Every Wednesday you will find links and top-line summaries to current events around the globe.
Venezuela Buys Powerful Missiles With Russian Loan [Reuters]
- Russia has agreed to lend Venezuela over $2 billion to purchase tanks and advanced anti-aircraft missiles in deals that show Moscow’s commitment to working closely with Washington-foe, President Hugo Chavez
- Chavez said the purchases included 92 tanks and an S-300 missile system that can shoot down fighter jets and cruise missiles. Two years ago, Russia agreed to sell the same S-300 system to Iran but has dragged its feet over delivering the weapons amid U.S. and Israeli concerns
- A major oil exporter, Venezuela’s finances have suffered this year because of lower crude prices. Chavez said Venezuela needed to borrow the money for defense spending to avoid cuts in education and health. In recent years, Venezuela has bought over $4 billion in weapons from Russia, including 24 Sukhoi fighter jets
Afghan Vote Requires 10% Recount [BBC]
- Ballots from 10% of polling stations in Afghanistan’s presidential vote need to be recounted because of indications of fraud, a top election official says
- A substantive vote recount could force incumbent Hamid Karzai into a run-off. With 95% of the vote counted, Karzai had a 54% share. If fraud investigations cause this figure to drop below 50%, he and closest challenger Abdullah Abdullah, who has 28% of the vote, would have to go to a second-round vote
- Afghanistan’s second direct presidential election on August 20th was marred by widespread claims of vote-rigging and intimidation
U.S. Posts $111.4 Billion August Budget Deficit [Reuters]
- The U.S. government posted a smaller-than-expected $111.40 billion budget deficit for August, marking a record-matching 11 straight months of deficits. The August budget gap was well below the forecasts of analysts polled by Reuters, who predicted a $152 billion deficit for the month
- With one month to go in the 2009 fiscal year which ends September 30, the deficit stood at a record $1.378 trillion, versus a same year-ago deficit of $500.53 billion. The White House budget office on August 25 forecast a $1.58 trillion deficit for the full 2009 fiscal year
- A September deficit would mark a record 12 consecutive months of deficits. Only three other times has the United States racked up 11 consecutive monthly deficits: July 1982 to May 1983; May 1986 to March 1987; and May 1991 to March 1992
Putin Opens Door to Return as Russia President [Reuters]
- Ever since Putin’s presidential term expired last year and he made way for his chosen successor Dmitry Medvedev, there has been speculation the move was only temporary
- The next president will serve a six-year term following a change to the constitution rushed through shortly after Medvedev took office. Putin could serve two consecutive terms, meaning he might not step down until 2024
- Putin left the Kremlin in May 2008 after eight years as president but he remains a towering figure in the capacity of prime minister, a role that is traditionally secondary here. He also leads the dominant political party, United Russia
Norway’s Stoltenberg Wins Second Term in Office [Reuters]
- With 99.9% of votes counted, Stoltenberg’s coalition holds a slim but unassailable majority in parliament over the center-right opposition, which had tried to woo voters with promises of tax cuts and more private initiative in the economy. Voters credited Stoltenberg with steering his oil producing country through the global downturn and an active government role in promoting full employment
- With unemployment at 3% and the mainland economy set to grow more than 2% in 2010 after a mild recession this year, many see the red-green coalition as a safe pair of hands. No government has been voted back in since 1993
- The country has set up a wealth fund to invest oil and gas revenues abroad instead of pumping them into the local economy. Now worth $80,000 per citizen (over $400 Billion or 1% of Global stocks), the fund stokes expectations for quick improvements in public services, which in turn has led to a series of one-term cabinets
Venezuela Finds Vast Gas Reserve [BBC]
- The find – estimated at 7 to 8 trillion cubic feet, about five times what Spain uses in a year – was made with the Spanish energy company Repsol. It was the largest gas find in the company’s history
- Chavez said the development of the field would put Venezuela – which already boasts the largest proven oil reserves outside the Middle East – among the world’s top five gas producers
- Repsol said that once development of the field was under way, profits from the venture would be split three ways, with Repsol and Eni taking 32.5% each and Venezuela’s state company PDVSA taking 35%
- Billion-Dollar Pyramid Scheme Rivets Lebanon [New York Times]
- Somali Pirates Release Greek Ship For $2 Million [BBC]
- Losses Swell for the World’s Airlines, Trade Group Says [New York Times]
- India Prime Minister Says Country Is Losing The Battle Against Maoist Rebels [BBC]
- Riots Rock Ugandan Capital [Reuters]
- Firm for Analyzing Web Traffic Bought by Adobe for $1.8 Billion [New York Times]
- Australian Government Demands Telstra To Split [BBC]
- Comedian Eddie Izzard Completes Endurance Feat of 43 Marathons in 51 Days for Charity [BBC]
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