 | Germany's HSH Nordbank to get cash injection
Germany's publicly owned HSH Nordbank is to receive a 3 billion euro cash injection from the regional governments of Hamburg and Schleswig-Holstein. The rescue package which was agreed on by regional state heads Peter Harry Carstensen and Ole von Beust at a Kiel cabinet meeting will also include 10 billion euros in state-backed guarantees. The two federal states will contribute equally to the fund, which still has to be ratified by parliament. The move to save the bank from collapse comes after the federal cabinet approved legislation to enable states to take control of ailing financial institutions. |  | | German business confidence hits all-time low
German business confidence has slipped more than forecast in February, to hit an all time low of 82.6 points. That's according to the closely watched Ifo business confidence index which is seen as an important indicator of the economic mood in Europe. Analysts had hoped for a smaller drop in confidence after a round of global interest rate cuts and big government stimulus packages. | | | AIG discussing potential changes to bailout
American insurer AIG looks set to make the biggest quarterly loss in corporate history, amid reports that the world's biggest insurer is once again on the brink of financial collapse. American International Group is looking to alter its $150 billion government loan while it continues to look for buyers for some of its operations. The Wall Street Journal reported Tuesday that under a proposed plan, the government's primary loan to AIG totaling $60 billion would be repaid with a combination of debt, equity, cash and stakes in operating businesses. On Monday, AIG said it was working with the Federal Reserve Bank of New York, which is handing the government loan, on alternatives to address its financial problems.
| | | US stocks rise after posting 12-year lows
US stocks opened higher Tuesday a day after Wall Street indexes plunged to their lowest close in nearly 12 years. The Dow Jones Industrial Average rose just over one percent to 7,196.58 at the opening bell after crashing a day earlier to its lowest close since May 1997. Japan's Nikkei Index was down over two and half percent in morning trading. | | | Obama pledges to halve budget deficit by 2013
US President Barack Obama has pledged to halve the country's federal budget deficit by the end of his four-year term in office. Speaking at the opening of a White House summit on fiscal responsibility on Monday, Obama warned that the US would face another economic crisis if it did not address its debt problems soon and with more transparency. Obama, who is scheduled to roll out his first budget on Thursday, inherited a 2008 budget deficit of 1.3 trillion dollars. Obama's new pledge to tackle soaring debt comes on the heels of an unprecedented 787-billion-dollar economic stimulus package designed to jump-start the flagging US economy. | | | Japan's Aso becomes first foreign leader to visit Obama
Japanese Prime Minister Taro Aso is set to meet US President Barack Obama in Washington later this Tuesday. He will be the first foreign leader to visit Obama at the White House. The leaders of the world's two largest economies are expected to discuss ways to jointly fight the global slowdown, as both Tokyo and Washington push through multibillion-dollar stimulus plans. Climate change, North Korea and security in Afghanistan and Pakistan are also expected to be on the agenda. Aso's trip follows Secretary of State Hillary Clinton's visit to Japan last week, her first destination as top US diplomat. | | | Pyongyang announces it will launch satellite
North Korea says it is preparing to launch a satellite into orbit. Pyongyang's space technology agency made the announcement following an earlier assertion by the government that it had the right to ‘space development.' Neighbours of the communist state and the US believe Pyongyang will actually be test-launching a long-range missile. The announcement, which unsettled financial markets in South Korea, follows weeks of increasing animosity between Pyongyang and Seoul. US Secretary of State Hillary Clinton on a trip to Asia last week, warned the North against any provocative moves.
| | | NASA global warming satellite suffers launch failure
A rocket carrying a NASA global warming satellite has landed in the ocean near Antarctica after an early morning launch failure. Speaking at a news conference, officials at Nasa called the satellite launch failure a huge disappointment. The mishap occurred shortly after the Taurus XL rocket carrying the Orbiting Carbon Observatory blasted off from California's Vandenberg Air Force Base. Launch managers said the payload fairing, which shelters the satellite, apparently failed to separate from the launch vehicle. | | | France, Italy sign nuclear cooperation deal
French President Nicolas Sarkozy and Italian Premier Silvio Berlusconi have signed an agreement for nuclear cooperation at the end of talks in Rome. The deal comes more than two decades after Italy decided to abandon nuclear energy in a referendum. The accord covers the construction of nuclear power plants, research and waste treatment. Meanwhile, energy giants EdF of France and Eni of Italy have signed a separate agreement for the construction of at least four third-generation EPR or European pressurised reactors in Italy.
| | | Fresh fighting kills 11 in Somali capital
At least 11 people have been killed and scores wounded in fresh fighting between Somali government forces and Islamist militants in the capital Mogadishu. Witnesses said heavily armed militants from the al-Shabaab group attacked government troops in the southern Taleh district, sparking an intense firefight. The rebels also attacked the presidential palace with mortar shells. The clashes are the heaviest in months and have marred efforts by President Sheikh Sharif Sheikh Ahmed, who was elected in January, to bring stability to the capital. The latest fighting broke out a day after he returned to Somalia from neighbouring Djibouti where he finalised the line-up of his new government. More than 16,000 civilians have been killed in the two-year-old insurgency, and about a million people have been forced from their homes. | | | Pro-Taliban militants agree to permanent truce in Swat Valley
Pro-Taliban militants in Pakistan have declared an indefinite ceasefire in the country's Swat valley. The announcement by militant leader Maulana Fazlullah follows a 10-day truce which had been due to expire on Wednesday. As part of the truce Islamabad has agreed to the enforcement of Sharia law in the region. The government earlier denied accusations it had caved in to extremists, saying the deal was designed to drive a wedge between conservative hardliners and those militants who are influenced by the al Qaeda and the Taliban. The Swat valley, which lies in Pakistan's North West Frontier Province, is on the frontline of the country's struggle against Islamist militancy. Hundreds of thousands of civilians have been forced to flee since the struggle between the Taliban and Pakistani security began in 2007. | | | Thaksin supporters march on Thai PM's office
Thousands of supporters of exiled former Prime Minister Thaksin Shinawatra have marched on Government House in Bangkok. They are demanding the dissolution of Parliament and snap elections. Prime Minister Abhisit Vejjajiva, who was appointed in December after a court order ousted Thaksin's allies, has refused to call an election. Demonstrators are planning to stage several days of peaceful protests. The rally in the Thai capital comes just days ahead of an annual summit of Southeast Asian leaders hosted by the prime minister at a seaside resort. | | | | |
Germany's Ailing HSH Nordbank Gets 3-Billion-Euro Cash Injection
