EU to give itself until mid-2014 to work on reform-for-money plan - draft

European Union leaders will give themselves until June next year to work out how governments can sign contracts to conduct reforms and get some form of EU financial support in return, draft conclusions of an EU summit this week showed on Monday.

The option of legally committing to a reform in exchange for money would apply to euro zone countries, but be open also to non-euro zone members of the 28-nation European Union, the draft conclusions of the December 19-20 summit said.

How exactly the system would work, and, more importantly, where the money in support of the reforms would come from, is to be worked out by the head of the European Commission Jose Manuel Barroso and the summit chairman Herman van Rompuy by June 2014.

The contracts would be for reforms that boost economic growth or create jobs, increase the efficiency of the public sector, help research and innovation, education and vocational training, employment and social inclusion, the conclusions said.

As an incentive to undertake them, the contracts "would include associated solidarity mechanisms offering support, as appropriate, to member states", the draft, seen by Reuters said.

Source:  Reuters

KKR to acquire its specialty finance company for $2.6 billion

 KKR & Co LP  said it would acquire its specialty finance company KKR Financial Holdings LLC (KFN)  in a $2.6 billion deal, paid for with KKR shares trading at an all-time high, that will boost the private equity firm's dividends .

Launched by KKR in 2004 to invest primarily in a variety of corporate loan and bond instruments, KFN now has a market value of $1.9 billion, a fraction of KKR's $17.7 billion market capitalization.

By taking over KFN, however, KKR expects to generate additional earnings by substituting fee revenue it receives for managing KFN on behalf of KFN shareholders with investment income to be generated .

It plans to distribute 100 percent of the investment income it receives from KFN to KKR shareholders. Using a consensus estimate of Wall Street analysts, KKR's total dividend is expected to be 7 percent higher in 2014 as a result.

The transaction has echoes of KKR's merger with KKR Private Equity Investors LP in 2009, a heavily undervalued Amsterdam-listed private equity fund, which led to KKR becoming public and having a much bigger balance sheet than its peers.

While KFN was not as discounted as KPE, it traded at 0.9 times its book value despite its 9.2 percent dividend yield. Its shares are down 9.8 percent year-to-date versus a 64 percent year-to-date rise in the shares of KKR. KKR's offer, which has been approved by the boards of both entities, values KFN at 1.15 times book value.

Source: Reuters

U.S. ignored appeals for Syria chemical arms proof - Russia

  Russia on Monday accused Washington of ignoring Moscow's appeals for proof of Syrian government involvement in chemical weapons attacks in Syria during the country's more than 2-1/2-year-old civil war.

Moscow's allegations against Washington come as both say they are encouraging peace talks that Western powers and Gulf Arab states hope will lead to the departure of Syrian President Bashar al-Assad and the formation of a transitional government.

"Our requests for additional information which could prove the Syrian government involvement in the use of chemical weapons were ignored by Washington," Russian U.N. Ambassador Vitaly Churkin told reporters after a closed-door meeting on chief U.N. chemical arms investigator Ake Sellstrom's final report.

Churkin said allegations about Syrian government involvement in chemical attacks, including an August 21 sarin gas attack that killed hundreds of people, "were not persuasive." He said Moscow viewed the August 21 incident as a provocation by the rebels.

The Russian ambassador referred to what he said was information released by former U.S. spy agency contractor Edward Snowden. U.S. relations with Russia have been strained in recent months over Moscow's decision to grant temporary asylum to Snowden, who leaked documents about widespread U.S. surveillance activity.

"The lack of any proof (about Syrian government use of chemical arms) was particularly strange because as the public learned from the media reports based on Edward Snowden's materials the United States had powerful intelligence assets in Syria," Churkin said.

Source: Reuters

Economía peruana se recupera y crece 5,42 pct en octubre.

 La economía peruana se expandió en octubre un 5,42 por ciento, ligeramente por encima de lo esperado por el mercado, impulsada por la recuperación de las actividades vinculadas a la demanda interna y del clave sector minero, dijo el lunes el Gobierno.

El Producto Interno Bruto (PIB) de Perú, un país rico en recursos naturales, anotó así su mayor avance interanual desde abril, con una cifra en octubre también mayor al 4,37 por ciento interanual de septiembre, aunque menor al 6,98 por ciento interanual registrado en octubre del año pasado.

"Cuatro sectores aportaron más del 50 por ciento al crecimiento del mes de octubre: comercio, servicios, construcción y manufactura", dijo el jefe del INEI, Alejandro Vilchez, en una conferencia de prensa.

Con el crecimiento de la actividad productiva en octubre, que analistas en un sondeo de Reuters habían previsto en un 5,2 por ciento, la economía local acumula una expansión de 4,93 por ciento en los primeros 10 meses del año, informó el Instituto Nacional de Estadística e Informática (INEI).

Y en los últimos 12 meses la economía de Perú, el tercer productor mundial de cobre y zinc, avanzó un 5,04 por ciento.

En términos desestacionalizados, la economía se expandió un 1,1 por ciento en octubre frente a septiembre, precisó el INEI.

DEMANDA Y CONSUMO

La economía peruana se ha desacelerado este año presionada en gran medida por factores internacionales, como la baja de los precios de los metales y una menor demanda de grandes consumidores de materias primas como China y Estados Unidos.

Para atenuar la desaceleración, el Gobierno está implementando medidas para elevar la inversión pública en obras de infraestructura, mientras que el Banco Central ha reducido su tasa de encaje bancario para impulsar los créditos en el país.

Y en noviembre, el Banco Central sorprendió al recortar su tasa clave de interés al 4 por ciento, desde un 4,25 por ciento.

De los sectores claves de producción, destacaron el crecimiento en octubre de los rubros de comercio y construcción, en 6,37 por ciento y 6,24 por ciento respectivamente, lo que denota una recuperación de la demanda y el consumo interno.

El sector de construcción, una de las actividades que más empleo genera en el país, se contrajo un 1,3 por ciento en septiembre, su primera caída mensual en 26 meses.

"Se ha visto una dinámica de crecimiento generalizada, todos los sectores han crecido más del promedio de lo que va del año, excepto construcción, en que se ha visto una tasa de crecimiento menor a meses anteriores", dijo el jefe de estudios económicos del Banco de Crédito, Juan Carlos Odar.

"Parte de ese resultado de construcción se explica en una desaceleración de la inversión pública en el sector", agregó.

MINERIA SE RECUPERA

También avanzaron las actividades de servicios, en un 7,80 por ciento; de manufactura, en un 3,02 por ciento; y del sector de finanzas y seguros, en un 10,56 por ciento, dijo el INEI.

En tanto, el sector de minería e hidrocarburos -vital en Perú porque representa el 60 por ciento de las exportaciones totales- se recuperó para expandirse un 5,78 por ciento en octubre, tras caer un 2,08 por ciento en septiembre.

La actividad minera ha sido golpeada por la menor producción de metales preciosos y básicos, aunque está prevista una mejora en los próximos meses por la entrada en operaciones de importantes minas como Toromocho de Chinalco.

Asimismo se anticipan mejores datos para noviembre, uno de ellos es el adelantado por el organismo de estadística de la producción de electricidad -un indicador importante del desempeño de la industria- que creció un 5,03 por ciento.

Según las estimaciones oficiales, el PIB peruano crecería este año en torno al 5,2 por ciento, frente al avance de 6,3 por ciento en el 2012.

En el mercado laboral, la tasa de desempleo de la capital de Perú en el trimestre móvil septiembre-noviembre bajó marginalmente a un 5,8 por ciento, desde el 5,9 por ciento del mismo lapso del año pasado, por un aumento del empleo dentro de la población de entre 25 y 44 años.

Fuente: Reuters

Canoandes, Rafting in the Colca Canyon,Arequipa, Peru. (Will Continue)

This breathtaking panorama of Tokyo is the second largest photo in the world

Photography group 360Cities seems determined to capture every major city in the world in as much detail as possible. Shortly after putting together a360-degree panorama of London and breaking the record for world's largest photo in the process, the group's founder Jeffrey Martin set his sights on Tokyo for his next project. This latest panorama may not trump his old record, but at 180 gigapixels, it's still the second largest photo ever taken.
Back in September of 2012, Martin spent two days on the roof of the Tokyo Tower's lower observation deck to shoot the 10,000 individual images that would eventually form the completed panorama. Each photo was shot with a Canon 7D digital SLR fitted with a Canon 400-mm f5.6 L lens. The camera was mounted to a Clauss Rodeon VR Head ST robotic panorama rig, moved to three spots around the tower, and programmed to automatically capture the entire vantage point.

Fujitsu Technology Solutions sponsored the project and provided the Celsius R920 workstation that pieced together the final panorama into an image that viewers can explore by panning and zooming in on the scenery. Even with 192 GB of RAM and a 12-core processor, the computer needed 12 weeks to process the image, plus some extra time to convert it into an interactive panorama for online viewing.

It may fall well short of breaking the record for the world's largest photo, which clocked in at a mammoth 320 gigapixels, but this is still the largest photo of Tokyo ever made. The full image measures 600,000 x 300,000 pixels, which would produce a photo stretching 100 m (328 ft) wide and 50 m (164 ft) tall if it were printed at a normal photographic resolution. From the camera's viewpoint of 20 stories high, it's possible to spot specific structures and landmarks up to 30 km (18 miles) away, including the city's tallest building, the Tokyo Skytree.

The level of detail seen in the panorama is remarkable. Zooming into some areas, you can easily make out an individual person's face, read license plates, and even peek inside some shop windows. There are a few stray glitches here and there (lighting that shifts unnaturally, buildings merged with plants, duplicated people and cars, etc.), but they don't detract from the stunning snapshot of the city laid out before you.

Source: 360cities, Gizmag.

Nagoya Univ. denies manipulation of data in Novartis drug trials

Nagoya University released an interim report Friday denying its manipulation of data on clinical trials for the Diovan hypertension drug of Novartis AG.

The university was the first to deny the manipulation among five universities that conducted clinical trials of the Swiss company's drug. It became the fourth to announce a report on the clinical trials, whose data were possibly changed.Nagoya University conducted the clinical trials in question from October 2004 to July 2010 on 1,150 hypertension patients with complications such as diabetes at 46 hospitals in order to compare the effectiveness of Diovan with that of a similar drug.
Based on the trials, the university said in an article in a U.S. science journal in 2012 that fewer Diovan users were hospitalized for cardiac arrest.
Of the other universities, Kyoto Prefectural University of Medicine and Jikei University have admitted data manipulation, and Shiga University of Medical Science has said it could not rule out the possibility of manipulation.

Source: NewsOnJapan

China continues rights abuses even as labour camps ditched -Amnesty

China is increasingly using extra-judicial "black jails" and drug rehabilitation centres to punish people who would formerly have been sent to forced labour camps, rights group Amnesty International said on Tuesday. 

China vowed last month to do away with hundreds of labour camps, as part of a landmark package of social and economic reforms. Official news agency Xinhua has said there are 350 such camps across the country, with up to 160,000 inmates.

But many of those in extra-judicial jails and rehabilitation centres are being punished for their political or religious beliefs, the London-based rights group said.

"It's clear that the underlying policies of punishing people for their political activities or religious beliefs haven't changed," said Corinna-Barbara Francis, Amnesty's Chinaresearcher.

"The abuses and torture are continuing, just in a different way."

China's Justice Ministry did not answer calls seeking comment.

The camps are part of a controversial programme called re-education through labour that lets police detain political and religious dissidents for up to four years without any judicial process.

Such dissidents include petitioners, government critics, members of the banned spiritual group Falun Gong and petty criminals.

Amnesty, in a report based on more than 60 interviews with families, lawyers and former inmates conducted over five years, found the use of other forms of extra-judicial detention, especially drug rehab facilities, had widened and could supplant the labour camp system.

Source: Reuters

Japan to bolster military, boost Asia ties to counter China

Japan will boost its military spending in coming years, buying early-warning planes, beach-assault vehicles and troop-carrying aircraft, while seeking closer ties with Asian partners to counter a more militarily assertive China.

The planned 2.6 percent increase over five years, announced on Tuesday, reverses a decade of decline and marks the clearest sign since Prime Minister Shinzo Abe took office a year ago that he wants a bigger military role for Japan as tension flares with Asia's other big power over islands both claim.

Abe's top priority has been reviving a long-sluggish economy, but he has also pledged to strengthen Japan's military and boost its security profile to meet what he says is a threat from China's rapid military buildup and recent actions to back its claims to Japanese-held islands in the East China Sea.

"China is attempting to change the status quo by force in the skies and seas of the East China Sea and South China Sea and other areas, based on its own assertions, which are incompatible with the established international order," Japan said in its first national security strategy, one of three plans approved on Tuesday.

"China's stance toward other countries and military moves, coupled with a lack of transparency regarding its military and national security policies, represent a concern to Japan and the wider international community and require close watch."

Abe's government also vows to review Japan's ban on weapons exports, a move that could reinvigorate struggling defence contractors like Mitsubishi Heavy Industries Ltd and Kawasaki Heavy Industries Ltd.

The policies, including a five-year military buildup plan and a 10-year defence guideline, call for stronger air and maritime surveillance capabilities and improved ability to defend far-flung islands through such steps setting up a marine unit, buying unarmed surveillance drones and putting a unit of E-2C early-warning aircraft on Okinawa island in the south.

Japan will budget 23.97 trillion yen (142.4 billion pounds) over the coming five years for defence spending, up from 23.37 trillion yen from the previous five years.

Under current procurement practices, the five-year spending would have been 24.67 trillion yen, but the government expects to save 700 billion yen from streamlining procedures to cut costs, officials said.

Military spending had fallen for 10 years until Abe boosted the defence budget 0.8 percent this year. The Defense Ministry is seeking a 3 percent rise in the year from next April, the biggest increase in 22 years, although much of the growth reflects higher import costs due to a weaker yen.

Source: Reuters

GSK to stop paying doctors to promote drugs - NY Times

GlaxoSmithKline Plc  will stop paying doctors to promote its products, Chief Executive Andrew Witty said in an interview with the New York Times, in a move that could be a first for a major drug company.

GSK will also stop tying compensation of sales representatives to the number of prescriptions doctors write, the NY Times said. 

The company's decision comes at a time when GSK faces allegations of illegal payments to Chinese doctors and officials.

Chinese police have accused GSK of funnelling up to 3 billion yuan ($494 million) to travel agencies to facilitate bribes to boost its drug sales. The accusations are the most serious against a multinational in China in years.

However, in the interview Witty said that the proposed changes were unrelated to the investigation in China, and are part of a yearslong effort "to try and make sure we stay in step with how the world is changing."

Witty declined to comment to the newspaper on the Chinese investigation because he said it was still underway.

Source: Reuters

China says six arrested after deadly riot in Xinjiang

Chinese police have arrested six people they suspect of taking part in a riot near the old Silk Road city of Kashgar, in the restive far western Muslim region of Xinjiang, in which 16 people were killed, the regional government said.

The arrests, reported by the Xinjiang government in a statement on an official news site late on Monday, came a day after Chinese police shot and killed 14 people during the riot. Two policemen were also killed.

The government statement called the incident "an organised, pre-meditated, violent terror attack".

"The gang repeatedly gathered to watch violent, terrorist videos, promoted extremist religious ideology, manufactured explosive devices and guns, conducted test explosions several times and planned to carry out violent terrorist activities," the Xinjiang government said.

China has previously called some of the violence in Xinjiang the work of Islamist militants plotting holy war.

On Monday, China's Foreign Ministry stopped short of directly blaming Islamist militants but said a "violent terror gang" attacked police with explosives.

The Xinjiang government said the "terror gang" made up of 20 members was formed in August and was led by a person they named as Hesen Ismail.

Reuters was not able to independently verify the charges. Foreign journalists are often harassed and sometimes denied access to sensitive areas in Xinjiang.

A police officer reached by Reuters on Monday in the county where the incident occurred said it was "not convenient" to provide any additional information.

Source: Reuters

Wildfire destroys homes along California's scenic coast at Big Sur

A wildfire that erupted in a scenic stretch of California's central coastline late Sunday night has destroyed at least 15 homes and forced many residents to evacuate, county and fire officials said.

The fire in Big Sur - the stunning, mountainous region south of the Monterey Peninsula that reaches into the Los Padres National Forest - grew to 550 acres by late Monday afternoon.

Some 300 firefighters were battling the blaze by Monday afternoon and more were expected to arrive on the scene by nightfall, Madsen said.

Four air tankers and four helicopters were dropping fire retardant on the flames from above, but the fire had remained entirely uncontained, Madsen said.

"This is an area that hasn't burned in quite a while and there's a real buildup of dead and decadent vegetation," Madsen said. He said strong gusts of wind overnight caused the fire to spread and the area's steep terrain has hindered fire crews from digging containment lines.

Between 15 and 20 homes have been claimed by the fire and residences along Pfeiffer Ridge Road and Sycamore Canyon Road were evacuated overnight, said Monterey County spokeswoman Maia Carroll. It was not immediately clear how many homes were threatened or evacuated.

Source: Reuters

China: Smaller cities present big job opportunities for 7 million college graduates

Finding a job is hard enough for China’s 7 million college graduates, and it’s especially so for its art students. In an age of commerce and fast economic change, there are simply fewer employers in sight despite a rising number of art related schools. Wu Haojun takes a look at just how tough the job market is for Beijing’s Peking Opera students and where the opportunities lie.

In an era of modern entertainment, is there still a place for traditional arts and an even more pressing question: what about the job prospects for those who dedicated their lives to studying the art form.

Even though the students here today are among the elite of the elite in their field.. the pressure can still get the best of them.

For students of various art disciplines, finding work is now tougher than ever. It’s estimated that only 50% of students who majored in art-related fields, find jobs shortly after they graduate, and even less, 20% to be exact, get to apply what they learned to their profession.

In such a competitive market, employers get to be a bit pickier than usual.

But not all is doom and gloom for the country’s art talents, at least outside the mega cities.Local theater groups from across China have come to the capital city in hopes of luring the best talent. Yet despite the tough job market, many are unwilling to leave the big cities.

Many students here cite better career development in the big cities as one of the top reasons for staying, and that reflects a broad sentiment among students of other majors as well. Meanwhile, some experts are advising that if the students look carefully enough, small places may offer big opportunities.

Source: CCTV

Airlines from 3 more countries comply with China's ADIZ rules

Air companies from Vietnam, Thailand and Malaysia, say they will comply with China’s new rules, agreeing to submit their flight plans before flying across China’s Air Defense Identification Zone over the East China Sea.

An official from Vietnam Airlines says China’s ADIZ lies on its flightpath to Japan. He also says it is usual to send flight plans to relevant countries when flying across their air defense zones. Thai Airways International has 76 flights to Japan every week.

And from the beginning of this month, the company has sent its flight plans to China. The company says this is conducive to flight safety, and in accordance with common practices.

Since China set up its air defence identification zone last month. Five countries including the US, and South Korea, have already said they will comply with the new rules.

Source: CCTV

Shinzo Abe: is Japan's PM a dangerous militarist or modernising reformer?

The escalating battle of nerves between Japan and China over a disputed island chain has focused the international spotlight on Shinzo Abe, Japan's pugnaciously conservative prime minister, who is carrying the heavy responsibility of war and peace on his hunched shoulders.

As east Asia's leading nations talk tensely of war and peace, Abe's critics say it is his brand of unrepentant, rightwing nationalism that has helped push the region to the brink. His supporters say Abe is rightly, finally standing up for Japan.How Abe might react if China's unilaterally imposed "air defence zone" over the Senkaku islands in the East China Sea triggers armed clashes is a serious international concern. The US is pledged to come to Japan's aid should it be attacked, while hardliners in China's military leadership would welcome a fight over what they call "core interests". There is potential for a head-on superpower collision.
Since taking office as prime minister for the second time a year ago, stocky, tousle-haired Abe, 59, has avoided hotheaded actions and kept his political powder dry. But he is no patsy, either. Nobody knows for sure which way he may jump, if push comes to shove.

Source  theguardian

Japan provides 10.46 bil. yen aid to Laos for infrastructure projects

Japan announced Sunday it will provide Laos with an aid package worth 10.46 billion yen to help the Southeast Asian country build infrastructure.

"I hope that our aid will contribute greatly to Laos' economic development," Prime Minister Shinzo Abe said at a joint press conference with Laotian Prime Minister Thongsing Thammavong after their talks at Abe's office.While Southeast Asia is recognized as a center of growth, financial disparities in the region remain between the more developed states such as Singapore and less developed ones including Laos.
The signing of an estimated 9.5 billion yen loan agreement, along with more than 900 million yen in grants, was done in the presence of the two prime ministers.
The yen loans will be disbursed to a project to expand the international airport terminal in the capital Vientiane and another project to support poverty reduction, Japan's Foreign Ministry said.
The grants will partly help in a bridge construction initiative in the southern part of Laos, the ministry said.

Source: NewsOnJapan

China: Funding, market key in push for urbanization

As urbanization increases in China, the role of the market and the availability of funds to pay for the changes are vital, officials and experts said.

Even as new-type urbanization has become the latest catchphrase in China, a lot of detailed and difficult work still needs to be done, said Li Tie, director-general of the China Center for Urban Development at the National Development and Reform Commission.

The issue can be distilled to two questions: "What is the prime concept in China's new-type urbanization?" and "How can this concept be carried out, given the flow of millions of farmers into cities?"

Li said at the Sanya Forum on Sunday that the first question was answered at the Communist Party of China Central Committee urbanization meeting, which concluded on Saturday in Beijing.

The closed-door conference clarified that China's urbanization must focus on quality development with no focus on immediate results. But the two-day meeting failed to provide a road map for doing so, he said.

According to a statement released after the central urbanization work conference, urbanization is the road that China must take in its modernization drive, and it offers an important way to address rural problems.

"One principle of urbanization is respecting the rules of the market and avoiding arbitrary decisions made by local governments. The government should go back to its original role of supervision," he said.

The widely expected development plan for the country's medium- and long-term urbanization, which is expected to offer guidance on how to turn the concept into reality, is being revised to incorporate advice from the urbanization meeting, the statement said.

China's urbanization level is 52.6 percent in terms of permanent urban residents, compared with 80 percent in Western countries.

However, only one-third of the Chinese population possesses a city hukou, which qualifies a resident for better social welfare services than a rural hukou does.

About 250 million former farmers who are now migrant workers have moved to cities, leaving parents and children in rural areas, with the expectation of being recognized as an urban resident. As urbanization is unveiled on a larger scale and land reforms are rolled out, more farmers are expected to move into cities.

Although the State Council said last year that a hukou system reform will be launched, it has not yet released any details.

But Saturday's statement of urbanization did set out a basic principle for the reform. It promises to fully remove hukou restrictions in towns and small cities, gradually ease the restrictions in midsize cities, set reasonable conditions for settling in large cities, while strictly controlling the population in megacities.

As the curtain of new-type urbanization is about to open, Wang Jianlin, president of Dalian Wanda Group Corp Ltd, said it is crucial to first figure out how the urban society can absorb the millions of former farmers, including providing them job opportunities, welfare, education and public services.

"In other words, it is a matter of how the society could find enough and sustainable money to do this," he said, "If the government cannot solve this problem, new-type urbanization will only be an empty concept."

Hong Qi, president of China Minsheng Banking Corp, said the central and western provincial areas, where the drive for economic growth were not as strong as eastern cities but the urbanization will mostly take place, have to find their own way to raise money.

"Issuing government bonds to sponsor quality enterprises and encouraging social investment in industries with local characteristics, such as the tea industry and tourism, can all boost local economic momentum," he said.

Source: China Daily

Syrian crisis calls for international wisdom

The Syrian crisis, which witnessed few ups and many downs this year, is in dire need of international wisdom to help end the conflict and ward off its spillover effects.

The crisis started more than 33 months ago and reached a tipping point in August following accusations that the Syrian government launched a deadly chemical attack in the suburbs of Damascus, violating international regulations and inciting worldwide outrage.

Syria denied the charges and accused opposition forces of fabricating the issue to frame the government and force foreign intervention.

The chemical attack, which claimed hundreds of lives, prompted U.S. President Barack Obama to consider military action against the Syrian government.

In September, UN inspectors concluded chemical weapons were used in an attack in the Ghouta area of Damascus, but did not say explicitly who was responsibility for the attack.

To the surprise of the world, Syrian President Bashar al-Assad allowed international inspectors to destroy Syria's chemical weapons in compliance with an agreement brokered between the United States and Russia.

The move averted the threat of U.S.-led military strikes, giving diplomacy a chance to work.

The United Nations said in late November a "Geneva II" conference, meant to broker an end to the Syrian crisis, was scheduled to begin on Jan. 22 in Geneva, offering a chance for the Syrian government and the opposition to meet at the negotiation table for the first time.

The world's major powers are eager to seek a peaceful solution to the conflict as early as possible, partly out of fears of the increasing threat posed by jihadists.

The number of jihadists joining the conflict has been steadily rising, according to reports, and it is feared they could establish a base for al-Qaida, which would threaten security in neighboring countries and Europe. Al-Qaida chief Ayman al-Zawahiri said recently he views Syria as a promising staging ground.

Belgian Interior Minister Joelle Milquet said up to 2,000 European jihadists were fighting against the Assad regime.

She and French counterpart Manuel Valls warned those jihadists could return to their original countries and become more radicalized.

"The danger of al-Qaida, which President Obama had said dwindled dramatically, has risen once again and is posing a menacing danger to the entire world, making it incumbent on all concerned parties to work to solve the Syrian crisis as soon as possible," political analyst Ali Refai said.

"Even if the Syrian crisis has been born out of national demands, it has now been totally hijacked by radical extremists, whose presence in Syria is a global threat," Refai said.

Western officials have hinted they might need to start talking to the Syrian regime again, suggesting the jihadists' threat is much bigger than that of the current Syrian government.

Even the Syrian opposition groups have shown willingness to engage in dialogue with the government due to the growing threat from al-Qaida-affiliated jihadist groups, such as the al-Nusra Front and the Islamic State in Iraq and the Levant. They have sent signals they want a rapid solution which could curb the jihadists' increasing power.

Concern has grown in Europe and many other nations about the growing risk the jihadists might pose for their countries once they return from Syria.

The Syrian government has made it clear it is ready to engage in the peace talks, but voiced determination to go on with its fight against terrorism.

Syrian armed forces have recently scored many new victories on several fronts against the rebels, recapturing a series of strategic towns and positions, and the army is still well in control of the Damascus, the government's stronghold.

The army's significant progress against the rebels has almost extinguished the opposition groups' hopes of military success, forcing them to accept the fact that dialogue is the only way to end the conflict.

"It seems that the world has come to a conclusion that violence will not end on the battlefield... The better place to end the Syrians' suffering is definitely Geneva," said Samar al-Hafez, a senior Syrian journalist and political analyst.

She said most Syrians had become convinced the crisis needs vigorous diplomatic efforts and a lot of international wisdom.

Esam Khalil, a Syrian lawmaker, told Xinhua the "Syrian crisis has reshaped the political landscape of the entire world," adding "the next step is the phase of international consensus."

Khalil, along with military expert Turki Hasan, said the international community must make concerted efforts to halt the support the radical rebels are getting, and choke off their smuggling routes in a bid to give the political solution a chance in Geneva.

Source: Xinhua

Syrian F.M. : Al-Qaida militants kill over 100 Syrians near Damascus

"Radical rebels from the al-Qaida  linked Nusra Front have massacred more than 100 people in a suburb of the capital Damascus", the country's Foreign Ministry said Monday.

In a letter sent to the UN to complain about the terrorists' crimes in the country, the Foreign Ministry said "the Nusra Front and the so-called Islam Brigade carried out a new massacre last Wednesday in the Adra Umalyeih suburb of Damascus, adding that the hard-liners had burnt the houses of the state servants in the area and took a large number of civilians as human shields".

The ministry also lambasted Arab news outlets that offer a media cover for the terrorists, saying those outlets financed by Saudi Arabia and Qatar are inciting sedition and killings in Syria.

It said that radical rebels from more than 80 countries are pouring into Syria, urging the UN member states to denounce the terrorism that Syria is subject to.

The Syrian army started on Friday a wide-scale offensive against the radical rebels in Adra, a military source was cited by Syria's mainstream media as saying.

"The large-scale military operation aims at dislodging the al- Qaida-linked Nusra Front fighters from Adra, a couple of days after the fighters stormed the town, killing tens of people, including state servants, and burning houses in that area.

The Nusra has also slaughtered people from the Alawite minority in Adra and placed their heads in the most popular market in the town.

"Unites of our military forces have started storming the rebels ' positions in Adra," the Syrian military source said, stressing the army's determination to "amputate the sinful hand of terrorism. "

The source added that "the criminals and those who support them will pay a steep price for the crimes they are committing against our people."

Al-Qaida-linked groups such as the Nusra Front and the Islamic State of the Iraq and the Levant have taken advantage of the anti- government movement in Syria, emerging as a serious force among the rebel groups.

The radical rebels stormed Adra following their defeat in three major towns in the rugged al-Qalamoun region north of Damascus, namely al-Nabek, Deir Attieh and Qara".

Source: Xinhua

Putin playing the tough guy again.

"Russia confirmed Monday that it has deployed its tactical Iskander-M missiles along the borders with NATO countries, insisting the deployment did not violate international treaties.

"The deployment of Iskander missile battalions on the territory of the Western Military District does not violate any respective international agreements," the RIA Novosti news agency quoted the defense ministry's spokesman Igor Konashenkov as saying.

Some Western media has reported earlier that Russia deployed these systems in its westernmost isolated Kaliningrad region and along its border with Estonia, Latvia and Lithuania.

The missiles deployed are said to have a range of 400 kilometers, which thus do not fall under a category of the middle- range missiles banned by the 1987 Intermediate-Range Nuclear Forces Treaty between Moscow and Washington.

In 2011, the then Russian president Dmitry Medvedev warned that Russia would station Iskander tactic missiles in Kaliningrad and southern Krasnodar region, should the United States implement its phased approach to the anti-missile defense program, which Moscow has repeatedly warned may cause "ice-age" in relations with the United States".

Source: Xinhua

Narita users during Winter holidays seen up 6.5 percent

The number of travelers using Narita International Airport near Tokyo during the year-end and New Year holiday period is expected to increase 6.5 pct from a year before to 1,275,900, up for the third straight year, the airport's operator said Monday.

The forecast covers the period from Friday to Jan. 5, according to Narita International Airport Corp. The number of outgoing passengers is estimated to peak on Dec. 28 at some 50,000, while that of incoming passengers will be the largest on Jan. 4 at about 49,500, the company said.

Source: NewsOnJapan

Tokyo's Imperial Palace to be open to public

The Imperial Palace in Tokyo will be open to the public for the first time ever in May and October next year, the Imperial Household Agency said Monday.

The move is designed to commemorate the 80th birthday of Emperor Akihito this year, agency officials said.

Areas for which public access will be allowed will include Seiden Matsu no Ma State Function Hall, Homeiden State Banquet Hall and Chowaden Reception Hall.

Source: Jiji Press

China: Xinjiang police attacked by rioters

Police in northwest China’s Xinjiang region shot dead 14 people during a riot late on Sunday in which two policemen were also killed.  According to the local government, the incident took place in a village near the old Silk Road city of Kashgar.

A mob threw explosive devices and wielded knives as police went to arrest criminal suspects. An investigation is underway. We’ll follow the case and bring you the latest in our later programs.

Source: Xinhua

Xinhua Insight: China contains local government debt

Chinese leaders have made cleaning up government debt a crucial task for next year, threatening to tighten fiscal discipline to defend financial stability.

Resolving risk associated with local government debt was a main theme of the Central Economic Work Conference that ended last Friday. The conference traditionally sets the tone for following year's economic policy.

Local government thirst for borrowing grew during the investment and construction binge that was part and parcel of a stimulus in 2008 to buffer against the global financial crisis. Since then, officials across the country have vied with one another to launch heavy industry and infrastructure projects that ensure skyrocketing economic growth and thus a fast track to promotion. A substantial proportion of the money invested was borrowed.

During the conference, the central leadership resolved to change an administrative mindset obsessed by GDP growth, only days after the Communist Party of China decided on a new system to evaluate officials, which includes local government debt as an important indicator.

"Designating government debt as a key task is a response to market concerns," said Ding Shuang, Senior China Economist at Citi. "It's expectation management, telling the market that local government debt will not expand without restraint."

"The risks are not impossible to diffuse if the central government pays adequate attention," Ding added. "The implied scenario here is to first tackle the increment. If the debt stops ballooning, China's debt level will decrease as its GDP grows."

Escalating local government debt has raised concern that hidden debt problems could bring instability to the banking system. so China's policymakers are vigilant against financial risk.

The National Audit Office (NAO) estimates local government debt at around 10.7 trillion yuan (1.64 trillion U.S. dollars) by the end of 2010. As the government debt level kept rising, the NAO announced a nationwide audit of government debt in July, but the results have yet to be published.

Many local government financing vehicles (LGFVs) have seen their cash flow stagnate or decline, while their debt levels have risen, according to a report released by Moody's earlier this year.

Among 388 city construction companies the rating agency surveyed, only 53 percent of them have sufficient cash to cover estimated debt and interest payments in 2013 without resorting to borrowing more. Local government debt has been a major feeder of China's shadow banking. The regulators have banned banks from directly providing loans to LGFVs after realizing they had lent too much, but local governments are still able to have their ambitious investments funded irregularly through instruments like trust loans and wealth management products.

Analysts say many shadow banking activities are actually new channels designed by and for banks to pump money to LGFVs. Local governments are willing to pay much higher interest rates than other bidders, as the current fiscal system imposes few restrictions on debt.

"Local government debt is China's biggest medium-term risk. Local governments can't be allowed to add to their borrowing without limit," said Jian Chang, Chief China Economist at Barclays. "The core issue is to work out standards to restrain the current financing which does not take cost into consideration."

At the conference, the leaders promised that strict procedures for raising debt would be put into place.

Analysts said local governments would have a harder time to borrow next year, especially if they try to pay old debts with new borrowing.

"We believe that local government bonds will gradually replace LGFV borrowing from banks and shadow bank channels, and thus reduce the non-performing loan risk faced by banks," said Ma Jun, Chief Economist at Deutsche Bank Greater China.

To establish an effective bond market in which prices truly reflect risk, the central government must dampen expectations that it will bail out default by local governments.

A statement released after the conference said local governments are to be responsible for their debts.

While the rising debt may undermine financial stability, few expect a wave of default even though GDP growth is dipping.

"The possibility of massive defaults is very small," Ding said. "To roll over a debt is still easy, and local governments are able to at least pay the interest."

Moody's does not expect widespread LGFV defaults. "We are not aware of any bond default having occurred," the rating agency said last month. "We believe that government would step in to prevent such a scenario and avoid the potential loss of liquidity in the market."

Source: Xinhua

Chinese FM outlines diplomatic priorities for 2014

Wang stressed the country's traditional friendship with other developing countries, noting that China will expand cooperation with Africa, implement its aid commitments and push for new breakthroughs in trade and economic ties with Africa.

China will also enhance cooperation with Arab countries and Latin America, Wang said, vowing to struggle for justice and preserve the interests of developing countries.

He highlighted China's strategy for a Silk Road economic zone and the 21st Century Maritime Silk Road, noting China will strive for an "early harvest" in those efforts.

Wang also pledged to promote multilateral and bilateral free trade talks, including finishing talks with the Republic of Korea (ROK) and Australia at an early date, upgrading its FTA with the Association of Southeast Asian Nations and pushing forward the China-ROK-Japan FTA talks.

"China will face the member states of the Trans-Pacific Partnership talks with an open attitude, as well as other regional or cross-region FTA initiatives," Wang said.

China will also actively participate in international economic governance reform, he noted.

Source: Xinhua