GLOBAL MARKET HIGHLIGHTS
G-8 Summit: Photo Op, Or Serious? 05-29-03 (Washington Post) When leaders of the major industrial countries gather in Evian, France, this weekend, they'll face a stark choice. The so-called G-8 leaders can continue their recent practice of avoiding self-criticism, patting themselves on the back for a few recent actions and declaring the economy is on the mend -- thereby confirming that these gatherings are just expensive photo ops. 
Globalization opens door to new dangers 05-29-03 (USA Today) When leaders of the major industrial countries gather in Evian, France, this weekend, they'll face a stark choice. The so-called G-8 leaders can continue their recent practice of avoiding self-criticism, patting themselves on the back for a few recent actions and declaring the economy is on the mend -- thereby confirming that these gatherings are just expensive photo ops. 
Demonstrators raise their colors ahead of G8 summit 05-29-03 (Yahoo) Demonstrators began arriving to protest at this week's summit of the world's industrialized nations in Evian, as lawyers and non-governmental organizations stood by to help in case demonstrations degenerate into violence. 
Bush and the economy 05-29-03 (washtimes.com) To say that President Bush was dealt a bad hand on the economy is a gross understatement. Although it was not known at the time of his inauguration in January 2001, the economy actually began contracting during that year's first quarter — and then continued to decline for the next two. 
Economy Grows at Revised 1.9% Rate; Jobless Claims Fall 05-29-03 (Yahoo) The U.S. economy grew by a slightly faster pace than last estimated during the first three months of the year as consumers spent at a stronger pace than previously thought. Separately, the number of workers filing first-time applications for unemployment benefits declined last week, though sluggish economic growth kept the jobs market depressed. 
Businesses open wallets for new tech gear 05-29-03 (Yahoo) The latest: 30% of 1,393 small firms surveyed last month plan to buy computers, machinery and other equipment. That's up from 27% in March -- and the first monthly rise since December, says the National Federation of Independent Business trade group. Moreover, bigger-firm executives plan to spend 4.2% more on tech in the next 12 months vs. the previous 12, says a survey by CIO Magazine. Researcher Aberdeen Group predicts a 3.6% jump in spending this year from last. While that is below the double-digit growth of the 1990s, it's up from recent years. Wall Street has taken notice, too. The tech-packed Nasdaq composite index is up 22.4%, outpacing the 16.7% gain in the Dow Jones industrials since a rally started March 11. 
Feds Parry: Economy Still in Soft Patch 05-29-03 (Yahoo) In a signal that Parry may support further cuts in interest rates to spur the recovery, he said the Fed still has room to lower rates in spite of forecasts of stronger growth because the pace of growth will not be fast enough to use up all the spare capacity in the economy. "At this point, it appears that the economy is still mired in the soft patch we hit last fall," Parry told a lunch organized by the Nevada Development Authority. 

 LATIN AMERICA
Brazil to Probe Energy Bid Allegations 05-29-03 (Yahoo) The alleged agreement allowed AES to buy Brazil's Eletropaulo for the minimum bid of $1.78 billion, according to a report in the Financial Times of London. Enron agreed not to bid for the utility in return for other potentially lucrative energy deals with AES, an investigation by the newspaper found. In response to the report, Brazil has decided to launch an inquiry into the allegations and whether the utility could have fetched a higher price, said Dilma Rousseff, the country's mines and energy minister. 
Venezuela Would Comply With an OPEC Cut 05-29-03 (Yahoo) Venezuelan officials had previously indicated the country would continue producing more than 3 million barrels a day this year to recover losses stemming from a two-month strike, raising doubts about the South American country's commitment to OPEC quotas. Venezuela's OPEC current quota is 2.81 million barrels a day but will rise to 2.92 million barrels a day in June. Rodriguez said Venezuela's production was 3.3 million barrels a day. But industry sources say it's much lower. Venezuela lost an estimated $6 billion during the opposition-organized general strike, which collapsed in February without achieving its goal of ousting President Hugo Chavez. The stoppage temporarily paralyzed the world's No. 5 oil producer. 
New Argentina President Shakes Up Armed Forces 05-29-03 (Yahoo) New President Nestor Kirchner overhauled Argentina's top military brass on Wednesday in what could lead to the biggest shake-up in the armed forces since the end of dictatorship two decades ago. In a move that angered the army, Kirchner named a trusted general from his home province as top commander and pushed three armed forces heads into retirement. Twenty-four other officers, two-thirds of all military generals, could also soon go. 
New Argentine Pres. Pushes Military Brass into Retirement 05-29-03 (Yahoo) However, people close to Kirchner, who took office Sunday, said off the record that the move was designed to purge the armed forces of human rights violators. The president's decision, which was criticized in military circles but praised by human rights groups, will lead to the retirement of 27 generals, 13 admirals and 12 brigadier-generals, including the top commanders of the three armed forces. 
U.S. Sets Date to Sign Free-Trade Agreement With Chile 05-29-03 (Washington Post) The Bush administration announced plans yesterday to sign the U.S.-Chile free-trade agreement on June 6, ending its diplomatic cold-shoulder treatment of the South American nation for failing to support the war in Iraq. The planned ceremony would come exactly one month after the signing of the U.S.-Singapore free-trade agreement. Although the negotiations on the U.S.-Chile deal were finalized shortly before the U.S.-Singapore accord late last year, administration officials gave priority to Singapore because it was a member of the "coalition of the willing" backing the attack on Saddam Hussein's regime. 
Colombias War Creeps Over Border Into Venezuela 05-29-03 (Yahoo) There were red traffic cones on the road and the armed men guarding it wore camouflage uniforms that seemed similar to those used by Venezuela's National Guard. But the Venezuelan bank executive making his daily early morning drive to work in western Zulia state had the fright of his life when the four men pointed their automatic rifles at him and ordered him out of the car. 
Venezuela Govt, Opposition to Sign Deal 05-29-03 (Yahoo) Venezuela's government and opposition will sign an agreement on Thursday on a plan to hold a referendum on President Hugo Chavez's rule, the chief mediator of negotiations announced Tuesday. The agreement, brokered by the Organization of American States, ends six months of formal talks between the two sides aimed at restoring stability to Venezuela. It also addresses possible votes on the terms of other elected officials. 

 ASIA
China going to Evian but does not aspire to G8 membership 05-28-03 (Yahoo) President Hu Jintao will be among an enlarged group of world leaders gathering in the French city of Evian on June 1, but he will not be lobbying for a permanent seat at the body, officials said. "In terms of the level of development, China is not qualified for membership of the G8," Vice Foreign Minister Liu Guchang told a briefing in Beijing. "However, we attach importance to its role." Instead, China is likely to use its presence in Evian for a round of traditional bilateral diplomacy. 

 AFRICA
Trucks Threaten to Overtake Camel Caravans in Sahara Salt Trade 05-29-03 (nationalgeographic.com) Since the Middle Ages, camel caravans have navigated north from the fabled city of Timbuktu, in present-day Mali, West Africa, in search of the gold of the Sahara desert—salt. Traveling across the windswept sand dunes, caravans often numbering more than hundred have journeyed to the salt mines of Taudenni, 500 miles (800 kilometers) north of Timbuktu. A human necessity and source of commerce, salt has been in high demand in West Africa since the 12th century when it was first found in the sand dunes of the desert. 

 OIL PRICES
OPECs Silva: May Consider Cutting Output at June Meeting 05-29-03 (Yahoo) The Organization of Petroleum Exporting Countries may, at its June 11 meeting, consider reducing output to keep world oil prices within its target range of $22 a barrel to $28 a barrel, the group's Secretary General, Alvaro Silva, said Wednesday. 

Oil at 5-Week Highs on Tight U.S. Stocks 05-28-03 (Yahoo) U.S. light crude rose 19 cents to $29.35 a barrel, after hitting a high of $29.63, the highest level since in over a month. London benchmark Brent rose 10 cents to $26.34 a barrel. Prices rose on a renewed pledge from Saudi Arabia, the world's top oil exporter, that beginning in June it would abide by lower OPEC quota levels agreed to last month. 
Oil Rises on U.S. Stock Worry 05-28-03 (Yahoo) The inventories have come into sharp focus as the Memorial day holiday last weekend marks the start of the U.S. driving season when Americans take to the roads on vacation. U.S. gasoline consumption in the summer accounts for 12 percent of global energy demand during the period. "There were all these expectations of a wall of crude which was supposed to arrive and resolve all the stock problems but that didn't seem to happen," said John Waterlow, analyst with Wood Mackenzie in Edinburgh.