Friday, June 26, 2009

[RED DEMOCRATICA] BOLETIN : CFR.org Daily Brief, June 26, 2009



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June 26, 2009

EXECUTIVE SUMMARY

- Japan price data prompts concern; U.S. banks fear regulation will hurt profits.
- U.S. responds to Ahmadinejad's statements, says he wants to blame Washington.
- Latest in a string of Iraq bombings kills 15 in Baghdad market.
- Kashmir blast as senior U.S. official tours Pakistan, India.


Top of the Agenda: Economic Questions

Japan today announced the steepest year-on-year decline in consumer prices since the country started keeping records, signaling the country may face a new bout of economically destructive deflation. The country's main index for inflation dropped 1.1 percent in the year through May (LAT). http://m1e.net/c?101077382-wMUkgwMs9HBhU%404377276-Tb12rxzBjYHH2 Reuters says the new data puts the Bank of Japan in a tight spot ahead of the September expiration of some of the measures it had implemented to fight the country's economic doldrums, many of which now seem unlikely to be renewed. http://m1e.net/c?101077382-AF1P0m.8uPVHQ%404377277-e3FCPLgnOgWIQ At the same time, the article says, further quantitative easing--a normal step to fight deflation--also seems unlikely, given that Japanese interest rates are already quite low and that the country's economy is expected to emerge from recession later this year.

Meanwhile, the Wall Street Journal reports U.S. banks are worrying that President Obama's financial regulation plan will further dampen their already flagging profits. http://m1e.net/c?101077382-CPye6PGWtYUWc%404377278-WI6z5jJ8fgKWI The major concern, the article says, is the regulatory focus on "plain-vanilla guidelines" for mortgage and credit card offerings.

Bloomberg reports China's central bank's call for the creation of a "super-sovereign" currency has caused the U.S. dollar to plummet. http://m1e.net/c?101077382-PZQJCQa8DtJVc%404377279-O38fYpO39RSpE

MIDEAST: U.S. Responds to Ahmadinejad

The White House responded to criticisms from Iran's President Mahmoud Ahmadinejad, saying he is trying to use Washington as a scapegoat for Iran's post-election unrest (BBC). http://m1e.net/c?101077382-2oYFVwx.MrF3o%404377280-lTutshO91SkxU

The Washington Post reports Iran's political turmoil has prompted "soul-searching" across the Middle East region. http://m1e.net/c?101077382-D7YStjBCDRh9c%404377281-deXIgGkItAVzw

CFR's Isobel Coleman discusses the role women have played in Iran's demonstrations. http://m1e.net/c?101077382-7OcidUzoCT/qo%404377282-hBUzSZW672P6s

IRAQ: The latest in a series of deadly bomb blasts in Iraq over the past few days killed at least fifteen people in a Baghdad market (al-Jazeera). http://m1e.net/c?101077382-P8I8BcbYg1qGM%404377283-bmo4i4B/U2O3I Two days ago, a similar bombing killed seventy people.

PACIFIC RIM: S. Korea-N. Korea

Seoul announced it will begin an effort to ramp up its anti-missile defense capabilities through a long-term military reform plan (Yonhap). http://m1e.net/c?101077382-UJFiwGYKMT2jA%404377284-39UOEULQF3Ww%2e

In a new podcast, CFR's Kara McDonald says the UN Security Council must be prepared to levy stiffer sanctions against Pyongyang. http://m1e.net/c?101077382-QswDUpWTV9fjE%404377285-mq2m8.PpwUAZg

S.KOREA: Police in South Korea raided a factory owned by a beleaguered South Korean automaker to disband unruly worker protests that had broken out over a layoff plan the company had announced (Yonhap). http://m1e.net/c?101077382-m1YNgdA3doavs%404377286-DpnAPbS.3NE5w


SOUTH & CENTRAL ASIA: Kashmir Blast

Two Pakistani troops were killed in a suicide attack in the Pakistani-administered part of the disputed Kashmir region. (al-Jazeera) http://m1e.net/c?101077382-IrODgSQiIlLyc%404377287-oxY4Qo1nk1o6E

U.S.-INDIA: President Obama's National Security adviser, Gen. James Jones, is meeting with Indian leaders today on security issues as the final stage of a regional tour that included visits to Pakistan and Afghanistan (BBC). http://m1e.net/c?101077382-KzO2KL.SupU1I%404377288-QBnxUiNAPanvU

AFRICA: Nigeria Amnesty Deal

The Financial Times examines Nigerian President Umaru Yar'Adua's new plan to offer amnesty to militants in the volatile and oil-rich Niger Delta region, which Yar'Adua hopes will convince militant leaders to return to civilian life. http://m1e.net/c?101077382-YdonmA/ZnWtcI%404377289-jpKdCjfy/eDk6

The BBC reports a recent attack might mar the amnesty discussions. http://m1e.net/c?101077382-FSjkMnB1CYkKc%404377290-XjUDN73Pz.LY2

ZIMBABWE: Also from the FT, reports of human rights abuses at a diamond field in Zimbabwe. http://m1e.net/c?101077382-QOPA69rAbxzZA%404377291-PLn/q0fxVb.fs


AMERICAS: U.S.-Venezuela Ties

Washington and Caracas have resumed full diplomatic ties, a move the Los Angeles Times says represents President Obama's desire for better relations with Latin America and Venezuelan President Hugo Chavez's need to improve his image. http://m1e.net/c?101077382-WSWQ28YjAqLTI%404377292-vS2BzrfrwS8qg

CLIMATE: House Democratic leaders are scrambling to find enough votes to pass their climate bill, ahead of the expected floor vote Friday. http://m1e.net/c?101077382-Xuj4T39VnjPGY%404377293-dzALCQKltF6ug A Washington Post columnist looks at how the U.S. farm lobby is approaching the climate bill. http://m1e.net/c?101077382-2Fch25jBOm2g2%404377294-KI2ngl/LMsi8%2e


EUROPE: Russia Considers Bailout

The Financial Times reports Russia is considering new bank bailout measures that would go further than the steps taken thus far in the United States. http://m1e.net/c?101077382-tE2xIjaMvDstg%404377295-weyoGMnbJ9Z/Q

TURKEY-EU: Turkey's Prime Minister Recep Tayyip Erdogan is in Brussels for talks on reviving Turkey's stalled effort to gain entry to the European Union (France24). http://m1e.net/c?101077382-346OTA04Ht6P2%404377296-YoDbA39G9sj.k

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