BIG 3 IN WASHINGTON FOR ROUND 2 CASH

GG approves PM's request to suspend Parliament
Updated Thu. Dec. 4 2008 12:34 PM ET CTV.ca News Staff

Gov. Gen. Michaelle Jean has approved Prime Minister Stephen Harper's request to suspend Parliament, agreeing to put the government on hold until the end of January.
Harper addressed the media at just before noon after about two-and-a-half hours of meetings at Rideau Hall. Following my advice, the Governor General has agreed to prorogue Parliament, Harper told reporters from the front steps of the building. He said the decision reflects the will of Canadians. Last Friday I asked Canadians to give us their opinion on the parliamentary situation. That feedback has been overwhelming and very clear. They want Canada's government to continue to work on the agenda they voted for -- our plan to strengthen the economy.Harper also said that when Parliament resumes, the first item on the agenda will be the presentation of the federal budget and he will spend his time working almost exclusively between now and then on the fiscal blueprint. He opened the door to co-operating with the opposition parties on the budget, saying Canadians expect all parties to get on with it.It's the opportunity to work in the next six weeks on these measures, and I invite all the opposition parties, especially those that have a responsibility to the whole of Canada, to work with us, to inform us of their detailed position and we will be there to listen, Harper said in French. Harper was seeking a suspension of Parliament in order to avoid a confidence motion scheduled for Monday that would have likely toppled his government. The Liberals and NDP have agreed to form a coalition, with the support of the Bloc Quebecois, and have signaled their intention to bring down the government over the fiscal update that was introduced last week and would have come before Commons for a vote on Monday. They had hoped Jean would deny the prorogation request and let the confidence motion go ahead. If it did, and the government fell, Jean would have to decide whether to send Canadians to the polls for another election, or grant the coalition the chance to win the confidence of the House of Commons and possibly take over government.

Jean returned home early from a central European tour on Wednesday to deal with the political crisis that has gripped the nation. The decision Thursday followed a rare nationally televised address by Harper on Wednesday night. In the five-minute pre-taped broadcast Harper said the opposition plans to oust his government and seize power would cripple the country's economy. Harper also signaled he would be willing to work with the opposition parties in order to deliver an economic plan that will help Canada navigate perilous economic times. Liberal Leader Stephane Dion also took to the airwaves Wednesday, though only after a major delay that saw national networks filling time as they waited for the tape to arrive. Stephen Harper still refuses to propose measures to stimulate the Canadian economy, said Dion. His mini-budget last week demonstrated that his priority is partisanship and settling ideological scores. The NDP's Jack Layton said Wednesday that the Conservatives have been wasting time with partisan politics instead of dealing with the economy.

Stephen Harper simply refused to act, he said, adding the Conservatives also attacked the rights of workers and women. The opposition began to cobble together their coalition after the Tories proposed last week to cut public funding for political parties as a part of their fall economic update. The update also lacked a sufficient stimulus package, the opposition has said.

Israeli soldiers drag settlers out of Hebron house By AMY TEIBEL, Associated Press Writer DEc 4,08

HEBRON, West Bank – Israeli soldiers and police stormed a disputed building in the biblical city of Hebron on Thursday, dragging out 250 young settlers in a raid meant to send a warning to Jewish extremists fighting to keep what they see as God-promised land.But activists responded with a wave of attacks on Israeli forces and Palestinians in the West Bank, even as Israeli politicians and some settler leaders denounced them.This city of 170,000 Palestinians, with about 600 of the most extreme Jewish settlers living among them in small enclaves, is the traditional burial site of Abraham, the shared patriarch of both Jews and Muslims, and has been a focal point of Israeli-Arab violence for decades.Extremist settlers say they want to expel all Palestinians from the city and have sought to expand their footholds here as part of a militant campaign to pressure Israel to hold on to all of the West Bank.

Settlers moved in to the four-story building in March 2007 claiming they bought it from a Palestinian. The man denied selling it, and Israeli authorities did not recognize the sale as legal. Israel's Supreme Court ordered the house vacated last month, but settlers refused.In the surprise raid, some 600 soldiers and officers police rushed into the house and quickly began dragging out people one by one, their hands and legs held by teams of two or four officers.Settlers, including young girls, punched and hit soldiers. Others threw acid, police said. Security officers in full riot gear fired stun grenades and tear gas.Extremists tried to force their way back inside, but soldiers, who cleared the structure in just 20 minutes, formed a human chain to keep them out.After losing the battle, the mostly teenage settlers rioted, setting fires near at least three Palestinian houses and burning nine cars, the Palestinian fire chief said.Palestinians cowered in their homes as settlers pelted the buildings with rocks. Jewish children went on a rampage breaking windows, while Palestinians on rooftops threw stones at settlers and Israeli security forces below.About 35 settlers and soldiers were reported injured during the eviction, none of them seriously. Palestinian hospital officials said 17 Palestinians were wounded, including five by bullets.The Israeli rights group B'Tselem released video that appeared to show a settler shooting a Palestinian in the stomach at point-blank range, and Palestinians pelting the settler with rocks.In other parts of the West Bank, settlers threw rocks at Palestinian vehicles and burned an olive grove, Palestinians said.The Palestinian governor in the Nablus region, Jamal Moheisen, warned that if Israeli forces did not bring the settlers under control, we will call on the Palestinian residents to go out to the streets and fight back.In a statement late Thursday, Israeli Prime Minister Ehud Olmert warned that violent elements who attack Palestinians will face a quick, stern response from security forces.After nightfall, settlers were still scuffling with Israeli forces and Palestinians.

The raid on the building that settlers named the House of Peace was the first major West Bank eviction since a 2006 confrontation that injured dozens, but the violent reaction of extremist settlers suggested it might not be the last.Settlers have built more than 100 unauthorized outposts on West Bank hilltops, but despite promises to the U.S. that they would be removed, Israel's government has failed to take them down, instead building roads and providing services for some of them.

Though the government sought to intimidate extremists with the swift assault in Hebron, further defiance is likely to be the response from militant settlers. They believe God gave the West Bank to the Jews and no one has the right to take it away.

About 275,000 Jewish settlers live among 1.8 million Palestinians in the West Bank. Israel wants to hold on to major blocs of West Bank settlements in a land-for-peace deal with Palestinians, offering to trade Israeli territory for about 10 percent of the West Bank. Hebron is a crucible of the most extreme religion-driven settlers, and the only place with settlers and Palestinians in the same city. Clashes are frequent. Many of the most violent young Jews came to Hebron from other parts of the West Bank, including their leader, Daniella Weiss, a firebrand from the territory's north. Weiss has led shrill opposition to efforts to rein in the most aggressive settlers, backing their creation of the unauthorized settlements to try to prevent an Israeli pullback and creation of a Palestinian state. Daniella Weiss and her gang should leave Hebron. They don't belong here, Pinchas Wallerstein, director of the Settlers Council, told Israel Radio just hours before the evacuation. Israeli Defense Minister Ehud Barak said he ordered the army to evict the settlers after all attempts to persuade them to leave peacefully failed. Barak met with settler leaders earlier in the day, but they failed to reach an agreement. Some settler leaders reacted angrily to the raid. This could have been done peacefully and legally. Instead Barak chose violence, said Danny Dayan, leader of the Settlers Council. This surprised us completely.Associated Press writer Nasser Shiyoukhi contributed to this report.

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HOARDING OF GOLD AND SILVER

DOCTOR DOCTORIAN FROM ANGEL OF GOD
then the angel said, Financial crisis will come to Asia. I will shake the world.

JAMES 5:1-3
1 Go to now, ye rich men, weep and howl for your miseries that shall come upon you.
2 Your riches are corrupted, and your garments are motheaten.
3 Your gold and silver is cankered; and the rust of them shall be a witness against you, and shall eat your flesh as it were fire. Ye have heaped treasure together for the last days.

REVELATION 18:10,17,19
10 Standing afar off for the fear of her torment, saying, Alas, alas that great city Babylon, that mighty city! for in one hour is thy judgment come.
17 For in one hour so great riches is come to nought. And every shipmaster, and all the company in ships, and sailors, and as many as trade by sea, stood afar off,
19 And they cast dust on their heads, and cried, weeping and wailing, saying, Alas, alas that great city, wherein were made rich all that had ships in the sea by reason of her costliness! for in one hour is she made desolate.

EZEKIEL 7:19
19 They shall cast their silver in the streets, and their gold shall be removed: their silver and their gold shall not be able to deliver them in the day of the wrath of the LORD: they shall not satisfy their souls, neither fill their bowels: because it is the stumblingblock of their iniquity.

REVELATION 13:16-18
16 And he(FALSE POPE) causeth all, both small and great, rich and poor, free and bond, to receive a mark in their right hand, or in their foreheads:(CHIP IMPLANT)
17 And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name.
18 Here is wisdom. Let him that hath understanding count the number of the beast: for it is the number of a man; and his number is Six hundred threescore and six.(6-6-6) A NUMBER SYSTEM

WORLD MARKET RESULTS
http://money.cnn.com/data/world_markets/

HALF HOUR DOW RESULTS THU DEC 04,2008

09:30 AM -53.44
10:00 AM -17.60
10:30 AM -41.50
11:00 AM +35.52
11:30 AM +29.95
12:00 PM -31.14
12:30 PM -75.90
01:00 PM -64.36
01:30 PM -97.89
02:00 PM -39.82
02:30 PM -39.11
03:00 PM -81.00
03:30 PM -259.49
04:00 PM -215.45 8376.24

S&P 500 845.22 -25.52

NASDAQ 1445.56 -46.82

GOLD 766.8 -3.7

OIL 43.70 -3.09

TSE 300 8058.01 -238.95

CDNX 697.86 -14.22

S&P/TSX/60 488.03 -14.21

MORNING,NEWS,STATS

Dow -78 points at 4 minutes of trading today.
Dow -119 points at low so far today.
Dow +39 points at high today so far.

Q3 DRUGS SITTING ON CASH
-Pfizer $26 BILLION.
-Wyeth $11.1 BILLION.
-Bristal-Myers $7.2 BILLION.
-Merck $5.7 BILLION.
-Lilly $4.35 BILLION.

Dow +2.1% yesterday.
S&P +2.6% yesterday.
Nasdaq +2.9% yesterday.
Credit Suisse to cut 5,300 jobs,made moderate profits in NOV.
ECB & BOE expected to cut rates today.
Big 3 autos combined want $34 BILLION BAILOUT.
Sarkozy offers auto aid in $20 BILLION Stimulus plan.
Riksbank expected to cut rate by 1% today.
PAKISTAN MARCHERS ANGERED OVER BLAME OF TERRORISM.
Prime Minister Harper will ask Governor General for Prorogueation.
Harper meets with her at 9:30AM this morning.
Harper came from meeting with Governor General at 11:56AM today.
Harper:Parliament Prorogued or suspended till JAN 26,2009,BUDGET UPDATED.
OIL dips below $45 a barrel today so far.

AFTERNOON,NEWS,STATS

Dow at low -271 points today.
Dow at high +39 points today.

BIG 3 AUTO PLANS
GM'S PLAN
-Sell Saab,trim Pontiac,sell or close Saturn.
-Cut exec.pay 20-30%,bonuses eliminated.
-Work under FED oversight cmte.
FORD'S PLAN
-Sell Volvo,sell 2 plants this quarter.
-Cancel bonuses for management,Employees.
-Hybrids on market sooner.
CHRYSLER'S PLAN
-Find partners to share development costs.
-No pay increases or bonuses.
-CEO gets no Health or other benefits.
CEO WISHLIST
GM:$18 BILLION TOTAL,$4 B end of year,$6 B by MAR 2009.
$2 B by end of 2009,$6 B credit line.
CHRYSLER:$7 BILLION by end of year.
FORD:$9 BILLION Credit line.

1.5 MILLION jobs lost in the U.S.A in 2008.
EDWARD LOEF:EXPECT 15% UP SWING OF S&P 500 IN THE NEXT FEW DAYS.

WRAPUP,NEWS,STATS

Dow -313 points at low today.
Dow +39 points at high today.

Street turns cautious ahead of employment report By TIM PARADIS, AP Business Writer DEC 4,08

F 2.66 -0.19
GM 4.11 -0.79
^GSPC 845.22 -25.52
NEW YORK – A period of relative calm on Wall Street ended Thursday as stocks tumbled in the final hour of trading on growing investor anxiety about the government's November employment report.The major indexes each fell more than 2.5 percent, including the Dow Jones industrial average, which dropped 216 points.It was clear that investors were worrying that Friday's employment report would show a further deterioration in the job market; employers have already cut 1.2 million jobs this year through October, leaving the unemployment rate at a 14-year high of 6.5 percent. Economists expect the Labor Department will report that the jobless rate rose to 6.8 percent in November and that companies cut another 320,000 jobs.It's all about jobs and right now the outlook is pretty downbeat, said Alan Skrainka, chief market strategist with Edward Jones in St. Louis.The late-session decline followed a decent run for stocks, which closed higher in seven of the previous eight sessions. It also came as the heads of the Detroit automakers appeared before Congress with hopes of persuading skeptical lawmakers to save their troubled industry. While the market expects the Detroit companies will be able to win some aid from Capitol Hill, support for the troubled companies wasn't assured.General Motors Corp., Ford Motor Co. and Chrysler LLC are collectively seeking $34 billion in emergency aid.Anthony Conroy, managing director and head trader for BNY ConvergEx Group, said investors are likely taking money off the table ahead of the employment report and that there was disappointment over the appearance of the heads of the U.S. automakers on Capitol Hill.There was no clarity coming out of the autos. People were expecting some clarity, he said.According to preliminary calculations, the Dow Jones industrial average fell 215.45, or 2.51 percent, to 8,376.24.Broader stock indicators also declined. The Standard & Poor's 500 index fell 25.52, or 2.93 percent, to 845.22, and the Nasdaq composite index fell 46.82, or 3.14 percent, to 1,445.56.The Russell 2000 index of smaller companies fell 14.23, or 3.14 percent, to 439.53.GM fell 79 cents, or 16 percent, to $4.11, while Ford fell 19 cents, or 6.7 percent, to $2.66. Chrysler isn't publicly traded.On the Net:New York Stock Exchange: http://www.nyse.com Nasdaq Stock Market: http://www.nasdaq.com

Automakers face skeptical senators on aid plan By KEN THOMAS, Associated Press Writer DEC 4,08

WASHINGTON – U.S. automakers drew fresh skepticism from lawmakers Thursday in a rocky confrontation over their pleas for an expanded $34 billion rescue package they say they need to survive. Congressional analysts said one bailout plan under consideration would fall short of what the carmakers want.With time on the current Congress running out, opposition to the bailout appeared to be as strong as last week — before Detroit's Big Three auto chiefs returned to Capitol Hill with more detailed plans on how they would spend the money.Several lawmakers in both parties are pressing the automakers to consider a so-called pre-packaged bankruptcy in which they would negotiate with creditors in advance and downsize, then file for Chapter 11protection in hopes of emerging quickly as stronger companies. The Big Three have publicly shunned the notion, saying it would kill sales by destroying customers' confidence — but executives have indicated in recent days that it might ultimately be necessary.The executives all agreed in Thursday's hearing that a multibillion-dollar bailout deal would include a supervisory government board that could order major restructuring of the companies if deemed necessary for survival — similar to the results in many reorganizing efforts under bankruptcy law.United Auto Worker union President Ron Gettelfinger, aligned with the industry in pressing for the aid, told senators at a Banking Committee hearing that any kind of bankruptcy, even a pre-packaged one, was not a viable option. Gettelfinger said consumers would not buy autos from bankrupt companies, no matter the terms of the arrangement.

He also warned that in the absence of action by Congress: I believe we could lose General Motors by the end of this month. He said the situation was dire and time was of the essence.The Big Three CEOs told the senators they hoped to make amends for past blunders. "We made mistakes, which we're learning from, General Motors chief executive Rick Wagoner said. Ford CEO Alan Mulally also acknowledged big mistakes, saying his company's approach once was You build it, they will come.We produced more vehicles than our customers wanted, then slashed prices, he said. But as a result of these past mistakes, we are really focused, he said.Congressional Democrats have urged the administration to tap into an already enacted $700 billion financial bailout program to help the auto industry. The Bush administration has said that it has no intention of doing so, and would prefer aid be taken from an earlier $25 billion program to help the industry retool its plants to make their vehicles more fuel-efficient.But congressional budget analysts have privately told top Democrats that tapping that program wouldn't come close to covering the $34 billion that carmakers now say they need to survive.It would yield only $10 billion to $15 billion in short-term loans, the analysts claimed, according to congressional officials who spoke on condition of anonymity because they were not authorized to disclose the analysis.The Big Three executives made the trip from Detroit in new-model hybrid autos made by their respective companies, two weeks after a botched appeal for $25 billion in which they were chided for flying on private jets to beg for money.Chrysler CEO Bob Nardelli promised that his company, recipient of a previous government-subsidized rescue loan in the 1970s that it repaid, would repay taxpayers by 2012 and would devote itself to manufacturing fuel-efficient cars and trucks that people want to buy.Sen. Richard Shelby of Alabama, the senior Republican on the panel, complained that the pricetag on the package had jumped since the trio last appeared just two weeks ago. He pressed the automakers to explain why, and to justify how such aid would not simply prop up a failed business model for a few months ... and how are you going to pay it back to the taxpayers?

Banking Committee Chairman Chris Dodd, D-Conn., supports helping the industry, but said that detailed plans submitted earlier this week on how the companies would use low-cost federal loans to reorganize still left a lot of questions unanswered.But Dodd also said that doing nothing plays Russian roulette with the entire economy of the United States.Treasury Secretary Henry Paulson has said that the main $700 billion bailout program is intended only to be used for the financial industry.Gene L. Dodaro, the top official at Congress' watchdog agency — the Government Accountability Office — agreed with Dodd that the $700 billion package set up in October is worded broadly enough to permit it to be tapped for the automakers.

Dodaro testified that the Federal Reserve also has the authority under existing law to make loans to the domestic auto industry if it so chooses. Dodd said that both Paulson and Fed Chairman Ben Bernanke had been invited to testify at Thursday's hearing, but had declined. Sen. Bob Corker, R-Tenn., suggested that Chrysler was trying to piggyback on the other two automakers, noting that GM and Ford were publicly held companies and cannot access cash whereas Chrysler now is a privately held company 80 percent owned by Cerberus Capital Management LP. Look, you guys are in asking us for public money today, he told Nardelli. Corker said Cerberus has lots of cash but appears unwilling to invest that money in your company...I have a little trouble with that.Nardelli said that Chrysler has left somewhat hollowed out as a result of its divorce in 2007 from the German company now known as Daimler AG. But he said that Cerberus was more than willing to provide the security and the commitment that the taxpayer do recover from their investment in this company.

Earlier, Senate Majority Leader Harry Reid, D-Nev., said prospects for Congress to act this year seemed slim. I just don't think we have the votes to do that now, he told The Associated Press. The Big Three are struggling to stay afloat during the longest economic downturn in at least a quarter century, a steep decline in sales and a tight credit market. The three burned through nearly $18 billion in cash reserves during the last quarter. The bailout remains unpopular with the public. Sixty-one percent oppose providing the auto companies with billions in federal assistance, according to a CNN-Opinion Research Corp. poll released on Wednesday. Fifty-three percent said it would not help the country's economy. Associated Press writers Julie Hirschfeld Davis, Erica Werner and Jennifer Loven in Washington, Kimberly S. Johnson in Detroit, and Joe Milicia in Cleveland contributed to this report.

ECB announces record rate cut
ELITSA VUCHEVA Today DEC 4,08 @ 17:39 CET

EUOBSERVER / BRUSSELS - The European Central Bank on Thursday (4 December) cut the cost of borrowing in the 15-strong euro area by a record 75 basis points, with the institution's president, Jean-Claude Trichet, saying the eurozone's economy is expected to shrink next year, following a global trend.Global and euro-area demand are likely to be dampened for a protracted period of time, said Mr Trichet. (Photo: The Council of the European Union)The cut is obviously an important one, but it was what we had to do, Mr Trichet said at a press conference in Brussels.We considered that it was again appropriate taking into account a further alleviation to upside risks to price stability, he added.

The move comes after it was confirmed that the euro area's economy shrank by 0.2 percent in both the second and third quarters of this year, entering its first-ever recession.The ECB president also acknowledged the slowdown in the eurozone economy was set to continue.Global and euro-area demand are likely to be dampened for a protracted period of time, he said.Mr Trichet said inflation rates in the euro countries had moderated, but he stressed it was mainly due to the fall in commodity prices and a significant slowdown in economic activity, adding that global demand was expected to continue to weaken.Prior to today's decision to lower its benchmark lending rate, the ECB had already made two 50-point cuts since October.Meanwhile, the Bank of England also cut its main interest rate today from 3 to 2 percent – its lowest level since 1951.Earlier in the day, the Swedish central bank also cut its rate by a record 175 basis points to 2 percent.

Oil tumbles below $44 a barrel, gas hits new low By MARK WILLIAMS, AP Energy Writer DEC 4,08

AFP – COLUMBUS, Ohio – Oil tumbled below $44 a barrel Thursday and average gasoline prices slipped under $1.80 a gallon, both four year lows, as unemployment benefit claims hit a 26-year high and major companies announced more job cuts.The unprecedented decline in energy prices has provided some relief to consumers and businesses, it has occurred as the nation dips into recession.Fewer people have jobs to drive to. Gasoline futures for January delivery closed below a dollar, with optimism about the nation's economic health in serious decline.It was the first close below $1 since 2006, when gasoline began trading in the current format. When gasoline included the additive MTBE, it last crossed the $1 barrier in February 2004.

Veteran energy analysts were stunned as they watched light sweet crude dip nearly 7 percent, or $3.12, to settle at $43.67 on the New York Mercantile Exchange by early afternoon.Just four months ago, crude rocketed close to $150 and the average gallon of gasoline went for more than $4 per gallon. Crude has fallen nearly $27 in just one month.No one believed crude would lose $100 in value between July and December, said Tom Kloza, publisher and chief oil analyst at Oil Price Information Service.

Some analysts believe demand could evaporate further early next year.

I think the traders are looking at that and they're saying, Well, December is OK, it's relatively balanced here and there, but my goodness all of these layoffs after Christmas, the cold weather, the cocooning, the bills coming due after Christmas, January is just going to be awful, Kloza said.Dour economic reports continue to spill out during a week when the National Bureau of Economic Research declared the economy entered a recession in December 2007.The government said the number of people continuing to claim unemployment benefits last week reached 4.09 million, the highest level since December 1982, when the economy was emerging from a recession.

Factory orders plunged a bigger-than-expected 5.1 percent in October caused by big cutbacks in demand for steel, autos, computers and heavy machinery. It was the largest decrease since an 8.5 percent fall in July 2000.The Labor Department reported that initial claims for unemployment insurance dropped to a seasonally adjusted 509,000, from an upwardly revised figure of 530,000 for the previous week. That was significantly below analysts' estimates of 537,000, according to a survey by Thomson Reuters.The four-week average of initial claims, which smooths out fluctuations, increased to 524,500, also the highest level since December 1982, the department said.The U.S. work force is roughly 50 percent larger than it was in the early 1980s. As a result, the department said the proportion of workers continuing to receive jobless benefits matches a level reached 16 years ago, in September 1992, when the economy was slowly recovering from recession.Fewer jobs, fewer factory orders and slowing construction have added up to a severe drop-off in energy use, sending crude prices plunging.People are waking up to the fact that there may not be much demand, said Phil Flynn, an analyst at Alaron Trading Corp.There were signs that the economy continues to worsen. On Thursday AT&T said it was slashing 12,000 jobs, or about 4 percent of its work force. Chemicals company DuPont said it will cut 2,500 jobs and media conglomerate Viacom Inc. said it will eliminate about 850 jobs. Most retailers posted weak sales for November, despite a shopping boost the day after Thanksgiving. Wal-Mart beat Wall Street expectations and said falling gas prices may be bringing more people out to its stores. However, Costco Wholesale Corp., usually a strong performer, reported a bigger-than expected sales decline.

Oil prices fell even after central banks in Europe and elsewhere slashed interest rates in an effort to spark their economies. Prices at the pump continued to decline, falling 1.4 cents overnight to $1.789, according to auto club AAA, the Oil Price Information Service and Wright Express. That price is down 60.2 cents from just last month. Though there are signs that Americans are able to drive more with prices plunging, Flynn does not see enough demand to justify big increases in oil and gas prices. We have entered a new era of lower gasoline prices and oil prices, he said. The Energy Department's Energy Information Administration said in its weekly report that natural-gas inventories held in underground storage in the lower 48 states fell by 64 billion cubic feet to about 3.36 trillion cubic feet for the week ended Nov. 28. Analysts had expected a drop of between 61 billion and 66 billion cubic feet, according to a survey by Platts, the energy information arm of McGraw-Hill Cos. In other Nymex trading, gasoline futures fell 7.2 cents to 96.95 cents a gallon. Heating oil dropped 7.49 cents to $1.5091 a gallon while natural gas for January delivery fell 33 cents to $6.017 per 1,000 cubic feet. In London, January Brent crude tumbled $3.16, to $42.28 on the ICE Futures exchange. Associated Press writers George Jahn in Vienna, Austria, Alex Kennedy in Singapore, Christopher R. Rugaber and Martin Crutsinger in Washington and Anne D'Innocenzio in New York contributed to this report.

Russia-Ukraine gas crunch could strike again, Putin says
VALENTINA POP Today DEC 4,08 @ 18:13 CET

EUOBSEERRVER / BRRUSSELS - Europe might face gas cuts anew this winter, but would get a detailed advance warning this time, if Russia decided to turn off the tap to Ukraine over their price disputes, Prime Minister Vladimir Putin said on Thursday (4 December) during a televised question-and-answer session.We are now assuming that we will meet no problems in gas transit to Europe. If Ukraine, however, fails to comply with transit terms, or taps gas bound for Europe, we will have to cut back on our supplies to Europe, the former president said.Mr Putin's words contrasted with previous statements from both Russian and Ukrainian officials who said that they hope the gas dispute won't lead to a disruption of supplies to Ukraine or European consumers, as was the case in 2006.Ukraine carries 80 percent of Russian gas exports to Europe and has been facing serious difficulties in paying its outstanding debt to Gazprom. With its economy badly hit by the global crisis, Kiev has been forced to seek an emergency €13 billion loan from the International Monetary Fund.Mr Putin, however, showed little mercy for Ukraine's economic situation and claimed Kiev still owes Russia €2 billion for previously consumed gas, a sum contested by the Ukrainians.They ask us to keep the same prices, he said. How long can we leave in place the prices of the current year? Switching into Ukrainian, Mr Putin added: Have you lost your mind?

Naftogaz, the Ukrainian state energy company, failed to pay off in full a tranche of its debt this week, in part because costs spiralled after a collapse in the value of the Ukrainian currency.Gazprom has warned that it could double prices next year if the debt is not repaid in full.While the cost of oil has fallen by two-thirds since summer, Russia can charge its gas customers more in 2009 because gas prices trail the movement of oil by six months.

No early return as president

The Russian premier ruled out the idea of organising early elections that would see him return as president. He said he would wait until 2012 - when the presidential polls are scheduled - to decide whether to run at all. Recent decisions by the parliament to extend the presidential term from four to six years have fuelled speculation that Mr Putin may return to the post soon. He was obliged to step down this year after serving two consecutive terms. Dmitry Medvedev was elected as Russia's new president in May. Mr Putin said he had a very effective tandem relationship with Mr Medvedev. We have worked together for several years,he added.

EU verdict on Iran group creates legal quandary
PHILIPPA RUNNER Today DEC 4,08 @ 13:32 CET

EUOBSERVER / BRUSSELS - The EU's Court of First Instance has annulled the member states' latest decision to keep Iran opposition group, the PMOI, on their terrorist register, creating a legal quandary.The court verdict on Thursday (4 December) overturned the EU's July common position to label the PMOI as a terrorist organisation and to freeze its financial resources and fund-raising activity across the EU.Member states in July had said that new information arising from a counter-terrorism probe by the Tribunal de Grande Instance in Paris justified leaving it on the blacklist, but kept the new information secret.The refusal by the council [the member states' secretariat] and the French authorities to communicate, even to the court alone, the information ...has the consequence that the court is unable to review the lawfulness of the contested decision, which infringes the PMOI's fundamental right to an effective judicial review, the EU court said.The verdict is the first time the court has ruled on the EU terror register while it is actually in force.Member states issue a new blacklist every six months or so, with two previous pro-PMOI EU court rulings - in 2006 and 2008 - referring to lists which had already expired in legal terms.

The hearing in this case took place on 3 December and today, only one day later, the court has delivered its judgement. This one-day period is the quickest that the court has ever delivered its judgement following the hearing, the court statement added.The council's legal service is currently analysing if the timing means that the PMOI is off the register effective immediately, or if a follow-up EU common position amending the list is needed to enact the verdict.That's the key question. There's some legal doubt and we are examining it, an EU official said. There are many other groups on the list which have never complained. This is just one case and it doesn't mean the council is not doing its work properly, he added. What all this shows is that EU mechanisms are working well - people are duly protected and they can appeal against any decision.With this ruling, the PMOI is no longer on the list and cannot be kept on the list in future. It is now up to the council of ministers to state this publicly and to apologise to the PMOI and the people of Iran, Shahin Gobadi, a spokesman for the PMOI's sister group, the NRCI, said. The EU should compensate the Iranian resistance and the Iranian people for the damage it has caused.

Mojahedin changes spots

PMOI - the People's Mojahedin Organistaion of Iran - was responsible for attacks against the Islamic leadership in Tehran in the 1980s and 1990s but renounced violence in 2001 and gave up arms in 2003.The Paris-based NRCI - the National Resistance Council of Iran - has in the past accused the EU of suppressing the PMOI movement as a bargaining chip in negotiations on Iran's nuclear enrichment programme. The EU terrorist register is compiled by the so-called CP 931 working group, which consists of delegates from member states' interior and foreign ministries and is cleared to consult documents classified as secret.CP 931 decisions are then rubber-stamped by meetings of EU ministers, with the July common position enacted by agriculture ministers.

Six EU states fail to sign cluster bomb ban
PHILIPPA RUNNER Today DEC 4,08 @ 09:31 CET

EUOBSERVER / BRUSSELS - (corrected at 11:25) Six EU states declined to sign a historic convention against the use of cluster bombs in the Norwegian capital Oslo on Wednesday (3 December), with Finland, Poland, Romania, Slovakia, Greece and Cyprus in the recalcitrant group.Signing is open until 6 p.m., but I don't think any more will sign today, a Norwegian diplomat said on Thursday. Any countries that still want to sign in the future can do this at the UN headquarters in New York. There is no final deadline.The convention - a legally-binding document banning the production, use, stockpiling or trade in cluster bombs - was signed by 92 countries and has already been ratified by four national legislatures, including Norway, which has also transposed the treaty into national law.Cluster bombs are a form of anti-infantry ammunition that contain hundreds of mini-bomblets and are fired by artillery cannons, launched by missiles or dropped from aircraft. In some models, the bomblets automatically self-destruct, but in others they act as mines, detonating upon contact and killing or maiming civilians long after ceasefire agreements are put in place. Children are frequently victims of the weapon, attracted by their typically bright colour.

The munition was first used by Soviet and German forces against each other on Soviet territory in 1943. Both Russia and Georgia used the technology in their August war this year.The true measure of [the treaty's] achievement will be how the lives of people and communities affected change in the months and years to come, International Committee of the Red Cross president Jakob Kellenberger said.The historic process, of which the signing of this convention is a part, will only end when the use of these weapons has ceased, when stockpiles are eliminated, when contaminated areas have been cleared and when victims have been helped to rebuild their lives.Of the EU non-signatories, Poland, Greece, Romania and Slovakia have produced and stockpiled cluster bombs. Latvia has also stockpiled the weapons, while Cyprus usually follows Greek foreign policy.None of the seven have used the arms in past conflicts, according to NGO Human Rights Watch.But Polish generals ahead of the Oslo meeting told Gazeta Wyborcza they will not sign the Oslo pact until Russia does so, adding that more civilian-friendly anti-infantry weapons are too expensive.The EU is currently working on its own version of a ban for all 27 states in the bloc.

EU member states aim to conclude negotiations on a legally binding instrument that prohibits the use, production, transfer and stockpiling of cluster munitions that cause unacceptable harm to civilians and which would include provisions on co-operation and assistance, an internal EU paper dated 5 November from the office of top diplomat Javier Sloana says.The US, Russia, China, India, Pakistan and Israel - the world's heaviest producers and users of cluster bombs - also stayed out of the Oslo pact, with the US, Russia and China locked in negotiations on who goes first.

Correction: the Czech Republic was originally mentioned as having failed to sign the treaty due to technical problems with paperwork. This turned out to be incorrect, with Prague having joined the list on Wednesday.