China to Liberalise Interest Rates in Two Years: Central Bank Chief


China's central bank governor Zhou Xiaochuan

China's central bank governor Zhou XiaochuanReuters



China's central bank governor Zhou Xiaochuan said the country is looking to liberalise interest rates within two years, provided its economic circumstances at home and abroad are favourable.


"The timetable to liberalize interest rates will be mostly carried out according to conditions of the domestic economy and global economy, but we believe it could be realized within two years," Zhou told a press conference at the ongoing China-US Strategic and Economic Dialogue.


Zhou earlier said that the country is very likely to ease its grip on banks' deposit rate in the coming one or two years, Xinhua news agency reported. Easing of deposit rates is the last and most important step of interest rate liberalisation.


China has been taking a number of steps towards the liberalisation of interest rates. In July, the People's Bank of China (PBoC) announced that it would scrap the floor limit for bank lending rates.


In June, China allowed banks operating in Shanghai to set their own foreign-currency deposit rates, after testing the reform in the city's pilot free trade zone.


If the experiment becomes successful, China would roll out the programme across the country.


China is also undertaking reforms in the forex market, amid rising demand from global powers including the US.


Zhou said the central bank will "significantly cut intervention on the forex market".


Earlier in March, China widened its daily currency trading limits, as it signalled a gradual withdrawal from its regular intervention.


The yuan had appreciated by more than 12% by January after the central bank deepened reforms to the yuan's exchange rate formation mechanism back in June 2010. However, the currency headed toward months of depreciation against the US dollar after the central parity rate of the yuan hit a new high against the dollar in January.


"If the market fluctuates too much resulting from short-term opportunistic forces, we will make moves; and if the market is stable, we could speed up the reform a little bit," Zhou said.



Hezbollah Allegedly Wades Into Israel-Gaza Conflict as Rockets from Lebanon Launched


Israel-Gaza crisis and Lebanon

Lebanese and Palestinian protesters burn an Israeli flag during a demonstration to denounce Israeli air strikes on the Gaza strip, in Lebanon's southern port-city of Sidon.Reuters



The Lebanon-based Shiite militant group Hezbollah is suspected to have joined the simmering Israel-Gaza conflict as rockets from Lebanon strike Israel's Metulla.


Yet-unconfirmed reports suggest the rockets were fired by Palestine-linked militant groups in Lebanon and not by the Islamist outfit Hezbollah, which is widely perceived to be the long-arm of Iran.


At least two rockets from southern Lebanon landed in northern Israel.


Lebanon's state-run National News Agency said the rockets were fired from the Hasbaya region after an initial attempt failed to take off from another region. The rockets did not cause damages or casualties.


The Israeli Defence Forces (IDF) have turned to the UN alerting the international observers present in Lebanon over the attack. The remnants of the rockets were found near Kiryat Shemona, located in the region bordering Lebanon.


If it is confirmed that firing was carried out by Hezbollah, it would be a serious escalation in the ongoing crisis. Hezbollah's involvement in the Syrian civil war in support of President Bashar al-Assad has already tilted the balance in favour of the Damascus regime in recent years.


Israel-Gaza crisis

Smoke and flames are seen following what police said was an Israeli air strike in Rafah in the southern Gaza StripReuters



Meanwhile, the Israeli offensive on the Gaza Strip region has already claimed the lives of at least 90 Palestinians in the four-day long attack. There are no reported casualties on the Israeli side so far.


Israeli fighter jets continue to bombard suspected militant targets in the region. The Palestinian side says most of the casualties are however women and children. On Thursday (10 July) alone, Israel hit more than 100 targets.


Amid the worsening crisis, the US has offered to help broker a ceasefire between the sides, President Barack Obama has said.


Following a telephone conversation with Israeli Prime Minister Benjamin Netanyahu, the White House said Obama expressed concerns that the present fighting could intensify further and urged "all sides to do everything they can to protect the lives of civilians."



Opec Market Share to Slip as Global Oil Demand Rises


Libya oil terminal Zueitina

Workers are seen next to pipelines at the Zueitina oil terminal in Zueitina, west of BenghaziReuters



Opec predicts it will lose some market share in the global oil market in 2015 as the United States' shale oil boom gathers pace.


Despite predictions that global demand for oil will rise next year, the Organisation of the Petroleum Exporting Countries said it expects demand for its exports to shrink to an average of 29.37 million barrels of oil per day, 310,000 lower than 2014.


If correct, it would mean the group's crude market share would fall to less than a third of the market at 32%, down from 35% in 2014.


A new report from the exporter group expects an upturn in supplies in 2015, more so if Libya, Iraq and Iran production are back online. A mixture of international sanctions and geopolitical turmoil across the three Opec members have restricted supply and buoyed oil prices.


"Even if next year's world economic growth turns out to be better than expected and crude oil demand outperforms expectations, Opec will have sufficient supply to provide to the market," the Opec report said.


The group predicted rising global demand in 2015 as worldwide economic growth gathers speed, increasing by a further 1.21 million barrels of oil per day.


The United States would be the major force behind the increased demand, consuming more of its own oil and reversing a four-year demand decline in rich nations.


Oil consumption has been falling in the majority of industrialised nations on the back of weak growth and green regulation but Opec expects that trend to turn around.


While US oil production is expected to grow by 7% to 13.12m barrels a day in 2015, some of the additional output will be used for domestic demand, such as motorists.


Opec's monthly report said that the Iraq crisis had hit its overall production for June, down 79,000 barrels a day to 29.7m daily average over the month.



The Zionist Dream is Dead - but Our Hope for Israel is Undimmed


gaza rockets israel

An Israeli border policeman surveys damage caused to a building in a Kibbutz near the border with the Gaza Strip after it was hit by a rocketReuters



It's been a long journey, one I'm sure isn't even close to being complete. To be writing such scathing criticisms of Israel isn't something I thought I'd be doing. In fact it wasn't all that long ago that I'd be spewing vitriol at anyone who wrote the kind of stuff I've been writing over the last couple of weeks.


I've been thinking a lot lately about a book I used to read over and over when I was about 14 at school. It was a book about Israeli commandos during the 1950s and 60s. It told tales of the Jewish warriors of the 20th century. Men like Meir Har Zion, Tzapapo and Raful Eitan. Men who were Jews who fought, who didn't hide from attack, men who made the enemy pay for their attacks on Jews. And this was the man I wanted to be. I guess that was the age I decided that I was going to be a Paratrooper in the IDF.


My head was filled with Israel all through that time and beyond. My dreams were of our history here in this land. Of how Jewish blood had fertilised our soil in order to grow our Jewish state. Israel, the one place in the world where Jews could live freely, could breathe free air, could walk around without fear of the 'other'.


I even lamented being born in 1979 and not 1929. I wanted to have been present at the founding of our nation state, to have had the honor of fighting to bring it into being, to have been one of the brave who were parachuted into the Mitla Pass of the Sinai Desert. To have made my mark on the founding of this beautiful country.


I read Exodus and then I read it again. Then I found Herman Wouk's even more impressive The Hope and the sequel The Glory and I was in love with the Israel that had been built especially for me. I read Chaim Herzog's fantastic book Israel's Wars and I read Muki Betzer's book Secret Soldier. I cried while reading Avigdor Kahalani's autobiography during his depiction of the events in the Valley of Tears during the Yom Kippur War and of course I read of the courage of our greatest-ever commando, Yoni Netanyahu, the bravest of the brave, the best of the best.


These were not mere men. They were my heroes, my role models, my idols.


I shouted at the television whenever I watched the BBC, so dismayed was I by the way my beautiful Israel was depicted. Israel with enemies on all sides, Israelis with their backs to the sea being slandered and torn apart by journalists who knew nothing. Each issue affecting Israel was one of life and death, each Israeli death a tragedy, each terrorist killed a victory.


And then I made it here to Israel and achieved my dream, I earned that red beret. I was awarded the commander's beret for outstanding performance during training. I had done something no one could ever take away from me. I had moved from becoming a fan sitting in the stands to a player on the field.


I was an actor in the drama now, no longer seated in the audience.


My army service was dominated by a demand for more. More action, more adventure, more terrorists, more shooting, more enemies to kill. This was MY time. The Second Intifada was MY Mitla Pass, MY Valley of Tears, MY time to be the hero, to be the one who stood up, rifle in hand telling the terrorists I WILL NOT LET YOU PAST ME.


This had been my dream and I was living it.


But perhaps I should have been careful what I wished for. Dreams don't mix so well with reality. I did everything they told me to do and I volunteered for more operations. I fired rubber bullets and threw stun grenades and I fired real bullets and experienced them being fired at me. I participated in operations that resulted in the arrest of real terrorists. Of suicide bombers led from their holes and I would look at them and see the lives of the 20 people that they never got the chance to kill and feel the thrill of doing something that was truly holy.


iron dome

Israel's anti-missile Iron Dome air-defence system fires to intercept a rocket over the city of AshdodGetty



There were other operations too. Operations like wandering around Hebron with a list of names of kids ranging in age from 7 – 14 years old to arrest them. Operations like hanging around in the center of Nablus firing rubber bullets at civilians and throwing gas grenades because my orders were to enforce a day long curfew no matter who broke it. There was that time my friend shot a mother of 2 before their very eyes because it was dark and she was peeking through a window right after a terrorist had fired at us.


I remember this and I remember more.


I finished my military service and something had broken inside me, though I didn't know what it was. My Zionism was broken, my fantasies of glory were all gone. I left the land that had featured in my hopes and dreams for so long. I left and I went back to London and brooded for six years until I understood.


I understood that I had been wrong. I understood that the problem had never been Israel, it had been me. Israel wasn't the words of Uris or Wouk. Israel wasn't a land of bronzed invincible heroes but of real people dealing with life in their real, human ways. With all of the failings that implies. The real Israel could never have lived up to my boyhood fantasies. The army could never have delivered to me the glory that I desired.


Such glory only exists in the minds of young men, not in the real world.


When Kahalani exited from his tank in the Valley of Tears in the Yom Kippur War he would have seen smouldering iron and smelt the flesh of the men being cooked within. The only glory to be had there is of the regular men who suffered and died to protect their country against other men who suffered and died at the whim of their dictator.


And so I read new books. I read Morris' 1948, I read Tom Segev's One Palestine Complete. I understood the truth about the creation of our country. We did throw the Palestinians out. We did attack them, we did force out civilians from what is now Israel. Then, knowing the reality of it all, I was still glad. I was glad that we had done it, I was glad because the need of us Jews for our country was greater. We needed a state and we took one. The stakes of that war for Israel's Independence were clear. To the victor would go the spoils. We won, the spoils are ours.


Not a fairy tale, a real life history of killing, of crimes and nevertheless of victory against the odds.


But an understanding of the suffering which we imposed then, as well as my own experiences serving in the West Bank changed the way I look at Palestinians today. It also changed the way I look at Israeli politicians. Men and women who aren't infallible. Men and women who can be petty and small-minded and racist and corrupt. Oh how corrupt.


And I look around this country and I see all of this Zionist energy squandered so badly. All of these people who are willing to abandon their lives overseas for less money and a harder life just so that they can be players on the field rather than fans watching from the cheap seats. And my own Zionism returns even stronger than before.


For now it's based not on the fantasies of a boy with his fairy tales but on the reality of a man and his knowledge. And I say now that if Israel isn't the country I thought it was then I can still aspire to change her for the better. Of course Israel isn't that perfect country because there is no such thing as perfection, but I can still work to make Israel that country to be proud of.


Israel, this young nation, this work in progress has room left in her for me and others like me to stamp our mark upon her.


I would say I have earned the right to criticise Israeli politicians, Israeli policy and the country as a whole as much as I like. But I don't need to. Here, in free, democratic Israel no one needs to earn the right to say anything.


They just need to speak.


Marc Goldberg moved to Israel from London in 2001 and served in the Israel Defence Force as a Paratrooper. He is currently living and working in Tel Aviv, Israel, his articles and blogs have been published in media outlets ranging from the Jerusalem Post to the Times of Israel and The Guardian Comment is Free.


This article was originally published in the Times of Israel.



Iraq's Crisis is Kurdistan's Opportunity and it is Seizing the Moment


Iraq Kurds

Displaced families from the city of Tikrit make their way to Kirkuk(Reuters)



Iraq's Prime Minister Nouri al-Maliki has accused the country's Kurds of exploiting the crisis in Iraq to push for statehood.


With anti-Maliki militias and Islamic fundamentalists encroaching on the Iraqi capital, it is an uncertain time for the PM and the country he has led to the brink of collapse. However, when it comes to the Kurdish question, Maliki is completely right.


Recent developments have seen the Kurdistan Regional Government (KRG) leadership calling on its parliament to prepare for a referendum on independence. Maliki in turn called the autonomous region a haven for Islamist fighters from the Islamic State.


Kurdish ministers have said they would boycott future meetings of the Iraqi caretaker government. Baghdad responded by halting flights from the Iraqi capital to Kurdish cities of Arbil and Sulaimaniya.


In a sign of the KRG' increasing assertiveness, its leaders have threatened to sue Baghdad twice in a week. In the first instance, the Kurds threatened to counter-sue central government over attempts to block the sale of Kurdish oil on international markets.


The second proposal would see the KRG suing buyers of Iraqi oil on the basis that they are complicit in violating the Iraqi constitution, as Baghdad has not paid the KRG its budget entitlement.


The fact that the KRG is making these statements shows the shifting balance of power and the confidence among an emboldened Kurdish leadership.


Iraq's Kurdish population has long sought to upgrade their autonomous status within Iraq to that of an independent nation state. That movement, led by the KRG, has gained momentum this year, within the region itself and in foreign capitals.


Crucially for the Kurds, they appear to have support from their northern neighbour. Recap Tayyip Erdogan's Turkey is a key player in the geopolitical tangle over what we may one day refer to as the 'former Iraq.'


There are mixed messages in Turkey over whether Ankara would support the creation of an independent state of Kurdistan. Some suggest Turkey would support the move, or at least not object in public.


Indeed, Ankara had been dealing independently with the Kurds for years, accepting deliveries of Kurdish oil via overland routes. Economic ties strengthened in 2014, as Turkey accepted oil deliveries via a newly completed pipeline that cut out Baghdad.


The Kurdish oil was transported to Turkey's Mediterranean port of Ceyhan, where it was loaded on to tankers and sent on to global markets. Despite Baghdad's protestations and legal threats to warn importers off "smuggled" oil, Turkey is dealing with the KRG as if it were a state already.


Moreover, the Kurds have the private backing of the most powerful player in the region. While the United States has condemned any moves towards independence, economic ties with Arbil are strong. The Americans see Kurdistan as a beacon of stability in an increasingly turbulent region.


Given the fragility of Maliki's central government, the US will not support the Kurds' moves for statehood in public. The White House still has to contend with the growing threat that anti-Maliki militants and Islamic State jihadists pose to the country and its neighbours. Yet the White House would not want to lose a strategic ally that remains stable amid chaos and would probably work out a deal with the Kurds, even if the timing is imperfect.


When militants from Isis symbolically posed for photos at the Syria-Iraq border, they were declaring the collapse of the old order and the birth of their Caliphate. While this second aim is far from realised and unrealistic, the old colonial dividing lines are indeed being redrawn.


Iraq's official borders, drawn up by an Englishman and a Frenchman as the Ottoman Empire collapsed, look increasingly unworkable and unrealistic.


With access to independent revenue, backing from regional players and a sizeable, disciplined militia, the Kurds are confident that they will have their own place in the new Middle East.



India Budget 2014: Ample Food Stocks to Check Price Rises


India Budget 2014: Ample Food Stocks to Check Price Rises

Indian farmers from the Gujarat state are pictured under monsoon clouds as they clean a canal water tank, in July 2014.Reuters



Weak rainfall in India is expected to hit the nation's farm output this year but fears surrounding higher food inflation are unwarranted as the nation's ample food stocks and the government's proposed price stabilisation fund will help check price rises.


Since the arrival of monsoon rains in India, in the first week of June, rainfall has been 41% below average for the week ended 9 July, according to data from the India Meteorological Department, marking the fifth consecutive week of poor rains.


The June-September monsoon accounts for 70% of India's rainfall and irrigates more than half its farmland.


As such, poor rainfall is bound to hit farm output, boosting the prices of vegetables and that of major food grains such as rice and wheat.


However, Finance Minister Arun Jaitley, dispelling fears of potential food scarcity and higher prices in India, said the nation has adequate food stocks to deal with a drop in output from a weak monsoon.


Jaitley also proposed setting up a price stabilisation fund for farm produce. The minister made these remarks in his maiden budget speech in Parliament on 10 July.


Lower Output


India's farm output "might fall below 100 million tonnes in 2014 as things stand currently", Darren Cooper, senior economist at London-based International Grains Council (IGC), told IBTimes UK. He was referring to disappointing monsoon rains.


But while "tighter supplies, by way of a reduced summer-sown (kharif) rice harvest in 2014, could lead to higher inflation...to some extent, large centrally-held stocks of wheat and rice from past harvests will likely probably provide a cushion," Cooper added.


Total farm production in India in 2013, from the summer and winter harvests, stood at 105.6 million tonnes.


India's farm sector accounts for some 14% of its nearly $2tn (£1.2tn, €1.5tn) economy, and two-thirds of the nation's 1.2 billion population live in rural areas.



India Budget 2014: Lack of Clarity on GST Roll Out a Big Dampener


India Budget 2014: Lack of Clarity on GST Implementation a Big Dampener

India's Finance Minister Arun Jaitley arrives at Parliament to present the federal budget for the 2014/15 fiscal year, in New Delhi on 10 July.Reuters



India's Finance Minister Arun Jaitley, presenting the annual budget on 10 July, said the government hopes to roll out a landmark tax reform to merge India's 29 states into a common market by December 2014.


Jaitley also said that New Delhi will be "more than fair" in its dealings with India's states about how revenue should be allocated under the planned goods and services tax (GST) regime.


A GST regime could add about 1.5% to the nation's GDP, Krupa Venkatesh, senior director, Deloitte Touche Tohmatsu India, wrote in a column published on Firstpost.com.


Economists have said that a nationwide GST will boost revenue, while making it easier to do business in the sub-continent.


However, the 'biggest dampener' to the Indian industry in this year's budget, is the 'lack of clarity on the implementation of GST', Sachin Menon, chief operating officer (tax & regulatory services) and national head (indirect tax), at KPMG India said.


What is GST?


The GST is a destination-based tax regime while the prevailing regime is origin-based. As such, producer states fear they will lose revenue.


The federal government's unkept promises on payment of compensation for reducing central sales tax (CST) rates have stalled progress in GST negotiations with states.


Indirect Tax Proposals


"While the expectation from [Jaitley] was to follow the [Bharatiya Janata Party's] tagline of 'ache din' [good days], the [budget'] indirect tax proposals have been more in the nature of maintaining order rather than making policy changes that would benefit the industry," Menon said in an emailed note.


"The indirect tax proposals...have been aimed at boosting the manufacturing sector, reducing litigation, broadening the service tax base, facilitation of trade and disposal of appeals. Some of the sectors which have been incentivized include power, infrastructure, shipping and electronics, through reduction in customs duty on inputs and excise duty on output...


"Further, the most unexpected proposals of restricting the availment of Cenvat Credit within [six] months, taxing clinical trials and the compulsory pre-deposit for admission of appeals seem to carry the imprint of the bureaucracy that would affect the industry significantly," Menon added.


Replacing India's existing indirect taxes with the GST will 'create a national market, eliminate cascading taxes, and align taxation of imports and exports correctly', the India Economic Survey said on 9 July.



India Budget 2014: Government Leaves Gold Import Taxes Unchanged


India Budget 2014: Government Leaves Gold Import Taxes Unchanged

Indian gold bars.Reuters



The Indian government has left record-high import taxes on gold unchanged in its first budget, disappointing traders who had expected a relaxation of the nation's tough bullion import curbs.


India is the world's second-largest consumer of the precious metal and it imports nearly all of its gold.


However, the annual budget, tabled by Finance Minister Arun Jaitley in Parliament on 10 July, did not touch upon the nation's gold import policy.


Gold Demand


Gold demand in India could be weaker this year when compared to 2013. Weak monsoon rains could hit gold consumption as about 60% of gold demand originates from rural India, which is home to more than half of the nation's 1.2 billion people.


But the budget's tax incentives for marginal savers, which 'attempt to put more money in their hands' will 'indirectly' benefit the precious metal, said Somasundaram PR, managing director, India, World Gold Council.


"Gold has been intimately interlinked with Indian society and culture as well as playing an integral role in annual household savings. It is our hope that the short-term curbs on gold, understandable at the time they were introduced, but which have led to an increase in smuggling, will be reviewed and reversed soon.


"This will liberate the jewellery industry, which employs millions in direct employment, to gear up and modernise and deliver enhanced economic contribution," Somasundaram said in an emailed note.


"The need of the hour is to stop seeing gold as part of the problem and instead focus on measures that will unlock the potentially transformative value of the gold stored in millions of private hands in order to fund growth.


"Gold can be part of the solution to the challenges that India faces today and it's time to re-engage all stakeholders to develop a coherent long term policy on gold that is aligned to the nation's economic objectives," he added.


Gold imports into India could rise 200 tonnes in the six months to December, a 14% increase over the first six months of the year, Bachhraj Bamalwa, director, All India Gems and Jewellery Trade Federation, told Reuters on 9 July.


Gold Prices


Gold rose to a high of $1344.75 on 10 July, a near four-month high from the previous close of $1327.35. It has rallied more than 7.6% since June 2014.


Indian Restrictions


India's central bank on 21 May further eased gold import restrictions, while also permitting local banks to provide gold loans to jewellers.


The Reserve Bank of India (RBI) permitted leading trading houses to import gold, a decision that afforded permission to over 20 entities, including banks, to import the precious metal.


Meanwhile, the resumption of gold loans to the sector, banned in 2013, made it easier for jewellers to finance purchases.


Earlier, in March, the RBI allowed five private sector banks to import gold, a move that marked the first step towards easing India's gold import curbs.


The Reserve Bank allowed HDFC Bank, Axis Bank, Kotak Mahindra Bank, IndusInd Bank and Yes Bank to import the precious metal, Reuters reported.


Modi May Abolish Curbs


India's new government was expected to relax the nation's tough bullion import restrictions after its predecessor raised duty on gold and tightened the movement of the metal.


Prime Minister Narendra Modi, speaking ahead of April 2014's general elections, said any action on gold must consider the interests of the public and traders, not just economics and policy.


Imports Halve


Gold and silver imports to India plunged 40% to $33.46bn (£19.84bn, €24.46bn) in the financial year 2013-14 in the wake of hard-hitting government restrictions.


Three upward revisions to the import duties on gold in 2013, to a record 10%, and restrictions tying purchases to exports, discouraged gold buying in Asia's third largest economy last year.


While official imports in 2013 reached 750 tonnes, an additional 200 tonnes was believed to have been smuggled to India, according to estimates from the WGC.



Balls of Fire Scorch Gaza: Israel Escalates Airstrikes to Stop Hamas Rocket Attacks [PHOTOS]


Israel has dramatically escalated its bombardment of Gaza. A military spokesman said Israel struck more than 320 Hamas targets overnight, focusing on underground tunnel networks and rocket launching sites. This brings the number of targets hit to 750 in three days, killing at least 80 Palestinians.



A fireball erupts from a building hit by an Israeli air strike in Gaza City

A fireball erupts from a building hit by an Israeli air strike in Gaza CityAFP



A plume of smoke rises over Gaza following an Israel Air Force bombing

A plume of smoke rises over Gaza following an Israel Air Force bombingGetty



A member of the civil defence reacts after a house in Gaza City was hit by an Israeli airstrike

A member of the civil defence reacts after a house in Gaza City was hit by an Israeli airstrikeReuters




Neither side is showing any sign of halting their heaviest fighting since an eight-day battle in late 2012. Israel says that Hamas must cease rocket fire from Gaza. Militants have fired hundreds of rockets, but no one has been seriously harmed as the Iron Dome defence system has intercepted at least 70 of projectiles.


Palestinian medical officials said a strike struck a home in the southern Gaza city of Khan Younis, killing eight members of the Al Haj family. At least eight others were killed when a strike hit a Gaza beach cafe where they were watching the World Cup semi-final match between Argentina and the Netherlands.


The Israeli military said it was investigating both incidents. It also said it struck a car in Gaza carrying three Islamic Jihad militants involved in firing rockets. The militant group confirmed that its men were killed in the strike.



Palestinians inspect the wreckage of a car that had been carrying three Islamic Jihad militants involved in firing rockets

Palestinians inspect the wreckage of a car that had been carrying three Islamic Jihad militants involved in firing rocketsAFP



Palestinians inspect the remains of a car hit by an Israeli air strike in Gaza City. The killed driver, Hamed Shehab, 30, worked for the Gaza-based news website Media 24

Palestinians inspect the remains of a car hit by an Israeli air strike in Gaza City. The killed driver, Hamed Shehab, 30, worked for the Gaza-based news website Media 24Reuters



Relatives and friends of the al-Kaware family carry their bodies to the mosque during their funeral in Khan Younis in the Gaza Strip. The father, a member of the Fatah movement, and his six young sons were all killed in an Israeli air strike that targeted their home

Relatives and friends of the al-Kaware family carry their bodies to the mosque during their funeral in Khan Younis in the Gaza Strip. The father, a member of the Fatah movement, and his six young sons were all killed in an Israeli air strike that targeted their homeAFP



A Palestinian man walks through debris as he inspects damage following an Israeli air strike in Gaza City

A Palestinian man walks through debris as he inspects damage following an Israeli air strike in Gaza CityReuters



Palestinians inspect a house that was damaged in an Israeli air strike on a neighbouring house, in Khan Younis in the southern Gaza Strip

Palestinians inspect a house that was damaged in an Israeli air strike on a neighbouring house, in Khan Younis in the southern Gaza StripReuters



A Palestinian searches for his belongings under the rubble of a house destroyed in an Israeli air strike in the northern Gaza Strip

A Palestinian searches for his belongings under the rubble of a house destroyed in an Israeli air strike in the northern Gaza StripReuters




The Health Ministry in Gaza has reported 81 deaths thus far, saying about half were women and children though the exact breakdown remains unclear.


Israel accuses militants of deliberately endangering civilians by using homes and other civilian buildings for cover. The military has also directly targeted the offices and homes of known militants that it says are used as command centres.



Smoke trails are seen as rockets are launched towards Israel from northern Gaza

Smoke trails are seen as rockets are launched towards Israel from northern GazaReuters



A missile is launched by an Iron Dome battery, a short-range missile defence system designed to intercept and destroy incoming short-range rockets and artillery shells, in the southern Israeli city of Ashdod

A missile is launched by an Iron Dome battery, a short-range missile defence system designed to intercept and destroy incoming short-range rockets and artillery shells, in the southern Israeli city of AshdodAFP



The Israeli anti-missile Iron Dome defence system intercepts and destroys a rocket launched from the Gaza strip into Israel

The Israeli anti-missile Iron Dome defence system intercepts and destroys a rocket launched from the Gaza strip into IsraelReuters



A woman takes a photo of a car damaged when the remains of a rocket intercepted by Israel landed in Tel Aviv

A woman takes a photo of a car damaged when the remains of a rocket intercepted by Israel landed in Tel AvivAFP



Boys carry their surf boards as their lesson is cancelled following a mid-air explosion as a rocket is intercepted by the Iron Dome defence system over Tel Aviv

Boys carry their surf boards as their lesson is cancelled following a mid-air explosion as a rocket is intercepted by the Iron Dome defence system over Tel AvivReuters



An Israeli border policeman surveys damage caused to a building in a Kibbutz near the border with the Gaza Strip after it was hit by a rocket

An Israeli border policeman surveys damage caused to a building in a Kibbutz near the border with the Gaza Strip after it was hit by a rocketReuters




An Israeli Foreign Ministry spokesman said Hamas is firing rockets from "within houses and streets and neighbourhoods which are populated with civilians ... exposing these civilians to retaliation and to backfire."


Remnants of a long-range rocket fired from Gaza landed in south Tel Aviv after being shot down by the Iron Dome system.


Israel has also mobilised 20,000 reservists for a possible ground operation into Gaza.



Israeli tanks are positioned on the edge of a cabbage field near the border with the Gaza Strip

Israeli tanks are positioned on the edge of a cabbage field near the border with the Gaza StripReuters



An Israeli soldier flashes the V-sign for

An Israeli soldier flashes the V-sign for "Victory" as he stands on a tank positioned along the southern Israeli border with the Gaza StripAFP



An Israeli soldier sleeps next to a mobile artillery unit outside the central Gaza Strip

An Israeli soldier sleeps next to a mobile artillery unit outside the central Gaza StripReuters






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Israel: Mahmoud Abbas Calls Gaza Air Strike Killings 'Genocide'


Palestinian President Mahmoud Abbas attends Midnight Mass in Bethlehem

Palestinian President Mahmoud Abbas attends Midnight Mass in Bethlehem (Reuters)



Palestinian Authority President Mahmoud Abbas has declared that Israel is committing "genocide" in Gaza as the Palestinian civilian death toll from "Operation Protective Edge" continues to rise.


"It's genocide - the killing of entire families is genocide by Israel against Palestinian people," he said at a crisis meeting of the Palestinian leadership in the West Bank administrative capital of Ramallah.


Gaza's health ministry has said that the death toll now stands at 81 Palestinians dead with 22 children killed since Israel's campaign of air strikes began.


Israel claims that it is striking against Hamas militants and high-value targets such as rocket stockpiles and military training grounds.


"What's happening now is a war against the Palestinian people as a whole and not against the (militant) factions," said Abbas.


"We know that Israel is not defending itself, it is defending settlements, its main project.


"We are moving in several ways to stop the Israeli aggression and spilling of Palestinian blood, including talking to Egyptian President (Abdel Fattah) al-Sisi and UN secretary general Ban Ki-moon."


Israel has struck over 550 targets in their operation they claim is in retaliation for rockets fired at major Israeli cities such as Jerusalem and Tel Aviv.


The leader of the Anti-Defamation League (ADL) Abe Foxman condemned Abbas's comments.


"This is unacceptable language and accusations coming from the leader of the Palestinian Authority," Foxman said.


"We are used to the outrageous criticisms of Israel coming from Palestinians, but President Abbas has reached a new low in calling Israel's self-defence action, after hundreds of rockets have been launched at Israeli civilians, a 'genocide'."


Gaza-based militants, from both Hamas and the Islamic Jihad, have fired 165 rockets at Israeli cities as far as Hadera, 116km (72 miles) north of the enclave. No casualties have been caused by the missiles.


Egypt has urged both sides to halt the escalating conflict but suggested that there was little hope for an Egyptian-mediated truce.


"There is no mediation, in the common sense of the word," said Egyptian foreign ministry spokesman Badr Abdelatty.


"Egyptian diplomatic efforts are aimed at immediately stopping Israeli aggression and ending all mutual violence. (Egyptian) contacts have not yet achieved a result."



Israel: Egypt Opens Rafah Border Crossing to Wounded Palestinians in Gaza Strip


gaza rubble

A Palestinian searches for his belongings in a house destroyed by an Israeli air strike in the northern Gaza StripReuters



Wounded Palestinians can now flee the Gaza Strip as Egypt has opened its Rafah border crossing, allowing hundreds of people to escape the Israeli attacks.


Rafah is the only border through which Palestinians can exit Gaza.


Egypt notified the Palestinian Ministry of Interior in Gaza that the crossing would be opened at 9am on Thursday (10 July) for injured Palestinians and humanitarian cases.


According to Egypt's official Mena news agency, hospitals in north Sinai, which borders Gaza and Israel, have been placed on standby to receive the Palestinians.


Rafah border

Egypt opening its Rafa border is a lifeline for injured PalestiniansWikimedia Commons



Egypt claims the border is usually closed for security reasons as its forces are fighting against islamist insurgents in Sinai.


Israel launched an aerial offensive on the Gaza Strip on Tuesday (8 July), saying it wanted to stop Palestinian islamist organisation Hamas from firing rockets into southern Israel.


The offensive is part of the Israeli Defence Force's (IDF) Operation Protective Edge, aimed at restoring calm in southern Israel.


The airstrikes were carried out in retaliation to the firing of 156 rockets into Israel from Gaza.


At least 75 Palestinians have died and more than 500 been injured since the beginning of the week.


Tensions in the region escalated following the murder of three Israeli youths in the occupied West Bank and the revenge abduction and killing of a Palestinian boy in Jerusalem in July.



Qatar Holding Trims Stake in London Stock Exchange Group


Qatar Holding Lowers Stake in London Stock Exchange Group

LSE plans $1.6bn rights issue to fund Frank Russell acquisition.Reuters



Qatar Holding is trimming its 15% stake in the owner of the London Stock Exchange by a third, ahead of the British firm's $1.6bn rights issue to help it acquire US indexes group Frank Russell.


The sovereign wealth fund on 9 July instructed Bank of America Merrill Lynch and Citigroup to offload some 5% in the LSE Group (LSEG) through an accelerated book building process, unnamed sources told the Telegraph.


Based on the LSE Group's closing price of 1956 pence a share on 9 July, the 4.83% stake is worth £255m ($436.5m, €320.3m).


On 26 June, the LSEG said it will acquire US-based stock-index and asset-management firm Frank Russell from Northwestern Mutual for $2.7bn.


The purchase will be part-funded through a $1.6bn rights issue to be launched in September 2014, after the approval of the acquisition by shareholders, the LSEG said. The rest of the consideration will be funded from existing and new LSEG bank debt facilities, the firm added.


Qatar Investment Authority (QIA), the investment arm of the Qatar government and the parent company for Qatar Holding, initially bought 20.86% of the London Stock Exchange (LSE) in 2007.



India Budget 2014: Income Tax Reforms Unlikely to Help Consumers Amid Soaring Inflation


Arun Jaitley

Arun JaitleyReuters



Indian Finance Minister Arun Jaitley's maiden budget did have some good news for taxpayers but is unlikely to help the common man, struggling to make ends meet amid soaring inflation rates.


The country increased the basic tax exemption limit by 50,000 rupees ($836, £488, €614) to 250,000 rupees. For senior citizens, the limit will be 300,000 rupees.


Meanwhile, tax rates are remaining the same. Those with annual income from 250,000 rupees to 500,000 rupees will be taxed at a rate of 10%. Those earning from 500,000 rupees to 1,000,000 rupees will be taxed at 20%, and those who are earning about 1,000,000 rupees will be taxed at 30%.


Taxpayers in the 30% bracket may save up to 20,000 rupees per year as per the latest norms. That comes from the increase in basic exemption limit by 50,000 rupees and from the 50,000 increase in the investment limit.


Another notable help for taxpayers in the budget is the additional benefits to home loan customers. Home loan interest payments up to 200,000 rupees per year are tax deductible under the new terms, up from 150,000 until now.


"We will extend additional tax incentive on home loans to encourage people, especially the young, to own houses," Jaitley said during his budget speech.


Troubled by a slowdown in economic growth and soaring inflation, the lower and middle income groups in the country have been finding it very difficult to meet rising expenses. As a result, household savings rate in the country has fallen significantly.


The common people were expecting wider tax slabs, lower tax rates and new tax-saving schemes from the budget. Analysts were expecting the government to raise by at least 100,000 rupees both basic exemption limit and the deduction under investment schemes.


They were also expecting measures including a raise in education allowance, higher medical reimbursements and higher deductions for interest on housing loans.


For more details about India Budget 2014, visit our live blog.



Brazil Fan Commits Suicide Because She Was So Devastated by World Cup Agony


A outpouring of pain and anguish greeted Brazil's tonking by Germany at the World Cup

The facepaint runs as a fan endures Brazil's humiliating defeat to Germany in the World Cup semi finalReuters



A Brazil fan was so devastated by the humiliation of the World Cup hosts by Germany that she took the ultimate step and killed herself.


The victim was a 15-year-old girl in Nepal who was following the fortunes of Brazil from her remote village, located around 250 miles from the capital city Kathmandu.


According to reports, the sporty teenager hanged herself in her bedroom at home, after pals ribbed her about the staggering 1-7 defeat.


Nepalese police officer Sharad Thapa revealed what happened: "She was anxious to see Brazil in the final, but it went down to Germany," he said.


"Some of her friends started teasing her for supporting Brazil. Later in the morning, she took an extreme measure by hanging herself in her own room."


The football world was rocked by the defeat Brazil endured in the semi-final of the competition at Belo Horizonte stadium, this week.


Some fans in Rio de Janeiro took out their anger by burning vehicles in the aftermath of the defeat, while one man was filmed smashing a television set to pieces on the street.



India Budget 2014: Arun Jaitley Unveils Measured Approach to Boost Growth


India Budget 2014: Wrap

Indian security personnel stand guard near sacks containing the papers of the federal budget for the 2014/15 fiscal year, at the parliament in New Delhi on 10 July.Reuters



India's Narendra Modi-led government has unveiled incremental measures to boost capital spending in Asia's third-largest economy in its maiden budget, and reassured foreign investors that they will be treated fairly.


The neutral budget, tabled in the lower house of Parliament on 10 July by Finance Minister Arun Jaitley, has raised the limits on foreign investment in defence and insurance sectors from 26% to 49% through the Foreign Investment Promotion Board (FIPB) route which makes sure investments undergo strong scrutiny.


However, the budget continued to prevent non-residents from assuming majority control in projects that can supply weapons to India, the world's leading arms buyer.


Retrospective Taxation


The budget said the government will constitute a high-level committee to review retrospective tax claims blamed for obstructing foreign investments into India, particularly after firms such as Britain's Vodafone were served with massive tax demands.


Jaitley sought to reassure investors by promising a stable tax regime and said the government will not "ordinarily" create new liabilities retrospectively.


He, however, stopped short of ditching the 2012 legislation on retrospective taxation.


Vodafone and India have been embroiled in a multi-billion dollar tax row for over six years, ever since the British firm acquired Hong Kong-based Hutchison Whampoa's Indian mobile assets in 2007.


Jaitley said that ongoing disputes over retrospective tax claims at various courts and "legal fora" will "naturally reach their logical conclusion."


The 2012 legislation overturned a Supreme Court judgment which dismissed Vodafone's tax demand earlier that year.


Deficit Target


Jaitley, in his budget speech, said he had "accepted" the "daunting" budget deficit target of 4.1% of gross domestic product (GDP) for the financial year ending March 2015. The 45-day-old Modi regime inherited the target from the previous Congress-led coalition government.


GST


Jaitley also said the government hopes to roll out a landmark tax reform to merge India's 29 states into a common market, by December 2014.


Jaitley added that New Delhi will be "more than fair" in its dealings with India's states about how revenue will be allocated under a new GST regime.


Economists have said that the proposed nationwide goods and services tax (GST) will boost revenue, while making it easier to do business in the sub-continent.


Shubhada Rao, Chief Economist, Yes Bank, said in a note: "Fiscal consolidation is a strong takeaway. The FDI in insurance and defence and the plethora of schemes for improving the rural economy with all round focus on development programmes, are a key thrust. It's a good beginning.


"For the 4.1% target of the fiscal deficit, the heavy lifting may be done by PSU disinvestment and non-tax revenue streams."



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Israel: Dozens Killed in Gaza as Sirens Wake Tel Aviv



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ISrael Gaza

Flames engulf a building hit by an Israeli air strike in Gaza CityMohammed Abed/AFP/Getty



Israel Hamas Gaza raid

Smoke and flames are seen following what police said was an Israeli air strike in Rafah in the southern Gaza Strip.Reuters





Israel escalated its air raids on Gaza, killing up to 20 people overnight, as militants in the strip continued firing rockets and warning sirens sounded in Tel Aviv and other cities.


The Israeli military said that more than 300 Hamas targets were struck in a large aerial assault focusing on underground tunnel networks and rocket launching sites. That brought the total number of targets hit to 750.


The Israeli Defence Forces (IDF) said one of the raids targeted and killed three islamic jihad militants involved in rocket manufacturing as they travelled in a car.


Palestinian officials said that a number of civilians were the victims of night raids.


The Palestinian Health Ministry said a strike destroyed at least two homes in Khan Younis in southern Gaza, killing members of a family, including five children.


Another eight were reportedly killed in the same city, as a cafe where people had gathered to watch the World Cup was hit.


At least 75 Palestinians have died since Israel launched Operation Protective Edge to quell Hamas ability to fire rockets.


IDF said Hamas has fired more than 365 rockets in the last 3 days.


Early in the morning, the warning sirens sounded in several cities including, Tel Aviv, Dimona and Eshkol.


Most of the rockets were intercepted by Israel's defence system Iron Dome.


The IDF tweeted:





However the military said that at least three rockets have hit residential communities in the Negev desert some 80km south east of Gaza.


It was not immediately clear if there were damages or injuries.


Another rocket landed near a house in Netivot near the Gaza border and several residents were treated for shock.


Earlier, Palestinian Authority president Mahmoud Abbas said Israel was carrying out "genocide" against Palestinians.


"This war is not against Hamas or any faction, but against the Palestinian people," Abbas said.


Tensions in the region escalated to their highest for years following the murders of three Israeli teenagers in the occupied West Bank and the revenge killing of a Palestinian teenager in Jerusalem.


UN secretary general Ban Ki-moon said the situation was "on a knife-edge" and urged both parties to end hostilities.