First commercial rocket launch set for Saturday
Diane Alter – Fourth Estate Cooperative Reporter Cape Canaveral, Fla., United States (4E) – The SpaceX Dragon capsule is set to blast off from Cape Canaveral Air Force Station Saturday morning atop the company’s Falcon rocket. It marks the first commercial attempt to fly to the International Space Station in history. The Falcon rocket is scheduled for liftoff at 4:55 a.m. EDT. The flight is designed to show that Dragon can rendezvous and berth with the International Space Station, where it is expected to remain for about 18 days. Space Exploration Technologies, or SpaceX, has been working under NASA’s Commercial Orbital Transportation Services program for the last six years to design, test and fly new cargo vehicles suitable for travel to the ISS. Since the United States’ space shuttle program ended, NASA has been looking to commercial companies to take over the service. Article © AHN – All Rights Reserved
Bumpy road to economic recovery
Blantyre, Malawi (IRIN) – A sizeable devaluation of Malawi’s currency, aimed at reinvigorating the economy and wooing back international donors, has triggered steep increases in the price of basic goods and pushed many Malawians deeper into poverty. Former president Bingu wa Mutharika, who died suddenly in April 2012, had resisted calls by the International Monetary Fund (IMF) to devalue the Malawian kwacha as a way to boost exports, arguing that it would cause too much suffering to the poor. The kwacha remained pegged to the US dollar at a rate of 166, creating a parallel informal market in which the dollar was sold at more than 300 kwacha, draining foreign currency from the formal banking system. A sizeable devaluation of Malawi’s currency, aimed at reinvigorating the economy and wooing back international donors, has triggered steep increases in the price of basic goods and pushed many Malawians deeper into poverty. Former president Bingu wa Mutharika, who died suddenly in April 2012, had resisted calls by the International Monetary Fund (IMF) to devalue the Malawian kwacha as a way to boost exports, arguing that it would cause too much suffering to the poor. The kwacha remained pegged to the US dollar at a rate of 166, creating a parallel informal market in which the dollar was sold at more than 300 kwacha, draining foreign currency from the formal banking system. Mutharika’s refusal to meet the IMF’s demands and concerns about his increasingly autocratic style of governance resulted in a significant loss of donor support that at one time had accounted for 40 percent of the country’s budget, and helped to push Malawi towards financial collapse. Malawi’s new president, Joyce Banda, has moved quickly to restore relations with donors, in part by meeting the IMF’s conditions for a support package. On 7 May, she devalued the kwacha by nearly 50 percent and untied the currency from the dollar. In a statement by the Reserve Bank of Malawi on the same day, Governor Charles Chuka said the move was intended not only to improve the availability of forex and unlock donor flows, but also to reduce demand for imported consumer goods in favor of domestically produced goods. He noted that since the prices of most commodities already reflected the parallel market exchange rate, devaluation was not expected to trigger further price increases. However, the prices of many basic items have gone up by as much as 50 percent…
U.S. adds anti-dumping tariffs to Chinese solar panels
Linda Young – Fourth Estate Cooperative Writer Washington, D.C., United States (4E) – The U.S. Commerce Department has taken action against China’s communist government illegally dumping its products on America’s markets by imposing a 31 percent tariff on solar panels. Officials say that Chinese companies will have an opportunity to challenge the new ant-dumping tariff before it takes effect later this year. U.S. solar panel makers requested action from the Commerce Department because Chinese companies were selling panels on the U.S. market at below-market prices. China quickly responded to the tariff, with Chinese state television alleging it was protectionist, “unreasonable and without basis.” The Commerce Department’s ruling further raised trade tensions, which were already running high over issues such as China’s manipulation of its currency, its imports of Iranian crude oil and its tight export quotas on rare-earth minerals that are critical to the manufacture of electronics. In addition, Chinese state television anchors noted that the tariffs mean that Chinese companies might withdraw from U.S. markets. China practices state capitalism in contrast to free market democratic capitalism. The key difference is that China’s communist government owns a share of most businesses and factories and takes part of the profits, while the U.S. government does not own businesses and factories and depends on taxes from business for revenue. The U.S. Commerce Department has often accused China’s government of illegally subsidizing its factories, including solar panel makers, which makes it difficult for businesses in the U.S. to compete. Chinese companies affected by the anti-dumping tariff include Suntech Power Holdings Co., Trina Solar Ltd. and Yingli Green Energy Holding Co. The Commerce Department in March imposed anti-subsidy tariffs ranging from 3 percent to 5 percent on Chinese solar companies. Article © AHN – All Rights Reserved
Moody’s downgrades 16 Spanish banks, four regional governments
Linda Young – Fourth Estate Cooperative Writer Madrid, Spain (4E) – Credit ratings agency Moody’s announced Thursday it downgraded 16 Spanish banks. The downgrades included the nation’s two largest banks, Banco Santander and BBVA, which Moody’s downgraded by three levels. Those banks were dropped to A3, the same as the Spanish government, from Aa3. Seven other banks were also cut by three levels while another seven were kept on review for further cuts in ratings, Moody’s said. Moody’s cited the fact that Spain has fallen back into recession. The ratings agency also expressed concern over the banks’ exposure to Spain’s failing economy and the “reduced” ability of the Spanish government to support the banks in a crisis. Earlier on Thursday, Moody’s also downgraded the credit ratings of Spanish regional governments in Catalunya, Murcia, Andalucia and Extremadura. Moody’s cited concerns over those governments using debt to fund operations. Article © AHN – All Rights Reserved
Fitch downgrades Greek sovereign debt
Linda Young – Fourth Estate Cooperative Writer Athens, Greece (4E) – Fitch Ratings downgraded the credit rating of Greece’s government again on Thursday. Greece’s credit rating dropped from a B- to a CCC, which puts it deeper into junk bond territory. That means many investors cannot buy Greek debt even if they thought it was a good investment. The drop in ratings also increases the risk that Greece may not be able to hold on to its membership in the Economic and Monetary Union. In addition, Fitch downgraded Greece’s short-term foreign currency rating to C from B. Greece is now operating under a caretaker government with elections scheduled for next month. Fitch cited the increased risk that Greece could be forced to leave the eurozone following those elections. Article © AHN – All Rights Reserved
Clinton urges Americans to invest in Myanmar, names ambassador
Windsor Genova – Fourth Estate Cooperative News Writer Washington, D.C., United States (4E) – Secretary of State Hillary Clinton on Thursday urged Americans to invest in Myanmar and named Derek Mitchell ambassador to the Southeast Asian country as part of the continuing warming of relations between the two countries. “Today, we say to American business: Invest in Burma and do it responsibly; be an agent of positive change and be a good corporate citizen; let’s all work together to create jobs, opportunity, and support reform,” Clinton said after a meeting with Myanmar Foreign Minister U Wunna Maung Lwin at the State Department’s Treaty Room. Clinton said American investment in Myanmar “will help bring the country into the global economy, spur broad-based economic development, and support ongoing reform.” The easing of years of economic sanctions on Myanmar, also known as Burma, follows the suspension of similar sanctions by the European Union and the United Kingdom in response to political reforms initiated by the country’s ruling junta last year that saw the election of a president, U Thein Sein, the holding of the first parliamentary elections and release from house arrest of dissident leader Aung San Suu Kyi, who eventually was elected a lawmaker. However, U.S. sanctions on certain Myanmar officials and entities that committed human rights violation and restrictions on investment with the military will remain. The appointment of Mitchell, who has been the special representative to Myanmar, indicates formal restoration of diplomatic relations that was suspended more than 20 years ago. Myanmar’s representative to the United Nations, U Than Shwe, will be Mitchell’s counterpart. Article © AHN – All Rights Reserved
Senate confirms Federal Reserve nominees
Diane Alter – Fourth Estate Cooperative Reporter Washington, D.C., United States (4E) – The Federal Reserve will soon have a full roster, the first time in six years, after the Senate Thursday confirmed two of President Obama’s nominees to the central bank. Given the nod were 59-year-old Jerome Powell, a lawyer and former investment banker, and 51 year-old Jeremy Stein, an economics professor. The newly approved Powell and Stein received more bipartisan support because they represent both sides of the aisles. Powell is a Republican and has donated to presidential candidates John McCain in 2008, and more recently Mitt Romney. He has been working as a visiting scholar at the Bipartisan Policy Center in D.C. He also served as Undersecretary of the Treasury for Finance under President Georg H,.W. Bush. Meanwhile, Stein donated to Obama’s campaign. He is an economics professor at Harvard and served as an adviser to Treasury Secretary Timothy Geithner. The Washington, D.C. based Federal Reserve Board is suppose to be lead by seven voting members. But, the last time all of the those were filled was in April 2006. The seven fabled members of the Board of Governors are the central bank’s highest ranking officials. Appointed by the presiding president, and conformed by the Senate, they serve 14 year terms. Most, however, resign, retire, or step down prior to completing the full term. Article © AHN – All Rights Reserved
Realty Trac: foreclosures dropped to lowest level since 2007
Linda Young – Fourth Estate Cooperative Writer Irvine, CA, United States (4E) – The number of foreclosure filings nationwide dropped in April to its lowest level since July 2007, although foreclosure activity actually increased in some areas of the country. RealtyTrac, the leading online marketplace for foreclosure properties, released its April report on foreclosure filings on Thursday. The report showed shows that foreclosure filings, consisting of default notices, scheduled auctions and bank repossessions, were reported on 188,780 properties. Foreclosure activity decreased 5 percent in April, compared with March. It was down by 14 percent compared to April 2011. In addition, repossessions by banks dropped significantly to 51,415 repossessions last month, down 26 percent compared to a year ago. That number was also about 50 percent of the 102,000 monthly repossessions at the peak of repossession in September 2010. However, one in every 698 U.S. housing units had a foreclosure filing during the month, RealtyTrac said. “Rising foreclosure activity in many state and local markets in April was masked at the national level by sizable decreases in hard-hit foreclosure states like California, Arizona and Nevada,” said Brandon Moore, CEO of RealtyTrac. “Those three states, and several other non-judicial foreclosure states like them, more efficiently processed foreclosures last year, resulting in fewer catch-up foreclosures this year. “In addition, more distressed loans are being diverted into short sales rather than becoming completed foreclosures,” Moore continued. “Our preliminary first quarter sales data shows that pre-foreclosure sales — typically short sales — are on pace to outnumber sales of bank-owned properties during the quarter in California, Arizona and 10 other states.” Article © AHN – All Rights Reserved
Verizon ending unlimited data for phone upgrade
Linda Young – Fourth Estate Cooperative Writer New York, NY, United States (4E) – Verizon Wireless announced it would begin phasing out unlimited data plans for customers as they upgrade their plans. Smartphone customers with unlimited data plans will be shifted to tiered plans when they upgrade to a new phone beginning this summer. Verizon stopped selling new customers unlimited data plans last year. The company said it will also implement a new “data share” pricing model that will allow customers to buy an allotment of data that they can use for multiple wireless devices linked to the same account. That plan will be rolled out about mid-summer. Observers say the change is driven by the need to increase revenue. Because most people already have cell phones, it is increasingly difficult to increase revenue by bringing in new customers. That means increasing revenue becomes a matter of squeezing more money out of existing customers. Article © AHN – All Rights Reserved
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