World equities slide as markets shun risk

(FT) -- Global equity markets fell sharply on Wednesday and investors sought the safety of government bonds as a deteriorating outlook for economic growth, led by the US, fanned an aversion for holding risky assets.

Bond yields in Germany and the US touched record lows. Sliding commodity prices helped propel the largest one-day rise in the dollar versus the euro since the "flash crash" of May 6, while the yen rose to its strongest level in 15 years.

"Developed and emerging markets showed investor concern about slowing economic growth and increased fears of the advent of some kind of dip, if not a double dip," said John Stoltzfus, strategist at Ticonderoga Securities.

The mood of risk aversion gathered pace after reports on Wednesday that Chinese industrial output had grown at its slowest rate for 11 months. Weaker reports followed in Japan and Europe. Data for June on Wednesday showed the US trade gap at a 21-month high of $49.9bn, indicating that the world's largest economy cannot rely on foreign trade to offset slowing activity.

The White House said on Wednesday that the US was "not immune to slowdowns that might start in other parts of the world".

The US Federal Reserve lowered its outlook for the economy following its policy meeting on Tuesday and said it would start buying Treasury debt in order to maintain the size of its massive $2,300bn balance sheet. CNN

Pakistanis begin Ramadan with misery of floods

Nowshera, Pakistan (CNN) -- The start of the Muslim holy month of Ramadan coincided in Pakistan on Wednesday with the nation's worst natural disaster, the staggering scope of human suffering revealing itself in wretched ways.

From the Swat Valley in the north to Sindh province in the south, as many as 15 million Pakistanis have been affected by torrential monsoon rains that have washed away villages and bloated rivers, authorities said Wednesday.

Pakistan's representative to the United Nations said many people have not yet grasped the massive scale of Pakistan's suffering and warned it could still get worse because of ongoing rain.

"It is horrendous," said Abdullah Hussain Haroon. "It is going to put us back so many years that we're not even starting on the infrastructure".

The Pakistan Disaster Authority confirmed 1,313 deaths Wednesday. It said 1,588 people have been injured and 352,291 people have been rescued. More than 722,000 houses have been damaged.

Many Pakistanis now face severe food shortages, and aid agencies stepped up appeals for global assistance. The United Nations launched a flash appeal for $460 million in humanitarian assistance, and the United States pledged another $20 million on top of the $35 million already pledged.

The Pakistani military has 55 helicopters and 621 boats taking part in aid and rescue efforts.

For many parts of southern Pakistan, the worst is yet to come. The Indus River is expected to crest Thursday in parts of Sindh, according to the Pakistani Meteorological Department.

And Pakistanis will be forced to endure the consequences of damaged infrastructure and crops lost to flooding for months.

Nowshera's Khushal Pur market, once a vibrant place of 250 food stalls, stood covered in thick, foul-smelling sludge as tractors worked to remove the mud and debris. Among the muck were tons of rotting produce that shop keepers abandoned when they fled the flooding. CNN

JetBlue pokes fun at itself over runaway flight attendant

New York (CNN) -- JetBlue on Wednesday dispensed vouchers to passengers and some levity to the public, two days after one of its flight attendants famously quit following a luggage-bin altercation.

Perhaps realizing that the best answer to the public support of Steven Slater might be humor, the company's blog had a posting entitled, "Sometimes the weird news is about us".

The blog read, "It wouldn't be fair for us to point out absurdities in other corners of the industry without acknowledging when it's about us. Well this week's news certainly falls into that category. Perhaps you heard a little story about one of our flight attendants?"

"While we can't discuss the details of what is an ongoing investigation, plenty of others have already formed opinions on the matter. Like, the entire Internet".

The blog also praises 2,300 "fantastic, awesome and professional Inflight Crewmembers".

The case of Slater has been a web sensation, and some consider him a folk hero.

According to blogs and accounts, Slater received a small gash on his head during an altercation with a passenger. In a blaze of "take this job and shove it," he reportedly used some profanity on the plane's intercom, said he was quitting, grabbed some beers and deployed the plane's chute before sliding down and running away.

Meanwhile, each person on the Pittsburgh, Pennsylvania, to New York flight Monday will receive a $100 voucher, JetBlue said.

"This is consistent with our long-standing policies," spokesman Steve Stampley told CNN. "JetBlue often provides vouchers to our customers when they experience a disruption or otherwise abnormal circumstance. This event falls into that category".

Slater, who faces criminal charges in the incident, told CNN affiliate WABC Wednesday that support from the public has been "so encouraging and so special".

"There's some really great people out there, and I'm getting a glimpse of that," he said. "It's a surprise because, obviously, I have been away for a little while".

Slater left a Bronx detention center Tuesday night. Slater had a scratch on his forehead.

He said, it was "more than likely" he will lose his job. CNN

One policeman shot dead, 2 wounded in southwest of Moscow

One policeman was killed and two wounded after unknown assailants opened fire on them early on Thursday morning in the southwest of the Russian capital, a spokesman for the Moscow police said.

The attackers opened fire from automatic weapons on a police patrol on the Profsoyuznaya street at 0:40 Moscow time (20:40 GMT, Wednesday) and then fled the scene of the crime in a Lada car.

The Moscow police launched a special operation, codenamed Volcano, to detain the attackers.

A source in the police said, however, that the two wounded policemen managed to detain one of the assailants.

The last time a policeman was shot dead in the Russian capital was in March of this year.

Police officer Denis Klimovich was shot dead, when he and his colleague stopped a BMW car and asked to see the driver's identification. His colleague, Konstantin Bykov, was seriously injured in the incident. The suspected killer was arrested several days later. RIA Novosti

Georgia decries Russian missile deployment in Abkhazia

The Georgian Foreign Ministry on Wednesday protested the deployment of Russian S-300 air-defense systems on the territory of its former republic of Abkhazia.

Russian Air Force head Col. Gen. Alexander Zelin said earlier on Wednesday S-300 systems had been placed in Abkhazia to protect the airspace of Abkhazia and South Ossetia. He did not say how many S-300s were deployed.

The ministry described the Russian move as "extremely dangerous and provocative" and threatening "not only the Black Sea region, but European security as a whole".

It said the purpose of Russia's action was "absolutely incomprehensible".

Georgian Security Council head Eka Tkeshelashvili said Russia was "further tightening its military control over Georgia".

"Instead of pulling out its troops from Georgian territory, Russia is augmenting its military control in these regions," she said.

Georgia's state minister for reintegration, Deputy Prime Minister Temur Yakobashvili, said earlier on Wednesday the deployment of S-300 systems threatened the balance of forces in the region. He said that Russia's actions were also aimed against NATO and said Georgia would protest the S-300 deployment in international organizations.

Abkhazia's foreign minister, Maxim Gvindzhia, said on Wednesday the S-300 deployment was in compliance with the current defense cooperation agreement with Russia, adding that it was necessary due to the "constant threat" coming from "Georgia and its supporters". RIA Novosti

Russia to install firefighting gear on Il-76 military planes

The Russian Air Force will install firefighting equipment on its Il-76 military transport planes, the force commander said on Wednesday.

Col. Gen. Alexander Zelin said this would enable an Il-76 to dump up to 40 tons of water on a fire from the air.

"I believe that fires should be fought by massive efforts," he said, adding that "a simultaneous dumping of around 300 tons of water is [especially] effective".

The government has come under criticism for its ability to respond adequately to the fires, and several foreign countries sent planes to help the firefighting efforts.

Prime Minister Vladimir Putin on Tuesday took part in extinguishing wildfires in Ryazan Region on board an amphibious firefighting airplane. He dumped approximately 24 tons of water from aboard a Be-200 amphibious firefighting plane on forest fires some 200 kilometers southeast of Moscow, extinguishing two of them completely. RIA Novosti

Medvedev slams envoy for poor work in North Caucasus' Dagestan

Russian President Dmitry Medvedev on Wednesday criticized his presidential envoy to the North Caucasus region for the poor situation in the volatile North Caucasus republic of Dagestan.

Medvedev instructed Alexander Khloponin to look at the possibility of giving the republic money from the federal program aimed at developing southern Russia.

Dagestani President Magomedsalam Magomedov asked Medvedev to make the change when the three met in Sochi on Wednesday.

"I believe such a program could have taken into account the problems of Dagestan more completely. It has proved itself wonderfully in Chechnya and Ingushetia," Magomedov said.

Medvedev approved the idea. "Under large programs, aid is usually wasted...If you conclude that it [the program] is worth [implementing], we will nip off a slice from the Federal Target Program South," Medvedev said, adding that the situation in Dagestan genuinely demanded such action. RIA Novosti

Abkhazia says Russian missile deployment 'under agreement'

The deployment of S-300 air defense systems in Abkhazia is in compliance with the current defense cooperation agreement with Russia, the foreign minister of the former Georgian republic said on Wednesday.

"The deployment of the S-300 system is part of our bilateral agreements on military cooperation," Maxim Gvindzhia said.

Russian Air Force head Col. Gen. Alexander Zelin said earlier on Wednesday S-300 systems had been placed in Abkhazia to protect the airspace of Abkhazia and South Ossetia. He did not say how many S-300s were deployed.

Gvindzhia said the deployment was necessary due to the "constant threat" coming from "Georgia and its supporters".

"Therefore, we are ready for everything," he said.

Valery Yakhnovets, the defense minister of South Ossetia, another breakaway Georgian republic, said although his country had a reliable air defense system, the deployment of an S-300 complex on its territory "would not be superfluous".

An advanced version of the S-300 system, the S-300PMU1, has a range of over 150 kilometers (over 100 miles) and can intercept missiles and aircraft at a wide range of altitudes, making it effective in warding off air and missile strikes. RIA Novosti

Russian S-300 systems in Abkhazia threaten regional balance of forces - Georgia

The deployment of S-300 air defense systems in Georgia's breakaway region of Abkhazia threatens the balance of forces in the region, Georgia's State Minister for Reintegration Temur Yakobashvili said on Wednesday.

The commander of the Russian Air Force, Col. Gen Alexander Zelin announced earlier on Wednesday that Russia had deployed S-300 missiles in Abkhazia to protect the airspace of Abkhazia and South Ossetia in conjunction with other air defense means deployed by the Ground Forces.

"This move primarily contradicts the cease-fire agreement [between Russia and Georgia] concluded on August 12 [2008]," Yakobashvili said in an interview with Novosti-Georgia news agency.

"The deployment of this class of air defense systems is not only aimed against Georgia, it also changes the balance of forces in the region," the Georgian minister said.

Yakobashvili added that Russia's actions were also aimed against NATO and said Georgia would protest the S-300 deployment in international organizations. RIA Novosti

Russia, NORAD complete joint air defense drills

The Russian Air Force and the North American Aerospace Defense Command (NORAD) completed on Wednesday the active phase of joint anti-terrorism drills in the Far East.

The exercise, dubbed Vigilant Eagle, was carried out on August 6-11, and involved Russian, Canadian and U.S. air force personnel operating from command centers at the Elmendorf airbase in Alaska, and in Khabarovsk, Russia.

"The personnel [involved in the drills] exhibited a high degree of professionalism in coordinating air missions and exchanging information," a senior Russian Air Force official said commenting on the outcome of the drills.

The exercise scenario, put together by NORAD and U.S. Northern Command, created a situation requiring both the Russian Air Force and NORAD to launch or divert fighter aircraft to investigate and follow a U.S. flagged Golfstream 4 plane on an international flight that has been taken over by terrorists.

The drills involved U.S. AWACS E-3B and Russian A-50 airborne warning and control aircraft, Russian MiG-31 and Su-27 fighters and U.S. F-22 interceptors, along with refueling aircraft from both countries. RIA Novosti

FBI: 'Granddad Bandit' suspect arrested in Louisiana

(CNN) -- A tip led to Wednesday's arrest in Louisiana of a suspected serial bank robber dubbed the "Granddad Bandit," federal authorities said.

Michael Francis Mara, 52, was captured at his home in Baton Rouge, FBI Special Agent Sheila Thorne told CNN.

The FBI went to the residence to execute an arrest warrant when Mara retreated into the house, she said. "After six hours, he came out and was placed under arrest," she added.

The "Granddad Bandit" is wanted in at least 25 bank heists in 13 states -- from Virginia to Texas to Kansas -- since 2008, the FBI said in a statement. He was given the name because he appeared elderly, Thorne told CNN.

The bandit, described as balding, heavy and wearing glasses, captured the public's attention because of his non-threatening image and his nickname.

But federal authorities said he was anything but harmless. He would point to his waistband and indicate he had a gun, but it was unclear if he actually had one.

The Federal Bureau of Investigation's field office in Norfolk, Virginia, got a tip earlier this month, the U.S. Attorney's Office for the Eastern District of Virginia said Wednesday.

The tipster identified and provided photographs of Mara that were compared to surveillance footage, the office said in a statement. Investigators "allegedly found consistent key identifiers between the surveillance images and the photographs of Mara, including a hat, eyeglasses and wrist watch that appear to be identical".

Mara has been charged with one count of bank robbery and is in custody, Thorne said. He could receive a 20-year sentence if convicted.

Mara worked for a vehicle transportation company and traveled from state to state on business, the FBI said. CNN

Capello ends Beckham's England career

(CNN) -- David Beckham's glittering international career has apparently been brought to an end after England coach Fabio Capello announced his fate in a pre-match television interview.

Capello said the 35-year-old Beckham was now "a little bit old" -- ending the former Manchester United and Real Madrid star's hopes of adding to his 115 caps.

Los Angeles Galaxy midfielder Beckham had hoped to crown his England career with a fourth World Cup finals appearance in South Africa, but was ruled out after suffering a serious Achilles tendon injury in March while on loan with Italian club AC Milan.

He went to South Africa anyway as an ambassador for England's 2018 World Cup bid and as a mentor for the team, watching the matches from the bench alongside Capello. CNN

Kagame wins re-election in Rwanda, official results show

(CNN) -- Rwandan President Paul Kagame has won re-election with 93 percent of the vote, with all districts counted, the Rwandan National Electoral Commission said Wednesday.

Turnout was registered at just over 95 percent, it said.

Electoral observers had expected the outcome, and Kagame claimed victory after early results gave him a huge lead in the nation's second presidential race since the 1994 genocide.

Observers said the voting was peaceful and "largely accurate".

Kagame welcomed the early results at a massive party Tuesday at the national stadium in the capital of Kigali. Thousands of supporters got free drinks and danced to live music.

"This is your victory, this is a victory for all Rwandans," Kagame said during the celebration speech, in vernacular Kinyarwanda. "Our development depends on you".

Human rights groups had expressed concern over violence and repression leading up to the vote, but Salim Ahmed Salim, chairman of the Commonwealth Observation Group, lauded the polling as transparent. CNN

Missing French chef's body found stuffed in freezer

Paris, France (CNN) -- The body of a retired restaurateur who's been missing for two years has been found in a freezer in the French city of Lyon, police there told CNN Wednesday.

The corpse of Jean-Francois Poinard, 71, was discovered Tuesday in the apartment he had shared with a girlfriend in Lyon, regarded as the culinary capital of France.

Police said an autopsy will be conducted.

The French newspaper Le Monde cited a police source as saying the man's girlfriend, 51, has been taken into custody in connection with the case.

Police said the body was found after a tip from a close family member of Poinard, who was considered one of Lyon's top chefs in the 1970s and 80s. CNN

Montreal man alleged to have killed sister

MONTREAL, Aug. 11 (UPI) -- A young Montreal man has been charged with beating and stabbing his sister and leaving her body in a bathtub for their mother to find.

Maor Attar, 18, entered a not guilty plea Tuesday to a charge of first-degree murder, the Montreal Gazette reported. He followed his arraignment by telephone from a bed at Jewish General Hospital.

Shirel Attar, 14, a student at Marymount Academy, was killed Monday. Attar was not home when the body was discovered but was found a few hours later walking nearby.

Investigators say he may have tried to kill himself with poison.

Attar graduated from Hebrew Academy last year. Yigal Bettan, 15, a student at the school, said Attar then went to Israel and had recently come back to study at a religious school in Montreal. UPI

Inflation: Silver $1 auctions for $1.2M

BOSTON, Aug. 11 (UPI) -- A rare 1794 U.S. silver dollar, one of the first minted in the country, sold for $1,207,500 at a Boston auction, the auctioneers said.

Bowers and Merena Auctions of California, which held the auction Saturday at the Park Plaza Hotel and Towers in Boston, said the so-called Flowing Hair silver dollar is considered the fourth finest still in existence. Only about 140 are believed to remain in the world, the Boston Globe reported Wednesday.

The coin features an image of a woman with long flowing hair, which Congress designed to represent liberty, said Jeff Ambio, a rare coins expert for Bowers and Merena Auctions.

Brian Kendrella of Spectrum Group International, the parent company of Bowers and Merena, said the coin was purchased by an anonymous bidder. UPI

Teen gets 6 months for sex in Abu Dhabi

ABU DHABI, United Arab Emirates, Aug. 11 (UPI) -- A 14-year-old girl from a Brazilian family has been sentenced to six months in prison in Abu Dhabi for having sexual relations with a Pakistani bus driver.

The driver, 25, received a year's sentence at a hearing Tuesday, Gulf News reported. Both are to be deported when they are released.

The girl's father told police his daughter had been sexually assaulted. But investigators said she had been communicating with the man before they had sex. UPI

Crude oil supplies down 3 million barrels

WASHINGTON, Aug. 11 (UPI) -- U.S. crude oil inventories declined by 3 million barrels in the week ending Aug. 6, the U.S. Energy Information Administration said Wednesday.

The agency said crude inventories fell to 355 million barrels during the week with supplies remaining above the upper limit of the average range for this time of year.

Gasoline inventories rose by 400,000 barrels in the week. At 223.4 million barrels, stockpiles of gasoline are also above the upper limit of the average range.

Supplies of distillate fuels, which include heating oil, rose by 3.5 million barrels to 173.2 million barrels.

Inventories of finished gasoline were unchanged, while gasoline blending components rose during the week, the energy agency reported.

Using a four-week rolling average, demand for motor gasoline, averaging 9.4 million barrels per day, rose 3.3 percent from a year ago, while demand for distillate fuel, at 3.5 million barrels per day, rose 3.6 percent from a year ago. UPI

CBS: 'The Talk' to premiere Oct. 18

NEW YORK, Aug. 11 (UPI) -- A new U.S. daily daytime chat show, "The Talk," will debut in October, CBS announced Wednesday.

Starring Julie Chen, Sara Gilbert, Sharon Osbourne, Holly Robinson Peete, Leah Remini and Marissa Jaret Winokur, the series is intended to examine "topical events and contemporary issues through the eyes of six female co-hosts who are all mothers," the network said.

"The co-hosts -- all moms whose children range in age from infant to adult -- will swap stories, challenge each other on issues and engage the studio audience and viewers at home with events from the headlines and their own homes through the lens of motherhood," CBS added. UPI

Anderson helps roast Hasselhoff

NEW YORK, Aug. 11 (UPI) -- Pamela Anderson helped roast her former "Baywatch" co-star David Hasselhoff for a U.S. television special, Comedy Central said Wednesday.

The 90-minute program, "Comedy Central Roast of David Hasselhoff," is to premiere Sunday night with Seth MacFarlane serving as roast master.

In line to skewer Hasselhoff were Whitney Cummings, Greg Giraldo, Gilbert Gottfried, George Hamilton, Hulk Hogan, Lisa Lampanelli, Jeffrey Ross and Jerry Springer.

An uncensored version of the event will be available Monday for download on iTunes and xBox Live Marketplace, Zune, PlayStation and Amazon.com. UPI

Expert: Glowing shrimp not a health risk

NEWPORT, Ore., Aug. 11 (UPI) -- Oregon experts said the glow-in-the-dark effect some consumers have been reporting in their shrimp is likely the result of non-harmful marine bacteria.

Kaety Hildenbrand of Oregon State University's Sea Grant Extension said many consumers have been calling with concerns about pink shrimp purchased on the coast or in large stores glowing in the dark, The (Eugene) Register-Guard reported Wednesday.

Hildenbrand said several types of non-harmful marine bacteria can cause seafood to appear luminescent. UPI

Sons of Iraq joining al-Qaida?

RAMADI, Iraq, Aug. 11 (UPI) -- Al-Qaida in Iraq is exploiting the political vacuum and pending departure of U.S. combat troops in Iraq by courting tribal security forces, leaders said.

The U.S. military put former Sunni insurgents on its payroll in 2008 to wrestle the restive province of Anbar away from al-Qaida forces. The group, Sons of Iraq, later became the Iraqi backbone of the counterinsurgency strategy dubbed "the surge".

Sabah al-Janabi, the tribal leader of the Anbar Awakening Councils, which spawned the force, told London's Guardian newspaper that several members of the Sons of Iraq were taking payments from al-Qaida.

"This is my neighborhood and I know every single person living here," he said. "And I know where their allegiances lie now".

He said al-Qaida in Iraq was making a comeback as U.S. combat forces wrap up their mission and Baghdad enters its fifth month without a new government.

Al-Qaida in Iraq last month planted its flag over several police checkpoints in the Iraqi capital. UPI

Guatemala seen in better economic shape but security is worse

GUATEMALA CITY, Aug. 11 (UPI) -- Guatemala has emerged in a better shape from the shocks it received in the 2008 global economic downturn and is now set on a stable course toward recovery, expert reports on the country's financial outlook said.

Fitch Ratings said it was affirming the Central American country's local and foreign currency Issuer Default Ratings, which are used to measure risk, at "BB+".

It said Guatemala's rating outlooks on both local and foreign fronts are stable. At the same time, Fitch has affirmed Guatemala's short-term IDR at "B" and the country ceiling at "BBB-".

There was no immediate Guatemalan government reaction to the rating action but analysts said the rating would enable the country to manage better its financial transactions while its political situation remained fragile.

In June the International Crisis Group, an independent, non-profit, non-governmental organization, published a damning report, "Guatemala: Squeezed between Crime and Impunity," which said the country had become a "paradise" for organized crime.

The Fitch assessment of a stable outlook for Guatemala means that, while large questions loom on the political situation, the government is seen by the international financial community to be managing adequately after the negative effects of the global economic and financial crisis.

Some recent cyclical deterioration in Guatemala's key sovereign credit metrics was minimal relative to peer credits, Fitch said.

"Guatemala's sound macroeconomic fundamentals and its authorities' commitment to managing downside risks helped the country's resilience during the worst global economic downturn in recent history," said Theresa Paiz Fredel, senior director for Latin American sovereign ratings at Fitch. UPI