SPECULATION: Banks fingered in rising food prices

The food market would be better off without the investment banks? Undoubtedly, "replied the British NGO World Development Movement (WDM) - the equivalent of Transparency International for all economic development issues - which on Tuesday released a new study of the impact of speculation on rising food prices whose level reached today than in 2008, during the riots. "Banks have depleted plunged into famine and millions of people in developing countries," says FRANCE 24's and Murray Worthy, head of WDM strategies.

Since the financial crisis, banks have certainly become easy targets, but figures provided by the NGOs are talking.British bank Barclays, for example, collected 383 million euros in 2010 by simply betting on rising food prices. "It's an estimate that we made from public figures from Barclays Capital [the investment bank Barclays, Ed] and data market," said Murray Worthy. Barclays declined to respond to these assertions.

This taste of the British bank for speculation in these markets has no equal in Europe. Only U.S. banks Goldman Sachs and Morgan Stanley are the strongest.Thus, according WDM, Goldman Sachs dominates this small world of speculators with a billion dollars (684 million) collected per year in these markets.

After the subprime

Speculation on food are certainly since the early 20th century, but has reached dangerous levels at the dawn of the 2008 food crisis. In 2003, she was indeed the order of $ 3 billion per year ... against 55 billion in 2008, said Olivier De Schutter, the UN special rapporteur for the right to food. "2011 should be another record year," warns Murray Worthy.The amount of speculative trading on commodity markets (food, energy, metals) is expected to reach $ 400 billion this year, against 300 billion in 2008, the UN says.

The appetite of investment banks for food grew after the collapse of the subprime bubble. "They have sought a new home which was not yet regulated in which to invest too quickly," Murray decrypts Worthy.They were then reminded that the U.S. had deregulated the marketing of foodstuffs in the early 2000s.

Bubble

Barclays Capital, Goldman Sachs and others have then imported and developed financial products that made the heyday of the U.S. housing market ... before driving to his loss. "These banks have transformed the property market is often vital for people in financial market," laments Murray Worthy. Barclays Capital has even created the equivalent of CDOs ("Collateralized Debt Obligation") for raw materials, these highly sophisticated financial products which have played an important role in the subprime crisis.They allowed players who have no connection with the purchase and sale of maize, wheat and other grains - such as pension funds - to invest their money in these markets, denounces World Development Movement.

The NGO acknowledges that speculation is only one element among many of soaring food prices. The OECD estimates that the weather conditions, the development of biofuels and the current instability of the Arab countries have a greater impact. But for WDM, speculation escape increasingly out of control. "The bubble is now grow very quickly," warns Murray Worthy.The NGO estimated that it would limit the amounts that banks can invest in the markets for food products and better frame the nature of transactions. Recommendations already made by the European Commission in 2008 ...

YEMEN: The ruling party accepts the plan to end the crisis in the Gulf monarchies

AFP - The ruling party in Yemen has accepted the plan to end the crisis presented by the Gulf monarchies to provide a starting within weeks of President Ali Abdallah Saleh, to whom the United States immediately asked to begin "immediately" political transition.

"The General People's Congress (GPC, in power) and its allies have accepted the initiative of the Gulf Cooperation Council (GCC) in its entirety," he told AFP Sultan al-Barakani, Deputy General Secretary of the GPC and Head of the parliamentary bloc of the party.

To overcome the crisis, the GCC has proposed forming a national unity government, then a transfer of powers by the Head of State in Vice-President and stop the demonstrations.

The President should then submit his resignation within 30 days, and a presidential election would take place 60 days later.

On Friday, Mr. Saleh, whose term runs until 2013, had said he welcomed the plan but reiterated that it would sell the power in an orderly and constitutional.

The United States, which have been implicated along with European countries in the negotiations for a settlement of the crisis, have pressed Mr.Saleh, their ally in the fight against terrorism, to begin "immediately" the political transition.

"President Saleh has publicly expressed its willingness to engage in peaceful political transition," assured Mark Toner, a spokesman for the U.S. State Department, adding that "the timing and form of this transition must be determined so concerted and start immediately. "

"All parties need to really participate, including young people, in a transparent process that addresses the legitimate concerns of the Yemeni people, their political and economic aspirations and their calls to bring to justice those who quickly suppress the demonstrations by the violence," Mark Toner yet assured.

The parliamentary opposition, the Common Front, agreed on Saturday plan to end the crisis in the Gulf Arab countries, apart from one point to provide for the formation of a unity government with the participation of Mr. Saleh .

"The initiative is positive and we accept it, except the formation of a unity government because we refuse to serve under the authority of Ali Abdullah Saleh and take oath before him", told AFP spokesman of the opposition, Mohammad Qahtani, before the announcement of the plan is accepted by the CPG.

He had urged Saleh to agree to cede power in a "30 days" as required in terms of the GCC monarchies, saying the opposition was ready to form a national unity cabinet with Vice- which Mr. PresidentSaleh has transferred its powers.

So far, the opposition demanded the immediate departure of Mr. Saleh, like committees of protesters surround the protesters. The latter, however, clearly reject the plan of the Gulf monarchies.

Strongly contested in the streets since January, Mr. Saleh faces a broad popular protest movement that organizes demonstrations almost daily to demand his immediate departure. The repression of this movement has done more than 130 deaths.

Saturday, calling for a general strike was well attended especially in the south.

OIL: Germany pinned to its economic ties with Iran

India can no longer buy Iranian oil via Germany. Berlin decided Tuesday to put an end to a troubled business relationship that provoked the ire of Israel and the United States.

Until now, the Bundesbank and the Europäisch-Iranische Handelsbank (EIHB), based in Hamburg, served as intermediaries between New Delhi and Tehran, was revealed late last week the economic daily Handelsblatt. India, which purchases $ 9 billion per year of petroleum to Iran, contributed money to the German central bank, which instructed EIHB then buy the black gold to Iran.India thus avoiding offending his American ally, with the complicity of Berlin.

Washington was quick to react to these revelations. Earlier this week, the U.S. government complained about the transaction with the German government. Target of his displeasure: EIHB, a company owned 52% by an Iranian national bank. The hotel has since 2010 on the U.S. blacklist of companies suspected of helping Iran to circumvent international sanctions.Israel has applied the prohibition to the Germans.

Berlin was in a PREM time dithered, saying EIHB acted legally in Germany and was subject to strict control of financial authorities. Finally, the government caved in and ordered Tuesday to its central bank to close the valve.

It seems, moreover, that this business has three bands are the result of bargaining between the German government and Iran. Germany has in fact given the green light for this operation in early February, just days after the release of two German journalists detained in Iran.

"The quality rather than quantity"

The case could hardly have come at a worse time for Angela Merkel.She had already been criticized for its reluctance to participate in military operations against Libya. But this deal also calls into the importance of economic relations between Germany and Iran.

Germany is the leading European trade partner of Iran and second in the world behind the United Arab Emirates. Its exports reached $ 3.8 billion in 2010, an increase of almost 5% compared to 2009.Between January and October of 2010, imports from Iran rose by 28%.

"But more than the quantity of exports is the quality of products delivered that matters," said FRANCE 24 Alfaraj Sami, president of the Center for Strategic Studies in Kuwait, specialized in the Gulf region. Most German companies involved in Iran are specialized in high technology products.

The German giant Siemens had thus contributed to the computer system of Iranian nuclear facilities. The group announced in 2009 that he was withdrawing from Iran. In total, 200 German companies were active in Iran in July 2009, according to a list compiled by the Board of Trade between Germany and Iran.Business relationships can be very bad as the German political scientist Matthias Küntzel which analyzed last year. He wondered what kind of service a company like Babcock Borsig Service GmbH, which specializes "in nuclear technology," may well provide Tehran.

In 2008, the spokesman of the National Iranian Petrochimicals company had welcomed the ease that he had "to find from other countries than the U.S. products which [he] needed." He cited four names of companies, three are German.

SYRIA: Al-Assad supported the former Minister of Agriculture to form a government

AFP - Syrian President Bashar al-Assad, was charged Sunday Agriculure outgoing Minister Adel Safar, to form a new government, announced the official SANA news agency while the regime is facing a wave of protest.

"President Bashar al-Assad issued a decree instructing Adel Safar to form the government," Sana reported.

Ba'ath Party member and 58 years old, Mr.Safar has studied agriculture at Damascus University before earning a doctorate in France.

From 1997 to 2000, he served as Dean of the Faculty of Agriculture in Damascus before becoming Minister of Agriculture in 2003.

The outgoing government of Mohammad Naji Otri, in office since 2003 did not survive the challenge in the country and resigned March 29, two weeks after the first demonstrations against the regime.

ITALY: Justice will request the immediate return of Berlusconi in court

AFP - The three judges, investigators of the case Wednesday Rubygate send their request for immediate judgments against the Italian prime minister Silvio Berlusconi said on Tuesday the chief prosecutor in Milan.

"This afternoon we will make a final meeting" to determine if the demand for immediate trial will focus on the two charges against Mr. Berlusconi or single, told the press Edmondo Bruti Liberati.

The Milan prosecutor's office has almost completed the investigation in which Mr.Berlusconi is suspected of engaging in prostitution of a minor and abuse of office, paid for the services of a young Moroccan called Ruby, and be acted as Chairman of the Board for her release last May.

According to judicial sources, prosecutors would head to a request for immediate judgments only for the crime of abuse of office.

Once the request is sent, the investigating judge who will have five days to decide whether or not the holding of a trial.

The trial is now an expedited Italian Penal Code which is based on a "clear" evidence and could lead to a trial before the summer cons M.Berlusconi.

The prosecution has claimed to have "evidence" on the organization of unbridled celebrations in the homes of Cavaliere, where young women are prostitutes in exchange for money and free housing.

For the part of the investigation into the prostitution of minors, judges may follow the normal procedure which provides a preliminary hearing and a trial.

On Saturday, tens of thousands of people gathered in Milan, Umberto Eco, whose writers and Roberto Saviano, demanding the resignation of Berlusconi and his protest against "outrages upon personal dignity of women."

CYCLING: Alberto Contador is appealing his suspension for doping

AFP - The cyclist Alberto Contador said Friday he had "never doped" and would "appeal" and fight to the end to prove his innocence at his first press conference after announcement of his suspension for one year.

"I'm going to appeal, where it will be necessary to defend my innocence to the end," Contador said at a news conference in Puigpunyent, near Palma de Mallorca (Balearic Islands, Spain).

"During these ten days I'll work up with my lawyers to see justice done," said Tour de France 2010.

"I never doped myself, I am an example of cleanliness," he said.

Contador, 28, underwent 21 July 2010 in Pau, at a rest day of the Tour de France, a positive drug test that revealed trace amounts of clenbuterol, a product that stimulates lung function and also has anabolic effects.

The three-time winner of the Tour de France has always defended by claiming to have been a victim of food contamination.

He faces a one-year suspension, sanction proposed by the Spanish Cycling Federation, and the loss of his Tour victory in 2010.

The final sanction, subject to appeal before the Court of Arbitration for Sport (CAS) is to be known until mid-February.

Hu Jintao to the U.S. to resolve differences between the two countries

The White House will deploy, on Wednesday, an arsenal of prestige for ceremonial welcome for four days with Chinese President Hu Jintao arrived in Washington the day before. This is the first visit by a Chinese head of state in the U.S. for thirteen years. Despite U.S. efforts (arrival ceremony, meets in the Oval Office with Barack Obama, news conference before a sumptuous dinner), this meeting between two giants of the global economy looks tense.

And for good reason, Washington and Beijing will try to resolve their deep differences after a complicated year 2010.Whether the economic and monetary policy, foreign policy or record of human rights, the two countries disagree on many issues.

Monetary policy at the heart of discussions

On Wednesday, it is the economic and trade issues to be addressed by both leaders. The main demand for U.S. monetary policy in China. According to Washington, the undervaluation of the yuan, Chinese currency, lead the U.S. trade deficit with regard to Beijing (270 billion). The U.S. Treasury Secretary Timothy Geithner reiterated last week his wish to see the yuan appreciate more. For the Chinese, the yuan revaluation will take time.Especially as the weakness of their currency is the backbone of the country's growth based on export capacity.

This question is at the heart of discussions between Barack Obama and Hu Jintao on Wednesday in Washington."These two countries, one still dominant and the other emerging, maintain such an economic interdependence, trade and finance that it is normal to see their relations tense as everyone's interests," said Francoise Lemoine, Senior Economist Centre for Future Studies and International Information (CEPII).

She says an economic compromise is possible between the two parties, because "the Chinese market represents a challenge as the Americans have every incentive to insist on the opening of the market economy in the world." Indeed, Obama's priority is economic.This visit should lead to the signing of a series of contracts, a quarantine, with U.S. companies like Boeing and General Electric. "The White House wants to highlight opportunities for U.S. companies and their exports to China will be positive for employment in the country," said William Meyer, Washington correspondent for FRANCE 24.

Human rights and diplomacy

Besides the monetary and economic policy, the two leaders must address their many disagreements that have plagued their diplomatic relations.Up for discussion arms sales to Taiwan, the visit of the Dalai Lama and Nobel Peace Liu Xiaobo.

The spokesman for the White House, Robert Gibbs, said Obama would talk "directly to his concerns on the issue of human rights" during his state dinner with the Chinese president Wednesday night. U.S. President knows awaited on this issue. In 2009, he postponed a scheduled appointment at the White House with the Dalai Lama, the Tibetan spiritual leader, not to upset Beijing.

Finally, the United States want their host to pressure the North Korean authorities in Pyongyang's nuclear issue and escalating tension with South Korea.