| Populism may hit India's deficit repair plans
India's success in trimming its fiscal deficit has surprised even itself but progress in the next two years will be harder as dizzying growth slows and pressure for populist spending rises before elections. The not so good news in the deficit numbers is that the government relies on a higher tax collection rather than spending reforms to narrow the shortfall. "So far it is higher revenues that have helped the government. They haven't shown any effort to compress spending," said A Prasanna, an analyst with Mumbai-based ICICI Securities. "Right now, you are at the peak of the cycle and when the measures taken by the central bank cool the economy, then there will be pressure on the deficit." Hitting a legislated federal deficit target of 3.0 per cent and wiping out the revenue deficit by 2009 will depend how the government copes with higher interest rates and pressure to spend ahead of elections in two years.
Bush Calls on Iranians to Reject Government
President Bush today called on the Iranian people to reject their hard-line government, saying they "can do better" and need not be isolated by a leadership that destabilizes its neighbors and pursues a suspected nuclear weapons program. In a White House news conference before leaving for vacation, Bush also had cautionary words for U.S. allies in the region: Iraqi Prime Minister Nouri al-Maliki and Pakistani President Pervez Musharraf. He said Maliki, who is visiting Tehran, should realize that Iran is playing a "very troubling" role and that he would need to "have a heart to heart" talk with the Iraqi leader if he believed the Iranians were being constructive. Bush said he expects the embattled Musharraf to take "swift action" against Taliban and al-Qaeda leaders if there is "actionable intelligence" on their whereabouts in Pakistan's rugged tribal areas, and he called on the Pakistani general to hold a "free and fair election." .
Ford surprises Wall Street with $750M second-quarter profit
DEARBORN, Mich. -- Ford Motor Co. surprised Wall Street Thursday with second-quarter earnings of $750 million, its first profitable quarter in two years. The company also confirmed it is exploring the sale of its Jaguar and Land Rover subsidiaries and said its U.S. market share rose during the quarter. The profit of 31 cents per share compares with a net loss of $317 million, or 17 cents per share, in the same quarter of last year. The company attributed the gains to significant year-over-year improvement in all of its automotive operations, and to cost cuts due to restructuring and positive special items that totaled $443 million. That includes a $206 million gain related to sale of its Aston Martin unit. Even its struggling North American division showed progress.
No Asbestos Threat At NY Blast Site
No asbestos was found in the air near the site of Wednesday's towering steam explosion in New York City that killed at least one person. Health authorities reported finding asbestos on the ground near the Manhattan explosion site, but not in the air. As a result, Mayor Michael Bloomberg said the public will not suffer any long-term health effects from the blast that happened near Grand Central Station. The blast killed one person and injured 16 others when it shot a tower of steam into the air during Wednesday's evening rush hour. New York Mayor Michael Bloomberg said the explosion was a breakdown of the Big Apple's infrastructure. "What appears to have happened is a steam pipe, 24 inches in diameter installed in 1924 burst," said Bloomberg. “It may have burst from cold water from the rain, it may have burst because of a water main break that, but in any case, that's what you've seen." The explosion disrupted subway service and shot steam and debris into the air.
Teacher charged in sex abuse
A second-year South River High School teacher has been charged with sexually abusing one of his students. Christopher Thomas Newman, 31, of 7956 Castle Dell in Glen Burnie, was arrested Thursday and charged with two counts of sex abuse of a minor and two counts of fourth-degree sex offense. He was released on $10,000 bond that afternoon. Bob Mosier, school system spokesman, said Mr. Newman was removed from the classroom in March when the allegations first arose. "His employment with (Anne Arundel County Public Schools) ended the last day of school, June 15," he said. Neither school nor police officials announced the arrest. The Capital was alerted by an anonymous tipster and was able to confirm the charges this morning at the courthouse. According to charging documents, Mr.
|
