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Gulf markets mixed as Syria attack fear eases

Gulf markets mixed as Syria attack fear eases (UAE STOCK MARKETS) / 30 August 2013 Middle East stock markets were mixed on Thursday as heavy selling related to the Syrian war faded, but continued uncertainty over how and when the United States might strike Syria blocked solid rebounds. President Barack Obama told Americans that a military strike against Syria would be in their interest, but there were signs that any action would be delayed at least several days while the case was laid out to US and British lawmakers. This encouraged some Gulf retail investors to buy stocks on Thursday as margin calls eased, but the markets’ rebounds during the day lacked momentum. “We had a lot of speculation and hot retail money in the market and they’ve been caught be the news and reacted very promptly,” said Sebastien Henin, portfolio manager at The National Investor in Abu Dhabi. “If you analyse US involvement, it will most probably be limited in terms of timing and geography and shouldn’t impact the Gulf region much.” This week’s losses have taken some of the froth off Gulf markets; Amer Khan, fund manager at Shuaa Asset Management, estimated Dubai was now trading at 12.9 times 2013 earnings, not prohibitively high for a growth market. But Asim Bukhtiar, head of research at Saudi Arabia’s Riyad Capital, said: “We see a bit of risk until the geopolitical situation gets resolved in coming days — we expect volatility to continue in the market and it would be safer to stay on the sidelines.” Dubai’s index gained 0.3 per cent, trimming this week’s losses to 6.6 per cent and leaving the market up about 55 per cent year-to-date. Abu Dhabi  eased 0.07 per cent, down 5.4 per cent on the week.  In Qatar, the benchmark rose 0.8 per cent, snapping four sessions of declines from a five-year high. It lost 4.7 per cent this week. Saudi Arabia’s measure  was little changed; it rose more than 1.0 per cent in early trade but then gave up most of those gains. Despite this week’s losses of 5.2 per cent, many Saudi valuations remain rich, especially in sectors such as banks and the retail sector, Bukhtiar said.  In Kuwait, retail traders sold small-cap shares, which accounted for most trading volume. The index lost 1.0 per cent and was down 5.8 per cent for the week.   “People are off-loading shares – the big players are pressuring smaller stocks to pick them up later from lower levels,” said Fouad Darwish, head of brokerage services at Global Investment House.  But he added, “Fundamentally, it’s the best condition that the market has been in for years.” Kuwait is up 28.6 per cent year-to-date, backed by improving corporate earnings and increasing anticipation of progress on long-delayed infrastructure building plans. Cairo’s main benchmark climbed 0.8 per cent to 5,268 points, snapping a three-session losing streak. The market gained modest support from the cabinet’s approval of 22.3 billion Egyptian pounds ($3.2 billion) of spending on investment projects over the coming 10 months. Capital Economics said the spending plan might help the economy in the near term— Reuters Continue reading

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Britain says ‘no’ but US ready to act alone on Syria

Britain says ‘no’ but US ready to act alone on Syria (AFP) / 30 August 2013 British lawmakers rejected their government’s call for punitive military strikes against the chemical-armed Syrian regime on Thursday, leaving the United States to act alone. Before and after the shock House of Commons vote to defy Prime Minister David Cameron’s bid to win support for military intervention, the White House said America was ready to take unilateral action. Britain’s Prime Minister David Cameron is seen addressing the House of Commons in this still image taken from video in London. – Reuters   “We have seen the result of the Parliament vote in the UK tonight,” said Caitlin Hayden , a National Security Council spokeswoman. “As we’ve said, President Obama’s decision-making will be guided by what is in the best interests of the United States. “He believes that there are core interests at stake for the United States and that countries who violate international norms regarding chemical weapons need to be held accountable.” The decision also came after the failure of an improbable eleventh-hour effort by British diplomats to win UN backing for action against Bashar Al Assad’s regime at a meeting of the permanent members of the Security Council. “It is clear to me that the British parliament, reflecting the views of the British people, does not want to see British military action. I get that and the government will act accordingly,” Cameron said. Britain’s opposition Labour leader Ed Miliband is seen addressing the House of Commons in this still image taken from video in London. – Reuters That, combined with deadlock at the United Nations, appeared to effectively sound the death knell for the idea of a broad-based Western military coalition, although other American allies might still participate. But even before the surprise British vote, the White House had signalled that it was ready to act regardless of UN or allied support. “We certainly are interested in engaging with the global international community on this issue,” White House spokesman Josh Earnest said. “But at the same time, the president’s chief accountability is to the American people that he was elected to protect. “The president believes strongly in making the kinds of decisions and taking the kinds of steps that are necessary to protect our core national security interests that we’ve acknowledged are at stake in this situation.” Earlier, envoys from the permanent five members of the UN Security Council — Britain, China, France, Russia and the United States — had met at UN headquarters in New York. The 45-minute meeting was the second since Britain proposed a draft resolution to permit “all necessary measures” to protect Syrian civilians after a suspected chemical weapons attack last week. But none of the envoys commented as they left. Earlier in the week reports had suggested that a Western strike was imminent, but questions have been raised about the quality of the intelligence linking Assad to the attack. The White House reached out to US lawmakers, with the president’s top aides briefing congressional leaders in a 90 minute conference call. Some members of Congress voiced support for limited, surgical strikes, while urging the administration to continue consulting closely with the Congress. Nancy Pelosi , the minority leader in the House, said she agreed with House Speaker John Boehner that “there needs to be more consultation with all members of Congress and additional transparency into the decision making process and timing, and that the case needs to be made to the American people. “It is clear that the American people are weary of war. However, Assad gassing his own people is an issue of our national security, regional stability and global security. We must be clear that the United States rejects the use of chemical weapons by Assad or any other regime,” she said. US warships armed with scores of cruise missiles are converging on the eastern Mediterranean, and US military officials have said they are ready to launch a powerful barrage against regime targets in Syria. Assad’s ally Russia has blocked all attempts to toughen international sanctions against Damascus or authorise outside force to punish or unseat the regime. Syria, meanwhile, is in the 29 th month of a vicious civil war in which more than 100,000 people are credibly reported to have died. As the stand-off continues, a team of UN inspectors are investigating reports that last week’s gas attack outside Damascus killed more than 350 people, including women and children. A UN spokesman said Thursday that the team had collected “considerable” evidence and will brief UN secretary general Ban Ki-moon soon after they leave Syria on Saturday. “Starting tomorrow he will try to reach out to member states and take discussions forward on the question of what is happening in Syria,” the spokesman said. Ban has appealed for the inspectors to be allowed to complete their work before the major powers decide any follow-up action. Assad remained defiant in the face of the Western threats. “Syria will defend itself in the face of any aggression,” state television cited him as telling a visiting delegation of Yemeni politicians. He vowed that any attack would result in “victory” for the Syrian people. His regime has denied using chemical weapons and blamed “terrorist” rebels. The mood among Damascus residents was fearful, while security forces prepared for possible air attacks by pulling back soldiers from potential targets and introducing tougher controls at roadblocks and hospitals. Continue reading

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Obama embodies King’s dream

Obama embodies King’s dream (AP) / 29 August 2013 President Barack Obama led civil rights pioneers on Wednesday in a ceremony for the 50th anniversary of the March on Washington, where Dr Martin Luther King’s “I Have a Dream” speech roused the 250,000 people who rallied there decades ago for racial equality. Large crowds gathered at the Lincoln Memorial, where the first black US president spoke just after 1900 GMT — the same time that King delivered his spellbinding speech. ( L-R) Rep. John Lewis, former president Jimmy Carter, former president Bill Clinton, US President Obama and Oprah Winfrey applaud during the commemoration of the 50th anniversary of the March on Washington and Martin Luther King Jr.’s “I have a dream”  speech at the Lincoln Memorial in Washington. – Reuters The first march was early in the turbulent 1960s, when the South still had separate restrooms, schools and careers for blacks and whites, and racism lingered across the country. In the two years following the march, President Lyndon Johnson signed the landmark Civil Rights Act and Voting Rights Act to outlaw discrimination, and King received the Nobel Peace Prize. “There were couples in love who couldn’t marry. Soldiers who fought for freedom abroad but couldn’t find any at home,” Obama said, speaking of that era. “America changed for you and for me,” he added later. Obama has said King is one of two people he admires “more than anybody in American history.” The other is Abraham Lincoln. Thousands of people were in attendance in wet weather. Two former presidents, Bill Clinton and Jimmy Carter, spoke movingly of King’s legacy — and of problems still to overcome. “This march, and that speech, changed America,” Clinton declared. Carter said King’s efforts had helped not just black Americans, but “In truth, he helped to free all people.” Oprah Winfrey, Forest Whitaker and Jamie Foxx were among the celebrities. Winfrey said King forced the nation “to wake up, look at itself and eventually change.” International commemorations were being held at London’s Trafalgar Square, as well as in the nations of Japan, Switzerland, Nepal and Liberia. London Mayor Boris Johnson has said King’s speech resonates around the world and continues to inspire people as one of the great pieces of oratory. On August 28, 1963, as King was ending his speech, he quoted from the patriotic song, “My Country ‘tis of Thee” and urged his audience to “let freedom ring.” “When we allow freedom to ring — when we let it ring from every city and every hamlet, from every state and every city, we will be able to speed up that day when all of God’s children, black men and white men, Jews and Gentiles, Protestants and Catholics, will be able to join hands and sing in the words of the old Negro spiritual, ‘Free at last, free at last, great God almighty, we are free at last,” King said. The civil rights leader was assassinated five years later. Not everyone at the latest march was celebrating progress. “I thought we would be a lot further along than we are 50 years after hearing King’s speech,” said John Pruitt, 83, a voter rights advocate who attended the first march as well. Organisers of the rally broadened the focus well beyond racial issues, bringing speakers forward to address the environment, gay rights, the challenges facing the disabled and more. Whitaker told the crowd it was their “moment to join those silent heroes of the past.” US President Barack Obama (C) applauds the ringing of a Birmingham, Alabama church bell during ceremonies celebrating the 50th anniversary of the 1963 “March on Washington” at the Lincoln Memorial in Washington on August 28, 2013. – Reuters Obama considers the 1963 march part of his generation’s “formative memory.” A half-century after the march, he said, is a good time to reflect on how far the country has come and how far it still has to go, particularly after the recent acquittal of George Zimmerman in the fatal shooting of Trayvon Martin, an unarmed black teenager. Race isn’t a subject Obama likes to talk about in public, but the Martin case is one time he has done so. In an interview on Tuesday on Tom Joyner’s radio show, Obama said he imagines that King “would be amazed in many ways about the progress that we’ve made.” He listed advances such as equal rights before the law, an accessible judicial system, thousands of African-American elected officials, African-American CEOs and the doors that the civil rights movement opened for Latinos, women and gays. “I think he would say it was a glorious thing,” he said. But Obama noted that King’s speech was also about jobs and justice. King’s eldest son, Martin Luther King III, spoke on NBC of staggering unemployment among young black men. Continue reading

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