GM admits more problems with mislabeling of ignition switch parts

(#GNN) - #General #Motors Co in 2003 and 2004 made changes to redesigned ignition switch parts on four #models but did not ensure that older, potentially faulty parts were taken out of circulation, the #automaker said in a filing with U.S. #safety regulators made public on Friday.
That means that an unknown number of possibly flawed parts could have been used to service GM models brought in for repair at dealerships or repair shops after the redesign was made.

A GM spokesman said that no crashes, injuries or deaths have been reported in any of the four older model Chevrolet Malibu, Pontiac Grand Prix and Grand Am, and Oldsmobile Alero that are involved in the issue.

So far this year, GM has recalled nearly 29 million vehicles, including about 14.7 million for ignition switch problems. Its chief executive, Mary Barra, has testified in Washington four times this year, claiming that GM is observing a new culture on consumer safety. Her latest appearance was on Thursday.

Earlier this year, GM informed regulators that one of its top engineers, Ray DeGiorgio, approved a redesigned ignition switch for small cars including the Chevrolet Cobalt but did not change the part number.

GM has admitted that at least 13 people were killed in Cobalt and other small car models with faulty ignition switches, which could cause engines to shut off while driving, leading to a sudden loss of power steering and power brakes and the failure of air bags to deploy in a crash.

A GM spokesman said on Friday DeGiorgio also approved the redesigned ignition switches in the Grand Prix and other models to which no deaths have been linked.

In the case of the Grand Prix, the GM letter to the National Highway Traffic Safety Administration, dated July 16 shows that in 2004, the part number to the redesigned part was not changed.

For the Malibu, Grand Am and Alero, in 2003 a redesigned part was given a new number, but because the older parts were marked for use by service technicians, it is possible that they could have been put into cars brought in for repair, the letter said.

GM spokesman Alan Adler said on Friday that while older parts may have been used to fix ignition switches in cars, "nothing in our data suggests that there is a danger out there."

The Grand Prix, Grand Am, Alero and Malibu were part of a June 30 GM recall that included 7.6 million cars, most of them in the United States, for possibly faulty ignition switches.

DeGiorgio was one of the 15 GM employees pushed out of the company since this year's safety crisis began.

The Grand Prix affected are model years 2004 to 2008, the Malibu 1997 to 2005, the Grand Am 1999 to 2005 and the Alero 1999 to 2004.

(GNN)(Reuters)(AIP)(Reporting by Bernie Woodall; Editing by Mohammad Zargham)

SBP to announce monetary policy today

(#GNN) - #KARACHI: The State Bank of Pakistan (#SBP) to announce its first bi-monthly #monetary #policy of the new fiscal year on Saturday here.
The central bank is expected to keep the current discount rate at 10 percent unchanged, the analysts predict.

Analysts said that the indicators like over $14 billion foreign exchange reserves, appreciation of rupees against dollar by 8 percent from the beginning of the current year and 71 percent reduction in local borrowings of the government during previous fiscal year suggest a cut in current discount rate, but IMF string to keep inflation in control forcing SBP to keep it unchanged at 10 percent.

Besides, some analysts suggest that the central bank in determining the discount rate should adopt a careful attitude in the backdrop of price-hikes of essential commodities during the month of Ramazan

On the other hand, some analysts are of the opinion that since the private sector during previous fiscal year availed Rs348 billion of loans—a positive indicator and if the central bank slashes the discount rate by ½ percent it would help promote the private sector development efforts.(GNN)(Geo)(AIP)

SBP leaves policy rate unchanged at 10 pc

(#GNN) - #Karachi: The #State #Bank of #Pakistan (#SBP) has decided to keep the #policy rate #unchanged at 10 percent.
This was announced by the Governor SBP Ashraf Mahmood Wathra while unveiling the Monetary Policy Statement MPS for the next two months at a press conference held at SBP head office Karachi.

The decision was taken during a meeting of the Central Board of Directors of SBP held under his chairmanship in Karachi Saturday.

Henceforth, the Board has also decided to publish the summary of minutes of monetary policy proceedings of the Board meeting in four weeks.

According to Wathra economic conditions are certainly better at the beginning of FY15 than a year ago but a detailed assessment of the economy indicates that challenges and vulnerabilities remain.

Continuation of prudent policies and reforms are needed to build on positive developments and to achieve protracted stability.

Governor SBP stated that SBP is effectively managing market sentiments by supplementing the monetary policy stance with calibrated liquidity operations in the interbank market, adding that this has contributed in achieving stability in the foreign exchange market and in building foreign exchange reserves.

This has also facilitated the shift in banks investment from T bills to PIBs improving domestic debt maturity profile of the government.

Wathra informed the audience that despite significant injections by SBP appetite for liquidity remained sufficiently high in the market.

It resulted in higher short term interest rates making rupee liquidity more expensive.

This reduced pressure on exchange rate as it discouraged speculative holdings of foreign exchange and made trade financing through foreign currency deposits held by banks more attractive, said Wathra.

He said that a significant reduction in government borrowings from the banking system is contributing towards low inflationary expectations and has provided necessary space to the private sector to borrow from the banking system.

However, persistent energy shortages and deteriorating security conditions hint towards some risks to credit demand.

Governor SBP maintained that sustainability of lower government borrowings from the banking system including SBP is contingent upon further reduction in the fiscal deficit and continuation of external financing, adding that government needs to watch the fiscal position of FY15 i.e. the revenue side cautiously.

Wathra told the audience that the growth in domestic debt during FY14 had decelerated to 14.5 percent which was significantly lower than the average growth of around 27 percent during the last three years.

This bodes well from the point of view of country’s risk perception and could help in attracting investment in the economy.

Governor SBP reminded the audience that the increase in external borrowings since February 2014 had provided a much needed respite and short term stability to the balance of payments position.

These foreign inflows resulted in a capital and financial account surplus of 6.1 billion which comfortably financed the current account deficit of 2.6 billion and led to a significant increase in SBP’s foreign exchange reserves.

By 4th July SBP’s foreign exchange reserves have increased to 9.6 billion.

He said that the increase in SBP’s foreign exchange reserves brought about a shift in sentiments in the foreign exchange market and stabilized the exchange rate Moody’s Investors Service has revised the outlook on Pakistan’s foreign currency government bond rating to stable from negative.

According to Governor, SBP the impetus of positive sentiments together with continuation of IMF program and government’s privatization plan is expected to result in further strengthening of the external position in FY15.

However, sustaining this trend in the medium term especially in the post IMF program years would require additional efforts and reforms.

Governor SBP said that despite challenging security conditions and energy shortages the real GDP grew by 4.1 percent in FY14. However, investment expenditures as a percent of GDP have declined which indicates erosion in economy’s future productive capacity, he added.

Wathra told the audience that the average CPI inflation in FY14 8.6 percent was in single digits for the second consecutive year.

For FY15, the SBP expects average CPI inflation to remain in the range of 7.5 percent to 8.5 percent.

However, international oil price uncertainty and unanticipated price shocks pose risks to the inflation outlook, he concluded. (GNN)(PPI)(AIP)

#Russia to cooperate UN probe in #MH17 crash

(#GNN) - #SYDNEY: Trade #ministers from the world´s leading economies met in #Sydney Saturday for the latest round of #G20 talks, with the crash of #Malaysia #Airlines Flight MH17 threatening to overshadow the summit.
G20 chair Australia has sought to keep the meeting focused on economic growth, but Thursday´s disaster in rebel-held territory in eastern Ukraine put the spotlight on Russia and its possible links to the separatists.

Australia´s Trade Minister Andrew Robb said he met his Russian counterpart Denis Manturov late Friday to press him on whether his country "would or could stop the separatists with their current activities".

"Australia is looking for an unequivocal Russian assurance that they will fully cooperate with an independent and thorough UN investigation and urgently," Robb told broadcaster Sky News Saturday.

"The Russian trade minister did convey their deep condolences and indicate the government would cooperate with ... (a) UN investigation. "They did not give me an assurance that Russia would or could stop the separatists with their current activities.

"Robb said Canberra may consider trade sanctions against Russia as a result of the crash, which killed 298 people, including 28 Australians, subject to how it "responds, cooperates and is proactive in seeking answers".

Australia, along with several other countries, already has imposed sanctions and travel bans on some Russians and Ukrainians.

Mobile services to be suspended in Lahore on Sunday

(#GNN) - #LAHORE: On account of #security reasons, #mobile #phone #services will be #suspended in Lahore on Sunday, June 20. 
 Pillion riding will also be banned on Sunday for 24 hours — on account of Youm-e-Ali.

The ban on pillion riding and the suspension of mobile phone services will begin around 8am — before the start of the rally — and will resume following the end of the rally.

Due to fear of terrorist attacks, mobile phone services will also be suspended in Karachi on June 20, Sunday, from 4am to 11pm.

Sunday marks the 21st of Ramazan and is Youm-e-Ali.(GNN)(Express)(AIP)

Wave of disenchantment: The rulers have taken all #happiness out of #Eid says Rashid

(#GNN) - #LAHORE: Despite suffering load shedding for 15 to 20 hours a day, #consumers have received their June electricity bills inflated up to 120 per cent of the bill they received in the same month last year, Leader of the Opposition in the Punjab Assembly Mahmoodur Rashid said on Friday.
He was talking to journalists in his chambers at the Punjab Assembly on Friday. He said the rulers had taken away all joy of Eid from poor consumers, many of whom had no money left to celebrate.

He said the authorities had added 200 additional units to each household leaving the economically disadvantaged segment of the society baffled as to how they would buy clothes or presents for their children on Eid.

Rashid said it was a criminal offense to spend billions of tax payers’ money on useless projects.

Rashid said in June alone, Rs144 billion was collected as Neelum-Jhelum surcharge, electricity duty, TV fee and GST – a similar amount was collected through over-billing. “And yet we face up to 20 hours of load-shedding each day.” He said Pakistan Muslim League-Nawaz came to power through promises of ending load-shedding, “here we are being robbed on the pretext of imaginary power projects”.

“The truth is that not a single unit of power has been added to the national grid over the last year.” He said Rs500 billion were paid to end the circular debt, Rs57 billion spent on Nandipur Power Project, Rs8 billion on the Guddu Power Plant extension, but all that money had gone down the drain.

He said the government must tell the people why these power plants were shut. He said July had seen the highest ever power shortfall of 10,000 MW. “This should also go into the Guinness Book of World Records.”

He said Justice Khalid Mehmood Khan of the Lahore High Court remarked on July 16 that stock holders were holding the system hostage and had pocketed the Rs5 billion Ramazan subsidy. “Today is the 19th day of fasting and yet one cannot find ghee, wheat flour, sugar or other foodstuff at Utility Stores.”

He said prices of fruits and vegetables had skyrocketed. The rise in prices during Ramazan this year has been more than 40 per cent, he said.

On dynastic politics
Pakistan Tehreek-i-Insaf Vice Chairman Shah Mehmood Qureshi addressed party workers in Rajanpur on Friday. “The long march will be the biggest political demonstration in the history of the country…it will bring an end to dynastic politics from our country,” he said.

Qureshi said the long march would not only seek to topple the PML-N government but also break up all political parties who wanted the system of dynastic politics to continue.

Mehmood has been holding meetings with party workers in south Punjab districts to organise the long march. He said the response from south Punjab was so overwhelming that he expected at least a million people from the area to join the long march.

He said the PTI had reawakened democracy in the country and would also rebuild the people’s trust in the democratic system.

Trust shattered  
While Qureshi was holding a meeting in Rajanpur, the PTI focal leader for Rajanpur and ticket-holder for NA-175 Khawaja Amir Shareef Koreja announced his resignation from the party and joined the Pakistan Awami Tehreek. Koreja announced the decision at a press conference in Lahore.

He said he had become disenchanted with the PTI after its lukewarm response to the Model Town killings.

Published in GNN, Tribune, AIP, July 19th, 2014.

Blast in Khuzdar leaves 2 dead, 10 injured

(#GNN) - #QUETTA: Two #people were killed and 10 others were injured in an #explosion on #Jinnah Road in #Khuzdar, #Balochistan on Saturday.
The injured were taken to a nearby hospital for medical treatment where hospital sources said six of the wounded were in critical condition.

According to reports, a security forces vehicle was the target of the attack. Two shops, motorcycles and the targeted vehicle were damaged in the explosion.

Police and security forces have cordoned off the area.(GNN) (Express)(AIP)

Unending campaign: Drone strike kills 11 suspected militants in North Waziristan

(GNN) - MIRAMSHAH: A US drone strike targeting a compound early on Saturday morning killed eleven suspected militants in Madakhel Tehsil in Data Khel, North Waziristan.
 “The drone fired eight missiles on the compound at around 2:00am (2100 GMT) on Saturday killing eleven members of the Punjabi faction of the Pakistani Taliban,” a senior security official in the region told AFP.

The official said the dead included two “important” commanders of the Tehreek-e-Taliban Pakistan, but he refused to reveal their identities. An official had earlier given a lower death toll of eight dead.

The strike took place in the Mada Khel suburb of Data Khel, a town that lies around 22 miles (36 kilometres) west of Miramshah. The army’s operation against the TTP, Zarb-e-Azb is still continuing in North Waziristan.

The area has been used as a hideout for militants of all stripes – including al Qaeda and TTP as well as foreign fighters such as Uzbeks and Chinese Uighurs.

The strike comes two days after another strike in which at least 20 people were killed in Data Khel.

US drone strikes have picked up since the military launched its offensive in Waziristan in mid-June with at least four strikes reported since June 12.

The army says more than 400 militants and 25 soldiers have been killed in the operation so far, and Miramshah town close to being declared as cleared. However, the area remains off-limits to journalists, making it impossible to independently verify the number and identity the dead.(GNN)(tribune)(AIP)