0 Obama to face Syria scrutiny in Jordan

A day after challenging Israelis to embrace peace with Palestinians, US President Barack Obama Friday will face scrutiny over his strategy on Syria during an overnight stay in Jordan. Obama will fly to Amman for talks and a private dinner with King Abdullah II, after wrapping up the first visit to the Jewish state of his presidency by paying homage to Israeli heroes Theodor Herzl and Yitzhak Rabin. While the thrust of his visit to Israel was reassurance that the United States would mount an "eternal" defense of the Jewish state amid the Iranian nuclear threat, Obama will turn to the agony of Syria's civil war in Jordan. 

Jordan is sheltering nearly 436,000 Syrian refugees, a figure expected to rise to 700,000 by the end of this year, as people fleeing vicious sectarian fighting between Bashar al-Assad's forces and rebel groups spill over its borders. Obama has resisted pouring US arms or ammunition into the conflict, which the UN estimates has taken at least 70,000 lives, but has offered logistical support to rebels and hundreds of millions of dollars in humanitarian aid. Obama will also support political reform efforts inside Jordan, which has been an oasis of relative calm in a region swept by turmoil following the Arab Spring uprisings. 

A senior US official said Obama wanted to coordinate with the king on security challenges and on helping Jordan alleviate the refugee crisis. "We're providing a lot of assistance to support Jordan and international organizations that are supporting the refugee population inside of Jordan," the official said. "We're also working very closely with the Jordanian government as part of the coalition of countries that is supporting the Syrian opposition to pressure the regime, to build up the opposition, and try to bring about a new Syria." 

Obama warned during his trip that Washington was investigating claims that chemical weapons have been used during the Syria conflict and warned it would be a "gamechanger" that could spark international intervention if they were fired off by the Assad regime. The US leader will wrap up his three-day visit to Israel on Friday by paying homage to Herzl, considered the father of modern Zionism. He will also visit the grave of assassinated Israeli prime minister Rabin. After a final short hop to the Church of the Nativity in Bethlehem on the West Bank, which Christians revere as the birthplace of Christ, Obama will fly out of Tel Aviv aboard Air Force One. 

In a powerful direct appeal to Israelis on Thursday, Obama insisted that a two-state peace with the Palestinians could still be forged and is their only hope of true security. "You can be the generation that permanently secures the Zionist dream," Obama said in a soaring speech, warning that a two-state solution was the only way to ensure Israel remained a Jewish state amid changing demographics. Obama urged his young Israeli audience to "look at the world through (Palestinian) eyes." During a subsequent state dinner at his Jerusalem residence, President Shimon Peres told his guest that he was "moved by the way in which you spoke to the hearts of the young Israelis." 

Palestinian president Mahmud Abbas was also pleased with the address, a senior Palestinian official said. "President Abbas welcomed President Obama's speech in Jerusalem saying that achieving peace and the option of two states on the 1967 borders are the way to bring security for the Israeli and Palestinian peoples," peace negotiator Saeb Erakat told AFP. Earlier, Obama's edgy news conference with Abbas in Ramallah reflected Palestinian disappointment with his failure to live up to first-term vows to help forge a Palestinian state. 

The frosty atmosphere lacked the bonhomie of his bonding session with Israeli Prime Minister Benjamin Netanyahu on Wednesday, as the two leaders, both starting new terms, sought to prove their prickly relationship was a thing of the past. In Ramallah, Obama condemned the "continuing threat" of attacks from the Hamas-run Gaza Strip after two rockets hit southern Israel, near the town of Sderot. The Salafist Aknaf Bayt al-Maqdis group claimed the attack in a statement that condemned Obama's visit to the region. 

In front of Abbas, Obama said that the two-state solution was still a possibility, despite claims that Israeli settlement building had crushed Palestinian dreams of a contiguous state. Although he singled out Israeli settlements on land the Palestinians see as part of their future state as a major impediment to reviving peace talks, Obama did not call for a new construction ban. In private talks with Obama, Abbas said that a freeze was a must, according to his political adviser Nimr Hammad.

AFP
source : the jakarta globe

0 BP says to return $8 bn to shareholders

British energy giant BP on Friday said it would return up to $8.0 billion (6.2 billion euros) to company shareholders by repurchasing shares, a day after completing the sale of its stake in a Russian joint-venture. "BP announced today that it intends to carry out a share repurchase, or buy-back, programme with a total value of up to $8 billion," the group said in a statement. 

It added: "Today's decision to buy back shares follows the completion yesterday of the sale of BP's 50 percent interest in TNK-BP to Rosneft. "The programme is expected to return to BP shareholders an amount equivalent to the value of the company's original investment in TNK-BP." Russian state oil giant Rosneft on Thursday announced the creation of the world's top listed oil firm as it sealed a $56-billion acquisition of the British and local stakes in the lucrative but strife-torn joint venture TNK-BP .

AFP
source : the jakarta globe

0 Rupiah Set for Longest Losing Streak Since November on Outflows

Indonesia’s rupiah was poised for a third weekly decline, the longest losing streak since November, as global funds sold the nation’s assets on concern inflation will accelerate and the fiscal deficit will widen. The currency traded near a seven-week low as the benchmark equity index dropped. Overseas investors have cut Rp 2.1 trillion  ($216 million) from their sovereign debt holdings from a record 284.9 trillion on March 14, according to finance ministry data, The 2013 budget shortfall may exceed 2 percent of gross domestic product due to high subsidy costs, exceeding the 1.65 percent target, Finance Minister Agus Martowardojo said on March 19. 

“The rupiah’s weakening is driven by negative sentiment on Indonesia,” said Fahrudin Haris Prastowo, a foreign-exchange trader at Bank Rakyat Indonesia in Jakarta.  “Inflation will likely accelerate and the budget deficit is still burdened by subsidies, which is causing concern among foreign investors.” The currency declined 0.5 percent this week to 9,757 per dollar as of 9:08 a.m. in Jakarta, the biggest drop since the five days ended Feb. 1, according to prices from local banks. It fell 0.3 percent on Friday and touched 9,770 earlier, the weakest level since Feb. 4. One-month non-deliverable forwards dropped 0.6 percent this week and 0.1 percent today to 9,798, a 0.4 percent discount to the spot rate, data compiled by Bloomberg show.                        

Yield Curve
A daily fixing used to settle the derivatives was set at 9,730 per dollar on Thursday by the Association of Banks in Singapore, compared with 9,733 the previous day. The rate is published at 11:30 a.m. in the city-state each day.     One-month implied volatility, a measure of expected moves in the exchange rate used to price options, lost 22 basis points, or 0.22 percentage point, to 5.96 percent this week. It rose five basis points today.  Overseas investors sold $65 million more Indonesian shares than they bought this week, exchange data show. 

The Jakarta Composite index fell 0.4 percent, adding to last week’s 1.1 percent decline.     The government’s priority is to limit subsidized-fuel usage and increasing prices isn’t the emphasis, Finance Minister Martowardojo said in Jakarta on Thursday. Consumer prices gained 5.31 percent in February, the most in 20 months.  The difference in yield between two- and 10-year bonds widened six basis points this week to 118 basis points, the biggest gap since June. Longer-maturity notes are more sensitive to inflation expectations. The yield on the 5.625 percent securities due May 2023 was at 5.48 percent, the highest level since Nov. 12, prices from the Inter Dealer Market Association show.

Bloomberg
source : the jakarta globe

0 Cyprus MPs study bailout 'Plan B' as meltdown looms

Cyprus is scrambling to overhaul its banking sector to avoid financial meltdown, after the European Central Bank threatened to pull the plug on emergency funding for the island's lenders. Cypriot politicians have until Monday to approve a "Plan B" bailout deal with the European Union and International Monetary Fund or face being choked from the ECB funds, which would likely cause teetering banks to collapse. There was also intense pressure for a deal from the EU. 

One source warned that Cyprus risked expulsion from the eurozone if parliament failed to approve a workable plan to restructure its outsized banking sector by Tuesday. But MPs adjourned an emergency session late Thursday without voting on the first two bills in a package of draft legislation the government has drawn up as part of its revised plan. They said they needed more time to study the plans to set up a "national solidarity fund" and impose capital controls to prevent a run on the banks when they reopen on Tuesday after more than a week. 

The new solidarity scheme would nationalise pension funds, with bonds issued against future natural gas revenues. The second bill would "impose temporary restrictive measures on the movement of capital". Central bank chief Panicos Demetriades said legislation had also been drafted on reorganising the Cypriot banking system. "This consolidation process will prevent the risk of bank failures and protect in their entirety all insured deposits up to the amount of 100,000 euros ($129,000)," he said as he entered the presidential palace for emergency talks with the cabinet. 

Lawmakers on Tuesday rejected a highly unpopular measure, which would have slapped a one-time levy of up to 9.9 percent on bank deposits as a condition for the loan. That forced the government to redraw a plan to resolve the chaos unleashed by an initial scheme to tax bank accounts by 5.8 billion euros ($7.47 billion) to complement 10 billion euros in eurozone and IMF loans between now and 2016. Speaker of parliament Yiannakis Omirou insisted a revised levy on bank deposits was not on the table, a move seen as placating Russians who are believed to have more than $30 billion in private and corporate cash in Cyprus banks. 

Around 200 people protested outside the legislature, mostly employees of the Laiki or Cyprus Popular Bank, which is in the eye of the storm. As the government urged people not to panic, Popular Bank announced a limit on withdrawals of 260 euros a day because of a "high demand for cash" from its ATMs, under siege by customers drawing their daily limits of up to 700 euros. Without the legislation the island's second largest bank faced the threat of immediate bankruptcy, said the central bank chief. 

"With the establishment and enactment of the above legislative framework, consolidation measures will be implemented at Popular Bank, in order for it to be able to continue to provide banking services to customers, with the reopening of banks on Tuesday," said Demetriades. Acting leader of the ruling Disy party Averof Neophytou said restructuring Popular Bank would provide 100-percent protection for 361,000 out of 379,000 account holders. 

The remainder would not enjoy full protection because they exceeded the 100,000-euro limit for deposit insurance. He added that restructuring the banks would also cut their recapitalisation needs, meaning the sum Cyprus needs to raise from its own resources in return for a 10-billion-euro bailout would be reduced from 5.8 billion euros to 3.5 billion. The troika of lenders -- the EU, ECB and International Monetary Fund -- agreed to the 10-billion-euro bailout on Saturday provided Cyprus came up with the rest. The chairman of the Eurogroup of finance ministers, Jeroen Dijsselbloem, said currency partners were willing to work with Nicosia on its new plans. 

"The Eurogroup stands ready to discuss with the Cypriot authorities a draft new proposal, which it expects the Cyprus authorities to present as rapidly as possible," Dijsselbloem said after a two-hour conference call with fellow ministers. One EU source, speaking on condition of anonymity, underlined that Nicosia had "until Tuesday" to broker a solid deal -- suggesting Cyprus might otherwise find itself kicked out of the eurozone. In comments published Friday in Germany's daily newspaper Bild, German Finance Minister Wolfgang Schaeuble warned Cyprus: "Cosmetic changes alone are not enough." 

The authorities there had to "make serious savings", he added. In Moscow, Prime Minister Dmitry Medvedev condemned the European proposals to solve the Cyprus crisis as "absolutely absurd," further raising tension between Russia and the European Union. Stock markets in Tokyo, Hong Kong and Shanghai opened down Friday in the shadow of the Cyprus banking crisis.

AFP
source : the jakarta globe

0 Pleasure in heaven and earth

About 1,000 meters above sea level, Josep Punti passes chocolate bread and Catalan white wine to each of his 11 guests. “Salut!” everybody on board, with glimmering faces, exclaims as they toast. The ritual marks the apex — literally — of the one-hour gas balloon flight over Sallent, some 70 kilometers north of Barcelona. Every bite of the bread and sip of Cava, or Spanish sparkling wine, help passengers stave off the chilling morning breeze. 

The temperature on the ground measures 5 degrees Celsius at the end of winter, regardless of the sunlight. For those who are afraid of heights, wine is a remedy, at least according to Chris, a Liverpool native, who, like other passengers, joined the flying adventure for the first time. “I don’t feel comfortable with high altitudes, but the wine helps me feel relaxed. We should have the wine before the flight,” he says. For Pep, however, the wine is just a trademark of his company, Aircat. 

“Other companies serve the wine after the flight, which is just ordinary. I want something different,” he says. But even without the fear killer called wine, one would and should be in a state of bliss observing the mosaic of green forest and vineyard, reddish countryside houses and auburn chapels from the sky. Far to the south, multi-peaked Montserrat Mountain is crystal clear, while to the north the partially snow-covered Pyrenees stands tall. It takes Pep and his two friends about half an hour to prepare everything before the balloon can take off. 

First, they slide the passenger cargo off their van and place it in the middle of the launch site, which is actually a small square just near a housing complex.  Then they roll out the 200-kilogram balloon and fill the giant yellow, smiley balloon with hydrogen gas.The basket, made of wood with iron handlebars, can carry 12 people, including the pilot. The passengers are divided into two “cabins”. They are separated from the “cockpit”, where Pep, sandwiched by two gas cylinders, directs the airship. 

Before takeoff, Pep briefs all the passengers about the safety rules, which includes the prohibition of intruding into the cockpit. But no safety equipment is available during the flight, except for Pep’s mastery in piloting the balloon. He holds a certificate recognized in Europe. Indeed, safety is an issue of great importance, particularly as the trip took place just weeks after a hot air balloon exploded over Luxor in Egypt. Its 21 foreign passengers and operators plummeted about 300 meters to the ground, leaving 19 of them dead. 

Pep says he has been running the business for 13 years with no accidents. Aircat operates six balloons and at least one of them flies every weekend. Each passenger pays ¤150 (US$195) per trip. “Only strong winds and rain can prevent our balloons from flying,” he says. Pep always tries to keep his guests calm, turning their fright into delight. During the flight he takes questions and gives answers while his right hand frequently pulls the gas-filling kits to keep the balloon afloat. 

His responsibility does not stop at ensuring the safety of his guests. Using his camera, he takes pictures of his passengers. The results? Although he is definitely not a pro, the pictures please everybody, thanks to the angles he chooses. The soft landing on a post-harvested vineyard a few kilometers away from the launch pad does not mark an end to the attraction. Pep guides his guests to a restaurant for a brunch, which is part of his tour package. Traditional Catalan cuisine, which includes bread smeared with tomato and olive oil, sausages and fried eggs plus red wine, is perhaps best saved for last. Salute!

source : the jakarta post