The Foreign Ministers of the G-8 failed to agree on the introduction of no-fly zone over Libya during today’s meeting in Paris. Meanwhile, rebels against the regime in the country were repulsed by the forces of Muammar Gaddafi in the clashes today. The Foreign Minister of France Alain brimstone said after the G8 meeting, he failed to convince Russia to sign the proposal for an air blockade on Libya. Other countries in the group, including Germany, have also raised objections to military intervention in the country. For tougher measures against the North African country also urged Britain.
“One must ask whether military intervention would harm more than help,” said German Foreign Minister Guido Westerwelle told reporters after the meeting. “I do not want to be at war in North Africa and we do not want to step on the slippery slope.”
The Libyan Air Force attacked insurgents in the city and Adzhedabiya road that connects it with the oil port shore, where rebels and government troops are fighting for control in recent days. The helicopters have dropped leaflets promising amnesty for people who support the regime of Gaddafi. Soldiers from the Army Gaddafi have reached about 20 km from Adzhedabiya and fired missiles at it. The government forces have regained and Zuara, the last city held by insurgents west of Tripoli, after artillery fire today.

The USA is risking unprecedented to loss of influence in international institutions like the World Bank, if Congress does not approve payment of the agreed contributions. The funds earmarked for the regional development banks are the main goal of the Republicans in their attempt to limit the federal budget. Their proposal to cut the budget for this fiscal year by 61 billion dollars includes cut by almost two thirds of the foreseen development banks $ 3 billion.
“In the case with the World Bank to reduce the funding the U.S. will lose its right to veto changes in the contract for the bank,” said the U.S. Treasury Secretary Timothy Geithner. Under the plan the Republicans this year the U.S. will allocate U.S. $ 106.6 million to the Asian Development Bank (ADB) and will not make the promised payments to a wide range of funds of the United Nations (UN) and World Bank for environmental projects in developing countries and ensure security of food supplies. The officials from the potentially affected institutions stated that the negative effect that will be felt in developing countries will be short as long as other donors to continue their payments. However, they stress that if you abandon the promised funding, the U.S. will pay the price with a loss of influence.
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The Russian government yesterday approved a plan to sell state assets to about 1 trillion. rubles (or 32 billion dollars) through privatization of state companies over the next three years. This became clear after yesterday’s meeting of the Russian cabinet, writes Reuters. By selling part of its stake in some of the largest and most attractive Russian companies, the state hopes to reduce the large budget deficit and attract key investors. Late last week it became clear that Russia’s budget deficit amounted to 2.1 percent of gross domestic product (GDP) during the first ten months of the year. For the whole year 2010 the government of the expected budget deficit of 5.4 percent of GDP or 2.4 trillion rubles (76.60 billion dollars). Minister of economic development Elvira Nabiulina told reporters yesterday that large-scale privatization is not only a means to reduce the budget deficit, but primarily to attract investment in key economies of the Russian companies. By selling shares in them and the government hopes to attract foreign investors to improve corporate governance of some of the most powerful companies in the country.
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The deadline for public and private sectors to settle transactions for goods or services will be 30 days as a general rule. Private companies will still be able to negotiate payments with each other for a period of 60 days or even longer if both parties expressly agree and if this is not “very unfair” to the creditor. It provides agreement on this issue between the European Parliament (EP) and EU Council, which is scheduled to be signed next week, announced the Information Office of the EP. Hence indicate that during the current economic crisis late payments for services or goods can lead to bankruptcy of some firms accrued late charges. To support SMEs in Europe are particularly vulnerable to late payments from customers, the EP agreed with the Council to update the directive on late payments, to “tighten” the rules seriously limits. Members have made special efforts in future legislation to underpin the rule that public authorities can not defer payment for more than 60 days are highlighted in the message. Furthermore, on default rates for late payments provided they are BIR plus at least 8%.
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The cement manufacturer Holcim announced that the Venezuelan government will compensate the company with 650 million dollars for the nationalization of its business in the country, announced BBC. The Swiss company has received an initial payment of $ 250 million and 390 million dollars will be paid within four years. Subsidiary of Holcim Venezuela was nationalized in 2008 and has since been struggling to receive compensation. The assets of the French cement producer Lafarge SA and Mexican Cemex SAB in Venezuela were also nationalized in 2009. Lafarge SA has reached a compensation agreement with the government of Hugo Chavez worth $ 250 million. Venezuela nationalized assets in many sectors, including steel, oil and banking services. The compensation of the cement giant is quite small in comparison with the size of the company, but according to the financial government Venezuela, this is the only was to keep the workers and employees on their places and continue the work and producing cement.
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The U.S. President Barack Obama signed the bill today for the biggest U.S. financial reform of the years since the Great Depression, which put an end to the year-long debate about how to change regulation of the banking sector. According to the Obama reform will encourage innovation in the financial industry, rather than prevent them, as many fear. During the signing in Washington today, he said that the changes will ensure a level playing field and fair competition among industry representatives. The law is named after its main author – Senators Christopher Dodd and Barney Frank. It gives the government the opportunity to divide into smaller banks that threaten the stability of the financial system and impose restrictions on trade in derivatives. It is also envisaged the creation of an Agency for the Protection of Consumer Rights, which will be part of the Federal Reserve. It will monitor all financial products – from mortgage to credit cards. Under the new Bush rules will provide the strongest financial protection for consumers in U.S. history.
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While military budgets are shrinking the world, the largest customer of the military industry Pentagon redirect resources from expensive high-tech equipment to helicopters. “The market is very good for producers of military helicopters, says Phil Danrof, executive director of special production of Boeing Co. “I expect this to continue over the next five years,” he added. Analysts forecast between 2009 and 2018 the global market for helicopters to double as producers are expected to supply 15 000 helicopters worth 174.4 billion dollars, of which 6,157 military worth 130 billion dollars, says in the study of Teal Group. Sales of helicopters are fantastic and this is the only market worldwide over the past four years, reported robust double-digit growth, “said Richard Abolafia of Teal. Expectations of analysts are sales of military helicopters to increase until 2015, when it will be maintained at a constant level. Besides the helicopters are essential vehicle of the western armies, they have considerable interest in developing countries, which hedges the industry from a possible reduction of the budgets of Western governments. Helicopters are a key component for the wars in Afghanistan and Iraq. For 2009, the Pentagon increase annual demand for new helicopters to 54 of 44 for light helicopters, 66 to 81 for Blackhawk and 37 CH-28 for 47.
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The Bank of Japan (YATSB) adjusted downward its forecast for growth of the Japanese economy in 2011, after the Debt Crisis in Europe worsened outlook for the global economy. Monetary institution, and leave the base rate in the country of its record low level of 0.1 percent for the 20th consecutive month after today’s meeting in line with market expectations. Its management expects gross domestic product (GDP) to increase by 1.9 percent next fiscal year which begins on April 1, 2011 This is less than forecast in April growth of 2 percent, says Bloomberg. For this fiscal year provides YATSB GDP growth of 2.6 percent from the previous forecast of 1.8 percent. With regard to deflation, it is expected to amount to 0.4 percent for the year. The rapid economic development of Asian countries is among the most important factors for improving forecasts of the Japanese economy this year. With the depletion of the effects of fiscal incentives for governments, however, next year is expected lower economic growth. Japan’s economy grew more than expected 5% of the aligned on an annual basis in the first quarter. Compared with the last three months of 2009 it increased by 1.2 per cent. Limited bank credit deflation and persist in the country, however, led YATSB to draw another 3 trillion. yen in the banking system. In December 2009 it spent 10 trillion. yen as short-term loans to banks, the amount was doubled to 20 trillion. yen in March. The home loan comparison is giving good sign for economy recovery, but still under the expectings from the government.
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The U.S. economy has made in the right direction but not fast enough. It said the president of the country Barack Obama after the publication of data on the labor market in June, which contributed to fears that the recovery is delayed, AFP reported. The Data of the Ministry of Labor indicated that last month the U.S. economy lost jobs for the first time since December. But Obama tried to be positive. “Our economy has created nearly 600 thousand jobs in the private sector this year,” he said. “We are headed in the right direction, but we have not made fast enough for most Americans. We have not made fast enough for me, “he said. The president promised to do everything in their jobs.
The US economy is recovering from the financial crisis and the expecting for the future economy growing is positive. It was mentioned twice from Obama, that USA will follow economy growing in each case and each price. The US government invested large value of money for developing of the key companies for the economy.
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Venezuela announced on Friday that U.S. Helmerich & Payne Inc. (H & P) is the only one of 33 oil companies operating in the country which has refused to renegotiate prices. Of the 32 companies with which the terms were renegotiated 18 are foreign and 14 – local businesses. “Although the meetings with representatives and heads of Helmerich for nearly a year because of their strong position was not possible to reach an agreement,” said a statement from state oil company Petroleos de Venezuela (PDVSA). Socialist government of President Hugo Chavez announced last week its plans for the nationalization of unused oil platforms Helmerich 11th and start extracting oil. These platforms are out of service more than a year. Helmerich stopped them because Venezuela’s PDVSA owed 43 billion dollars of work done. Since based in Tulsa, Oklahoma company said it wanted to pay them before they put them back. Helmerich also expected to resolve disputes with foreign PDVSA, some of which are related to the January devaluation of local currency – Bolivar. The foreign ministry of the United States be involved in the dispute on Friday urging the Government of Venezuela to compensate the U.S. oil companies if they decide to nationalize part of their facilities. Simply urged them to compensate the owners of oil wells if they undertake such a step, “said Marc Tounar, spokesman for the ministry. PDVSA said that “does not accept the statement made by the spokespersons of the American Empire, which once again is trying to complicate relations with our partners.”
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