Pakistan suspends PM graft probe after investigator's death

ISLAMABAD: Pakistan's anti-corruption watchdog Monday said it had suspended a probe into a graft scandal involving the prime minister pending an inquiry into the death of an officer investigating the case.

Kamran Faisal was found dead on Friday in the government hostel where he lived in Islamabad with colleagues from anti-corruption watchdog the National Accountability Bureau (NAB).

According to the initial findings of an autopsy, he committed suicide. He was reportedly found hanging from a ceiling fan, but Faisal's family say he had marks on his wrists and dispute that he killed himself.

"The proceedings in RPPs (Rental Power Plants) case would remain pending till the conclusion of the inquiry in Kamran case," said a statement by the watchdog attributed to its chairman Fasih Bokhari.

The long-running probe involving Prime Minister Raja Pervez Ashraf and other officials relates to allegations of kickbacks during Ashraf's tenure as minister for water and power.

"In the event that any inquiry is concluded unsatisfactorily, NAB can, and will, institute its own inquiry/investigation," added the statement.

The Pakistani government earlier appointed a retired judge to probe the death. The retired Supreme Court judge will head the commission and submit a report in two weeks, Interior Minister Rehman Malik told reporters late Sunday.

The watchdog said Faisal was a junior investigations officer working on the case against Ashraf, whose arrest was ordered by the Supreme Court last week in a move that sparked panicked rumours of a "soft coup" against the government.

The court has since adjourned the case to January 23 and a further perceived threat to the government, a rally of tens of thousands led by a cleric outside parliament, has dispersed.

The prime minister on Monday withdrew a petition asking the Supreme Court to review its orders from March 30, 2010 for action against all officials involved in the alleged scam, including himself.

According to NAB, Faisal suffered from "mental stress" and "psychological issues". He had asked to be taken off the case, but the Supreme Court refused a written request on January 7 and ordered he be reinstated.

Suicide is frowned upon under Islam and Faisal's father, Abdul Hameed, told AFP on Monday that he believed his son was murdered.

"I have seen marks on his wrist. His hands were apparently tied before his death. He is a martyr," he said by telephone from his home in Punjab province.

The retired civil servant said he wanted justice for his son but was doubtful that a judicial commission would get to the bottom of his death.

"I want a fair investigation so that culprits be exposed," he said.

Employees in the eastern city of Lahore on Monday observed a "pen down" strike -- turning up to work but refusing to work -- demanding an independent and transparent investigation, and compensation for the family, said NAB official Atiqur Rehman.

Doctor Shaukat Kiyani at the Services General Hospital in Islamabad where the autopsy was performed, said the initial conclusion was suicide but that a final verdict was expected in a week or 10 days' time.

- AFP/ac

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Cliffhanger result in state test run for German election

BERLIN: German Chancellor Angela Merkel's party was in the lead Sunday after the first state poll in a general election year, initial results showed, but the race for a ruling coalition rested on a knife-edge.

Preliminary results from Lower Saxony on public television showed Merkel's Christian Democrats ahead with around 36 percent and their coalition partners for the last decade, the Free Democrats, with about 10 percent.

The Social Democrats had about 32 percent and their favoured allies the Greens nearly 14 percent, leaving the two sides neck and neck with 46 percent.

The cliffhanger was due to develop throughout the night as results trickle in, determining which coalition will come out on top eight months before a national election that will decide if Merkel wins a third four-year term.

The Christian Democrats (CDU) were down from their 42.5 percent score at the last election in 2008 but appeared to capitalise on the popularity of state premier David McAllister, a half-Scot seen as a potential Merkel successor.

"What a heart-stopping night," McAllister told reporters. "We have every reason to hope that we will be able to continue our successful coalition in Hanover," the state capital.

The big winners of the night, however, were the pro-business Free Democrats (FDP), who looked set to tally their best result in Lower Saxony in post-war history.

Polls had indicated they risked slipping below the five-percent hurdle required for seats in the state parliament, but they seemed to get a lift from conservative voters splitting their ballots under Germany's two-vote system in a bid to rescue the coalition.

ARD television said around 101,000 voters who cast ballots for the conservatives in 2008 had plumped for the FDP this time.

If the FDP failed to win representation, its embattled leader Philipp Roesler, who is also Merkel's vice-chancellor and who hails from Lower Saxony, was seen as likely to step down -- possibly as soon as Sunday night.

The outcome seemed to give him a reprieve, if perhaps only brief.

"It is a great day for the FDP in Lower Saxony but it is also a great day for the FDP and liberals in Germany as a whole," a beaming Roesler told reporters in Berlin.

Around 6.2 million people were called to the polls in Lower Saxony, home to European auto giant Volkswagen.

If the centre-right coalition holds on to power, analysts say it will give Merkel, who already enjoys a robust lead in national polls due to her fierce defence of German interests in the eurozone crisis, a strong boost heading into the September election.

But if the Social Democrats (SPD) and Greens manage to eke out a victory -- still a distinct possibility -- pundits say it could help shore up the battered campaign of Merkel's gaffe-prone challenger Peer Steinbrueck.

Steinbrueck, a former finance minister from Merkel's 2005-09 "grand coalition" government, was anointed by the SPD as its chancellor candidate late last year.

But he has run into trouble of late with revelations that he made around 1.25 million euros ($1.66 million) over the last three years in speaking fees, and with comments that Merkel owed much of her popularity to her gender.

The SPD's candidate in Lower Saxony, Stephan Weil, hinted that he had been forced to campaign in the face of headwinds out of Berlin.

"The SPD made gains, which is remarkable considering the not exactly easy conditions under which we fought for voters' support in recent weeks," he said.

The website of news weekly Der Spiegel said the stakes remained high for the opposition.

"A victory in Hanover would be a great relief for the Social Democrats," it wrote.

"It would let the party dream of a turnaround at the national level. If it doesn't make it, there's the threat of resignation in the SPD about its chances this autumn."

After Lower Saxony, only the southern state of Bavaria is expected to vote before the September general election.

-AFP/ac

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Football: Barcelona lose first La Liga game of season

MADRID: An injury-time strike from substitute Imanol Agirretxe condemned 10-man Barcelona to a 3-2 defeat at Real Sociedad on Saturday, their first of a record-breaking La Liga season.

Lionel Messi scored in a 10th consecutive game for a landmark second time, putting Barca ahead after six minutes with Pedro Rodriguez doubling lead.

But Chory Castro pulled a goal back before the break and then got his second after 63 minutes.

With Gerard Pique off the field after receiving a red card, Agirretxe got the winner in the 91st minute.

There appears to be no record out of reach for Messi who scored in 10 straight matches in the 2011-12 season, notching up 18 goals in the process.

It equalled the mark set by Ronaldo, who scored 12 in 10 games during the 1996-97 season, and Mariano Martin who put away 18 in 10 matches between 1942 and 1943.

Messi has now hit 15 goals in 10 games and 29 overall in the league this season, but it counted for little on the night.

Barca went into the game having set a new record for a La Liga start with 18 wins -- and just one draw against Real Madrid -- for 55 points from a possible 57.

Despite the loss, they are still 11 points ahead of Atletico Madrid, who play Levante on Sunday, and Real Madrid in third, who face Valencia, a huge 18 points off the pace.

Barca once again began with Andres Iniesta in attack alongside Messi and Pedro Rodriguez with Alexis Sanchez struggling for form and David Villa injured.

Real Sociedad played the more defensive Markel Bergara in midfield rather than Ruben Pardo but even so they were under threat right from the start with a ball over their backline from Iniesta saw Messi scamper clear on goal.

On this occasion, he slotted the ball the wrong side of the post but he was not so forgiving minutes later as he fired Barca ahead.

Iniesta was once again involved as he slipped the ball to Messi on the edge of the area and he picked his spot in the corner past the desperate dive of keeper Claudio Bravo.

A weakened Barca had drawn 2-2 with Malaga at Camp Nou in the first leg of the Spanish Cup quarter-final after they dropped their level after the break but they came out all guns blazing in San Sebastian.

Still Real have a dangerous forward line of their own and they went close to equalising after 10 minutes when Carlos Vela knocked a free-kick to Xabi Prieto, who had been left unmarked in the box, but he hit the side netting.

Real were refusing to sit back and defend and wait for their chances on the counter as so many sides do against Barca but it meant they left themselves open at the back and Pedro hit the post with a 20 yard strike on his weaker right foot.

The Canary Islander did extend Barca's lead midway through the half as he slid in to knock home a Dani Alves cross from close range.

Barca were again denied by the post after Messi had lobbed the ball over the keeper and then Real got back into the game through Castro who fired in a clinical drive from the left of the area after being set up by Vela.

After the break Real managed to ruffle Barca with Pique receiving a second yellow card and then Castro got his second of the night.

Real were pressing forward and an Asier Illarramendi deep cross found Castro whose shot was deflected in off Javier Mascherano.

There was no late rally this time as has so often happened this season from Barca and instead they conceded at the death as Agirretxe scored from close range.

- AFP/de

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Snooker: Dott dumps Trump out of Masters tournament

LONDON: Judd Trump produced one of his worst displays in a 6-1 quarter-final loss to Graeme Dott at the Masters on Friday.

Several times Trump, taking on the role of fans' favourite in the ongoing self-imposed exile of crowd pleaser Ronnie O'Sullivan, missed pots by inches or left routine balls in the jaws of the pocket.

Former world champion Dott was not in the best of form himself, with the Scot's only major break a contribution of 111 in the final frame, but he did at least take some of the chances presented by his English opponent.

Judd insisted he would not linger on the disappointment of defeat, telling the BBC: "By the time I've got home, I will have already forgotten about it.

"I couldn't get going. It wasn't there today (Friday)."

He added: "I tried my best out there but it didn't happen. It's the worst I've felt and played since breaking through."

Meanwhile a bemused Dott said: "It's weird, you expect Judd to play well and sometimes, if someone doesn't play well, it puts you off.

"He really struggled from the first frame. I've not had any form for the last four or five months and even today I felt I missed a lot of bad shots. It was going to be hard for Judd to live up to how he had been playing."

- AFP/de

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Lagarde warns more global recovery work needed

WASHINGTON: International Monetary Fund chief Christine Lagarde warned Thursday that more efforts were needed to get the global economy back on track.

"We stopped the collapse, we should avoid the relapse, and it's not time to relax," Lagarde said at a news conference at the multilateral institution's Washington headquarters.

"There's still a lot of work to be done."

The IMF managing director, while pointing to signs of economic improvement, noted deterioration on the jobs front, which she called "critical from an economic point of view but also from a social point of view."

"We need growth for jobs and jobs for growth," she said.

The eurozone, the centre of the public debt crisis dragging down global growth, and where the IMF together with the European Union has rescued Greece, Ireland and Portugal, has to do more to address its challenges, she said.

Financial firewalls erected by the European Union and the European Central Bank, such as the European Stability Mechanism rescue fund and ECB bond purchases, "have not proven operational."

"Progress needs to be made on the banking union," she added.

Lagarde suggested further monetary easing in Europe may be appropriate to sustain demand.

As for the United States, the IMF chief called on bitterly divided politicians to reach a compromise on the nation's borrowing limit and deficit-reduction plans.

"All sides should pool together in the national interest" to avoid another "avoidable political mistake", she said.

With the mandated US borrowing limit already reached, and the Treasury using extraordinary measures to avoid putting the world's biggest economy into default, Republicans are tying raising the ceiling to spending cuts.

Democratic President Barack Obama has rejected that basis for negotiations.

More than four years after the US financial crisis plunged the global economy into recession, Lagarde also called for completion of financial system reforms.

She expressed concern about the banking sector's tendency to drag its heels with regulation, especially the international Basel III standards.

"It's the constant approach by the industry to actually push back because it's nicer to operate without regulation rather than with regulation."

"I might be a little blunt but that's my experience as a former minister of finance (in France) and having observed the profession close by," she added.

Asked about Japan's desire to curb appreciation of the yen, Lagarde reiterated her firm opposition to currency wars and other competitive devaluations.

"If only the risks of retaliation should actually prevent anybody to go into that sort of monetary policy," she said.

- AFP/jc

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US to recognise first Somali government in 20 years

WASHINGTON: The United States will on Thursday recognise the first Somali government in two decades, heralding a significant shift in ties since the deadly 1993 attack on US helicopters over Mogadishu.

The beginning of the new chapter will come when US Secretary of State Hillary Clinton exchanges diplomatic notes with visiting Somali President Hassan Sheikh Mohamud, a top US official said Wednesday.

"The visit here this week of the new Somalian president Hassan Sheikh Mohamud represents a significant change in the security and political situation on the ground in Somalia and our relationship with that country," Assistant Secretary of State Johnnie Carson told journalists.

It will be Clinton's first meeting with the new Somali leader who was only elected in September, and was relatively unknown outside his country.

Somalia has not had an effective central government since 1991. Two years later, Americans were shocked by scenes of US soldiers being dragged through the streets of Mogadishu after Somali militants shot down two Black Hawk helicopters. Eighteen Americans died, and 80 were wounded.

However, a new Somali administration took office last year, ending eight years of transitional rule by a corruption-riddled government.

And in recent months, a 17,000-strong African Union force, fighting alongside government troops and Ethiopian soldiers, finally wrested a string of key towns from the control of Islamist Shebab insurgents.

Carson hailed recent US policies on Somalia, and praised the work of African nations through the African Union force in Somalia AMISOM, which helped oust the militants from their last major stronghold of Kismayo in September.

"This has been a major, major success. We are long way from where we were on October 3, 1993 when Black Hawk down occurred in Mogadishu," Carson said.

"Significant progress has been made in stabilising the country and in helping to break-up and defeat al-Shebab. Much more needs to be done but we think enormous progress has been made," he added.

Carson has repeatedly stressed that the success in Somalia should be seen as a model for African-led peacekeeping forces in the region.

A university lecturer, Hassan Sheikh Mohamud defied predictions and was chosen by lawmakers as Somalia's new president from among a dozen hopefuls in September elections.

Clinton swiftly congratulated him on his win, which was hailed by the US administration as "an important milestone" for the country.

His party described the new president as the architect of Somali civil society, and unlike many Somali politicians he is not part of the diaspora.

But he inherits an ongoing war, a humanitarian crisis, feeble institutions and deeply entrenched warlordism. Al-Qaeda-linked Shebab rebels, who still control vast swathes of the country, dismissed his election as illegitimate.

The US move on Thursday will open doors to the country, which will also be the focus of a new international conference to be hosted in Britain in May.

"This will build on last year's successful meeting in London to help sustain international support for the progress being made by the Somali government," a spokeswoman for the office of British Prime Minister David Cameron said.

A US official, who asked to remain anonymous, said no official American aid package would be unveiled at the State Department meeting on Thursday.

However "the fact that we recognise a government there would allow us to do things through USAID we have not been able to do before," he said.

"The fact that we recognise them as the legitimate government would allow the World Bank and the IMF to do things that they had not been able to do before."

- AFP/jc

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Thousands commemorate Kurds slain in France

VILLIERS-LE-BEL: Thousands of mourners gathered in the French capital on Tuesday to pay an emotional final tribute to three female Kurdish activists who were shot dead there last week.

Coffins containing the bodies of the three women and draped in the Kurdish flag were carried by female pall-bearers into a community centre in the Paris suburb of Villiers-le-Bel.

They were then placed on an altar surrounded by candles and wreaths in the yellow, red and green of the Kurdish flag before black-clad mourners, many of them clutching a single rose, filed past.

Photographs of the three women, Sakine Cansiz, Fidan Dogan and Leyla Soylemez were placed in front of their coffins for a ceremony attended by Kurds from all over Europe.

"We are here to ensure their commitment to the cause they fought for will not be forgotten," said 20-year-old Jiyan.

Fellow mourner Guler Biger wiped away tears and added: "May their killers be found soon."

The bodies of the three women were found inside a Kurdish information centre in Paris last Thursday. They had all been shot repeatedly in the head in what French authorities have described as an execution.

Victim Sakine Cansiz was a founding member of the Kurdistan Workers' Party (PKK) and the other two women also had links to the outlawed group, which has been fighting for Kurdish self-rule in southeastern Turkey for nearly three decades.

The killings could have been linked to ongoing negotiations between the Turkish authorities and jailed PKK leader Abdullah Ocalan that have raised hopes of a deal to end the conflict.

The negotiations are controversial with hardliners on both sides and one theory is that the murders may have been designed to derail the talks.

Kurdish activists believe the killings must have been the work of Turkish extremists while Turkey has suggested an internal PKK feud is a more likely explanation.

French police are investigating the possibility of a link to PKK fundraising activities, some of which have been described as extortion.

The women's coffins are due to be flown to Turkey on Wednesday for burial in their native towns or villages in the southeast of the country.

- AFP/jc

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Lance Armstrong apologises in person to Livestrong staff

AUSTIN: Fallen cycling hero Lance Armstrong personally apologised Monday to staff members of the Livestrong cancer charity ahead of his much anticipated interview with talk show diva Oprah Winfrey.

"Lance came to the Livestrong Foundation's headquarters today for a private conversation with our staff and offered a sincere and heartfelt apology for the stress they've endured because of him," Livestrong spokeswoman Rae Bazzarre told AFP.

She added that Armstrong -- a cancer survivor who founded the charity in 1997 -- urged Livestrong staffers "to keep up their great work fighting for people affected by cancer."

Journalists staked out Armstrong's home in Austin earlier Monday ahead of his interview with Winfrey, during which the disgraced cyclist is reportedly planning to admit to doping.

For years he has repeatedly denied taking performance enhancing drugs to win the Tour de France and other big cycling events.

Reporters, photographers and TV crews took up positions Monday across the street from Armstrong's opulent Austin home, which is surrounded by a 2.4-metre stone wall.

The interview with Winfrey is scheduled to be taped at Armstrong's home on Monday and is to air on her OWN cable network on Thursday.

The announcement that Armstrong had agreed to an interview has sparked widespread speculation that he might finally confess to being a drug cheat after years of strenuous denials.

According to USA Today, Armstrong plans to confess in the interview to doping throughout his career, but will not go into great detail about specific cases and events.

It will be Armstrong's first interview since he was stripped in October of his seven Tour de France titles after the US Anti-Doping Agency (USADA) said he helped orchestrate the most sophisticated doping program in sports history.

Any confession by Armstrong could have legal or financial ramifications, particularly among big-name corporate sponsors such as Nike that had loyally stood by him even as doping allegations grew.

Since the International Cycling Union effectively erased him from the record books, Britain's The Sunday Times has sued Armstrong for more than £1 million over a libel payment made to him in 2006.

It had paid Armstrong £300,000 to settle a libel case after publishing a story suggesting he may have cheated, and now wants that money plus interest and legal costs repaid.

On Sunday, the Sunday Times took out an ad in the Chicago Tribune newspaper setting out 10 questions that Winfrey, whose OWN media network is based in the Midwestern metropolis, should ask Armstrong.

"Is it your intention to return the prize money you earned from Sept. 1998 to July 2010?" read one question. "Did you sue the Sunday Times to shut us up?" went another.

A Texas insurance company has also threatened legal action to recoup millions of dollars in bonuses it paid him for multiple Tour victories.

Armstrong's years of dominance in the sport's greatest race raised cycling's profile in the United States to new heights.

It also gave the Texan -- diagnosed in 1996 with late-stage testicular cancer that had spread to his brain and lungs -- a unique platform to promote cancer awareness and research.

The Lance Armstrong Foundation has raised almost US$500 million since its creation in 1997.

In the wake of the allegations, several top sponsors dumped Armstrong and on November 14 the Livestrong Foundation dropped his name from the non-profit organisation he founded.

- AFP/jc

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Urgent CO2 cuts may spare millions hardship: report

PARIS: Tens of millions of people may be spared droughts and floods by 2050 if Earth-warming carbon emissions peak in 2016 rather than 2030, scientists said on Sunday.

Climate researchers in Britain and Germany said emission cuts now would delay some crippling impacts by decades and prevent some altogether.

By 2050, an Earth heading for warming of 2-2.5 degrees Celsius by 2100 could have two very different faces, depending on the route taken to get there, said their study published in the journal Nature Climate Change

Policies that cap Earth-warming carbon emissions in 2016 and then reduce them by five per cent per year could see between 39 and 68 million people spared exposure to a higher risk of water shortages by 2050, Nigel Arnell of the University of Reading told AFP.

This is the best-case scenario, though.

In contrast, if emissions peak in 2030 and fall by five per cent annually, the number of people who escape this risk drops to between 17 and 48 million.

Similarly, about 100-161 million people would avoid a higher risk of river flooding on the 2016-peak scenario.

This compares to 52-120 million people if emissions peak 14 years later, said Arnell, director of the university's Walker Institute on climate change.

"Basically in 2050, the 2030-peaking policy has about half to two-thirds of the benefit than the best (2016) policy," even though both lead to a similar temperature peak of about 2-2.5 deg C by 2100, he said.

"You may hit the same (temperature) point at the end of the century but... the mayhem that's been caused on the way to that point is different under the different pathways."

Under a scenario without any emissions curbs, temperatures could rise as much as 4-5.5 deg C, said the new paper which claimed to be the broadest assessment yet of the benefits of avoiding climate change impacts.

Global average warming of 4 degrees Celsius would see almost a billion people have less water in 2100 than they have now, and 330 million will be at greater risk of river flooding, Arnell told a pre-release press conference.

A peak in 2016 seems unlikely, with the world's nations aiming to adopt a new global climate pact by 2015 for entry into force only five years later.

The latest round of UN climate talks that concluded in Doha, Qatar in December failed to set pre-2020 emissions cuts for countries that have not signed up to the Kyoto Protocol that seeks to curb warming, even as scientists warned the concentration of carbon in the atmosphere continues to rise.

Three of the world's four biggest polluters -- China, the United States and India -- are among those with no binding emission limits, which cover countries responsible for only about 15 per cent of the world's carbon pollution.

Many scientists believe that Earth is set for warming that will be far above the United Nations' 2 degrees Celsius target on pre-industrial levels.

"Reducing greenhouse gas emissions won't avoid the impacts of climate change altogether of course, but our research shows it will buy time to make things like buildings, transport systems and agriculture more resilient to climate change," said Arnell.

- AFP/jc

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Vowing revenge, 15,000 rally in Paris over Kurd killings

PARIS: At least 15,000 Kurds from all over Europe vowed revenge as they rallied Saturday in Paris over the killing of three top Kurdish activists from a separatist group banned in Turkey.

The march, which began at the city's Gare de l'Est railway station, was emotionally charged, with demonstrators saying France would be an accomplice in the brazen murders if it did not identify and punish the killers.

Organisers disputed the police estimate saying more than 50,000 people joined the demonstration.

"This crime is a crime against the Kurdish people and against peace," said a woman demonstrator, calling for an end to the listing of the Kurdistan Workers' Party (PKK) as a terrorist organisation.

"The French state bears a responsibility. If the perpetrators of these crimes are not found, France will be indisputably considered as an accomplice," said a leaflet published and distributed by France's main Kurdish association, Feyka.

"It's the first time something like this has happened in Europe," said Celine Yildirim, a waitress in Paris who gained political asylum in France after being jailed in Turkey.

"We want to know who did this."

The demonstrators, marching under grey skies and an intermittent drizzle, held banners saying "Intikam! PKK," using the Turkish word for revenge, and "The Martyrs of the Revolution Are Eternal."

The three activists -- Sakine Cansiz, Fidan Dogan and Leyla Soylemez -- were found dead on Thursday at the Kurdistan Information Centre in the grimy 10th district of Paris, after last being seen alive at the centre at midday on Wednesday.

They were all shot in the head, at least three times each.

Cansiz was a founding member of the PKK, which took up arms in 1984 for Kurdish self-rule in southeastern Turkey and is branded a terrorist organisation by Ankara and much of the international community.

Police put the number of marchers at 15,000. They came from Belgium, the Netherlands, Britain, Switzerland and especially Germany, which is home to 800,000 Kurds, of whom 13,000 are believed to be PKK members.

Fikriye Cinar, who drove to Paris with eight members of her family from the German city of Dortmund, said she had "not really slept for three days as these murders have shaken me."

The killings came days after Turkish media reported that Turkey and the PKK leadership had agreed a roadmap to end the three-decade Kurdish insurgency, which has claimed more than 45,000 lives.

The deal was reportedly reached during a new round of talks between the Turkish government and jailed PKK leader Abdullah Ocalan which the government acknowledges have been taking place with the aim of disarming the rebels.

"This attack comes at a time when talks are on to find a solution to the Kurdish problem in Turkey," said Kurdish association Feyka.

French President Francois Hollande had said the murder was "terrible", adding that he knew one of the Kurdish women and that she "regularly met us" -- a comment seized upon by Turkish Prime Minister Recep Tayyip Erdogan, who on Saturday sought an explanation from Paris.

"How can he regularly meet with these people who are members of a group listed as a terrorist organisation by the European Union and who are wanted under red bulletin (issued by Interpol)?" Erdogan asked.

Erdogan said Hollande "must explain immediately to the French, Turkish and world public why... he is in communication with these terrorists."

The Turkish leader repeatedly accused some European states, including France and Germany, of obstructing Ankara's fight against the PKK, saying that they were letting PKK members freely circulate on their territory.

Experts have suggested a number of potential motives for the killings, including an attack by Turkish extremists and internal feuding within the PKK.

There are around 150,000 Kurds in France, the vast majority of them of Turkish origin.

-AFP/ac

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China landslide kills 43, three missing

BEIJING: Three people remain missing after a landslide which killed 43, including seven from a single family, struck a remote village in southwestern China, state media said Saturday.

Another two victims were sent to hospital after being rescued from the debris from the landslip on Friday which engulfed 16 homes in the village of Gaopo, the official news agency Xinhua said.

It reported that 19 children were among those caught in the disaster.

Rescuers continued their search for the three missing people in the early hours of Saturday morning, with the help of lamps and life detectors in freezing conditions, Xinhua said.

It added that the landslide had been triggered by prolonged rain and snow, according to initial geologists' reports.

Photos posted on Yunnan Web, run by the Yunnan provincial government, showed rescuers in orange uniforms digging into wide swathes of mud against a backdrop of snow-covered, terraced hills.

A video posted on a Chinese social networking site appeared to show a group of villagers digging through thick mud and debris to uncover a body, which was carried away on a stretcher.

"The landslide, which brought about several hundred thousand cubic metres of watery mud to the village, buried all of the houses there," Xinhua quoted a local rescue team leader, Sun Anfa, as saying.

The conditions "created great difficulties for rescue efforts amid low temperatures", he added.

More than 1,000 rescuers were sent to the disaster site, which was estimated to be 300 metres (1,000 feet) long, 80 metres wide and 30 metres deep, according to authorities.

Snow was visible in images of the rescue, in an area that has experienced unusually low temperatures in recent weeks during what authorities have called China's coldest winter in 28 years.

The Communist Party's top leaders Xi Jinping and Li Keqiang, along with Premier Wen Jiabao, ordered "all-out efforts to rescue victims", Xinhua said

It reported that villagers had rushed to the scene with shovels and hoes to dig through the mud.

"We pulled out several people, one of whom was breathing weakly, but after a while he died," resident Li Yongju told Xinhua.

Another resident, Zhou Benju, said she had lost several relatives in the disaster, according to the agency.

"Several relatives of my parents, my grandma, brother, uncle and my aunt's family members died," she said.

Yunnan province, which borders Myanmar, Thailand, Laos and Vietnam, is a relatively poor part of China where rural houses are often cheaply constructed.

Gaopo is in Zhenxiong county, in the northeast of Yunnan, a temperate province known for its tobacco industry and for being the home of Pu'er tea.

But its mountainous areas are prone to landslides and earthquakes. Two in September -- one of magnitude 5.7 -- left 81 people dead and hundreds injured.

Wen made an overnight trip to the quake zone at the time to comfort survivors, many of whom had taken refuge in tents erected on a public square.

A county neighbouring Zhenxiong was hit by a landslide in October that killed 18 children, after one which killed 216 people in 1991, according to the United States Geological Survey.

An earthquake in neighbouring Sichuan province in 2008 claimed around 70,000 lives -- the worst natural disaster to hit China in three decades, with shoddy buildings blamed for the high toll.

-AFP/ac

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US will stand by Afghanistan, Panetta tells Karzai

WASHINGTON: The United States sought to assure Afghan President Hamid Karzai on Thursday that it would remain committed to his country even as US officials weigh a major withdrawal of American forces.

After an elaborate military ceremony for Karzai outside the Pentagon, US Defense Secretary Leon Panetta told his "distinguished visitor" that more than 10 years of war had paved the way for Afghanistan to stand on its own.

"After a long and difficult past, we finally are, I believe, at the last chapter of establishing a sovereign Afghanistan that can govern and secure itself for the future," Panetta said.

"We've come a long way towards a shared goal of establishing a nation that you and we can be proud of, one that never again becomes a safe haven for terrorism."

He also offered Karzai assurances that the future of the two countries was now entwined.

"We have sacrificed together -- that has created a bond that will not be broken in the future," Panetta said.

Since US-led troops toppled the Taliban in 2001 after the September 11 attacks, the Afghan president has had a stormy relationship with his US allies, and officials here want to demonstrate Washington's full-fledged support.

The talks come as President Barack Obama, newly elected to a second term, charts a plan to pull most of the 66,000 US troops out of Afghanistan -- well down from a high of about 100,000.

The United States and its NATO allies have already agreed to withdraw combat troops by the end of 2014, but questions remain on a US training and security role after that.

Throughout his visit, Karzai is expected to push for a substantial US military presence in Afghanistan after 2014.

But some White House officials favour only a light footprint of several thousand troops, and Ben Rhodes, a deputy national security adviser, even suggested Tuesday the United States might pull out all of its troops.

US military officers privately acknowledged those comments about a total withdrawal were primarily designed as a tactic in negotiations with Kabul.

Karzai was also due to meet later Thursday with US Secretary of State Hillary Clinton, for talks and an official dinner at the State Department, before a White House summit on Friday with Obama.

Among the issues topping the agenda at the State Department are progress on reconciliation talks with the Taliban, as well as the distribution of US aid to Afghanistan.

"We have had some modest steps forward in recent months, including a commitment by Pakistan to support Afghan reconciliation," State Department spokeswoman Victoria Nuland said.

Karzai has also pressed for more US assistance to go directly into Afghan coffers, instead of being distributed via non-governmental and aid organizations.

"We've made a pledge that about 50 per cent ought to go through the Afghan government," Nuland said earlier this week. But she stressed that this was "tied to our expectation that the Afghan government will in turn meet the commitments... with regard to continuing to make progress on corruption, on transparency, on accountability."

For his part, Karzai thanked Panetta for the US military's contributions and for the red-carpet ceremony, saying he was hopeful Washington and Kabul would work out an agreement allowing a future US military role beyond 2014.

"Afghanistan will, with the help that you provide, be able to provide security to its people and to protect its borders; so Afghanistan would not ever again be threatened by terrorists from across our borders," he said.

Karzai also voiced confidence the two countries can "work out a modality for a bilateral security agreement that will ensure the interests of Afghanistan and also the interests of the United States."

- AFP/jc

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Oil prices weaken after US energy report

NEW YORK: Crude oil prices retreated Wednesday after a US oil inventory report pointed to large increases in refined petroleum products.

Oil prices for US benchmark West Texas Intermediate settled five cents lower at US$93.10 a barrel.

In London, the Brent contract for February finished at US$111.76 a barrel, losing 18 cents from Tuesday.

The decline came after a weekly report by the US Energy Information Administration reported surprisingly large increases in stocks of gasoline and distillate fuel, a category that includes home heating oil.

Gasoline stockpiles in the week ending January 4 surged by 7.4 million barrels, far higher than forecasts for a rise of 2.1 million barrels. Reserves of distillates soared 6.8 million barrels, well beyond the expected 1.4-million-barrel increase.

And US crude oil stocks grew by 1.3 million barrels, below the 2.2 million-barrel forecast according to a survey by Dow Jones Newswires.

Crude futures also fell Wednesday on lingering concerns over the US economy despite solid earnings from aluminium giant Alcoa, analysts said.

Global markets have shifted their attention from the US fiscal debate to corporate earnings to gauge the health of the world's biggest economy and largest oil consuming nation going into 2013.

"The recent fiscal cliff-inspired rally is fast becoming the 'Ghost of Christmas Past' as traders shift their focus to US corporate earnings," said Jason Hughes, head of premium client management at IG Markets in Singapore.

"Solid gains notched up in the first week of the year across global markets are so far just being nibbled at by fears of disappointing fourth-quarter profits across US blue chip stocks."

- AFP/jc

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Clinton to testify on Benghazi on January 22

WASHINGTON: Secretary of State Hillary Clinton will appear before US lawmakers on January 22 to be quizzed about a damning inquiry into a deadly militant attack on a US mission in Libya, a senator said Tuesday.

Clinton had initially been due to testify to US lawmakers in late December after the scathing probe blamed "grossly inadequate" security at the diplomatic outpost in Benghazi, eastern Libya, for failing to protect staff there.

But she was forced to cancel her testimony and send in her two deputy secretaries instead when she fell ill with a virulent stomach bug, and later suffered a concussion and blood clot.

Ambassador Chris Stevens and three other Americans were killed when hordes of heavily-armed militants overran the compound and a nearby annex on September 11, unleashing a bloody and terrifying eight-hour assault.

Senator Bob Corker, ranking Republican member of the Senate Foreign Relations committee, told MSNBC television he had been in discussions with Clinton's top aides about setting a new date for her to testify.

"My sense is her hearing probably will take place the morning of the 22nd," Corker said.

"She's anxious to want to come up and testify on Benghazi, and I think that's an important thing both for her and for our entire country."

Clinton returned to work on Monday after a month-long absence, and is busy drawing up her schedule for her final weeks in office.

State Department spokeswoman Victoria Nuland reiterated Tuesday that the plan was for Clinton to testify about the Benghazi attack while still in post, and before a confirmation hearing for veteran senator John Kerry.

President Barack Obama has tapped Kerry to replace Clinton, who will be stepping down after four years in office, but his nomination requires Senate confirmation.

- AFP/jc

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Israel commentators unfazed by Hagel nomination

JERUSALEM: Israeli commentators played down the impact on relations with the United States of Monday's nomination as Pentagon chief of Republican former senator Chuck Hagel, criticised by heavyweights in his own party for being anti-Israel.

"Barack Obama did not choose Chuck Hagel because of his views on Israel and the president will not base his Israel policy on the views of Chuck Hagel", said the commentator of Israel's Channel Two television.

"On the contrary, as the president underlined, he will remain the commander in chief of foreign policy," the commentator said, adding that he did not expect US military aid to Israel of more than US$3 billion a year to be affected if Hagel's appointment was confirmed by the Senate.

The commentator of Channel 10, also privately owned, said Obama had nominated the Republican primarily to help push through major spending cuts within the US military.

He said the one person who might struggle with Hagel as defence secretary was Israeli Prime Minister Benjamin Netanyahu, who had bad personal relations with him. Hagel "is not an enemy of Israel but an enemy of Netanyahu," he said.

Rightwing pro-Netanyahu freesheet Israel Hayom said in an editorial before the nomination that his appointment would be "problematic".

"Hagel believes that Israeli-Palestinian conflict destabilises the Middle East. Let's hope there are people in the Pentagon who remind him from time to time of the existence of Iran," it said.

Pro-opposition daily Haaretz countered that Hagel's positions on the peace process were "shared by a large number of Israelis on the centre and left of the political spectrum."

Despite the fact that he is a fellow Republican, heavyweights in his party have accused him of hostility toward Israel and naivety on Iran.

Republican Senator Lindsey Graham, pointing to Hagel's calls for direct US negotiations with Iran and for Israel to negotiate with Hamas, said he would be "the most antagonistic defence secretary towards the state of Israel in our nation's history."

Another Republican senator, John Cornyn of Texas, said he would oppose the nomination, charging it would be the "worst possible message we could send to our friend Israel and the rest of our allies in the Middle East."

Hagel himself pledged on Monday to give his "total support" for Israel.

There is "not one shred of evidence that I'm anti-Israeli, not one vote (of mine) that matters that hurt Israel," he told The Lincoln Journal Star newspaper in his home state of Nebraska.

- AFP/jc

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Global regulator eases liquidity rules for banks

BASEL: The world's top banking regulatory body on Sunday eased the first global liquidity rules scheduled to start applying to banks in 2015 and aimed at improving their ability to survive financial crises.

The Basel Committee on Banking Supervision said at a press conference that it had widened the definition of the easy-to-sell assets that banks will have to hold to survive periods of stress.

The Basel III standards had been initially proposed in 2010 but banks and financial institutions have since lobbied intensely to make the rules more flexible and result in lower costs for the sector.

The details of the Liquidity Coverage Ratio (LCR), which was drafted to avoid a repeat of the 2008 banking crisis and unanimously endorsed on Sunday by the Basel group's top oversight body, give the banks a reprieve.

Its provisions include a much broader definition of the minimum assets every bank needs to hold, making it less costly for them to maintain the required buffer.

"The changes to the definition of the LCR, developed and agreed by the Basel Committee over the past two years, include an expansion in the range of assets eligible as HQLA (high quality liquid assets)," the committee said.

The new LCR's full details will also be fully implemented only in 2019, instead of 2015 as initially proposed.

"Specifically, the LCR will be introduced as planned on 1 January 2015, but the minimum requirement will begin at 60%, rising in equal annual steps of 10 percentage points to reach 100% on 1 January 2019," the Basel group announced.

Mervyn King, Chairman of the Basel group's top oversight body and Governor of the Bank of England, described the agreement announced Sunday as "a very significant achievement."

"For the first time in regulatory history, we have a truly global minimum standard for bank liquidity," said King.

The Basel Committee brings together representatives regulators from 27 nations.

"Importantly, introducing a phased timetable for the introduction of the LCR, and reaffirming that a bank's stock of liquid assets are usable in times of stress, will ensure that the new liquidity standard will in no way hinder the ability of the global banking system to finance a recovery," King said.

Stefan Ingves, chairman of the Basel Committee and of Sweden's Sveriges Riksbank, said the global regulator could now focus on the Net Stable Funding Ration, another pillar of the Basel III reforms.

"The completion of this work will allow the Basel Committee to turn its attention to refining the other component of the new global liquidity standards, the Net Stable Funding Ratio, which remains subject to an observation period ahead of its implementation in 2018," he said.

- AFP/jc

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IMF chief praises Malawi reforms for economic recovery

LILONGWE, Malawi: IMF chief Christine Lagarde on Saturday praised Malawi's President Joyce Banda for "bold" economic recovery reforms, saying the measures will lead to a turn-around despite their unpopularity.

"Notwithstanding the current hardships, many of my interlocutors were confident the ongoing reforms will turn the economy around, an optimism that I share," said Lagarde, wrapping up an official visit to Malawi.

During her trip, Lagarde has praised the reforms which she said had restored stability after Banda inherited a serious crisis characterised by foreign exchange shortages that crippled key imports such as fuel.

Banda has overseen the devaluation of the kwacha currency by 50 percent, the easing of foreign exchange restrictions, and the raising of fuel prices and cutting of subsidies since taking office last April.

Criticised at home for floating the currency under pressure from the International Monetary Fund, she has assured that "there will be no backtracking".

"I welcome government efforts to address unforeseen challenges through her continued commitment to economic reforms," Lagarde, the fund's managing director, said in a statement.

She said the country had already made "significant progress" in addressing serious imbalances that were hampering economic growth just a few months ago.

Lagarde said during meetings with Banda, she stressed the "need to stay the course, while putting in place social protection programmes to alleviate the impact of adjustment measures on the poorest households."

She said Malawi's recent economic situation has been difficult, adding that drought and lower than expected foreign exchange earnings had "dampened growth and contributed to a spike in inflation in 2012."

Earlier on Saturday Lagarde stressed the need for Malawi to diversify its economy, saying a reliance on agriculture left the country and its economic recovery vulnerable.

"Following these reforms, the economic wheels started spinning again. But progress is threatened anew by a slump in agriculture," she said, with the sector accounting 30 percent of GDP and tobacco nearly half of export earnings.

The fund has halved its 2012 growth forecast for the impoverished nation to around two percent but predicts a rate of 5.5 percent this year.

Private sector investment must be made easier and poor infrastructure in areas such as electricity and transport upgraded, she said, with Malawi scoring 129 out of 144 countries in the World Economic Forum's Global Competitiveness Index.

The IMF, one of the main backers of the country's reforms, gave Malawi a three-year $157 million loan package in June after ties had broken down amid a spree of global aid suspensions under president Bingu wa Mutharika.

In 2011, the global lender suspended a $79.4 million credit facility during the administration of the late leader who died last year.

Donors provide up to 40 percent of the development budget and salaries for nearly 170,000 civil servants.

Under Mutharika, relations with the IMF had become tense after he refused to devalue the currency as the global lender had advised, arguing it would trigger inflation and hurt the poor. In Malawi, 39 percent of the 13 million population live on less than a dollar a day.

Several key donors, including former colonial power Britain, suspended aid, citing concerns about growing authoritarian tendencies in Mutharika's government.

- AFP/de

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Oil prices mixed; WTI up on US crude supply drop

NEW YORK: Oil prices were mixed Friday, with the New York WTI higher on data showing crude supplies unexpectedly shrank sharply in the United States, the world's biggest oil consumer.

New York's main West Texas Intermediate contract, light sweet crude for delivery in February, rose 17 cents from Thursday to close at US$93.09 a barrel.

In London trade, Brent North Sea crude for February settled at US$111.31 a barrel, down 83 cents.

The New York market found support after the US Department of Energy's weekly petroleum inventories statement, said Bill Baruch of iiTrader.com.

"The crude inventories was a big draw; however the gasoline was a big build," Baruch said.

Crude supplies dived by 11.1 million barrels in the week ended December 28, much more than the 1.0 million consensus estimate of analysts polled by Dow Jones Newswires.

Still, US crude supplies were 9.2 per cent higher than their year-ago level.

Gasoline supplies rose by a stronger-than-expected 2.6 million barrels, and distillates, which include diesel and heating oil, climbed by 4.6 million barrels.

Investors also digested an in-line US jobs report for December that showed job growth remained too slow to significantly reduce unemployment.

The jobless rate was unchanged at 7.8 per cent and a modest 155,000 were added last month, according to the US Labor Department.

Earlier, WTI and Brent prices were sharply lower after minutes of the December US Federal Reserve policy meeting, released Thursday, showed central bank officials were divided over the duration of asset purchases, signalling they could end as early as this year.

"Prices were... driven down following the move by the US Federal Reserve to signal a possible end to fiscal stimulus this year, which has raised concern that the economic recovery may falter," said Inenco energy analyst Gary Hornby.

- AFP/jc

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Fiat says to boost stake in Chrysler to 65.17%

ROME: Italian auto giant Fiat on Thursday said it was exercising its option to increase by 3.3 percentage points its stake in US automaker Chrysler to 65.17 per cent for US$198 million.

Fiat said the value of the purchase from a trust run by the US auto union UAW to pay health care benefits for Chrysler retirees was its estimate, which still had to be determined by a US court.

In July, the Italian company said it was exercising its option to purchase another 3.3-percent tranche from the Voluntary Employee Beneficiary Association (VEBA) trust.

"Following the consummation of both purchases, Fiat will hold 65.17 per cent of the outstanding equity in Chrysler," the company said in a statement.

Fiat took over operational command of the ailing US automaker in June 2009, when Chrysler emerged from a government-supported bankruptcy following a collapse in sales amid the financial crisis.

In June 2011, Fiat took a majority stake of the company and Fiat boss Sergio Marchionne is now also chief executive of the Chrysler Group, though the two groups still operate independently.

Marchionne does not foresee a full merger before 2015.

- AFP/jc

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US shooting relatives blast theatre offer

LOS ANGELES: Relatives of victims massacred by a gunman in a Colorado movie theatre criticised Wednesday an invitation to its re-opening as a "ridiculously offensive" publicity ploy.

Family members of nine of the 12 people who died in Aurora, outside Denver in July said the invitation's timing was particularly painful over the Christmas holiday, and called for others to boycott the "special evening of remembrance."

"During the holiday we didn't think anyone or anything could make our grief worse," they wrote in a letter to movie theatre chain Cinemark.

"But you, Cinemark, have managed to do just that by sending us an invitation two days after Christmas inviting us to attend the re-opening of your theatre in Aurora where our loved ones were massacred.

"Thanks for making what is a very difficult holiday season that much more difficult. Timing is everything and yours is awful."

As well as those killed, 58 people were wounded at a midnight premiere of the Batman movie "The Dark Knight Rises." Alleged gunman James Holmes, 24, reportedly wore body armour and threw smoke bombs before opening fire.

The massacre revived the perennial debate about US gun control laws, triggered again by the killing of 26 people including 20 young children at a Connecticut elementary school last month.

Wednesday's letter by Aurora victims' relatives said Cinemark -- which is facing a number of lawsuits from relatives and survivors alleging lax security -- had never reached out to the families to offer condolences.

"This disgusting offer that you'd 'like to invite you and a guest to a special evening of remembrance on Thursday, January 17 at 5 PM' followed by the showing of a movie and then telling us to be sure 'to reserve our tickets' is wholly offensive to the memory of our loved ones.

"Our family members will never be on this earth with us again and a movie ticket and some token words from people who didn't care enough to reach out to us, nor respond when we reached out to them to talk, is appalling."

They added: "We, the families, recognise your thinly veiled publicity ploy for what it is: a great opportunity for you to distance yourselves and divert public scrutiny from your culpability in this massacre.

"After reading our response to your ridiculously offensive invitation, you now know why we will not be attending your re-opening celebration and will be using every social media tool at our disposal to ask the other victims to ask their friends and family to honour us by boycotting the killing field of our children."

There was no immediate response from the theatre chain.

- AFP/jc

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