GLOBAL MARKET HIGHLIGHTS
G8 to Ignore Pressing Global Issues 05-30-03 (Yahoo) They point out that it will, in fact, fail to address some of the pressing issues of environment, development and health facing the global economy. The meeting, which will bring together the heads of state and government of Britain, France, Germany, Italy, the United States, Canada, Japan and Russia, was expected to address all these issues. However, negotiations prior to the summit have downgraded the agenda, which now will be focused almost exclusively on the so-called war on international terrorism, the observers said. 
What is the G8 good for? 05-30-03 (atimes.com) The Group of Eight (G8) is not supposed to behave as the government of the world. But as a permanent world institution grouping the leaders of major powers (but where is China?) in a sort of shareholder's syndicate of the world economy, it increasingly behaves like it is. The 2003 G8 summit in Evian, France, starting this Sunday, is also signaling something like the death certificate of the United Nations Security Council. With the G8, via hosting French President Jacques Chirac extending invitations to the heads of state of China, India, Brazil, Mexico and South Africa, Evian aligns the five permanent, veto-power-wielding members of the Security Council (the US, China, Russia, France and Britain) plus four big economies with no veto power (Japan, Germany, Italy, Canada), plus major regional powers. The G8 (initially G5) has existed since 1975, a French initiative by then-president Valery Giscard d'Estaing (who today is in charge of drafting the European constitution). He initially invited the US, Britain, Germany and Japan. Then there were seven with the addition of Italy and Canada, and finally Russia in 1997 made it eight. The president of the European Commission (currently former Italian premier Romano Prodi) is a permanent guest. 
G-8 summit: Conflicting expectations 05-30-03 (miami.com) The G-8 is actually a French creation. In 1975 President Valery Giscard d'Estaing invited the leaders of Britain, Germany, Italy, Japan and the United States to discuss world issues. This became an annual meeting, which expanded to include Canada, Russia and now the European Union president. The G-8 cannot mandate, legislate or force decisions upon its member or nonmembers. But it can send an important signal that these leaders can find common ground on the global issues that hamper democratization, economic growth and social progress. According to French President Jacques Chirac, the meeting is ``an opportunity to show that nations can and will get along and act together for the good of humanity.'' 
U.N. Urges World to Drop Trade Barriers 05-30-03 (Yahoo) He called on the Group of Eight countries to keep the pledge they made for the first time at the start of a new round of global trade negotiations in Doha, Qatar, in 2001 to treat the needs and interests of developing countries as a priority. 
Enlarged dialogue may fall on deaf ears 05-30-03 (Financial Times) However much French President Jacques Chirac seeks to push aside the recent clash with the US over Iraq, those differences have cast a shadow over the G8 summit he is hosting this Sunday in Evian. The agenda has been carefully prepared but the animosity between Washington and Paris - especially the US administration's unretracted threat of sanctions against France - risks highlighting differences on a range of other issues. This could begin with the new touch Mr Chirac has brought as host to this year's summit by inviting 22 leaders representing a cross-section of the world's developing countries. 
Bush Says Vive La France on Road to G8 Summit 05-30-03 (Yahoo) Bush, interviewed by the French daily Le Figaro ahead of the June 1-3 Group of Eight summit in Evian, France, also said Paris needed to show it was ready to cooperate with Washington. "Evian will not be a summit of confrontation. On this trip I am determined to work with France and French leaders," Bush was quoted as saying. "It will be a pleasure to talk with Jacques Chirac," he said, adding in French: "Vive la France" (Long Live France). 
Feds shouldnt pick up tab for spendthrift states 05-30-03 (twincities.com) Lost in the fight over President Bush's tax cut were any questions about the wisdom of bailing states out of the fiscal holes that they largely dug for themselves. Yes, part of the deficits from Austin to Albany stem from homeland-security costs ordered by Congress. Mostly, though, the record red ink results from state lawmakers spending too much — even more, proportionally, than Congress — during the good times. 

 LATIN AMERICA
Wasting Away in Mexico 05-30-03 (businessweek.com) By May 5, China and its SARS epidemic were front-page news around the world. China made page one in Mexico, too -- but for a different reason. "'Made in China' is gaining on 'Hecho en Mexico,"' trumpeted Reforma, a leading daily. The article warned that the torrent of cheap Chinese products into Mexico was increasing. The ultimate affront: Statuettes of the beloved Virgin of Guadalupe now carried the Made in China sticker. SARS is having a huge economic impact on China, with consumers shunning stores and restaurants, analysts slashing growth projections, and investors wondering if exports from China's coastal factories will start to flag. Among those wondering: managers in Mexico's vast manufacturing sector, which churns out everything from towels to autos, both for the local market and the U.S. Mexican manufacturing has been under slow, steady assault from the Chinese competition, and some in Mexico hoped that SARS would give Mexico a reprieve. 
Brazil Bans Canada Beef Imports on Mad Cow Fears 05-30-03 (Yahoo) In a statement late Tuesday, the ministry said the ban included Canadian meat, embryos and blood products. But it added that bull semen, milk and dairy products were exempt. Since 1997, Brazil has imported 3,212 Canadian breeding bulls for a total value of $3.2 million, the ministry said. "Brazil doesn't import Canadian beef," a ministry official said, adding that it was uncertain how long the ban would remain in force. 
At Least 22 Indians Killed in Ecuador Jungle Clash 05-30-03 (Yahoo) Tagaeri Indians living in the jungle, about 94 miles southeast of Quito, were killed on Tuesday by members of another Indian group, apparently in a revenge attack, after a member of their group was slain in an attempted raid on Tagaeri lands, an indigenous leader said. The Tagaeri live in isolation in a protected area where logging and oil activity is prohibited, and an indigenous group said the dispute dated back to tensions over pressure from loggers to be allowed into the area. 
Argentine military reshaped 05-30-03 (BBC) General Ricardo Brinzoni has been replaced by General Roberto Bendini - who comes from President Nestor Kirchner's home province and is a personal friend. General Brinzoni - who had been in the post for over three years - said his dismissal was "inexplicable" and warned of a return of "political intrigues" not seen since the end of military rule two decades ago. More than half of the military's top ranks - including heads of the navy, air force and joint chief of staff - are reportedly being purged in the biggest overhaul in 20 years. 
Commanders Purged in Argentina 05-30-03 (Washington Post) President Nestor Kirchner today forced the retirement of the military's three top commanders as part of a major overhaul of Argentina's armed forces. Kirchner replaced the army chief of staff, Gen. Ricardo Brinzoni, with Brig. Gen. Roberto Bendini, a commander of an army brigade in Kirchner's home province of Santa Cruz. He also named replacements for Brig. Gen. Walter Barbero, head of Argentina's air force, and Adm. Joaquin Stella, the Navy's top commander. 
Venezuela Govt., Wary Foes Sign Pact to End Battles 05-30-03 (Yahoo) Venezuela's government and opposition signed a pact on Thursday seeking to end their political conflict and smooth the way to a referendum on Hugo Chavez's presidency, but the road to a vote seemed cluttered with hurdles. 
Venezuela President Chavez Applauds Deal On Referendum 05-30-03 (Yahoo) "Today, May 29, we're happy there's an agreement ... it is a tremendous success for the country," Chavez said in a televised speech, minutes after government and opposition representatives signed the deal after six months of negotiations sponsored by the Organization of American States. Government and opposition forces have been engaged in a fierce power struggle that brought about a short-lived coup in April last year and a crippling general strike which paralyzed the nation's vital oil industry from December until February. 

 RUSSIA
Putins emptied Saint Petersburg greets world leaders 05-30-03 (Yahoo) The 300th anniversary of his native city -- attended by more than 40 heads of state and government -- is indirectly helping boost Putin's prestige among voters as he flaunts his fresh style and Russia's potential power after a decade of decline. Putin was flanked by his wife Lyudmila as he walked confidently, draped in a flowing black coat, down the ramp from the Kremlin plane. 

 ASIA
A Philippine Foothold in Iraq 05-30-03 (businessweek.com) Roberto Romulo, a former Philippines Foreign Secretary, is spearheading his country's efforts to see its skilled workers play a major role in the Iraqi reconstruction effort. In mid-April, Romulo was appointed by President Gloria Macapagal Arroyo to chair the Public-Private Task Force to Coordinate Philippines' Participation in the Reconstruction of Iraq. That's a mouthful, but Romulo has a big job ahead of him: His group hopes to open an office in Kuwait City by the end of June in an effort to help drum up business for Philippine companies and skilled workers. At a minimum, Romulo expects to see 30,000 skilled Filipino workers involved in Iraqi reconstruction. 
Philippines Tropical Storm Kills 25 05-30-03 (Yahoo) At least 12 people, mostly fishermen, remain missing and at least seven people have been injured since the storm hit the main northern island of Luzon on Sunday, the National Disaster Coordinating Council reported. 
US encourages flow of money to Philippines 05-30-03 (Financial Times) John Taylor, US Treasury under secretary, and Jose Isidro Camacho, Philippine finance secretary, signed a memo of intent last week to strengthen remittance channels to the Philippines. "[Remittances] are a major driver of economic growth," said Mr Camacho at a press conference in New York. According to government statistics, more than 7m overseas Filipino workers sent $6.4bn in remittances to the Philippines in 2001. Of this, approximately 70 per cent was sent through banks and wire transfer services, with fees reaching as high as 15 per cent. Mr Camacho said new efforts to reduce commission fees would save Filipinos an estimated $300m each year. 
Philippines Bans Beef Imports From Canada 05-30-03 (Yahoo) Agriculture Minister Luis Lorenzo said the ban is necessary to prevent the possible entry into the country of mad cow disease. Mad cow disease is believed to cause a brain-wasting disease in humans known as Creutzfled-Jakob disease. The Philippines imported 767,222 kilograms of cattle parts from Canada in 2002. From Jan. 1 to May 5 this year, the country imported 474,709 kg of beef parts from Canada. 

 AFRICA
Report details anti-gay abuse in Africa 05-30-03 (Yahoo) Government-sanctioned harassment and violence against GLBT people in Southern Africa is pervasive, according to a joint report released on Wednesday by two human rights groups. 
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
Oil Prices Surge as U.S. Gas Stocks Drop 05-30-03 (Yahoo) Prices rose as U.S. government figures on Thursday showed weekly gasoline stocks were down 3.4 million barrels last week, pulling stocks around 6 percent below last year. Gasoline inventories are crucial because in summer U.S. gasoline demand peaks, accounting for 12 percent of global energy consumption as vacationers hit the roads. 
Oil Prices Weaker on Iraqi Export Nerves 05-30-03 (Yahoo) International benchmark Brent crude oil fell 12 cents to $25.47 a barrel, having lost a hefty 74 cents on Wednesday. U.S. crude futures fell 19 cents to $28.39, having touched a five-week high near $30 on Tuesday. "Iraqi production does seem to have recovered to some extent and there is some nervousness ahead of OPEC's meeting in Qatar on June 11 -- but I think they will take a pragmatic decision and accommodate higher Iraqi production," said Steve Turner of Commerzbank. 
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. 
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. 
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.