Monday, November 16, 2015

Euro sinks as safe havens rally after Paris attacks

Euro sinks as safe havens rally after Paris attacks

[TOKYO] The euro fell against its major peers in Asia Monday as dealers shifted back to safer investments after the deadly weekend terror attacks in Paris reinforced concerns about the impact on the already struggling eurozone economy.
The risk-off mood, also stoked by fresh data showing that Japan's economy slipped back into recession in the third quarter, weighed especially on the euro as foreign exchange markets opened for the first time since the attacks that killed at least 129 people.
The impact of the violence on the eurozone fuelled a fall in the single currency, which is already under pressure from expectations the European Central Bank will ramp up its stimulus programme to boost growth.
The euro slipped to US$1.0720 and 131.31 yen from US$1.0764 and 131.99 yen Friday in New York.
The dollar dropped to 122.50 yen from 122.62 yen in US trade.
"The euro is under pressure as markets see recent events as destabilising, and increase the uncertainty over the European economic outlook," Sam Tuck, a senior currency strategist at ANZ Bank New Zealand Ltd, told Bloomberg News.
"The yen is currently benefiting from its traditional 'safe haven' status." Dealers move into assets seen as less risky like the yen in times of uncertainty and turmoil.
Japan's economy, the world's number three in size, shrank 0.2 per cent in the July-September quarter, official data showed Monday, marking a second straight quarterly decline, or technical recession.
The dollar rallied against higher-yielding, or riskier, emerging units such as the South Korean won and the Indonesian rupiah.
The won fell 0.78 per cent against the greenback, while the rupiah was down 0.44 per cent and the Malaysian ringgit shed 0.34 per cent. The Thai baht and the Singapore dollar also dropped.
AFP

New attacks being prepared 'in France and elsewhere in Europe': French PM

New attacks being prepared 'in France and elsewhere in Europe': French PM

[PARIS] French Prime Minister Manuel Valls said Monday that authorities believe new terror attacks are being planned in France and in other European countries following the carnage in Paris.
"We know that operations were being prepared and are still being prepared, not only against France but other European countries too," he said.
France would be living with the threat of terror attacks "for a long time", he said.
Valls said he was struck by the fact that young people had been targeted in Friday's attacks on a concert hall, bars and restaurants and outside the Stade de France stadium that left 129 people dead.
"Once again the terrorists have attacked France, the French people, young people. Many young people are dead," he said.
AFP

Paris attacks: New York City police show muscle with new counter-terrorism team

Paris attacks: New York City police show muscle with new counter-terrorism team

[NEW YORK] New York City Police Commissioner Bill Bratton deployed a new counter-terrorism team on Monday, three days after the deadly attacks in Paris by militants he says will likely target his city next.
Bratton introduced 100 new members of the Police Department's Critical Response Command, who received special training. The Counter-terrorism Units' goal is foiling attacks, particularly by Islamist militants. "With this crucial additional capacity, we are the best-equipped city in America to deal with this proposed threat," Mr Bratton told the graduates of the training at the unit's headquarters on Randall's Island.
By the time it is fully staffed, the NYPD's counter-terrorism force will number 500 officers, Mr Bratton said.
In an interview with radio station AM 970 earlier in the day, Mr Bratton said the city was on high alert after the carnage in Paris on Friday night. "We remain one of the most significant terrorism targets in the world today," the commissioner said.
The New York Police Department has foiled numerous plots against the city since the Sept 11, 2001, attacks by al Qaeda operatives that brought down the World Trade Centre and killed nearly 3,000 people.
Mr Bratton said much has changed in the 14 years since then.
The emergence of Islamic State, which claimed responsibility for killing at least 129 people in the Paris attacks, has presented a new set of challenges for local police.
One of the top concerns is the group's use of sophisticated mobile applications for communications that police cannot intercept, Mr Bratton said.
Police are also concerned about the ability of Islamic State, which is known for using social media for outreach and recruitment, to inspire so-called "lone wolf" attackers.
"The technology has leapfrogged," said Mr Bratton, who said he spends about 40 per cent of his job strategising to avert attacks.
REUTERS

World leaders back drive for Paris climate deal

World leaders back drive for Paris climate deal

[ANTALYA, Turkey] Leaders of the world's top economies on Monday backed a drive to curb catastrophic climate change at an upcoming UN conference in Paris, according to a statement drawn up in tough, all-night talks.
Negotiators at a Group of 20 summit in Turkey haggled into the early hours as Saudi Arabia and India initially refused to include specific goals such as limiting global warming to less than two degrees Celsius (3.6 Farenheit) above pre-industrialised levels, sources said.
France, backed by the European Union, is working furiously to make the climate talks a success and Paris officials bristled at the reluctance of some countries to include its basic objectives in the statement.
"Climate change is one of the greatest challenges of our time," said the communique marking the end of the summit in the Turkish resort of Antalya.
"We reaffirm the below 2C degree climate goal," it said, underlining a "determination" to adopt a deal with legal force.
The blockbuster climate meeting will assemble 195 countries outside Paris from November 30 to December 11 in a bid to reach a post-2020 pact to try to stem global warming.
The 2C goal has guided the long-running talks - held under the auspices of the UN Framework Convention on Climate Change - since 2009.
France is eager to avoid the fate of the Copenhagen talks in 2009 that also sought to craft a world climate rescue pact, but ended in near-fiasco amid splits between rich and emerging countries.
"At a certain point there was a feeling that we were not living on the same planet," an exhausted European negotiator told reporters after more than 20 hours of talks with his G20 counterparts.
"The idea was to just state that the G20 countries will be committed to a regular process, to get to the numbers of the target, with regular steps, that was the idea. This is common sense," he said.
Activists said the statement still offered nothing new and criticised a worrying lack of leadership just two weeks ahead of the Paris talks.
"They have done nothing to bring the 20 most powerful countries in the world closer to consensus," said John Kirton, co-director of the G20 Research Group at the University of Toronto.
Observers denounced the failure of the G20 leaders to offer details on financing for developing countries to make the transition to clean energy.
Developing nations are looking to rich countries to show how they intend to meet a promise made in 2009 to mobilise US$100 billion (92 billion euros) per year in climate finance from 2020.
The funds will help poorer economies make the shift from cheap and abundant fossil fuels to renewable energy sources, and shore up national defences against climate change-induced superstorms, drought, floods and sea-level rise.
France insists this will be key to getting an agreement in December.
It is "difficult" to see success in Paris "without climate finance on the table," said Tristram Sainsbury, analyst at Lowy Institute in Sydney. "That is the big elephant in the room for the G20," he said.
AFP

Vowing to destroy terrorism, France seeks global coalition against Islamic State

Vowing to destroy terrorism, France seeks global coalition against Islamic State

[PARIS] French President Francois Hollande called on the United States and Russia to join a global coalition to destroy Islamic State in the wake of the attacks across Paris, and announced a wave of measures to combat terror in France. "France is at war," Hollande told a joint session of parliament at the Palace of Versailles, promising to increase funds for national security and strengthen anti-terror laws in response to the suicide bombings and shootings that killed 129. "We're not engaged in a war of civilisations, because these assassins do not represent any. We are in a war against jihadist terrorism which is threatening the whole world," he told a packed, sombre chamber.
Parliamentarians gave Hollande a standing ovation before spontaneously singing the "Marseillaise" national anthem in a show of political unity following the worst atrocity France has seen since World War Two.
Islamic State has claimed responsibility for Friday's coordinated attacks, saying they were in retaliation for France's involvement in US-backed air strikes in Iraq and Syria.
Hollande pledged that French fighter jets would intensify their assaults and said he would meet US President Barack Obama and Russian President Vladimir Putin in the coming days to urge them to pool their resources. "We must combine our forces to achieve a result that is already too late in coming," the president said.
The US-led coalition has been bombing Islamic State for more than a year. Russia joined the conflict in September, but Western officials say it has mainly hit foreign-backed fighters battling Syrian President Bashar al-Assad, not Islamic State.
Speaking in Turkey at the same time as Hollande, Obama called Friday's attacks a "terrible and sickening setback", but maintained that the US-led coalition was making progress. "Even as we grieve with our French friends ... we can't lose sight that there has been progress," Obama said at a Group of 20 summit, ruling out sending in ground troops.
US Secretary of State John Kerry arrived in Paris late on Monday to pay respects to those killed in the attacks and stress Washington's support for the toughened French stance. He is due to meet Hollande on Tuesday morning.
Much of France came to a standstill at midday for a minute's silence to remember the dead, many of whom were young people killed as they enjoyed a night out. Metro trains stopped, pedestrians paused on pavements and office workers stood at their desks.
But in a sign of life slowly returning to normal, schools and museums re-opened after a 48-hour shutdown, as did the Eiffel Tower, which lit up the night sky in the red, white and blue colours of the French flag following two days of darkness.
Investigators have identified a Belgian national living in Syria as the possible mastermind behind the attacks, which targeted bars, restaurants, a concert hall and soccer stadium. "Friday's act of war was decided upon and planned in Syria, prepared and organised in Belgium and carried out on our territory with the complicity of French citizens," said Hollande.
Prosecutors have identified five of the seven dead assailants - four Frenchmen and a foreigner fingerprinted in Greece last month. His role in the carnage has fuelled speculation that Islamic State took advantage of a recent wave of refugees fleeing Syria to slip militants into Europe.
Police believe one attacker is on the run, and suspect at least four people helped organise the mayhem. "We know that more attacks are being prepared, not just against France but also against other European countries,"French Prime Minister Manuel Valls told RTL Radio. "We are going to live with this terrorist threat for a long time." Islamic State warned in a video on Monday that any country hitting it would suffer the same fate as Paris, promising specifically to target Washington.
French Interior Minister Bernard Cazeneuve told reporters police had arrested nearly two dozen people and seized arms, including a rocket launcher and automatic weapons, in 168 raids overnight. "Let this be clear to everyone, this is just the beginning, these actions are going to continue," he said.
Hollande said he would create 5,000 jobs in the security forces, boost prison service staff by 2,500 and avoid cuts to defence spending before 2019. He acknowledged this would break EU budget rules, but said national security was more important.
He also said he would ask parliament to extend for three months a state of emergency he declared on Friday, which gives security forces sweeping powers to search and detain suspects.
MANHUNT A source close to the investigation said Belgian national Abdelhamid Abaaoud, currently in Syria, was suspected of having ordered the Paris operation. "He appears to be the brains behind several planned attacks in Europe," the source told Reuters.
RTL Radio said Abaaoud was a 27-year-old from the Brussels district of Molenbeek, home to many Muslim immigrants and a focal point for Islamist radicalism in recent years.
Police in Brussels have detained two suspects and are hunting Salah Abdeslam, a 26-year-old Frenchman based in Belgium. One of his brother's died in the Paris assault, while a third brother was arrested at the weekend but later released.
Police in France named two of the French attackers as Ismael Omar Mostefai, 29, from Chartres, southwest of Paris, and Samy Amimour, 28, from the Paris suburb of Drancy.
France believes Mostefai, a petty criminal who never served time in jail, visited Syria in 2013-2014. His radicalisation underlined the trouble police face trying to capture an elusive enemy raised in its own cities. "He was a normal man," said Christophe, his neighbour in Chartres. "Nothing made you think he would turn violent." Latest official figures estimate that 520 French nationals are in the Syrian and Iraqi war zones, including 116 women. Some 137 have died in the fighting, 250 have returned home and around 700 have plans to travel to join the jihadist factions.
The man stopped in Greece in October was carrying a Syrian passport in the name of Ahmad Al Mohammad. Police said they were still checking to see if the document was authentic, but said the dead man's fingerprints matched those on record in Greece.
Greek officials said the passport holder had crossed from Turkey to the Greek islands last month and then registered for asylum in Serbia before heading north, following a route taken by hundreds of thousands of asylum seekers this year.
His role in the mission has re-ignited a fierce debate in Europe about how to tackle a continuing influx of refugees, with anti-immigrant parties calling for borders to be closed against the flood of newcomers fleeing the Middle East.
Meanwhile climate change activists met in Paris on Monday and reaffirmed their determination to hold a demonstration in the city on Nov 29, the day before a UN summit aimed at reducing global greenhouse gas emissions.
Organisers of the march expressed sympathy for the victims of Friday's attacks, but said the goals of the climate movement were synonymous with opposition to violence and terror. However, the green groups require permission to assemble from French authorities, who have signalled concerns about being able to guarantee safety. The two sides will meet on Tuesday for talks.
REUTERS

France will intensify operations in Syria: Hollande

France will intensify operations in Syria: Hollande

[VERSAILLES, France] France will step up strikes in Syria where Friday's shootings and suicide bombings in Paris had been planned, President Francois Hollande said on Monday.
In an extraordinary address to both houses of parliament, Hollande called on the United Nations Security Council to rapidly issue a resolution against terrorism. "In the meantime, France will intensify its operations in Syria," Hollande said, describing the country as "the biggest factory of terrorists the world has known".
REUTERS

G20 leaders stick to goal to boost growth by extra 2%: final communique

G20 leaders stick to goal to boost growth by extra 2%: final communique

[BELEK, Turkey] The leaders of the world's largest economies remain committed to a goal of lifting their collective output by an additional 2 per cent by 2018, they said in a statement on Monday, even though growth remains uneven and weaker than expected globally.
In their final communique from a summit in Turkey, the leaders of the Group of 20 (G20) also said they would "carefully calibrate" and "clearly communicate" policy decisions, a nod to the sensitivity of financial markets, which have seen dramatic moves this year on expectations of a US interest rate hike.
The communique, largely unchanged from the draft document reported by Reuters on Sunday, also emphasised previous exchange rate commitments and pledges to resist protectionism. "We remain committed to achieving our ambition to lift collective G20 GDP by an additional 2 per cent by 2018," the leaders said.
"Our top priority is timely and effective implementation of our growth strategies that include measures to support demand and structural reforms."
REUTERS

Islamic State threatens attack on Washington, other countries

Islamic State threatens attack on Washington, other countries

[CAIRO] Islamic State warned in a new video on Monday that countries taking part in air strikes against Syria would suffer the same fate as France, and threatened to attack in Washington.
"We say to the states that take part in the crusader campaign that, by God, you will have a day God willing, like France's and by God, as we struck France in the centre of its abode in Paris, then we swear that we will strike America at its centre in Washington," one man in the video said.
It was not immediately possible to verify the authenticity of the video.
REUTERS

Paris attacks reveal Belgium as the heart of European terror

Paris attacks reveal Belgium as the heart of European terror

[BRUSSELS] The deadly violence in Paris on Friday is the latest in a series of attacks with strong links to Belgium, adding to mounting evidence the country has become one of the main havens for radicalised young men intent on terrorising Europe.
As French investigators try to piece together the identity of radical networks responsible for the bloodiest act of terrorism in Europe in a decade, it emerged that two of the killers were Frenchmen who had been living in Belgium. Since Friday night's attacks, police have detained seven other people in Brussels who they suspect have links to the atrocity.
"Recruiting networks center around Belgium," David Gartenstein-Ross, a counter-terrorism specialist at the US-based Foundation for Defense of Democracies, said by telephone on Sunday. Authorities will be questioning "whether militants consider Belgium to be a more permissive environment" and whether there is "a community of extremists who can move relatively undetected."
Wedged between the euro area's two largest economies of France and Germany, Belgium has for decades been best known for its chocolate shops and breweries, attracting tens of thousands of tourists every year to its cobbled streets and sidewalk cafes. Now it's facing up to a grim new reality: the country also is a playground for terrorists.
"The terrible attacks that were directed against us on Friday were prepared abroad by a group of individuals based in Belgium who, as the investigation will show, benefited from accomplices in France," French Interior Minister Bernard Cazeneuve said in Paris on Sunday.
Even before Friday's attacks that killed at least 129 people, governments and counter-terrorism authorities were pointing fingers at Belgium. At the start of the year, Belgian prosecutors said they suspected that at least one of the gunmen who killed 17 people in three days of attacks in and around the French capital, including nine journalists at satirical magazine Charlie Hebdo, had been in contact with an arms dealer in Belgium.
Later that month, Belgian police killed two suspected terrorists and arrested a third in a shootout in the eastern town of Verviers that they said prevented a major attack on law- enforcement officers.
In August, a Moroccan gunman was overpowered by passengers on a train en route to Paris. The man had spent some time in Brussels and had gotten on board in the Belgian capital with a backpack containing a Kalashnikov rifle, an automatic pistol, ammunition and a knife. He was known to Belgian intelligence services, the government said.
"In the past year, we've had about every single month an attack or a foiled plot either in Belgium or France, which shows we've entered another chapter in European history in which stronger efforts to cooperate and share intelligence will be key," Belgian Prime Minister Charles Michel told public broadcaster RTBF on Saturday.
Belgian authorities stepped up security and intelligence- gathering last year after a French gunman killed four people at Brussels' Jewish Museum. Investigators said the assailant had spent most of 2013 in Syria and prepared his attack from a furnished rental room in the Brussels district of Molenbeek.
"We try to have a clear vision of the networks, and try to eradicate that," Belgian Foreign Minister Didier Reynders told reporters in Brussels on Monday.
The Belgian government says 400 people have left the country to fight in Syria, which represents the largest proportion per capita of any European country, according to the London-based International Center for the Study of Radicalisation. Of those who have already returned, many are "very dangerous" and came back "on a mission," Belgian Interior Minister Jan Jambon told an audience in Brussels last week.
Many more fail in their attempt to make it to Syria to fight with ISIS but find "they can do it here in Belgium" instead, Mr Jambon said.
The Belgian federal prosecutor's office said two of the killers who died in Friday's attacks have been identified as French citizens who lived in Brussels. A total of seven people in Belgium are being held in connection with the Paris attacks, the prosecutor's office said. French police said on Sunday they were searching for 26-year-old Belgium-born Abdeslam Salah in connection with the attacks. A road patrol may have stopped and checked a car containing Salah and let him go, prosecutors said late Sunday.
Two cars licensed in Belgium were found near the attack sites in Paris, Belgian prosecutors said. They had been rented in Brussels at the start of the week. A person who had rented one of the autos was detained by police on Saturday after being spotted on the A2 freeway driving from France to Belgium, according to the prosecutor's office.
Belgian police were carrying out a new operation in Molenbeek Monday morning, including police special forces, Belga newswire reported.
While authorities across language-divided Belgium have had some success in preventing radicalization and stopping men traveling to Syria, there is still a problem in Brussels itself. Part of that is down to the structure of policing, Mr Jambon said last week.
"Brussels is a relatively small city, 1.2 million," he said at an event organised by Politico. "And yet we have six police departments, 19 different municipalities. New York is a city of 11 million. How many police departments do they have? One." Mr Jambon, who met with France's Cazeneuve on Sunday in Paris, told VRT television that when it came to preventing radicalism, some local authorities in Brussels "have been rather lax in this respect for many years."
BLOOMBERG

MasterCard sees double-digit growth in China on e-commerce: executive

MasterCard sees double-digit growth in China on e-commerce: executive

A sign with a logo of MasterCard is seen on the door of a branch of Sberbank in Stavropol January 13, 2015.  REUTERS/Eduard Korniyenko Thomson ReutersSign with a logo of MasterCard is seen on the door of a branch of Sberbank in Stavropol
By Eveline Danubrata
MANILA (Reuters) - Global payment operator MasterCard Incsees double-digit annual growth in credit card transaction volumes in China, lifted by the booming e-commerce industry in the world's second-largest economy, a senior executive told Reuters on Monday.
China's plan to open up its domestic transactions market to foreign companies such as MasterCard would be a "game-changer", Ling Hai, co-president for Asia Pacific, said in an interview on the sidelines of the Asia-Pacific Economic Cooperation summit.
MasterCard's current business in China is mostly handling cross-border transactions when international travelers come to China or when Chinese cardholders go overseas. The domestic market has long been dominated by state-backed China UnionPay.
"That's going to change with China opening up. We will be able to process domestic transactions just like a domestic national player," Ling Hai said, adding that the timeline for this move remains unclear.
"If you truly gain full access and get it right, China is a game-changer," he said. "China is the future in terms of consumer market. It will contribute a great deal in terms of spending and volume."
Underscoring the potential of China's consumers, Alibaba Group Holding Ltd's total value of goods transacted during its Singles' Day shopping festival reached 91.2 billion yuan ($14.32 billion).
MasterCard has already processed "millions" of transactions for Alibaba and Chinese online payment service Tenpay in the cross-border space, Ling Hai said. "The development of e-commerce is our best friend," he added.
(Reporting by Eveline Danubrata\; Editing by Miral Fahmy)
Read the original article on Reuters. Copyright 2015. Follow Reuters on Twitter.

Marriott is buying Starwood for $12.2 billion, creating the world's largest hotel company

Marriott is buying Starwood for $12.2 billion, creating the world's largest hotel company

marriottm01229/flickr
Marriott International is acquiring Starwood Hotels & Resorts, creating the world's largest hotel company.
The deal is valued at $12.2 billion, consisting of $11.9 billion worth of Marriott stock and $340 million in cash. For each share of stock, Starwood investors will receive $2.00 in cash and 0.92 shares of Marriott, with Marriott priced at $72.08 per share.
Marriott (MAR) closed Friday at $72.74. Starwood (HOT) closed at $75.00.
Combined, the company will be able to offer 1.1 million rooms in more than 5,500 hotels across more than 100 countries.
"Marriott expects to deliver at least $200 million in annual cost savings in the second full year after closing," the announcement read. "This will be accomplished by leveraging operating and G&A efficiencies."
"This is an opportunity to create value by combining the distribution and strengths of Marriott and Starwood, enhancing our competitiveness in a quickly evolving marketplace," Marriott CEO Arne Sorenson said. "This greater scale should offer a wider choice of brands to consumers, improve economics to owners and franchisees, increase unit growth and enhance long-term value to shareholders."
Sorenson will remain president and CEO of the combined company.
The deal will come with $100 million to $150 million in one-time transaction costs, which the company expects to incur over the next two years.
Marriott will not be acquiring the entirety of Starwood's current business. Starwood will first spin off its timeshare business.
"Starwood shareholders will separately receive consideration from the spin-off of the Starwood timeshare business and subsequent merger with Interval Leisure Group, which has an estimated value of approximately $1.3 billion to Starwood shareholders or approximately $7.80 per Starwood share, based on the 20-day [volume-weighted average price] of Interval Leisure Group stock ending November 13, 2015," management said. "The timeshare transaction should close prior to the Marriott-Starwood merger closing."
Deutsche Bank served as adviser to Marriott. Lazard and Citigroup served as advisers to Starwood.
"I'm delighted to welcome Starwood to the Marriott family," Marriott chairman J.W. Marriott Jr. said.

Japan enters recession

Japan enters recession

Japan Q3 GDP 2015.
For a second consecutive quarter, Japan’s economy has contracted.
According to data released by the government this morning, the economy contracted 0.2% in the three months to September, missing expectations for a decline of 0.1%. The contraction left the seasonally adjusted annualised rate at -0.8%, below the 0.2% fall expected.
Having contracted by 0.7% in the June quarter, up from the 1.6% decline originally reported, the economy is now in a technical recession.
Over the quarter private demand fell 0.5%, slicing 0.3ppts from growth. A sharp drawdown in inventories, wiping 0.5ppts from the quarterly figure, along with a 1.3% decline in private nonresidential investment which detracted 0.2ppts, overshadowed a 0.5% increase in consumption which contributed 0.3ppts to growth.
Elsewhere government spending neither added nor contracted from growth with a 0.3% increase in consumption offset by a 0.3% decline in investment.
International trade contributed 0.1ppts to growth as a 2.6% lift in exports overshadowed a 1.7% increase in imports.
Although a weak outcome, sending the economy back into recession for the first time since the September quarter last year, much of the quarterly weakness was due to a sharp drawdown in inventory levels along with persistent weakness in business investment. In what is an encouraging outcome, private consumption, making up around 60% of the Japanese economy, rebounded by 0.5% having fallen heavily in the three months to June.
The market reaction to the news has been muted, with events in Paris over the weekend largely dictating movements in both the Japanese yen and Nikkei. 30 minutes after the GDP report was released the USD/JPY is currently buying 122.44, down 0.15%, while the Nikkei 225 is lower by 1.29% having been down close to 2% earlier in the session.
Read the original article on Business Insider Australia. Copyright 2015.

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