Archive for: July 2015

Prime Minister Says Extremist Ideology The Struggle Of The United Kindom

Prime Minister David Cameron said “There are people born and raised in this country who don’t really identify with Britain.” The statement is to be said in a keynote speech in Birmingham on Monday as the government cements its strategy to tackle extremist ideology. Cameron said it was the “struggle of our generation.”

Cameron is to argue that people need to realise that Islamist extremism can be attractive to a great group of people and this is crucial to preventing the disaster. Cameron will also announce that the head of the government’s troubled families unit Louise Casey will chair a review of how to boost opportunity in isolated UK communities.

“When people say: ‘It’s because of the involvement in the Iraq war that people are attacking the west,’ we should remind them: 9/11 – the biggest loss of life of British citizens in a terrorist attack – happened before the Iraq war,” Cameron will say.

“When they say that these are wronged Muslims getting revenge on their western wrongdoers, let’s remind them: from Kosovo to Somalia, countries like Britain have stepped in to save Muslim people from massacres. It’s groups like [Islamic State], al-Qaeda and Boko Haram that are the ones murdering Muslims.”

He will continue: “Others might say: it’s because terrorists are driven to their actions by poverty. But that ignores the fact that many of these terrorists have had the full advantages of prosperous families and a western university education.

“I am not saying these issues aren’t important. But let’s not delude ourselves. We could deal with all these issues – and some people in our country and elsewhere would still be drawn to Islamist extremism.”

Power struggles at the top of the LIA

The Libyan Investment Authority has had a turbulent recent history that is a mirror of the wider unrest and civil war within the nation as a whole. No event more publically illustrated this than the sudden replacement back in October of its Chairman Abdulrahman Benyezza. A fierce battle over the $67 billion sovereign wealth fund is being fought between the internationally recognised government and Islamists who have seized control of Tripoli, the nation’s capital.

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Mr Benyezza, a former minister, was replaced as chairman of the board of the LIA on October 27th 2014 by Hassan Ahmed Bouhadi, who promptly appointed Ahmed Ali Attiga, a former World Bank official as the LIA’s new chief executive.

The change in leadership came as the LIA began court proceedings against Goldman Sachs. The fund, which was the main investment body for Muammar Gaddafi’s government claims that the Wall Street giant misled LIA employees into making $1.2 billion worth of trades in high risk investments that the LIA employees did not understand. The LIA is seeking damages in a strongly contested court battle.

The LIA has found itself caught up in the battle between the Islamist militias and the official government that is currently operating out of Tobruk. Benyezza’s replacement was seen as a consolidation of power by the Tobruk government following the Islamists’ occupation of the LIA’s office in Tripoli. The fund is currently being forced to run its business from Malta while political stability is achieved.

Investors Panic Over Grexit Fears

As Greece’s “No” vote reverberates throughout Europe, Grexit fears have spooked investors as shares everywhere have dropped in value over $22 billion during the early trade.

The S&P/ASX 200 Index finished 2014-15 with just a 1 per cent return for the year. The Greek Debt Crisis is not just to blame, according to analysts. The slowing Chinese economy and fears over overpriced bank shares were also included in the problems.

Greece’s place in the Eurozone is still uncertain despite reassurances by Greek Prime Minister Alexis Tsipras that Greece will return to the negotiating table with a “better negotiating position” with a No vote.

Many experts, including Societe Generale, indicated that losing the least amount of money is the best source of success for 2015. However, other analysts indicate that boosting higher cash allocations may be crucial and that people should be aware where they place their risks.

The Greek No vote also guaranteed a limited upside for Gold. Gold is an alternative investment during times of financial and economic uncertainties. Gold has gained as the euro slumped because of the Eurozone crisis. Its growth is also attributed to the fall of US equity futures.

Meanwhile, investors are banking in the European Central Bank to re-pledge extra liquidity for Greece as it recovers.