order over Houla massacre

In a united move, as many as 12 western nations including the United States have taken the decision to expel Syrian diplomats from their countries. This is in response to the Houla massacre last week that left over hundred villagers dead in Syria. The victims of the attack were mostly women and children. Shabiha militia, paramilitary group of Bashar Al-Assad government are thought to be behind the gruesome attack.

The gruesome killing which continued for two days, Friday and Saturday, at the Taldu village in Syria has drawn International attention as images of mutilated bodies of children circulated. Even long time ally, Russia, has condemned the killings of civilians and has called for independent investigation under the supervision of United Nations in Syria. Germany, Italy, France, Britain, Spain, Canada and the United States are some of the western countries that have decided to close out Syrian diplomats.

President Bashar Al-Assad of Syria blamed outsiders for the bloodshed, while Kofi Annan, the United Nations-Arab League envoy put the onus on the Syrian President to end the bloodshed and follow the peace plan.

While Britain has given three Syrian diplomats a week’s notice to pack off to Syria, the United States has given Syrian diplomat, Zouheir Jabbour, 72 hours.

It is of the general opinion that without armed intervention, diplomatic pressure and tough talk would make little headway with the Assad government. However, the White House has ruled out military action as it may lead to more violence and killings.

Day second Presidential poll begins in Egypt

The Presidential poll in Egypt enters its second day as the country gears up to choose their first ever democratically elected President. Voting is expected to start at 8 AM (local time). For ordinary Egyptians, the two days of voting is a life-changing moment as they get to choose their own civilian President (through voting) for the first time in the country’s history. The current military council has assured of a fair election and a civilian government.

In the two days of first and free presidential election, fifty million eligible voters would decide their favorite candidate out of 12. Running among the top are Md. Mursi (Muslim Brotherhood-led Freedom and Justice Party), Ahmad Shafiq (briefly held the post of Prime Minister during Mubarak regime in Feb 2011), Amr Moussa (Arab League) and Abdul Moneim Aboul Fotouh (independent Islamist).

Preliminary results are expected to come in on Sunday. In case President is not selected, a run-off vote is going to be held on 16 and 17 June.

The last 15 months of post-Hosni Mubarak era has been marked by violent protests and power struggle. This has cast a major blow to FDI (foreign direct investment). Tourism, one of the major sources of income, has also reduced to one-third. Egypt’s President-to-be has a major challenge ahead to live up to people's expectations.

Suicide bomblast snuffed out 90 young Yemeni soldiers

A suicide bomber believed to be in military uniform blew himself off on Monday in the capital Saana killing nearly 90 soldiers and injuring 300. The soldiers were rehearsing for Tuesday’s National Unity Day celebration in Al-Sabeen square near the presidential palace. One of the Al-Qaida arms in Yemen has reportedly claimed responsibility for the attack. The injured soldiers have been admitted to hospitals. There is no report of civilian casualty.

It is believed that Yemen’s Defence Minister, Major General Md. Naseer Ahmed, was the target of the attack. He was at the site when the bomb blast took place; fortunately, he left unharmed.  It is not yet known whether the parade would take place as scheduled.

Security has been beefed up all over Yemen following attack. Newly-elected Yemeni President, Abd Rabbo Hadi Mansour, has assured tougher actions against terrorists. The United Nations Security Council (UNSC) has also condemned the attack and has vowed to clamp down on “all forms of terrorism”.

It is to be noted that since coming to power in February, President Hadi has been trying to clean up his country. The army has launched several offensives in order to root out militant groups, especially from the lawless southern and eastern provinces.

G8 Summit ended with pledge to support growth and Greece

The four day G8 Summit closed out at Camp Davis on Saturday with world leaders coming down in support of growth and saving Greece from the current financial crisis. At the same time, the leaders of the world put the onus on their European counterparts to deal with the financial turmoil before it starts hurting the rest of the world economy.

British PM David Cameron called for “decisive action” and “contingency plan” to combat and tackle the eurozone crisis. He also delicately prodded that the European Central Bank (ECB) should consider printing notes to revive demand in the single currency block.

US President Barack Obama, the host of the Camp Davis Summit, called upon the leaders of France, Germany and Italy to resolve the crisis through restoring public finances and encouraging stimulus. Keeping an eye on his re-election chances, President Obama proposed “stimulus” for job-creating infrastructures, and balancing it with “reforms” in order to address debts and deficits.

Lastly, in order to address the political and economic upheaval in Greece, the leaders of the G8 nations also reaffirmed their interest in keeping Greece within the euro zone. Though, they didn’t propose any solution to tackle the turmoil in Greece.

Obama joins French President Hollande to back growth

While welcoming G8 leaders at Camp Davis on Friday, President Obama has hoped that the world leaders would find a solution to eurozone crisis that would be a pragmatic mix of “fiscal consolidation” and “strong growth agenda”. He also stressed upon the importance of Europe and its strong hold on American economy and the need to put Europe back on the growth path. With Europe already bracing for possible Greek exit, Obama’s take on “growth” is expected to divide the house into two and set the ball rolling for more heated debates.

It seems that French President Francois Hollande’s pro-growth policies have found an echo in his American counterpart, Barack Obama. In aligning with growth, Obama is believed to have distanced himself from Angela Merkel-backed austerity program.

Obama’s view reflects the growing fear of eurozone financial crisis and its cascading effects on other parts of the world. This has the potential to hurt the slowly recovering US economy also Obama’s re-election chance. It is believed that  the four day Camp David summit would be the ultimate testing ground for international diplomats not only to iron out their differences, but also to find a viable solution to euro zone crisis that has threatened to plague the entire financial world.

IMF Chief Lagarde cautions against Greek exit fallout

Following Greek President Carolos Papoulias's decision to nominate a judge as the head of the interim government, the chief of International Monetary Fund (IMF) until the upcoming election, Christine Lagarde, called on prominent Greek leaders to show their commitment to stay with the euro zone on Wednesday. She stressed on the importance of sticking to the bailout agreement – not just for Greece’s own financial and political security but also for the entire euro zone. She also pointed out the possible consequences of such exit – which would be “hard and expensive, and not just for Greece”. Greece is set for a repeat general election on June 17.

What is adding to the fear and speculation in Europe is the rising popularity of political parties in Greece who are against European Union-IMF bailout deal. In the event that an anti-bailout party comes to power following the election, there is a chance that the bail-out deal might come apart and Greece would exit from euro zone.  There is also a fear of its cascading effect on other bigger but vulnerable economies in Europe, especially Spain and Italy.

Top EU officials have already warned Greece that complying with the terms of the bailout package is mandatory in order to receive international monetary aid.

Greece seeks re-election as coalition talks turn unproductive

The latest coalition talk in Athens ended without success as President Carolos Papoulias failed to persuade front-line political leaders to back technocrat government. The idea of technocrat government was proposed by the President himself after mainstream political parties in Greece failed to come up with a unity government. For Greece, this means it has to brace for repeat general election, which is going to further drain its economy, or face bankruptcy.

The Evangelos Venizelos-led Socialist Pasok party blamed the negative outcome of the meeting on arrogant, petty party politics and opportunism. On the other hand, the leader of the Syriza party, Alexis Tsipras, emboldened by his party’s success in the latest general election, stated on a high note that he resisted any move to support the pro-bailout deal in every possible way he could.

Earlier, eurozone leaders, gathered for financial ministers’ meeting in Brussels, have rubbished Greece’s exit from euro as propaganda. However, they have acknowledged preparing contingency plans. The EU leaders have clearly stressed that unless Athens fully agrees with the bailout reform plan, they are not going to receive International monetary aid.

President Papoulias puts forward technocrat government for Greece

In a desperate bid to end the week-long political impasse and make sure that Greece does not lose out on International bailout package, President Carolos Papoulias has suggested the formation of a government of technocrats on Monday. The idea was floated before the leaders of Greece’s three main political parties – the Socialist Pasok, the radical left Syriza and the Conservative New Democracy party, as they failed to form a unity government.

The proposal, though, brought forth a lukewarm response across front-line political leaders, a meeting has been scheduled for Tuesday afternoon (2 PM local time) to chew on it.

While the New Democracy leader Antonis Samaras gave his assurance to help build a government, the chief of Democratic left, Fotis Kouvelis, is totally against the idea of a technocrat government. The chief of Pasok party, Evangelos Venizelos, has termed the Tuesday’s meeting as the last attempt to save Greece “out of a dead end.” On the other hand, although  Syriza party chief Alexis Tsipras is set to attend Tuesday’s meeting, his party has made it abundantly clear that they would not support any move to back austerity. Buzz is that, the 37-year-old dashing Syriza leader wants Greece to either pull out of the bailout agreement altogether or renegotiate the deal.

Hopes dashed as Greece failed to form unity government

Despite President Carolos Papoulias’ repeated attempts to save Greece from further chaos, the front-line party heads have failed to form coalition government. This has happened as a result of the failure of the political parties to reach a consensus on the controversial Greece bail-out deal.

The meeting held at the Presidential mansion on Sunday was attended by three of the most prominent Greek leaders. They were the conservative leader Antonis Samaras, the extreme leftist Syriza chief Alexis Tsipras and the socialist Pasok leader Evangelos Venizelos.

The talk which was aimed at ironing out differences between major political parties on fiscal pact, soon reached an impasse as leaders started blaming each other on the highly controversial bailout agreement and stiff spending cuts. While, the 37-year old Alexis Tsipras riding high on ‘anti-austerity wave’ clearly and completely rejected any negotiations with pro-bailout leaders, Conservative leader Antonis Samaras accused Tsipras for the current standoff. It has also been reported that Tsipras has given the assurance of pulling out of the bail-out deal without giving up Euro.

As per the latest news, the President of Greece is expected to hold another round of fresh talks with the political parties on Monday. Though only a slim chance remains, but if Greece succeeds to form a new government before the Thursday deadline, it might be able to avoid a repeat election and, perhaps, stay in the euro zone.

Greece fiscal crisis deepens amidst growing political chaos

Greece crisis has, perhaps, reached its highest peak as Alexis Tsipras, the newly elected head of the Syriza party (radical left), picked ‘growth’ over ‘austerity’ and ruled out coalition with the two main parties that suffered heavy defeat on Sunday’s election for adopting tight fiscal control. These two are the Socialists party and the conservative New Democracy party. This has prompted EU to mount pressure on Greece – either follow the bail-out terms or face expulsion from the exclusive circle of Eurozone. As the possibility of total economic collapse is intensifying in Greece, there is a growing fear that this would have a snow-balling effect on other debt-hit economies in the Eurozone, further endangering the ‘Euro.'

On Tuesday, the newly elected Syriza party leader, Alexis Tsipras, has asked for temporary stopping on the repayment of Greece debt. He has also expressed his desire to do away with austerity measures that are drawing criticism for the country’s economic collapse.

Germany is the biggest contributor of financial aid to Athens and has ruled out any scope for renegotiation. Germany has stated that for aid to flow, conditions of the bail out have to be met by Athens. As of now, a bill proposing a new spending cut is expected to go before the parliament next month. In exchange, Greece would receive international aid amounting to €11.5 billion in installment; otherwise, it faces default on its staggering €200 billion total debt.

Violence marred Egypt before Presidential Election

Deadly violence erupted as unidentified mob armed with handmade explosives and guns attacked a peaceful demonstration outside the Defense Ministry in Cairo early Wednesday. At least 11 are reported to be dead and not less than 100 sustained injuries of various levels. The Presidential election in Egypt is set to begin on May 23.

The protesters were staging a demonstration against Egypt’s military government for barring a popular Islamic candidate, Hazem Abu Ismail, from running for President. An ex-lawyer cum current preacher, Abu Ismail’s candidature is said to be disqualified on the ground that his mother held American passport, which Ismail has denied. Egypt's electoral law requires Presidential candidates as well as their parents and spouses to hold only Egyptian citizen.

What appalled people the most on Wednesday’s attack was the role of Egyptian military. It is claimed that lives could have been saved if there had been prompt military intervention. Later, the tense atmosphere prompted several candidates to call off their election campaign. Though the situation came under control by noon, Wednesday’s violence is said to be the latest attempt by the military to cling on to power by delaying the transition of power to civilian government.

Veteran Norwegian reaches Syria as head of UN observer

As the UN-brokered peace deal not able to contain violence in Syria, and the relation between Syria and UN touching almost an all-time low, the arrival of Major General Robert Mood as the Chief UN observer in Damascus on Sunday couldn’t have been at a more difficult time. As the Chief UN observer, Major General Robert Mood understands the complexity of the task he has on hand. He is confident that his 300-unarmed observers would carry out their role and “make a difference” in Syria. He would be helped immediately by 30 ground observers. The number is expected to double in the coming week and the rest would join in a phased manner.

The city of Homs, which has borne the worst of the violence since the beginning of uprising, reported less violence on Sunday. Rebel forces have attributed this to the arrival of UN observers in Syria.  However, there were reports of gunfire and explosions in Damascus. The Central Bank building in the capital was hit by a grenade attack on Sunday and shown some damage.

Authorities in Damascus have claimed death of 2600 security personnel at the hands of rebel forces since the beginning of Syria uprising. A day before, Damascus has criticized the United Nations Chief Ban Ki-Moon for not telling the true picture and for turning a blind eye to Syria’s problems. On the other hand, the Bashaar-Al-Asaad government have been accused of killing 9000 people by the United Nations.

Syria bound arms ship held in Lebanon

A Syria-bound ship, Lutfallah II, carrying a huge consignment of weapons has been intercepted by the Lebanese army in north Lebanon on Friday. The weapons, that range from heavy, medium to light arms and ammunitions, were found to be loaded in three separate containers on the ship. It is hinted that the consignment of goods was meant for Syrian rebels who are fighting a bloody battle against the militia in order to uproot the Bashar-Al-Asaad regime.

Lutfallah II reportedly started its voyage from Libya, then via the Egyptian port of Alexandria it reached the Tripoli port in north Lebanon, where it was supposed to unload, but instead detained. At the moment, both the ship and its crew members are reported to be in Selaata port of Lebanon for detailed investigation.

In the recent years, Tripoli in Lebanon has turned into a strong support base for the Syrian rebels. Damascus authorities have reportedly complained about their land (Tripoli) being used by the Syrian rebels for smuggling weapons into Syria.

The owner of the ship, who is a Syrian citizen, denied any knowledge of weapons being transported this way other than it was for general cargo. He claimed to be under the impression that his ship was carrying engine oil. On further probe, it was found out that the original order was for 12 containers of consignments, but after a delay of three days it came down to only three containers.

Osama Bin Laden family packed off to Saudi Arabia

After days of house arrest in Islamabad, the family of slain Al-Qaeda chief Osama bin Laden is all set to fly off to Saudi Arabia, the country of their choice, Friday early morning. The chartered plane from Saudi Arabia meant to carry the family of the infamous leader is reportedly has onboard Saudi officials of foreign ministry level to personally receive them. Among the deportees are Bin Laden’s three wives; two Saudi nationals and one Yemeni, eight children and a grandchild. The plane is expected to leave for Jeddah any time as soon as the documentation formalities are over.

A Bin Laden family counsel in Pakistan has confirmed receiving of NOCs (no objection certificates) issued both by the Pakistan foreign ministry and the interior ministry. However, the conditions on which the 14-member deportees (of Bin laden family) were issued NOCs are not known. Although the ministry of interior in Pakistan has confirmed that they are being deported as per the court orders.

Earlier, the wives of Osama Bin Laden and two daughters were prosecuted and subjected to 45 days of detention on charges of trespassing and residing in Pakistan. The Bin Laden family have completed the sentence on Tuesday.

UN Secretary General set to visit Myanmar

Ban ki-moon, the secretary general of United Nations, is scheduled for an official visit to Myanmar at the end of this week. He would be in Myanmar at the invitation of President Thein Sein to attend the swearing-in ceremony of Aung San Sui Kyi as the opposition leader. This would be his third visit to the country which has seen sweeping victory of the pro-democracy leader Aung San Sui Kyi in the recently concluded by-elections. His last two visits were in 2008 and 2009. Ban ki-Moon is expected to reach Myanmar capital Yangon on Sunday and stay there for a few days.

As the United Nations chief, Ban is hopeful of Myanmar’s transition to democracy and has assured full cooperation from the UN. Ban has also welcomed the move taken by the United States and European Union to lift sanctions against the country. In fact, the European Union has already declared that it would lift most of the sanctions against Myanmar.

While the nation is awaiting the swearing-in ceremony of Aung San Sui Kyi, a disagreement has erupted between Sui Kyi’s National League for Democracy and the ruling party over wording of the oath that she and her party (elected) members are going to take. This has postponed the much-awaited event. However, Ban is hopeful that the leaders would iron out the difference and soon begin to work together for nation building.

Hope soars as UN peace plan unlocks Syria deadlock

In a major turnaround on Tuesday, President Bashar-Al-Assad of Syria has given his acquiescence to the six-point peace plan proposed by Kofi Annan, the UN Secretary-General. By agreeing to the peace proposal, President Assad is now formally bounded to end the deadly violence that has been continuing since the early days of Syria uprising. However, diplomatic circles conceded that they are doubtful about the level of commitment and sincerity Al Assad would show towards the peace plan.

In a statement issued in Geneva, it has been confirmed that the Syrian ministry has expressed their desire to accept the UN peace proposal in a letter addressed to the UN-Arab League Joint Special Envoy, Kofi Annan. The acting peace Envoy to Syria, Kofi Annan, is stated to have welcomed the development as an “important initial step.” He is also hopeful that it should end the relentless violence and bloodshed and create an atmosphere for political dialogue to begin in Syria and fulfill the rightful aspirations of all Syrians. Annan has, however, cautioned that the road to peace in Syria depends on the successful implementation of the UN peace proposal.

Political opponents as well as anti-government activists in Syria are rather skeptical and feel that it is the latest ploy by the Syrian government to buy some more time to stay in power. Some pointed out that Kofi Annan’s peace plan is incomplete and does not address key issues. Such as, call for Assad to step down nor does it charge the current regime with International Criminal Court proceedings.

World leaders use Seoul nuclear summit to warn North Korea

In the ongoing nuclear summit in Seoul (South Korea), the plan to launch a rock-powered satellite by North Korea has reportedly dominated all other discussions, despite not being on the agenda list. Leaders from 50 different nations, including the United States, Russia and such others have assembled together to discuss how to make the world safe from nuclear terrorism. It is also being said that the world leaders are choosing the summit platform to bore on the North Korean leadership to abandon its rocket launching plan next month (mid-April) or face consequence.

The North Korean leadership has said that they intend to launch a weather satellite as part of their ‘peaceful space program’. However, the nations opposing North Korea hold a different opinion. They believe that North Korea is going for a test missile launch.

In his opening speech in the nuclear summit, the Prime Minister of Japan, Yoshihiko Noda, has urged North Korea to exercise self-restraint. Pointing out further, he stated that North Korea’s nuclear aspirations would undermine the efforts of international community to ensure a safer world through nuclear disarmament.

On Monday, the United States President, Barak Obama, has clearly stated that Pyongyang’s pursuit for nuclear power would not ensure the security that it seeks. Rather, it would endanger North Korea and make it totally isolated from the rest of the world. In fact, Obama minced no words saying that if North Korea chooses to go with its plan, any potential threat would be met jointly by the United States and China. Chinese leadership has expressed “serious concerns” about the latest development.

Earlier in the day, President Obama along with his South Korean counterpart Lee Myung-bak have cautioned Pyongyang that it would face further economic sanctions if it does not abandon its launch plans. South Korea has also warned that it would closely track its (missile’s) trajectory and would not hesitate to shoot it down if found within the South Korean territory.

Around two months ago, North Korea have requested food assistance from the United States in exchange for suspending its nuclear program. But it seems to have retreated its stand. Currently, North Korea is in acute food shortage.

Annan’s peace mission in Syria finds Russian support

The UN-Arab League special ambassador Kofi Annan had a high level meeting with Russian President Dmitry Medvedev on Sunday about Syria. Annan is currently on an official tour to Russia and China to ramp up support for restoration of peace in Syria. While extending his full support, the Russian President acknowledged that Kofi Annan could be President Bashar-Al-Assad’s last chance to avoid a violent civil war and restore peace in the country. Kofi Annan would round off the tour with China.

To end the relentless fighting since the beginning of Syria uprising last year, Annan is trying to build consensus for immediate cease fire and unfettered entry for humanitarian aid in Syria. While President Barak Obama of the United States and Turkish PM are chewing over sending medical and communications equipments, termed as non-lethal aid, to anti-government activists in Syria, it is not yet determined the nature of Moscow’s participation in Annan’s peace mission.

Despite the latest diplomatic efforts, cities of Homs and Idlib are continued to be bombarded by Syrian forces, as claimed by Syrian opposition. Unconfirmed sources have claimed 30 deaths from all across Syria on Sunday, particularly from Homs and Idlib. While some towns like Hirak and Daraa are facing acute food shortage, others are believed to be pounded by military aircraft.

The first family of Syria faces fresh EU sanctions

In a bid to end the relentless violence in Syria, The European Union (EU) has slapped a fresh sanction on the close family members of President Bashar-Al-Assad on Friday. The ban list which already includes the President and senior officials has now his British wife, Asma Assad, and 11 other family members on it. The latest EU sanction not only forbids them to travel to any EU nations, but has also frozen their assets throughout the 27 nation block. However, this does not restrict the London-born Asma Assad, an ex-banker and a style icon, from visiting her native country, i.e. Britain.

To break the unending crackdown on people in Syria and tighten fund availability before the regime, EU has slapped Syrian currency ban last year November. Right now, as many as 150 Syrian companies and individuals are facing EU-imposed asset freeze and visa ban. Besides European Union, countries like the United States, the Arab League, Japan and such others have already sanctioned against Syria.

In spite of ongoing efforts globally to address the Syria unrest, violence is going on uninterrupted in Syria. Not less than 54 Syrians are believed to be dead on Friday. It is being claimed that heavy security forces deployed in Damascus are firing live ammunition and tear gas on people.

As many as 9000 refugees have received blankets, mattresses and food from the International Red Cross. The UN-Arab League special ambassador, Kofi Annan, is scheduled for an official visit to Beijing and Moscow this weekend to discuss on Syria crisis.