Outgoing President Ali Abdullah Saleh will leave soon to Oman, en route to medical treatment in the United States, Yemeni officials said on Saturday, part of an American effort to get the embattled strongman out of the country to allow a peaceful transition from his rule.
Washington has been trying for weeks to find a country where Saleh can live in exile, since it does not want him to settle permanently in the United States. The mercurial president, who has ruled for more than 33 years, has repeatedly gone back and forth on whether he would leave.
The officials’ comments Saturday suggested Oman, Yemen’s neighbor, could be a potential home for him. Three officials said he would go, but they were divided on whether he would remain in exile in Oman or return to Yemen after treatment. His return, even if he no longer holds the post of president, could mean continued turmoil for the impoverished nation at the southern tip of the Arabian Peninsula.
After nearly a year of protests demanding his ouster, Saleh in November handed his powers over to his vice president and agreed to step down. A unity government between his party and the opposition has since been created. However, Saleh _ still formally the president _ has continued to influence politics from behind the scenes through his family and loyalists in power positions.
The U.S. does not want to take him in, concerned it would be seen by Yemenis as harboring a leader they say has blood on his hands for the killings of protesters. Saudi Arabia and the United Arab Emirates already have rejected Saleh, American officials said.
Senior ruling party figure Mohammed al-Shayef told The Associated Press that Saleh would travel “in the coming days” to Oman, then head to the United States for treatment of wounds he suffered in an June assassination attempt.
After treatment, Saleh would return to Yemen to head his People’s Congress Party, said al-Shayef, who is also a prominent tribal leader. Another top party official, speaking on condition of anonymity because he was not authorized to talk of the plans, gave the same itinerary, though he said Saleh would pass through Ethiopia en route from Oman to the U.S.
Saleh himself has spoken in recent weeks of working as an opposition politician after he leaves the presidency.
However, an official in the prime minister’s office said Saleh “is supposed” to return to Oman to stay after his U.S. treatment is completed.
The official said Saleh’s powerful son Ahmed was currently in Oman, arranging a residence for his father. The official spoke on condition of anonymity because he was not authorized to talk the press. It did not seem that Ahmed, who commands the elite Republican Guard that has been at the forefront of the crackdown on protests, would remain in Oman.
The unity government has been struggling to establish its authority in the face of Saleh’s continuing strength in the country. Like Saleh’s son Ahmed, Saleh’s nephew also commands one of Yemen’s best trained and equipped security forces, and the president’s loyalists remain in place in the government and bureaucracy.
Saleh agreed to step down under a U.S.-approved and Gulf-mediated accord with the opposition in return for immunity for prosecution.
Yemen’s parliament on Saturday approved the immunity law, a key step toward Saleh’s formal retirement from his post. Vice President Abed Rabbo Mansour Hadi signed it into law later in the day.
Saleh is scheduled to hand over the presidency to his vice president on Feb. 21.
The law grants Saleh complete immunity for any crimes committed during his rule, including the killing of protesters during the uprising against his regime. However, parliament limited the scope of immunity for other regime officials and excluded immunity for terrorism-related crimes.
Initially, the law would have similarly given complete immunity to everyone who served Saleh’s governments throughout his rule, sparking a public outcry and a new wave of protests. In response, the law was changed to grant them immunity only on “politically motivated” criminal acts. That apparently would not cover corruption charges.
Most protesters have rejected the accord entirely, saying Saleh should not be given immunity and demanding he be prosecuted.
Human Rights Watch said Saturday in a statement that the law allows senior officials to “get away with murder” and “sends the disgraceful message that there is no consequence for killing those who express dissent.”
One of Switzerland’s top priorities this year is to restore confidence in the country’s financial industry following a series of setbacks that included the resignation of its central bank chief, the Swiss leader said Thursday.
President Eveline Widmer-Schlumpf said the Cabinet was examining ways of tightening loopholes in its oversight of both the central bank and its directors’ personal business transactions.
Swiss National Bank chairman Philipp Hildebrand stepped down Monday amid a public furor over his family’s private currency deals, which he maintained were legal under the bank’s internal rules against insider trading. Hildebrand was considered a key actor in Switzerland’s efforts to resist being sucked into the European debt crisis.
Widmer-Schlumpf told reporters in Geneva that the government would await a report on personal deals conducted by the remaining five members of the central bank’s enlarged governing board before deciding who should replace Hildebrand. She declined to say whether external candidates would be considered.
The Swiss government also intends to pursue deals with other countries aimed at resolving long-standing disputes over tax evasion, said Widmer-Schlumpf, who is also the country’s finance minister instant credit report.
Switzerland has been gradually softening its banking secrecy rules in recent years amid pressure from cash-strapped governments angry that their taxpayers are hiding money in Swiss banks.
Negotiations with the United States were particularly difficult, she said. “They are not easy partners, we know that, but still they are constructive.
“I hope that we can resolve this issue in a way that respects the Swiss legal situation,” said Widmer-Schlumpf.
Swiss media have reported that U.S. authorities are demanding the names of all Swiss bankers who had contact with American clients in recent years, with a deadline set for Jan. 23. Such a move could greatly increase the pressure on Swiss banks to reach a settlement with U.S. authorities.
Widmer-Schlumpf said the government is also examining the possibility of a tax deal with Italy that could mirror accords already reached with Britain and Germany. The European Union has opposed such bilateral agreements and demanded a universal agreement for all its members.
Asian stocks dropped Monday, ignoring signs of job improvement in the U.S., as traders continued to fret about Europe’s unfolding sovereign debt drama.
South Korea’s Kospi fell 1.2 percent to 1,821.31 and Hong Kong’s Hang Seng index was 0.7 percent lower at 18,463.81. Benchmarks in Singapore, Taiwan and Indonesia also were lower. Mainland Chinese shares rose. In Japan, financial markets were closed for a public holiday.
The U.S. unemployment rate fell in December to 8.5 percent, the lowest level in nearly three years. But signs of strength in the U.S. job market were not enough to offset worries about Europe’s debt problems.
On Friday, Italy’s borrowing costs spiked to dangerously high levels and the euro fell to a 16-month low against the dollar at $1.2696.
Italy is now paying over 7 percent to borrow for 10 years, a sign that investors are concerned the country could default on its debts online payday advance. Many economists believe that those rates are unsustainable over the long term.
Greece, Portugal and Ireland were forced to seek a bailout after their borrowing rates rose above 7 percent.
The euro continued its slide against the dollar. On Monday, it fell to $1.2694 from $1.2724 late Friday in New York. The dollar fell to 76.92 yen from 77.02 yen.
In energy trading, benchmark crude for February delivery fell 45 cents to $101.11 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell 25 cents to settle at $101.56 in New York on Friday.
Friday’s stronger-than-expected December U.S. jobs growth figures drew a sharp contrast with European numbers, but staffing executives who track labor demand on both sides of the Atlantic caution Europe’s impact on jobs in the United States may yet prove deeper than it has so far.
Executives in the temporary staffing and employment services field say anxiety about a likely recession in Europe keeps cropping up in conversations with clients and, in some cases, is putting hiring plans on hold.
Faced with falling sales and profits in Europe, multinational clients may look for offsetting savings in other markets, including the United States.
Randstad Holding NV (RAND.AS: Quote, Profile, Research, Stock Buzz), the world’s second-largest temporary staffing provider by revenue, offers one anecdote to illustrate how Europe weighs on U.S. jobs.
Randstad’s recruitment outsourcing business, SourceRight Solutions, which handles large-scale hiring of as many as 500 people at a time, has a banking client that tentatively plans aggressive expansion in 2012. But the client’s plans are being held hostage by Europe.
“There’s still caution around Europe and how they could impact the U.S.,” said Joanie Ruge, Randstad senior vice president and chief employment analyst. “That is (clients’) biggest concern right now, though they seem optimistic about all the economic indicators in the U.S. moving in the right direction.”
Uncertainty persists even as the U.S. economy improves by many measures. U.S. manufacturing grew at its fastest pace in six months in December - in sharp contrast to the euro zone. Pending home sales are the highest since April 2010 and U.S. consumer confidence is at an eight-month high.
Friday’s employment report improved that picture. The U.S. economy added 200,000 non-farm jobs last month, 50,000 more than expected, and the jobless rate slipped to 8.5 percent, the lowest since February 2009.
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Non-farm payrolls graphic: link.reuters.com/qyn85s
Jobless rate graphic: link.reuters.com/vyn85s
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FEWER FINANCE JOBS
Recruitment in financial services has slowed and is likely to be “lighter” this year, said Scot Melland, Chief Executive of Dice Holdings Inc (DHX.N: Quote, Profile, Research, Stock Buzz), which runs specialized jobs websites focused on professional categories.
“We’ve seen job postings for the industry as a whole decline over the last six months,” Melland said. “It’s really caused by the uncertainty that the industry is facing (from) the European debt crisis and some regulatory uncertainty here in the United States cheapest personal loan rates.”
By contrast, technology workers remain in demand and energy markets are looking at record job growth in 2012, according to Dice.
Friday’s report showed an unexpected decline in temporary help payrolls, which are historically a strong predictor of wider labor trends. But staffing industry insiders said the dip does not square with their own business and could be an anomaly that reflects seasonal factors.
Demand for temps has been steady if unspectacular, said Joel Capperella, vice president of marketing for Yoh, a Philadelphia-area staffing company that focuses on professional categories such as finance and technology and whose clients include SAP AG (SAPG.DE: Quote, Profile, Research, Stock Buzz).
“We’re hopeful the pace will pick up a little bit,” Capperella said, adding that Europe was so far not affecting specific workforce decisions, but was a factor in overall client confidence.
“Capital is still held close to the vest, but we do see it flowing a little bit more freely,” he said.
CURTAILED SPENDING
Tig Gilliam, who heads North American operations for Adecco SA (ADEN.VX: Quote, Profile, Research, Stock Buzz), the world’s leading staffing company, said Adecco is expecting “significant pressure” in Western Europe, which may already be in recession. Even strong markets, such as Germany, are expected to slow, although developing markets in Eastern Europe are likely to grow this year.
Gilliam sees a risk in underestimating the effect of Europe’s slowdown on the U.S. economy. Large employers, instead of investing to accelerate growth, may curtail spending to boost profits in markets that are holding up relatively well, he said.
“If you go to a U.S. multinational company and they look at what they’re facing in Western Europe in the next year, it automatically translates into that much more pressure on the markets that are performing,” he said. “They’ve got to find how much more they can save because they have a hole in Europe to dig out of from a profitability perspective.”
Staffing company shares were mixed on Friday. Among the largest U.S.-listed shares, ManpowerGroup (MAN.N: Quote, Profile, Research, Stock Buzz) and Robert Half International Inc (RHI.N: Quote, Profile, Research, Stock Buzz), were both modestly lower in midday trading, while Kelly Services Inc (KELYA.O: Quote, Profile, Research, Stock Buzz) rose.
In European trading, Adecco, Randstad and London-listed Michael Page International Plc (MPI.L: Quote, Profile, Research, Stock Buzz) were up slightly.
Germany and France send two key government officials to fill positions at the European Central Bank today, setting off a struggle for the job of chief economist.
Joerg Asmussen and Benoit Coeure join the ECB
Spanish Prime Minister Mariano Rajoy announced 14.9 billion euros ($19.3 billion) of deficit cuts, with the government
A man from St. Louis County is the second person to seek damages from Schnucks after falling ill during an E. coli outbreak linked to lettuce sold at local stores, according to a lawsuit filed Thursday in circuit court.
In mid-October, Charles Meyer, 61, ate romaine lettuce and other salad bar items several times from the Schnucks in Cool Valley. Meyer later developed an E. coli bacterial infection and was treated at Mercy Hospital in Creve Coeur, where he stayed in the cardiac unit for several days.
Meyer has not regained his previous health and strength since the illness, according to the lawsuit.
Mary Kozlowski filed suit earlier this month against Schnucks after she suffered permanent kidney damage from an E. coli infection after eating salads from the Des Peres Schnucks.
Federal health officials tagged romaine lettuce as the likely culprit of the E on line pay day loans. coli outbreak that sickened 60 people across 10 states this fall. Investigators determined that romaine lettuce from salad bars at nine Schnucks locations was the most common denominator in the illnesses.
The contamination probably occurred at a farm before the lettuce reached the stores, according to a report from the federal Centers for Disease Control and Prevention.
Both lawsuits also name Vaughan Foods of Oklahoma, which supplies romaine lettuce to Schnucks. The plaintiffs are represented by the law firms Aleshire Robb in Springfield, Mo., and Marler Clark in Seattle.
With Europe trying to resolve its debt worries and the U.S. attempting to whittle down high unemployment, prudent moves are in order.
Whatever the health of the economy, average investors face the prospects of extremely low interest yields and high market volatility. Everyone’s already had some experience with this queasy scenario, so it should be manageable if not invigorating.
Keeping collective blood pressure high, presidential campaigns will constantly remind us of all the economic problems that are in need of timely solutions.
So, as we bid the past year goodbye, here are New Year’s financial resolutions for 2012:
A key central bank survey showed Thursday that confidence at major Japanese manufacturers fell over the last quarter, as the export-reliant country battled a strong yen and an increasingly precarious global economy.
In the Bank of Japan’s “tankan” survey of business sentiment, the main index for big manufacturers fell to minus 4, in the first deterioration in two quarters. Three months ago, it stood at 2.
The figure represents the percentage of companies saying business conditions are good minus those saying conditions are unfavorable, with 100 representing the best mood and minus 100 the worst.
The result is in line with Kyodo News agency’s average market forecast.
Japan has been battling a strong yen, which has hit multiple historic highs this year against the dollar. Amid economic uncertainty in Europe and the U.S., global investors have looked to the Japanese currency as a relatively safe haven.
But Japan relies on exports to drive growth, and the yen’s appreciation has hit companies such as Toyota Motor Corp. and Sony Corp. hard. When the yen climbs, it reduces the value of exporters’ overseas profits when repatriated to Japan payday advance.
That has forced companies to shift more production overseas, prompting worries about a hollowing out of Japanese industry.
Big non-manufacturers were feeling slightly more optimistic. Their confidence index rose to 4 from 1 three months earlier.
Medium-sized manufacturers’ reading was flat, at minus 3, while the small manufacturers’ index improved to minus 8, up from minus 11.
The tankan, which helps guide monetary policy, showed that large companies overall plan to boost capital spending by 1.4 percent this fiscal year through March 2012. The figure is down from 3 percent in the September survey.
Large manufacturing companies assume an average exchange rate of 79.02 yen per dollar for this fiscal year, compared with 81.15 yen three months ago.
The Bank of Japan surveyed 10,846 companies nationwide. About 99 percent responded.
The bank’s next policy board meeting is scheduled for Tuesday and Wednesday.
China’s chronically high inflation rate fell to a lower than expected 4.2 percent in November, paving the way for authorities to further ease credit to support growth.
The National Bureau of Statistics said Friday that falling food prices and a high base from a year earlier helped to bring inflation down from 5.5 percent in October.
The decline gives China’s leaders the leeway to ease policies that were imposed to cool an overheated economy but recently have fanned fears growth might be stifled at a time when hopes are pinned on a robust China to help offset the malaise in Europe and the U.S.
“Inflation is marching south at an aggressive pace,” Alistair Thornton, an economist with IHS Global Insight, said in a research note.
Data for November “highlighted strong downward pressure amid an increasingly gloomy global outlook,” it said.
China has already begun relaxing reserve requirements on banks to help ease a cash crunch and reopen a flow of liquidity needed to keep growth on track.
Beijing is treading a thin line as it strives to support job-creating growth while avoiding re-igniting inflation that can undermine public support for the ruling communist party because it erodes the economic gains that underpin their claim to power saving account payday loan.
“The challenge for policymakers is to enact measures that boost domestic demand and to loosen credit controls somewhat without stoking inflation and property price bubbles,” said Jing Ulrich, JP Morgan’s chairwoman for global markets.
Incomes are rising but gains are increasingly unevenly distributed.
Food costs, a major component of the consumer price index and especially sensitive in a society where poor families spend up to half their incomes on food, rose 8.8 percent, the National Bureau of Statistics said.
China’s latest bout of perilously high inflation, fueled by a binge in bank lending unleashed by stimulus meant to fend off the global crisis, peaked at 6.5 percent in July.
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