CHRYSLER SHUTS PLANTS

RICE TEXT VIDEO AT UN
http://www.state.gov/secretary/rm/2008/12/113242.htm

RICE QUARTET REMARKS
http://www.state.gov/secretary/rm/2008/12/113219.htm

RICE INTERVIEW DEC 9,08
http://www.state.gov/secretary/rm/2008/12/113016.htm

QUARTET PRESS STATEMENT
http://www.state.gov/r/pa/prs/ps/2008/dec/113216.htm

BUSH TEXT AT ARAB EMERITES
http://www.whitehouse.gov/news/releases/2008/01/20080113-1.html

BUSH ON MIDEAST
http://www.whitehouse.gov/infocus/mideast/

UN council endorses US-led Middle East peace talks
Tue 16 Dec 2008, 17:58 GMT

UNITED NATIONS, Dec 16 (Reuters) - The U.N. Security Council on Tuesday declared that U.S.-brokered negotiations between Israel and the Palestinians are irreversible and urged both sides to redouble efforts to secure peace.The declaration was at the heart of a resolution drafted by the United States and Russia. The resolution, which passed 14-0 with Israel's enemy Libya abstaining, was the first adopted on the Middle East crisis in nearly five years.The U.S. and other delegations had hoped for a unanimous vote in favor of the two-page text.Libyan U.N. Ambassador Giadalla Ettalhi criticized the text for not condemning Israel's treatment of the Palestinians, which he described as basically a crime against humanity.Disregarding such practices is an invitation to continue such behavior, he told the council.

Ettalhi had wanted the resolution to mention several Palestinian complaints, including the blockade of the Gaza Strip and Israeli settlement in Palestinian areas.

Palestinian negotiator Saeb Erekat welcomed the resolution, but added that he hoped it will not be added to the archives of other resolutions that have not been implemented so far.U.S. officials said the point of the resolution was to endorse the goals of talks on Palestinian statehood launched in November 2007 by the administration of President George W. Bush in Annapolis, Maryland, while avoiding specific disagreements.The adopted resolution only indirectly addresses the complaints of the Palestinians and Israelis by urging them to refrain from any steps that could undermine confidence or prejudice the outcome of the negotiations.It recognizes progress made in the talks and calls for an intensification of diplomatic efforts aimed at securing a comprehensive, just and lasting peace in the Middle East.

BUSH LEGACY

The Republican administration had wanted a deal on Palestinian statehood by the end of this year but all sides now say that will not happen. Bush leaves office on Jan. 20, when Democrat Barack Obama will become U.S. president.U.N. diplomats have said the Bush administration, highly unpopular in the Arab world, hopes this resolution will help secure it a positive legacy for its Middle East policies and counter criticism it has faced for its 2003 invasion of Iraq.U.S. Secretary of State of Condoleezza Rice described the situation in the Middle East as catastrophic when Bush took over from his predecessor Bill Clinton in 2001.British Foreign Secretary David Miliband said the lack of a peace deal so far did not mean the Annapolis talks failed.The Annapolis process has not delivered a Palestinian state but the absence of an Annapolis process would have left us much worse off, he said. (Additional reporting by Jerusalem bureau; Editing by Howard Goller)

New resolution on Mideast peace passes at UN,With Bush set to leave, the administration tries to nudge forward the process it started in 2007.By Howard LaFranchi Staff writer of The Christian Science Monitor from the December 17, 2008 edition

United Nations, N.Y. - The Bush administration, looking to shore up its foreign-policy legacy, and the international community, hoping to influence the future Obama White House, are teaming up to press the Middle East peace process forward. It's an against-the-odds attempt. But the first United Nations Security Council resolution on the peace process in five years – since the diplomacy-stalling Iraq war in 2003 – was approved Tuesday. The vote was 14 to 0, with Libya abstaining. The idea is to show broad support for keeping the peace process that was started by President Bush a year ago on its rails into the next US presidency. The resolution, sponsored by the US and Russia, has little binding impact but sends a number of signals. First, it indicates, especially to the Israelis and Palestinians, that even though the so-called Annapolis process did not result in a peace agreement by the end of Mr. Bush's term, progress has been made and should be built upon. And second, a signal goes out to President-elect Obama that the peace process should not start over from Square 1 when he takes office. The irony of this second point is that it is promoted in particular by the Bush administration, which wanted nothing to do with the negotiation structure left behind by the Clinton White House.

The peace process is confronting a period of transition on more fronts than one, as Vitaly Churkin, Russia's ambassador to the UN, noted repeatedly before the vote. We believe that the effort has to be pinned down, and it has to continue without a pause, which may be there because of some political circumstances – change of administration in the United States, elections in Israel, possible elections in the Palestinian autonomy, he said. But the political context is just one reason that some see the resolution having little practical impact. Arab officials who attended a Monday meeting of the Quartet of powers shepherding the peace process – the US, Russia, the UN, and the European Union – expressed frustration over the lack of major progress toward a settlement and a Palestinian state. The resolution could even set back progress if it had the effect of enshrining an unsuccessful approach to peace, some analysts say. A Security Council resolution that provides explicit support for the two-state solution is a good thing. But if it locks in a format or negotiating approach, in particular one that after a year has provided ample proof of not working, then it is a bad thing, says Philip Wilcox, a former US diplomat who is now president of the Foundation for Middle East Peace in Washington. Condoleezza Rice, who was in New York Monday and Tuesday for what could be her last appearance at the UN as secretary of State, defines the Annapolis process as both bottom-up and top-down – meaning it is not simply the US and other powers knocking the parties' heads and telling them what they have to do. Indeed, Secretary Rice has been criticized for leaving the two sides on their own in negotiations and not playing the traditional American go-between. But, she insists, considerable progress [has been made] on the core issues.

The two sides have made some progress on incremental issues, Mr. Wilcox says, but none on the core issues – such as borders, status of Jerusalem, and Israeli settlements. Israel is supportive of the resolution, said Gabriela Shalev, Israel's ambassador to the UN, speaking to reporters Tuesday in New York. One reason for Israel's stance, she says, is that the resolution gives support to the Annapolis process and its emphasis on bilateral (instead of multilateral) negotiations. We are committed to the peace process, but the peace process is something that has to go on between the parties themselves, Ambassador Shalev says. There can be some kind of pushing from the outside, but in the end, it must be the two parties that reach an accord. Even some officials who believe considerable progress has been made over the past year – for example, in creating viable Palestinian security forces in the West Bank – say the resolution reflects the wishes of its sponsors and in particular the personal drive of Rice. This has become something of a personal thing for her, said a senior European official, who wished not to be named because the diplomatic discussions over the resolution were ongoing. You have to give [Rice] credit: She has managed to push the parties further down the road.

HERBERT GRUBEL ON THE AMERO - VIDEO
http://britanniaradio.blogspot.com/2008/12/father-of-amero-herbert-grubel-speaks.html#links

WHEN MESSIAH COMES - AUDIO
http://britanniaradio.blogspot.com/2008/12/when-messiah-comes.html#links

CNN NEWS VIDEO
http://edition.cnn.com/video/

LAURIE ROTH SHOW 10PM-1AM MON-FRI
http://www.usaradio.com/listen_live_usa2.php

YAHOO NEWS VIDEO
http://news.yahoo.com/video

MIDEAST CONFLICT NEWS
http://news.yahoo.com/video/1874;_ylt=A0wNcxFdg6xIgbkAwD6z174F

ABC NEWS VIDEO
http://news.yahoo.com/video/2461

FOX NEWS VIDEO
http://news.yahoo.com/video/3074

FOX BUSINESS VIDEO
http://news.yahoo.com/video/3045

AP NEWS VIDEO
http://news.yahoo.com/video/2529

BBC NEWS VIDEO
http://news.yahoo.com/video/2918

REUTERS VIDEO NEWS
http://news.yahoo.com/video/2704

AFP NEWS VIDEO
http://news.yahoo.com/video/3091

CNBC NEWS VIDEO
http://news.yahoo.com/video/3245

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 18,2008

09:30 AM +7.33
10:00 AM -19.75
10:30 AM +2.97
11:00 AM +19.52
11:30 AM -22.94
12:00 PM -3.42
12:30 PM -54.16
01:00 PM -35.76
01:30 PM -59.26
02:00 PM -98.52
02:30 PM -164.79
03:00 PM -148.83
03:30 PM -285.74
04:00 PM -219.35 8604.99

S&P 500 885.35 -19.07

NASDAQ 1552.37 -26.94

GOLD 853.80 -14.52

OIL 36.85 -3.21

TSE 300 8370.39 -353.72

CDNX 699.94 -23.52

S&P/TSX/60 507.27 -22.57

MORNING,NEWS,STATS

Dow +22 points at 4 minutes of trading today.
Dow -35 points at low.
Dow +35 points at high.
YEAR TO DATE:
Dow -33.48%
Nasdaq -40.45%
Hatfield has a hold on rating on UPS.

TARP IN THE BLACK:
-Value of preferred +$2.7 BILLION
-Value of Warrants +$5.1 BILLION
-TOTAL +$7.8 BILLION(3.17%)

FEDEX:
Year to date -28.26%
3 YR performance -35.97%

PHILADELPHIA FED:
Prices Paid -33.2(DEC)Vs -30.7(NOV)
Index -32.9(DEC)Vs -39.3(NOV)
New Orders -25.2(DEC)Vs -31.4(NOV)
Prices Recieved -37.8(DEC)Vs -15.5(NOV)
Employment -28.7(DEC)Vs -25.2(NOV)

AFTERNOON,NEWS,STATS

Dow -62 points at low today so far.
Dow +56 points at high so far today.

OIL WHATS NEXT?
$40 oil? Pump price $1.90
$35 oil? Pump price $1.76
$30 oil? Pump price $1.49
Pump Price Today $1.67

GERALD CELENTE PREDICTIONS (NEXT YEAR):
-Riots around the world already due to economic conditions.
-Massive firings and raising taxes.
-JAN 09 Major Retailers going bankrupt due to bad Christmas sales.
-FEB 09 Empty stores due to retail Bankruptcies.
-Food riots,Housing Riots this winter.
-Commercial Real Estate and Credit Card Companies Collapse.
-Going into Greater depression than the last.
-People hitting the streets due to hopelessness,Revolution.
-Worst rioters will be students who owe loans.
-People will rebell through:Internet,Streets,Riots.
-Government steps in with Military in the streets to control riots.
-Crime bills by Government to bring troops in streets.
-Possible Bank Holidays,can't get money from your accounts,money devalued.
-American Empire will fall the way Russia did.
-Mideast and Iran the trouble spots due to oil.
-2012 the target date for the worst.

WRAPUP,NEWS,STATS

Dow -296 points at low.
Dow +56 points at high.
Dow -2.4% today.
S&P -2.1% today
Nasdaq -1.7% today.
S&P 500,Nasdaq on track for 2nd conseccutive weekly gain maybe.
Energy,Materials and Industrials drag down stocks today.
Oil at New 4 1/2 year low,falls below $38.00 as low as 36+.(JUNE 2004)

EU loosens state aid rules, feels pressure on budget deficits
VALENTINA POP Today DEC 18,08 @ 09:37 CET

The European Commission has given in to calls to loosen up rules on state aid in order to tackle looming economic recession, while some national governments are piling on the pressure for a similar amnesty on their widening budget deficits.These changes are justified given the exceptional economic conditions, competition commissioner Neelie Kroes told a press conference on Wednesday (17 December).But given that these are temporary circumstances, today's measures must also be temporary, she added.Under the changes, which took effect Wednesday, governments will be able to grant direct aids and susbsidised loans of up to €500,000 without notifying the commission. This is more than double the current €200,000 threshold, above which national governments face long procedures and delays.Governments may also offer guarantees for loans to firms at a reduced premium, as well as subsidise loans and provide risk capital aid of up to €2.5 million per company per year, rather than the €1.5 million that is currently the case.The new measures come after several member states raised their voices in the last few weeks against the lack of flexibility in the commission's rules.Ms Kroes rejected the criticism, saying that the EU executive proved it was able to act swiftly and that the delays were caused by countries who did not provide all the necessary information.

Governments want free rides for their deficits

Meanwhile, member states with growing budget deficits, such as France, Italy, Greece and Ireland are putting the commission under increased pressure to loosen up not only state aid rules, but also on the stability pact that binds eurozone countries not to have a deficit of more than three percent of the gross domestic product (GDP). Failure to comply with this provision can trigger expensive fines for the national governments.Commissioner Joaquin Almunia, responsible for economic and monetary affairs, has already indicated that a deficit of some decimal points over the three percent threshold would be allowed next year.Yet according to EU diplomats quoted by the German daily Suddeutsche Zeitung, more and more countries want to loosen or even temporarily lift the provisions of the stability pact, an idea firmly rejected by Mr Almunia.Mr Almunia was told not to voice his concerns about the stability pact by the four member states, the German paper reports.Meanwhile, Berlin is worried that if such attitudes prevail, the pact will die in the end, the Suddeutsche Zeitung wrote.Allied with Germany on the matter are Austria, the Netherlands and Finland. Yet even Germany might soon see its deficit expanding to close to the three percent threshold. After having approved a first stimulus package and with a second one in the works, Berlin's debt is expected to soon reach at least €40 billion.

S. Korean lawmakers brawl over US free trade pact By JAE-SOON CHANG, Associated Press Writer – Thu Dec 18, 12:39 pm ET

SEOUL, South Korea – Brawling South Korean lawmakers tried to sledgehammer their way into a parliamentary meeting room barricaded by the ruling party as the National Assembly descended into chaos Thursday over a free trade agreement with the United States.Opposition parties were incensed by the ruling Grand National Party's move to submit the agreement to a committee on trade, setting in motion the process for the accord to win approval in the legislature.Security staff and aides from the ruling party stood guard outside the room to keep opposition lawmakers away after the committee's GNP-affiliated chairman invoked his right to use force to keep order in parliamentary proceedings.Scuffles broke out as dozens of opposition members and their aides attempted to push their way into the office. TV footage showed people from both sides shoving, pushing and shouting in a crowded hall at the National Assembly building amid a barrage of flashing cameras.Opponents later used a sledgehammer and other construction tools to tear open the room's wooden doors, only to find barricades of furniture set up inside as a second line of defense.Cable news channel YTN reported that an electric saw was used to open the door. YTN footage showed security guards spraying fire extinguishers at those trying to force their way inside and one man with blood trickling down his face.The opposition attempt failed, and 10 GNP legislators introduced the bill to the committee.This is a clear violation of law, the main opposition Democratic Party said in a statement, accusing the GNP of illegally occupying the parliamentary chamber and unilaterally introducing the bill. This is a declaration of war against the opposition and the people.Clashes between lawmakers are not unusual in the National Assembly. Such violence has long been cited as one of the worst ills of South Korean politics.

South Korea and the United States signed the accord that calls for slashing tariffs and other barriers to trade in April last year after 10 months of tough negotiations, though neither side's legislature has yet ratified it — the key step needed for it to take effect.The pact is the largest for the U.S. since the North American Free Trade Agreement with Canada and Mexico and the biggest ever for South Korea. NAFTA, signed in 1993, took effect the following year.Proponents in both countries say it would not only expand trade but further cement ties between Washington and Seoul — key security allies who have cooperated on issues such as North Korea for decades.Opponents counter that it will cause pain to key sectors in both nations — agriculture in South Korea and automobiles in the United States.

GNP legislators had locked themselves in the committee room earlier in the day to head off any opposition attempts to occupy the chamber — the only place where the bill can be introduced.After a subcommittee review, the bill would be put to a vote at the committee before reaching the full parliamentary session for a final vote.

The GNP says it aims to pass the bill by year's end. The party has a majority in both the committee and in the entire parliament, with 172 seats in the 298-member unicameral National Assembly. But the process is expected to be tough going because opposition parties say they will do whatever possible to stop it.The Democratic Party says the trade deal should not be approved until the government comes up with better measures to protect farmers and others expected to suffer from increased U.S. imports.The ruling GNP says the trade pact should be approved as early as possible because South Korea — a major exporting nation — stands to gain much from the deal.

Amid concern the administration of President-elect Barack Obama might ask to renegotiate the agreement, supporters of the pact believe early ratification by Seoul could also put pressure on the U.S. Congress to do the same.

Europeans fearful of recession and energy disruptions
VALENTINA POP Today DEC 18,08 @ 18:07 CET

People across Europe have a grim view of the economic outlook for 2009, according to a new survey of European Union citizens. At the same time that Europeans are worrying about their wallet, they are also fretting about recent developments in the Caucasus, with three out of five thinking the Georgian conflict could have a negative impact on the EU's energy security.The new Eurobarometer reflects the difficult times in which we currently live. Citizens are clearly very concerned by the economic crisis, Margot Wallstrom, EU commissioner for institutional relations and communication strategy said about the regular European Commission survey released on Thursday (18 December). She in particular noted that despite growing concern about many different global issues, support for the EU has not however dropped since the spring, saying this suggests that people see the EU as part of the solution.More than two–thirds of EU citizens (69%) consider the situation of their national economy to be bad, a 20 percent rise since last year, while 58 percent of Europeans consider the bloc's economy as a whole to be in a bad shape – a 31 percent increase since 2007.Asked about the world economy, 71 percent of EU citizens also thought it was in a bad way. The survey was carried out shortly after the collapse of the Lehman Brothers investment bank and the publication of commission forecasts announcing an EU-wide economic slowdown and recession, but still some time before the crisis had fully developed.Over half of Europeans now expect employment (53%) and the economy (51%) within their countries to worsen next year.Inflation and the economy are now the two most important issues, Europeans indicated (37 percent each).

Meanwhile, trust in the EU has continued to decrease gradually. General support for EU membership has increased by one percent since spring 2008, reaching 53 percent, yet the figure still marks a drop on last year (58%). Irish respondents were the most positive, with 79 percent saying that their country has benefited from EU membership, followed by Estonians (78%), Slovaks (77%), Danes and the Dutch (76%).

Hungary, which has been facing serious economic problems during the financial crisis, was the only country where the majority of the respondents (51%) said EU membership has not been beneficial. Ahead of the crisis, support for membership had been an even 50 percent.The United Kingdom and Cyprus (46% each) also maintained a majority of respondents sour on the 27-country bloc.Trust in the European institutions has also worsened. Support for the European Parliament (51%) dropped one percent since spring and four since 2007, the commission received the same ranking as in spring (47%), but dropped three percent since last year, while the European Central Bank dropped two percent since spring. On the other hand, the number of respondents who answered that they explicitly do not trust these three institutions has increased markedly, with those distrustful of the commission rising to 30 percent up from 27 percent in the spring and those lacking faith in the parliament climbing to 31 percent also up from 27 percent. The central bank fared the worst out the EU institutions, however, with the number of those distrusting the ECB rising six percent to 30 percent up from 24 percent.

Georgian war impacts energy security

Three out of five Europeans think that the August conflict between Russia and Georgia could have an impact on the security of supply in the EU (60%). Concern that the Georgian conflict may affect the energy supply in the EU is greatest in Greece, a country highly dependent on Russian gas imports, where 81 percent of respondents expressed this view.Over seven out of ten respondents in the Czech Republic, Cyprus (77% each), Poland (76%), Slovakia and Slovenia (74% each) also voiced concern in this regard.At the other end were Portuguese (39%) and Spaniards (46%), followed by Bulgarians and Romanians (47 and 51 percent, respectively) – where the don't know rates were also very high. It would thus appear that citizens living in countries that are geographically closer to Georgia or Russia are the most worried, maybe because they are more dependent on energy supplies from Russia or other outside suppliers, the survey concludes.Age groups who have experienced the Cold War were the most concerned - adults aged 40-54 and 25-39, as well as people over 55 (65, 60 and 59 percent, respectively), while only 50 percent of young people in the 15-24 band expressed concern.Of all Europeans, French respondents most considered the EU to have been successful at bringing the Russian-Georgian conflict to an end after mediation efforts performed by President Nicolas Sarkozy, with 41 percent supporting this position. But on average, only 26 percent of EU citizens thought the same, while 35 percent answered they did not know who played the most important role in ending the conflict.The number of British respondents who thought the UN did so (18%) were almost double those who attributed this achievement to the EU (10%).

Chrysler shuts plants as Bush weighs bailout pleas
By Poornima Gupta and Chang-Ran Kim DEC 17,08

DETROIT/TOKYO (Reuters) - Embattled U.S. automakers General Motors Corp and Chrysler LLC both announced new steps to shore up their dwindling cash on Wednesday as they awaited word on whether the White House will grant pleas for billions of dollars in emergency loans they need to survive.GM said it was suspending work on construction of a new engine plant in Flint, Michigan where it plans to build a new small engine key to its effort to reinvent itself as a maker of fuel-efficient and all-electric cars.Chrysler said it would shut down all of its production for at least a month, effective from the last shift on Friday.The No. 3 U.S. automaker, considered the weakest player in an embattled industry, also said its U.S. dealers were losing up to a quarter of all potential sales because of the difficulty in securing loans for consumers.In another move underscoring the deepening of the industry's financial crisis, Chrysler said its financing arm could have to suspend loans for its dealers to carry inventory of unsold cars, potentially cutting off trade credits that U.S. auto retailers depend on to stay in business.President George W. Bush said a decision on the request for emergency loans to GM and Chrysler needed to be made relatively soon, but suggested he was still thinking through basic questions on how the aid should be structured.I'm looking at all options, Bush said in an interview with Fox News Channel.United Auto Workers President Ron Gettelfinger said time was running out for the Bush administration to come to the aid of the struggling industry.We're just appealing to the administration to take action as quickly as possible to relieve the fears that exist out there. And then we've got to get the credit market loosened up to where consumers can take advantage of credit, Gettelfinger said in an interview with CNN.GM has said it could run short of cash by early January without a federal loan, and Chrysler has said it has only slightly more time absent a bailout.

Both automakers and Ford Motor Co, which is not seeking emergency funding, have warned that the failure of one of the Detroit automakers could topple others by triggering a cascade of failures among the cash-strapped suppliers that provide components across the industry.Earlier, Honda Motor Co issued its third profit warning this year, slashing its operating forecast by two-thirds because of slowing sales and a soaring yen.The deeper-than-expected revision at Japan's No.2 automaker could touch off similar moves at domestic rivals Toyota Motor Corp and Nissan Motor Co, also reeling from the dollar's fall to 13-year lows against the yen.U.S.-traded shares of Honda dropped 7 percent. Toyota fell 2 percent, while Nissan shed 6 percent in U.S. trade.One analyst said he expected that the Bush administration would come around to providing aid to the industry after showing that it understood the objections to a bailout raised by Republican lawmakers.The administration has said that the auto industry cannot be allowed to fail, and while there's going to be some political posturing, in the end that's where they'll be, said David Kudla, chief executive at investment advisory firm Mainstay Capital Management.

DOWNTURN HITS HONDA HARD

Just two months ago, Honda had been expected to weather the downturn better than its rivals with its fuel-efficient fleet, but demand has fallen across-the-board since Lehman Brothers collapsed in September and credit tightened.The situation is worsening by the day and is showing no sign of recovery, Honda Chief Executive Takeo Fukui told a news conference.Honda, also the world's largest motorcycle maker, said it now expected an operating profit of just 180 billion yen ($2 billion) in the year to March, down 67 percent from the 550 billion yen it forecast in October.The new target is more than 80 percent below last year's 953 billion yen operating profit.

Investors said the brutal downgrade may still not go far enough because of the stronger yen.The new earnings projections are worse than expected but still look tough to meet, said Toshiyuki Matsushita, chief investment officer at Bluebear Investment Managers.Honda revised its assumption for the dollar to average 95 yen in the second half, from 100 yen in October, but this is still more favorable than the current rate of 88 yen.Every 1-yen drop in the dollar cuts Honda's annual operating profit by about 20 billion yen ($220 million), reducing overseas earnings when translated back into yen.In response, Honda said it would cut capital spending, delay new plants and product launches and reduce its third-quarter dividend. It will also review bonus payments for directors and cut their monthly salaries by 10 percent from January.Toyota, the world's largest automaker, is expected to cut its sales goal by at least 1 million vehicles at its year-end news conference on December 22.Earlier this week, Toyota suspended work on a Mississippi plant where it had planned to build its Prius hybrid.Rating agency Standard & Poor's revised its Triple-A outlooks on Toyota's long-term debt to negative from stable, saying it was not immune to the weakening global auto market.($1=88.99 yen)(Additional reporting by Nobuhiro Kubo, Yumiko Nishitani and Taiga Uranaka in TOKYO, Fang Yan in SHANGHAI; Ted Kerr in New York; Graphic by Catherine Trevethan; Editing by Lincoln Feast)

Riot police, youths clash in Athens, shoppers flee By ELENA BECATOROS and DEREK GATOPOULOS, Associated Press Writer DEC 18,08

ATHENS, Greece – Riot police clashed with rock-throwing demonstrators in central Athens on Thursday, sending Christmas shoppers and people in cafes running for cover. Frightened parents scooped up their children from a Christmas carousel in the city's main square and fled.The protesters broke away from a peaceful rally and hurled rocks and firebombs at police and buildings near parliament, overturned a car and set fire to trash bins. They also splashed police with red paint.Police responded with tear gas and flash grenades.Firefighters and police also rushed to stop protesters from burning down the city's main Christmas tree, which was just replaced earlier this week after the first was torched in riots. Families abandoned the carousel in downtown Syntagma Square after happily going on rides all morning.

Thursday's clashes were the latest outbreak of violence after the police's fatal shooting of 15-year-old Alexandros Grigoropoulos Dec. 6. Protests over the boy's death and the increasing economic hardship in Greece have led to the worst rioting the country has seen in decades.Hundreds of businesses have been smashed, burned or looted and gangs of youths fought running battles with riot police firing tear gas every night for a week. The riots have been fed by dissatisfaction with Greece's increasingly unpopular conservative government.More than 200 youths took part in running battles with police Thursday in Athens. They also set fire to a private security van and set up a burning barricade after smashing a cafe storefront, and dragging out and setting fire to its furniture. Downtown streets were littered with smashed paving stones and marble blocks.Shop owners who saw their businesses smashed and looted during the initial riots last week now say they are having trouble making ends meet because many customers are staying away from the city center.Who's going to pay all these bills? I'm taking in euro200 ($290) a day, complained Spyros Papaspyrou, the owner of a shoe shop in central Athens. Do they want me to stand outside my shop with a shotgun? I can't understand why they can't arrest 80 people in the center of Athens.Before the violence broke out, some 7,000 students and other protesters marched in a rally, chanting We are the law, we'll stay on the streets. As they passed, fearful shop owners shuttered their store fronts. Some demonstrators painted white crime-scene-style body outlines on the streets.Earlier in the day, some 1,000 demonstrators joined a peaceful Communist Party-backed march through the city. Some 300 people also marched in Greece's second largest city of Thessaloniki.

While sporadic rallies have been held in Europe in support of the Greek protesters, none were reported Thursday.Major labor union staged work stoppages Thursday to protest the teenager's shooting and the conservative government's economic policies.

Air traffic controllers walked off the job for three hours, forcing state Olympic Airlines to cancel 28 flights and reschedule another 14. State hospitals were operating with skeleton staff in a 24-hour strike.The government appealed for calm after another teenager was shot in the hand late Wednesday near his school. It was unclear who shot him.Police spokesman Panayiotis Stathis said no officers were in the area at the time of the attack, and Interior Minister Prokopis Pavlopoulos promised a thorough investigation. The boy underwent surgery Thursday.Associated Press writers Nicholas Paphitis in Athens and Costas Kantouris in Thessaloniki contributed to this report.(This version CORRECTS number in quote to 80.)

MEPs deal blow to EU compromise on working time,The European Court of Justice has ruled that time spent on call by doctors be considered part of their working hours)LUCIA KUBOSOVA 17.12.2008 @ 17:55 CET

EUOBSERVER / STRASBOURG - The European Parliament has voted to force Britain to remove its controversial opt-out from the EU's weekly limit on working hours, striking a blow to the long-sought deal among the member states on the maximum amount of hours Europeans can safely spend at work.A majority of MEPs agreed that the current provision applied mainly by the UK and some new member states should be scrapped three years after adoption of the directive. The Wednesday (17 December) vote delivered 421 votes in favour of the move against 273 MEPs opposed, with 11 abstentions Additionally, deputies ruled that there should be in future no exemptions from the currently applied health-and-safety-related cap of a maximum 48-hour working week calculated over a reference period of 12 months.Finally, the parliament reinforced its previous decision that the time spent on call by workers - particularly doctors, firemen or social workers - should be calculated as a proper working time, even if they are not called in to work.This is a triumph for all the political groups in the European Parliament - for the whole Parliament. It is a victory for the two million doctors and medical students across the EU, said Spanish centre-left MEP Alejandro Cercas, who had filed the amendments to the member states' position. It was precisely due to the definition of working hours that the EU executive embarked on changing the working time rules in 2002, following several rulings by the bloc's Court of Justice stating that on-call time should be regarded as a regular working hours.Given the significant implications for public spending that this ruling might impose on national governments, as well as the lack of professionals in the most affected sectors, Brussels introduced a list of changes but it took member states several years to adopt them.In June, 27 ministers finally managed to move ahead in a compromise package that involved Britain agreeing on concessions regarding more generous conditions for agency workers in return for the possibility of keeping its opt-out from the 48-hours-per-week limit.

Trade union demonstrations

Thousands of trade union members marched on the European Parliament in Strasbourg ahead of Wednesday's decision.The democratic legitimacy of today's vote is beyond question, Carola Fischbach-Pyttel, secretary-general of the European Federation of Public Service Unions, commented following the vote. But the UK's business minister, Pat McFadden, told the BBC it would be a mistake to end the opt-out during an economic downturn when people might need to work extra hours. Several UK Conservative and eurosceptic deputies also argued against the move favoured by a majority of MEPs. Derek Clark from the UK Independence Party said: It will mean higher unit costs and more job losses as firms lose competitive edge, which is why France abandoned its 35-hour week.Business organisations echoed the negative sentiments. We are extremely disappointed by the position adopted by the parliament today, and by its inability to understand the serious effects that this vote will have on the European economy, at a time when it is already harshly hit by the economic crisis, said Arnaldo Abruzzini of Eurochambers, the European chamber of commerce. Given the different versions of the working time bill agreed by the EU's two law-making bodies, the parliament and the Council (the member states) will next year launch a conciliation procedure in a bid to strike a common deal.EU social policy commissioner Vladimir Spidla said: The commission will do everything it can as an honest broker to help the European Parliament and the Council find a solution that allows them to reach a satisfactory agreement.

Gaza militants ready for end of truce with Israel By DIAA HADID and IBRAHIM BARZAK, Associated Press Writers – Wed Dec 17, 3:42 pm ET

GAZA CITY, Gaza Strip – Masked Palestinian gunmen practice capturing Israeli soldiers, training videos show how to make grenades and rocket squads fire daily at Israeli border towns.It looks like a warmup for battle.Gaza's Islamic Hamas rulers say a six-month cease-fire with Israel formally ends Friday, and Hamas and smaller armed groups won't say clearly whether they will extend it. The vagueness, and rocket fire, could be signs of a new round of fighting, or merely a negotiating tactic to pressure Israel.Under the truce, Gaza militants were to halt rocket fire on Israeli border communities. Israel was to end raids on Gaza and allow more goods and people through its border crossings, sealed after Hamas overran the territory in June 2007.While the Egyptian-brokered truce has brought a drop in violence, neither side is entirely happy. Israel notes the rocket fire hasn't ended, while Palestinians complain the truce didn't benefit Gaza, mainly because the crossings haven't been opened, leading to widespread shortages of basic goods.We aren't encouraged, said Khader Habib, an Islamic Jihad leader.Hamas says the deal expires Friday, but Israel says the unwritten agreement had no expiration date.The truce has increasingly unraveled since early November, when Israeli forces entered Gaza to destroy a tunnel that could have been used in a cross-border raid. In response, Palestinian militants resumed firing rockets at Israel.At least 20 rockets were fired at Israel on Wednesday, the military said. One exploded in the border town of Sderot, wounding two people and damaging a restaurant, police said.There can't be a situation where there is a truce, but the situation on the ground is very different, said Israeli Prime Minister Ehud Olmert. This demands that we address it, he added, stopping short of pledging retaliation.

Israel has renewed airstrikes against rocket squads, aiming at launchers in northern Gaza on Wednesday, the military said. Palestinian hospital officials said a 47-year-old man was killed when a missile hit his house and a balcony collapsed on him.In the end, the test is the calm and the benefit the residents have had for long months, even though it is relative calm, said Amos Gilad, a senior Israeli Defense Ministry official who helped negotiate the truce.Exiled Hamas leader Khaled Mashaal said this week the deal would not be extended, while Gaza's Hamas bosses insist no decision on an extension has been made.Both sides are jockeying for better terms.

Israel wants to be able to enter Gaza to prevent attacks. Hamas wants Israel to open the border crossings.Even before the truce began fraying, Israel did not allow free transfer of goods in and out of Gaza. Since the rocket fire resumed in November, Israel has kept the borders virtually sealed, allowing in only minimal humanitarian aid.Still, the lull has been a relief for people on both sides of the border. A poll Tuesday indicated that 74 percent of Palestinians and 51 percent of Israelis want to extend the cease-fire.The number of casualties and rocket attacks dropped sharply after the truce took hold. From January to June, 338 Palestinians and 16 Israelis were killed in cross-border violence, according to Associated Press figures. Since the truce took effect, 21 Palestinians, most of them militants, were killed by Israeli fire. No Israelis were killed. Israel's military says 1,786 rockets were fired in the first half of 2008, compared to around 199 in the second. During the truce, Hamas has been smuggling weapons through tunnels under the Gaza-Egypt border. Hamas militants are also believed to be burrowing tunnels into Israel to carry out attacks. Through the summer, Hamas ran military-style camps for youngsters, and the smaller Islamic Jihad has been practicing tracking down Israel soldiers. In Islamic Jihad training videos obtained by the AP, gunmen captured mock Israeli soldiers hiding in a burned out building and demonstrated how to make grenades and rockets.

Israel has the region's most powerful army and would likely be able to retake Gaza quickly. However, Israeli leaders are hesitant to order a major ground offensive, because they fear high casualties on both sides.

Israel's Kadima party votes Wed Dec 17, 5:27 pm ET

JERUSALEM (AFP) – Members of Israel's ruling Kadima party on Wednesday elected 22 candidates for the February 10 early legislative elections.About 80,000 party members were eligible to cast their ballots and 45 percent of them turned out at 95 polling stations, the party said.Results were expected to be published early Thursday.The vote was the second held by the centrist party. In September, the party picked Foreign Minister Tzipi Livni as its new leader to replace scandal-plagued Prime Minister Ehud Olmert.Livni hopes to take over from Olmert following the February election but faces tough competition from former premier Benjamin Netanyahu, whose right-wing Likud party dominates in opinion polls.In recent weeks, Livni has been perceived as courting right-wing voters in a bid to gain ground against her rival.She has lashed out at Defence Minister and Labour party chief Ehud Barak claiming he was not tough enough in his response to rocket fire by militants in the Hamas-ruled Gaza Strip.She has also distanced herself from statements by Olmert who said Israel needed to make territorial concessions to the Palestinians in order to achieve peace.

Palestinians got $1.7bln in aid last year: France Wed Dec 17, 11:11 am ET

PARIS (AFP) – The international community has given 1.7 billion dollars (1.18 billion euros) in aid to the Palestinian Authority over the last year, the French foreign ministry said Wednesday.That was 0.6 billion dollars more than was promised at a major donor conference held last December in Paris, spokesman Frederic Desagneaux said.At that conference, donors promised to provide 7.4 billion dollars over three years, which was considerably more than the 5.6 billion dollars the Palestinians had requested.The donors agreed to allocate 1.1 billion dollars in the first year.Such payments above the promises made are the concrete sign of the exceptional engagement of the international community, Desagneaux said.The conference agreed a package of aid to stabilise the Palestinian economy and try to shore up the faltering peace process with Israel.Palestinian leaders said the money was needed for direct support to the budget to help develop a viable economy and institutions for a future Palestinian state.