Hackers have repeatedly penetrated the computer network of the company that runs the Nasdaq Stock Market during the past year, and federal investigators are trying to identify the perpetrators and their purpose, according to people familiar with the matter.
The exchange's trading platform—the part of the system that executes trades—wasn't compromised, these people said. However, it couldn't be determined which other parts of Nasdaq's computer network were accessed.
Investigators are considering a range of possible motives, including unlawful financial gain, theft of trade secrets and a national-security threat designed to damage the exchange.
The Nasdaq situation has set off alarms within the government because of the exchange's critical role, which officials put right up with power companies and air-traffic-control operations, all part of the nation's basic infrastructure. Other infrastructure components have been compromised in the past, including a case in which hackers planted potentially disruptive software programs in the U.S. electrical grid, according to current and former national-security officials.
"So far, [the perpetrators] appear to have just been looking around," said one person involved in the Nasdaq matter. Another person familiar with the case said the incidents were, for a computer network, the equivalent of someone sneaking into a house and walking around but—apparently, so far—not taking or tampering with anything.
A spokesman for Nasdaq declined to comment.
A probe into the matter was initiated by the Secret Service and now includes the Federal Bureau of Investigation.
The mystery surrounding the hackers and their motives is worrying investigators, who remain unsure whether they have been able to plug all potential security gaps—especially since invaders typically seek new ways to breach systems.
The case involving New York-based Nasdaq OMX Group Inc. is part of what cyber-crime authorities see as a broader problem of hackers nosing around corporate computer networks, with varying degrees of success.
U.S. companies are a continual target, and sometimes their public websites are vandalized. It is rarer for perpetrators to penetrate internal systems. Such breaches rarely come to light because companies fear that acknowledging them would alarm customers or encourage copycats.
Tom Kellermann, a former computer security official at the World Bank who now works at a firm called Core Security Technologies, said the most advanced hackers in the world are increasingly targeting financial institutions, particularly those involved in trading.
"Many sophisticated hackers don't immediately try to monetize the situation; they oftentimes do what's called local information gathering, almost like collecting intelligence, to ascertain what would be the best way in the long term to monetize their presence,'' he said.
People familiar with the Nasdaq matter said the Secret Service first began investigating last year. Investigators have informed White House officials of the case, according to the people familiar with the situation, who said that such a move is typical in hacking investigations, particularly in the early stages of the probes.
Authorities haven't yet been able to follow the trail to any specific individual or country. Those familiar with the case said that some evidence points toward Russia, but the person or people responsible could be almost anywhere, perhaps using computers in Russia merely as a conduit.
The case poses two concerns for authorities: preserving the stability and reliability of computerized trading, and ensuring that investors have full faith in that system.
Stock exchanges know they are frequently targets for hackers.
"We take any potential threat seriously and we are continually working to ensure that our systems operate at the highest levels of security and integrity," said Ray Pellecchia, a spokesman for NYSE Euronext, which operates the New York Stock Exchange.
He declined to discuss any specific instances of computer-hacking attempts against that exchange.
In 1999, hackers vandalized Nasdaq's publicly accessible website. In that incident, a group of hackers quickly claimed responsibility for defacing the site, as well as major media websites. Nasdaq officials at that time said the company's internal network wasn't affected.
Computer hacking is a problem for many countries. In recent years, U.S. authorities have dealt with cyberattacks linked to computers in Russia, China and Eastern Europe.
Hackers can use geography as a foil. Prosecutors said Albert Gonzalez, perhaps the most renowned hacker, perpetrated his biggest theft with help from computers in Eastern Europe even though he lived in Miami.
According to a 2009 federal indictment, he used computers located in the U.S., Latvia and Estonia, in a conspiracy that netted more than 100 million stolen credit-card numbers.
The case is considered the largest hacking crime in U.S. history. Mr. Gonzalez eventually pleaded guilty and was sentenced to 20 years in prison.
Sunday, February 6, 2011
US removes Isro, DRDO from export control list
Washington: The US has removed nine Indian space and defense related companies including those from Isro and DRDO from its export control ‘Entity List’ in an attempt to expand high technology trade and strategic cooperation with India.
The US decision meets a long pending Indian demand and is the first step to implement the export control policy initiative announced by US President Barack Obama and Prime Minister Manmohan Singh on 8 November last year after their summit talks in New Delhi.
The federal notification issued in the Federal registry came days ahead of the high-profile visit of commerce secretary Gary Locke to New Delhi on 6 February. Locke is leading a high-tech trade mission comprising 24 businesses persons that will also visit Bangalore and Mumbai.
“Today’s action marks a significant milestone in reinforcing the US-India strategic partnership and moving forward with export control reforms that will facilitate high technology trade and cooperation,” Locke said after the notification was issued.
The nine entities are Bharat Dynamics Ltd (BDL), four remaining subsidiaries of the Defense Research and Development Organization (DRDO) in the US sanction list and another four of the Indian Space Research Organization (Isro).
The DRDO subsidiaries are Armament Research and Development Establishment (ARDE), Defense Research and Development Lab (DRDL), Missile Research and Development Complex and Solid State Physics Laboratory
Liquid Propulsion Systems Center, Solid Propellant Space Booster Plant (SPROB), Sriharikota Space Center (SHAR), and Vikram Sarabhai Space Center (VSSC) are the four Isro subsidiaries.
Removal from the ‘Entity List’ eliminates a license requirement specific to the companies, and results in the companies off the list being treated the same way as any other destination in India for export licensing purposes, the commerce department said in a statement.
The notification removes India from several country groups in the Export Administration Regulations (EAR) resulting in the removal of export license requirements that were tied to India’s placement in those country groups.
It further adds India to a country group in the EAR that consists of members of the Missile Technology Control Regime, to recognize and communicate India’s adherence to the regime, the US-India strategic partnership, and India’s global non-proliferation standing.
“These changes reaffirm the US commitment to work with India on our mutual goal of strengthening the global non-proliferation framework,” said under secretary of commerce Eric L Hirschhorn.
Obama during his India visit had assured India that he would remove these companies from the ‘Entity List’.
Obama had said that commensurate with India’s non-proliferation record and commitment to abide by multilateral export control standards the US will remove all civil space and defense-related entities from the Department of Commerce ‘Entity List’.
“Inclusion on this list generally triggers an export license requirement for items that otherwise do not require an export license,” said a fact sheet issued by the White House during the Obama visit.
The Locke delegation that will visit India includes senior officials from the Export-Import Bank (EX-IM) and the Trade Development Agency (TDA).
The US decision meets a long pending Indian demand and is the first step to implement the export control policy initiative announced by US President Barack Obama and Prime Minister Manmohan Singh on 8 November last year after their summit talks in New Delhi.
The federal notification issued in the Federal registry came days ahead of the high-profile visit of commerce secretary Gary Locke to New Delhi on 6 February. Locke is leading a high-tech trade mission comprising 24 businesses persons that will also visit Bangalore and Mumbai.
“Today’s action marks a significant milestone in reinforcing the US-India strategic partnership and moving forward with export control reforms that will facilitate high technology trade and cooperation,” Locke said after the notification was issued.
The nine entities are Bharat Dynamics Ltd (BDL), four remaining subsidiaries of the Defense Research and Development Organization (DRDO) in the US sanction list and another four of the Indian Space Research Organization (Isro).
The DRDO subsidiaries are Armament Research and Development Establishment (ARDE), Defense Research and Development Lab (DRDL), Missile Research and Development Complex and Solid State Physics Laboratory
Liquid Propulsion Systems Center, Solid Propellant Space Booster Plant (SPROB), Sriharikota Space Center (SHAR), and Vikram Sarabhai Space Center (VSSC) are the four Isro subsidiaries.
Removal from the ‘Entity List’ eliminates a license requirement specific to the companies, and results in the companies off the list being treated the same way as any other destination in India for export licensing purposes, the commerce department said in a statement.
The notification removes India from several country groups in the Export Administration Regulations (EAR) resulting in the removal of export license requirements that were tied to India’s placement in those country groups.
It further adds India to a country group in the EAR that consists of members of the Missile Technology Control Regime, to recognize and communicate India’s adherence to the regime, the US-India strategic partnership, and India’s global non-proliferation standing.
“These changes reaffirm the US commitment to work with India on our mutual goal of strengthening the global non-proliferation framework,” said under secretary of commerce Eric L Hirschhorn.
Obama during his India visit had assured India that he would remove these companies from the ‘Entity List’.
Obama had said that commensurate with India’s non-proliferation record and commitment to abide by multilateral export control standards the US will remove all civil space and defense-related entities from the Department of Commerce ‘Entity List’.
“Inclusion on this list generally triggers an export license requirement for items that otherwise do not require an export license,” said a fact sheet issued by the White House during the Obama visit.
The Locke delegation that will visit India includes senior officials from the Export-Import Bank (EX-IM) and the Trade Development Agency (TDA).
Egypt army separates protesters in Cairo
Cairo/ Paris: Egyptian soldiers separated supporters and opponents of President Hosni Mubarak in central Cairo on Thursday, deploying infantry to create a buffer zone in an attempt to halt violence between them.
It was the first time the army was seen to act decisively to try to halt the violence, in which six people have been killed and 836 wounded, according to the health minister.
Supporters of President Hosni Mubarak opened fire on protesters in Cairo’s Tahrir Square on Thursday, killing at least five, in a fresh spike in violence over an unprecedented challenge to his 30-year-old rule.
The opposition responded by renewing demands that he quit.
Thousands of dissidents barricaded themselves into the central Cairo square, vowing to remain until Mubarak goes.
The Muslim Brotherhood, a formally banned mass movement seen as the best organised opposition, issued a statement calling for a national unity government to replace Mubarak. The Islamist group, whose potential rise to power troubles Egypt’s Western allies, has so far taken a backseat in the protest movement.
In a statement on Al Jazeera, the Brotherhood said: “We demand that this regime is overthrown and we demand the formation of a national unity government for all the factions.”
Egypt govt denies role in violence
Meanwhile a spokesman for the new government, which Mubarak named this week in a vain bid to appease protesters, denied it was involved in the violence and said it would investigate.
“To accuse the government of mobilising this is a real fiction. That would defeat our object of restoring the calm,” cabinet spokesman Magdy Rady said.
“We were surprised with all these actions,” he said.
Prime Minister Ahmed Shafiq said the violence would be investigated, state television reported.
“The government will take the measures it can to identify who was behind this and try to deal with this,” Rady said.
Rady also said that the army, sent to the streets on Friday after police lost control of protests, had not intervened because it could have been interpreted as taking sides.
“There is faction here and faction there, they (the army) cannot take a side. If they interfere in one side that will defeat their purpose. It would complicate matters more than helping it,” Rady said.
World leaders urge rapid transition in Egypt
With many protesters blaming the government for instigating the crackdown on the previously largely peaceful demonstrations, the UShas renewed its appeal to Mubarak to take steps towards democratic elections at once.
After Mubarak announced on Tuesday that he would stay in office until September and then step down, President Barack Obama telephoned him and said that change “must begin now”. He stopped short of calling him to quit immediately.
Along with the United States, France, Germany, Britain , Itlay and Spain have also urged a speedy transition.
“We are observing a deterioration of the situation in Egypt with extreme concern,” the five European leaders said in a joint statement issued by French President Nicolas Sarkozy’s office in Paris.
The protesters are leading an unprecedented challenge to Mubarak’s 30-year rule. His pledge to step down by September has not satisfied them.
“We condemn all those who use or encourage violence, which will only worsen Egypt’s political crisis,” the statement said, adding that attacks on journalists were “unacceptable”.
“Only a rapid and orderly transition towards a broadly representative government will allow Egypt to overcome the challenges that it is facing.
It was the first time the army was seen to act decisively to try to halt the violence, in which six people have been killed and 836 wounded, according to the health minister.
Supporters of President Hosni Mubarak opened fire on protesters in Cairo’s Tahrir Square on Thursday, killing at least five, in a fresh spike in violence over an unprecedented challenge to his 30-year-old rule.
The opposition responded by renewing demands that he quit.
Thousands of dissidents barricaded themselves into the central Cairo square, vowing to remain until Mubarak goes.
The Muslim Brotherhood, a formally banned mass movement seen as the best organised opposition, issued a statement calling for a national unity government to replace Mubarak. The Islamist group, whose potential rise to power troubles Egypt’s Western allies, has so far taken a backseat in the protest movement.
In a statement on Al Jazeera, the Brotherhood said: “We demand that this regime is overthrown and we demand the formation of a national unity government for all the factions.”
Egypt govt denies role in violence
Meanwhile a spokesman for the new government, which Mubarak named this week in a vain bid to appease protesters, denied it was involved in the violence and said it would investigate.
“To accuse the government of mobilising this is a real fiction. That would defeat our object of restoring the calm,” cabinet spokesman Magdy Rady said.
“We were surprised with all these actions,” he said.
Prime Minister Ahmed Shafiq said the violence would be investigated, state television reported.
“The government will take the measures it can to identify who was behind this and try to deal with this,” Rady said.
Rady also said that the army, sent to the streets on Friday after police lost control of protests, had not intervened because it could have been interpreted as taking sides.
“There is faction here and faction there, they (the army) cannot take a side. If they interfere in one side that will defeat their purpose. It would complicate matters more than helping it,” Rady said.
World leaders urge rapid transition in Egypt
With many protesters blaming the government for instigating the crackdown on the previously largely peaceful demonstrations, the UShas renewed its appeal to Mubarak to take steps towards democratic elections at once.
After Mubarak announced on Tuesday that he would stay in office until September and then step down, President Barack Obama telephoned him and said that change “must begin now”. He stopped short of calling him to quit immediately.
Along with the United States, France, Germany, Britain , Itlay and Spain have also urged a speedy transition.
“We are observing a deterioration of the situation in Egypt with extreme concern,” the five European leaders said in a joint statement issued by French President Nicolas Sarkozy’s office in Paris.
The protesters are leading an unprecedented challenge to Mubarak’s 30-year rule. His pledge to step down by September has not satisfied them.
“We condemn all those who use or encourage violence, which will only worsen Egypt’s political crisis,” the statement said, adding that attacks on journalists were “unacceptable”.
“Only a rapid and orderly transition towards a broadly representative government will allow Egypt to overcome the challenges that it is facing.
Mubarak says he won’t quit early
Cairo: President Hosni Mubarak ruled out resigning immediately to end a violent confrontation over his 30-year-rule, arguing this would bring chaos to Egypt, but the New York Times said the Obama administration was in talks with Egyptian officials for him to quit now.
Speaking in an interview with ABC on Thursday, after bloodshed in Cairo that killed 10 people, the 82-year-old leader said he believed his country still needed him.
“If I resign today, there will be chaos,” he said. Asked to comment on calls for him to resign, he said: “I don’t care what people say about me. Right now I care about my country.”
The New York Times said on Friday the administration of President Barack Obama was discussing with Egyptian officials a proposal for Mubarak to resign immediately.
Under the proposal, Mubarak would turn power over to a transitional government headed by vice president Omar Suleiman with the support of the Egyptian military, the newspaper said, citing administration officials and Arab diplomats.
Facing an unprecedented challenge to his rule from Egyptians angered by political repression, Mubarak has promised to stand down in September, appointed Suleiman a former intelligence chief as vice-president, and offered talks on reforms.
But that has failed to satisfy protesters who are hoping to rally thousands of Egyptians on Friday for a fresh demonstration to try to force Mubarak to quit now.
With the confrontation turning increasingly violent—protesters in Cairo’s Tahrir Square were attacked by Mubarak supporters on Wednesday—the United States has increased pressure on Mubarak to begin the transition of power now.
Protesters in Tahrir (Liberation) Square—which has become the hub of pro-democracy demonstrations—were hoping to be joined by thousands more for a big demonstration they are calling the “Friday of Departure”.
Organisers called on people to march from wherever they were towards the square, the state television building and the parliament building—all within around a mile of one another in the heart of the city.
The US State Department said it expected confrontation in what would be the 11th day of protests.
State Department spokesman P.J. Crowley said Washington believed elements close to the government or Mubarak’s ruling party were responsible for the violence which erupted on Wednesday. The Interior Ministry has denied it ordered its agents or officers to attack anti-Mubarak protesters.
Government Offers Talks
In a move to try to calm the disorder, vice president Omar Suleiman said on Thursday the Muslim Brotherhood, Egypt’s most organised opposition movement, had been invited to meet with the new government as part of a national dialogue with all parties.
An offer to talk to the banned group would have been unthinkable before protests erupted on 25 Jan., indicating progress made by the reformist movement since then. However, the opposition has refused talks until Mubarak goes.
The United States, which supplies the Egyptian army—Mubarak’s power base—with about $1.3 billion in aid annually—is struggling to find a solution to the crisis which does not exacerbate instability in the Arab world’s most populous nation.
The White House said on Thursday Washington was discussing with Egyptians a “variety of different ways” of moving toward a peaceful transition in Egypt.
Tommy Vietor, spokesman for the White House National Security Council, said President Barack Obama has said now is the time to begin “a peaceful, orderly and meaningful transition, with credible, inclusive negotiations.”
The New York Times said the US proposal called for a transitional government to invite members from a broad range of opposition groups, including the banned Muslim Brotherhood, to begin work to open up the country’s electoral system in an effort to bring about free and fair elections in September.
Egypt, which signed a peace treaty with Israel in 1979, has been a key US ally in the Middle East. Mubarak had also justified his use of emergency rule as needed to curb Islamist militancy in a country where al Qaeda had its ideological roots.
Mubarak described Obama as a very good man, but when asked by ABC if he felt that the United States had betrayed him, he said he told the US president: “You don’t understand the Egyptian culture and what would happen if I step down now.”
An estimated 150 people have died in the protests, which were inspired by events in Tunisia, where its leader Zine al-Abidine Ben Ali was forced to flee last month.
Oil prices have climbed on fears the unrest could spread to affect oil giant Saudi Arabia or interfere with oil supplies from the Red Sea to the Mediterranean through the Suez Canal.
Speaking in an interview with ABC on Thursday, after bloodshed in Cairo that killed 10 people, the 82-year-old leader said he believed his country still needed him.
“If I resign today, there will be chaos,” he said. Asked to comment on calls for him to resign, he said: “I don’t care what people say about me. Right now I care about my country.”
The New York Times said on Friday the administration of President Barack Obama was discussing with Egyptian officials a proposal for Mubarak to resign immediately.
Under the proposal, Mubarak would turn power over to a transitional government headed by vice president Omar Suleiman with the support of the Egyptian military, the newspaper said, citing administration officials and Arab diplomats.
Facing an unprecedented challenge to his rule from Egyptians angered by political repression, Mubarak has promised to stand down in September, appointed Suleiman a former intelligence chief as vice-president, and offered talks on reforms.
But that has failed to satisfy protesters who are hoping to rally thousands of Egyptians on Friday for a fresh demonstration to try to force Mubarak to quit now.
With the confrontation turning increasingly violent—protesters in Cairo’s Tahrir Square were attacked by Mubarak supporters on Wednesday—the United States has increased pressure on Mubarak to begin the transition of power now.
Protesters in Tahrir (Liberation) Square—which has become the hub of pro-democracy demonstrations—were hoping to be joined by thousands more for a big demonstration they are calling the “Friday of Departure”.
Organisers called on people to march from wherever they were towards the square, the state television building and the parliament building—all within around a mile of one another in the heart of the city.
The US State Department said it expected confrontation in what would be the 11th day of protests.
State Department spokesman P.J. Crowley said Washington believed elements close to the government or Mubarak’s ruling party were responsible for the violence which erupted on Wednesday. The Interior Ministry has denied it ordered its agents or officers to attack anti-Mubarak protesters.
Government Offers Talks
In a move to try to calm the disorder, vice president Omar Suleiman said on Thursday the Muslim Brotherhood, Egypt’s most organised opposition movement, had been invited to meet with the new government as part of a national dialogue with all parties.
An offer to talk to the banned group would have been unthinkable before protests erupted on 25 Jan., indicating progress made by the reformist movement since then. However, the opposition has refused talks until Mubarak goes.
The United States, which supplies the Egyptian army—Mubarak’s power base—with about $1.3 billion in aid annually—is struggling to find a solution to the crisis which does not exacerbate instability in the Arab world’s most populous nation.
The White House said on Thursday Washington was discussing with Egyptians a “variety of different ways” of moving toward a peaceful transition in Egypt.
Tommy Vietor, spokesman for the White House National Security Council, said President Barack Obama has said now is the time to begin “a peaceful, orderly and meaningful transition, with credible, inclusive negotiations.”
The New York Times said the US proposal called for a transitional government to invite members from a broad range of opposition groups, including the banned Muslim Brotherhood, to begin work to open up the country’s electoral system in an effort to bring about free and fair elections in September.
Egypt, which signed a peace treaty with Israel in 1979, has been a key US ally in the Middle East. Mubarak had also justified his use of emergency rule as needed to curb Islamist militancy in a country where al Qaeda had its ideological roots.
Mubarak described Obama as a very good man, but when asked by ABC if he felt that the United States had betrayed him, he said he told the US president: “You don’t understand the Egyptian culture and what would happen if I step down now.”
An estimated 150 people have died in the protests, which were inspired by events in Tunisia, where its leader Zine al-Abidine Ben Ali was forced to flee last month.
Oil prices have climbed on fears the unrest could spread to affect oil giant Saudi Arabia or interfere with oil supplies from the Red Sea to the Mediterranean through the Suez Canal.
Opec worried about Egypt, but not acting yet
London: Oil producer group Opec said on Monday it was worried about the unrest in Egypt but saw no reason to boost output to cool prices at the moment and would add more supply only if it saw a shortage in the market.
Oil prices have spiked following tension in Egypt with Brent crude approaching $100 per barrel on fears instability could spread to the Middle East, which together with North Africa produces more than a third of the world’s oil.
Secretary general Abdullah al-Badri told reporters in London the Organization of the Petroleum Exporting Countries did not at this stage think it was necessary to call a meeting before its next planned gathering in June but added that the mood was changing due to the situation in Egypt.
“Before the Tunisian and the Egyptian crisis, we don’t see it (an extraordinary meeting). But now, I don’t know if this crisis will escalate. I hope not,” al-Badri said when asked about chances for an Opec meeting before June.
Al-Badri confirmed Opec ministers and consumers would discuss oil output policy on the sidelines of an international energy conference in Saudi Arabia on 22 February, but said a formal decision there was unlikely.
“Riyadh is not an Opec meeting. Nobody asked me to prepare anything, so I really cannot tell you anything,” he said.
Al-Badri said he did not expect the unrest in Egypt to affect oil flows through the Suez canal or the Sumed pipeline.
“I think that the flows will continue,” he said.
“We are watching the situation because there is some good quantity (at stake) and if there is a problem there we have to do something,” he told reporters at a conference.
“Inventories are very high and our spare capacity is also 6 million barrels. I don’t see why we have this high price,” he said.
“The market is well supplied but at the same time if we see some real shortage we will intervene,” al-Badri said.
Oil prices have spiked following tension in Egypt with Brent crude approaching $100 per barrel on fears instability could spread to the Middle East, which together with North Africa produces more than a third of the world’s oil.
Secretary general Abdullah al-Badri told reporters in London the Organization of the Petroleum Exporting Countries did not at this stage think it was necessary to call a meeting before its next planned gathering in June but added that the mood was changing due to the situation in Egypt.
“Before the Tunisian and the Egyptian crisis, we don’t see it (an extraordinary meeting). But now, I don’t know if this crisis will escalate. I hope not,” al-Badri said when asked about chances for an Opec meeting before June.
Al-Badri confirmed Opec ministers and consumers would discuss oil output policy on the sidelines of an international energy conference in Saudi Arabia on 22 February, but said a formal decision there was unlikely.
“Riyadh is not an Opec meeting. Nobody asked me to prepare anything, so I really cannot tell you anything,” he said.
Al-Badri said he did not expect the unrest in Egypt to affect oil flows through the Suez canal or the Sumed pipeline.
“I think that the flows will continue,” he said.
“We are watching the situation because there is some good quantity (at stake) and if there is a problem there we have to do something,” he told reporters at a conference.
“Inventories are very high and our spare capacity is also 6 million barrels. I don’t see why we have this high price,” he said.
“The market is well supplied but at the same time if we see some real shortage we will intervene,” al-Badri said.
FAO sees January food prices close to record high
record highs seen in December when they climbed above peaks which triggered riots in several countries in 2008, an economist at the United Nations’ food agency said.
“FAO’s expectation is that the January index would be very close or slightly below December,” Abdolreza Abbassian, UN’s Food and Agriculture Organisation economist, said ahead of the release of FAO’s monthly food index.
The FAO’s Food Price Index (FPI), which measures monthly price changes for a food basket composed of cereals, oilseeds, dairy, meat and sugar, hit an all-time high of 214.7 points in December 2010, above a previous record set in June 2008 during the food crisis.
High food prices have come back into the spotlight after they fuelled protests in Tunisia that led to the fall of the president there earlier in January 2011 and have spilled over to Egypt.
World leaders at the World Economic Forum in Davos last week warned rising food prices risked stoking more unrest and even war. French President Nicolas Sarkozy reiterated calls for regulation to rein in speculation and volatility.
According to preliminary estimates, prices of sugar, some grains and oilseeds in January were slightly below levels seen in December, Abbassian said in a telephonic interview.
He said the FAO uses spot and physical prices to calculate the index and does not use futures prices which rallied in January.
US corn and soybean futures topped out at 2-1/2 year highs in January and wheat futures hit a 29-month high last Thursday as buyers scrambled for supplies amid harsh weather in major producing countries such as Australia and Russia.
Wheat futures on Euronext climbed in January to the highest level since March 2008, powered by increased export demand as fears of short supplies and social unrest prompted importers, especially from North Africa and Middle East, to build up inventories.
Raw sugar futures roared close to a fresh 30-year high last week as tight supplies and expectations of increased export to Russia encouraged market bulls.
The FAO is due to publish its FPI for January on 3 February.
The agency will revise the entire series of the index dating back to 1990 because of a change in calculating its meat component, but December 2010 and June 2008 will remain as two major food price index peaks, Abbassian said.
“FAO’s expectation is that the January index would be very close or slightly below December,” Abdolreza Abbassian, UN’s Food and Agriculture Organisation economist, said ahead of the release of FAO’s monthly food index.
The FAO’s Food Price Index (FPI), which measures monthly price changes for a food basket composed of cereals, oilseeds, dairy, meat and sugar, hit an all-time high of 214.7 points in December 2010, above a previous record set in June 2008 during the food crisis.
High food prices have come back into the spotlight after they fuelled protests in Tunisia that led to the fall of the president there earlier in January 2011 and have spilled over to Egypt.
World leaders at the World Economic Forum in Davos last week warned rising food prices risked stoking more unrest and even war. French President Nicolas Sarkozy reiterated calls for regulation to rein in speculation and volatility.
According to preliminary estimates, prices of sugar, some grains and oilseeds in January were slightly below levels seen in December, Abbassian said in a telephonic interview.
He said the FAO uses spot and physical prices to calculate the index and does not use futures prices which rallied in January.
US corn and soybean futures topped out at 2-1/2 year highs in January and wheat futures hit a 29-month high last Thursday as buyers scrambled for supplies amid harsh weather in major producing countries such as Australia and Russia.
Wheat futures on Euronext climbed in January to the highest level since March 2008, powered by increased export demand as fears of short supplies and social unrest prompted importers, especially from North Africa and Middle East, to build up inventories.
Raw sugar futures roared close to a fresh 30-year high last week as tight supplies and expectations of increased export to Russia encouraged market bulls.
The FAO is due to publish its FPI for January on 3 February.
The agency will revise the entire series of the index dating back to 1990 because of a change in calculating its meat component, but December 2010 and June 2008 will remain as two major food price index peaks, Abbassian said.
Over 200,000 in Cairo demand Mubarak quit
Cairo: Hundreds of thousands of Egyptians, from students and doctors to the jobless poor, swamped Cairo on Tuesday in the biggest demonstration so far in an uprising against an increasingly isolated President Hosni Mubarak.
Waving Egyptian flags and banners saying “Bye-Bye Mubarak,” the protesters rejected promises of reform to his authoritarian rule and demanded that he quit.
Huge rallies also took place in the cities of Alexandria and Suez, where protesters chanted: “Leave, leave. Revolution, revolution everywhere.”
Opposition figurehead Mohamed ElBaradei said Mubarak, 82, must leave the country before the reformist opposition would start talks with the government on the future of the Arab world’s most populous nation.
“There can be dialogue but it has to come after the demands of the people are met and the first of those is that President Mubarak leaves,” he told Al Arabiya television.
Mubarak’s grip looked increasingly tenuous after the army pledged on Monday night not to confront protesters, effectively handing over the streets to them after they pledged to bring out one million people nationwide.
The uprising of a population fed up with corruption, oppression and economic hardship broke out eight days ago and quickly spiralled to a crisis unprecedented during 30 years of rule enforced by ruthless security forces.
The disintegration of Mubarak’s power structure would usher in a new era in modern Egyptian history and reconfigure the geopolitical map of the Middle East, with huge ramifications for Washington and allies from Israel to oil giant Saudi Arabia.
The army, a powerful and respected force in Egypt, dealt a possibly fatal blow to Mubarak on Monday night when it said troops would not open fire on protesters and that they had legitimate grievances and a right to peaceful protest.
Soldiers in Tahrir (Liberation) Square, that has become a rallying point for the protests, erected barbed wire barricades but made no attempt to interfere with people. Tanks daubed with anti-Mubarak graffiti stood by.
Barbed wire barricades also ringed the presidential palace, where Mubarak is believed to be hunkered down.
“We have done the difficult part. We have taken over the street,” said protester Walid Abdel-Muttaleb, 38. “Now it’s up to the intellectuals and politicians to come together and provide us with alternatives.”
Effigies of Mubarak were hung from traffic lights and some protesters carried a mock coffin.
The crowd included lawyers and other professionals as well as workers and students, showing the breadth of opposition to Mubarak. Women and men stood together holding hands.
The demonstration was an emphatic rejection of Mubarak’s appointment of a new vice president, Omar Suleiman, cabinet reshuffle and offer to open a dialogue with the opposition.
US Sends Envoy
“The succession is already under way,” said Steven Cook at the Council on Foreign Relations.
“The important thing now is to manage Mubarak’s exit, which must be as graceful as possible at this point. For honour’s sake, the brass won’t have it any other way.”
US special envoy Frank Wisner, a former ambassador to Cairo, has been sent to Egypt to meet leaders.
The United States and other Western allies could only watch as thousands demanded the downfall of a stalwart ally who has been a key figure in Middle East peace moves for decades.
Washington called for reforms and free elections but it is also concerned that Islamists could gain a slice of power should Mubarak be forced out.
The prospect of a hostile neighbour on Israel’s western border also worried Israeli Prime Minister Benjamin Netanyahu. He said he hoped Israel’s 1979 peace treaty with Egypt would survive any changes that took place.
But pressure on Mubarak came from elsewhere.
Turkish Prime Minister Tayyip Erdogan said Mubarak should listen to the people’s demands. The solution to political problems lay in the ballot box, he said.
The British government said it was disappointed by the new cabinet as its members were unlikely to produce the kind of political change demanded by the country’s citizens.
The UN human rights chief, Navi Pillay, said Tuesday’s rallies could be a “pivotal moment” for Egypt.
Protesters were inspired in part by a revolt in Tunisia which toppled its president Zine al-Abidine Ben Ali on 14 January. But years of repression have left few obvious civilian leaders able to fill any gap left by Mubarak’s departure.
The military, which has run Egypt since it toppled King Farouk in 1952, will be the key player in deciding who replaces him. Some analysts expect it to retain significant power while introducing enough reforms to defuse the protests.
ElBaradei, former head of the International Atomic Energy Agency (IAEA), said Mubarak must leave the country so the opposition could start a dialogue with the government on transitional power arrangements.
“If President Mubarak leaves, then everything will progress correctly,” he said.
Mohammed al-Beltagi, a former member of parliament from the Muslim Brotherhood, said the opposition was operating under an umbrella group, the National Committee for Following up the People’s Demands, which includes the Brotherhood, the National Association for Change headed by ElBaradei, political parties and prominent figures including Coptic Christians.
Muslim brotherhood emerges
The hitherto banned Muslim Brotherhood, a well-organised Islamic group, stayed in the background early in the uprising but is now raising its profile. Analysts say it could do well in any election.
At least 140 people have died since demonstrations began last Tuesday, most in clashes between protesters and police.
Foreign governments have taken steps to evacuate nationals trapped by the unrest, including thousands of tourists. Companies also pulled out staff as the confrontation brought economic life to a halt.
In global markets, investors shifted focus from worrying about Egypt as improved economic data and corporate results in the developed world lifted stocks.
The price of oil, the most sensitive indicator of market unease about Egypt, eased although Brent crude was still a few cents above $100 a barrel.
The Egyptian crisis has prompted bursts of risk aversion on financial markets over the past few days. The main concern is the prospect of the unrest spreading to the autocratic oil-producing Gulf nations.
Waving Egyptian flags and banners saying “Bye-Bye Mubarak,” the protesters rejected promises of reform to his authoritarian rule and demanded that he quit.
Huge rallies also took place in the cities of Alexandria and Suez, where protesters chanted: “Leave, leave. Revolution, revolution everywhere.”
Opposition figurehead Mohamed ElBaradei said Mubarak, 82, must leave the country before the reformist opposition would start talks with the government on the future of the Arab world’s most populous nation.
“There can be dialogue but it has to come after the demands of the people are met and the first of those is that President Mubarak leaves,” he told Al Arabiya television.
Mubarak’s grip looked increasingly tenuous after the army pledged on Monday night not to confront protesters, effectively handing over the streets to them after they pledged to bring out one million people nationwide.
The uprising of a population fed up with corruption, oppression and economic hardship broke out eight days ago and quickly spiralled to a crisis unprecedented during 30 years of rule enforced by ruthless security forces.
The disintegration of Mubarak’s power structure would usher in a new era in modern Egyptian history and reconfigure the geopolitical map of the Middle East, with huge ramifications for Washington and allies from Israel to oil giant Saudi Arabia.
The army, a powerful and respected force in Egypt, dealt a possibly fatal blow to Mubarak on Monday night when it said troops would not open fire on protesters and that they had legitimate grievances and a right to peaceful protest.
Soldiers in Tahrir (Liberation) Square, that has become a rallying point for the protests, erected barbed wire barricades but made no attempt to interfere with people. Tanks daubed with anti-Mubarak graffiti stood by.
Barbed wire barricades also ringed the presidential palace, where Mubarak is believed to be hunkered down.
“We have done the difficult part. We have taken over the street,” said protester Walid Abdel-Muttaleb, 38. “Now it’s up to the intellectuals and politicians to come together and provide us with alternatives.”
Effigies of Mubarak were hung from traffic lights and some protesters carried a mock coffin.
The crowd included lawyers and other professionals as well as workers and students, showing the breadth of opposition to Mubarak. Women and men stood together holding hands.
The demonstration was an emphatic rejection of Mubarak’s appointment of a new vice president, Omar Suleiman, cabinet reshuffle and offer to open a dialogue with the opposition.
US Sends Envoy
“The succession is already under way,” said Steven Cook at the Council on Foreign Relations.
“The important thing now is to manage Mubarak’s exit, which must be as graceful as possible at this point. For honour’s sake, the brass won’t have it any other way.”
US special envoy Frank Wisner, a former ambassador to Cairo, has been sent to Egypt to meet leaders.
The United States and other Western allies could only watch as thousands demanded the downfall of a stalwart ally who has been a key figure in Middle East peace moves for decades.
Washington called for reforms and free elections but it is also concerned that Islamists could gain a slice of power should Mubarak be forced out.
The prospect of a hostile neighbour on Israel’s western border also worried Israeli Prime Minister Benjamin Netanyahu. He said he hoped Israel’s 1979 peace treaty with Egypt would survive any changes that took place.
But pressure on Mubarak came from elsewhere.
Turkish Prime Minister Tayyip Erdogan said Mubarak should listen to the people’s demands. The solution to political problems lay in the ballot box, he said.
The British government said it was disappointed by the new cabinet as its members were unlikely to produce the kind of political change demanded by the country’s citizens.
The UN human rights chief, Navi Pillay, said Tuesday’s rallies could be a “pivotal moment” for Egypt.
Protesters were inspired in part by a revolt in Tunisia which toppled its president Zine al-Abidine Ben Ali on 14 January. But years of repression have left few obvious civilian leaders able to fill any gap left by Mubarak’s departure.
The military, which has run Egypt since it toppled King Farouk in 1952, will be the key player in deciding who replaces him. Some analysts expect it to retain significant power while introducing enough reforms to defuse the protests.
ElBaradei, former head of the International Atomic Energy Agency (IAEA), said Mubarak must leave the country so the opposition could start a dialogue with the government on transitional power arrangements.
“If President Mubarak leaves, then everything will progress correctly,” he said.
Mohammed al-Beltagi, a former member of parliament from the Muslim Brotherhood, said the opposition was operating under an umbrella group, the National Committee for Following up the People’s Demands, which includes the Brotherhood, the National Association for Change headed by ElBaradei, political parties and prominent figures including Coptic Christians.
Muslim brotherhood emerges
The hitherto banned Muslim Brotherhood, a well-organised Islamic group, stayed in the background early in the uprising but is now raising its profile. Analysts say it could do well in any election.
At least 140 people have died since demonstrations began last Tuesday, most in clashes between protesters and police.
Foreign governments have taken steps to evacuate nationals trapped by the unrest, including thousands of tourists. Companies also pulled out staff as the confrontation brought economic life to a halt.
In global markets, investors shifted focus from worrying about Egypt as improved economic data and corporate results in the developed world lifted stocks.
The price of oil, the most sensitive indicator of market unease about Egypt, eased although Brent crude was still a few cents above $100 a barrel.
The Egyptian crisis has prompted bursts of risk aversion on financial markets over the past few days. The main concern is the prospect of the unrest spreading to the autocratic oil-producing Gulf nations.
Flood-weary Australians flee new, ‘monster’ storm
Cairns, Australia: Thousands of people fled from the path of a monster storm bearing down on northeastern Australia that officials warned Tuesday was almost certain to cause widespread damage and could turn deadly in a state still suffering from massive floods.
Hospitals in the tourist gateway of Cairns emptied as military evacuation flights ferried the ill and elderly to safety far south from a long stretch of Queensland state’s tropical coast that are in the path of Cyclone Yasi. Residents packed onto extra commercial flights added to allow them to leave.
The Cairns airport was scheduled to close Wednesday as Cyclone Yasi approaches.
“We’re in the process of packing up boxes ... the dogs and the pet snake and getting out of here,” Cairns resident Melissa Lovejoy told the Australian Broadcasting Corp. She said the family decided to leave their home near the coast for a friend’s place that was sturdier and further inland after getting phone call and a text message warning residents to evacuate by Tuesday night.
Cyclone Yasi was forecast to hit the coast late Wednesday or early Thursday with wind gusts of around 155 miles per hour (250 kilometers per hour), the Bureau of Meteorology said.
Carla Jenkins, a 23-year-old Cairns resident and flight attendant, was feeling jittery as her plane coasted to a halt at the Cairns airport Tuesday night. Jenkins lived through Cyclone Larry, which slammed into the region in 2006, and feared Yasi would be even more brutal.
“One of the scariest things I remember (from Larry) was on the radio, they said, ‘Fear for your life,”’ said Jenkins, who was planning to ride out the storm in her house. “I’ve got a feeling this is going to be worse. So I’m just a bit freaked out.”
Forecasters said up to three feet (one meter) of rain could fall on some coastal communities. Many parts of Queensland state are already saturated from months of flooding, though the worst floods hit areas hundreds of miles (kilometers) farther south of the towns in the immediate path of Yasi. Still, Queensland Premier Anna Bligh said residents up and down the coast needed to prepare.
“It’s such a big storm - it’s a monster, killer storm - that it’s not just about where this crosses the coast that is at risk,” Bligh said.
“I know many of us will feel that Queensland has already borne about as much as we can bear when it comes to disasters and storms,” she said. “But more is being asked of us.”
Cairns, a city of some 164,000 people and a gateway for visitors to the Great Barrier Reef, was in the path to bear the brunt of the storm. But wind warnings of various degrees of strength were issued for a stretch of coast some 1,000 miles (1,600 kilometers) long, from the remote community Cape Melville to the port city of Gladstone.
In Cairns, more than 9,000 people in low-lying and coastal parts were ordered to evacuate their homes as the sea is expected to surge at least 6.5 feet (two meters) and flood significant parts of the city.
The military was airlifting 250 patients from the waterfront Cairns Base and Cairns Private hospitals to Brisbane, the state capital about 1,000 miles (1,700 kilometers) south. Elderly care homes were also being evacuated.
“In reality, we would like people to get as far south as possible, as quickly as possible, without of course breaking the rules,” said Ian Stewart, the state’s disaster coordinator, told reporters.
Airlines were arranging extra flights Tuesday night. Tourists who had been evacuated from beach resorts - ranging from backpacker hostels to exclusive clubs sometimes frequented by Hollywood stars, and once by a vacationing President Bill Clinton - were flying out.
Another storm, Cyclone Anthony, hit Queensland early Monday but quickly weakened and did little more than uproot some trees and damage power lines. Forecasters said Yasi had a storm front more than 310 miles (500 kilometers) wide and was far larger and more powerful than the earlier storm, so it could reach far inland before it significantly loses power.
Queensland has been in the grip of one of Australia’s worst natural disasters for more than a month. Tropical deluges that began in November flooded an area greater than France and Germany combined, damaging or destroying some 30,000 homes and businesses and killing 35 people.
Large parts of Brisbane, Australia’s third largest city, were inundated for days. The government says the total cost to Australia is at least 5.6 billion dollars.
Yasi’s forecast path is farther north, sparing Brisbane and towns worst-hit by the past floods. Still, Bligh said the storm’s path could change and everyone near the coast should prepare.
Australia’s huge, sparsely populated tropical north is battered by about six cyclones - called typhoons throughout much of Asia and hurricanes in the Western hemisphere - each year. Building codes that have been strengthened since Cyclone Tracy devastated the city of Darwin in 1974 have left the region generally well-prepared.
In 2006, Cyclone Larry tore through the rural community of Innisfail, about 60 miles (100 kilometers) south of Cairns, destroying thousands of homes and devastating banana and sugar cane plantations. No one was killed.
Stewart said residents in Yasi’s path should be prepared with flashlights, food and water.
“Please make no mistake: This storm is a deadly event,” Stewart said. “Now is the time to act.”
In Cairns, residents stocked up on food and supplies ahead of the storm.
Mayor Val Schier said some people were running behind with their preparations, despite the warnings.
“Some people have left it very late,” she said. “They were complacent and didn’t heed the warnings.”
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Hospitals in the tourist gateway of Cairns emptied as military evacuation flights ferried the ill and elderly to safety far south from a long stretch of Queensland state’s tropical coast that are in the path of Cyclone Yasi. Residents packed onto extra commercial flights added to allow them to leave.
The Cairns airport was scheduled to close Wednesday as Cyclone Yasi approaches.
“We’re in the process of packing up boxes ... the dogs and the pet snake and getting out of here,” Cairns resident Melissa Lovejoy told the Australian Broadcasting Corp. She said the family decided to leave their home near the coast for a friend’s place that was sturdier and further inland after getting phone call and a text message warning residents to evacuate by Tuesday night.
Cyclone Yasi was forecast to hit the coast late Wednesday or early Thursday with wind gusts of around 155 miles per hour (250 kilometers per hour), the Bureau of Meteorology said.
Carla Jenkins, a 23-year-old Cairns resident and flight attendant, was feeling jittery as her plane coasted to a halt at the Cairns airport Tuesday night. Jenkins lived through Cyclone Larry, which slammed into the region in 2006, and feared Yasi would be even more brutal.
“One of the scariest things I remember (from Larry) was on the radio, they said, ‘Fear for your life,”’ said Jenkins, who was planning to ride out the storm in her house. “I’ve got a feeling this is going to be worse. So I’m just a bit freaked out.”
Forecasters said up to three feet (one meter) of rain could fall on some coastal communities. Many parts of Queensland state are already saturated from months of flooding, though the worst floods hit areas hundreds of miles (kilometers) farther south of the towns in the immediate path of Yasi. Still, Queensland Premier Anna Bligh said residents up and down the coast needed to prepare.
“It’s such a big storm - it’s a monster, killer storm - that it’s not just about where this crosses the coast that is at risk,” Bligh said.
“I know many of us will feel that Queensland has already borne about as much as we can bear when it comes to disasters and storms,” she said. “But more is being asked of us.”
Cairns, a city of some 164,000 people and a gateway for visitors to the Great Barrier Reef, was in the path to bear the brunt of the storm. But wind warnings of various degrees of strength were issued for a stretch of coast some 1,000 miles (1,600 kilometers) long, from the remote community Cape Melville to the port city of Gladstone.
In Cairns, more than 9,000 people in low-lying and coastal parts were ordered to evacuate their homes as the sea is expected to surge at least 6.5 feet (two meters) and flood significant parts of the city.
The military was airlifting 250 patients from the waterfront Cairns Base and Cairns Private hospitals to Brisbane, the state capital about 1,000 miles (1,700 kilometers) south. Elderly care homes were also being evacuated.
“In reality, we would like people to get as far south as possible, as quickly as possible, without of course breaking the rules,” said Ian Stewart, the state’s disaster coordinator, told reporters.
Airlines were arranging extra flights Tuesday night. Tourists who had been evacuated from beach resorts - ranging from backpacker hostels to exclusive clubs sometimes frequented by Hollywood stars, and once by a vacationing President Bill Clinton - were flying out.
Another storm, Cyclone Anthony, hit Queensland early Monday but quickly weakened and did little more than uproot some trees and damage power lines. Forecasters said Yasi had a storm front more than 310 miles (500 kilometers) wide and was far larger and more powerful than the earlier storm, so it could reach far inland before it significantly loses power.
Queensland has been in the grip of one of Australia’s worst natural disasters for more than a month. Tropical deluges that began in November flooded an area greater than France and Germany combined, damaging or destroying some 30,000 homes and businesses and killing 35 people.
Large parts of Brisbane, Australia’s third largest city, were inundated for days. The government says the total cost to Australia is at least 5.6 billion dollars.
Yasi’s forecast path is farther north, sparing Brisbane and towns worst-hit by the past floods. Still, Bligh said the storm’s path could change and everyone near the coast should prepare.
Australia’s huge, sparsely populated tropical north is battered by about six cyclones - called typhoons throughout much of Asia and hurricanes in the Western hemisphere - each year. Building codes that have been strengthened since Cyclone Tracy devastated the city of Darwin in 1974 have left the region generally well-prepared.
In 2006, Cyclone Larry tore through the rural community of Innisfail, about 60 miles (100 kilometers) south of Cairns, destroying thousands of homes and devastating banana and sugar cane plantations. No one was killed.
Stewart said residents in Yasi’s path should be prepared with flashlights, food and water.
“Please make no mistake: This storm is a deadly event,” Stewart said. “Now is the time to act.”
In Cairns, residents stocked up on food and supplies ahead of the storm.
Mayor Val Schier said some people were running behind with their preparations, despite the warnings.
“Some people have left it very late,” she said. “They were complacent and didn’t heed the warnings.”
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Asian tech exports far outpace US
Geneva: New trade data shows Asia exports two-thirds of the world’s high-tech goods for information and communications, a key shift the U.N. attributes to the global financial crisis.
U.N. data released Wednesday shows China and Hong Kong export four times as many of the goods as the US ($113 billion).
Asian economies accounted for 66.3% of global exports of information and communication technology in 2009.
Exports from India and Malaysia rose, while those from China, Hong Kong and several other Asian nations fell modestly. Exports from the US, Europe and Japan fell sharply.
This type of technology, key to helping nations develop accounts for 12% of global trade. The US, China and Hong Kong are also the biggest importers of these goods
U.N. data released Wednesday shows China and Hong Kong export four times as many of the goods as the US ($113 billion).
Asian economies accounted for 66.3% of global exports of information and communication technology in 2009.
Exports from India and Malaysia rose, while those from China, Hong Kong and several other Asian nations fell modestly. Exports from the US, Europe and Japan fell sharply.
This type of technology, key to helping nations develop accounts for 12% of global trade. The US, China and Hong Kong are also the biggest importers of these goods
World Bank chief urges action on rising food prices
Washington: The world faces a broader trend of increasing food and commodity prices and more countries should wake up to the need to curb price volatility, World Bank President Robert Zoellick said on Wednesday.
In a phone interview from Berlin, Zoellick called on G-20 global leaders to “put food first” to tackle the surge in prices and increased volatility threatening the poor and driving up inflation in developing countries, mainly in Asia.
“We are going to be facing a broader trend of increasing commodity prices, including food commodity prices,” Zoellick told Reuters.
“This can put pressure but also create opportunities,” he added, noting that developing nations could boost revenues by increasing food production to meet rising global demand.
He said increased consumer demand, especially for sugar and meat, in fast-growing emerging economies was a major factor pushing prices higher compared with the 2007-2008 crisis.
A mix of high oil and fuel prices, growing use of biofuels, bad weather and soaring futures markets pushed prices to record levels in 2007 and 2008, sparking violent protests in Africa.
Zoellick said the Food Price Index of the UN Food and Agriculture Organization, or FAO, which measures monthly prices changes for a food basket of cereals, oilseeds, dairy, meat and sugar, showed food prices surging to above 2007/08 levels.
Higher food prices are set to push the index on Thursday to a record high in January for a second straight month.
The higher prices, together with political repression and growing inequality between the rich and poor, have fanned protests across the Middle East, including Egypt, Tunisia, Yemen, Algeria and Jordan.
In the run-up to the 2007-2008 food price crisis, the World Bank estimated that some 870 million people in developing countries were hungry or malnourished. The FAO estimates that number has increased to 900 million.
“We believe that while there are differences from the 2008 period, one core policy issue that is the same is that it looks like it will be a very tough year for the chronically malnourished,” Zoellick added.
Global Solutions Needed
The higher food and energy prices have stoked inflation in Asia, including Indonesia, South Korea and Thailand.
With French President Nicolas Sarkozy making commodity price volatility and reforms of the international monetary system his priorities for France’s presidency of the G-20 group of leading economies this year, Zoellick said it was important to come up with practical solutions to ensure people have access to nutritious food.
“2008 should have been a wake-up call, but I’m not yet sure all the countries in the world that we need to support this have woken up to it,” Zoellick said.
While calling for tougher regulation to head off the risk of food riots or slower economic growth, Sarkozy has also focused on improving physical market data.
Zoellick wants the G-20 to recognize a larger role for development banks, such as the World Bank, in changes dealing not only with the immediate needs of poor countries faced with higher food prices, but in improving agricultural productivity.
He said politicians in rich countries did not always recognize the political and economic challenges higher food prices posed to developing countries.
More expensive food can be disastrous to the poor because three-quarters of their income is spent on basic foodstuffs.
Food prices also typically account for about one-third to one-half of a consumer price index in developing countries. In developed countries, food makes up a small portion of the CPI.
Zoellick said the World Bank had reactivated its emergency financing facility for poorer countries dealing with the effects of higher food prices, although the impact on African countries of the latest increase has not been as severe.
He said concerns among African governments would grow if oil prices rose enough above their current levels to affect the cost of food transportation and fertilizers.
In a phone interview from Berlin, Zoellick called on G-20 global leaders to “put food first” to tackle the surge in prices and increased volatility threatening the poor and driving up inflation in developing countries, mainly in Asia.
“We are going to be facing a broader trend of increasing commodity prices, including food commodity prices,” Zoellick told Reuters.
“This can put pressure but also create opportunities,” he added, noting that developing nations could boost revenues by increasing food production to meet rising global demand.
He said increased consumer demand, especially for sugar and meat, in fast-growing emerging economies was a major factor pushing prices higher compared with the 2007-2008 crisis.
A mix of high oil and fuel prices, growing use of biofuels, bad weather and soaring futures markets pushed prices to record levels in 2007 and 2008, sparking violent protests in Africa.
Zoellick said the Food Price Index of the UN Food and Agriculture Organization, or FAO, which measures monthly prices changes for a food basket of cereals, oilseeds, dairy, meat and sugar, showed food prices surging to above 2007/08 levels.
Higher food prices are set to push the index on Thursday to a record high in January for a second straight month.
The higher prices, together with political repression and growing inequality between the rich and poor, have fanned protests across the Middle East, including Egypt, Tunisia, Yemen, Algeria and Jordan.
In the run-up to the 2007-2008 food price crisis, the World Bank estimated that some 870 million people in developing countries were hungry or malnourished. The FAO estimates that number has increased to 900 million.
“We believe that while there are differences from the 2008 period, one core policy issue that is the same is that it looks like it will be a very tough year for the chronically malnourished,” Zoellick added.
Global Solutions Needed
The higher food and energy prices have stoked inflation in Asia, including Indonesia, South Korea and Thailand.
With French President Nicolas Sarkozy making commodity price volatility and reforms of the international monetary system his priorities for France’s presidency of the G-20 group of leading economies this year, Zoellick said it was important to come up with practical solutions to ensure people have access to nutritious food.
“2008 should have been a wake-up call, but I’m not yet sure all the countries in the world that we need to support this have woken up to it,” Zoellick said.
While calling for tougher regulation to head off the risk of food riots or slower economic growth, Sarkozy has also focused on improving physical market data.
Zoellick wants the G-20 to recognize a larger role for development banks, such as the World Bank, in changes dealing not only with the immediate needs of poor countries faced with higher food prices, but in improving agricultural productivity.
He said politicians in rich countries did not always recognize the political and economic challenges higher food prices posed to developing countries.
More expensive food can be disastrous to the poor because three-quarters of their income is spent on basic foodstuffs.
Food prices also typically account for about one-third to one-half of a consumer price index in developing countries. In developed countries, food makes up a small portion of the CPI.
Zoellick said the World Bank had reactivated its emergency financing facility for poorer countries dealing with the effects of higher food prices, although the impact on African countries of the latest increase has not been as severe.
He said concerns among African governments would grow if oil prices rose enough above their current levels to affect the cost of food transportation and fertilizers.
India FMCG firms temporarily hit by Egypt crisis
Mumbai: The on-going political turmoil in Egypt has forced many Indian consumer companies to temporarily suspend operations, giving rise to fears that earnings might be affected in case of a protracted crisis.
Firms such as Marico, Dabur, Asian Paints have shut down their Egyptian units and are watching the situation closely, officials said.
For more than a week now, the African nation has been convulsed by street protests, demanding an immediate end to president Hosni Mubarak’s 30-year-rule.
“If the unrest in Egypt is resolved over the next few weeks, we would see a minor impact on business on the supply side. However, if it continues for a longer period of time then the slowdown in Egypt and the neighbouring economies could impact FMCG demand,” said an analyst with Edelweiss Capital.
Egypt has been quite attractive to Indian FMCG players as it offers tax cuts, preferential trade treaties, and speedy approvals for business, in addition to high growth.
Indian consumer firms have been tapping Africa of late as it opens up new growth avenues with rising costs and fierce competition at home squeezing profits.
Crisis Hits
“There have been mass demonstrations and disruption of public life (in Egypt). Consequently, we have temporarily closed Marico’s factories as a safety measure,” the company said in a filing to the stock exchange.
With Egypt as a manufacturing hub for the entire MENA (Middle East and North Africa) region, Marico said prolonged closure would impact supply to the entire region.
The MENA region accounts for 7-8% of Marico’ sales revenues. Its international business from Bangladesh, MENA and South Africa comprise 23% of the group’s turnover.
“We have initiated as a back-up measure, plans to supplement the MENA supply chain with supplies from India,” it said.
However, analysts said the cost of delivery would be a cause for worry if the firms look for exports from India or elsewhere.
Rival Dabur, which draws 2.5-3% of its revenues from Egypt, on Monday evening shut down its sole hair oil plant there that caters to local demand, a spokesman told Reuters.
“If the unrest is resolved over the next few days and weeks, we would not see much of any impact on business. However, if the unrest continues for a longer period of time, there might be some impact,” Dabur said in a statement.
“Dabur has manufacturing facilities in Nigeria and the UAE. For them it will be easier to source products from there,” Shirish Pardeshi, an analyst with Anand Rathi Securities, said.
Dabur’s international business spans the Middle East, North and West Africa, EU and the US through its brands Dabur and Vatika, and makes up about 16% of consolidated revenue.
Emami, which last week said it had acquired 90.59% in Pharma Derm SAE, said it will have to wait longer before it can start operations there, Prashant Goenka, director, international business said.
Paints maker Asian Paints shut operations at its two plants in Egypt from 29 January and will resume operations once normalcy returns, the company said in a statement.
About 5% of the company’s sales come from Egypt, analysts said.
“As of now it’s more of a sentimental impact. No one knows how long this uncertainty will continue and if it were to continue for long, it would surely have a significant impact on Indian businesses in Egypt,” Ambareesh Baliga, Vice-president, Karvy Stock Broking, said.
Firms such as Marico, Dabur, Asian Paints have shut down their Egyptian units and are watching the situation closely, officials said.
For more than a week now, the African nation has been convulsed by street protests, demanding an immediate end to president Hosni Mubarak’s 30-year-rule.
“If the unrest in Egypt is resolved over the next few weeks, we would see a minor impact on business on the supply side. However, if it continues for a longer period of time then the slowdown in Egypt and the neighbouring economies could impact FMCG demand,” said an analyst with Edelweiss Capital.
Egypt has been quite attractive to Indian FMCG players as it offers tax cuts, preferential trade treaties, and speedy approvals for business, in addition to high growth.
Indian consumer firms have been tapping Africa of late as it opens up new growth avenues with rising costs and fierce competition at home squeezing profits.
Crisis Hits
“There have been mass demonstrations and disruption of public life (in Egypt). Consequently, we have temporarily closed Marico’s factories as a safety measure,” the company said in a filing to the stock exchange.
With Egypt as a manufacturing hub for the entire MENA (Middle East and North Africa) region, Marico said prolonged closure would impact supply to the entire region.
The MENA region accounts for 7-8% of Marico’ sales revenues. Its international business from Bangladesh, MENA and South Africa comprise 23% of the group’s turnover.
“We have initiated as a back-up measure, plans to supplement the MENA supply chain with supplies from India,” it said.
However, analysts said the cost of delivery would be a cause for worry if the firms look for exports from India or elsewhere.
Rival Dabur, which draws 2.5-3% of its revenues from Egypt, on Monday evening shut down its sole hair oil plant there that caters to local demand, a spokesman told Reuters.
“If the unrest is resolved over the next few days and weeks, we would not see much of any impact on business. However, if the unrest continues for a longer period of time, there might be some impact,” Dabur said in a statement.
“Dabur has manufacturing facilities in Nigeria and the UAE. For them it will be easier to source products from there,” Shirish Pardeshi, an analyst with Anand Rathi Securities, said.
Dabur’s international business spans the Middle East, North and West Africa, EU and the US through its brands Dabur and Vatika, and makes up about 16% of consolidated revenue.
Emami, which last week said it had acquired 90.59% in Pharma Derm SAE, said it will have to wait longer before it can start operations there, Prashant Goenka, director, international business said.
Paints maker Asian Paints shut operations at its two plants in Egypt from 29 January and will resume operations once normalcy returns, the company said in a statement.
About 5% of the company’s sales come from Egypt, analysts said.
“As of now it’s more of a sentimental impact. No one knows how long this uncertainty will continue and if it were to continue for long, it would surely have a significant impact on Indian businesses in Egypt,” Ambareesh Baliga, Vice-president, Karvy Stock Broking, said.
Egypt forced us to send text messages: Vodafone
London : Vodafone says Egyptian authorities forced it to broadcast pro-government messages during the protests that have rocked the North African nation.
Micro-blogging site Twitter has been buzzing with screen grabs from Vodafone’s Egyptian customers showing pro-government text messages sent to them in the run-up to the violent clashes in central Cairo which broke out on Wednesday.
Vodafone Group PLC said in a statement Thursday that Egyptian authorities have been using the country’s emergency laws to script text messages to its customers.
The UK - based company said it had no ability to change the content of the messages. It called the practice “unacceptable” and said it has protested to Egypt’s authorities.
Micro-blogging site Twitter has been buzzing with screen grabs from Vodafone’s Egyptian customers showing pro-government text messages sent to them in the run-up to the violent clashes in central Cairo which broke out on Wednesday.
Vodafone Group PLC said in a statement Thursday that Egyptian authorities have been using the country’s emergency laws to script text messages to its customers.
The UK - based company said it had no ability to change the content of the messages. It called the practice “unacceptable” and said it has protested to Egypt’s authorities.
Journalists attacked, detained in Egypt protests
Cairo/Washington: The United States on Thursday condemned a “concerted campaign” to intimidate foreign reporters covering the protests against President Hosni Mubarak and said the Egyptian government must not target journalists.
Britain also criticized the harassment of journalists and Egyptian interference with the Internet and mobile networks.
Two reporters working for The New York Times were detained overnight and released on Thursday, the newspaper said.
The Washington Post’s Cairo bureau chief, Leila Fadel, and photographer Linda Davidson were detained while covering Thursday’s protests and were in the custody of the military police, said the newspaper’s foreign editor, Douglas Jehl.
“Any journalist that has been detained should be released immediately,” said White House spokesman Robert Gibbs, who reiterated that the time for political transition in Egypt was now. Gibbs said acts to intimidate the media were “completely and totally unacceptable.”
“There is a concerted campaign to intimidate international journalists in Cairo and interfere with their reporting. We condemn such actions,” State Department spokesman P.J. Crowley said in a statement issued via Twitter.
At least six people were killed and 800 wounded after gunmen and stick-wielding Mubarak supporters attacked demonstrators camped out for a 10th day on Cairo’s Tahrir Square to demand Mubarak end his 30-year rule.
“The abuse of Internet and mobile networks and, in particular, today’s increased intimidation and harassment of journalists are unacceptable and disturbing,” British Foreign Secretary William Hague said in a statement.
Mobile operator Vodafone said Egyptian authorities used its network to send out pro-government text messages.
Reuters television said one of its crews was beaten up on Thursday close to Tahrir Square while filming a piece about shops and banks being forced to shut during the clashes.
A Greek reporter was stabbed in the leg by Mubarak supporters and a photojournalist with him was beaten to the head, a Reuters witness said.
CNN’s Anderson Cooper said he and his crew were punched and kicked in Cairo by Mubarak supporters and escaped with just scratches as anti-government protests turned deadly on Wednesday.
The Committee to Protect Journalists said the attacks on foreign and Egyptian journalists were a government attempt at “blanket censorship” and intimidation by resorting to mobs.
“The Egyptian government is employing a strategy of eliminating witnesses to their actions,” Mohamed Abdel Dayem, Middle East and North Africa coordinator of the New York-based press watchdog, said in a statement on Wednesday.
“The government has resorted to blanket censorship, intimidation, and today a series of deliberate attacks on journalists carried out by pro-government mobs,” it said.
The Committee to Protect Journalists listed several reported assaults on or against Egyptian, Arabic and international media during violence sparked when Mubarak supporters charged at anti-government protesters in Tahrir Square. The army set up a buffer zone on Thursday between the two sides.
The Pentagon said officials were gathering details on the treatment of journalists in Egypt, but declined to point the finger at the military.
“To date, we have seen them act professionally and with restraint. Again, it’s a very fluid situation so we are watching every single day,” said spokesman Colonel Dave Lapan.
Britain also criticized the harassment of journalists and Egyptian interference with the Internet and mobile networks.
Two reporters working for The New York Times were detained overnight and released on Thursday, the newspaper said.
The Washington Post’s Cairo bureau chief, Leila Fadel, and photographer Linda Davidson were detained while covering Thursday’s protests and were in the custody of the military police, said the newspaper’s foreign editor, Douglas Jehl.
“Any journalist that has been detained should be released immediately,” said White House spokesman Robert Gibbs, who reiterated that the time for political transition in Egypt was now. Gibbs said acts to intimidate the media were “completely and totally unacceptable.”
“There is a concerted campaign to intimidate international journalists in Cairo and interfere with their reporting. We condemn such actions,” State Department spokesman P.J. Crowley said in a statement issued via Twitter.
At least six people were killed and 800 wounded after gunmen and stick-wielding Mubarak supporters attacked demonstrators camped out for a 10th day on Cairo’s Tahrir Square to demand Mubarak end his 30-year rule.
“The abuse of Internet and mobile networks and, in particular, today’s increased intimidation and harassment of journalists are unacceptable and disturbing,” British Foreign Secretary William Hague said in a statement.
Mobile operator Vodafone said Egyptian authorities used its network to send out pro-government text messages.
Reuters television said one of its crews was beaten up on Thursday close to Tahrir Square while filming a piece about shops and banks being forced to shut during the clashes.
A Greek reporter was stabbed in the leg by Mubarak supporters and a photojournalist with him was beaten to the head, a Reuters witness said.
CNN’s Anderson Cooper said he and his crew were punched and kicked in Cairo by Mubarak supporters and escaped with just scratches as anti-government protests turned deadly on Wednesday.
The Committee to Protect Journalists said the attacks on foreign and Egyptian journalists were a government attempt at “blanket censorship” and intimidation by resorting to mobs.
“The Egyptian government is employing a strategy of eliminating witnesses to their actions,” Mohamed Abdel Dayem, Middle East and North Africa coordinator of the New York-based press watchdog, said in a statement on Wednesday.
“The government has resorted to blanket censorship, intimidation, and today a series of deliberate attacks on journalists carried out by pro-government mobs,” it said.
The Committee to Protect Journalists listed several reported assaults on or against Egyptian, Arabic and international media during violence sparked when Mubarak supporters charged at anti-government protesters in Tahrir Square. The army set up a buffer zone on Thursday between the two sides.
The Pentagon said officials were gathering details on the treatment of journalists in Egypt, but declined to point the finger at the military.
“To date, we have seen them act professionally and with restraint. Again, it’s a very fluid situation so we are watching every single day,” said spokesman Colonel Dave Lapan.
Food prices triggering global unrest: UN
Rome: The United Nations food agency on Friday warned that record-high prices for basic commodities are generating unrest around the world and helped topple the Tunisian president last month.
“Not only is there a risk, but there have already been riots in some parts of the world because of rising prices,” Jacques Diouf, head of the UN’s Food and Agriculture Organisation (FAO), told reporters in Rome.
“Some governments have found themselves in difficult situations and there is even one that has fallen,” he said - a reference to the ousting of Tunisia’s Zine El Abidine Ben Ali in a popular revolt on 14 January.
The FAO on Thursday said food prices have reached their highest level since the UN agency began measuring them in 1990.
The FAO’s index measuring monthly variations for a variety of staples rose 3.4% from December 2010 to reach 231 points.
France, which has promised to stamp out food price volatility as the current head of the G20 group of leading world economies, warned of “hunger riots”.
“There is a real risk of hunger riots,” French agriculture minister Bruno Le Maire said at a joint press conference with Diouf.
Le Maire called for “structural measures” to avoid spikes in food prices, including greater transparency over production and stocks.
He said that G20 countries should agree on a system of food stocks that can be released for parts of the world that are most at risk.
“Speculation on hunger in the world is economically dangerous and morally unacceptable,” he said, referring to widespread criticism of the role played by financial speculators on global commodity markets.
A previous sharp rise in food prices in 2007 and 2008 triggered food riots in a number of African countries, as well as in Haiti and the Philippines.
The average for the FAO’s Food Price Index in 2008 was 200 points.
“Not only is there a risk, but there have already been riots in some parts of the world because of rising prices,” Jacques Diouf, head of the UN’s Food and Agriculture Organisation (FAO), told reporters in Rome.
“Some governments have found themselves in difficult situations and there is even one that has fallen,” he said - a reference to the ousting of Tunisia’s Zine El Abidine Ben Ali in a popular revolt on 14 January.
The FAO on Thursday said food prices have reached their highest level since the UN agency began measuring them in 1990.
The FAO’s index measuring monthly variations for a variety of staples rose 3.4% from December 2010 to reach 231 points.
France, which has promised to stamp out food price volatility as the current head of the G20 group of leading world economies, warned of “hunger riots”.
“There is a real risk of hunger riots,” French agriculture minister Bruno Le Maire said at a joint press conference with Diouf.
Le Maire called for “structural measures” to avoid spikes in food prices, including greater transparency over production and stocks.
He said that G20 countries should agree on a system of food stocks that can be released for parts of the world that are most at risk.
“Speculation on hunger in the world is economically dangerous and morally unacceptable,” he said, referring to widespread criticism of the role played by financial speculators on global commodity markets.
A previous sharp rise in food prices in 2007 and 2008 triggered food riots in a number of African countries, as well as in Haiti and the Philippines.
The average for the FAO’s Food Price Index in 2008 was 200 points.
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