Saturday, April 4, 2009

Home Business & Finance Markets U.S. U.K. Europe Asia Markets News Hot Stocks Bonds News Gainers & Losers Most Actives Indices Calendars Deals Small

* EU finance ministers back reform of financial supervision

* Britain against loss of supervisory sovereignty

* Commission to draft outline proposals by mid-May

* EU's McCreevy said tough talks lie ahead

(Adds news conference, Steinbrueck)

By Huw Jones and Anna Willard

PRAGUE, April 4 (Reuters) - Britain clashed with its European Union partners on Saturday over an ambitious reform of financial supervision that would erode its sovereignty in regulating the bloc's biggest financial centre.

The UK is fiercely protective of its City of London financial sector which is a major tax contributor, but France and Germany want stronger supervision of large financial institutions operating across EU borders to prevent a future banking crisis that could damage the 27-nation bloc.

"We agreed we have to reinforce the European supervisory structure but there will still be a very demanding discussion on the final model to be adopted," said Miroslav Kalousek, finance minister for the Czech EU presidency.

Britain was largely isolated because of its two fundamental reservations over reform while the bulk of member states said they wanted to push ahead based on a plan from former Bank of France governor Jacques De Larosiere.

There is no sign of Britain being outvoted for now.

"We need to find a common front, a common solution, because we cannot leave Britain outside the system. London plays too important a role in the financial arena to be left to one side," French Finance Minister, Christine Lagarde told reporters.

TWO TIER

De Larosiere has proposed a two-level approach that would curb national sovereignty by creating a new pan-EU council chaired by the European Central Bank to monitor system-wide risk and plug a big gap in the current framework.

The pan-EU risk council could formally ask the bloc's finance ministers to take action against a member state whose response to a risk warning from the council is inadequate.

"We are fully in support of the macro prudential body but we don't believe that it should necessarily always be chaired by the president of the ECB," a British official said.
(Reuters)

US believers going green, hold media fast for Lent

WASHINGTON (AFP) - From giving up their cars to abandoning their Facebook pages, many US Christians are being called on to help reduce global warming and turn their backs on Internet distractions over Lent.

"It's an insult to God, it's a sin to spoil the environment, to hurt creation," said Episcopalian pastor Reverend Sally Bingham, who is coordinating "The Regeneration Project," an interfaith group of some 4,000 congregations looking for a religious response to global warming.

During Lent, which began this year on February 25 and will end on April 11 the day before Easter, Christians are called to observe sacrifice and penance marking the time Jesus endured temptation when he wandered for 40 days in the desert.

The idea of a "green" Lent was launched last year by two British Anglican bishops, who called for a "carbon fast," Bingham told AFP.

"We sent an email to the 30,000 people on our mailing list and we suggested tips to try to be as environmentally friendly as you can be," she said.

Among the tips: giving up your car, turning down the heat or buying local.

"This year, I gave up meat. Last year, I turned off my heat. I had to wear a ski parka inside my house. My children would not visit, they thought I'd gone crazy," Bingham said.

Another Catholic group, the St Paul Newman Center in Fresno, California, is organizing a "Lent program on global warming."

"Lent is a time we focus on how we can really connect to God's presence in our life and do something that is sacrificial. For us, it's a look at how we care for the environment while sacrificing some comforts for ourselves," said Mary Hetherington, who helps teach the program.

©AFP/File / Francois Nascimbeni

Reims cathedral standing in darkness after its spotlights were switched off for 5 minutes

The courses promote a "low-carbon diet" to reduce carbon emissions by 5,000 pounds (2,268 kilograms) in 40 days.

Among the lessons: dry your clothes on a clothesline instead of in a dryer, thus saving the equivalent of 100 pounds (45 kilograms) of carbon emissions.

"Try a media fast," suggests The Regeneration Project. "It can be very rewarding to turn off TV, computers and radios a few nights a week and sit down to a board game with your family."

An Italian bishop in Modena has called for giving up texting during Lent in order to "detoxify from the virtual world and become one again."

Across American universities, students are also giving up social networking websites like Facebook.

"The fundamental idea is to say if something is a distraction from prayer and fasting then to the extent possible, it should be given up," explained Paul Griffiths, a professor in Catholic theology at Duke Divinity School.

"It's not a sin, it's a distraction," he told AFP, adding that cyber asceticism is part of the traditions of the Catholic church, even though the Vatican has a YouTube channel and a website in eight languages.

The online discussion group "Give up Facebook for Lent" gives tips on how to avoid going online without missing virtual visits by "friends" on the 75 million-strong social networking website.

Nola Bozeman, a 42-year-old housewife in Apex, North Carolina, used to log on to Facebook every morning.

"It was becoming an obsession," she acknowledged. But she has now decided to deprive herself of the Internet.

"I thought if I spent half the amount of time I spend on Facebook in prayer or service, it would draw me closer to God."
(AFP)

Button storms to F1 pole position in Malaysia

SEPANG, Malaysia (AFP) - Jenson Button pushed his Brawn GP to a second successive pole position on Saturday, topping the times during qualifying for the Malaysian Grand Prix.

The Brit swept around the 5.5 kilometre (3.4 mile) Sepang circuit in one minute 35.181 seconds ahead of Toyota's Jarno Trulli (1:35.273) to burn off his rivals in an eventful hour-long qualifying.

It was his second straight pole after Australia last weekend which he went on to win in Brawn's maiden race, and only the fifth in his nine years as a Formula One driver.

But while Button was ecstatic, there was despair for last year's pole sitter Felipe Massa, who only managed 16th in his Ferrari during hot and humid, but dry, conditions.

And McLaren's miserable weekend continued with world champion Lewis Hamilton starting from 12th on the grid and his teammate Heikki Kovalainen 14th.

Third fastest was Sebastien Vettel in his Red Bull but he is carrying a 10-place grid penalty from the Australian Grand Prix after his collision there with Robert Kubica and so lines up Sunday in 13th.

Button's teammate Rubens Barrichello was fourth quickest but he too has a grid penalty - five places for changing his gearbox - so is relegated to ninth.

Therefore, Timo Glock in the other Toyota will be third alongside Nico Rosberg in his Williams.

Ferrari's Kimi Raikkonen, last year's winner, is behind them alongside another former world champion, Fernando Alonso in his Renault.

"It is not easy to get one pole position but to have two on the trot, I've never done that before," Button said after raising the bar on his final flying lap.

"It shows that the car works on different circuits in all conditions. On Saturday we struggled a bit with the balance of the car and it was difficult but we made changes overnight and it improved a lot.

"I feel very comfortable in the car and I'm excited about Sunday."

©AFP / Roslan Rahman

Formula one driver Jenson Button of Brawn GP

Italy's Trulli is looming as his chief threat in the Toyota, which, like the Brawn and Williams, is using the controversial rear diffusers to make the car more aerodynamic.

Ferrari, Renault, Red Bull and BMW Sauber claim they are contrary to the rules, giving a lap-time benefit of up to 0.5 seconds, and have appealed a stewards' hearing in Melbourne that ruled them legal.

"The car is good but I didn't expect to be where I am," said Trulli.

"The team have done a great job and got everything spot on."

The big surprise was the failure of Massa to reach the third and final stage of the knockout qualifying format.

The Brazilian, who was third in the morning's final free practice session, was well off the pace when it mattered, managing only 1:35.642 having completed just four laps.

"The team thought it was enough to be inside the top 15 and maybe I thought as well, to be honest, because when I got back to the pits I was fourth," he said.

"I stayed in the top seven for a while, but then when I started to drop it was impossible to go out again because there was no time to do another lap."

Hamilton also had a day to forget as he comes to terms with the scandal last weekend in Australia in which he was forced to apologise for lying about Trulli overtaking him during the Australian Grand Prix.

"Nothing has changed since the last race and it was as tough as ever," he said.

Qualifying took place with only McLaren and Toro Rosso using the same engines they had in Melbourne as all the other teams elected for new ones.

Drivers are allowed to use eight engines over the course of the season.
(AFP)

Google sees voice search as core

By Maggie Shiels
Technology reporter, BBC News, San Francisco
Google has said it sees voice search as a major opportunity for the company in building a presence on the mobile web.

The company's vice president of engineering made the comments during a wide-ranging discussion at the Web 2.0 Expo in San Francisco.

"We believe voice search is a new form of search and that it is core to our business," said Vic Gundotra.

SearchEngineLand editor Greg Sterling agreed: "If done right, it could be a valuable strategic feature for Google."

Mr Gundotra acknowledged to the audience that "voice recognition in the early days was a nice trick but not very usable".

There were early complaints that Google's offering could not understand accents other than American and that results were often garbled.

"Look how far we have come. I get the advantage of looking at daily voice queries coming in and it's amazing. It's working. It's reached a tipping point. It's growing and growing very, very fast and we are thrilled about it," said Mr Gundotra.

He declined to share figures about just how many queries the company deals with via voice search.

However, Mr Gundotra did say: "It's one of those technologies we think gets better with usage.

"We launched it on the iPhone and have seen a 15% jump in accuracy because, as more people use it, we collect more data and our accuracy gets better."

'Queen's English'

In 2002, Google Labs introduced a service that allowed users to search with a simple phone call. The company admitted it "wasn't very useful because the results were displayed on your computer and Google discontinued it".

Six years later, the search giant introduced an improved feature under the Google Mobile App for the iPhone.
Vic Gundotra
Vic Gundotra says "voice search is core" to Google's future mobile plans

It is also available on the Android based T-Mobile G1 and last month was introduced on the BlackBerry as a free download. The New York Times's Gadgetwise blog rated the BlackBerry version the "App of the Week" earlier this week.

Early iterations that worked best with North American accents had problems understanding other accents, including British. BBC technology cCorrespondent Rory Cellan-Jones reported in November last year that his attempts to use it were "pure gibberish".

For example, his query about the next train, West Ealing to Paddington "delivered some useful information about 'neck strain' - but no train times".

Those problems have since been largely ironed out and Google said it was continuing to work on improving the accuracy of the service. This, Mr Sterling said, is crucial if the company wants it to give them the edge in the marketplace.

"My view is voice search could be a strategic differentiator if it works well. It depends on how much better Google's system is compared to, say, Yahoo's or Microsoft's.

"If they come up with a really great version that is really accurate, it could retain users and likely increase search usage for Google," said Mr Sterling.

"Stay tuned"

At Web 2.0, Mr Gundotra also talked about a web-based version of Google's e-mail service, Gmail.
Gmail app
Google's "technical prototype", coming soon to the public

He demonstrated a "technical prototype" on the iPhone and the G1 and said "Stay tuned" for a release date.

Mr Gundotra said the prototype used HTML 5, an as-yet incomplete version of mark up language of the world wide web.

He revealed that Google would create a whole suite of offline apps using HTML 5 and that "we are going to be leaders in taking advantage of HTML 5".

Mr Gundotra also said that engineers were working hard to bring the Chrome browser to the Mac and that while there was no date for delivery, "we are making progress to get it out as fast as we can".

Twitter purchase

During a question and answer session, Mr Gundotra was quizzed on rumours circulating in the blogosphere that Google is looking to buy the micro-blogging service Twitter.
Twitter
Google said "no comment" on rumours it may want to buy Twitter

"I'm a big fan of Twitter but we don't as a policy comment on rumour or speculation," he said.

Meanwhile, Twitter co-founder Biz Stone has said that he has been "flooded with requests for a response to the latest internet speculation about where Twitter is headed".

In a blog entitled Sometimes We Talk, Mr Stone wrote: "It should come as no surprise that Twitter engages in discussions with other companies regularly and on a variety of subjects.

"Our goal is to build a profitable, independent company and we're just getting started."
(BBC)

Gene defect clue to male pill

A male contraceptive pill could be a step closer after US researchers identified a gene flaw linked to male infertility.

The study of Iranian families found mutations in the CATSPER1 gene which controls a protein determining sperm movement.

Researchers say the finding could lead to treatments for infertile men - and potentially to a new contraceptive.

Condoms or a vasectomy are still the only male contraceptive choices.

UK researchers from the Medical Research Council Reproductive Biology Unit in have previously carried out surveys showing that men would be willing to take a contraceptive pill if one was available.

Hyperactive

In this study, the researchers were looking at a population with high rates of disease-causing gene mutations to investigate genetic causes of deafness.

However, while they were collecting genetic information, the scientists discovered that two families had different DNA mutations in the CATSPER1 gene.

The affected men's infertility was diagnosed using standard semen analysis. There were no other identifiable causes for their fertility problems.


This may also provide a new target for a revolutionary male contraceptive
Dr Allan Pacey, University of Sheffield

Both mutations would likely lead to either a much shortened, non-working version of the protein the gene controls, or no protein at all.

Neither mutation was found in the DNA of 576 Iranian individuals who were also screened.

Tests on mice have previously found CATSPER1 mutations cause infertility because they affect sperm "hyperactivation" - the ability to move with the required energy and speed to enter the female egg during fertilisation.

Dr Michael Hildebrand, who led the research, said: "We have identified CATSPER1 as a gene that is involved in non-syndromic male infertility in humans, a finding which could lead to future infertility therapies that replace the gene or the protein.

He added: "Identification of targets such as the CATSPER1 gene that are involved in the fertility process and are specific for sperm - potentially minimising side effects of a drug targeting the protein's function - provide new targets for a pharmacological male contraceptive."

'Much work to be done'

A potential approach is to target CATSPER1 is immunocontraception, where antibodies are developed that bind to a targeted protein and block its function.

But the researchers stress that immunocontraception is still in the early stages of development and that, in order to be useful, it will need to be proven effective, safe and reversible.

Dr Allan Pacey, senior lecturer in andrology at the University of Sheffield, said: "Hyperactivation is important both to get sperm to move along the oviduct toward the egg and also in giving them sufficient power and thrust to be able to fertilise it.

"The fact that this study now suggests similar CATSPER mutations may also occurred in humans could explain why some men are unable to father a child naturally, in spite of having apparently normal semen quality."

But he added: "The authors are correct that this may also provide a new target for a revolutionary male contraceptive, although there is much work to be done in order to prove that approach would be both effective and safe."
(BBC)

OECD names and shames tax havens

The Organisation for Economic Cooperation and Development (OECD) has published its blacklist of non-cooperative tax havens.

Costa Rica, Malaysia, and the Philippines are the countries listed as not having agreed to tax standards.

Uruguay had originally been listed too, but later protested that it had been wrongly included.

After listening to its arguments the OECD said it was happy the country had agreed to its tax transparency rules.

The list is part of efforts agreed at the G20 summit to clamp down on havens.

There is also a list of 38 places that have agreed to improve standards but not yet done so, such as Gibraltar, Liechtenstein, Andorra and San Marino.

'Willing to co-operate'

On Thursday, G20 leaders agreed to take sanctions against tax havens using the OECD list as its basis.

In their communique, they agreed, "to take action against non-cooperative jurisdictions, including tax havens".

"We stand ready to deploy sanctions to protect our public finances and financial systems. The era of banking secrecy is over."

Uruguay had objected to its inclusion on the list, published earlier on Friday.

The South American country sent a letter to Angel Gurria, secretary-general of the OECD, from its finance minister Alvaro García.

He informed the OECD that Uruguay had formally endorsed the body's standards on transparency and exchange of information.

"I am pleased that Uruguay joins a growing number of nations willing to co-operate in fighting tax evasion and other tax abuses," said Mr Gurria.

Pressure

Angel Gurria, secretary general of the OECD, said that the G20 summit had helped to focus minds on the issue of tax havens.


There were frosty negotiations between France and China over the inclusion of Macau
Paul Mason, BBC Two Newsnight economics editor

The tax haven that vanished

"We've had more progress in the last two weeks on this matter than we've had in the last 10 or 12 years," he told the BBC.

He added that the progress had come despite the leaders not specifying what sanctions they would take.

"[Non-cooperating countries] will move because they know the question of sanctions, however ill-defined that was, is going to affect them somehow."

The Philippines is already reported to be taking steps to remove itself from the blacklist.

"The Philippine government would take the necessary steps to ensure we meet their expectations," Trade Secretary Peter Favila told the Associated Press news agency.

"It is really up to us to prove them wrong."

Malaysian Prime Minister Najib Razak said that his country should not be on the blacklist at all.

"We should not be in that category as, in practice, we have been committed to OECD requirements," he said in a statement.

Russia to unveil spaceship plans

By Anatoly Zak
Science reporter

The Russian space agency is expected to unveil development plans for a next-generation manned spacecraft on Monday.

Roscosmos should name the ship's prime developer, which has competed to win government funds for the project.

The proposed new spacecraft should enter into service sometime towards the end of the next decade.

It will replace the venerable three-seat Soyuz capsule, which has carried Russian cosmonauts into orbit for more than four decades.

Although Roscosmos has remained tight-lipped about the upcoming presentation, the agency has quietly released its requirements for a future manned transport system to the Russian space industry.

In doing so, the agency has shed some light on the ship's likely design and its possible missions.

The spacecraft, currently known only by the Russian abbreviation PPTS, for Prospective Piloted Transport System, would be able to reach low-Earth orbit or to enter orbit around the Moon.

Several configurations

The Earth-orbiting version of the ship would have a mass of 12 tonnes, carry a crew of six, along with no less than 500kg of cargo; while its "lunar cousin" would weigh 16.5 tonnes, have four seats and be capable of delivering and bringing back 100kg of cargo.

The unmanned cargo version of the vehicle would be required to carry no less than 2,000kg to Earth orbit, and return at least 500kg back to the planet's surface.

Roscosmos has reserved the option of making the crew module of the spacecraft reusable, reckoning that a cone-shaped capsule could fly up to 10 missions during its 15-year lifespan.
Soyuz "lifeboat"
Soyuz also acts as the "lifeboat" at the International Space Station

In providing the technical specifications for the new spacecraft, the agency has also given a glimpse of its vision for the future of the Russian space programme.

Although the most capable version of the ship is meant to support expeditions to the Moon, "intermediate" configurations are intended for a variety of other tasks.

For example, the agency wants the future developer to evaluate the possibility of sending the ship into high-inclination orbits extending towards Earth's poles, usually frequented by Earth-observation and spy satellites.

While in Earth's orbit, the new spacecraft would have to be able to fly 30-day-long autonomous missions; or stay no less than a year in space when it is docked to the International Space Station, or to a possible future Russian space station. (Currently, Soyuz spacecraft, which serve as "lifeboats" for the International Space Station, have to be replaced roughly every six months due to potential deterioration of some of their systems, such as batteries and propellant).

Martian possibilities

In addition to docking to the station, the spacecraft would have to be able to conduct servicing of unmanned vehicles in space and even remove pieces of space junk from their orbits, as well as conduct unspecified military tasks.

The lunar version of the ship would be capable of flying no less than 200 days in space when docked to a space station in orbit around the Moon.

A number of Russian reports have described recent studies looking at the possibility of a lunar orbital station, LOS. Such an outpost would also serve as a hub for lunar modules, which would deliver crews from lunar orbit to the surface of the Moon.
Concept system (Astrium)
Europe will now pursue its own plans, but incorporate Russian technology

The 200-day mission requirement probably provides some hint about Russian plans to eventually build a permanently occupied lunar outpost, similar to Nasa's lunar base developed under its Constellation programme.

In a recent interview with the ITAR-TASS news agency, Aleksei Krasnov, the head of the manned space flight directorate at Roscosmos, said that the future spacecraft could serve as the "core" technology for a future Martian mission.

This apparently referred to the role that the vehicle might play as a delivery and return craft for the large complex that would be needed to raise a manned assault on the Red Planet.

By the time the new Russian spacecraft could enter service around 2018, the Soyuz family will have logged more than half a century in service.

In recent years, Russia and Europe did look at the possibility of developing the next-generation vehicle together, but the two parties could not agree on the work share. Europe will now separately pursue the possibility of upgrading its robotic ATV space freighter to a manned ship, but still using some Russian technology.

Powerful launcher

As reported by BBC News last month, Roscosmos has already completed a tender for the new rocket that would carry the future manned vehicles into space.

Although the agency has delayed the announcement of the winner until at least 6 April, many unofficial sources in Russia maintain that TsSKB Progress, based in Samara, will lead the development of the new rocket.

It is believed that the launch vehicle will feature a three-booster first-stage, each booster equipped with powerful RD-180 engines, burning a mix of liquid oxygen and kerosene.
Angara-7 launch (Anatoly Zak/Russianspaceweb.com)
Russia will also introduce a new fleet of launchers in the next few years

The engine was originally developed by Moscow-based NPO Energomash for the US Atlas 5 rocket and its performance to date has been impressive.

Ironically, Russian officials rejected a design of the yet-to-be flown Angara rocket that featured the RD-180. Now, the power plant, which has earned such a fine reputation across the Atlantic, could return vindicated to its native land

The second stage of the new manned rocket would probably sport a pair of RD-0124 engines, currently in use on the Soyuz-2 rocket. Thus, both stages of the future launcher would be equipped with the newest existing power plants, greatly reducing the cost and the risk to the overall project.
(BBC)