Europe
Eurozone rescue fund to be launched
The European Stability Mechanism (ESM), the eurozone’s new permanent fund to bail out struggling economies and banks, will be launched later today at a meeting of finance ministers in Luxembourg. The ESM will have a full lending capacity of €500bn ($650bn) by 2014. It will initially run alongside and then replace the European Financial Stability Facility (EFSF). Germany, Europe’s largest economy, will make the biggest contribution to the ESM, giving about 27% of its funds. Contributing countries to the ESM will make their first payments this week. The launch of the ESM comes amid growing uncertainty over Greece’s bailout and speculation that Spain will also seek a bailout, though Madrid insists that it doesn’t need one yet. Some critics believe that the €500bn firepower of the ESM will be insufficient to save the eurozone.
Nobel Prize awarded to stem cell scientists
British professor John Gurdon and Japanese professor Shinya Yamanaka, pioneers of stem cell research, have shared the Nobel Prize for medicine or physiology. The prize was awarded for their work changing adult cells into stem cells, which can become any other type of cell in the body. Prof Gurdon used a gut sample to clone frogs and Prof Yamanaka altered genes to reprogramme cells. The Nobel committee said they had “revolutionised” science – once a cell had become specialised, it was formerly thought it could not change its function. “The discoveries of Gurdon and Yamanaka have showed that specialised cells can turn back the developmental clock under certain circumstances,” said the committee.
North America
US panel warns of ‘security threat’ from Chinese firms
Chinese telecom firms Huawei and ZTE pose a security threat to the United States, a congressional panel has warned in a report to be released later today. The report recommends that two firms be barred from making any mergers or acquisitions in the USA, saying the firms had failed to allay fears about their associations with the Chinese government and military: “China has the means, opportunity and motive to use telecommunications companies for malicious purposes… based on available classified and unclassified information, Huawei and ZTE cannot be trusted to be free of foreign state influence and thus pose a security threat to the United State and to our systems”, the report said. China’s Foreign Ministry urged the US to “set aside prejudices” regarding the two firms, both of which have denied the allegations. The two firms are among the world’s biggest makers of telecoms networking equipment.
Latin America
Chavez celebrates re-election in Venezuela
Venezuelan President Hugo Chavez has hailed a “perfect victory” after defeating Henrique Capriles and securing a fourth term in office. Mr Chavez won 54% of the vote on an 81% turnout, the electoral council announced. Brandishing a replica of independence hero Simon Bolivar’s sword, Mr Chavez pledged to engage opponents and be a “better president”, vowing Venezuela would continue its “march towards democratic socialism”. He acknowledged the strong opposition vote, which reduced his margin of victory from 27 points in 2006 to 10 points over Mr Capriles. He said: “I extend from here my recognition of all who voted against us, recognition of their democratic weight… we are brothers in Bolivar’s homeland.”
Africa and Middle East
Israel attacks Gaza strip after Palestinian rocket fire
Israeli forces have shelled areas of the Gaza strip after Palestinian militants fired about 50 mortar rounds and rockets into Israel. No one was hurt in the rocket attacks that provoked Israel’s response, in which several children were among the injured. The military wings of Hamas and Islamic Jihad said the rocket attacks were a response to an Israeli airstrike yesterday, in which eight civilians were injured. The Israeli military said its intended targets were two members of “global jihadist” groups, which were suspected of involvement in a cross-border attack from Egypt in June that left one Israeli dead.
Amnesty accuses Rwanda spies of torture
Rwanda’s military intelligence has been accused of illegally detaining and torturing scores of people in a report by lobby group Amnesty International. It says the men were held for between 10 days and nine months without access to lawyers, doctors and family members. There are credible accounts of serious beatings, electric shocks and sensory deprivation to force confessions, the report says. Rwanda’s government has rejected the report, and accused Amnesty of seeking publicity.
Asia and Russia
World Bank lowers China growth forecast
The World Bank has lowered its growth forecast for China, citing weak demand for its exports and lower investment growth. The bank said it expects China’s economy to grow by 7.7% this year, down from its projection of 8.2% in May. China’s exports have been hurt by economic problems in the eurozone and the US, two of its biggest markets. Meanwhile, policymakers have found it tough to boost domestic demand enough to offset the decline in foreign sales. “China’s slowdown this year has been significant, and some fear it could still accelerate,” the bank said in its latest report.
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