Eeyore's News and View

Houston could be in al-Qaida's crosshairs December 10, 2008 - 5:36am
J.J. Green, WTOP Radio
WASHINGTON - Houston is at the top of al-Qaida's list of U.S. targets, and may be hit soon according to a former CIA official.
"Certainly, the prime target for the United States right now is Houston," says Mike Scheuer, the former head of the CIA's Osama bin Laden unit.
He says al-Qaida believes a successful attack on Houston would be a major blow to the U.S. economy.
"It controls so much of the refining of gasoline. It's the hub for natural gas distribution, and it only has one ship canal."
Scheuer believes the time is drawing closer.
"Al-Qaida is ready to attack us again. Their rhetoric is very calm and straight forward."
However, none of the DHS agencies reports any imminent threats.
Scheuer says if al-Qaida did attack Houston, "the price of energy goes up, and Muslims benefit from them."
Now a senior fellow with the Jamestown Foundation, Scheuer says hurting the U.S. without harming Muslims is a key consideration for al-Qaida.
That, Scheuer explains, is just another reason Houston seems seems so appealing.
"They can hurt us tremendously economically by hurting our energy, and they can attack the energy target without hurting Muslims."
http://wtop.com/?nid=778&sid=1544165

Rio Tinto to cut 14,000 jobs to cope with slump December 10, 2008 - 1:23pm
In this undated file photo released by BHP Billiton, an aerial views shows Olympic Dam mine in South Australia. Rio Tinto Group will cut 14,000 jobs worldwide and reduce capital investment as part of new measures to reduce its debt amid waning demand for iron ore and other metals, the mining company said Wednesday, Dec. 10, 2008. The job cuts - accounting for 12.5 percent of Rio Tinto's 112,000 work force - and reduction in operating expenditure are expected to save the company at least 2.5 billion Australian dollars (US$1.6 billion) a year by 2010, the London-based company said in a statement. (AP Photo/BHP Billiton, HO, File)
By TANALEE SMITH Associated Press Writer
SYDNEY, Australia (AP) - Rio Tinto Group, one of the world's largest miners, will cut 14,000 jobs worldwide and reduce capital investment as part of new measures to reduce its debt amid waning demand for iron ore and other metals, the company said Wednesday.
The job cuts _ accounting for 12.5 percent of the company's 112,000-person work force _ and reduction in operating expenditure are expected to save at least 2.5 billion Australian dollars ($1.6 billion) a year by 2010, the London-based company said in a statement.
The cuts will mostly be on the contractor side, where 8,500 positions will be eliminated.
Rio Tinto has offices in 40 countries, with most of its employees in Australia and North America, as well as significant operations in South America and southern Africa.
The company also said it will try to sell "significant assets" that were not previously listed for sale in order to reach its goal of trimming AU$10 billion ($6.6 billion) from its debt by the end of next year.
"Given the difficult and uncertain economic conditions, and the unprecedented rate of deterioration of our markets, our imperative is to maximize cash generation and pay down debt," Chief Executive Tom Albanese said in the statement. "We have undertaken a thorough review of all our operations and are executing a range of actions."
"By taking these tough decisions now we will be well positioned when the recovery comes," Albanese said.
Rio Tinto's AU$38.9 billion debt was a key factor in rival BHP Billiton withdrawing its hostile takeover bid last month in the midst of the global economic downturn. Much of that debt is from its $38.1 billion acquisition of Canadian company Alcan last year.
Other mining companies would likely take similar measures in response to reduced demand, said John Meyer, an analyst at Fairfax IS investment bank in London. The booming demand in recent years led to expansion and job growth for many mining companies that is no longer sustainable, he said.
"The scale of the cuts looks dramatic but we would expect to see this across the industry," he said. "Companies have expanded in recent years in response to high metals prices, but that's over now. With the recent severe falls in demand, and the recent (economic) climate, we can see mining companies pulling back markedly."
Rio Tinto spokesman Ian Head said there were no details yet on where, when or how the staff cuts would come. The Rio Tinto statement anticipated severance costs of AU$400 million.
"We're working our way through the implications of this," Head said. "We don't expect to know more until sometime in the first quarter of next year."
The world's second-largest aluminum producer stressed it remains committed to its strategy of finding, developing and operating large, long life, low cost mining assets.
The company currently expects its global iron ore production and shipments for fiscal 2009 to be around 200 million metric tons (220.46 million tons). Aluminum production is forecast at 200,000 tons (224, 000 tons) and copper production at 830,000 tons (929,600 tons).
Rio Tinto is counting on the further industrialization of countries such as China and India to support higher levels of demand for metals and minerals.
In London, Rio shares closed up 256 pence, or 20.4 percent, to 15.14 pounds ($22.50). In Sydney, where trading ended before the announcement, its stock rose 12.14 percent to AU$37.40 ($24.76).
http://www.upi.com/Business_News/2008/12/10/Mining_company_Rio_Tinto_cuts_14000_jobs/UPI-46351228928288/


Dow Chemical to slash 5,000 jobs, shut 20 plants December 8, 2008 - 6:44pm
By ERNEST SCHEYDER AP Business Writer
NEW YORK (AP) - Dow Chemical Co. said Monday it will slash 5,000 full-time jobs _ about 11 percent of its total work force _ close 20 plants and sell several businesses to rein in costs amid the economic recession. (rest of story at the link)
http://wtop.com/?nid=111&sid=1541342

Goldman to axe 200 staff in London-sources
Wed Dec 10, 2008 11:26am EST
LONDON, Dec 10 (Reuters) - Goldman Sachs Group Inc is laying off some 200 staff in London this week as part of a 10 percent cut in global headcount first reported in October, two people familiar with the situation said on Wednesday.
Goldman, which had a record 32,569 employees in August, declined to confirm the actual number of job losses and did not say how many employees it had in London.
http://www.reuters.com/article/fundsFundsNews/idUSLA72165820081210

Xstrata to cut 900 workers jobs in DomRep December 4, 2008 - 7:41pm
SANTO DOMINGO, Dominican Republic (AP) - Roughly 900 workers at the Dominican Republic's largest nickel mine will lose their jobs due to high production costs and a drop in the metal's value, international mining company Xstrata said Thursday.
http://wtop.com/?nid=111&sid=1538260

China's exports fall for first time in 7 years China's exports shrank unexpectedly in November as global demand plunged, raising the threat of heavy job losses that could fuel political unrest, and a sharper downturn in the world's fourth-largest economy.
http://wtop.com/?nid=111&sid=1544207

The boom years are over for Chinese exports as slowdown bites in workshop of the world
Jane Macartney in Beijing and Gary Duncan, Economics Editor
Made-in-China goods have filled shelves from Tesco to Burberry as consumers across the West have snapped up huge quantities of cheap products from Asia’s economic powerhouse. But exports from the “workshop to the world” have suddenly begun to fall sharply and may have shrunk last month in the latest dramatic symptom of global recession. (Continued check link)
http://www.telegraph.co.uk/finance/financetopics/financialcrisis/3692255/Asian-trade-in-Free-Fall.html

Asian trade in 'free fall' as exports to West dry up
The economic downturn in Asia has taken a sharp turn for the worse as Japan slides into deep recession and exports contract in China, Korea, and Taiwan. (The rest of the article is here)
http://www.telegraph.co.uk/finance/financetopics/financialcrisis/3692255/Asian-trade-in-Free-Fall.html

Office Depot closing 126 stores, distribution centers
NEW YORK (Reuters) — Office Depot (ODP) said Wednesday that it plans to close 126 stores and has further cut its store opening plans for 2009 as the economic downturn affects demand from small businesses and retail customers for office supplies.
Office Depot plans to close 112 underperforming retail stores in North America over the next three months. In addition, 14 stores will be closed in 2009 as their leases expire or other lease arrangements are completed, it said.
The retailer will also close six of its 33 distribution centers in North America, and says it plans to open about 20 stores in 2009, down from an earlier estimate of 40.
Office Depot expects the actions will result in charges of $270 million to $300 million.
In October, Office Depot said it would delay opening new stores posting a surprise third-quarter loss.
The decline in office supply sales has also hurt peers OfficeMax and industry leader Staples.
http://www.usatoday.com/money/industries/retail/2008-12-10-office-depot-closings_N.htm