Maldives VP sworn in, president quit after protests

By Bryson Hull

(Reuters) - President Mohamed Nasheed of the Maldives, widely credited with bringing democracy to the Indian Ocean archipelago, resigned on Tuesday after weeks of opposition protests erupted into a police mutiny, and handed power to his deputy.
Nasheed, the Sunni Muslim nation's first democratically elected president, handed over to Vice-President Mohamed Waheed Hassan Manik and said in a televised address "I believe that if the government were to remain in power it would require the use of force which would harm many citizens."
Protests last year over the faltering economy and scrambling ahead of this year's presidential election, have seen parties adopting hardline Islamist rhetoric and accusing Nasheed of being anti-Islamic.
Nasheed's Maldivian Democratic Party said in a statement that "rogue elements" in the police force and supporters of his predecessor Maumoon Abdul Gayoom had overthrown the government and forced Nasheed to quit.
The MDP called for help from abroad to re-establish democracy and protect Nasheed and senior government members. A presidential aide told Reuters on condition of anonymity that Nasheed had been allowed to return to his home in Male and was no longer under military guard.
Hassan Saeed, leader of the DQP - a party in the opposition coalition - and an Indian diplomatic source in Colombo said Nasheed had asked India for help and been refused.
An Indian foreign ministry spokesman said the rebellion was an internal Maldives matter "to be resolved by the Maldives".
India helped foil a coup on the islands in 1988 by sending a battalion of soldiers to back the government.
Britain's Foreign Office said a team of diplomats was on its way there and that London viewed developments "with concern" and called on all groups "to find a peaceful way through these difficulties, in accordance with the Constitution".
U.N. Secretary-General Ban Ki-moon appealed for calm and said in a statement that the United Nations would remain a "close partner" of the Maldives.
A Commonwealth spokeswoman said the multinational body was "gravely concerned" and five Secretariat officials had arrived in the Maldives on Monday to see how the Commonwealth could help. "We urge all to respect the rule of law and the constitution and to refrain from acts of violence," she said.
Late on Tuesday, tourists and air traffic were moving without disruption at the islands' main airport. People whizzed about on mopeds in the streets of the capital Male as usual.
The official presidential bungalow showed no signs of activity and a handful of Maldivians sauntered around shopping and civic centre Republic Square, which also houses the Grand Mosque and police headquarters, with no sign of security forces.
DEMOCRACY
Nasheed swept to victory in 2008, pledging to bring full democracy to the low-lying islands and speaking out passionately on the dangers of climate change and rising sea levels.
But he drew opposition fire for his arrest of a judge he said was in the pocket of Gayoom, who ruled for 30 years.
Protests at the arrest set off a constitutional crisis that had Nasheed - jailed in all for six years and arrested 27 times by Gayoom's government while agitating for democracy - defending himself against accusations of acting like a dictator.
The new president told Reuters that Nasheed was in protective police custody for his security and said calling the day's events a coup was a "misrepresentation".
"The people have been out on the street demonstrating for weeks now and finally it came to a point where the crowds (were) too overwhelming and the president tried to negotiate, was too late and the people prevailed on him to resign," Waheed said.
There had been a brief conflict between the military and the police, he said. "The situation is now resolved. Both the police and the armed forces fully supported my taking office."
He said one priority was to create a "durable environment for tourism since it's our main industry... We can assure all visitors to the Maldives the situation is perfectly normal".
In an address after being sworn in, Waheed said the rule of law had been fully established. "I will not order the police, military or any person to do anything against the law ... Everyone will have the protection of the constitution and laws."
He called upon all political parties, the military and citizens to "put aside personal hatreds" and pledged to "work to restore peace and prosperity of the nation, to deliver a harmonious and peaceful living to the people".
Waheed is expected to run a national unity government until the presidential election.
Thomas Cook Germany, part of the London-listed group (TCG.L), said it was discouraging its 900 customers now in the Maldives from travelling to Male. Airlines reported no cancellations of scheduled flights to the Maldives.
Germany advised against all but essential travel to Male, while Britain's advice to tourists was to "exercise caution, avoid demonstrations and beware of spontaneous gatherings".
The trouble has been largely invisible to the 900,000 or so tourists who come every year to visit desert islands swathed in aquamarine seas, ringed by white-sand beaches.
Most tourists are whisked to their island resorts by seaplane or speedboat, where they are free to drink alcohol and get luxurious spa treatments, insulated from the everyday Maldives, a fully Islamic state where alcohol is outlawed and skimpy beachwear frowned upon.
Nasheed sought international help to stop the sea engulfing his nation and in 2009 held a cabinet meeting underwater, with ministers in scuba gear, to publicise the problem.
An Asian diplomat serving in Male told Reuters on condition of anonymity: "No one remembers the underwater cabinet meeting. They remember Judge Abdulla Mohamed," a reference to Nasheed having the military arrest the judge accused of being in Gayoom's pocket.
(Additional reporting by C. Bryson Hull in Male, Ranga Sirilal in Colombo, Frank Jack Daniel in New Delhi and Peter Maushagen in Frankfurt; Writing by Nick Macfie; Editing by Tim Pearce)

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Rankings: Azhar placed alongside Tendulkar

Azhar (R), who scored 157 in the third Test, was rewarded with a leap of 12 places and now has 749 points. PHOTO: AFP

After a match-winning century, Azhar Ali has not only claimed a career-best place in the International Cricket Council (ICC) Player Rankings for Test batsmen but also shares the 10th position with India’s maestro Sachin Tendulkar.

According to information provided by the ICC, Azhar, who scored 157 in the third Test, was rewarded with a leap of 12 places and now has 749 points. Younus Khan’s ton helped him make a leap of five places which puts him back in the fifth position. However, captain Misbahul Haq lost four places to slide to 17th.

In the ICC Rankings for Test bowlers, left-arm spinner Abdur Rehman has maintained an upward movement and gained two spots to be placed seventh. Saeed Ajmal also narrowed the gap with leader Dale Steyn and is placed second with a difference of 61 ratings points. Fast-bowler Umar Gul also gained a place and is now in 15th position.

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India tv response After Pakistan 3rd test Against England on 6th feb 2012

Reaction of Indian Media After Pakistan 3rd test Against England on 6th feb 2012

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FOREX-Euro dips as Greece delays debt deal approval

NEW YORK, Feb 6 (Reuters) - The euro dropped against
the dollar on Monday as Greece's political leaders
delayed a decision on a new bailout package, raising concerns of
a disorderly default that could spread to other debt-ridden
countries in the region. 
    A European Commission spokesman said Greece was already past
the deadline for finalizing talks on a second financing package
and needed to move urgently.  
    German Chancellor Angela Merkel told Greece to make up its
mind quickly on accepting the painful terms for a new EU/IMF
bailout, but the country's political leaders responded by
delaying their decision for yet another day.  
    "Headlines out of Europe are affecting sentiment on the
euro. Earlier, we had hit stop losses in the euro and we saw it
trim some losses. But it's more of the same," said Brian Dolan,
chief currency strategist at Forex.com, as investors waited on
Greece. 
    Greece's coalition members must agree to painful terms of
the bailout before euro zone finance ministers next meet. A
meeting of  political leaders in Athens was postponed to
Tuesday. Greece needs the funds by March to meet big debt
repayments.   
    The euro was last down 0.1 percent at $1.3128
after hitting a low of $1.3026 after stop-loss orders were
tripped below $1.3050.  
    If the impasse in Greece persists, the euro could target
$1.3026, the Feb. 1 trough, and more stop-loss orders were said
to be below $1.3020. 
    Nomura Securities analysts said they believe a Greece deal
is close, both in terms of the private sector involvement
process and in relation to negotiations with its lenders around
key program parameters.  
    "Since the implications of bad versus good news is clearly
asymmetric (a bad outcome could have severe implications), it is
a tough set-up to trade with confidence," Nomura said.
"Nevertheless, we believe a 'good' outcome is likely in the very
short term. We are therefore inclined to keep a risk
constructive bias within our portfolio at this time."  
    Nomura said EUR/USD at $1.25 is a reasonable target for the
first quarter, adding it would not be surprised to see a squeeze
higher in the very short term given the still very elevated
speculative shorts. 
    
  
    The IMF's chief economist, Olivier Blanchard, said on
 Monday it looks like the "haircut" on Greek private debt
will be "very large" as negotiations between bondholders and the
government drag on.   
    CitiFX, a division of Citigroup, said even with all the
uncertainty about Greece, the euro has still managed to hold its
ground pretty well.  
    CitiFX saw two potential explanations. First, investors may
still expect an agreement will ultimately be reached. Second,
they may think Greece is too small to matter.  
    "We have long argued that investors are ignoring Greece at
their own risk," the bank said. "We think that the risks of a
credit event in Greece are non-negligible and that the
uncertainty about both the second Greek bailout package and
(private sector involvement) is here to stay. 
    "We also suspect that a potential Greek default could
unleash contagion to other fiscally weak countries in the euro
zone periphery and lead to extensive FX volatility for a period
of time." 
    Against the yen, the euro fell 0.1 percent to 100.54 yen
 while against the safe-haven Swiss franc, it was 0.1
percent lower at 1.2062 francs, not far from the Swiss
central bank's cap at 1.20 francs per euro. 
    The dollar was little changed against the yen at 76.58 yen
, having earlier risen to 76.79 yen, its highest in
over a week.

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Europe crisis could halve China's growth: IMF

A Chinese paramilitary policeman standing guard outside the European Union Delegation in Beijing in 2011 (AFP/File, Peter Parks)

WASHINGTON — An escalation of Europe's debt crisis could slash China's economic growth in half this year, the International Monetary Fund said Monday, urging Beijing to prepare stimulus measures in response.
The IMF, in an economic outlook report on the world's second-largest economy, highlighted China's vulnerability to global demand.
"The global economy is at a precarious stage and downside risks have risen sharply," the IMF said, citing the possible deep crunch in the financial sector in Europe that would be felt around the globe.
"Should such a tail risk of financial volatility emanating from Europe be realized, it would drag China's growth lower."
The IMF outlined the negative impact if the eurozone crisis tipped Europe into a deep recession, dragging China's growth lower mainly due to shocks through trade.
In that "downside scenario" China's growth would fall by around 4.0 percentage points this year from the 8.2 percent rate the IMF projected in January.
"The risks to China from Europe are, therefore, both large and tangible."
In that case, "China should respond with a significant fiscal package."
China's exposure to financial spillovers is limited, it said, noting foreign assets, including sovereign debt, represent only 2.0 percent of Chinese bank assets.
However, the export-dependent economy is highly exposed through trade linkages. Nearly half of China's exports go to Europe and the United States.
Lower global demand would further reduce investment and employment and may trigger a decline in China's property market.
The IMF recalled that China's vulnerability was revealed in the 2008-2009 global financial crisis, when global growth plunged.
China launched a huge credit and fiscal stimulus in response, limiting the sharp impact on the domestic economy -- and yet growth still sank by five percentage points.
"However, a track record of fiscal discipline has given China ample room to respond to such an external shock," the IMF said.
If the euro area falters, the IMF recommended Beijing launch a substantial stimulus program, equivalent to roughly 3.0 percent of gross domestic product spread out over 2012-2013.
That would limit the decline in growth to around 1.0 percent, cushioning the negative fallout on employment and people's livelihoods, the IMF said.
The stimulus measures could include reductions in consumption taxes, advancing plans for social housing and scaling up investments in the social safety net, among others.
"Unlike in 2008, the stimulus package... should pass through the budget and not be reliant upon a public infrastructure," the IMF said, referring to the way the spending boost was previously dealt through the banking system, state enterprises and local government financing vehicles.
"The weak external outlook underscores the importance of accelerating the transformation of China's economy to reduce its vulnerability to the vagaries of global demand," it added.

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Brent jumps to 6-month high on Europe cold snap

NEW YORK (Reuters) - Brent oil rose for a fifth straight session on Monday to settle at a six-month high as cold weather in Europe boosted heating fuel demand and pushed the crude's premium to U.S. oil to the highest since November.
European gasoil led gains across the oil complex, rising more than 3.5 percent as bitter weather killed another 33 people in Europe.
Italy announced it would allow electricity providers to fire up oil-fueled generators to limit natural gas after six-straight days of reduced supplies from Russia.
Additional support for Brent came amid supply concerns from OPEC members Iran and Nigeria.
"The cold weather is giving us a lift in the products and that is feeding through to Brent," said Rob Montefusco, a trader at Sucden Financial in London. "Also, any sort of trouble in the Middle East is likely to keep Brent well bid."
U.S crude fell, however, dragged down by concerns about weak consumption and rising inventories that increased the contract's discount to Brent to more than $19 a barrel from more than $2, the largest discount since November.
Traders said the premium could blow out levels eclipsing those seen last year over $28 a barrel as Midwest refinery turnarounds and rising pipeline flows boost inventories in the region, home to the Cushing, Oklahoma, delivery point to the New York Mercantile Exchange's oil futures contract.
Brent March crude rose $1.35 to settle at $115.93 a barrel, highest close since August 2. Monday's trade ranged from $113.65 to $116.22. The $116.22 was the highest since $116.48 intraday on November 8.
U.S. March crude fell 93 cents to settle at $96.91 a barrel, having slumped as low as $96.38.
Heating oil prices traded up nearly 2.3 percent in late activity, despite forecasts that U.S. total heating demand would run about 14.5 percent below normal and heating oil demand would be 20.5 percent below normal.
Trading volumes were heavy, with Brent volume about 22 percent above the 30-day moving average and U.S. crude about 18 percent over that average.
The euro weakened against the dollar after the failure of Greek coalition parties to approve the terms of a new bailout package rekindled worries about a chaotic default.
The dollar index edged up and a stronger U.S. currency can pressure dollar-denominated oil by making the commodity more expensive for consumers using other currencies.
THREATS TO SUPPLY
Traders also eyed developments in the Middle East and Nigeria, where a police station was the site of the latest attack by suspected Islamist militants.
Iran's Revolutionary Guards deputy commander said on Sunday that Tehran would target any country used as a launching pad for attacks against its soil. Iran's supreme leader last week threatened reprisals for the West's ban on Iranian oil exports in the standoff over Tehran's nuclear program.
China, the largest consumer of Iranian crude, will halve its crude oil imports from Iran in March versus year-ago levels as a dispute over payments and prices stretches into a third month, oil industry sources involved in the deals said.
Asia's imports of West African crude are at record highs as sanctions on Iran reduce supplies, a Reuters survey of West African flows suggest.
In Syria an explosion ripped through an oil pipeline feeding a main refinery in the city of Homs, the second in a week to hit the pipeline.
(Additional reporting by Gene Ramos in New York, Claire Milhench in London and Francis Kan in Singapore. Editing by Bob Burgdorfer.)

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