Tag Archives: Western Europe

Snowfall snarls transport around Western Europe

A quarter of flights out of Paris have been canceled, Belgium is suffering record traffic jams and high-speed trains are stuck in stations — all because of a sudden dump of oddly late snowfall on Western Europe.

Less-prepared for the kind of heavy snow that regularly hits northern and eastern neighbors, France, Britain and Belgium struggled Tuesday to assure transport amid the frosty conditions.

Paris airport screens flashed with red warnings after the French civil aviation authority ordered 25 percent of flights out of Charles de Gaulle Airport canceled, and 20 percent of flights out of Orly Airport.

Office buildings in the French capital — like those in the European Union‘s capital, Brussels — were only partly full. The French train network SNCF urged commuters in the Paris region to stay home Tuesday instead of trying to reach downtown “because of the unfavorable evolution of weather conditions.”

Instead of the onset of spring, Belgium had a record 1,600 kilometers of traffic jams during morning rush hour as snowdrifts turned roads slippery and reduced vision. A strong wind made conditions even tougher.

Thousands of commuters were left stranded on snowed-in platforms after many trains from Belgium were canceled, including some of the Thalys high-speed trains to France, Germany and the Netherlands.

In southeastern England, snow and ice stranded hundreds of motorists as temperatures plunged to as low as minus 3 Celsius (27 Fahrenheit), and many motorists abandoned their cars. Traffic backed up for 30 miles (50 kilometers) in some spots, with reports of people being stranded for 10 hours or more.

Among those stuck was a group of 120 German students who had to stay overnight in the town hall at Hastings on the south coast of England when families set to pick them up could not reach them.

Police in Sussex reported responding to more than 300 auto collisions in 24 hours because of slippery roads but no serious injuries were reported. Scores of schools in southeastern England closed because of severe weather.

Roads around northern France were blocked by snow or closed by transport authorities, and trucks were banned from several routes.

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Source: FULL ARTICLE at Fox World News

Beppe Grillo And The 5 Star Movement: An In-Depth Look At Italy’s New Kingmaker

By The Huffington Post News Editors

By Gavin Jones
ROME, March 7 (Reuters) – Beppe Grillo stirs strong feelings. His supporters believe he can clean up Italian politics and give ordinary people more say in decision-making. His opponents see a dangerous populist who evokes memories of fascist dictator Benito Mussolini.
International media describe Grillo as a comic, which on one level he is, but the man who jointly created and leads the party that in just three years has become the largest in Italy is much more than that.
Behind his tirades against the political and business elite is a shrewd mind, a hugely influential alter ego and the desire to win complete power in the euro zone’s third largest economy.
“The left and right will govern together on the ruins they’ve created, it will last a year at most, then our movement will change the world,” Grillo said after his party’s triumphant performance in last week’s election.
Grillo has made all the headlines since the vote, but he is only half the story of his anti-establishment 5-Star Movement. Most of the strategy is decided by Gianroberto Casaleggio, an Internet expert who seldom appears in public.
“A single man in command is not democracy,” said Pier Luigi Bersani after his Democratic Party (PD) was beaten into second place in the vote. “Behind Bersani is the PD, I want to know what is behind Grillo.”
The answer is Casaleggio, and his Milan-based firm Casaleggio Associates whose business is to create websites and web-based marketing campaigns for clients.
The two men met in 2004 and the following year Casaleggio’s company created Grillo’s hugely successful blog. Casaleggio has been running Grillo’s public activities ever since. They are joint founders of the 5-Star Movement.
In one of the best debut performances by any party in Western Europe since World War Two, 5-Star took 26 percent of the vote, outstripping the PD and Silvio Berlusconi‘s centre-right People of Freedom.
“Unless the other parties change their …read more
Source: FULL ARTICLE at Huffington Post

Ten Companies Profiting Most From War

By 24/7 Wall St.

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The business of war is profitable. In 2011, the 100 largest contractors sold $410 billion in arms and military sevices. Just 10 of those companies sold over $208 billion. Based on a list of the top 100 arms-producing and military services companies in 2011 compiled by the Stockholm International Peace Research Institute, 24/7 Wall St. reviewed the 10 companies with the most military sales worldwide in 2011.

These companies have benefited tremendously from the growth in military spending in the U.S., which by far has the largest military budget in the world. In 2000, the U.S. defense budget was approximately $312 billion. By 2011, that figure had grown to $712 billion. Arm sales grew alongside general defense spending growth. SIPRI noted that between 2002 and 2011, arms sales among the top 100 companies grew by 51%.

However, the trend has reversed recently. In 2011, the top 100 arms dealers sold 5% less compared to 2010. Susan Jackson, a defense expert at SIPRI, said in an email to 24/7 Wall St. that austerity measures in Western Europe and the U.S. have delayed or slowed down the procurement of different weapons systems. Austerity concerns have exacerbated matters since 2011. The U.S. federal government budget cuts that took effect beginning this month — commonly known as sequestration — mean that military spending could contract by more than $500 billion over the coming decade unless some of the cuts are reversed.

In addition, the U.S.’s involvement in conflicts in Iraq and Afghanistan have wound down significantly. The last American convoy in Iraq left the country in December of 2011. Troop withdrawals from Afghanistan also began in 2011. Finally, SIPRI pointed out that sanctions on arms transfers to Libya also played a role in declining arms sales.

Many of these companies are looking overseas to try to make up for slowing sales in the U.S. and Europe. Arms producers are especially keen on areas in Latin America, the Middle East and parts of Asia, Jackson said. For instance, BAE is in the process of securing contracting agreements with Saudi Arabia. Meanwhile, the chief financial officer of Northrop Grumman has recently indicated his company may sell its Global Hawk airplane to South Korea or Japan.

Based on the report, 24/7 Wall St. reviewed the 10 companies with the most arms sales in 2011. Arms were defined as sales to military customers, either for procurement or for export, but do not include sales of general purpose items such as oil or computer equipment to military customers. We also looked at arms sales from 2010, as well as the company’s total sales in 2010. Furthermore, we considered the company’s 2011 total sales, profits and the total number of employees at the company, all provided by SIPRI.

There are the 10 companies profiting the most from war.

Filed under: 24/7 Wall St. Wire, Aerospace & Defense Tagged: BA, GD, LLL, LMT, NOC, UTX

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Source: FULL ARTICLE at DailyFinance

The Pirate Bay admits to North Korean hosting hoax

You’ve got to hand it to the IT wizards at The Pirate Bay—they certainly know how to have fun with their infrastructure set-up. Echoing a prank from 2007, the Pirate Bay on Monday claimed the site was now being hosted in North Korea at that government‘s invitation. News outlets soon reported the announcement, although many did so with a healthy dose of skepticism.

That doubt was well founded, as the proclamation turned out to be a massive prank. The scallywags at the world’s most infamous BitTorrent site admitted to their shenanigans on Tuesday morning. “We hope that yesterday’s little hack proved that we know the internet better than our enemies,” The Pirate Bay said on its Facebook page, along with a few more paragraphs of colorful bravado. The site also posted a photograph of what appears to be several North Korean military figures glad hanging out with the country’s leader Kim Jong-un along with two of The Pirate Bay’s co-founders Peter Sunde and Per Gottfrid Svartholm Warg.

Technical trickery

When The Pirate Bay announced it had moved to North Korea at the behest of that country’s leader to “fight our battles from their network,” it certainly seemed plausible. Performing a traceroute on the site confirmed that The Pirate Bay was indeed accessing the Internet via North Korea. In fact, at the time of this writing, the prank was still in action and you could observe it for yourself. Just open up a command prompt in Windows and type in “tracert piratebay.se.” Then watch as your computer traces a route through servers around the world to land at The Pirate Bay’s virtual dock in North Korea at the IP address 175.45.177.217.

The Pirate Bay
The Pirate Bay posted this satirical image on its Facebook page on Tuesday.

But what The Pirate Bay was actually doing was using some IT trickery to make it appear that the site was residing inside the notoriously Net-unfriendly nation. If you want the technical details, check out the blog of a German blogger, going by the name Will, who first reported on the pirate prank. It’s not clear where The Pirate Bay’s sever access is currently coming from, but the best guess appears to be Western Europe, probably somewhere in Germany.

To read this article in full or to leave a comment, please click here

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Source: FULL ARTICLE at PCWorld

Midday Report: Ikea and Marriott Team Up on Cheap European Hotels

By DailyFinance Staff

The Moxy Hotel

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Produced by Drew Trachtenberg

Last year Ikea announced its intention to open a chain of economy hotels in western Europe; now comes news that the Swedish furniture merchant will be assisted in this venture by American hospitality company Marriott International (MAR).

The Associated Press reports that Ikea and Marriott plan around 50 hotels with 150-300 rooms each in major cities, beginning with Milan, Italy. The brand, aimed at attracting younger travelers, will be called Moxy, and represents Marriott’s first foray into the European budget business, with projected average nightly room rates of about $78.

In other worldwide hospitality news, StreetInsider reports that Choice Hotels International (CHH) has inked a deal with online travel agency Booking.com, hoping to extend the reach of its brands.

And Starwood Hotels & Resorts (HOT) will open 50 new hotels in Europe over the next five years. Among the Stamford, Conn.-based company’s brands are Westin, Sheraton and the St. Regis.

Photo Credit: Marriott International Inc.

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Source: FULL ARTICLE at DailyFinance

Where to Expect More Billionaires in Eastern Europe

By Tatiana Serafin, Contributor

With Eastern Europe tied to its Western neighbors, the economic malaise in Western Europe is bound to affect the fortunes of the Eastern Europe‘s wealthiest. Though there has been some movement in the billions made by the region’s top entrepreneurs, it’s been uneven at best and reflects the tough markets that many have to contend with. …read more
Source: FULL ARTICLE at Forbes Latest

Entrepreneurship, South African Style

By Susan Galer, AdVoice

Entrepreneurs in developed countries like the United States and Western Europe typically start with a brilliant idea. Aspiring innovators in developing countries like South Africa begin their journey by figuring out how to gain access to a computer and the internet, and learning how to use them. The stark contrast between two dramatically different worlds only underscores the incredible odds faced by ambitious youth in South Africa who are determined to succeed. …read more
Source: FULL ARTICLE at Forbes Latest

Gartner Predicts Infrastructure Services Will Accelerate Cloud Computing Growth

By Louis Columbus, Contributor

As public cloud computing gains greater adoption across enterprises, there’s an increased level of spending occurring on infrastructure-related services including Infrastructure-as-a-Service(IaaS).  Enterprises are prioritizing how to get cloud platforms integrated with legacy systems to make use of the years of data they have accumulated.  From legacy Enterprise Resource Planning (ERP) to Customer Relationship Management (CRM) systems, integrating legacy systems of record to cloud-based platforms will accelerate through 2016.  I’ve seen this in conversations with resellers and enterprise customers, and this trend is also reflected in Gartner’s latest report on public cloud computing adoption, Forecast Overview: Public Cloud Services, Worldwide, 2011-2016, 4Q12 Update Published: 8 February 2013.  Below are the key take-aways from the report: Global spending on public cloud services is expected to grow 18.6% in 2012 to $110.3B, achieving a CAGR of 17.7% from 2011 through 2016. The total market is expected to grow from $76.9B in 2010 to $210B in 2016. The following is an analysis of the public cloud services market size and annual growth rates: Gartner predicts that Infrastructure-as-a-Service (IaaS) will achieve a compound annual growth rate (CAGR) of 41.3% through 2016, the fastest growing area of public cloud computing the research firm tracks.  The following graphic provides insights into relative market size by each public cloud services market segment: Platform-as-a-Service (PaaS) will achieve a 27.7% CAGR through 2016, with Cloud Management and Security Services attaining 26.7% in the same forecast period.  Software-as-a-Service’s CAGR through 2016 is projected to be 19.5%.  The following graphic illustrates the differences in CAGR in the forecast period of 2011 – 2016: Gartner is projecting the SaaS market will grow at a steady CAGR of 19.5% through 2016, having increased the forecast slightly (.4%) since its latest published report.  Global SaaS spending is projected to grow from $13.5B in 2011 to $32.8B in 2016. CRM will continue to be the largest global market within SaaS, forecast to grow beyond $5B in 2012 to $9B in 2016, achieving a 16.3% CAGR through 2016.   The highest growth segments of the SaaS market continue to be office suites (49.1%), followed by digital content creation (34.0%).  The following graphic rank orders CAGRs across all public cloud services segments from the forecast period: 59% of all new spending on cloud computing services originates from North American enterprises, a trend projected to accelerate through 2016.  Western Europe is projected to be 24% of all spending.  A graphic comparing total spending by geography and corresponding growth rates is provided below:   …read more
Source: FULL ARTICLE at Forbes Latest

Toyota hybrids get more popular in diesel-loving Europe

By Danny King

Toyota Prius

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Together, Toyota and its Lexus luxury arm broke the 100,000-unit barrier for hybrid vehicle sales in Europe last year, Automotive News Europe reports.

Long known for their diesel-buying preferences as a way to boost fuel economy, Europeans upped their Toyota and Lexus hybrid purchases by a whopping 29 percent in 2012. While the Toyota brand accounted for more than three-quarters of the approximately 109,000 units sold, about 90 percent of Lexus vehicles sold in western Europe last year were hybrids.

While the 29 percent jump is impressive, it pales in comparison to the gains Toyota made in the US last year. The Japanese automaker boosted US alt-fuel sales by 83 percent in 2012 to more than 327,000 units and accounted for about 60 percent of all the hybrids sold Stateside. Lexus accounted for about 38,000 of the hybrids Toyota sold in the US in 2012.

Toyota hybrids get more popular in diesel-loving Europe originally appeared on Autoblog Green on Sat, 16 Feb 2013 17:01:00 EST. Please see our terms for use of feeds.

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Source: FULL ARTICLE at Autoblog

Crisis-hit Greece backs pipeline for Caspian gas

Greece, Italy and Albania signed an agreement Wednesday backing a proposed pipeline to transport natural gas from the Caspian Sea to western Europe, intensifying the rivalry with a competing project.

The 800-kilometer (500-mile) Trans-Adriatic pipeline system, or TAP, would have an initial annual capacity of 10 billion cubic meters (353 cubic feet) of natural gas from Azerbaijan. The venture is run by consortium comprised by Germany’s E.ON Ruhrgas, Norway’s Statoil and the Swiss-based Axpo group.

Greek Prime Minister Antonis Samaras said the project would provide €1.5 billion ($2.02 billion) of private investment in his country, which is suffering through a sixth year of recession.

“This will change Greece from a second-tier energy destination to a significant transit point,” Samaras said. “It will create 2,000 Greek jobs in the early stages of the project in regions that are suffering high rates of unemployment.”

TAP is widely seen as a competitor of the Nabucco West pipeline, a separate proposed project that would transport gas to Austria via Bulgaria, Romania, and Hungary. Both are vying for the right to transport natural gas from Azerbaijan‘s Shah Deniz gas field to western Europe by 2019.

The Shah Deniz gas producers will decide in June which route to use to export their gas to Europe.

TAP officials on Wednesday said they did not yet have an estimate of the total cost of the project and added that, if selected, construction of the pipeline would start in 2015. The pipeline’s annual capacity could be doubled to 20 billion cubic meters, they said.

Wednesday’s agreement was signed by Greek Foreign Minister Dimitris Avramopoulos, along with Albanian Finance and Energy Minister Edmond Haxhinasto and Italian Development Minister Corrado Passera, while representatives of the Azerbaijani government also attended the ceremony.

“This is an important step for the diversification of Europe‘s energy supply and access by Azerbaijan to Europe‘s market,” Passera said.

European governments are keen to bring Azeri gas to their markets, and ease current domination by Russia.

Kjetil Tungland, TAP‘s Managing Director, argued the venture would also spur other badly-needed growth-boosting projects in Greece.

“Projects like TAP signal confidence for other investors,” he said.

…read more
Source: FULL ARTICLE at Fox World News

EU proposal to protect bees stirs hornets' nest

An attempt to protect Europe‘s bee population appears to have kicked up a hornets’ nest.

On Thursday, the EU‘s commissioner for health and consumer policy, Tonio Borg, discussed with the bloc’s 27 countries his proposal to restrict use of three pesticides — called nenicotinoids — to crops that bees dislike. The policy would take effect July 1 and be reviewed after two years.

Frederic Vincent, a spokesman for Borg, confirmed that some countries reacted unenthusiastically, preferring further study. He declined to identify them.

Marco Contiero of the environmental group Greenpeace said Britain was firmly opposed, and Germany and Spain were either opposed or wanted more time to consider.

The European Food Safety Authority says beekeepers have reported an unusual decline in bees over the past decade, particularly in Western Europe.

Source: FULL ARTICLE at Fox World News

Diageo says operating profit rose 61 percent

Distiller Diageo PLC says that its net profit rose to 1.54 billion pounds ($2.43 billion) in the six months ending on Dec. 31, up 61 percent on the same period last year.

The company, whose brands include Johnnie Walker, Smirnoff, and Guinness, said Thursday that price hikes and strong American sales helped drive its growth.

The company is turning its focus to developing markets amid continuing uncertainty in Europe. Diageo announced a rise in net sales of 18 percent in Latin America, 6 percent in Asia, and new staff in Africa. Market gains in Turkey, Eastern Europe, and Russia weren’t enough to offset losses in Western Europe; overall net sales in Europe fell 2 percent.

Shares in Diageo rose 0.08 percent to 1,854.5 pence each in early morning trading.

Source: FULL ARTICLE at Fox World News

The Unintended Consequences of The Greatest Economic Experiment

By Robert Lenzner, Forbes Staff As you must realize the central banks of “advanced market economies,” the U.S., Great Britain, Western Europe and Japan, for starters, have for the past 5 years consistently lowered interest rates to zero and swollen their balance sheets quite enormously– a coordinated and unprecedented policy on which the stability of the global economy rests. The intended consequence of this deliberation was to stimulate asset prices, household wealth and consumer activity such as to restore a semblance of economic growth. And indeed this desirable short term effect has performed well as stock prices and residential home prices rebounded. Lurking in the background, suggests economist William White is the “undesirable longer run effects” like “negative feedback mechanisms” that will weaken growth, threaten the health of financial institutions and “encourage imprudent behavior on the part of governments.” One of the unintended consequences is the “shadow banking system,” which has the inherent quality of being non transparent, of being opaque. of in effect being hidden from view from regulators, from the media, and from most of the financial system. As a recent report by the Financial Stability Board had it “shadow banking” is in effect a long chain “of interactions involving collateral, rehypothecation, large offsetting position in CDS(credit default swaps) and other derivatives, exposure to counterparty risk became almost impossible to estimate.” Get that? “exposure to counterparty risk became almost impossible to estimate.” No wonder the Financial Stability Board believes “the opacity of the system proved a substantial impediment to supervisory oversight.” So, the danger is no supervision available when excessive risk is being taken– and excessive risk may be taken as what’s actually happening behind the scenes is not transparent. Non transparent means we are living in the dark. Another unintended consequence of easing and zero interest rates is the huge pension deficits in the U.K. where the Pension Protection Fund is only 70% funded– and part of the overall underfundedness of over $1 trillion. Actuarilly speaking pension funds are short the income stream required maintain stability of retirement income. Zero cost of money has a price that makes the promise of a fixed income in retirement an impossibility.
Source: FULL ARTICLE at Forbes Latest

Report: Dacia brand has become "cash cow" for parent Renault

By Jonathon Ramsey

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Dacia emblem

No one, not even former Renault CEO Louis Schweitzer whose idea it was to buy Dacia in 1999, had any idea the low-cost Eastern European sub-brand would succeed this well. The Romanian automaker with three wheels in the ground at the time of its takeover was purchased the same year that Renault took its stake in Nissan, and no one had much to say about that smaller deal. Fast forward 13 years, the line that began with the Logan in 2004 is now five model lines on sale in 36 countries, it’s year-on-year sales have never decreased and the vehicles built on its M0 entry-level platform sold nearly a million units in 2012. This isn’t just an emerging-market story, either, with Dacia branded offerings making up 17 percent of Renault volume in Western Europe.

Its rampaging sales and the synergies between the Renault and Dacia lines have turned the brand into a “cash cow” in the words of Renault’s COO. Its vehicles share a huge number of parts, many of which are still carryover nine years into the brand’s life, and parts of the recently introduced second-generation Logan are evolved from the 1990 Renault Clio. In fact, due to amortization and decreased prices for parts because of the massive sales, the new Logan is less expensive to produce than the first generation, so it was given new equipment along with the refresh in order to maintain its price.

The news is even better in other regions, where the Dacia can command more money on its own or can be sold under the Renault or Nissan brands. The Duster in Western Europe that starts at 12,000 euros starts at 19,000 euros in Brazil. That’s how Dacia, according to a Morgan Stanley analyst, returns a worldwide nine-percent operating margin as opposed to Renault’s 0.4-percent. What lies ahead is more models and variants, as well as a modular strategy for the M0 platform to further reduce costs, and, one supposes, even more money from that Romanian cow.

Dacia brand has become “cash cow” for parent Renault originally appeared on Autoblog on Fri, 04 Jan 2013 09:15:00 EST. Please see our terms for use of feeds.

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Source: FULL ARTICLE at Autoblog

Windows 8 underwhelms European businesses

Adoption of Windows 8 by business users has been slow across Western Europe, analyst figures have shown, with the consumer-friendly operating system lacking wider appeal.

In the month following the product’s launch, figures released by analysts Context show that sales of hardware using Windows 8 made up 52 percent of all Windows OS sales across the region. This meant that sales of devices to retailers and resellers were six points lower than Windows 7 during the same period following its launch in the autumn of 2009.

windows 8

However, the figures highlight that the difference is even more marked when comparing the sales directly to business users.

Following the launch of the well received Windows 7, the operating system quickly accounted for almost a third of all sales to businesses, accounting for 31 percent during November 2009. In comparison, Windows 8 sales to businesses in the month after its release amounted to just 8 percent.

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Source: PCWorld

GM Buys Back Stock from U.S. Government, Chops Plans with Peugeot

By Justin Berkowitz

2011 Chevrolet Volt

It would seem that at the “New” GM, nobody has gotten the memo about corporations going on autopilot the second two weeks of December. General Motors has made two major announcements in the past 48 hours, and both will have repercussions well beyond 2012.

GM’s $5.5-Billion Payment to Treasury Takes Government Stake Down to 19 Percent

How’s this for holiday shopping? For $5.5 billion, General Motors will buy (and then resell to private investors) 200 million of its shares currently in the hands of the U.S. government. When the transaction goes through, it’ll leave Uncle Sam holding just 19 percent of GM, from today’s 26-percent stake. Along with the news, the U.S. Treasury—which handles the government’s money here—said it would be selling off its remaining 300 million shares some time in the next 15 months.

By that point, roughly five years will have passed since the U.S. Treasury first began the GM bailout, which ultimately saw the government pump $49.5 billion into the company. The 61-percent ownership stake that the government took in 2009 dropped to 26 percent in 2010 when General Motors held an IPO and returned to the stock market.

There are two key insights here. First, GM is paying the government more for its shares than they are worth in public trading. That’s good for the taxpayer, but it means General Motors is intentionally taking a financial hit of about $400 million in order to reduce the government’s ownership of the company. Second, even though GM is overpaying for this particular deal, the back-of-the-napkin math will show the American taxpayer losing at least $10 billion on the deal. That’s just the difference between what the Treasury gave to GM and what it’s getting back directly, though, and doesn’t take into account any economic value of GM staying in business after 2008–2009.

Peugeot 208XY concept

Peugeot and GM Won’t Co-Develop Mid-Size-Car Platform Anymore

General Motors and PSA Peugeot Citroën are hashing out details of the general collaboration they agreed upon in October. Since that news, the two have ditched plans to develop a D-segment platform together, which would have underpinned future mid-size sedans like the Chevy Malibu and the Buick Regal. The Eurozone crisis has created a biblical-level armageddon for Peugeot, Renault, and Fiat, with all three seeing dismal sales in their core market of Western Europe. Citroën just confirmed that it’s going to put the gorgeous but salesproof C6 out to pasture, a symbol of the impossibility of selling large French sedans. PSA management probably sees no justification for investing in a new D-segment platform at this point.

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2012 BMW 328i vs. 2013 Cadillac ATS – Comparison Tests

The latest iteration of the GMPSA deal still will see them co-develop two MPVs—multipurpose vehicles, or mini-minivans like the Ford C-Max—for Europe, as well as a platform for future B-segment models about the size of the Chevy Sonic. Peugeot and GM also will work jointly on a family of small four-cylinder engines, which will be loosely based on current Peugeot engine architecture.

Try not to lose much sleep about the cancelation of the D-segment project. GM has far more expertise in designing that size of vehicle than Peugeot does, and it’s not as though the deal would have included styling work to bring Chevrolet designs back to the eponymous founder’s French roots.

Source: Car & Driver

Israeli foreign minister Lieberman resigns in wake of fraud charges

Israel‘s powerful foreign minister announced his resignation from government Friday, a day after an indictment for breach of trust was filed against him by the country’s attorney general, in a move that shakes up the election campaign and heavily impacts Prime Minister Benjamin Netanyahu’s election calculations.

Avigdor Lieberman continued to maintain his innocence in a statement and indicated that he could return to politics in time for the national elections in January if he was cleared or could reach a plea bargain.

“Even though I know I did not break any law … I have decided to resign from my position as foreign minister and deputy prime minister,” Lieberman said. “After 16 years of investigations against me I can end this issue quickly without delay and completely clear my name,” he said.

Lieberman said he made the decision Friday after conferring with his lawyers and with his election campaign staff. “I am doing this because I am convinced that Israel‘s citizens should be able to go to the polls after this matter has been settled … and I can continue to serve the state of Israel and Israel‘s citizens as part of a strong united leadership that will cope with the security, economic and political challenges it faces,” he said.

Lieberman was charged Thursday with breach of trust in a fraud and money-laundering case threatening to upend the Israeli political system just a month before parliamentary elections.

The Soviet-born Lieberman is head of Yisrael Beitenu, an ultranationalist party that is especially popular with immigrants from the former Soviet Union. With a tough-talking message that has questioned the loyalty of Israel‘s Arab minority, sharply criticized the Palestinians and confronted Israel‘s foreign critics, he has at times alienated Israel‘s allies while becoming an influential voice in Israeli politics.

Yisrael Beitenu and Netanyahu’s Likud Party recently joined forces and are running together on a joint list in the Jan. 22 parliamentary elections. Opinion polls have predicted the list would be by far the largest bloc in parliament and lead a new coalition government.

Netanyahu is heavily favored to win the premiership, but Lieberman’s departure will have a major impact on negotiations to build a governing coalition. Lieberman is Yisrael Beitenu‘s founder and main attraction to voters. If he were forced to step aside, Netanyahu would be stuck with a list of leftovers with little appeal to the general public.

Former Foreign Minister Tzipi Livni of the new “Movement” Party issued a statement welcoming Lieberman’s departure. “Avigdor Lieberman did the right thing,” she wrote.

Prosecutors have long suspected that Lieberman illicitly received millions of dollars from businessmen and laundered the cash through straw companies in eastern Europe while he was a lawmaker and Cabinet minister. In his decision Thursday, Attorney General Yehuda Weinstein said the case was not strong enough.

“I am convinced that there is no reasonable chance of a conviction in the offenses Lieberman is suspected of and that case should be closed,” Weinstein said in his decision.

Instead, Lieberman was charged with the lesser offense of receiving official material from the investigation against him from the former Israeli ambassador to Belarus.

The envoy had received the documents from the foreign ministry, which sought additional information on Lieberman from Belarus authorities. The ambassador, Zeev Ben-Aryeh, reached a plea bargain in the case earlier this year. At a press conference Thursday night, Lieberman said that when he received information about the investigation from his ambassador, he immediately ripped it up and flushed it down the toilet because he knew it was wrong.

Previous court rulings in other, more serious criminal cases against Cabinet officials have forced them to resign. Facing the prospect of an indictment, former Prime Minister Ehud Olmert announced his decision to step down in 2008 before formal corruption charges were filed against him. Olmert this year was cleared of most charges, but convicted of breach of trust.

“Lieberman’s resignation was very important because it strengthens the norms of our court system where if an official is suspected of corruption they step down even though legally they don’t have to, in order to preserve the public’s faith in the government,” said Moshe Negbi, Israel Radio’s legal affairs commentator.

The blunt-talking Lieberman, a native of Moldova, has amassed power with support from immigrants from the Soviet Union and other Israelis drawn to his broadsides against Israeli Arabs and dovish groups, as well as the Palestinians and Western Europe.

Known for his Russian-accented monotone, he became a national figure in 1996 Netanyahu’s chief of staff during his previous term as prime minister. He later quit the Likud and was elected to parliament in 1999 as head of Yisrael Beitenu (Israel Our Home), a secular hawkish party he established to represent the more than 1 million immigrants from the former Soviet Union.

His party was the third largest in 2009 elections, drawing many votes from native Israelis as well as his traditional base.

Lieberman is known for inflammatory rhetoric that has at times agitated his partners in government. He has called for executing Israeli Arab lawmakers who met with leaders of the Palestinian militant group Hamas. As a lawmaker in 2008, he said Egypt‘s then-President Hosni Mubarak “can go to hell.”

More recently, Lieberman pushed a series of legislative proposals that critics said were anti-Arab, including a failed attempt to require Israelis to sign a loyalty oath or have their citizenship revoked. He has also called for redrawing Israel‘s border to place Arab towns under Palestinian jurisdiction.

He also has embarrassed Netanyahu by expressing contrasting views to that of the government, including skepticism over the chances of reaching peace with the Palestinians. Lieberman has called Palestinian President Mahmoud Abbas an “obstacle to peace” and urged his removal.

Earlier this week, he lashed out at the international community, saying many world leaders would sacrifice Israel to radical Islam just as Europe appeased the Nazis before World War II.

Source: Fox World News

Israel's foreign minister charged with breach of trust

Israel‘s powerful foreign minister was charged Thursday with breach of trust, but escaped more serious charges in a fraud and money-laundering case that could jeopardize his political career and upend the Israeli political system just a month before parliamentary elections.

The decision by Israel‘s attorney general capped an investigation into Foreign Minister Avigdor Lieberman that stretched back more than a decade. Lieberman, a close ally of Prime Minister Benjamin Netanyahu, is expected to come under heavy pressure to resign.

Netanyahu had no immediate comment, while Lieberman planned an announcement Thursday evening. In a brief statement, Lieberman’s attorneys said they respected the decision and would study it. Lieberman in the past has denied all accusations and alleged they were politically motivated.

The Soviet-born Lieberman is head of Yisrael Beitenu, an ultranationalist party that is especially popular with immigrants from the former Soviet Union. With a tough-talking message that has questioned the loyalty of Israel‘s Arab minority, criticized the Palestinians and confronted Israel‘s foreign critics, he has at times alienated Israel‘s allies while becoming an influential voice in Israeli politics.

Yisrael Beitenu and Netanyahu’s Likud Party recently joined forces and are running together on a joint list in the Jan. 22 parliamentary elections. Opinion polls have predicted the list would be by far the largest bloc in parliament and lead a new coalition government.

While Lieberman was cleared in the most serious allegations against him, Thursday’s decision nonetheless could force him to step down and throw the joint list into disarray.

The decision was a reversal for Attorney General Yehuda Weinstein , who last year had notified Lieberman that he intended to indict him on charges that included fraud and money laundering.

Prosecutors have long suspected that Lieberman illicitly received millions of dollars from businessmen and laundered the cash through straw companies in eastern Europe while he was a lawmaker and Cabinet minister. In his decision Thursday, Weinstein said the case was not strong enough.

“I am convinced that there is no reasonable chance of a conviction in the offenses Lieberman is suspected of and that case should be closed,” Weinstein said in his decision.

Instead, Lieberman was charged with the lesser offense of receiving official material from the investigation against him from the former Israeli ambassador to Belarus.

The envoy had received the documents from the foreign ministry, which sought additional information on Lieberman from Belarus authorities. The ambassador, Zeev Ben-Aryeh, reached a plea bargain in the case earlier this year.

Israeli law is unclear about whether Lieberman must resign. There is a legal precedent for politicians to step down when they face charges that compromise public trust in them. But Lieberman could decide the charges don’t warrant that he resign.

Law professor Emanuel Gross said that because Weinstein did not make a recommendation as to whether Lieberman should step down, the foreign minister’s political future remained unclear. He said Weinstein might be asked for a ruling, and if he refuses, the matter could head to the Supreme Court.

Israel Radio’s chief political commentator, Hanan Kristal, said Lieberman would likely resign before the attorney general is forced to take action, perhaps by ordering Netanyahu to fire his foreign minister. “I assume (Weinstein) doesn’t want to get to that,” he said.

Court rulings in other, more serious criminal cases against Cabinet officials forced them to resign. Facing the prospect of an indictment, former Prime Minister Ehud Olmert announced his decision to step down in 2008 before formal corruption charges were filed against him. Olmert this year was cleared of most charges, but convicted of breach of trust.

The blunt-talking Lieberman, a native of Moldova, has amassed power with support from immigrants from the Soviet Union and other Israelis drawn to his broadsides against Israeli Arabs and dovish groups, as well as the Palestinians and Western Europe.
Source: Fox World News