O’FALLON, MO.
President Ollanta Humala declared a 60-day state of emergency Sunday in a northern region wracked by protests against a highlands gold mine, the country’s biggest investment, by peasants who fear for their water supply.
The emergency restricts civil liberties such as the right to assembly and allows arrests without warrants in four provinces of Cajamarca state that have been paralyzed for 11 days by increasingly violent protests against the $4.8-billion Conga gold-and-copper mining project. U.S.-based Newmont Mining Corp. is the project’s majority owner.
Dozens have been injured in clashes between police and protesters, some of whom have vandalized Conga property. The general strike also shuttered schools and snarled transportation as protesters mounted roadblocks.
Humala said in a brief televised address Sunday night that protest leaders had shown no interest “in reaching minimal agreements to permit a return of social peace” after a day of talks in Cajamarca with Cabinet chief Salmon Lerner and three other ministers.
Humala said the government “has exhausted all paths to establish dialogue as a point of departure to resolve the conflict democratically” and blamed “the intransigence of a sector of local and regional leaders.”
He said the emergency would take effect at midnight Sunday.
Lerner’s group was accompanied by Peru’s military and police chiefs and guarded by hundreds of heavily armed police.
Cajamarca state’s governor, Gregorio Santos, who has been leading the protests, called Humala’s announcement an unnecessary provocation. He said protest leaders had been planning to end the strike and had asked government officials for 12 hours to consult with protesters.
“I think what’s being sought is for this to end in a bloodbath,” Santos told The Associated Press by telephone. Police have already used tear gas and bullets against protesters.
“We will continue with our fight,” Santos added, without specifying how.
Local elected officials have led protests against Conga, an extension of the nearby Yanacocha mine, for more than a month.
They say they fear it will taint and diminish water supplies affecting thousands and have demanded a new study of the environmental impact of the mine, which was to begin production in 2015.
Peruvian government officials have expressed no intention of redoing Conga’s environmental impact study, which was approved by the Ministry of Mining in October 2010.
Those plans call for displacing four lakes more than two miles high and replacing them with reservoirs. Local residents say they fear that could affect an important acquifer on which thousands depend.
Several weeks ago, the Interior Ministry asked prosecutors to file criminal charges against Santos and four other local leaders who have led protests against Conga, a top ministry lawyer, Julio Talledo, told The Associated Press.
The charges include “hindering the functioning of public services” and carry prison terms of at least two years. It was not immediately clear whether prosecutors have acted on them.
The streets of the regional capital, Cajamarca, and the city of Celendin, a flashpoint of protests, were empty Sunday night after Humala’s announcement but people remained tense, local police told the AP by phone. Local reporters reported seeing busloads of soldiers and police with assault rifles arriving in recent days.
Cajamarca police duty officer Miguel Vigil said police commanders were meeting to plan their next steps.
“We can’t yet say what measures will follow,” he said.
Newmont announced last week that it was suspending work at Conga until order could be restored.
Its chief executive, Richard O’Brien, said in a statement then that if Newmont was unable to continue with Conga, “the scale and diversity of Newmont’s global portfolio” would allow the Denver-based company to “reprioritize and reallocate capital” to “alternatives in Nevada, Canada, Ghana, Indonesia and Suriname.”
Humala told Cajamarca residents during campaign swings before his June election that clean water was more important for him than gold. Many local inhabitants said they now feel betrayed by the president.
Peru’s economy depends heavily on mining, which accounts for 61 percent of its export income.
Humala, a former radical leftist who moved toward the center before being elected this year, agreed to a tax on windfall profits from the industry that the government says will yield about $1 billion a year to help fund social programs.
One protest leader, Milton Sanchez, told the AP on Sunday night that “this government that has put itself on the side of mining companies and distanced itself from its electoral promises.”
“We are not radical,” he added. “It’s just that the Conga project has not legitimacy in the eyes of the people.”
Stocks are opening slightly lower, a day after the market had its best day in two and a half years.
Another rise in applications for unemployment benefits last week set a negative tone on Wall Street. The increase is a sign of weakness in the labor market because people are still being laid off.
Minutes after the opening bell Thursday, the Dow Jones industrial average was down 29 points, or 0.2 percent, at 12,016.
The Dow had soared 490 the day before, its biggest gain since March 2009, after central banks around the world slashed borrowing costs to shore up the global financial system installment payday loans.
The S&P 500 was down 4, or 0.3 percent, at 1,243. The Nasdaq fell 7, or 0.3 percent, to 2,613.
India’s commerce minister said Friday that the decision to open the country’s $400 billion retail sector to global chains such as Wal-Mart has a built-in safety net for small shops and farmers.
Anand Sharma told reporters that the Indian cabinet’s decision late Thursday allowing 51 percent foreign ownership of supermarkets would vastly improve decrepit infrastructure that causes massive food waste in a country plagued by malnutrition and high inflation.
Sharma said the new rule would only apply in cities with more than one million people. The minimum investment would be $100 million and half of this would have to be invested in rural infrastructure and refrigerated transport and storage. Thirty percent of the produce sourced by the retailer would also have to come from small and medium enterprises.
Top retailers such as Wal-Mart and Tesco have lobbied for years for a chance to build stores in the nation of 1.2 billion people and political deadlock on long-promised reforms in retail and other areas has helped cool foreign investor interest in India. Foreign retailers have Indian partners in wholesale operations, but no retail stores.
The Cabinet also allowed 100 percent foreign ownership of single-brand retail operations, up from 51 percent.
Advocates see the move as a way to strengthen India’s creaking food distribution system.
The country suffers chronically high malnutrition and soaring inflation, but it’s not for lack of food. It is the world’s second largest grower of fresh produce, yet loses an estimated 40 percent of fruit and vegetables to rot because of a lack of refrigerated trucking and warehouses, poor roads, inclement weather and corruption. That translates into lower incomes for farmers and higher prices for consumers.
If companies like Wal-Mart and Tesco can open shops of their own, the investments they make in improving farming techniques and getting produce into stores more efficiently, could bring down food inflation and possibly improving rural incomes.
Sharma said the policy would have a “multiplier effect” and tens of millions of people would gain jobs.
Analysts say India’s darkening economic prospects gave fresh urgency to the decade-long talks on opening up India’s retail sector. Many see Thursday’s move as an attempt by the ruling Congress Party to reassert its leadership, which has been weakened by corruption scandals, soaring inflation and slowing growth.
“When the government’s credibility seems to be under significant question, this is one way to give a message that the government is still in business and it means business,” said Arvind Singhal, chairman of retail consultancy Technopak Advisors.
The cabinet this month also indicated that it is open to allowing 26 percent foreign investment in pension fund management _ another headline item in the Congress Party’s promised second wave of economic reforms, which follow a round of liberalization forced by a balance of payments crisis in the early 1990s.
The central bank has raised interest rates by 5.25 percentage points over the last 18 months but that hasn’t been enough to control runaway inflation or the rupee’s freefall. Food inflation, which quickly becomes a political issue in India, has been bouncing into the double digits since 2008 and now stands at 9.1 percent.
“Monetary policy interventions have not been able to control inflation,” Singhal said. “Now they have to look into supply side policy, which could have an impact.”
International investors, who have grown increasingly wary of corruption, surprise tax bills and shifting regulations in India, have also put pressure on the government to make good on old promises to grant them greater access.
Rajan Bharti Mittal, vice chairman and managing director of Bharti Enterprises, said Friday that the retail move was a “major landmark in India’s economic reforms process.”
Bharti’s joint venture with Wal-Mart has 13 wholesale outlets in India and sources produce from thousands of farmers.
“We have always stated that development of organized retail in India will bring immense benefits across the value chain _ from farmers to small manufacturers and above all to consumers, while creating enormous employment opportunities at the bottom of the pyramid,” Mittal said in a statement.
Wal-Mart, British-based Tesco PLC and French-based retailer Carrefour welcomed the decision.
“This legal evolution should contribute to modernize the Indian food supply chain and to fight against food inflation for the benefit of Indian customers,” Carrefour said in a statement.
The change, which does not require approval by India’s fractious Parliament, was opposed by the Trinamool Congress Party, a key partner in the ruling coalition, and the main opposition BJP party. The country has struggled to find consensus because of concerns that competition from the foreign retail giants could hurt millions of small shopkeepers, as well as the poor.
Sharma said the new policy had been reached through a “transparent and democratic process of consultation with all the stake holders.”
India’s $400 billion retail sector is the nation’s second-largest employer, after agriculture, according to consulting firm Deloitte.
Ashish Sanyal, managing director of retailing consultancy AMP Retail Services, said small businesses had nothing to fear from the big chains.
“At the end of the day this is like the high tide. All boats will rise. We will learn from the big retailers,” he said.
A judge on Monday blocked a federal requirement that would have begun forcing tobacco companies next year to put graphic images on their cigarette packages to show the dangers of smoking.
U.S. District Judge Richard Leon ruled that it’s likely the cigarette makers will succeed in a lawsuit claiming the images violate the free speech amendment to the Constitution. He stopped the requirement until the lawsuit is resolved, which could take years.
Leon held a hearing on the case in September and questioned the Justice Department about whether the nine graphic images approved by the Food and Drug Administration in June convey just the facts about the health risks of smoking or go beyond that into advocacy _ a critical distinction in a case over free speech.
The images include a cloud of cigarette smoke within inches of a baby’s face; a pair of healthy lungs next to the diseased lungs of a smoker and a warning that smoking causes fatal lung disease; a smoker’s stained teeth and a lip diseased by cigarettes; and a dead smoker on an autopsy table with surgical stitches in his chest and the words “Smoking can kill you.”
The FDA requirement said the labels were to cover the entire top half of cigarette packs, front and back and include a number for a stop-smoking hotline. The labels were to constitute 20 percent of cigarette advertising, and marketers were to rotate use of the images.
The Justice Department argued the images coupled with written warnings were designed to communicate the dangers to youngsters and adults. The FDA declined to comment on the judge’s ruling.
Tobacco companies are increasingly relying on their packaging to build brand loyalty and grab consumers. It’s one of few advertising levers left to them after the government curbed their presence in magazines, billboards and TV, and the graphic labels could cost them millions in lost sales and increased packaging costs.
The cigarette makers that sued the FDA are R.J. Reynolds Tobacco Co. of Winston-Salem, N.C., Lorillard Tobacco Co. of Greensboro, N.C., Commonwealth Brands Inc. of Bowling Green, Ky., Liggett Group of Mebane, N.C., and Santa Fe Natural Tobacco Co. of Santa Fe, N.M.
Buses, metro trains, trams and taxis were not running in the Greek capital Friday, snarling traffic as public transport workers striked for a second day in an unrelenting barrage of protests against government austerity measures.
Finance Minister Evangelos Venizelos criticized the repeated strikes and protests, which have included the take-over of government buildings and risk slowing reforms the country needs to qualify for bailout loans.
“This is a challenge at the heart of democracy,” the minister said in Parliament, adding that “the image there has been in the last few weeks is one of lawlessness,” and that blackmail was different from fighting for people’s rights.
Venizelos said the government was prepared to assume the political cost of pushing through unpopular but necessary austerity measures.
Taxi drivers on Friday joined the second day of a 48-hour public transport strike, leaving private cars and motorcycles as the only form of transport in the Greek capital, while lawyers walked off the job until Oct. 19 and customs officers for 10 days. On Thursday, power company unionists occupied the electricity company’s billing facility in an effort to prevent the issuing of electricity bills which include a new property tax.
A wave of strikes is expected next week, with seamen leaving ferries tied up at ports for two days from Monday and hospital doctors and teachers also walking off the job. The labor action is to culminate in a two-day nationwide general strike on Oct. 19-20. The second day will coincide with a vote in Parliament on new budget cuts, which includes reforms to the labor law.
The government has been imposing repeated rounds of austerity measures as it struggles to meet the requirements to qualify for funds from a euro110 billion ($151 billion) international bailout loan that is preventing it from defaulting on its debts. Its international debt inspectors have said the country will likely receive the next euro8 billion installment of the loans in early November.
Athens has said it only has enough money to pay salaries and pensions until mid-November.
Public servants are the main targets of the latest reforms that include across-the-board salary cuts and the suspension of 30,000 workers on the state payroll with reduced salaries. Pensioners will also see more cuts and salary earners will pay higher taxes, while parliament has already approved an emergency property tax to be charged starting this month through household and business electricity bills.
The new measures have led to widespread criticism not only from labor unions and opposition parties, but also from within the governing Socialist party, with some deputies implying they will not vote in favor of the bill on Thursday unless changes are made.
Venizelos said the country found itself in an “economic war.”
“We must defend ourselves,” he said. “Yes, unfortunately we must cut salaries and pensions, … yes, unfortunately we must impose greater taxes.”
Markets and analysts believe that a default by Greece is inevitable eventually, and some have raised the prospects of the country leaving the European Union’s joint currency, the euro. Both Greek and European officials have repeatedly insisted this is not on the cards.
Venizelos said such a prospect would be disastrous.
“An exit from the euro leads to poverty and the jungle,” he said in Parliament, and called on the opposition parties to support the government’s efforts to pull the country out of its crisis.
“We have an obligation to tell the people the truth about how dangerous, fluid, unclear the situation is,” he said. “We must be united when there is danger in order to be secure and sovereign.”
Venizelos criticized the repeated strikes and protests, which have included takeovers of government buildings, saying that “the image there has been in the last few weeks is one of lawlessness,” and that blackmail was a different thing from fighting for people’s rights.
The finance minister said the government was prepared to assume the political cost of pushing through unpopular but necessary austerity measures, and repeated that authorities were cracking down on tax evasion.
Pioneer Hi-Bred, the Dupont-owned seed maker, unveiled a new production plant about 160 miles south of St. Louis on Friday, the largest in its growing seed business.
Pioneer, based in Des Moines, Iowa, has been gaining market share in the corn and soybean business, presenting Creve Coeur-based Monsanto, the world’s largest seed company, with a growing challenge in the increasingly competitive seed market.
The production facility, which will produce genetically modified commercial soybean seed, will start off with 55 employees, eventually growing to 65 bad credit personal loan lenders. The company spent roughly $60 million on the facility’s construction, which began in May of last year.
The plant will be one of 50 Pioneer-owned commercial and “parent” seed production facilities in the U.S., and the company’s largest worldwide.
“Our strategy is to serve our customers,” said Alejandro Munoz, vice president of Pioneer’s Americas Group & Global Production. “Our market share numbers have been going up
Toronto’s overheated real estate market is expected to cool through the fall and winter, which should ease bidding wars and lead to more moderate price increases into 2012, says a CMHC housing market outlook released Wednesday.
Average Toronto house prices are expected to hit $463,500 by the end of this year, up 7.2 per cent from last.
But most of those gains have already occurred, thanks to a surge of home sales in spring and early summer fuelled by low interest rates as well as first-time buyers who rushed their purchases to beat the introduction of tighter lending rules, said Shaun Hildebrand, the federal housing agency’s Toronto market analyst.
“Prices will be treading water for the next few quarters,” he noted.
“We’re seeing sales levels start to moderate, we’re seeing new listings start to catch up to demand, and that’s going to create more balanced market conditions fast cash online. Prices won’t be growing as quickly as they were.”
New housing starts will also “moderate” and resume their growth late next year, the report notes.
CMHC revised slightly upward its forecast for Ontario, citing a rosier job picture and a stronger housing market than originally expected during the first half of this year.
But affordability is becoming such a concern, especially in overheated markets like Toronto, that CMHC predicts higher demand for rental apartments and condos by first-time buyers who have now found themselves priced out of the market.
House Speaker John Boehner said Thursday that Republicans controlling the chamber are willing to compromise on legislation increasing the government’s borrowing authority.
“Frankly, I think it would be irresponsible on behalf of the Congress and the president not to be looking at back-up strategies for how to solve this problem,” Boehner said. “At the end of the day, we have a responsibility to act.”
Asked whether GOP lawmakers supporting the House “cut, cap and balance” debt limit measure would be unwilling to ultimately compromise, Boehner said, “I’m sure we’ve got some members who believe that, but I do not believe that would be anywhere close to the majority.
His talk of possible accommodation in the protracted political stalemate over federal budget policy came as the Senate took up the tea party-backed House legislation Thursday. It ties an increase in the government’s borrowing authority to a series of conservative demands, including immediate spending cuts and a constitutional balanced budget amendment.
Majority Leader Harry Reid, D-Nev., called up the measure to placate Republicans demanding a vote. But he said it “doesn’t have one chance in a million of passing the Senate.”
Democrats argue that the so-called “cut, cap and balance” measure would impose untenable spending restraints and set spending levels, as a percentage of the overall economy, on par with the mid-1960s _ before the advent of Medicare and automatic Social Security cost-of-living adjustments.
The development Thursday reflected the reality that there’s more talk than progress as official Washington wrangles daily over finding a way out of a debt dilemma that has the government sliding inexorably toward a first-ever default on its financial obligations.
President Barack Obama met with House Speaker John Boehner, R-Ohio, at the White House for 90 minutes on Wednesday, but neither side would comment afterward.
Senate Minority Leader Mitch McConnell, R-Ky., said Thursday the legislation now before his chamber would be an opportunity for lawmakers to “go on record in support of balancing our books or against it.” He urged Democrats to join GOP senators in backing it.
Democrats are expected to kill the measure _ which they say would demand debilitating cuts to Medicare _ in a vote on Saturday if not before.
Meanwhile, momentum on a separate bipartisan budget plan by the Senate’s “Gang of Six” seemed to ebb as critics warned the measure contains larger tax increases than advertised and it became plain that the measure comes too late and is too controversial to advance quickly _ particularly as a part of a debt limit package that already would be teetering on a knife’s edge.
Sen. Kent Conrad, D-N.D., a member of the Gang of Six, said Thursday that some 40 senators of both parties back the plan his group has brought forward. It generally takes 60 votes to pass legislation in the 100-member Senate because the rules permit unlimited debate unless a supermajority votes to limit it.
But Conrad also said he feels there’s too little time between now and Aug. 2 to complete a comprehensive package of spending cuts, benefit program changes and an overhaul of the tax code.
Conrad said doing nothing is not an option, saying that “we’re all going to have to do things we’d prefer in a perfect world not to have to do.”
Absent a breakthrough between Obama and Republicans, there is a hotly contested backup plan by Senate Minority Leader Mitch McConnell, R-Ky direct payday lenders., that would give Obama broad new powers to obtain increases in the government’s borrowing unless blocked by veto-proof two-thirds margins in both the House and Senate.
Many conservative Republicans are in an uproar over the McConnell plan, and more than 70 House members signed a letter circulated by members of the conservative Republican Study Committee calling on Boehner to come out in public opposition to the McConnell-Reid plan..
In a shift, White House press secretary Jay Carney said Wednesday that Obama would back a short-term deal to prevent a disastrous financial default on Aug. 2 but only if a larger and still elusive deficit-cutting agreement was essentially in place.
Officially, the president continued to push for a big compromise that would cut the nation’s budget deficit and extend the government’s tapped-out borrowing power above the current $14.3 trillion cap. Obama had threatened to veto any stopgap expansion of the nation’s debt limit, at one point last week even challenging House Majority Leader Eric Cantor, R-Va., not to call his bluff about it.
Carney said if a divided Congress and the White House can agree on a significant deal, Obama would accept a “very short-term extension” of the debt limit to let bigger legislation work its way through Congress.
Obama also is open to the McConnell plan, but it seems barely aloft due to fervent tea party opposition in the House. The hope appears to be that such an option will look a lot better to the House in a week or so, given the lack of other ideas.
The Gang of Six plan has come under assault from critics like House Budget Committee Chairman Paul Ryan, R-Wis., who say the plan would increase taxes by $2 trillion over the next 10 years instead of the $1 trillion-plus claimed by proponents like Conrad _ a development likely to stunt momentum among Republicans.
The revenue increase is larger than advertised because the $1.2 trillion in new taxes comes on top of an underlying assumption used by Obama’s deficit commission _ and incorporated by the Senate group in its plan _ that the Bush-era income tax brackets for family income exceeding $250,000 would revert to the higher, Clinton administration levels. The deficit panel’s assumption was made before Obama buckled in December and signed a full extension of the Bush tax cuts.
The Gang of Six plan also earned poor reviews from liberals like Rep. Jerrold Nadler, D-N.Y., who said it would “balance the budget on the backs of the vulnerable.”
And Rep. Howard “Buck” McKeon, R-Calif., who is chairman of the House Armed Services Committee, blasted the plan in a missive to his panel members, saying it would cut the Pentagon much too deeply and would unfairly curb military health and retirement benefits.
The Gang of Six plan promises almost $4 trillion in deficit cuts, including an immediate 10-year, $500 billion down payment that would come as Congress sets caps on the agency budgets it passes each year. It also requires an additional $500 billion in cost curbs on federal health care programs, cuts to federal employee pensions, curbs in the growth of military health care and retirement costs, and modest cuts to farm subsidies.
Conrad made his remarks in an interview Thursday on MSNBC.
Shares of Research In Motion (TSX: RIM) are down slightly as the company denies reports it planned to halt production on the Wi-Fi version of its PlayBook tablet device.
The BlackBerry-maker
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