Asian stocks mixed as economic fears weigh

HONG KONG: Asian stock markets were narrowly mixed Friday, with Japan's benchmark up 1.5 percent, as persistent worries about the deteriorating world economy and financial system sidelined many investors.Trade was listless throughout the region after a bruising, volatile month that saw Asia's export-driven economies sink deeper into recession amid collapsing global demand and their currencies wither.Sentiment was buoyed somewhat by reports slumping banking giant Citigroup, which has already taken billions in government aid, was nearing a deal to give the U.S. an ever bigger ownership stake, as much as 40 percent. Combined with more bailout measures in Britain and shake-ups at European banks, the agreement lifted some financial shares in Japan and elsewhere.But most investors appeared to be holding back as the onslaught of negative news about the global economy showed no signs of letting up.The recession's toll on global economies widened Thursday as Royal Bank of Scotland and General Motors Corp. reported billions more in losses.And in Asia Friday, figures showed that Japan's industrial production plunged a record 10 percent in January from December as manufacturers continued to slash output. Household spending and retail sales also fell. India's economic growth sputtered to a worse-than-expected 5.3 percent in the last quarter from the previous year — the slowest in about six years.Until there was evidence sweeping government measures to jump-start the global economy were starting to take effect, equities markets were likely to remain lackluster, traders said."Confidence remains really beaten up," said Miles Remington, head of Asian sales trading at BNP Paribas Securities in Hong Kong. "Internationally the picture is very negative. A lot of people are very happy to be sitting on the sidelines."The Nikkei 225 stock average rose 110.49 points, or 1.5 percent, to 7,568.42 — but finished the month down nearly 4 percent to extend this year's losses to almost 15 percent.In Hong Kong, the Hang Seng pulled back 83.37 points, or ABOUT 0.7 percent, to 12,880.89 in a back-and-forth session. South Korea's Kospi rose 0.8 percent to 1,063.03.Elsewhere, India's slumping growth figures sent the country's main index tumbling by 2 percent. China's Shanghai benchmark dropped 1.8 percent as investors continued to pocket gains from the market's recent rally. Singapore sank, Taiwan gained.Among financials received some support as news about the Citigroup deal, expected to be announced in the U.S. later Friday, ease fears about the financial sector. Japan's Mitsubishi UFJ Financial Group Inc., the country's largest bank, rose 2.7 percent. South Korea's KB Financial Group Inc. jumped 6.5 percent.After trading ended, Sony Corp. said its president was stepping down — adding to the string of Japanese companies hoping to fight the global slowdown with renewed leadership. The stock rose 2 percent.In the U.S., major stock indexes gave up early leads to close lower, with health care stocks bearing the brunt of the selling. The Dow Jones industrial average fell 88.81, or 1.2 percent, to 7,182.08. The Standard & Poor's 500 index fell 12.07, or 1.6 percent.U.S. stock index futures little changed. Dow futures were flat at 7,178, while S&P futures were down 1 point at 751.1.In currencies, the dollar shed some if its recent gains, falling to 97.59 yen from 98.27 yen. The euro slipped to $1.2658 from $1.2710.Oil prices weakened in Asian trade after an overnight rally. Light, sweet crude for April delivery down $1.33 at $43.89 a barrel. On Thursday, the contract jumped $2.72, or 6.4 percent, to settle at $45.22 on the New York Mercantile Exchange.

Euro slips versus dollar amid eurozone inflation

LONDON: The European single currency retreated Friday against the dollar as investors digested tumbling eurozone inflation data ahead of fourth-quarter economic growth numbers in the United States.In midday London trade, the European single currency fell to 1.2673 dollars from 1.2743 late on Thursday.Against the Japanese currency, the dollar sank to 97.30 yen from 98.46 yen on Thursday.Official EU figures Friday showed that inflation in the 16 countries using the euro dropped in January by the sharpest rate on record, slumping to 1.1 percent in the face of a sharp economic downturn.The fall brought 12-month eurozone inflation to the lowest point since July 1999 and was down sharply from the 1.6 percent that the European Union's Eurostat data agency recorded in December.The drop, which was greater than market expectations for 1.4 percent, confirmed an earlier estimate and brought inflation to well below the European Central Bank's comfort zone of close to but less than 2.0 percent.The ECB is likely to lower its key interest rate by another half a percentage point at its meeting next month, a member of the bank's board suggested on Wednesday.The prospect of lower interest tends to weigh on currencies as they become a less attractive investment.After hitting a record high of 4.0 percent in June and July, eurozone inflation has fallen sharply as oil and other commodity prices have collapsed in the face of a deep economic downturn.The drop in inflation has paved the way for a series of interest rate cuts by the ECB which has slashed its main rate to a record low of 2.0 percent.The battered eurozone economies suffered further bad news on Friday with a quarter of a million jobs lost in January, bringing the unemployment rate to 8.2 percent, the highest level in over two years.Elsewhere, the yen rallied against the dollar on relief that a raft of dismal economic data was not worse than investors had feared, dealers said.A record 10 percent drop in Japan's factory output in January, while bad, was in line with market expectations, noted Yuji Saito, head of forex at Societe Generale."This triggered profit taking" by speculators who had sold the yen in anticipation of weak data, he said.In London trade on Friday, the euro changed hands at 1.2673 dollars against 1.2743 dollars late on Thursday, at 123.15 yen (125.49), 0.8933 pounds (0.8895) and 1.4854 Swiss francs (1.4841).The dollar stood at 97.30 yen (98.46) and 1.1576 Swiss francs (1.1644).The pound was at 1.4170 dollars (1.4322).On the London Bullion Market, the price of gold rose to 945.13 dollars an ounce from 936.50 dollars on Thursday

Asian stocks rise after Bernanke comments

HONG KONG: Asian stocks rose Wednesday, taking their cue from Wall Street after U.S. Federal Reserve Chairman Ben Bernanke said the government had no plans to nationalize hard-hit banks and the recession might end this year.

Gains across the region were far more modest compared with U.S. markets, where the major benchmarks surged from near 12-year lows as banking shares led a broad rally.

Investors seemed heartened by Bernanke's comments that formally nationalizing the banks to ensure their viability "just isn't necessary." In recent days, fears of nationalization have weighed heavily on markets as investors worry the move would dilute share prices and turn over major decision to government regulators.

Analysts were skeptical the rally would last in the face of further deterioration in the global economy.

The U.S. government may end up nationalizing the banks, but do so piecemeal rather than in a single injection, said Dariusz Kowalczyk, chief investment strategist for SJS Markets in Hong Kong.

"The political difficulty of nationalization is hampering efforts to jump-start the recovery, and I think the rally (on Wall Street) yesterday was only temporary," Kowalczyk said.

In Japan, the Nikkei 225 stock average rose 94.26 points, or 1.3 percent, to 7,362.82 despite news the world's second-largest economy posted a record trade deficit in January, with exports tumbling 46 percent from a year earlier.

Benchmarks in Singapore and Taiwan were also higher, though Shanghai and Australian stock measures lost ground.

Overnight in New York, the Dow rose 236.16, or 3.3 percent, to 7,350.94. On Monday, the major indexes tumbled more than 3 percent, including the Dow, which fell 251 points and hit its lowest close since May 7, 1997.

In currencies, the dollar continued its advance, rising to 96.91 yen from 96.70 yen. The euro traded lower at $1.2812 from $1.2763.

In oil, light, sweet crude for April delivery was exchanging hands at $39.60 a barrel, down 36 cents. Overnight, the contract, staged a late-session rally to settle up $1.52 at $39.96 on the New York Mercantile Exchange.

Elusive Oscar finally within reach of Winslet

LOS ANGELES: Win or lose at Sunday's Oscar ceremony, British actress Kate Winslet will enter Academy Award history.

Winslet, 33, will either walk past her chief rival, Meryl Streep, to collect her first Oscar for her performance as a woman with a secret Nazi past in "The Reader," or share the dubious title of biggest loser for having been nominated for the coveted honor, and lost, six times.

The betting in Hollywood ahead of the February 22 ceremony for the world's top film awards is that Winslet should be getting her acceptance speech ready.

"I think it is her time. When Academy members are voting, they are going to be thinking not just of 'The Reader' but of 'Revolutionary Road,'" said Hollywood.com movie critic Pete Hammond, when talking about the two movies starring Winslet that were released within weeks of each other in 2008.

"That is pretty daunting when you have two great performances like that back to back," Hammond said.

The three other best actress nominees are Anne Hathaway as a resentful sister in "Rachel Getting Married," Melissa Leo in border smuggling drama "Frozen River" and Angelina Jolie playing a mother searching for her child in "Changeling."

Winslet, who parlayed art house success into international stardom in "Titanic" in 1997, has already picked up two Golden Globes for her role as a German woman with a teenage lover and a secret in "The Reader" and as a frustrated 1950s American housewife in "Revolutionary Road."

Discover the exclusive world of Celina Jaitley

MUMBAI: Celina Jaitley's official online and mobile destination was launched recently, aiming to invite fans of the gorgeous actress into her very personal and professional life is an interactive and user-friendly website which takes fans on a journey through memories & career highlights that have made Celina Jaitley who she is.

am really excited about launching my own digital platform. My fans and my well wishers can now get a glimpse of my personal life, get to know me more and talk to me about my style statement, my professional life etc,'' says Celina.''

This really makes me feel connected to my fans and I feel like this is an ideal platform for people to reach out to me,'' she adds

Shilpa releases music to promote IPL team

MUMBAI: Shilpa who joined the IPL league after Preity Zinta, is set to make a super rich music video to promote her cricket team.

The sizzling music video will have an evocative Rajasthani-folk number 'Halla Bol' composed by music director Anand Raj Anand.

Interestingly it will be choreographed by Ken Ghosh who stopped doing music videos after turning feature filmmaker.

Shilpa says, ''I'm so glad that Ken is making an exception for me. We chose Anand Raj Anand because he's an expert at catchy folk songs. I first worked in a film with his music when he scored for PARDESI BABU. I was simply bowled over by the numbers. Today when I hear the song he has composed for our team I feel deeply enthused.''

Shilpa's beau and partner Raj Kundra is mighty excited by Anand Raj Anand's Rajasthani song and have apparently decided to shell out a mini fortune close to Rs. 1 crore, to shoot the song featuring Shilpa.

The inside buzz is that this video would be better than any other song that she has done before. The word is that close to a total amount of Rs. 3 crores is expected to be spent.

The source said, ''From 'UP Bihar Lootne' to 'Shut Up And Bounce'...Shilpa's item songs have always been special. She wants her IPL music video to be her best item song ever. She's working on the costumes, accessories everything in advance so that when they shoot the video in March she'll sizzle like never before.''

However Shilpa refused to reveal any figures and simply said that they could all see the end product when the video releases.

Oil prices hold under $35 in New York

LONDON: Oil prices firmed on Wednesday but held under 35 dollars per barrel in New York on the eve of data forecast to show falling US energy demand amid the global economic downturn, analysts said.

New York's main futures contract, light sweet crude for delivery in March, firmed two cents to 34.91 dollars a barrel, after earlier falling as low as 34.43.

Brent North Sea crude for April delivery added 32 cents to 41.35 dollars per barrel, after earlier touching 40.30.

The US Department of Energy will publish its weekly report on American energy inventories on Thursday, one day later than normal because of a public holiday on Monday.

The report is keenly awaited by traders because the United States is the world's biggest energy consuming nation.

"Crude oil traded below 35 dollars a barrel on speculation that US stockpiles climbed ... amid a drop in demand because of the global economic contraction," said BetOnMarkets analyst Dave Evans.

"The price of (New York) crude will probably stay around the 35-dollar level until the inventory report."

Oil had tumbled in value on Tuesday, mirroring steep falls in equity markets, as traders were gripped by energy demand worries in a worldwide economic downturn.

Investors also fretted over the effectiveness of a new US economic stimulus law and the health of the US banking system, while two automakers raced to submit restructuring plans.

Data on manufacturing activity in the New York region deepened the gloom, showing a fall in the Empire State index to another record low in February.

"Crude futures suffered heavy losses (on Tuesday), slipping lower on renewed fears over the global economy," said analyst Andrey Kryuchenkov at VTB Capital in London.

"It was the first trading day in New York after the long holiday weekend and pessimism was overwhelming everything, even increasing calls from OPEC on the possibility of further supply cuts."

Asian stock mixed amid investor caution

HONG KONG: Asian stocks markets were narrowly mixed Thursday, as President Barack Obama's $75 billion lifeline to homeowners did little to boost optimism about the outlook for the global economy.Investors nibbled at some beaten down shares but enthusiasm was tempered by another dose of negative economic data in the U.S. and Asia, as well as Wall Street's sideways session.Oil prices languished below $35 a barrel, while the dollar was lower against the yen after advancing strongly overnight.In Japan, the central bank kept its key interest rate on hold at 0.1 percent, as widely expected, and extended several emergency measures to increase liquidity, including its operation to buy corporate bonds from firms to help ease the funding crunch.The Bank of Japan also warned conditions in the world's second-largest economy, already struggling with its biggest contraction in more than three decades, were unlikely to improve anytime soon. In Taiwan, meanwhile, bleak economic data confirmed the country as Asia's latest to slip into recession.In New York overnight, U.S. markets ended a volatile session mostly flat after Obama unveiled his relief plan.The program would provide incentives to mortgage lenders to help borrowers reduce their payments in an effort to counter a souring housing market at the core of the economic crisis.While a number of analysts said the program might limit the hemorrhaging in housing prices, the market's cool reception seemed to show how much investors have lost confidence in government bailouts."We are still dealing with a lot of bad news. We all should be concerned what is going to happen in the economy," said Winson Fong, Hong Kong-based managing director at SG Asset Management, which oversees about $2 billion in equities in Asia. "Things are still getting worse this year, so we're seeing a lot of markets drifting down slowly."In Tokyo, the Nikkei 225 stock average closed up 23.21 points, or 0.3 percent, at 7,557.65, buoyed by a weaker overnight yen that improves repatriated profits of the country's many exporters. Markets in Australia, India and Taiwan were higher as well.Hong Kong's Hang Seng fell 0.9 percent to 12,893.50, while South Korea's Kospi lost 0.6 percent to 1,107.10. Shanghai's benchmark was up 0.7 percent in a choppy session.In New York, the Dow Jones industrial average edged up less than 0.1 percent to 7,555.63. For a second day, the blue chips managed to finish just above their November closing low. The Standard & Poor's 500 index dipped 0.1 percent to 788.42, and the Nasdaq composite index fell 0.2 percent to 1,467.97.U.S. stock futures were up slightly, suggesting modest gains when Wall Street opens Thursday. Dow futures rose 36, or 0.5 percent, to 7,519 and S&P500 futures gained 2.6, or 0.3 percent, to 782.10.In oil, light, sweet crude for March delivery was up 13 cents at $34.75 a barrel in Asian trade.Overnight, the contract lost 31 cents to settle at $34.62 a barrel on the New York Mercantile Exchange. The March contract expires on Friday, and most of the trading was for the April contract.In currencies, the dollar weakened against the yen, falling to 93.43 yen compared to 93.65 yen earlier. The euro rose to $1.2583 from $1.2560.

Pakistan may send FIA team to India: PM

LAHORE: Pakistan would considering the possibility of sending an investigation team to India as part of its probe into the Mumbai attacks, Prime Minister Yousuf Raza Gilani said on Wednesday.

Talking to newsmen, he said the Federal Investigation Agency (FIA) had sought permission for its team to visit India.

He also said India is yet to reply to questions submitted by Pakistan along with its response to the Indian dossier on the Mumbai attacks.

FBI gets Pak nod to grill 26/11 suspects

NEW DELHI: The Pakistani government has given the nod to the Federal Bureau of Investigation (FBI), the U.S. investigative agency, to grill the suspected terrorists of Mumbai attacks, an Indian newspaper reported.

It said that the FBI team will interrogate the suspects within Pakistan however an other FBI team is questioning Ajmal Kasab and other suspects in India.

Pakistan agreed to take the step after the killing of six US citizens including two FBI officials in Mumbai attacks, it said, adding that India and US will share the probe outcome owing to their joint anti terror mechanism.

Pakistan UN official abductors extend deadline

CHAGAI: The hostage takers of UNHCR official John Solecki have extended their deadline of killing the hostage for few days.

Meanwhile, the security forces continued their hunt to recover the kidnapped UN official in Afghan refugees Gardi Jangal camp in Chagai.

The forces have arrested a suspect during the operation and transferred to him to an undisclosed location. The number of the persons arrested during the operation has reached to five.

The forces have also sealed the Pak-Afghan border and stepped up patrolling in the region.

All markets in the Gardi Jangal refugee camp have also been closed.

Pakistan Musharraf opposes Swat peace deal

ISLAMABAD: Former President General (r) Pervez Musharraf Monday criticized government over its peace deal with local Taliban insurgents engaged in Swat, terming it "ridiculous".

“Its really ridiculous to sign a deal with those who killed hundreds of army personnel in Swat,” an apparently-charged Musharraf told media persons in a press conference here Monday, his first official-media appearance since his resignation last year.

He said he had been facing severe hardships during his tenure saying Pakistan Army and Air force had suffered 1500 causalities while combating in terror war.

Drug giant pledges cheap medicine for poor

LONDON: The head of British drugs giant GlaxoSmithKline (GSK) said in a British newspaper Saturday he would cut prices for medication in developing countries and share knowledge of patented treatments.

Andrew Witty told the Guardian he believed pharmaceuticals companies had an obligation to help the poor receive treatment and he challenged his rivals to follow GSK's example.

He said: "We work like crazy to come up with the next great medicine, knowing that it's likely to get used an awful lot in developed countries, but we could do something for developing countries."

Are we working as hard on that? I want to be able to say yes we are, and that's what this is all about -- trying to make sure we are even-handed in terms of our efforts to find solutions not just for developed but for developing countries.

"Witty said GSK, the world's second largest pharmaceutical company, would cut its prices in the 50 least developed countries to no more than 25 percent of the levels in Britain and the United States.

He also said any chemicals and processes owned by GSK under patent would be shared with other researchers and 20 percent of the company's profits in the developing world would be re-invested in hospitals and clinics.

Charities such as Oxfam have highlighted the fact that drug patents prevent the poor from obtaining cheaper, generic versions of the same medicine.GSK said this month it would cut jobs, without saying how many, under plans to slash annual costs by 1.7 billion pounds (1.9 billion euros, 2.4 billion dollars) by 2011.

Oil prices rebound in Asia

SINGAPORE: Oil prices rebounded in Asian trade on Wednesday after data showed a decrease in US oil stocks.

New York's main oil futures contract, light sweet crude for delivery in March, gained 40 cents to 37.95 dollars a barrel.

Brent North Sea crude for March jumped 50 cents to 45.11 ahead of the contract's expiry on Thursday.

Prices rose after the American Petroleum Institute (API), the industry trade association, reported early Wednesday a two-million-barrel drop in oil inventories in the United States.

Market reaction to stockpiles data typically develops only after the US Department of Energyreports its figures, which were due later Wednesday, but the API figures may be evidence that output cuts by the Organisation of the Petroleum Exporting Countries (OPEC) are starting to take effect, Pervan said.

Prices recovered in Asia after plunging during US trading hours on Tuesday over a lack of market confidence in a massive US financial recovery plan that reignited fears over saggingdemand in the world's biggest oil consuming nation, analysts said.

Asia stocks fall amid skepticism over US bank plan

HONG KONG: Asian stock markets dropped today following a steep sell-off on Wall Street. Investors reacted with skepticism to the U.S. government's latest plan to rescue the ailing financial industry with as much as $2 trillion.

One analyst says not even the colossal amounts of money announced in the U.S. are likely to make up the funding shortfall created by risky loans and other distressed assets the banks are holding.

Japan's markets were closed for a holiday while all other major Asian indexes fell. Further weighing on the region were figures showing China's exports plunged 17.5 percent in January -- the sharpest drop in more than a decade -- amid the global slowdown. Wall Street futures were up modestly, suggesting U.S markets could recover some at the open.

Pak to issue Mumbai findings next week: PM

LAHORE: Pakistan will publish findings of its investigation into November's militant attacks in Mumbai early next week, Prime Minister Yousaf Raza Gilani said on Friday.

Gilani also said newly appointed U.S. envoy to Afghanistan and Pakistan Richard Holbrooke would be visiting Pakistan on Monday.

Relations between nuclear-armed India and Pakistan have been strained since militants killed 179 people in Mumbai.

"We will publish a report ... by Monday or Tuesday on the information given in their dossier," Gilani told reporters in Lahore.

India said the dossier contained the confession of a surviving attacker, satellite phone intercepts between the attackers and their handlers in Pakistan, and a list of Pakistani-made weapons used by the militants.

Gilani, announcing that Holbrooke would be visiting on Monday, said there was confusion over the envoy's mandate.

Pakistan had expected the United States to appoint an envoy for South Asia as a whole, including India and the divided Kashmir region, the core dispute between India and Pakistan.

But India objects to any outside effort to get involved in Kashmir, which both Pakistan and India claim in full but rule in part.

"There is still confusion (over) whether he is in charge of the region or he is only confined to Afghanistan and Pakistan," Gilani said, adding terrorism was a regional problem and should be dealt with regionally.

"We welcome Richard Holbrooke for special envoy to Pakistan, Afghanistan and for the region ... and we will discuss with him our regional problems related to terrorism and extremism."

Holbrooke, a foreign policy veteran appointed by U.S. President Barack Obama last month, is also due to visit Afghanistan and India on what a U.S. State Department spokesman said this week would be "an orientation trip".

Pakistan UN Chief to announce Benazir probe in Pakistan visit

ISLAMABAD: United Nations Secretary General Ban Ki Moon would on Wednesday will announce a commission for investigating the assassination of former Prime Minister Benazir Bhutto, foreign office sources in Islamabad said.

The probe of assassination of Benazir Bhutto would be the main focus of talks between the UN Secretary General and the Pakistani leaders, the sources said.

Moon would be reaching here today on a one day visit where besides announcing the probe commission he would discuss the host of other issues in his talks with President Zardari and Prime Minister Gilani.

Pakistan Bill to ensure women security: Sherry

ISLAMABAD: Minister for Information and Broadcasting Sherry Rehman, Wednesday said that 'Protection Against Harassment at the Work Place Act 2009' bill will ensure security to working women at work places.

"The bill has been named `Protection Against Harassment at work place Act 2009'."

Talking to a private TV channel, she said the government is committed to work for the welfare of women and to create enabling atmosphere so that women can work at their work with dignity and respect.

The Minister said bill has been prepared by the ministry of woman development after consulting different stakeholders, women groups, civil society, NGOs and people involved in working for the rights of women.

She said the input from federal ministers and other stakeholders have been incorporated in the bill. Code of conduct and procedure has also been included in the bill so that the women could act accordingly when harassed at work place.

"Every single complaint would be probed into and penalties for the offence have also been identified". A victim can also appeal in courts for improving environment of working place if not satisfied from the outcome of the departmental inquiry, she added.

Pakistan UN secretary general arrives in Islamabad

ISLAMBAD: United Nations Secretary General Ban Ki-moon arrived in Islamabad on Wednesday after a brief stop in Kabul where he held talks with Afghan leaders.

During his first visit since taking office in late 2006, Ban is expected to meet Pakistani Prime Minister Yousuf Raza Gilani and President Asif Ali Zardari, an official of Pakistan's foreign ministry said.

The visit came two days after unknown gunmen kidnapped a senior UN official in north-west Pakistan.

John Solecki, the head of the UN refugee agency was kidnapped in the south-western town of Quetta as he was going to his office on Monday. The attackers killed his Pakistani driver.

Ban was also scheduled to discuss the formation of a UN commission to probe the assassination of former prime minister Benazir Bhutto.

The government asked the UN last year to set up a commission to investigate the assassination.

Pakistan PM lifts ban on recruitment for govt jobs

ISLAMABAD(Azhar Farooque): Prime Minister Yousuf Raza Gilani in an order on Tuesday has lifted countrywide ban on recruitment for government jobs.

Prime Minister Syed Yusuf Raza Gilani earlier ordered dissolution of the Task Force on Employment "to ensure merit and transparency and in line with government's desire for good governance," a PM House official said.

The Task Force on Employment for overseeing and coordinating the recruitment in various ministries, attached department, autonomous and semi autonomous bodies of the government, was set up to create self employment opportunities and other schemes.

The decision for immediate dissolution of the task force is aimed at countering corruption and nepotism and will lead to making the ministers more effective and responsible, the PM House official said.

Pakistan HC reserves ruling on Gilani NAB cases

ISLAMABAD: Islamabad High court Tuesday reserved its ruling in plea against sentences to Prime Minster Syed Yousuf Raza Gilani in the NAB cases.

The bench comprising Chief Justice of the High Court Justice Sardar Muhammad Aslam and Justice Raja Saeed, heard the case.

Additional prosecutor General of NAB Abdul Bashir Qureshi said while giving his arguments that solid proofs were not found regarding the misappropriation by Gilani as a speaker of the National Assembly.

Bashir Kiyani, the lawyer of PM Gilani said the PM had not offered gratifications to any company in purchasing luxury cars, adding the charges were mere political allegations to hurt his image

Pakistan Five policemen killed in Swat post attack

MINGORA: Five policemen were killed when the militants raided a police post on Tuesday in Swat, sources said.

A shootout continued between the militants and police at Shammozai police post in Swat.

Meanwhile, security forces have started advancement towards Shammozai area.

Serena ousts Safina in Australian Open final, takes No.1 ranking

MELBOURNE: Serena Williams thrashed Russia's Dinara Safina 6-0, 6-3 to win her fourth Australian Open title Saturday, bringing her total Grand Slam tally to 10 in one of the most one-sided deciders ever.

The win means the American, seeded second in the tournament, will also take the world number one ranking off Serb Jelena Jankovic.

Williams, 27, utterly dominated third seed Safina, allowing her opponent to win only eight points in the first set on her way to claiming the championship in less than an hour.

The American also won the women's doubles title with her sister Venus on Friday and became the highest ever prize-money winner in women's sport during the tournament.

Safina, contesting her second final in a Grand Slam after losing in last year's French Open decider, narrowly avoided entering the record books as being on the wrong end of the worst drubbing in a final in the tournament's history.

Only Steffi Graf in 1994 and Margaret Smith in 1962 have posted more comprehensive victories in the decider, both winning 6-0, 6-2.

Police arrests Barack Obama's half brother in Kenya

NAIROBI: George Obama, the half brother of U.S. President Barack Obama, has been arrested by Kenyan police on a charge of possession of marijuana.

According police George Obama was arrested on charges of possession of cannabis, known in Kenya as Bhang, and resisting arrest. He is scheduled to appear in court Monday.

He is being held at Huruma police post in the capital of Nairobi.

George Obama, however, denied the allegations while talking to a foreign news channel.

"They took me from my home," he said, "I don't know why they are charging me."

George Obama and the president barely know each other, though they have met before. George Obama was one of the president's few close relatives who did not go to the inauguration in Washington last week.

In his memoir, "Dreams from My Father," Barack Obama describes meeting George as a "painful affair." Barack Obama's trip to Kenya meant meeting family he had never known.

SBP maintains status quo on discount rate

KARACHI: State Bank of Pakistan said on Saturday that 15 percent discount rate would remain unchanged for the fiscal year ending in June.

Announcing monetary policy here in a press conference, Governor State Bank Salim Raza said that decrease in manufacturing and liquidity were major challenges of the country. He said that due to better performances of services and agriculture sectors, economic growth rate was recorded at 3.7 percent.

Raza termed inflation a major threat to national economy saying global economic meltdown also affected Pakistan’s economy.

The central bank raised interest rates by 2 percentage points to 15 percent in November, the same month it signed a$7.6 billion loan with the International Monetary Fund to stave off a balance of payments crisis.

PM assures security, returns to investors

DAVOS: Prime Minister Syed Yusuf Raza Gilani Thursday said Pakistan offered extensive investment opportunities and high returns for foreign entrepreneurs.He invited the foreign businessmen to invest in Pakistan and said the government was in place to ensure safe business environment for the investors."Investing in Pakistan is investing in future," the Prime Minister said while addressing a lunch he hosted for the leading businessmen here on the sidelines of the World Economic Forum.The Prime Minister said Pakistan's sound fundamentals offered the investors an opportunity to explore the country's economic potential in diverse fields.Gilani emphasized the need for more foreign investment coming into Pakistan and benefit from its investor-friendly economic policies.He said Pakistan's liberal economic regime with zero import duty on raw material provided equal opportunities for the local and foreign businessmen. He said Pakistan was though confronting with a number of challenges including economic crisis, however the democratic government was struggling to improve the situation."Despite all the challenges, economy continues to be buoyant and vibrant in Pakistan," the Prime Minister said, adding the country's mineral and work-force resources had the great potential to be fully tapped.He said the government had converged its focus upon the development of agriculture sector to utilize it particularly during the recession phase."It will be just a matter of time that Pakistan will become a regional hub of economic activity," the Prime Minister said.Gilani said the government was taking a number of strategic measures, and mentioned increased trade with Afghanistan and improved regional mechanism with the SAARC countries.He said a deep seaport at Gwadar had been established for greater economic activity among the Central Asian and Asian states.He said the improved economic plan for civil aviation, customs and logistics would substantially enhance the country's trade activities.The Prime Minister said Pakistan had the capacity to join hands with partners in food security, being a major food producing and also the fourth largest milk producer in the world.Prime Minister Gilani said in WTO context, Pakistan would support substantial reduction on tariffs in the developing countries.Earlier, the prime minister who is here to represent Pakistan at the annual World Economic Forum, met Chief Executive Officers of Coca Cola and Metro cash 'n carry group and urged them to bring in more investments into the country.Prime Minister Gilani who is here in the snowy alpine town to seek more investment for Pakistan said his government would assure maximum security to the foreign investors and provide them best possible facilities.The CEO of Coca Cola company Mukhtar Kent said his company plans to invest US$ 200 million in Pakistan and establish plants for preparing concentrated juices, introduce a variety of teas, sports drinks, beverages and other products of international standard.Tuncay Ozilhan, the Chairman of the Metro group in his separate meeting with PM Gilani said his group will open a store in Karachi next month, while more stores at Sialkot and Multan would be opened soon.He said the group had planned more stores, but because of the global financial crisis its plans had to scale down a bit. He hoped the new stores will create more job opportunities in the country. He said the group was concentrating on frozen sea-food and high quality rice as well.

Pakistan Police claims arrest of 3 Indian spies

LAHORE: The police on Thursday claimed to have arrested three Indian spies in Lahore.

Announcing the arrests at a news conference in Lahore, the Capital City Police Officer (CCPO) Pervez Rathor said the alleged terrorists were working for Indian external spy agency Research and Analysis Wing (RA&W).

The detainees were identified as Muhammad Fayaz, Muhammad Akram and Shehzad, says the channel.

The arrested spies, according to Rathor, used to provide photographs of important places to the RA&W, while some important buildings were on their target.

"They were also involved in a bomb blast in Lahore in 2006, in which 16 people were injured," Rathor said, adding that they had visited India also.

Pakistan Long march to bring revolution, says Kurd

LAHORE: The lawyers Thursday took out a rally for restoration of the deposed judges, and the Supreme Court Bar Association (SCBA) president Ali Ahmad Kurd claimed that their long march in March will bring a historic revolution in the country.

Addressing lawyers, political workers and members of the civil society during the weekly protest rally here at Aiwan-e-Adal and the Mall, the SCBA chief said the long march would prove a success in the judges’ restoration movement.

He said the lawyers had worked a hard for an independent judiciary in the country, and had even sacrificed their livelihood by the continuing strikes.

He claimed that thousands of people will join the lawyers in the long march and the sit-in protest in Islamabad, and no hurdle will be tolerated.

Kurd also announced to observe complete boycott of the courts throughout the country on March 9, the day of the long march.

Pakistan Its unfair to call Pakistan a fail state: PM

ISLAMABAD: Prime Minister Syed Yousuf Raza Thursday said it is unfair to call Pakistan a failed state, saying Pakistan is the most stable country of the region.

Speaking in panel discussion of World Economic Forum, the PM said there is complete democracy in the country and media is free, so the perception of unsuccessful state about Pakistani was unjust and unfair.

He said Pakistan has excellent tie with Afghanistan adding stable Pakistan and Afghanistan is in world’s interest.Gilani said the government would hold talks with only those militants who surrendered before their local tribal elders and pledged to end militancy in tribal areas.

Military operation, he said, was not the only option, saying the government was striving to eliminate root causes of terrorism that are poverty and illiteracy. The Jirga system is successful in Pakistan, Gilani said.

US senate confirms new intelligence chief

WASHINGTON: The US Senate confirmed retired admiral Dennis Blair as new US director of national intelligence.

The Senate approved Blair by voice vote. late Wednesday

Blair last week flatly rejected torture -- which he branded "not moral... not legal... not effective" -- and promised to end special interrogation regimes and refuse the unlawful surveillance of Americans.

Blair indicated major changes are in store for US intelligence agencies, which have been embroiled in controversy over secret prisons, interrogation practices, and warrantless wiretapping of Americans.

Blair told the Senate Intelligence Committee he would welcome independent monitoring of the intelligence community "to prevent abuses and protect privacy and civil liberties of Americans."

However, he refused to say waterboarding, a form of controlled drowning, is torture, because he did not want to put in legal jeopardy intelligence officers who engaged in practices authorized at the highest levels.

"I don't intend to reopen those cases of those officers," he said.

Mitchell meets Palestinian leaders in West Bank

JERUSALEM: President Barack Obama's Mideast envoy turned his attention to the Western-backed Palestinian government in the West Bank on Thursday as rockets thudded into southern Israel and Israeli warplanes attacked new targets in Gaza.

George Mitchell was seen entering Palestinian President Mahmoud Abbas' headquarters in the West Bank town of Ramallah and was due to meet later in the day with Prime Minister Salam Fayyad.

He is not meeting with Hamas, the Islamic group that is Abbas' rival and the ruler of the Gaza Strip. The U.S., Israel and European Union have blacklisted Hamas as a terrorist group.

Mitchell held his first round of talks with regional leaders in Cairo and Jerusalem Wednesday to determine the next steps toward reviving peace negotiations following Israel's blistering military offensive against Palestinians.

But a flare-up of violence in Gaza underscored the more immediate priority — shoring up a 10-day-old cease-fire. Palestinians fired a rocket into Israel early Thursday, and residents of the south Gaza town of Khan Younis said an Israeli airstrike there wounded an unidentified man on a motorcycle and five passers-by, among them children walking home from school.

The Israeli military said it targeted the motorcyclist because he was involved in a bomb attack Tuesday on the Gaza-Israel border which killed an Israeli soldier and wounded three others.

On Wednesday Israeli warplanes struck Gaza smuggling tunnels and a weapons factory. There were no reports of casualties.

In Qatar on Wednesday, Hamas' supreme leader, Khaled Mashaal, said the group would not link the opening of crossings to the release of the Israeli soldier.

Hamas wants Israel to free hundreds of Palestinian prisoners in exchange for Schalit.

Egypt has been exploring the possibility of including some Hamas personnel in a Palestinian Authority presence at the border, but that would require some form of reconciliation between the factions, which remain bitter rivals.

500,000 Iraqi refugees may return in 2009: UN

BRUSSELS: If the security situation in Iraq continues to improve, the number of refugees and displaced people returning to their homes could more than double this year to 500,000, the U.N. refugee agency said Thursday.

After years of extreme violence Iraq is now experiencing markedly improved security, said Daniel Endres, Baghdad representative of the Geneva-based agency.

"Although this security remains fragile, last year we saw a significant return as a result," he told journalists in Brussels.

More than 220,000 Iraqis who fled abroad or were displaced within the country after the U.S.-led invasion returned home in 2008, according to U.N. statistics.

Still, nearly two million remain outside the country, mostly in Syria and Jordan, and an additional 1.6 million forced from their homes by sectarian and ethnic violence are displaced inside Iraq.

Iraqis currently make up the biggest group of asylum seekers in industrialized countries.

But international refugee organizations have been encouraged by the government's recent moves to normalize the situation and encourage returns.

This includes setting up a special army unit charged with evicting militia members and others who moved illegally into homes owned by people forced to flee the violence.

Provincial elections for the ruling councils in 14 of Iraq's 18 provinces will be held on Saturday. They are seen as a dress rehearsal for national elections later this year.

"If everything continues to go well, including elections, property restitution and stability, it's possible that 500,000 people could return in 2009," Endres said.

Despite the drop in violence in 2008, the number of daily attacks remains high, he said.

Pak has vital role in new US strategy: Mullen

WASHINGTON: Chairman US Joint Chiefs of Staff Admiral Mike Mullen said Thursday Pakistan has a vital role in the strategy being chalked out by new US administration for national security.

While defining America’s national security strategy at a briefing for Washington-based foreign journalists, Mullen expressed his satisfaction on the results of Pakistan Army’s operation in Bajaur tribal agency.

“Some level of stability, no safe havens, reasonable development… nuclear weapons not a significant concern in Pakistan,” said America’s top military official when asked what would constitute success for him in the South Asian region.

The admiral underlined the current situation in Afghanistan and Pakistan as the biggest threat confronting the United States and said that within those two countries, the presence of terrorist elements in Fata was the main cause of concern for Washington.

“And with respect to Al-Qaeda, the biggest concern we have with respect to them is the existence of them in the Fata and Pakistan,” he said.

The United States, he said, wanted to make sure that the safe havens were eliminated and were not recreated in Afghanistan or some other place like Somalia or Yemen.

Admiral Mullen appeared particularly concerned about Afghanistan where he said “the situation… grows increasingly perilous every day”.

The admiral also emphasised the need for developing a regional strategy for defeating terrorism in Afghanistan.