Commodities tumbled for a third day, led by crude oil and corn, as Group of Eight leaders said rising energy and food costs pose a ``serious challenge'' to the global economy.
The UBS Bloomberg Constant Maturity Commodity Index has dropped 4.2 percent in three sessions, led by slumping agricultural prices. Corn has plunged as warm weather in the U.S. Midwest improved crop conditions following floods last month in states including Iowa and Indiana. Crude oil has slumped 6.1 percent in two days.
Commodities are falling after their best first half in 35 years. Record prices for fuel, soybeans, wheat, copper and other raw materials are leading oil explorers, metal producers and farmers to increase supplies. Oil has dropped 6.6 percent from its record, and corn has declined almost 10 percent from the all-time high.
``We have peaked for oil for now,'' Polar Pacific Capital Managing Director David Bensimon said yesterday in an interview in Singapore. ``With agricultural commodities facing their own vulnerability, all of this will take the shine off commodities.''
The weighted UBS Bloomberg index dropped 34.62, or 2.1 percent, to 1,641.62 at 10:22 a.m. New York time. Yesterday, the gauge, which measures 26 futures prices, fell 2.2 percent, the most since May 29.
The Reuters/Jefferies CRB Index of 19 raw materials fell 5.32, or 1.2 percent, to 453.72. Yesterday, the gauge tumbled 2.8 percent, the most since March.
Surging energy costs have rippled through the global economy by sapping household budgets and boosting production costs. The World Bank has warned that 33 countries from Mexico to Yemen faced social unrest, partly because of higher food prices.
`Risks Persist'
``We have strong concerns about the sharp rise in oil prices,'' the Group of Eight said in a statement today in Toyako, Japan, where the leaders are holding their annual summit. ``The world economy is now facing uncertainty and downside risks persist.''
Crude-oil futures for August delivery fell $5.12, or 3.6 percent, to $136.25 a barrel on the New York Mercantile Exchange. Before today, the price almost doubled in the past 12 months, reaching a record $145.85 on July 3.
Corn futures for December delivery fell 27 cents, or 3.6 percent, to $7.20 a bushel overnight on the Chicago Board of Trade. The price still has doubled in the past 12 months, reaching a record $7.9925 on June 27.
``All the bad economic news is making people take a second look at commodities,'' said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts. ``Commodities were purchased as a hedge against inflation. A global recession is looking more likely, and it's the greatest weapon in the fight against inflation
Tuesday, July 8, 2008
Left withdraws support to UPA govt
The Left parties have decided to withdraw support to the UPA government, after a crucial meeting of party leaders in New Delhi.
Top Left party leaders met here to formulate an "appropriate" response to Prime Minister Manmohan Singh's announcement that the government would approach the IAEA for the nuclear deal.
The Left coordination committee meeting, which began at CPM headquarters here, was attended by CPM general secretary Prakash Karat, his CPI counterpart A B Bardhan and other senior leaders like D Raja (CPI), RSP leaders T J Chandrachoodan and Abani Roy and Forward Bloc's Debabrata Biswas and G Devarajan.
The meeting, which was earlier fixed at 4 pm, was rescheduled to 11:30 am after Singh's announcement on Monday that the government would "soon" approach the IAEA for a safeguards agreement for the nuclear deal with the US.
Ahead of the meeting, Karat told reporters on Tuesday morning that the meeting would be a "crucial" one as there was "nothing more" on Left's course of action with regard to the Prime Minister's announcement on the nuclear deal.
Karat said the Prime Minister had made the announcement on the deal in a foreign land which he could have told the Left parties here.
The Left parties had earlier stated that they would withdraw support to the Congress-led government the moment it decides to go to the IAEA. Karat has said the Left parties will meet and give an "appropriate" response to the PM's statement.
Left leaders were livid over the Prime Minister's announcement, which came barely an hour after the government sought another round of meeting of the UPA-Left committee on the nuclear deal on July 10, saying they were "insulted".
"Only thing I am saying now is that we will take a crucial decision. Singh has hoodwinked the Left parties, the UPA allies and the people. We ask him to behave in a manner befitting his post," Chandrachoodan said.
Noting that the Left had maintained civility by publicly saying that they will wait till Singh returns, the RSP leader said, "now the UPA leadership should not expect the Left to show the courtesy by waiting till then."
Top Left party leaders met here to formulate an "appropriate" response to Prime Minister Manmohan Singh's announcement that the government would approach the IAEA for the nuclear deal.
The Left coordination committee meeting, which began at CPM headquarters here, was attended by CPM general secretary Prakash Karat, his CPI counterpart A B Bardhan and other senior leaders like D Raja (CPI), RSP leaders T J Chandrachoodan and Abani Roy and Forward Bloc's Debabrata Biswas and G Devarajan.
The meeting, which was earlier fixed at 4 pm, was rescheduled to 11:30 am after Singh's announcement on Monday that the government would "soon" approach the IAEA for a safeguards agreement for the nuclear deal with the US.
Ahead of the meeting, Karat told reporters on Tuesday morning that the meeting would be a "crucial" one as there was "nothing more" on Left's course of action with regard to the Prime Minister's announcement on the nuclear deal.
Karat said the Prime Minister had made the announcement on the deal in a foreign land which he could have told the Left parties here.
The Left parties had earlier stated that they would withdraw support to the Congress-led government the moment it decides to go to the IAEA. Karat has said the Left parties will meet and give an "appropriate" response to the PM's statement.
Left leaders were livid over the Prime Minister's announcement, which came barely an hour after the government sought another round of meeting of the UPA-Left committee on the nuclear deal on July 10, saying they were "insulted".
"Only thing I am saying now is that we will take a crucial decision. Singh has hoodwinked the Left parties, the UPA allies and the people. We ask him to behave in a manner befitting his post," Chandrachoodan said.
Noting that the Left had maintained civility by publicly saying that they will wait till Singh returns, the RSP leader said, "now the UPA leadership should not expect the Left to show the courtesy by waiting till then."
Obama’s Campaign Shifts to a Bigger Stage for His Big Night
Borrowing from the political repertory of John F. Kennedy, Senator Barack Obama will accept his party’s nomination outside of the main Democratic convention hall this August, in the Denver Broncos’ football stadium that seats more than 75,000 people.
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The Caucus: Obama Picks Stadium for Acceptance Speech (July 7, 2008)
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Senator Barack Obama between events on Monday in Charlotte, N.C. No stranger to large crowds, he is planning for another one on Aug. 28.
The move, rumored for days and announced by the Obama campaign on Monday, set off a round of complaints from news executives, who for more than a year have been drawing up elaborate plans for a convention that was to culminate in the main hall, at the Pepsi Center in Denver.
But Mr. Obama’s aides were clearly willing to pay the price of some carping among the news media in the dog days of July in return for being able to take advantage of the candidate’s ability to draw stadium-level crowds when millions will be tuning in toward the end of August.
The move will also be rich in historical resonance.
Mr. Obama, who will be the first African-American presidential nominee for a major party, will give his acceptance speech at Invesco Field on Aug. 28, the 45th anniversary of the Rev. Dr. Martin Luther King’s “I Have a Dream” address. And he will be the first nominee to give his speech outside the convention hall since Kennedy did so in 1960, when he drew a crowd some estimated at 50,000 at the Memorial Coliseum in Los Angeles.
Though clearly enticed by what they believe will be a powerful television image of Mr. Obama speaking before tens of thousands of people, his aides said Monday that they hoped to open the convention to regular voters who typically did not attend party conventions. The Pepsi Center, with a capacity of 21,000 people, would accommodate only the usual convention crowd, party officials said.
“This convention is meant to be opened up to the American people,” Howard Dean, the Democratic Party chairman, said in a conference call with reporters.
Mr. Dean acknowledged that the convention host committee would need to raise more money to pay for the secondary venue, which will also require additional security arrangements.
The news media will also bear added costs. Executives said they would have to reconfigure plans long in the making, a particular headache for the television networks, which build elaborate sets for the conventions to showcase their stars. The acceptance speeches are traditionally when television news divisions draw their largest ratings of the conventions.
“It’s a bit of a monkey wrench in the plans, but nothing we can’t handle,” said Marty Ryan, the executive producer in charge of political programming at Fox News Channel.
David Bohrman, the Washington bureau chief of CNN, said his network was moving ahead with plans to build a platform on the floor of the Pepsi Center, but executives at several other networks said planning would require further review.
The announcement added an element to what has been a regular dance between campaign planners and the networks over how much time they will devote to the conventions. But this year has seen an unusual amount of interest in campaign coverage, along with high ratings, diminishing some of the networks’ traditional leverage.
“With all due respect, the networks are going to cover whatever sausage the campaign puts out,” said Scott Reed, a Republican strategist who ran Bob Dole’s 1996 campaign. “They don’t have a choice.”
Anita Dunn, a communications strategist for Mr. Obama, said the campaign was sympathetic to the effect the new plan would have on the news media.
Ms. Dunn said the late change was unavoidable given how long the primary season lasted. “We would have liked to have been planning this in February and March,” she said. “It didn’t work out that way.”
Ms. Dunn said the stadium was about a 10-minute shuttle ride from the Pepsi Center, where most of the news media will be stationed.
The stadium is to be filled with thousands of local supporters. And in a fund-raising appeal e-mailed on Monday, the Obama campaign manager, David Plouffe, said the campaign would choose 10 people who donate at least $5 before July 31 to attend the convention with guests.
The outdoor venue brings some risks. But Ms. Dunn said the campaign had studied historical weather patterns and was confident that it would not rain. But, she said, there are contingency plans if it does.
For its part, the Republican National Convention Committee released a statement dismissing the venue change as favoring style over substance. “Senator Obama and his fellow Democrats are more focused on stagecraft and theatrics than providing real solutions to the challenges facing our nation,” the statement said.
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The Caucus: Obama Picks Stadium for Acceptance Speech (July 7, 2008)
Delays and Rising Costs for Convention Raise Worries for Democrats (July 6, 2008)
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Enlarge This Image
Jae C. Hong/Associated Press
Senator Barack Obama between events on Monday in Charlotte, N.C. No stranger to large crowds, he is planning for another one on Aug. 28.
The move, rumored for days and announced by the Obama campaign on Monday, set off a round of complaints from news executives, who for more than a year have been drawing up elaborate plans for a convention that was to culminate in the main hall, at the Pepsi Center in Denver.
But Mr. Obama’s aides were clearly willing to pay the price of some carping among the news media in the dog days of July in return for being able to take advantage of the candidate’s ability to draw stadium-level crowds when millions will be tuning in toward the end of August.
The move will also be rich in historical resonance.
Mr. Obama, who will be the first African-American presidential nominee for a major party, will give his acceptance speech at Invesco Field on Aug. 28, the 45th anniversary of the Rev. Dr. Martin Luther King’s “I Have a Dream” address. And he will be the first nominee to give his speech outside the convention hall since Kennedy did so in 1960, when he drew a crowd some estimated at 50,000 at the Memorial Coliseum in Los Angeles.
Though clearly enticed by what they believe will be a powerful television image of Mr. Obama speaking before tens of thousands of people, his aides said Monday that they hoped to open the convention to regular voters who typically did not attend party conventions. The Pepsi Center, with a capacity of 21,000 people, would accommodate only the usual convention crowd, party officials said.
“This convention is meant to be opened up to the American people,” Howard Dean, the Democratic Party chairman, said in a conference call with reporters.
Mr. Dean acknowledged that the convention host committee would need to raise more money to pay for the secondary venue, which will also require additional security arrangements.
The news media will also bear added costs. Executives said they would have to reconfigure plans long in the making, a particular headache for the television networks, which build elaborate sets for the conventions to showcase their stars. The acceptance speeches are traditionally when television news divisions draw their largest ratings of the conventions.
“It’s a bit of a monkey wrench in the plans, but nothing we can’t handle,” said Marty Ryan, the executive producer in charge of political programming at Fox News Channel.
David Bohrman, the Washington bureau chief of CNN, said his network was moving ahead with plans to build a platform on the floor of the Pepsi Center, but executives at several other networks said planning would require further review.
The announcement added an element to what has been a regular dance between campaign planners and the networks over how much time they will devote to the conventions. But this year has seen an unusual amount of interest in campaign coverage, along with high ratings, diminishing some of the networks’ traditional leverage.
“With all due respect, the networks are going to cover whatever sausage the campaign puts out,” said Scott Reed, a Republican strategist who ran Bob Dole’s 1996 campaign. “They don’t have a choice.”
Anita Dunn, a communications strategist for Mr. Obama, said the campaign was sympathetic to the effect the new plan would have on the news media.
Ms. Dunn said the late change was unavoidable given how long the primary season lasted. “We would have liked to have been planning this in February and March,” she said. “It didn’t work out that way.”
Ms. Dunn said the stadium was about a 10-minute shuttle ride from the Pepsi Center, where most of the news media will be stationed.
The stadium is to be filled with thousands of local supporters. And in a fund-raising appeal e-mailed on Monday, the Obama campaign manager, David Plouffe, said the campaign would choose 10 people who donate at least $5 before July 31 to attend the convention with guests.
The outdoor venue brings some risks. But Ms. Dunn said the campaign had studied historical weather patterns and was confident that it would not rain. But, she said, there are contingency plans if it does.
For its part, the Republican National Convention Committee released a statement dismissing the venue change as favoring style over substance. “Senator Obama and his fellow Democrats are more focused on stagecraft and theatrics than providing real solutions to the challenges facing our nation,” the statement said.
IAEA meet on July 28 to approve safeguards
The IAEA has scheduled a meeting of its board of governors on July 28 to approve the India-specific safeguards agreement. The Manmohan Singh government is expected to notify the agreement with the IAEA secretariat in the second week of July.
Reports from Vienna quoting diplomatic sources said a formal announcement on the board meeting will be made after the subject is notified with the IAEA secretariat. The Nuclear Suppliers group (NSG) is expected to meet within days after the IAEA board’s approval of the safeguards agreement.
On his part, Prime Minister Manmohan Singh expressed the hope that the IAEA’s board of governors would take quick decisions. “We have an agreed text which has been agreed to by the staff of the IAEA. I expect then that the process should not take too long. But the board of governors will have to take the call and I cannot anticipate how long,” he said.
Mr Singh said the deal has the support of all major powers — US, Russia, Britain, France. “I don’t expect any problem. But I can’t anticipate how much more time this will take,” Mr Singh said.
Mr Singh will be meeting president George Bush in Japan to discuss the progress on the deal. The US president has been pressing Mr Singh hard to work out the deal.
The non-proliferation Ayatollahs at the Capitol Hill have been warning against rushing the nuclear deal. According to them, the president “gave away far too much and got far too little for the deal.”
An editorial in the New York Times had said it would be “a mistake for the US to try and ram through the remaining approvals by the International Atomic Energy Agency board, the Nuclear Suppliers Group and Congress just to meet the artificial deadline of Bush’s presidency.” The non-proliferation lobby wants detailed discussions both by the IAEA and NSG.
Those engaged in the negotiations with the Left here, however, were hopeful of the IAEA wrapping up the safeguards agreement at the July 28 meeting itself. The efforts are aimed at making the deal for the US Congress’ consideration in the third week of September.
Reports from Vienna quoting diplomatic sources said a formal announcement on the board meeting will be made after the subject is notified with the IAEA secretariat. The Nuclear Suppliers group (NSG) is expected to meet within days after the IAEA board’s approval of the safeguards agreement.
On his part, Prime Minister Manmohan Singh expressed the hope that the IAEA’s board of governors would take quick decisions. “We have an agreed text which has been agreed to by the staff of the IAEA. I expect then that the process should not take too long. But the board of governors will have to take the call and I cannot anticipate how long,” he said.
Mr Singh said the deal has the support of all major powers — US, Russia, Britain, France. “I don’t expect any problem. But I can’t anticipate how much more time this will take,” Mr Singh said.
Mr Singh will be meeting president George Bush in Japan to discuss the progress on the deal. The US president has been pressing Mr Singh hard to work out the deal.
The non-proliferation Ayatollahs at the Capitol Hill have been warning against rushing the nuclear deal. According to them, the president “gave away far too much and got far too little for the deal.”
An editorial in the New York Times had said it would be “a mistake for the US to try and ram through the remaining approvals by the International Atomic Energy Agency board, the Nuclear Suppliers Group and Congress just to meet the artificial deadline of Bush’s presidency.” The non-proliferation lobby wants detailed discussions both by the IAEA and NSG.
Those engaged in the negotiations with the Left here, however, were hopeful of the IAEA wrapping up the safeguards agreement at the July 28 meeting itself. The efforts are aimed at making the deal for the US Congress’ consideration in the third week of September.
'RIL wants to derail talks'
RCOM said on Monday that RIL's reaction showed that its “sole objective is to derail talks with MTN and frustrate a possible combination”. RIL, on its part, did not offer any comments either on the developments or on what RCOM had to say about it.
Meanwhile, a British financial daily carried a report quoting “a person familiar with the talks” between MTN and RCOM and suggested that the South African firm is considering walking away from the deal, fearing legal action if it goes through.
RCOM sources and media reports maintain that talks with MTN are on and it could be close to a deal. RCOM currently serves 48 million subscribers in India, while MTN serves over 68 million subscribers across 21 countries, and the union — if it does happen — would lead to the creation of one of the world's largest telecom companies serving nearly 116 million customers. RCOM had informed stock exchanges on May 26 that it had entered into exclusive negotiations with the MTN Group for a period of 45 days, for a potential combination of their businesses.
Thereafter, on June 13, news trickled out that RIL, which had reluctantly given up the telecommunications business when the brothers parted ways, had written to the MTN board informing them about a clause in the family settlement reserving the first right of refusal for Mukesh Ambani or his companies in the event RCOM decided to sell a company. According to them, this gives RIL up to four months to decide in favour of or against any deal, which poses a huge roadblock.
Shortly after RIL's letter, a Dow Jones report quoted an MTN official as saying that while the two firms were still talking, the feud between the two brothers may derail the deal. Last week, RCOM's stock fell. MTN's attempts at hooking up with a telecom player in India have been hit with controversies from the very start. MTN first engaged in a month-long discussion with the Bharti group.
Bharti was reportedly willing to pay $50-60 billion for the company, but talks broke off when MTN insisted that Bharti become its subsidiary. Temasek is learned to have been uncomfortable with the management structure — effect of structure on minority shareholder rights.
Meanwhile, a British financial daily carried a report quoting “a person familiar with the talks” between MTN and RCOM and suggested that the South African firm is considering walking away from the deal, fearing legal action if it goes through.
RCOM sources and media reports maintain that talks with MTN are on and it could be close to a deal. RCOM currently serves 48 million subscribers in India, while MTN serves over 68 million subscribers across 21 countries, and the union — if it does happen — would lead to the creation of one of the world's largest telecom companies serving nearly 116 million customers. RCOM had informed stock exchanges on May 26 that it had entered into exclusive negotiations with the MTN Group for a period of 45 days, for a potential combination of their businesses.
Thereafter, on June 13, news trickled out that RIL, which had reluctantly given up the telecommunications business when the brothers parted ways, had written to the MTN board informing them about a clause in the family settlement reserving the first right of refusal for Mukesh Ambani or his companies in the event RCOM decided to sell a company. According to them, this gives RIL up to four months to decide in favour of or against any deal, which poses a huge roadblock.
Shortly after RIL's letter, a Dow Jones report quoted an MTN official as saying that while the two firms were still talking, the feud between the two brothers may derail the deal. Last week, RCOM's stock fell. MTN's attempts at hooking up with a telecom player in India have been hit with controversies from the very start. MTN first engaged in a month-long discussion with the Bharti group.
Bharti was reportedly willing to pay $50-60 billion for the company, but talks broke off when MTN insisted that Bharti become its subsidiary. Temasek is learned to have been uncomfortable with the management structure — effect of structure on minority shareholder rights.
Monday, July 7, 2008
Brigadier targeted for role in training Afghan army
If the resurgent Taliban-ISI nexus in Afghanistan wanted to target some key Indian officials in Kabul, defence attache, Brigadier Ravi Datt Mehta, was certainly one of them.
A "bright and dynamic" officer who had developed "deep linkages" with the leadership of the fledgling Afghan army in the six months he had been posted in Kabul, Brig Mehta even had a "good relationship" with Afghan defence minister Abdul Rahim Wardak.
Brig Mehta, in fact, had accompanied Wardak when he came to New Delhi in April to hold discussions with his Indian counterpart A K Antony and visit Jammu and Kashmir for a first-hand look at the way Indian army conducted counter-insurgency operations.
"Brig Mehta was on the ball in Afghanistan. He was a confident, well-informed officer, who kept his ear to the ground and closely tracked the re-emerging strong links between Taliban and Pakistan's ISI, among other things," said a top defence official.
"The defence attache's post in Kabul is, after all, one of the top three or four Indian military postings abroad. Brig Mehta was selected for the posting after a deep selection process," he added.
Brig Mehta, who was commissioned into the army in June 1976, had varied operational experience, including stints in counter-insurgency operations in both J&K and North-East.
Apart from his Kabul posting, another indicator that he was headed for at least a "two-star rank" (Major-General) was that he had done the prestigious National Defence College course around three years ago.
The tragic incident on Monday came at a time when Brig Mehta's wife Sunita and two children, Flight Lieutenant Udit Mehta, a 24-year-old MiG fighter pilot posted at Jodhpur, and Bhavya Mehta, a 19-year-old MBBS student, were all at Kabul. "Sunita was staying in Kabul, a non-family station, for the last three months due to a special Afghan government request. She was teaching Afghan girls for higher studies at an institute run by the Afghan education ministry. The children were there to visit their parents on a short holiday," said an official.
Brig Mehta, on his part, was playing a key role in India's military training and logistical help to Afghanistan. Though India does not actually have soldiers deployed in Afghanistan, it has built bridges with the Afghan armed forces to counter any prospect of Pakistan regaining influence in the war-ravaged country through a resurgent Taliban-al Qaida-ISI nexus.
India has been regularly training Afghan officers and other ranks at its military training institutions, ranging from the National Defence Academy at Khadakwasla to the School of Artillery at Devlali, ever since the Karzai government came to office.
Apart from developmental projects like the construction of the 218-km Zaranj-Delaram road, India has also posted some army officers in Afghanistan to teach basic military fieldcraft and English skills to the Afghan army, apart from sending several military doctors to help at hospitals in Kandahar and elsewhere.
Afghanistan wants to build its own national armed forces, which has only around 50,000 troops at present, to
gradually replace US-led Nato's International Security Assistance Force operating in the country.
It has sought India's help in "capacity-building" of its armed forces, which even includes training of its pilots
and technicians in operating Russian-origin Mi-35 helicopter gunships, as well as sourcing supplies for its Soviet-era tanks and aircraft.
"Kabul is also interested in sending more officers for specialised training at the Counter-Insurgency and Jungle Warfare School in Mizoram and High-Altitude Warfare School in J&K as well as the different commando and counter-terrorism courses run at Belgaum and Bareilly," said a senior official.
"The Afghan government says this is necessary since the Taliban is increasingly resorting to IED blasts and suicide bombings instead of direct face-to-face confrontations," he added.
A "bright and dynamic" officer who had developed "deep linkages" with the leadership of the fledgling Afghan army in the six months he had been posted in Kabul, Brig Mehta even had a "good relationship" with Afghan defence minister Abdul Rahim Wardak.
Brig Mehta, in fact, had accompanied Wardak when he came to New Delhi in April to hold discussions with his Indian counterpart A K Antony and visit Jammu and Kashmir for a first-hand look at the way Indian army conducted counter-insurgency operations.
"Brig Mehta was on the ball in Afghanistan. He was a confident, well-informed officer, who kept his ear to the ground and closely tracked the re-emerging strong links between Taliban and Pakistan's ISI, among other things," said a top defence official.
"The defence attache's post in Kabul is, after all, one of the top three or four Indian military postings abroad. Brig Mehta was selected for the posting after a deep selection process," he added.
Brig Mehta, who was commissioned into the army in June 1976, had varied operational experience, including stints in counter-insurgency operations in both J&K and North-East.
Apart from his Kabul posting, another indicator that he was headed for at least a "two-star rank" (Major-General) was that he had done the prestigious National Defence College course around three years ago.
The tragic incident on Monday came at a time when Brig Mehta's wife Sunita and two children, Flight Lieutenant Udit Mehta, a 24-year-old MiG fighter pilot posted at Jodhpur, and Bhavya Mehta, a 19-year-old MBBS student, were all at Kabul. "Sunita was staying in Kabul, a non-family station, for the last three months due to a special Afghan government request. She was teaching Afghan girls for higher studies at an institute run by the Afghan education ministry. The children were there to visit their parents on a short holiday," said an official.
Brig Mehta, on his part, was playing a key role in India's military training and logistical help to Afghanistan. Though India does not actually have soldiers deployed in Afghanistan, it has built bridges with the Afghan armed forces to counter any prospect of Pakistan regaining influence in the war-ravaged country through a resurgent Taliban-al Qaida-ISI nexus.
India has been regularly training Afghan officers and other ranks at its military training institutions, ranging from the National Defence Academy at Khadakwasla to the School of Artillery at Devlali, ever since the Karzai government came to office.
Apart from developmental projects like the construction of the 218-km Zaranj-Delaram road, India has also posted some army officers in Afghanistan to teach basic military fieldcraft and English skills to the Afghan army, apart from sending several military doctors to help at hospitals in Kandahar and elsewhere.
Afghanistan wants to build its own national armed forces, which has only around 50,000 troops at present, to
gradually replace US-led Nato's International Security Assistance Force operating in the country.
It has sought India's help in "capacity-building" of its armed forces, which even includes training of its pilots
and technicians in operating Russian-origin Mi-35 helicopter gunships, as well as sourcing supplies for its Soviet-era tanks and aircraft.
"Kabul is also interested in sending more officers for specialised training at the Counter-Insurgency and Jungle Warfare School in Mizoram and High-Altitude Warfare School in J&K as well as the different commando and counter-terrorism courses run at Belgaum and Bareilly," said a senior official.
"The Afghan government says this is necessary since the Taliban is increasingly resorting to IED blasts and suicide bombings instead of direct face-to-face confrontations," he added.
UPDATE 1-Merrill may write down about $6 bln in Q2: Citigroup
Merrill Lynch & Co (MER.N: Quote, Profile, Research) may write down about $6 billion in the second quarter primarily driven by losses on high-grade collateralized debt obligations (CDOs) positions and monoline exposure, said analyst Prashant Bhatia at Citigroup.
Bhatia, who now has the highest second-quarter writedown estimate for Merrill among brokers, also forecast a second quarter loss for the quarter and widened his 2008 loss per share view.
He said said the writedown estimate for the second quarter comprised of $4.8 billion on super senior CDO long positions, offset by roughly $2 billion of gains on short positions with non-monoline counterparties and $2.2 billion on credit valuation adjustments related to financial guarantors.
"We estimate $500 million of marks on subprime whole loans, $300 million on private equity positions, and $200 million on debt revaluation," Bhatia said in his note dated July 6, which highlighted the second quarter preview for Merrill.
Bhatia also forecast a second quarter loss of $3.95 at Merrill, and widened his 2008 loss per share estimate to $6 from $1. He cut his price target on the stock to $65 from $75, while rating it a "buy."
Shares of Merrill rose 1.5 percent to $31.59 in morning trade on the New York Stock Exchange.
Bhatia said Merrill has raised $600 million more capital than it has lost since 2007 and that a sale of the company's stake in BlackRock Inc (BLK.N: Quote, Profile, Research) could generate more than $2.5 billion in capital.
Bhatia believes Merrill would most likely sell a portion of its stake in order to avoid raising capital and further diluting its investors.
Merrill, the world's largest brokerage, has a nearly 50 percent stake in money manager BlackRock. Merrill Lynch's stake in BlackRock currently has a market value of roughly $11 billion, Bhatia noted. (Reporting by Ramya Dilip in Bangalore; Editing by Bernard Orr)
Bhatia, who now has the highest second-quarter writedown estimate for Merrill among brokers, also forecast a second quarter loss for the quarter and widened his 2008 loss per share view.
He said said the writedown estimate for the second quarter comprised of $4.8 billion on super senior CDO long positions, offset by roughly $2 billion of gains on short positions with non-monoline counterparties and $2.2 billion on credit valuation adjustments related to financial guarantors.
"We estimate $500 million of marks on subprime whole loans, $300 million on private equity positions, and $200 million on debt revaluation," Bhatia said in his note dated July 6, which highlighted the second quarter preview for Merrill.
Bhatia also forecast a second quarter loss of $3.95 at Merrill, and widened his 2008 loss per share estimate to $6 from $1. He cut his price target on the stock to $65 from $75, while rating it a "buy."
Shares of Merrill rose 1.5 percent to $31.59 in morning trade on the New York Stock Exchange.
Bhatia said Merrill has raised $600 million more capital than it has lost since 2007 and that a sale of the company's stake in BlackRock Inc (BLK.N: Quote, Profile, Research) could generate more than $2.5 billion in capital.
Bhatia believes Merrill would most likely sell a portion of its stake in order to avoid raising capital and further diluting its investors.
Merrill, the world's largest brokerage, has a nearly 50 percent stake in money manager BlackRock. Merrill Lynch's stake in BlackRock currently has a market value of roughly $11 billion, Bhatia noted. (Reporting by Ramya Dilip in Bangalore; Editing by Bernard Orr)
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