UPDATE 1-Kumba H1 export volumes up, sees higher output

July 23, 2010 By Leave a Comment

JOHANNESBURG, July 22 (Reuters) – Kumba Iron Ore (KIOJ.J), a unit of global miner Anglo American (AAL.L) reported a 10 percent rise in exports sales volumes and said it remained committed to raising annual production volumes.

South Africa’s Kumba said export sales volumes rose to 18.8 million tonnes, while its operating profit was up 64 percent to 11.2 billion rand ($1.49 billion). It said there was uncertainty over future iron ore pricing mechanism.

Kumba said attributable and headline earnings for the period were 20.27 rand and 20.28 rand respectively.

“Export sales volumes into China are expected to normalise at around 60 percent of the geographical sales mix,” the company said in a statement.

China is the world’s largest iron ore buyer and consumes more than half of the world’s traded ore.

Kumba said export sales for the second quarter of 2010 at 9.5 million tonnes was 14 percent lower than a year earlier.

Kumba, currently involved in an iron ore supply dispute with ArceloMittal’s South African unit (ACLJ.J)(MT.N)(ISPA.AS), said domestic sales volumes from Thabazimbi mine remain dependent on the off-take requirements from the Arcelormittal unit. (Reporting by Shapi Shacinda; Editing by Stella Mapenzauswa)

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European shares turn negative; miners slip

July 13, 2010 By Leave a Comment

July 12 (Reuters) – European shares turned negative on Monday as miners lost ground, tracking weaker metals prices, after weekend data showed China’s June copper imports fell short of expectations, though overall data surprised on the upside.

At 0719 GMT, the FTSEurofirst 300 .FTEU3 index of top European shares was down 0.2 percent at 1,020.16 points after opening slightly higher.

Miners were among the biggest decliners, with BHP Billiton (BLT.L), Anglo American (AAL.L) and Eurasian Natural Resources (ENRC.L) falling 0.5 to 1 percent.

(Reporting by Atul Prakash)

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European shares turn negative; miners slip

July 13, 2010 By Leave a Comment

July 12 (Reuters) – European shares turned negative on Monday as miners lost ground, tracking weaker metals prices, after weekend data showed China’s June copper imports fell short of expectations, though overall data surprised on the upside.

At 0719 GMT, the FTSEurofirst 300 .FTEU3 index of top European shares was down 0.2 percent at 1,020.16 points after opening slightly higher.

Miners were among the biggest decliners, with BHP Billiton (BLT.L), Anglo American (AAL.L) and Eurasian Natural Resources (ENRC.L) falling 0.5 to 1 percent.

(Reporting by Atul Prakash)

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Europe shares snap 3-day losing run; China boosts

June 10, 2010 By Leave a Comment

LONDON, June 9 (Reuters) – European shares rose on Wednesday, snapping a three-day losing streak, after better-than-expected Chinese export data boosted hopes for global economic recovery.

The pan-European FTSEurofirst 300 .FTEU3 index rose 1.9 percent to close at 998.44 points, having been as low as 978.84 earlier in the session. The index is still down more than 10 percent from a mid-April peak, on worries about Europe’s debt crisis.

“It’s a relief rally. I think we’re due a technical recovery,” said Giuseppe-Guido Amato, strategist at Lang & Schwarz.

“Whether it’s a one-day wonder we don’t know. The only sure thing is high volatility. Q1 earnings were good, and Q2 may be good, but macro trumps micro now. The acceleration of the recovery is fading. There is a chance of a double dip.”

Banking stocks added most points to the index. Banco Santander (SAN.MC), Credit Suisse (CSGN.VX), HSBC (HSBA.L), Societe Generale (SOGN.PA) and UniCredit (CRDI.MI) rose between 1.4 percent and 4.7 percent.

The sector was also given a boost after Citigroup analysts said dividends from Europe’s banks were set to rise 36 percent this year.

European market sentiment was boosted after evidence of stronger than expected Chinese exports in May, lessening fears that Europe’s debt crisis will slow global demand. [ID:nTOE65805R]

The China data, as well as a weaker dollar, helped oil and and metal prices gain, boosting commodity shares. Miners to rise included Anglo American (AAL.L), BHP Billiton (BLT.L), Fresnillo (FRES.L), Rio Tinto (RIO.L) and Xstrata (XTA.L), up between 2.5 and 4.6 percent.

Among oils, Total (TOTF.PA), Repsol (REP.MC) and StatoilHydro (STL.OL) rose between 1.2 and 2.3 percent.

However, BP fell 4.3 percent to its lowest close since October 2008 as traders cited concern over its dividend payment. The company is coming under increasing pressure from U.S. politicians following an oil spill in the Gulf of Mexico.

BP is down more than 40 percent from a mid-April peak, wiping about 50 billion pounds ($72 billion) off its market capitalisation.

Across Europe, the FTSE 100 .FTSE index ended the day 1.2 percent higher; Germany’s DAX .GDAXI and France’s CAC 40 .FCHI both gained 2 percent.

Spain’s IBEX 35 .IBEX rose 1 percent, Portugal’s PSI 20 .PSI20 was 0.2 percent higher and Italy’s benchmark was up 1.1 percent.

Wall Street was higher around the time European bourses were closing. The Dow Jones .DJI, S&P 500 .SPX and Nasdaq Composite .IXIC were up between 0.9 and 1.3 percent.

INDITEX RISES

Among individual companies, Zara fashion chain owner Inditex (ITX.MC) soared 7.5 percent after the Spanish company posted a forecast-beating 63 percent jump in quarterly net profit. [ID:nLDE65803K]

However, mobile phone maker Nokia (NOK1V.HE) fell 2.3 percent as traders cited speculation the company could issue a profit warning. [ID:nHEL009731]

Analysts say regulation is still a worry.

German Chancellor Angela Merkel and French President Nicolas Sarkozy have urged European Commission President Jose Manuel Barroso to consider an EU-wide ban on naked short selling of shares and state bonds. [ID:nBAT005537] (Editing by Mike Nesbit) (brian.gorman@thomsonreuters.com; +44 20 7542 9128; Reuters Messaging: brian.gorman.thomsonreuters.com@reuters.net))

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Europe shares snap 3-day losing run; China boosts

June 10, 2010 By Leave a Comment

LONDON, June 9 (Reuters) – European shares rose on Wednesday, snapping a three-day losing streak, after better-than-expected Chinese export data boosted hopes for global economic recovery.

The pan-European FTSEurofirst 300 .FTEU3 index rose 1.9 percent to close at 998.44 points, having been as low as 978.84 earlier in the session. The index is still down more than 10 percent from a mid-April peak, on worries about Europe’s debt crisis.

“It’s a relief rally. I think we’re due a technical recovery,” said Giuseppe-Guido Amato, strategist at Lang & Schwarz.

“Whether it’s a one-day wonder we don’t know. The only sure thing is high volatility. Q1 earnings were good, and Q2 may be good, but macro trumps micro now. The acceleration of the recovery is fading. There is a chance of a double dip.”

Banking stocks added most points to the index. Banco Santander (SAN.MC), Credit Suisse (CSGN.VX), HSBC (HSBA.L), Societe Generale (SOGN.PA) and UniCredit (CRDI.MI) rose between 1.4 percent and 4.7 percent.

The sector was also given a boost after Citigroup analysts said dividends from Europe’s banks were set to rise 36 percent this year.

European market sentiment was boosted after evidence of stronger than expected Chinese exports in May, lessening fears that Europe’s debt crisis will slow global demand. [ID:nTOE65805R]

The China data, as well as a weaker dollar, helped oil and and metal prices gain, boosting commodity shares. Miners to rise included Anglo American (AAL.L), BHP Billiton (BLT.L), Fresnillo (FRES.L), Rio Tinto (RIO.L) and Xstrata (XTA.L), up between 2.5 and 4.6 percent.

Among oils, Total (TOTF.PA), Repsol (REP.MC) and StatoilHydro (STL.OL) rose between 1.2 and 2.3 percent.

However, BP fell 4.3 percent to its lowest close since October 2008 as traders cited concern over its dividend payment. The company is coming under increasing pressure from U.S. politicians following an oil spill in the Gulf of Mexico.

BP is down more than 40 percent from a mid-April peak, wiping about 50 billion pounds ($72 billion) off its market capitalisation.

Across Europe, the FTSE 100 .FTSE index ended the day 1.2 percent higher; Germany’s DAX .GDAXI and France’s CAC 40 .FCHI both gained 2 percent.

Spain’s IBEX 35 .IBEX rose 1 percent, Portugal’s PSI 20 .PSI20 was 0.2 percent higher and Italy’s benchmark was up 1.1 percent.

Wall Street was higher around the time European bourses were closing. The Dow Jones .DJI, S&P 500 .SPX and Nasdaq Composite .IXIC were up between 0.9 and 1.3 percent.

INDITEX RISES

Among individual companies, Zara fashion chain owner Inditex (ITX.MC) soared 7.5 percent after the Spanish company posted a forecast-beating 63 percent jump in quarterly net profit. [ID:nLDE65803K]

However, mobile phone maker Nokia (NOK1V.HE) fell 2.3 percent as traders cited speculation the company could issue a profit warning. [ID:nHEL009731]

Analysts say regulation is still a worry.

German Chancellor Angela Merkel and French President Nicolas Sarkozy have urged European Commission President Jose Manuel Barroso to consider an EU-wide ban on naked short selling of shares and state bonds. [ID:nBAT005537] (Editing by Mike Nesbit) (brian.gorman@thomsonreuters.com; +44 20 7542 9128; Reuters Messaging: brian.gorman.thomsonreuters.com@reuters.net))

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UK’s ”special relationship” with US will remain, but next PM won”t cozy up to Obama

May 7, 2010 By Leave a Comment

Washington, May 7 (ANI): US President Barack Obama will have to accept that while his country’s relationship with Britain will remain special, the next Prime Minister of that country will not be subservient to Washington, as has been the case with Gordon Brown and Tony Blair.

According to the New York Daily News, Britain’s New Labor Party has never recovered from the perception that Blair was so tight with Washington that he was ridiculed as President George W. Bush”s “poodle.”

“The longstanding U.S. assumption of automatic British support for its policies is now in question,” predicted Martin Walker, a former Washington correspondent for The Guardian.

“The Lone Ranger can no longer count on Tonto,” Walker added last week.

Officially, both governments express their undying affection and say common interests – Afghanistan, global trade, financial reform and Iranian nukes – ensure the relationship will stay strong.

“There may be some tonal shifts, but not a lot,” an Anglo-American specialist said, “and no real policy shifts.” (ANI)

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Firmer commodity stocks lift FTSE; Intel pleases

April 15, 2010 By Leave a Comment

LONDON, April 14 (Reuters) – Strong results from U.S. chip giant Intel (INTC.O) boosted sentiment on the global demand outlook, helping bolster commodity stocks to push Britain’s top share index up in early trade on Wednesday.

By 0811 GMT, the FTSE 100 .FTSE was up 24.31 points at 5,785.97 after it fell 15.99 points or 0.3 percent on Tuesday, back close to Monday’s 22 month intra-day peak.

Intel’s sales and margin forecasts far outpaced market expectations when they were released after the Wall Street close on Tuesday reinforcing hopes for an acceleration in the recovery. [ID:nN1382801]

This helped prompt a rise in commodity prices on increased demand hopes from the recovery which bolstered heavyweight miners and energy companies.

Rio Tinto (RIO.L), Xstrata (XTA.L), Lonmin (LMI.L), Anglo American (AAL.L), Kazakhmys (KAZ.L) and BHP Billiton (BLT.L) added 1 to 2 percent.

BG Group (BG.L), BP (BP.L), Royal Dutch Shell (RDSa.L), Tullow Oil (TLW.L), Cairn Energy (CNE.L) gained 0.1 to 1 percent.

“The market has the hope, or perhaps the expectation, that Q1 earnings will be good enough to keep equities moving higher and this is pushing (worries about) Greece to the backburner,” said Peter Dixon, economist at Commerzbank.

Chipmaker Arm Holdings (ARM.L) gained 1.5 percent as the Intel results boosted the outlook for the tech sector, while software firm Autonomy (AUTN.L) also benefited from the improved sentiment.

Telecoms carrier BT Group (BT.L) added 1.7 percent, in demand as Morgan Stanley released a note saying that it looks substantially cheaper than its U.S. peers such as AT&T (ATT.N).

BAE Systems (BAES.L) gained 1.3 percent, supported by a report in the Daily Telegraph that said the firm has won a Ministry of Defence contract, worth $25 million, to supply anti-missile technology for Chinook and Tornado aircraft in Afghanistan.

Among a relatively limited list of fallers, Associated British Foods (ABF.L) fell 1.8 percent after Deutsche Bank downgraded the food to retail group to “sell” from “hold”, citing valuation concerns over Primark.

Ex-dividend factors knocked 1.91 points off the FTSE 100 index on Wednesday, with BG Group (BG.L), Capita (CPI.L), Legal & General (LGEN.L) and Tullow Oil (TLW.L) all losing their payout attractions.

Investors will refocus on earnings from the U.S. banking sector later on Wednesday with JP Morgan Chase (JPM.N) posting results before the U.S. open.

No major domestic economic data will be released on Wednesday, so the main macro focus will be on a key batch of U.S. data due in the afternoon, notably March consumer prices and retail sales numbers, both scheduled for 1230 GMT.

U.S. business inventories for February will be released at 1400 GMT, and the latest Federal Reserve Beige Book will be published after the London close at 1800 GMT.

Federal Reserve chairman Ben Bernanke will deliver his latest Congressional testimony on Wednesday. (Editing by Jon Loades-Carter)

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Firmer commodity stocks lift FTSE; Intel pleases

April 15, 2010 By Leave a Comment

LONDON, April 14 (Reuters) – Strong results from U.S. chip giant Intel (INTC.O) boosted sentiment on the global demand outlook, helping bolster commodity stocks to push Britain’s top share index up in early trade on Wednesday.

By 0811 GMT, the FTSE 100 .FTSE was up 24.31 points at 5,785.97 after it fell 15.99 points or 0.3 percent on Tuesday, back close to Monday’s 22 month intra-day peak.

Intel’s sales and margin forecasts far outpaced market expectations when they were released after the Wall Street close on Tuesday reinforcing hopes for an acceleration in the recovery. [ID:nN1382801]

This helped prompt a rise in commodity prices on increased demand hopes from the recovery which bolstered heavyweight miners and energy companies.

Rio Tinto (RIO.L), Xstrata (XTA.L), Lonmin (LMI.L), Anglo American (AAL.L), Kazakhmys (KAZ.L) and BHP Billiton (BLT.L) added 1 to 2 percent.

BG Group (BG.L), BP (BP.L), Royal Dutch Shell (RDSa.L), Tullow Oil (TLW.L), Cairn Energy (CNE.L) gained 0.1 to 1 percent.

“The market has the hope, or perhaps the expectation, that Q1 earnings will be good enough to keep equities moving higher and this is pushing (worries about) Greece to the backburner,” said Peter Dixon, economist at Commerzbank.

Chipmaker Arm Holdings (ARM.L) gained 1.5 percent as the Intel results boosted the outlook for the tech sector, while software firm Autonomy (AUTN.L) also benefited from the improved sentiment.

Telecoms carrier BT Group (BT.L) added 1.7 percent, in demand as Morgan Stanley released a note saying that it looks substantially cheaper than its U.S. peers such as AT&T (ATT.N).

BAE Systems (BAES.L) gained 1.3 percent, supported by a report in the Daily Telegraph that said the firm has won a Ministry of Defence contract, worth $25 million, to supply anti-missile technology for Chinook and Tornado aircraft in Afghanistan.

Among a relatively limited list of fallers, Associated British Foods (ABF.L) fell 1.8 percent after Deutsche Bank downgraded the food to retail group to “sell” from “hold”, citing valuation concerns over Primark.

Ex-dividend factors knocked 1.91 points off the FTSE 100 index on Wednesday, with BG Group (BG.L), Capita (CPI.L), Legal & General (LGEN.L) and Tullow Oil (TLW.L) all losing their payout attractions.

Investors will refocus on earnings from the U.S. banking sector later on Wednesday with JP Morgan Chase (JPM.N) posting results before the U.S. open.

No major domestic economic data will be released on Wednesday, so the main macro focus will be on a key batch of U.S. data due in the afternoon, notably March consumer prices and retail sales numbers, both scheduled for 1230 GMT.

U.S. business inventories for February will be released at 1400 GMT, and the latest Federal Reserve Beige Book will be published after the London close at 1800 GMT.

Federal Reserve chairman Ben Bernanke will deliver his latest Congressional testimony on Wednesday. (Editing by Jon Loades-Carter)

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European shares rise; banks, commodities gain

April 10, 2010 By Leave a Comment

LONDON, April 9 (Reuters) – European shares rose in early trade on Friday, rebounding from steep losses in the previous session, as upbeat retail sales in the United States fuelled optimism of a recovery in the world’s largest economy.

Stocks | European Markets

By 0707 GMT, the pan-European FTSEurofirst 300 .FTEU3 index of top shares was up 0.8 percent at 1,096.97 points, recouping the previous session’s losses after the index closed 0.9 percent lower on Thursday.

Banks were among the top gainers, with Barclays (BARC.L), HSBC (HSBA.L), Societe Generale (SOGN.PA), BNP Paribas (BNPP.PA) and Deutsche Bank (DBKGn.DE) up 1.2 to 1.8 percent.

Top U.S. chains reported a record year-over-year increase in same-store sales for March. The sales reflected a boost in consumer demand that some investors had doubted would materialise. [ID:nN08170785]

“The economic conditions and data seem to be improving a little bit day by day and until that trend is broken, the trend is your friend,” said David Buik, senior partner at BGC Partners.

Among individual movers, Swiss flavours and fragrances maker Givaudan (GIVN.VX) rose 7.1 percent after posting a forecast-beating 9.2 percent rise in first-quarter sales as consumers splash out again on costly perfumes.

Miners and oil majors benefitted from a rally in metals and crude prices CLc1, which rose on the back of the strong U.S. retail sales and on talk that China may revalue its currency soon.

Anglo American (AAL.L), Kazakhmys (KAZ.L), BHP Billiton (BLT.L) and Xstrata (XTA.L) rose 1.2 to 1.4 percent, while oil companies BP (BP.L), BG (BG.L) and Royal Dutch Shell (RDSa.L) added 0.6 to 0.9 percent. (Reporting by Harpreet Bhal)

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FTSE gains 0.7 percent, boosted by commodities

March 2, 2010 By Leave a Comment

* Miners, energy stocks firmer as commodity prices rise * Mood lifted on hopes of solution to Greek debt

Stocks | Financials

* Banks weaker as HSBC impairments sap optimism on sector

By Simon Falush

LONDON, March 1 (Reuters) – Rising mining stocks, powered by surging copper prices, lifted Britain’s top share index to a five-week high early on Monday, but gains were capped by HSBC (HSBA.L) after the bank’s results missed expectations.

At 0915 GMT, the FTSE 100 .FTSE was up 36.67 points, or 0.7 percent to 5,391.09 points, having hit a five-week high earlier of 5,420.83. The blue chip index closed 76.30 points, or 1.5 percent higher on Friday.

Miners gave the biggest lift to the index as copper reached its highest level in more than five weeks after a massive earthquake in top producer Chile sparked supply worries.

Rio Tinto (RIO.L), Xstrata (XTA.L), Lonmin (LMI.L), Anglo American (AAL.L), Kazakhmys (KAZ.L) and BHP Billiton (BLT.L) added 1.3-4 percent.

Signs that Athens might be nearing a deal with European Union governments to ease the Greek debt crisis, a factor which has been a major depressant for stocks, also supported sentiment.

“Mining stocks are up on the back of the earthquake in Chile, and it seems as though there’s a move towards a solution in the Greek situation, so there’s a slightly more optimistic mood all round,” said Richard Hunter, head of equities at Hargreaves Lansdown.

Energy stocks also rose, supported by crude’s CLc1 break above $80 per barrel.

BG Group (BG.L), BP (BP.L), Royal Dutch Shell (RDSa.L), Tullow Oil (TLW.L) and Cairn Energy (CNE.L) added 1.3-1.6 percent.

HSBC HURTS

Banks, however, were the biggest drag on the index, turning negative after results from HSBC (HSBA.L) showed loan impairments outside the U.S. were higher.

Shares in HSBC fell 2.4 percent, while Standard Chartered (STAN.L), Royal Bank of Scotland (RBS.L) and Lloyds Banking Group (LLOY.L) fell 1-1.4 percent. Barclays (BARC.L) bucked the trend, gaining 1.4 percent.

Aviva was the biggest blue chip faller, down 3.3 percent, as takeover hopes for the insurer faded on news mooted joint predator Prudential (PRU.L) is close to a big acquisition in Asia, traders said.

Prudential shares were temporarily suspended, pending a further announcement, after it confirmed after the group confirms it is in talks to buy the Asian arm of American International Group (AIG.N). [ID:nLDE6200CL]

Legal & General (LGEN.L), also a long-perceived takeover target among the insurers, fell 2.1 percent.

The main domestic focus this week will be on the latest Bank of England MPC meeting, although no changes are expected to British monetary policy when the BoE’s decision is made public at midday on Thursday.

British house prices were 0.4 percent higher than a year ago in February, marking the first annual rise since March 2008, a Hometrack survey released overnight showed on Monday. [ID:nLDE61P1PM]

February’s UK CIPS manufacturing survey, and Bank of England consumer credit and mortgage lending numbers for January are also due for release on Monday morning.

Investors will also have a batch of U.S. data to digest in the afternoon, with January personal income and consumption numbers due at 1330 GMT, followed by the February ISM and January construction spending numbers at 1500 GMT. But most eyes will be directed ahead towards Friday’s U.S. jobs report. (Reporting by Simon Falush; Editing by Louise Heavens)

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For Gordon Brown, G20 summit holds double challenge

March 25, 2009 By Leave a Comment

London – The rotation that decides the venue for summit meetings of the world’s most powerful nations has provided British Prime Minister Gordon Brown with a chance to take to the world stage.

When he announced what he called the “historic meeting” back in November, Brown’s satisfaction at hosting the G20 summit and, at the same time, welcoming US President Barack Obama on his first trip outside North America, was palpable.

It will not have diminished. But, in the intervening months, the agenda has inevitably moved on as the global financial and economic crisis shows no sign of abating and Brown’s fortunes at home are stuck firmly at the lower end of the political barometer.

The summit on April 2 is seen as presenting a double challenge for Brown: to hold together international unity on the measures required to prop up the faltering world economy, and to secure his own political future.

Since the beginning of the crisis, the words “international solution” have rarely been off Brown’s lips, reflecting his genuine belief that this is the time for multilateral cooperation as the danger of protectionism looms.

There are, however, worrying signs that the summit will not produce the “global new deal” hailed by Brown among the big powers to combat recession and reform international financial institutions.

Commentators in London are pointing out that, even after Brown’s success in becoming the first western leader to be invited to the Obama White House in early March, the British leader cannot be certain that new US president’s team will wholeheartedly embrace the solutions put forward by Britain.

Meanwhile, in Europe, it is now clear that fellow EU partners, led by France and Germany, are not backing Brown’s Anglo-American recipe of massive government bailouts and instead prefer to apply a more cautious dose of capitalism with an eye on welfare needs and the avoidance of excessive debt.

The clear words from German Chancellor Angela Merkel that the “issue is not to spend more” but to wait for the measures already implemented to work have had a sobering effect in London.

Further discouraged by the modest results of a meeting of G20 finance ministers two weeks before the big summit, Britain’s Chancellor of the Exchequer, Alistair Darling, sought to play down expectations.

“I think we have to be realistic about what we can do together,” he said. This is part of a process. I don’t think things begin or end on April 2.”

In addition, things do not look good at home.

As Britons pay the price for a decade of unrelenting boom, based on the deceptive foundations of an over-inflated housing market, they share with other nations the negative fall-out of the economic downturn.

But, in a stark reminder that the British hangover will be special, the International Monetary Fund (IMF) warned in its latest survey that Britain is to endure a more severe and longer-lasting contraction than most other major economies.

And especially, confirming the fears expressed in Merkel’s caution, the IMF raised concern at the size of Britain’s public borrowing which, by 2010, will balloon to 11 per cent of GDP, compared with a share of 8.9 per cent in the US and an average 6.3 per cent across G20 nations.

In the run-up to the summit, a good deal of government energy was being spent on avoiding a “great blow-up” between its European participants, while at the same time hoping to demonstrate that “the world’s biggest economies are still talking to each other,” said the Daily Telegraph.

For Brown, a lot is on the line, said Christopher Meyer, the former British ambassador in Washington. “If the summit should turn out to be a failure, it will damage his reputation internationally and at home.” (dpa)

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Will Obama end UK’s special ties with U.S?

March 3, 2009 By Leave a Comment

Washington, Mar.1 (ANI): Hints from the White House suggest that the Obama administration might just call an end to Anglo-American fealty.

According to The Telegraph, word is spreading through political Washington that Obama wants to shake up the way the US government relates to its allies, which will leave little space for the sentiment of old ties.

There was a concrete clue when the White House announcement of British Prime Minister Gordon Brown’s trip was made last Saturday.

Obama’s spokesman Robert Gibbs declared: “The United States and the United Kingdom share a special partnership.”

Those familiar with the thinking of Obama’s top team say that use of the word “partnership” rather than “relationship” is an important distinction – it illuminates Obama’s belief in practical measures that work, not the old way of doing things.

A Washington official who is close to several members of Obama’s inner circle said: “They craft every word for the stone tablets. Words are what they do. It is not a mistake.

“A partnership is a business arrangement based on what you can do for Obama, not a relationship like a marriage that thrives through thick and thin until death do us part. He’ll judge the specialness of a partnership with Britain on what he gets out of it.”

In return for concrete support, Obama is expected to offer to listen more closely to British advice than George W. Bush did. But insiders say he will be ruthless in cutting adrift countries who do not cooperate with his global agenda, whatever their historic relationships.

A British official said: “I don’t think Obama is steeped in the tradition of the special relationship going back to Churchill and Roosevelt.

In the six decades since in which Winston Churchill first coined the phrase special relationship, successive American presidents have paid ritual obeisance to the notion that Britain should assume a place at the White House top table.

Now even allies of Obama believe he intends to extract a higher price for access to the corridors of his power.

Steve Clemons, of the New America Foundation think tank, who has links with the higher echelons of the Obama administration, said that Britain would be expected to make sacrifices in return for influence.

Brown comes seeking substantive agreements on economic matters ahead of the G-20 summit in London next month, and hopes also for a whiff of Obama’s stardust to revive his poll prospects at home.

His wife Sarah will have a separate audience with First Lady Michelle Obama later on Tuesday afternoon.

Nancy Pelosi, the Speaker of the House of Representatives, has invited Brown to address a joint session of congress on Wednesday, before a lunch with legislators. The 30-minute address will allow Brown to lay out his conception of the special relationship and boost his leadership credentials at home. (ANI)

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Will Obama end UK’s special ties with U.S?

March 3, 2009 By Leave a Comment

Washington, Mar.1 (ANI): Hints from the White House suggest that the Obama administration might just call an end to Anglo-American fealty.

According to The Telegraph, word is spreading through political Washington that Obama wants to shake up the way the US government relates to its allies, which will leave little space for the sentiment of old ties.

There was a concrete clue when the White House announcement of British Prime Minister Gordon Brown’s trip was made last Saturday.

Obama’s spokesman Robert Gibbs declared: “The United States and the United Kingdom share a special partnership.”

Those familiar with the thinking of Obama’s top team say that use of the word “partnership” rather than “relationship” is an important distinction – it illuminates Obama’s belief in practical measures that work, not the old way of doing things.

A Washington official who is close to several members of Obama’s inner circle said: “They craft every word for the stone tablets. Words are what they do. It is not a mistake.

“A partnership is a business arrangement based on what you can do for Obama, not a relationship like a marriage that thrives through thick and thin until death do us part. He’ll judge the specialness of a partnership with Britain on what he gets out of it.”

In return for concrete support, Obama is expected to offer to listen more closely to British advice than George W. Bush did. But insiders say he will be ruthless in cutting adrift countries who do not cooperate with his global agenda, whatever their historic relationships.

A British official said: “I don’t think Obama is steeped in the tradition of the special relationship going back to Churchill and Roosevelt.

In the six decades since in which Winston Churchill first coined the phrase special relationship, successive American presidents have paid ritual obeisance to the notion that Britain should assume a place at the White House top table.

Now even allies of Obama believe he intends to extract a higher price for access to the corridors of his power.

Steve Clemons, of the New America Foundation think tank, who has links with the higher echelons of the Obama administration, said that Britain would be expected to make sacrifices in return for influence.

Brown comes seeking substantive agreements on economic matters ahead of the G-20 summit in London next month, and hopes also for a whiff of Obama’s stardust to revive his poll prospects at home.

His wife Sarah will have a separate audience with First Lady Michelle Obama later on Tuesday afternoon.

Nancy Pelosi, the Speaker of the House of Representatives, has invited Brown to address a joint session of congress on Wednesday, before a lunch with legislators. The 30-minute address will allow Brown to lay out his conception of the special relationship and boost his leadership credentials at home. (ANI)

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Obama returns Churchill’s bust back to Britain with ‘thanks but no thanks’ message

February 18, 2009 By Leave a Comment

Washington, Feb. 18 (ANI): A bronze bust of the former prime minister Sir Winston Churchill, which British Government loaned to George W Bush in the wake of the 9/11 attacks as a symbol of the strong transatlantic relationship, has now been handed back.

The Telegraph quoted a British Embassy spokesman, as saying: “It was lent for the first term of office of President Bush. When the President was elected for his second and final term, the loan was extended until January 2009. The new President has decided not to continue this loan and the bust has now been returned. It is on display at the Ambassador’s Residence.”

The bronze bust is a Sir Jacob Epstein creation worth hundreds of thousands of pounds.hen British officials offered to let Obama continue hanging it in the White House, his reply was ‘Thanks, but no thanks.’

Obama openly cited the words and works of his hero Abraham Lincoln and now since taking over the presidency, a bust of Lincoln sits in the Oval Office.

The rejection of the bust has made some British officials nervous over how much influence the UK can wield with the new regime in Washington, and may force Gordon Brown to think about offering an alternative symbol of Anglo-American camaraderie when he visits Washington to meet Obama for the first time since he became President. (ANI)

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`We are going to close Gitmo,’ says Obama

January 12, 2009 By Leave a Comment

Washington, Jan.12 (ANI) US President-elect Barack Obama has reiterated his promise to close the American military prison at Guantanamo Bay, Cuba, where hundreds of detainees have been held for years without trial or even being charged with a crime.

But he could not promise that it would be done quickly.

Obama, who has been receiving daily national security briefings since his election in November, acknowledged that his campaign pledge to close the prison at Guantanamo Bay would be more of a challenge than he anticipated.

Many of those held at the military site are suspected terrorists or potential witnesses in cases against them.

“It is more difficult than I think a lot of people realize – and we are going to get it done – but part of the challenge that you have is that you have a bunch of folks that have been detained, many of whom may be very dangerous who have not been put on trial or have not gone through some adjudication,” he said.

About 250 detainees are still held there.

Sunday marked the seventh anniversary of the first prisoners arriving at Guantanamo, which was set up after the 9/11 attacks, in order to house suspected terrorists without putting them under the auspices of the American judicial system.

In the interview recorded Saturday and broadcast today on ABC’s “This Week,” Obama told host George Stephanopoulos, that “It is possible for us to keep the American people safe while still adhering to our core values and ideals, and that’s what I intend to carry forward in my administration.”

Obama would not say whether it could be achieved within the first 100 days of his term, citing the challenge of creating a balanced process “that adheres to rule of law, habeas corpus, basic principles of Anglo-American legal system, but doing it in a way that doesn’t result in releasing people who are intent on blowing us up.” (ANI)

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