Oil rises to $60 per barrel, Libya fire supports

GNN london - Brent crude oil rose to around $60 per barrel on Monday, supported by concerns about disruption to output from Libya, but a global supply glut kept prices nearly 50 percent off their peak for the year.

Libya is producing a scant 128,000 barrels of oil a day from fields connected to the far eastern port of Hariga, an oil official said, as fighting kept its largest ports, Es Sider and Ras Lanuf, shut.

The OPEC member nation has struggled with port blockades and protests, slashing output from the 1.6 million barrels a day it produced prior to the 2011 ousting of leader Muammar Gaddafi.

A fire sparked by a rocket attack last week on storage tanks at the port of Es Sider marked an escalation in damage to the country's oil infrastructure.

"There's tension in Libya, but liquidity is very thin so not much is needed to move oil prices," said Hans van Cleef, senior energy economist at ABN Amro in Amsterdam.

Trade was sparse, with many investors away for the holidays.

Van Cleef added that the overall picture remained bearish, with traders looking for reasons to sell.

"It's very supply driven. On the demand side, the only impact is when you see a negative change in data."

Brent crude LCOc1 was up 51 cents at $59.96 by 9.40 a.m. after hitting $60.43. The benchmark shed 79 cents in the previous session.

Brent is down around 46 percent since a year high above $115 per barrel hit in June. It has been weighed down by a decision taken by OPEC in November not to cut supply to address the slump in prices and comments since from Saudi Arabia expressing comfort with lower prices.

Oil is on track for its biggest fall this year since 2008 and the second-biggest annual fall since futures started trading in the 1980s.

U.S. crude CLc1 rose 46 cents to $55.19 after closing $1.11 down in thin trade on Friday. It rose to a peak of $55.74 early on Monday.

Keeping gains in check, uncertainty on the outlook for the economy in Europe increased after the Greek parliament rejected the government's presidential candidate, setting the stage for an election that anti-bailout party Syriza could win.

(GNN, AIP, Reuters)(Additional reporting by Keith Wallis in Singapore; Editing by Michael Urquhart)

Bahrain sentences two men to death for killing policeman

GNN - A court in Bahrain sentenced two Shi'ite Muslim men to death and handed a third a life sentence on Monday after they were convicted of killing a policeman.
The ruling could further destabilize the Western-allied kingdom, where sporadic protests have erupted and occasional bomb attacks have taken place since the government quelled mass protests in 2011 led by Shi'ite Muslims demanding reforms.

The verdict was announced by the chief prosecutor of terrorist crimes who said that the three were among 12 people charged with a bomb attack in February that killed the policeman Abdel-Wahed Sayed Mohammed Faqeer in the village of al-Dair, north of the capital Manama.

The court sentenced the remaining nine suspects to six years in jail and fined them 1,000 Bahraini Dinars ($2,652) each, according the official Twitter account of Bahrain's Public Prosecution.

The court ruling, which is subject to appeal, is only the fourth time in over 34 years that death sentences have been passed on Bahraini citizens.

It came a day after authorities detained Sheikh Ali Salman, head of the main Shi'ite Muslim opposition group al-Wefaq, who led a rally last week to denounce Bahrain's November elections which were boycotted by the opposition.

In apparent reference to Sheikh Salman's detention, Shi'ite regional power Iran said on Monday that intensified security measures would further complicate matters in Bahrain, where the Shi'ite majority demands greater social, political and economic equality with the ruling Sunni minority.

"Instead of resorting to worn out tactics, the authorities in Bahrain should initiate trust and pave the way for serious dialogue between the people and the rulers," Iran's Foreign ministry spokeswoman Marzieh Afkham was quoted as saying by the state news agency IRNA.

Bahrain, where the U.S. Fifth Fleet is based, has accused Iran of fomenting unrest in the country, a charge Tehran denies.

(GNN, AIP, Reuters)(Reporting by Farishta Saeed and Mehrdad Balali; Writing by Amena Bakr; Editing by Sami Aboudi and Dominic Evans)

Taliban declare 'defeat' of U.S., allies in Afghanistan

GNN - Taliban insurgents in Afghanistan on Monday declared the "defeat" of the U.S. and its allies in the 13-year-old war, a day after the coalition officially marked the end of its combat mission.

The NATO-led International Security Assistance Force is shifting to a support mission for Afghan army and police more than a decade after an international alliance ousted the Taliban government for sheltering the planners of the Sept. 11, 2001, attacks on American cities.

"ISAF rolled up its flag in an atmosphere of failure and disappointment without having achieved anything substantial or tangible," Taliban spokesman Zabihullah Mujahid said in an statement emailed on Monday.

About 13,000 foreign troops, mostly Americans, will remain in the country under a new, two-year mission named "Resolute Support" that will continue the coalition's training of Afghan security forces to fight the insurgents, who have killed record numbers of Afghans this year.

While the U.S. and its allies say the Afghan army and police have been able to prevent the Taliban from taking significant territory, violence has shot up as the insurgents seek to gain ground.

For Afghanistan's new president, Ashraf Ghani, keeping government control of territory and preventing security from further deteriorating is a top priority.

Vowing to restore their former hard-line Islamist regime, Taliban spokesman Mujahid vowed that "the demoralized American-built forces will constantly be dealt defeats just like their masters".

The Taliban have launched increasingly deadly attacks this year. Nearly 3,200 Afghan civilians were killed in the conflict between the militant group and the army in 2014, and more than 4,600 Afghan army and police died in Taliban attacks.

Since 2001, nearly 3,500 foreign soldiers have been killed in the war, including around 2,200 Americans.

(This version of the story fixes formatting garble in the penultimate paragraph.)

(GNN, AIP, Reuters)(Reporting by Kay Johnson; Editing by Nick Macfie)

Hopes dim Egypt to release Australian Al Jazeera journalist soon

GNN - Hopes are fading for the release of Australian journalist Peter Greste, who has been in jail in Egypt for a year, after Cairo sent mixed signals about his case, Australian Foreign Minister Julie Bishop said on Monday.

The Al Jazeera reporter is serving seven years for crimes that include spreading lies to help a "terrorist organization" - an allusion to the Muslim Brotherhood group which is banned in Egypt.

Bishop last week raised the possibility Greste could be freed before an appeal hearing set for Jan. 1. [ID:nL3N0U803K]



"We had indications that Egyptian President Abdel Fattah al-Sisi would exercise his authority regarding a pardon or a clemency plea in advance of the appeal," Bishop told the Australian Broadcasting Corp.

"Yet, in the meantime, the Egyptian foreign minister has said to me that we have to await the appeal, so there are different messages coming from the Egyptian government," Bishop said.

Sisi suggested in November he was considering pardoning Greste and two other journalists working for Qatar-based Al Jazeera, who mark their 365th day in prison on Monday.

Greste's brothers, Mike and Andrew Greste, told reporters in Australia they did not believe their brother would be released before the appeal.

"The Egyptian president has said a few days after he was convicted that he wouldn't be pardoning Peter until the legal processes have been finalised," Mike Greste said.

Human rights groups and Western governments have condemned the trial of the journalists and the United Nations questioned Egypt's judicial independence. The affair has contributed to tension between Egypt and Qatar.

(This version of the story was corrected to show Greste was sentenced to seven years in prison, not seven to ten, in paragraph 2.)

(GNN, AIP, Reuters)(Reporting by James Regan; Editing by Robert Birsel)

Lebanese army disperses youths protesting near border town

GNN - Lebanese soldiers fired into the air to disperse a protest on Monday against security measures near a town close to the Syrian border, a security source and the state news agency reported.

State news agency NNA said three youths had been wounded and others arrested after a confrontation with the army in a valley outside Arsal, a town in Lebanon that has been drawn into neighboring Syria's civil war.

The army has increased security measures around the town since the summer, saying it wants to protect residents from militant groups originating in Syria who are trying to expand land they control into Lebanon.

Islamic State and Al Qaeda's Nusra Front -- Sunni Muslim groups fighting in Syria -- attacked Arsal in August and took a group of Lebanese soldiers captive.

Lebanese media reported that around 150 Lebanese and Syrian protesters gathered on Monday at a checkpoint outside Arsal after a similar protest on Sunday. An Arsal resident contacted by Reuters put the figure on Monday at less than 100 people.

The protesters fear the army will further restrict movement around the town, affecting the livelihoods of people who work in nearby farms and quarries, Lebanese media reported.

The army says it regularly arrests suspected militants in the area, including two Syrians detained close to Arsal on Saturday on suspicion of smuggling and aiding "terrorist groups".

The army chief said last month that militants who attacked parts of Lebanon this year could have drawn the small Mediterranean country, which was ripped apart by sectarian fighting between 1975 and 1990, into a new civil war.

(GNN, AIP, Reuters)(Reporting by Sylvia Westall; Editing by Catherine Evans)

Obama: Iran has 'chance to get right with the world' - NPR

GNN - Iran could become a "very successful regional power" if Tehran agrees to a long-term deal to curb its nuclear program, President Barack Obama said in an interview with NPR News.

"They've got a chance to get right with the world," Obama said in the interview, which was taped at the White House on Dec. 18 and is set to air this week.

More than a year ago, Iran agreed to an interim plan to halt higher-level uranium enrichment in exchange for a limited easing in financial sanctions pending negotiations on a long-term deal. Those talks have now been extended to next June.



Iran has said its nuclear program is for peaceful energy use, but the United States and five other powers want to make sure that Tehran cannot quickly develop nuclear weapons.

Obama told NPR that Iran should seize the chance of a deal that could lift crippling sanctions.

"Because if they do, there's incredible talent and resources and sophistication inside of Iran and it would be a very successful regional power that was also abiding by international norms and international rules - and that would be good for everybody," he said.

Obama insisted a nuclear deal was possible, although Vice President Joe Biden earlier this month said he thought there was a "less than even shot" of an agreement.

Obama said he recognized that Iran has "legitimate defense concerns" after it "suffered from a terrible war with Iraq" in the 1980s. But he criticized Tehran for its "adventurism, the support of organizations like Hizbollah, the threats they've directed at Israel."

Asked whether he would use his last two years in office to help rebuild war-torn countries, Obama said it was up to countries like Libya, Syria and Iraq to take the lead.

"We can help, but we can't do it for them," Obama said. "I think the American people recognize that. There are times here in Washington where pundits don't; they think you can just move chess pieces around the table.

"And whenever we have that kind of hubris, we tend to get burned," he said.

Obama rejected the idea of "devoting another trillion dollars" to sending U.S. combat troops to fight Islamic State militants in Iraq.

"We need to spend a trillion dollars rebuilding our schools, our roads, our basic science and research here in the United States," he said.

Obama said he hoped to be able to work with Congress on shared economic goals. But he said he expected Republicans would pass some bills he will oppose, particularly on health care and the environment.

"I haven't used the veto pen very often since I've been in office," Obama said. "Now I suspect there are going to be some times where I've got to pull that pen out."

(GNN, AIP, Reuters)(Reporting by Roberta Rampton; Editing by David Storey and Dan Grebler)

Special Report: Their nation in pieces, Iraqis ponder what comes next

GNN - The machine gun poking out from between a framed portrait of a Shi'ite imam and a stuffed toy Minnie Mouse was trained on anyone who approached the checkpoint.

Like dozens of other communities in Iraq, this small Sunni settlement in northern Salahuddin province’s Tuz Khurmatu district has been reduced to rubble. In October, Shi'ite militiamen and Kurdish peshmerga captured the village from the Sunni militant group Islamic State. The victors then laid it to waste, looting anything of value and setting fire to much of the rest. Residents have still not been allowed to return.

"Our people are burning them," said one of the Shi'ite militiamen when asked about the smoke drifting up from still smoldering houses. Asked why, he shrugged as if the answer was self evident.

The Shi'ite and Kurdish paramilitary groups now patrol the scorched landscape, eager to claim the most strategic areas or the few houses that are still intact. For now, the two forces are convenient but uncomfortable allies against the nihilist Islamic State.

This is how the new Iraq is being forged: block by block, house by house, village by village, mostly out of sight and control of officials in Baghdad.

What is emerging is a different country to the one that existed before June. That month, Iraq's military and national police, rotten with corruption and sectarian politics, collapsed after Islamic State forces attacked Mosul. The militant group's victory in the largest city in the north was one step on its remarkable dash across Iraq.

Islamic State's campaign slowed towards the end of the summer. But it has left the group in charge of roughly one-third of Iraq, including huge swathes of its western desert and parts of its war ravaged central belt. It also shattered the illusion of a unified and functioning state, triggering multiple sectarian fractures and pushing rival groups to protect their turf or be destroyed.

The far north is now effectively an independent Kurdish region that has expanded into oil-rich Kirkuk, long disputed between the Kurds and Iraqi Arabs. Other areas in the north have fallen to Shi'ite militias and Kurdish peshmerga fighters, who claim land where they can.

In Baghdad's rural outskirts and in the Diyala province to the east and north towards Samarra, militias, sometimes backed by Iraqi military, are seizing land and destroying houses in Sunni areas.

Last there is Baghdad and Iraq's southern provinces, which are ostensibly still ruled by the country's Shi'ite-led government. But the state is a shell of what it once was. As respect for the army and police has faded, Iraqis in the south have turned to the Shi'ite militia groups who responded to the rallying cry of Iraq's most senior clergy to take on Islamic State.

Prime Minister Haider al-Abadi, a Shi'ite moderate who became Iraq's new leader in September, four months after national elections, hopes that the country can be stitched back together. Abadi has tried to engage the three main communities, taking a more conciliatory tone than that of his predecessor Nuri al-Maliki, who was often confrontational and divisive. Abadi, the Kurds and even some Sunni politicians now all speak of the need for federal regions, so the country's communities can govern themselves and remain part of a unified state.

Iraq, though, has been splintered  into more than just three parts, and the longer those fragments exist on their own the harder it will be to rebuild the country even as a loose federation. Such an arrangement would require the defeat of Islamic State, a massive rebuilding program in the Sunni regions, unity among Iraq's fractious political and tribal leaders, and an accommodation between the Kurds and Baghdad on the Kurds' territorial gains.

Even the optimists recognize all that will be difficult. Finance Minister Hoshiyar Zebari, a Kurd who wants Iraq to stay united, says he can picture Iraq eventually regaining its "strength and balance." But, he concedes, "the country is severely fractured right now."

Ali Allawi, a former minister of trade, defense and finance, and author of two books on Iraqi history, agrees. "There is so much up in the air," he said. "There are the trappings of a functioning state, but it is like a functioning state lying on a sea of Jello...The ground is so unstable and shifting."

KURDISTAN
Iraq's Kurds often see opportunity in times of trouble. This year they moved quickly to take lands long disputed with Arab Iraqis, including Kirkuk. For a while, talk of secession increased, but then quieted after Islamic State mounted a successful attack into Kurdistan in August. Since then, buoyed by U.S. air strikes designed to hurt Islamic State, the Kurds have recaptured areas they lost and forged an agreement to export oil from Kirkuk and its own fields for Baghdad.

Kurdish business tycoon Sirwan Barzani, a nephew of Iraqi Kurdish President Masoud Barzani, sees this as a moment to advance his people's nationalist dream.  He was in Paris chairing a board meeting of the telecom company he founded in 2000 when he received news that Islamic State militants had overrun Mosul. A former peshmerga fighter in the 1980s, he canceled his holiday plans in Marbella and rushed back to Kurdistan to help prepare for war, taking command of peshmerga forces along a 130 km (81 mile) stretch of the Kurds' front line with Islamic State.

Washington sees the Kurds as its most dependable ally in Iraq. For Barzani and other Kurds, though, the fight against Islamic State is simply the continuation of a long struggle for an independent nation.

Before leading an offensive last month to drive Islamic State militants back across the river Zab towards Mosul, Barzani said he met with an American general to talk strategy and coordinate airstrikes.

"They asked about my plan," Barzani told Reuters in a military base on the frontline near Gwer, 48 kilometers (30 miles) south of the Iraqi Kurdish capital Arbil. "I said, 'My plan is to change the Sykes-Picot agreement'" – a reference to the 1916 agreement between France and Britain that marked out what would become the borders of today's Middle East.

"Iraq is not real," Barzani said. "It exists only on the map. The country is killing itself. The Shi'ites and Sunnis cannot live together. How can they expect us to live with them? Our culture is different. The mentality of Kurds is different. We want a divorce."

THE SUNNIS
Where Kurds saw opportunity in 2014, Iraq's Sunnis saw endless turmoil and new oppression. Residents in the western and northern cities of Mosul, Tikrit and Falluja – all now controlled by Islamic State – complain about fuel and water shortages, and Islamic State directives that women cover themselves and smokers be fined. They tell stories about the destruction wrought by shelling by the Iraqi government and U.S. forces.

In places where Sunnis themselves are battling Islamic State, the brutality can be unrelenting. Many wonder what will be left when the war finishes and whether it will be possible for Sunnis to reconcile even among themselves.

Sheikh Ali Abed al-Fraih has spent months fighting Islamic State. A tribal soldier in Anbar province, he has sunken, tired eyes and a frown. His clothes are one size too big for him. He sees the conflict as an internal battle among the Anbar tribes. Some have chosen to join Islamic State, others to fight the group. Some of his enemies, he says, are from his own clan. The fight will not end even if areas around his town of Haditha and other Anbar cities are cleared, he says. All sides will want revenge. "Blood demands blood. Anbar will never stop."

Fraih flew to Baghdad in late December to beg the government to send help to Haditha, which is pinned to the west and east by Islamic State and defended by a five km-long (3 mile) berm. Fraih could only reach Baghdad by military plane. The government had promised for two months to send food and medicine, but no help had come. The week before Christmas the government told him help would come in a week. Fraih tried be polite about the promise, but it's hard. "It's all words," he said.

Every day, tribal fighters and Iraqi soldiers in Haditha stop Islamic State assaults and defend the city's massive dam. If Islamic State take the dam they could flood Anbar and choke off water supplies to the Shi'ite south. The army, in particular, is struggling, he said. "In every fight the army loses 50 soldiers. Their vehicles get destroyed, they are short on fuel, and no new vehicles are coming. They are hurting more than my own men."

The city's one lifeline to the outside world is a huge government airbase called Ain al-Assad, some 36 km (22 miles) south. Fraih recently met U.S. Special Forces there. They assured him that if Islamic State breaks through the barriers to Haditha, the U.S. will carry out air strikes. The logic confuses Fraih. "They know the people have no food, no weapons, no ammunition, nothing. We are sinking. If you are not going to help us, at least take us to the south and north. We are dying now."

His faith in getting help from anyone has almost vanished.

"What is left of Iraq if it keeps moving this way?" he asked.

THE SHI'ITES
In a house on the outskirts of Baghdad, a Shi'ite tribal leader sat and imagined his world as "a dark tunnel with no light" at its end.

"Iraq is not a country now," he said. "It was before Mosul."

The sheikh, who spoke on condition of anonymity, would like to see his country reunited but suspects Abadi is too weak to counter the many forces working against him. Now the Shi'ite militias and Iran, whom the sheikh fought in the 1980s, are his protectors. It is a situation he accepts with a grim inevitability.

"We are like a sinking ship. Whoever gives you a hand lifting you from the sea whether enemy or friend, you take it without seeing his face because he is there."

Iranian-advised paramilitaries now visit his house regularly. He has come to enjoy the Iranian commander of a branch of the Khorasani Brigades, a group named for a region in northeastern Iran. The commander likes to joke, speaks good Arabic and has an easy way, while other fighters speak only Persian, the sheikh said.  He expresses appreciation for their defense of his relatives in the Shi'ite town of Balad, which is under assault from the Islamic State.

The sheikh's changing perceptions are shared by other Iraqi Shi'ites. They once viewed Iran as the enemy but now see their neighbor as Iraq's one real friend. The streets of Baghdad and southern Iraq are decorated with images of Iran's supreme leader Ayatollah Ali Khamenei.

The sheikh, though, does not believe he can rely on Iran altogether. He is sure some Iranian-backed militiamen would happily kill him. He has heard of one case in Diyala where a militia leader shot dead the son of a popular Shi'ite tribal leader. He has also watched as militia fighters aligned with police and army officers kidnapped a cousin and a friend for ransom. "I feel threatened by their bad elements," he said of the militias.

If the state doesn't rebuild its military quickly and replace the multiple groups now patrolling the lands, the sheikh fears Shi'ite parts of Iraq will descend further into lawlessness. "It will be chaos like the old times, where strong tribes take land from the weak tribe. Militias fight militias," he said. "It will be the rule of the jungle, where the strong animal eats the weak."

(GNN, Reuters)(Edited by Simon Robinson)

Good Morning Karachi

GNN - Thank you Karachi for supporting and your dedication to the revival of cinema, on behalf of THOR, The House Of Rana, who were the official partners to handle Press, Media and PR for the premiere of the movie *GOOD MORNING KARACHI* ( hash tag #GMK2014 ) the following night here on Sunday Dec 28th, 2014 at Cinepax Cinemas, Ocean Towers, 2 Talwar, Clifton, Karachi.

Few guests to be remembered, who were spotted at the starry and crazy night included Amna Ilyas, Beo Rana, Yasir Aqueel, Farhan Aly Aga, Bushra Ansari, Humayoun Saeed, Deepak Perwani, Mohsin Saeed, Rup Magon, Hina Khuwaja Beyaat, Tapu Javeri, Wardah Saleem, Tara, Hina Rizvi, Nauman Arfeen, Fathyma, Fayezah Ansari, Aiman Khan, Angie Marshall, Huma Tahir, Asma Zuberi, Obaid Sheikh, NUbain Ali, Marze, Umair Mirza, Tara Uzratullah Dawood, Danish Wakeel, Zurain Imam, Irfan Motiwala, Ebtesam, Beenish, Misbah, Mannal, Sarah khan, Sania, Minahal, Nazish, Sadia Sidiqui, Umer Mushtaq, Moiz Kazmi, Deepak and Fahad, Sofia Khan, Dr. Wajahat, Raheel Rao and alot more designers, models, bloggers, press and channels.

All the female models spotted posing on the red carpet and observed to be very eye-candy at the premiere were dolled up glamorous and chic by none other than Angie Marshall salon and institute, and were carrying the very customized made, COCKTAIL outfits, just for this event by Asim @ THOR.

Its a story of a girl who chases her dreams to become a famous and renowned super model of Karachi, naaah Pakistan, it was filmed very well in the era, when Mr. Benzair Bhutto was shot dead, very well portrayed the city situations had to be seen by the Karachiets.

All in all, its a good time entertainer, one must go and watch at the cinemas near y ou. This movie shall begin screening at all the cinemas from Jan 1st, 2015. Its no doubt going to be another feather on the cap of lovely, gorgeous and super talented Amna Ilyas, Yasir also did the justice with his role.

Shiny Toy Guns [#STG] set to release their debut feature ‘Dekh Magar Pyar Se’ [#DMPS] in Summer 2015

GNN - Shiny Toy Guns [#STG], headed by leading advertising filmmaker Asad-ul-Haq and prominent marketer Ali Murtaza, are set to release their debut feature film ‘DekhMagarPyar Se’ in Summer 2015.

‘DekhMagarPyar Se’ will be directed by Asad-ul-Haq himself, marking his cinematic debut as a director, with STG producing, financing and developing their debut venture completely in-house.

“We are very excited as we have been working on this project for the last one year or so! ‘DekhMagarPyar Se’ will be a true manifestation of our culture and music captured in breath taking visuals. We have a great team on-board for this project and will be sharing more details very soon. ‘DekhMagarPyar Se’ will hit cinemas by Summer 2015 but we will announce its official release date soon.” said Asad-ul-Haq and Ali Murtaza on behalf of STG.

Originally based out of Singapore and recently launched in Pakistan, Shiny Toy Guns endeavours to create and to provide a platform to launch and support talent related to art of filmmaking and motion pictures, be it directors, actors, producers or writers.

STG will be sharing more details regarding the production, cast and crew members later this year. In the meantime, keep yourself logged on to the following portals for more information on STG and ‘DekhMagarPyar Se’.

Facebook: https://www.facebook.com/stgstudios
Twitter: https://twitter.com/stg_studios

SOURCE: PRESS RELEASE

Main accused of Lyari gang-war ‘Uzair Baloch’ arrested: Interpol

GNN UAE/DUBAI: Uzair Baloch was arrested by Dubai authorities when he was on his way from Muscat to Dubai on Monday.

According to the reports, Interpol had issued red warrants for the main accused of the Lyari gang-war Uzair Baloch and Noor Mohammad alias Baba Ladla on June 11, 2014.

Baloch was travelling on an Iranian passport with his name listed as Abdol Ghani. Sources added that the decision to extradite Baloch to Iran or Pakistan is yet to be made, sources added.

The Pakistan Embassy also confirmed that the he was arrested on Monday.(GNN, Aaj)

Millions of children devastated by conflicts in 2014

GNN ISLAMABAD: As 2014 winds down, it comes as no surprise that children were hit the hardest by violence and conflicts across the globe,  the UN children’s agency said.
“Children are the ones who lose everything in war zones,” Xenia Schlegen, an activist from the Save the Children charity, told The Anadolu Agency.

“The problem with being a child in a war zone is that not only are your young years taken away from you, but also your future.”

At least 230 million children lived in areas plagued by conflict in 2014, which has been a year of horror, fear and despair for the world’s youngest, according to UNICEF, with as many as 15 million children caught up in violent conflicts in the Central African Republic, Iraq, South Sudan, Palestine, Syria and Ukraine, Anadolu news agency reported.

Millions of children were exposed to extreme violence or deliberately targeted by warring groups. Hundreds of children were kidnapped from school and tens of thousands were recruited or used by armed groups.

“Children are the innocent victims of conflicts across the world,” said Mervyn Fletcher from Save the Children. “All too often, violence happens in places where children should be safe,
including in schools.”

APP

KE Along with Aman Foundation, Engro & Civil Hospital become a part of PAKATHON

GNN - K-Electric through its press statement has announced that the company has become the first ever corporate in Pakistan to pose a real time data mining challenge in the Pakathon Data and Design Connect 2014. The event in collaboration with the MIT Enterprise Forum of Pakistan was launched back in May 2014. Universities which participated in Pakathon this year included IBA, IVS, FAST, MIT, Boston University, Karachi University, Bahria University, NED and Szabist.

The press statement added that organizations that posed challenges other than K- Electric included, Aman Foundation, Civil Hospital and Engro, where students were asked to come up with innovative ideas and solutions for operational challenges that these companies and institutions faced.

KE’s challenge was focused to devise data driven solutions to curb theft in high loss areas and consequently reduce load shed. The response was overwhelming and five teams were shortlisted including a team headed by an MIT professor. In the end one team with the best ideas and solutions was selected as the winning team by KE’s operational team and was awarded PKR 200,000 by KE.

Spokesman KE added, “We are proud to be a part of this where such talented individuals come up with solutions for organizational operations. We will be testing out some of the solutions provided by the winning team for the next few months for adaptability and reliability”.

SOURCE: PRESS RELEASE

Thick fog in Lahore, affects flights and train schedule

GNN LAHORE: Thick fog disrupted flight operations at Airport and affected train schedule in Lahore and its adjacent areas,
According to Airport sources, flight operations were suspended due to mist. Train schedule was also badly affected due to fog in the city, sources added.

Citizens using vehicular traffic are also facing difficulties at Mal Road, Canal Road and Gulburg early on Monday.(Aaj News)

Karachi’s Timber Market: massive fire causes huge financial losses

A massive fire that broke out at Karachi’s biggest timber market in the early hours of Sunday, was extinguished by fire fighters after a rescue effort lasting over 12 hours. The fire caused billions of rupees losses to traders and others; however, no casualty was reported in the incident. According to witnesses, the fire initially broke out in a building, but it quickly spread over to nearby residential and commercial buildings.

The fire was rated as category three, which also engulfed nearby buildings of the densely populated locality of Old Haji Camp area.

Atique Mir, Chairman All Karachi Tajir Ittehad (AKTI), told Business Recorder that it was criminal negligence of Fire Brigade department as its ‘sluggish’ team reached the site after almost 70 percent of the timbers and other valuables were completely burnt by the fire.

He said that Fire Brigade department miserably failed to perform its duty effectively. He said that fire tenders reached the site three hours after the fire broke out.

“It does not have the capacity to fight even 20 percent of such untoward incident in the city. Had the department been active and fully equipped to deal with the situation, the traders of timber market would have not suffered billions of rupees losses today,” he lamented. The traders lost several commercial warehouses where timber was stored for the furniture manufacturing industry, he added.

Meanwhile, the Sindh government announced that it would compensate the losses of traders and residents caused by the fire.

Provincial Minister for Information Sharjeel Memon while addressing an emergency press conference at Commissioner’s House said that the Sindh government had constituted a committee comprising Commissioner Karachi Shoaib Ahmad Siddiqui and Administrator Karachi Rauf Akhter to estimate the losses caused by the fire. The committee would submit its comprehensive report within a week. He further said that the government would provide relief to traders and residents by compensating their losses.

He said that 28 fire tenders took part in the operation to extinguish the fire.

He added that the fire was finally extinguished after 11 hours long efforts, however the cooling process took two to three hours. Officials suspected that the fire might have broken out due to electric short circuit.

Meanwhile, Muttahida Qaumi Movement (MQM) Chief Altaf Hussain expressed grief and sorrow over the incident. MQM chief further said the provincial government had no such arrangements to extinguish the fire.

He advised the rulers to make public the contact numbers for rescue so that the pained and disconcerted people may lodge their complaints.

MQM leader Farooq Sattar visited the site and criticised the concerned authorities for their failure in timely extinguish the fire.

APP adds: Prime Minister Muhammad Nawaz Sharif on Sunday took notice of the eruption of fire in Timber Market of Karachi.

Expressing grief and sorrow over the tragedy, the Prime Minister asked the provincial government and relevant departments to take steps to avert recurrence of such tragedies in future at all costs.

SOURCE: APP/RECORDER REPORT

Search halted for missing AirAsia plane as night falls

GNN JAKARTA: Indonesia suspended until first light the search for an Air-Asia plane that went missing Sunday in the Java Sea with 162 people on board after the crew requested a change of flight plan due to bad weather.

The Airbus A320-200 disappeared en route from Surabaya in Indonesia’s east Java to Singapore, in the third crisis for a Malaysian carrier this year.

Around 11 hours later, the search halted with no sign of the plane. It would resume at 7am Monday, or even earlier if the weather was good, Indonesian transport ministry official Hadi Mustofa told AFP.

Air traffic controllers lost contact with the twin-engine aircraft around an hour after it left Surabaya’s Juanda international airport at about 5:20am (2220 GMT Saturday). No signal was received from it.

AirAsia said 155 of those on board Flight QZ8501 were Indonesians, with three South Koreans and one person each from Singapore, Malaysia, Britain and France.

The Frenchman was the co-pilot. Shortly before disappearing, the pilot asked to ascend by 6,000 feet to 38,000 feet to avoid heavy clouds, according to an Indonesian transport ministry official.

“The plane requested to air traffic control to fly to the left side, which was approved,” Djoko Murjatmodjo told a press conference.

“But their request to fly to 38,000 feet from 32,000 feet could not be approved at that time due to traffic, there was a flight above, and five minutes later the flight disappeared from radar.”

“According to our climate radar, the weather was not good. There was enough cumulonimbus (cloud) there,” said Murjatmodjo.

He said Indonesia had deployed seven aircraft, four navy ships and six boats from the search and rescue agency.

The search focused on waters around the islands of Bangka and Belitung in the Java Sea, across from Kalimantan on Borneo island.

But Murjatmodjo said the transport ministry had also asked the army to carry out ground searches, including in mountainous areas.

“We have focused all our strength, from the search and rescue agency, the military, police and help from the community as well as the fishermen,” said rescue agency chief F.H.B. Soelistyo.

He said three ships and three planes from Malaysia would join the search Monday. A Singaporean C130 plane joined Sunday’s operation, and two Singaporean planes would be deployed Monday with Australia also offering help.

Source: AFP

Chicken prices register sharp increase despite cut in fuel cost

GNN ISLAMABAD: The extremely cold weather has multiplied the demand of chicken and as a result its prices have registered a sharp increase during the last week in twin cities of Islamabad and Rawalpindi.

Normally in winter season, the use of poultry products increase which ultimately result in escalating prices.

But, according to market sources, the prices of two essential commodities including chicken have increased from Rs 150 per kilogram to Rs 180 kilogram and eggs from Rs 115 per dozen to Rs 125 per dozen.

A couple of a weeks ago, the chicken prices was around Rs 150 per kg and eggs Rs 115 per dozen but despite the decrease in the prices of petroleum products, the poultry prices are going up.

Most of the people use eggs in their daily breakfast as it contains sufficient proteins which help maintaining good health but now they have to go for an alternative energy intake source.

Imran Ahmad, an employee of a private office said that the demand of eggs usually increases in the winter season and subsequently the prices shoot up.

Eggs are an absolute priority in breakfast and people are forced to purchase them on high prices.

A student, Waqas Majeed said it never happened in the past that the prices of eatables shoot up to this extent.

The concerned authorities should chalk out a mechanism to control prices of kitchen items especially chicken and eggs which are essential for a sound health, Sadia Sajjad, a house wife, suggested.

When contacted, a representative of the Poultry Association held costly feed, rise in electricity prices responsible for increasing prices of the poultry products.

He claimed that despite cut in fuel prices, the transporters have not cut down transportation charges.

Source: APP

Karachi to witness 290 processions and 390 meetings on Eid- e-Milad

GNN KARACHI: An estimated number of 290 small and large sized processions would be taken out from different parts of Karachi on Rabi- ul- Awwal 12.

Officials sharing details with APP for the measures adopted to facilitate masses in general on the eve of Eid- e- Milad- un- Nabi  (Peace Be Upon Him) said permission has also been granted for no less than 390 congregations comprising milad sharif, mahafil- e- naat and dars on one single day in the metropolis.

In reply to a question, they said in view of the existent situation in the country only those groups and organisation will be allowed to bring out procession or hold meeting that has been granted permission after adequate screening and proper check of their background.

“No, we definitely cannot take any chance or risk,” he said mentioning that measures are also being taken to sensitize people to cooperate with the administration and communicate any unusual or suspicious development in their vicinity.

Source: APP

ire at Timber Market doused after 11 hours struggle

GNN KARACHI: The inferno that broke out last mid night at Timber Marker in Old Haji Camp area of the metropolis was extinguished after 11 hours long and tiring fight on Sunday morning.

Fire fighters from different fire stations in the city were actively engaged in dousing it despite inadequate facilities, said a KMC fire brigade official.

There was no injury or loss of life,Sharing details with APP he said around five fire engines were involved in the fire fight that was made extremely difficult due to insufficient support to carry on job in area comprising extremely narrow lanes.

“Fortunately we did get uninterrupted supply of water from different hydrants but the blaze was so intense that the job had turned to be extremely difficult, more so because timber are an easy object to catch fire,” elaborated the official.

In reply to a question, he said snorkel was used to water the burning site from the top and this greatly helped to control the situation.

“It was a category three fire and had turned to be all the more dangerous as residential areas located close to the market were also at high risk,” he said responding to another query.

The fireman appreciated people for extending their support and maintaining a certain discipline.

“This is appreciable, however, we do urge authorities to ensure safety of the fire-fighters who are yet to get some of the very essential protective gadgets,” he said.

Source: APP

Tension escalates in Turkey southeast, three killed: official

GNN - Three people were killed Saturday in clashes between Kurdish rebels and a rival Kurdish group in southeast Turkey near the Syrian border, a local governor’s office said.

The initial death toll given was two but the local governor’s office in the southeastern city of Sanliurfa later said one of the three injured died in hospital.

Tensions have escalated in the town of Cizre since Friday night when the Sunni Muslim Huda-Par group attacked tents belonging to rebels of the outlawed Kurdistan Workers’ Party (PKK), a security source told AFP.

Huda-Par is known to be the political extension of Turkish Hezbollah and has long been hostile to the PKK — which has fought Turkish security forces in a three-decade insurgency for Kurdish self-rule.

The clashes in Cizre were continuing sporadically, the source said.

Local media reported that one of the dead was the father of a leader of the Huda-Par.

Fierce street fights between the Huda-Par group and the PKK took place in Turkey’s pro-Kurdish southeast in October when the Islamic State was fighting Kurdish forces in the mainly Kurdish town of Kobane across the Syrian border.

Ankara has not intervened militarily against IS militants, to the fury of Turkey’s Kurds, who took to the streets in a show of protest in October, leaving scores of people killed in the worst outbreak of such violence in years.

The trouble has raised fears that the standoff over Kobane could derail talks between the Turkish government and the PKK for a peaceful settlement.

Source: AFP,

Sharjeel congratulates Democrats on KPC polls win

KARACHI: Sindh Minister for Information and Local Government Sharjeel Inam Memon has congratulated Democrats panel candidates on their success in the Karachi Press Club’s annual elections for 2015.

The minister, in a statement issued here on Saturday night, felicitated the newly-elected office-bearers Fazil Jamili, Nawab Qureshi, A.H. Khanzada, Hanif Akbar and Rizwan Bhatti.

He said that the Pakistan People’s Party had always supported journalists for the freedom of press.

The minister said the PPP governments always played their role in addressing the problems faced by journalists and the party would continue to play its role for the freedom of press and welfare of journalists.

Source: APP

Flooding could follow heavy snow in western New York

GNN - Emergency workers filled thousands of sandbags on Sunday as the area around Buffalo, New York braced for potential flooding as warming temperatures began to melt up to seven feet (2 meters) of snow.

Hundreds of members of the New York National Guard were in Erie County and Buffalo to help with flood prevention after days of work to clear roads and dig homes and cars out of the record snow from a storm that killed 13 people.

The National Weather Service said roads could flood quickly from snow melt, since the storm blocked drains, and issued warnings for potential flooding of four rivers and creeks.
"We hope to get back to business on Monday. Government offices will be open. Schools will be open. We are sending teams of structural engineers in to inspect any school that might have the potential of a structural problem," New York Governor Andrew Cuomo told reporters on Sunday at a news briefing.

Cuomo said the state had prepared in case of widespread flooding, moving in hundreds of pumps, tens of thousands of sandbags and putting together a robust evacuation plan.

Three sandbagging machines and 176,500 sandbags were among the supplies taken to staging areas. Ellen Przepasniak, spokeswoman for the Erie County emergency operations effort, said sandbags would be quickly deployed to cities and towns that report rising waters.

State agencies have also deployed high axle vehicles that can drive on flooded roads, pumps, water bottles, a water tank and other emergency material, the governor's office said.

Roofs collapsed and some people were stuck in their cars for more than 24 hours when the heaviest snow fall in memory hit areas of New York state along the Great Lakes. The November storm system, dubbed the "Knife Storm," lasted for three days.

The National Weather Service said higher temperatures - rising to 50 degrees Fahrenheit (10 degrees Celsius) on Sunday and 60 F on Monday - could rapidly unlock up to 6 inches of water.

"Snowmelt is well underway and will continue through Monday. It is this snowmelt that will ultimately cause the flooding concerns," the weather service said on its web site.

"It is warming up already, it's in the 40s right now and based on the temperatures we've been dealing with, it's pretty balmy," Buffalo Mayor Byron Brown told CNN news on Sunday morning.

(GNN, Reuters, Aip)(Additional reporting by Victoria Cavaliere; Writing by Fiona Ortiz; Editing by Andrew Roche)

Exclusive: China ready to cut rates again on fears of deflation - sources

GNN - China's leadership and central bank are ready to cut interest rates again and also loosen lending restrictions, concerned that falling prices could trigger a surge in debt defaults, business failures and job losses, said sources involved in policy-making.

Friday's surprise cut in rates, the first in more than two years, reflects a change of course by Beijing and the central bank, which had persisted with modest stimulus measures before finally deciding last week that a bold monetary policy step was required to stabilize the world's second-largest economy.

Economic growth has slowed to 7.3 percent in the third quarter and policymakers feared it was on the verge of dipping below 7 percent - a rate not seen since the global financial crisis. Producer prices, charged at the factory gate, have been falling for almost three years, piling pressure on manufacturers, and consumer inflation is also weak. "Top leaders have changed their views," said a senior economist at a government think-tank involved in internal policy discussions.

The economist, who declined to be named, said the People's Bank of China had shifted its focus toward broad-based stimulus and were open to more rate cuts as well as a cut to the banking industry's reserve requirement ratio (RRR), which effectively restricts the amount of capital available to fund loans.

China cut the RRR for some banks this year but has not announced a banking-wide reduction in the ratio since May 2012.

"Further interest rate cuts should be in the pipeline as we have entered into a rate-cut cycle and RRR cuts are also likely," the think-tank's economist said.

Friday's move, which cut one-year benchmark lending rates by 40 basis points to 5.6 percent, also arose from concerns that local governments are struggling to manage high debt burdens amidst reforms to their funding arrangements, the sources said.

The cut helped send Asian shares broadly higher on Monday. The CSI300 Index .CSI300 of the largest companies listed in Shanghai and Shenzhen opened up 1.2 percent at its highest level since June 2013, while the Shanghai Composite Index .SSEC opened up 0.8 percent.

Top Chinese leaders had been resisting a rate cut, fearing it could fuel debt and property bubbles and dent their reformist credentials, but were eventually swayed by signs of deteriorating growth as the property sector cooled. Until then, they had persisted with targeted policy steps, such as cuts in reserve ratios for selected banks and liquidity injections into the banking system. But these failed to bring down borrowing costs for the corporate sector. "Increasing liquidity by the central bank has failed to lower borrowing costs for the real economy," said a former central bank researcher who now works for the government.

"Employment still holds up, but corporate profits have been squeezed as producer price deflation bites, and it's unreasonable for banks to have hefty profits."

CALLS FOR BOLDER ACTION

Many Chinese economists had been calling for bolder policy actions, as recent data showed the economy losing more steam in the fourth quarter and consumer price inflation falling. Full-year growth is on track to undershoot the government’s 7.5 percent target and mark the weakest expansion in 24 years.

"GDP growth is near 7 percent which is at a dangerous level given it could still go even lower due to structural reforms," said Li Xunlei, chief economist at Haitong Securities.

"The rate cut helped boost confidence in next year's growth outlook," said Li, who was among economists who discussed policy issues with Premier Li Keqiang at a recent cabinet session.

Government think-tanks, which make policy proposals, have urged Beijing to cut its economic growth target next year, probably to around 7 percent, from around 7.5 percent this year.

The leadership is due to map out economic and reform plans for 2015 at a work conference next month, including economic targets which will be unveiled in parliament next March.

WORRIES OVER EMPLOYMENT

China's leaders also worried that a sharp economic slowdown could hurt employment and undermine public support for reforms.

"Employment still holds up now, but it will definitely be affected if growth slows further," said Yin Zhongli, senior economist at the Chinese Academy of Social Sciences, a top government think-tank.

The central bank does not have the final word on adjusting interest rates or the value of the yuan. The basic course of monetary and currency policy is set by the State Council, China's cabinet, or by the Communist Party's ruling Politburo.

Beijing wants to push some painful reforms next year, including fiscal reforms to deal with a mountain of local government debt, and the risk of pushing local governments into defaults could be offset by lower interest rates. Some policy insiders said the rate cut was also influenced by talks at this month's summit of the G20 group of nations, which pledged to boost flagging global growth.

China, which will host the G20 summit in 2016, is keen to maintain its influence as a major driver of global growth. "China is keen to play a bigger role within G20 and it needs to maintain relatively fast economic growth," said Zhao Xijun, an influential economist at Renmin University.

(GNN, Reuters, Aip)(Editing by Mark Bendeich)

Plague in Madagascar has killed 40 people out of 119 cases -WHO

GNN Health & Fitness News - An outbreak of the plague has killed 40 people out of 119 confirmed cases in Madagascar since late August and there is a risk of the disease spreading rapidly in the capital, the World Health Organization (WHO) said on Friday.

So far two cases and one death have been recorded in the capital Antananarivo but those figures could climb quickly due to "the city's high population density and the weakness of the healthcare system", the WHO warned.

"The situation is further complicated by the high level of resistance to deltamethrin (an insecticide used to control fleas) that has been observed in the country," it added.


Plague, a bacterial disease, is mainly spread from one rodent to another by fleas. Humans bitten by an infected flea usually develop a bubonic form of plague, which swells the lymph node and can be treated with antibiotics, the WHO said.

If the bacteria reach the lungs, the patient develops pneumonia (pneumonic plague), which is transmissible from person to person through infected droplets spread by coughing. It is "one of the most deadly infectious diseases" and can kill people within 24 hours. Two percent of the cases reported in Madagascar so far have been pneumonic, it added.

The first known case of the plague was a man from Soamahatamana village in the district of Tsiroanomandidy, identified on Aug. 31. He died on Sept. 3 and authorities notified the WHO of the outbreak on Nov. 4, the agency said.

The WHO said it did not recommend any trade or travel restrictions based on the information available about the outbreak.

The last previously known outbreak of the plague was in Peru in August 2010, according to the WHO.

(GNN, Reuters, Aip)(Reporting by Stephanie Nebehay; Editing by Janet Lawrence and Hugh Lawson)

China cuts interest rates to spur growth, ease debt pressure

GNN Economic News - China cut interest rates unexpectedly on Friday, stepping up efforts to support the world's second-biggest economy as it heads toward its slowest expansion in nearly a quarter of a century, saddled under a mountain of debt.

But the central bank, keen to show it was not back-tracking on economic reforms, twinned the move with a slight liberalization of the rates banks pay to borrowers in a bid to ensure millions of savers do not see their incomes hit.

Beijing's first rate cut in more than two years comes as factory growth stalls and the property market, long a pillar of growth, is weak, dragging on broader activity and curbing demand for everything from furniture to cement and steel.

Many companies have also been struggling with debt, as slowing sales crimp their ability to pay back loans racked up in a nationwide frenzy of borrowing from 2008-2010 when Beijing used economic stimulus to offset the effects of the global financial crisis.

"It will obviously reduce financing pressures for bank borrowers. Typically those are larger companies, state-owned companies, so they're the main beneficiaries of this," said Mark Williams, chief Asia economist at Capital Economics in London.

The People's Bank of China (PBOC) said it was cutting one-year benchmark lending rates by 40 basis points to 5.6 percent. It lowered one-year benchmark deposit rates by 25 basis points to 2.75 percent. The changes take effect from Saturday.

European shares and other growth-sensitive commodities all leapt as China's move to cut rates gave markets a welcome lift after a week where data has shown its giant economy faltering.

While the move acknowledged the risks to growth and marks a stepped-up effort to ensure the economy stays on track even as it is expected to slow to a 24-year low of 7.4 percent this year, the central bank took pains to signal that it was not simply moving toward a looser monetary stance.

In a break with earlier practice, it issued a long statement accompanying the announcement explaining the rationale for the policy step, which included giving banks more leeway in setting their own interest rates for depositors and borrowers.

"The problem of difficult financing, costly financing remains glaring in the real economy," the PBOC said, adding that it was especially keen to help smaller firms gain access to credit.

For one-year deposits, banks may now pay depositors 1.2 times the benchmark level, up from 1.1 times previously. It also scrapped limits on interest rates for long-term deposits of five years, and simplified its system of benchmark rates for loans.

LIMITING THE IMPACT

"They are cutting rates and liberalizing rates at the same time so that the stimulus won't be so damaging," said Li Huiyong, an economist at Shenyin and Wanguo Securities.

Recent data showed bank lending tumbled in October and money supply growth cooled, raising fears of a sharper economic slowdown and prompting calls for more stimulus measures, including cutting interest rates.

But many analysts had expected the central bank to hold off on cutting interest rates for now, as authorities have opted instead for measures like more fiscal spending.

The jury is still out on how much the rate cut will actually prompt more lending. The PBOC uses other levers such as reserve requirement ratios to limit the amount of cash banks have on hand to lend out.

However, even simply reducing the debt burden on companies will ease the pressure on many, which could help avert one of the biggest potential risks to the economy - that of bad loans leading to a debt crisis.

While the asymmetrical cut in interest rates - the fall in the lending rate is more than that in the deposit rate - will shave banks' net interest margins, many of the country's lenders appear to be in a position to weather that challenge.

Net interest income after loan-loss provisions at Agricultural Bank of China (601288.SS) (1288.HK), China Construction Bank (601939.SS) (0939.HK) and Industrial and Commercial Bank of China (601398.SS) (1398.HK) grew by 12 percent or more during the first nine months of the year, compared with a year earlier.

China's rate move comes after the Bank of Japan sprang a surprise on Oct. 31 by dramatically increasing the pace of its money creation, while European Central Bank President Mario Draghi shifted gear on Friday and threw the door wide open to quantitative easing in the euro zone.

"There is definitely more concern around about the state of the global economy than there was a few months ago, you see that not just when you talk about Europe," British finance minister George Osborne told an audience of business leaders in London on Friday.

(This version of the story was refiled to fix wording in second paragraph)

(GNN, Reuters, Aip)(Additional reporting by Jake Spring and Matthew Miller; Editing by Jacqueline Wong, Kim Coghill and Mike Collett-White)

Concerns about state of global economy have increased: UK's Osborne

GNN London - Stagnation in the euro zone, recession in Japan and geopolitical crises have increased concerns about the state of the global economy, British finance minister George Osborne said on Friday.

Osborne said economic performance in the euro zone was a cause of "real worry and concern", particularly in Britain whose main export markets are in the bloc.

"There is definitely more concern around about the state of the global economy than there was a few months ago, you see that not just when you talk about Europe," he told an audience of business leaders in London.

"Japan has gone into recession and there are all the geopolitical risks out there."

Earlier this week, British Prime Minister David Cameron said "red warning lights" were flashing over the state of the global economy. Britain's opposition Labour party said he was "making excuses" for a slowdown in Britain's growth rate ahead of national elections in May.

Speaking at the same event as Osborne, Italian Economy Minister Pier Carlo Padoan said he was confident that monetary policy was being used to do "whatever it can" in the euro area to support the recovery and move the inflation rate towards its target.

Padoan said progressive integration within the European Union had been a key driver of growth and jobs over the last decade and plans for a capital markets union would help continue this.

The EU's new financial services chief has said he wants to create an integrated market for raising money through bonds, shares and other financial instruments over the next five years and will set out his plans by the middle of next year.

Channelling more money into small companies is seen as crucial for Europe's efforts to boost its fragile economy because small and medium-sized enterprises provide two out of every three private-sector jobs in the EU.

"What we need to do is to take decisive action towards further integration of capital markets which are an essential instrument for growth," Padoan said.

Osborne said there had been "a marked improvement" in financial and credit conditions in Britain but more needed to be done, particularly for small and medium-sized businesses. Europe as a whole was still too dependent on bank credit as source of finance for businesses, he said.

"There is a real opportunity," he said of plans for capital market union. "Let's not turn this into a bureaucratic exercise or an empire-building exercise in the European Union, let's turn it into a growth-promoting exercise to support the expansion of businesses."

(GNN, Reuters, Aip)(Editing by Stephen Addison)

Aviva in $8.8 billion deal to buy Friends Life after pensions shake-up

GNN London - British insurer Aviva (AV.L) said on Friday it had agreed terms on a possible deal to buy rival Friends Life (FLG.L) for 5.6 billion pounds ($8.8 billion) as British pension reforms put pressure on insurance companies to find new business.

Pension providers are rushing to reinvent themselves after the government in March unexpectedly removed obligations for people to buy an annuity, or income for life, at retirement, sharply cutting annuity sales.

Aviva's all-share offer of 0.74 shares for every Friends Life share implies a 15 percent premium to the closing price on Friday. The board of Friends has indicated it will recommend the offer, which equates to 399 pence per Friends share, the companies said in a statement.

The deal would strengthen Aviva's balance sheet and reduce its leverage, as well as boosting its assets under management, it said.

Brokerage Panmure Gordon & Co downgraded Aviva following the announcement.

"Whilst there will be some cost synergies and it could accelerate Aviva's dividend paying capability it is also at odds with management's previous comments about Aviva being too UK-centric," Panmure analyst Barrie Cornes wrote in a research note.

The brokerage cut its target price to 505 pence per share from 585p previously and downgraded its recommendation to "Hold" from "Buy".

Mark Wilson, former boss at Asian rival AIA (1299.HK), joined Aviva as chief executive two years ago and has pushed a restructuring agenda across the group, selling off businesses, cutting costs and improving profitability.

Created in 2008 by entrepreneur Clive Cowdery as Resolution, Friends Life was known for buying up closed books of business from other insurers and using its scale to make cost savings in managing them as they gradually expire, or "run off", rather than writing new business itself.

Friends Life has a stronger presence in the growing "bulk annuity" market, in which insurers take on the risk of part or all of a company's pension scheme.

"The transaction would...more than double Aviva’s corporate pension assets under administration and create new opportunities," the statement said.

Friends Life posted a 7 percent drop in operating profit in the first half, while Aviva saw a 4 percent rise.

The two companies combined would have a stock market valuation at Friday's London market close of around 20.5 billion pounds.

Under the terms of the offer, Friends Life shareholders would own around 26 percent of the combined group. They would also receive an amount in cash equal to any Friends Life final dividend for the 2014 financial year.

Friends Life shares are down 2 percent this year, while Aviva has gained 20 percent.

(GNN, Reuters, Aip)(Additional reporting by Kate Holton; editing by Jason Neely)

Lockheed sees buyer for hybrid cargo airship in 2015

GNN - Lockheed Martin Corp (LMT.N) expects to reach an agreement next year with a launch customer for a giant new hybrid airship that would revolutionize the way oil and mining companies haul equipment to the Arctic and other remote areas without roads.

The initial version of the airship, filled mostly with helium, would carry 20 tons of cargo, but could easily be scaled to roughly the size of a football field with 500 tons of capacity, Robert Boyd, an engineer with Lockheed's Skunk Works R&D house, told Reuters in a rare media visit to the sprawling facility some 60 miles from Los Angeles.

Boyd, who started working on airships in 1991, said he was optimistic about finding an initial customer for the manned prototype airship, also known as P-791, next year, nearly a decade after the airship's first flight in 2006.

"We're months away, not days, not years," Boyd told Reuters. "By 2015, we'll be out there on the development track ... By 2018, we should see these in operation."

Lockheed is the Pentagon's No. 1 supplier, but it is targeting a commercial market for the slow-moving airships that have four hovercraft-like landing pads and can set down on nearly any flat surface, including sand, snow and even water.

"It's not the most sexy of airplanes, but it does its job," Boyd said.

Initial buyers would likely include small airlines or other firms that ship cargo to remote areas for oil, gas or mining companies, he said. He said the aircraft were also very safe because they are filled with helium, which does not burn.

He said climate change might boost demand with warmer conditions cutting the time that ice roads could be used.

The airships could help countries like Indonesia develop remote territories that lack ports, and could prove useful in providing relief supplies during natural disasters.

U.S. military officials had also expressed interest, he said, but would likely contract for cargo transportation services rather than buying the airships themselves.

Eventually, Lockheed could sell hundreds of the smaller airships and thousands of the larger ones, Boyd said.

He said the airships would likely cost tens of millions of dollars, making their cost comparable to what operators now pay to truck cargo via seasonal ice roads, but about five to 10 times cheaper than much cheaper than transport via helicopters.

(GNN, Reuters, Aip)(Reporting by Andrea Shalal; editing by Gunna Dickson)