Korea Unveils $11.4bn Stimulus After Sewol Ferry Disaster Hits Economic Growth

People attend a candlelight vigil in Ansan, to commemorate the victims of the capsized passenger ship Sewol and to wish for the safe return of missing passengers.Reuters

South Korea has announced a multi-billion-dollar stimulus after it posted disappointing economic growth in the second quarter due to declined private consumption and investment.

In the second quarter, the gross domestic product (GDP) grew 3.6% year over year, compared to a 3.9% growth in the first quarter. On a quarter-over-quarter basis, growth rate was 0.6% in the second quarter, down from 0.9% in the first quarter.

Private consumption contracted 0.3% sequentially in the second quarter, compared with 0.2% growth in the first quarter, suggesting that the April Sewol ferry accident has damaged consumer sentiment and domestic consumption.

Meanwhile, overall investment continued to decline, falling by 0.1% in the second quarter, led by a 4.2% decline in intellectual property products.

Following the weak data, the government announced a stimulus package to lift growth. The stimulus will include expanding fiscal spending by 11.7tn won ($11.4bn, £6.7bn, €8.5bn) and an extra 29tn will be extended in policy financing.

"While we are not convinced that the economic fundamentals have worsened significantly, the lower-than-expected second-quarter GDP certainly increases the political pressure for the Bank of Korea (BOK) to cut rate," Louis Lam, economist at ANZ Bank, said in a research note.

"As the export data in the first 20 days of July signalled a poor shipment flow, the upcoming trade data for the whole month will be crucial for us to reassess the policy rate forecast."

Meanwhile, Gareth Leather at Capital Economics noted that a rate cut by the central bank is unlikely as the economy is expected to show some improvement in growth over the rest of the year.

"We think the recent weakness will prove short-lived. Exports, which are the equivalent to around 50% of the economy, should continue to perform well over the coming quarters, amid stronger growth in the US and signs of recovery in the euro-zone," Leather said.

"We wouldn't rule out the possibility of a rate cut if the economy continues to weaken. However, given our expectation that the economy will recover in the second half of the year, we are maintaining our view that interest rates will remain on hold until the end of the year."

Israel-Gaza Conflict: FAA Lifts Ban on US Flights to Tel Aviv

A departure time flight board displays various cancellations as passengers stand nearby at Ben Gurion international airport in Tel AvivReuters

The Federal Aviation Administration (FAA) has lifted its ban on US airlines flying to Tel Aviv's Ben Gurion airport but warned against "the very fluid situation" over the raging Israel-Gaza crisis.

The ban was imposed after increasing rocket attacks from the Gaza Strip and was widely trumpeted as a victory for Hamas.

The FAA said in a statement: "Before making this decision, the FAA worked with its US government counterparts to assess the security situation in Israel and carefully reviewed both significant new information and measures the Government of Israel is taking to mitigate potential risks to civil aviation."

"The FAA's primary mission and interest are the protection of people travelling on US airlines. The agency will continue to closely monitor the very fluid situation around Ben Gurion Airport and will take additional actions, as necessary."

The original ban had attracted sharp criticism from Israeli supporters who insisted the security at the Tel Aviv airport is intact.

The Israeli government had even opened alternative terminals at Ovda Airport for international airlines which had expressed concern over the situation, besides keeping the Ben Gurion airport open.

Korean Airlines was the first carrier to suspend their flights to Israel over the conflict, but several others swiftly followed suit after the FAA ban.

West African Ebola Outbreak: Sierra Leone's Top Doctor Contracts the Virus

Health workers take blood samples for Ebola virus testing at a screening tent in the local government hospital in Kenema, Sierra Leone.Reuters

The top doctor battling the deadly Ebola virus in Sierra Leone has caught the disease, according to the government.

Sheik Umar Khan, 39, was leading the fight to get the tropical virus under control following an outbreak in West Africa, which has killed 206 people in Sierra Leone alone.

Health Minister Miatta Kargbo said Khan is a national hero and she would "do anything and everything in my power to ensure he survives".

Khan is a virologist who has treated more than 100 victims of Ebola. He has been transferred to a ward by medical charity Médecins San Frontieres.

In an interview with Reuters earlier this year, Khan said he had worries about contracting the disease.

"I am afraid for my life, I must say, because I cherish my life," he said.

"Health workers are prone to the disease because we are the first port of call for somebody who is sickened by disease. Even with the full protective clothing you put on, you are at risk."

Earlier this week, three nurses working in the same Ebola treatment centre as Khan were killed by

the disease.

More than 600 people have died from the virus across Guinea, Liberia and Sierra Leone, according to the World Health Organisation.

The virus is spread by contact, with symptoms such as diarrhoea, vomiting and external bleeding.

There is no vaccine or cure for it, which means the West African outbreak could continue for a long time. The only prevention methods are isolating those with the virus and anyone who comes into contact with them.

Outbreaks are believed to originate from jungle hunters who ate the flesh of apes that died of Ebola.

The disease chain continued after such animals had fed on fruit marked with bat faeces or saliva.

TransAsia Plane Crashes in Taiwan Killing 51

TransAsia plane (file photo)Xinhua News Agency

A TransAsia Airways plane has crashed after failing to make an emergency landing in Taiwan killing 51 people and injuring 7, according to local reports.

The passenger plane, carrying 58 people, caught fire upon crash landing, striking residential buildings in Taiwan's Penghu County. The flight departed from Kaohsiung Siaogang airport at around 5pm local time and was headed for Penghu Magong airport.

Aviation officials said flight GE222 aborted its initial landing and then crashed, local media reported.

Isis Smuggling $50m of Oil Monthly to fund Medieval Caliphate in Iraq and Syria

Militant Islamist fighters parade on military vehicles along the streets of northern Raqqa provinceReuters

The Islamic State, which reportedly generates $50m (£25m) a month in oil operations in neighbouring Syria, has expanded its oil business in Iraq to fund its recently declared 'caliphate.'

Having seized vast swathes of territory across Iraq, the jihadist group has begun selling crude oil and gasoline on black markets to fund its cross-border caliphate.

Militants from the Islamic State (formerly known as Isis) grabbed four small oilfields as they advanced through northern and central Iraq in June. The ultra-violent militants now control the Najma and Qayara oilfields near the northern city of Mosul, as well as the Himreen and Ajil oilfields close to the central city of Tikrit.

Islamic State Seize Iraq Oil Fields

The Islamic State has begun selling large volume of crude from Najma to Turkish traders at a heavily discounted price of around $25 a barrel, according to Iraqi officials. The militants are have also transported oil from the Qayara field to neighbouring Syria where they control a number of mobile refineries.

"We have confirmed reports showing that the Islamic State is shipping crude from Najm oilfield in Mosul into Syria to smuggle it to one of Syria's neighbours," said Husham al-Brefkani, a local government official, quoted by Reuters.

"The Islamic State is making multi-million dollar profits from this illegal trade," he added.

Tactic First Seen in Syria

Taking over energy facilities has been a trademark of the group since they were disowned by the al-Qaeda affiliated Jabhat al-Nusra. Islamic State jihadists have seized control of all the major oilfields in neighbouring Syria's Deir Ezzor province.

Sources in Syria say the oil money has been used for myriad purposes; to purchase weapons, to pay fighters, to pay off local tribes and to fund the state-building activities the Islamic State undertakes in its bid to win hearts and minds.

In rebel-held Syria, close to the oil producing hubs in Deir Ezzor province, entire oil markets have sprung up. Extraction is mostly improvised, but amounted to between 30,000 and 50,000 barrels per day in April, according to the Financial Times, which cited an oil engineer at the Syrian Observatory for Human Rights.

A Carnegie Endowment report suggested Syria's oil producing regions were generating up to $50m (£29m,€37m) per month for the group.

Impact on Turkey market

Meanwhile, the sale of smuggled oil to Turkish traders has become so significant that Turkey's own domestic fuel market has been impacted, according to BP's Turkey manager Martin Thomsen.

"The smuggled fuel coming from Syria has begun to affect us adversely since the beginning of April," he said in early July.

"Fuel sales have remarkably dropped, particularly in southern provinces," he added.

While Turkish gas station operators have held crisis meetings over the new flow of cheap crude, the trade continues unabated.

China: 'Rumour-Mongering' Lands Dong Rubin in Jail for Six Years

Online dissent against China's ruling Communist Party can land web users in jail under "rumourmongering" laws.Getty

China has stepped up its unforgiving campaign against internet "rumours" and "rumourmongers" that sees web users facing years in prison for posting criticism about the government online.

The latest victim is a blogger in Yunnan known for his criticism of the ruling Communist Party.

Dong Rubin, known to his 50,000 online followers by the alias "Bianmin", has been sentenced to six-and-a-half years in jail according to state media reports.

Dong has a history of antagonising officials in the southwestern province of Yunnan over issues ranging from environmental safety to police brutality.

He was found guilty in court of conducting "illegal business operations", "fabricating and spreading online rumours for economic gain", according to China's official Xinhua news agency.

Dong's associates also face jail. Hou Peng, general manager of Dong's Internet consulting company, was sentenced to three years in jail and the men were fined 350,000 yuan (£33,000) and 50,000 yuan respectively.

Dong's blog has gained widespread notoriety among dissenters for his outspoken stance on contentious national issues. In 2009 he criticised the government's handling of the case of Li Qiaoming, a 24-year-old man who died from severe brain injuries while in police custody.

Police said that Li died while playing a game of "hide and seek" with inmates, but nationwide online fury sparked by Dong's criticism resulted in enough pressure on authorities to conduct an internal investigation.

China's "rumourmongering" legislation, launched last September, convicts people for writing defamatory messages re-posted 500 times or viewed more than 5,000 times.

The crackdown has targeted several prominent government critics including Chinese-American billionaire blogger Charles Xue, who was arrested last August.

India: 232 Teeth Extracted from Mouth of Teenager

Teeth which were removed from 17-year-old Indian teen Ashique Gavai's mouth are seen at a hospital in Mumbai, India, July 22, 2014. During the surgery 232 teeth had been removed from the boy's mouth.Getty Images

Doctors at Sir J.J. Hospital in Mumbai, India, might have created a world record by removing 232 teeth from the mouth of a teenager.

Ashik Gavai, 17, had visited the hospital with a routine complaint of pain and swelling on the right side of his mouth. However, a series of tests revealed an abnormal growth affecting the second molar on the lower right side of his jaw.

"Initially, it was not very clear what it could be and so we decided to go in for surgery," said Sunanda Dhivare-Palwankar, head of the hospital's dental department.

Further examination during the surgery left the team of doctors stunned as they discovered scores and scores of tiny teeth popping out of that abnormal molar.

"We started picking small teeth from the abnormal molar. These pearlies were of varying sizes, some as tiny as a grain of mustard and some almost the size of a marble. At the final count, we had a total of 232 of them. The fact that it was coming from a single molar was very unique," said Dr Dhivare-Palwankar.

17-year-old Indian teen Ashique Gavai has his teeth out during the surgery at a hospital in Mumbai, India, July 22, 2014.Getty Images

Further to this, a rock-like formation was also discovered inside the affected tooth, which had to be removed by a dentist's drill.

"We had to resort to the age-old, now outdated, 'chisel-mallet' procedure to break down that hard formation as it was putting immense pressures on the jaw bone and surrounding healthy teeth," explained Dr Dhivare-Palwankar.

Dr Dhivare-Palwankar described the condition as a 'developmental anomaly', known in the medical profession as a 'Complex Composite Odonntom' or a benign tumour of the tooth. The condition causes difficulty in eating, swallowing and can lead to the swelling of the face but it is not life threatening.

The entire surgery lasted over seven hours.

"We believe this is a world record, but we will carry out more research before taking any further steps in the matter," said Dr Dhivare-Palwankar.

Extremist Israeli Rabbi Dov Lior's Controversial Calls for Destruction of Gaza

Rabbi Dov LiorReuters

An Israeli right-wing rabbi has legitimised the destruction of Gaza "so that the south [of Israel] should no longer suffer".

Dov Lior, a Zionist religious leader and chief rabbi of the West Bank's illegal settlement of Kiryat Arba, wrote in a religious ruling that according to the Torah Jews in the time of warfare may use "deterrent measures to exterminate the enemy".

The attacked nation "is permitted to punish the enemy population with whatever measures it deems proper, like blocking supplies or electricity," Lior wrote, according to Haaretz. "It may bomb the entire area based on the judgment of the war minister and not wantonly put soldiers at risk."

"The defence minister may even order the destruction of Gaza so that the south should no longer suffer, and to prevent harm to members of our people who have long been suffering from the enemies surrounding us," he wrote.

The old rabbi is not new to similar controversy. In June 2011, he was arrested by Israeli police on suspicion of inciting violence for endorsing a religious book, the King's Torah, which justifies Jews' killings of non-Jews including babies.

He stated in September 2011 that Arabs are "evil camel riders" . On one occasion, he stated that Jewish women should not use sperm donated by a non-jewish man as "Gentile sperm leads to barbaric offspring".

Two years ago, Lior compared US president Barack Obama to Haman, an enemy of the Jewish people in the Book of Esther and labelled him a "kushi" of the West - a derogatory term used to describe people of African descent.

The rabbi branded the Europeans as "Nazi collaborators" and called for a rise in West Bank's illegal settlements "to eradicate the jungle".

Baruch Goldstein, the Israeli who murdered 29 Palestinian worshippers at the Cave of the Patriarchs in Hebron, met Lior before his rampage. He was described by Lior as "holier than all the martyrs of the Holocaust".

Yemeni Al-Qaeda on its Way to Establish 'Islamic Emirate' to Catch Up with Isis' Islamic Caliphate

Yemeni al-Qaeda on its way to establish ‘Islamic Emirate’ to catch up with Isis’ Islamic caliphateReuters file photo

The extremist outfit's most powerful wing al-Qaeda in the Arabian Peninsula (AQAP) is gearing up to establish an 'Islamic Emirate' in the eastern Yemeni region based on the stringent Sharia principles, in an apparent bid to catch up with the Islamic State of Iraq and the Levant (Isis), which recently declared a Caliphate in a region encompassing parts of Iraq and Syria.

The Yemeni outfit, widely considered as the most dangerous and active arm of al-Qaeda, has issued scores of fliers in Hadhramaut region of Yemen about setting up the emirate.

Women have been warned not to step out of their houses without legal male company. The region already practices a stringent form of Islamic law and the AQAP is said to have only tightened the screws in the backdrop of intensifying changes in the Arab world.

"AQAP warns male and female Muslims in Wadi Hadramout that they must adhere to the laws of Islamic Sharia after the debauchery that we have seen in the souks. We warn all women that they have to adhere to the Sharia-enforced hijab and [wear gloves] ... men must not enter women's souks unless strictly necessary ... Whoever violates this, will have to bear punishment," according to a statement in the leaflet distributed in the region, reports local daily al-Ayyam.

According to the Sharia law, the hard-line framework of Islamic principles, punishment for such crimes includes flogging, mutilation or stoning to death.

The residents in the area have been given 10 days to fully adhere to the fresh rules. Young people in the region have also been ordered to avoid "meaningless conversations" in public.

The brochures were doled out by armed militants, who did not even cover their faces as they usually do, signalling their increasing belligerence against the Yemeni government.

Yemeni women are generally conservatively dressed with their bodies fully covered in hijabs. Although the Yemeni constitution is based on Islamic legislation, the harsher rule of Sharia is not strictly implemented in the country so far.

Earlier, the al-Qaeda had openly condemned the extreme methods of its own offshoot Isis, which marched ahead capturing several cities in Iraq and erecting an Islamic Caliphate.

US Man Arrested for Sexually Abusing Children While Volunteering in Kenya

Children living in slums in Nairobi are among some of the those helped by the Jesuit-run Upendo Children's Home, now at the centre of a child sex abuse scandalGetty

A 19-year-old man from Oklahoma, US is facing trial for sexually abusing children while volunteering at a children's home in Kenya.

Matthew Lane Durham has been charged in Oklahoma City federal court with four counts of travelling to engage in illicit sexual conduct and aggravated sexual abuse of children of both sexes.

He is accused of engaging in sex acts with as many as 10 children while volunteering at Upendo Children's Home, an organisation that assists neglected children, from April to June 2014. Durham has volunteered with Upendo since 2012.

Durham initially denied the allegations but later admitted he had been "struggling with homosexuality and child pornography", court documents state.

The accused kept graphic written statements documenting the alleged incidents, which were passed over to the US Embassy in Kenya. The embassy requested an American law enforcement agency pursue charges on June 30 following a complaint from the care home.

A live-in caretaker at the children's home became suspicious of Durham's behaviour and approached the children who told her about the abuse, an affidavit states.

Durham's lawyer Stephen Jones told The Oklahoman newspaper that the complaint filed by Upendo care home is "shot through with inaccuracies" and that his client is the victim.

Durham returned to his home city of Edmond, Oklahoma last month where he was arrested on Thursday [17 July] and is now being held without bail before a preliminary hearing on August 1.

He faces four counts of sexual abuse and if convicted, faces up to life in prison.

Still Think They're Cute? Sinister Meerkats Banish Females That Breed and Kill Grandchildren

Meerkats have a sinister side, banishing females that produce offspring and killing her young.

Published in the journal Nature Communications, researchers at the University of Edinburgh found that their infanticide serves an evolutionary purpose – to boost reproductively among the alpha pair.

Meerkats, which are part of the mongoose family, live in groups with a dominant breeding pair and adult helpers.

The alpha pair banishes any other females that reproduce and kill their grandchildren so they have plenty of resources to help rear their own pups.

The researchers found that this behaviour, also found in other animals including ants and bees, is an effective method of protecting reproduction.

Scientists gave contraceptive injections to adult female helpers living in 12 different market colonies in the Kalahari Desert, meaning they could not have pups for six months.

Over this period, the alpha females were less aggressive and hunted more, which resulted in them gaining more weight and having bigger pups.

"When subordinates are prevented from breeding, dominants are less aggressive towards subordinates and evict them less often, leading to a higher ratio of helpers to dependent pups, and increased provisioning of the dominant's pups by subordinate females," the authors wrote.

"When subordinate breeding is suppressed, dominants also show improved foraging efficiency, gain more weight during pregnancy and produce heavier pups, which grow faster. These results confirm the benefits of suppression to dominants, and help explain the evolution of singular breeding in vertebrate societies."

Commenting on the findings, Matt Bell, from the University of Edinburgh, said: "The meerkat way of life is a paradox, in which alpha females will attack their daughters, banish them from the group and infanticise their offspring.

"Our study reveals that dominant animals are worse off when subordinates in their group try to breed – explaining why they brutally suppress others much of the time."

China's Xi Meets Fidel Castro and Praises Socialist Bond with Cuba

Cuba's President Raul Castro (R) shakes hands with China's President Xi Jinping (C) as Ecuador's President Rafael Correa looks onReuters

China's President Xi Jinping hailed the socialist ties between China and Cuba on the first day of his visit to the Caribbean island.

Xi received a warm welcome as a military guard of honour greeted him at the Palace of the Revolution. He later met with Cuba's long-time revolutionary leader Fidel Castro, according to reports in Xinhua news agency.

The pair discussed bilateral ties, the international situation and other issues of common concern during the meeting, Xinhua reported.

Cuban President Raul Castro said ties with China are "at their best in history" while Xi heralded the unique partnership between the allies.

"I feel that as socialist countries, China and Cuba are intimately united to fight for the same missions, ideals and goals. Currently, China has played the bugle to begin to dig deeply in our reforms, while Cuba is in the process of updating its economic model," Xi said.

"Both countries stand before historic, magnificent and arduous missions. China is full of confidence regarding the future development of relations between our country and Cuba and we will always be good friends, partners and brothers of Cuba and we will work together to bring relations between China and Cuba to new heights," he added.

China's generous trade credits have cemented its positon as Havana's largest creditor while the only country to conduct more trade with Cuba is Venezuela.

Havana is hoping a range of economic agreements can be reached on the trip as it seeks to draw in foreign investment to boost its sanctions-battered economy.

President Castro is also keen to seal trade deals as Cuba moves away from a strict socialist model towards a reformed economy. Bilateral trade between China and Cuba reached $1.4bn in 2013.

For Xi, Cuba is the last stop on a four-country tour of Latin America which have included visits to Venezuela, Argentina and Brazil.

India's CNX Nifty Share Average Hits Historic High

India's Nifty share average hits historic high on 23 July.Reuters

India's S&P CNX Nifty share average pared gains on 23 July after striking a historic high in Wednesday morning trade, led by gains in blue-chip stocks that benefitted from continued foreign-investor buying, while higher Asian stocks also helped prop up sentiment.

The NSE Nifty was trading 0.08% lower to 7,762.00 points at 13:58 IST, after it rose 0.53% to hit a record high of 7,809.20 points earlier in the day, beating its previous all-time high of 7,808.85 struck on 8 July.

The benchmark S&P BSE Sensex share average was trading 0.02% higher to 26,030.08 points at 13:56 IST, after it rose 0.62% to 26,188.64 points, just shy of its historic high at 26,190.44.

Nifty picture.Reuters

The Nifty and the Sensex have gained some 23% this year on strong foreign inflows. Foreign investors expect the Narendra Modi regime to roll out reforms that will boost growth in Asia's third-largest economy, suffering its worst slowdown in over 25 years.

But market participants said further gains are hinged on the execution of reforms by the newly elected government, progress of the monsoon and the Reserve Bank of India's next policy review on 5 August, Reuters reported.

The central bank is expected to leave rates on hold until inflationary pressures fade.

Goldman Sachs, in a report, said it is "strategically bullish" on Indian equities, with a 12-month Nifty target of 8,600 points.

Goldman, however, said further gains will be "less sharp, more earnings driven and contingent upon reform execution."

Dhiraj Agarwal, Director, Institutional Equities, Standard Chartered Securities told CNBC-TV18 that he expects the Nifty to touch 8,900-9,000 points over the next one year.

According to Agarwal, the tide has turned around for the market. However, he said a correction of around 10% at some point was inevitable.

Blue-Chip Stocks

Shares of ICICI Bank, the nation's second-largest bank by assets, rose 1.5% earlier in the day.

Software exporter Tata Consultancy Services and rival Infosys added 1.6% and 2.4% in morning trade.

Aluminium producer Hindalco Industries rose 2%.

Overseas investors purchased Indian shares worth 4.12bn rupees ($68.5m, £40.1m, €50.9m) on 22 July, marking inflows of $620.86m over five successive days of buying, exchange and regulatory data showed.

India: Hindu Shiv Sena MPs Force Muslim Worker to Eat during Ramadan

Arshad Zubair was allegedly force fed by some members of Hindu party Shiv Sena.Youtube

A Muslim worker has allegedly been forced by MPs from the Hindu party Shiv Sena to break his fast during Ramadan in New Delhi.

At least 11 MPs - apparently angry as they had not been served Maharashtrian food - forced catering supervisor Arshad Zubair to eat a chapatti, the Times of India reported.

The incident took place during a function at the Maharashtra Sadan centre.

Shortly after, Indian Railway Catering and Tourism Corporation (IRCTC), the subsidiary catering firm providing food for Maharashtra Sadan, suspended its service in protest against the incident.

The catering company wrote an email to the Maharashtra Resident Commissioner saying that Zubair had been "deeply pained and hurt... as religious sentiments are attached".

IRCTC added that the parliamentarians were "complaining about the services of electrical, civil, housekeeping, catering, etc. which they are facing from the last several months in the premises of Maharashtra Sadan.

"The entire delegation along with the electronic media and manager, Maharashtra Sadan, walked inside the public dining hall and started throwing chafing dish covers in the buffet area. They also issued physical threats to the kitchen and service staff while using highly objectionable language."

Shiv Sena denied force-feeding Zubair, saying that the allegations "are totally baseless. It's absolutely wrong. People who are giving it a religious angle should be taught a lesson."

Party member Shrikant Shinde, who was present at the function, said: "We didn't force anyone to break his roza [fast]. These are false allegations. We were protesting against poor service and bad food, that's all."

MP Arvind Sawant said: " Whoever gave the news has given false information. I request that religious sentiments not be played with and that strict action be taken against whoever did this. If it happened earlier, why is he complaining only now? All these are lies."

The Maharashtra Sadan apologised to the employee despite Shiv Sena denying the incident took place.

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China Food Scandal: 100 Tonnes of Stale Meat Found at Shanghai Husi and Five Employees Detained

Employees work at a production line prior to a seizure conducted by officers from the Shanghai Food and Drug Administration, at the Husi Food factory in Shanghai, July 20, 2014.Reuters

Shanghai's Food and Drug Administration said it seized more than 5,000 boxes of expired meat from warehouses of Shanghai Husi Food after a raid, following allegations that the firm supplied stale meat to food companies including McDonald's and Yum's KFC.

China's CCTV reported on its website that around 100 tonnes of the expired produce has been sealed by the authority, which will be examined as part of an ongoing investigation.

Shanghai police had already detained five people employed at Shanghai Husi, including its quality manager, in connection with a probe into the company.

Meanwhile, an official said the activity was an organised effort by the supplier.

"We found that some of the illegal conduct was not that of certain individuals but was an arrangement organized by the company," Gu Zhenghua, deputy director of the Food and Drug Administration's Shanghai bureau, told the official Xinhua News Agency.

Nine companies including KFC, McDonald's, Burger King and Papa John's have used products ranging from beef, chicken and pork, from the Shanghai Husi. Following the outbreak of the scandal, the companies apologised to Chinese customers and said they are taking the concerned products off shelves.

On 21 July, operations at the Shanghai Husi were suspended and all of its meat products were ordered to be taken off the shelves. Shanghai Husi Food is the Chinese branch of privately held US-based food supplier OSI Group LLC.

Chinese local media earlier reported that Shanghai Husi Food sold chicken and beef past their expiry date to international food chains including McDonald's, KFC and Pizza Hut. KFC and Pizza Hut are owned by US-based Yum Brands.

Undercover reporters found Husi Food workers reprocessing and repackaging meat products whose due date had already expired.

Food safety has been a serious issue in China ever since the 2008 milk scandal when infants fell ill or died after consuming tainted milk powder.

The China daily reported that the government should not be lenient to such food crimes and it should severely punish the guilty.

"Should they be found guilty, those at Husi Food should not get away with their harmful acts simply because it is a foreign-funded firm. Otherwise it will only encourage others to take it for granted that the cost of cutting corners is much lower in China," the newspaper writes.

"Lawmakers reviewing the amendment of the Food Safety Law should understand the message from this scandal: that China has already paid a heavy price for too lenient penalties on food safety crimes in the past decades."

US Judge Orders Argentina and Vulture Funds to Meet Continuously Until Settlement Reached

Argentina's Economy Ministry's Legal and Technical Secretary Federico Thea arrives at the office of a court-appointed mediator for a meeting on Argentina's dispute with holdout investors.Reuters

US judge Thomas Griesa, who is seeking to settle a long-drawn dispute between Argentina and the holdout creditors who did not take part in the country's debt restructuring in 2002, ordered the parties to meet with a court-appointed mediator "continuously until a settlement is reached.

The order comes as time is running out for Argentina to avoid a fresh default.

"That is about the worst thing I can envision. I don't want that to happen," Reuters quoted Griesa as saying.

Meanwhile, Jonathan Blackman, a lawyer representing Argentina, said a deal would be "unlikely, if not impossible" even with around-the-clock talks.

"It simply can't be done by the end of the month," he said.

Griesa appointed Daniel Pollack as a mediator between the parties on 23 June. Despite multiple talks, the parties are yet to reach an agreement. Another meeting is scheduled on 23 July.

Argentina has been engaged in a long legal battle with hedge funds led by Elliott Management and Aurelius, which refused to take part in the country's debt restructuring. About 92% of the country's creditors agreed to swap debts and accept less money.

In a major blow to the government, Griesa earlier gave a ruling that bars Argentina from paying the holders of its restructured debt unless it pays the hedge funds.

Following the adverse order from Griesa, Argentina claimed that if the country paid the suitors on their terms, it would lead to claims from other holdouts of around $15bn (£8.8bn, €11bn) in debt.

The government's coupon payment to restructured bondholders through a New York bank had earlier been blocked by Griesa. As a result, the country is facing a technical default by the end of July if it does not make a settlement with the so-called "vulture funds".

Despite the bitter spat with them, Argentina will have to settle with the holdout funds as it has few alternatives to avert a default, which would damage its reputation further in the international capital market.