Global News Journal

from Reuters Investigates:

Inside the Pirates’ Web

Reuters trade correspondent in Washington Doug Palmer had an unusual assignment: buy a fake Louis Vuitton handbag on the Internet, and take it to a LVMH store for a comparison test, before handing it over to U.S. authorities.

    What was startling was how easy it was to find websites selling a dazzling array of stuff online. This is the new face of piracy and its costing businesses billions.   No need to skulk around back alleys or some pirate's rental van to browse through footwear, watches, DVDs and whatnot. Just pick out your LV shoulder tote from a virtual catalog on a website based in China. It looks and feels like the real thing at a fraction of the price.

Counterfeit goods ranging from shoes to software seized by the U.S. government  on display at the National Intellectual Property Rights Coordination Center in northern Virginia, October 7, 2010.  REUTERS/Jason Reed  

    The bulk of these goods comes from China. The workshop of the world is also the sweatshop oif the world when it comes to making fake goods.

    Reuters Shanghai correspondent Melanie Lee and a photographer accompanied a private investigator to grubby neighbourhoods around Guangzhou to find the leather workshops that make these fake bags. She saw mothers and daughters through the windows working the leather, and young toughs outside serving as lookouts. Chinese authorities occasionally do raid these places, which are often run by triad gangs. Photographer Tyrone Siu stealthily took photos with his iPhone.

 Melanie and her PI then followed the trail of the fake handbags to an illegal market a few miles away. The Baiyun wholesale market, occupying a space equivalent to five football fields, is the biggest market for leather goods in the world. Much of the merchandise is counterfeit.

    The market is occasionally raided -- including the day they went. But the shopkeepers are used to it. It's like the Whack a Mole game. As fast as you can hammer down one operation, another one pops up somewhere else.

from Reuters Investigates:

Mongolia’s El Dorado stirs shareholder battle

In Mongolia's South Gobi desert lies Oyu Tolgoi, touted as having the world's largest untapped copper and gold deposits. Little wonder then that this "El Dorado" has become a boardroom battleground between the relatively unknown Ivanhoe Mines and its biggest shareholder, the giant Australian mining company, Rio Tinto.  

Our attempts to get near this mine or elicit any comment from Ivanhoe were about as fruitless as the Spanish conquistadors attempts to find the legendary "El Dorado", or "Lost City of Gold" in the 16th century. Twice Ivanhoe stopped our reporters from visiting the mine with delegations from the investment community, saying reporters were not  allowed to mingle with bankers on visits to the mine. We don't know why that would be. We mingle with them pretty often in other contexts and usually find each other's company amusing and mutually informative.

Perhaps that's the point of Ivanhoe's policy. The company and its executive chairman, Robert Friedland, do not seem to trust the media much. They maintain a robust website,   http://www.ivanhoemines.com/s/The_Facts.asp., that pretty much takes issue with every story written about them. Friedland is legendary in the business for spinning a story and trying to control the narrative.

Friedland has lived a colourful and adventurous life. Perhaps he admired in his youth the swashbuckling medieval hero of Sir Walter Scott's novel, Ivanhoe, a noble in the disguise of the "black knight" who fights alongside Robin Hood, and so named his company after him. 

Friedland has had a Midas touch when it comes to monetising mining assets over the years in a business where exploration is fraught with risk. In that sense. he calls to mind the original El Dorado, or "Golden One". This was the name given to the kings of the Muisica tribe in what is now Colombia, when they were undergoing an initiation rite for taking the throne: they covered themselves in gold dust before diving into lake Guatavita. 

In time, the Muisica towns and their treasures fell to the conquistadores, who never did find the "lost city". Friedland can only hope that his efforts to foil Rio Tinto's efforts to take over Ivanhoe on the cheap will fare better than the Muisica's attempts to fend off the Spanish. He may need a Robin Hood or a "white knight", however, to come to his rescue.

(Photo: Ivanhoe Executive Chairman Robert Friedland  (right) points out features of the control room at the Oyu Tolgoi gold and copper mine in Mongolia to the country's prime minister, Sukhbaatar Batbold (centre). REUTERS/company)

from India Insight:

Going global in India’s chaotic way

India is globalising, but not the way much of the world wants.

That rather contradictory thought nagged at me one morning during the chaotic Commonwealth Games here in New Delhi.

On the road to the media venue's gate, I trudged past a squatter's family living in a tarpaulin. The mother was helping her son pee on my left. Rubbish, the smelly, sickly kind, lay to my right. My shoes sunk in mud from an unfinished pavement.

Hardly the stuff of a showcase international event meant to rival China. But after four years in India, the scene appeared normal. So was news during the Games that stocks had hit a near three-year high and that the Economist had predicted India's economy would soon outpace China.

For the umpteenth time, a centuries-old history bubbled under the surface of this emerging global power, a pressure cooker of India's own eccentricities and ills that seem to avoid blowing up, despite straining at the seams.

Indian history is littered with the mistaken predictions of sceptical foreign correspondents who have underestimated the ability of this country, with one sixth of humanity, to confound its critics despite massive social, communal and ethnic problems.

from Reuters Investigates:

Morbid money-spinners

If the life settlements market seems ghoulish, here’s a British scandal which isn’t doing the image of the business any favours. It’s one of the worst the country’s seen.

Around 30,000 mainly elderly investors in the UK put their money into a company called Keydata, hoping to make a little extra cash to fund their own retirement with the promise of a healthy return.

What they were buying sounded kosher, even if it did depend on how fast their wealthy American counterparts were dying. Of course, the investors may not have known that.

As is so often the case with these things, the projections were a little optimistic. And then some other irregularities blew up. Around 100 million pounds went missing, one of the business’s partners dropped dead in Singapore and the investment company was shut down by the regulators, leaving British pensioners like Tony and Pam Tobin out of pocket.  The Serious Fraud Office is investigating.

Tony and Pam Tobin

Undeterred, the other key character behind Keydata is determined to fight the regulators’ decision.  "I am someone who can make the impossible possible," he tells us.

Ordinary Indonesians mourn loss of Finance Minister Indrawati

By Sunanda Creagh

The decision by Indonesia’s reformist Finance Minister Sri Mulyani Indrawati to move to the World Bank must have thrilled those politicians who lobbied hard to dethrone her and derail her anti-corruption drive. But if letters to the editor in the local media are any guide, Indonesia’s ‘wong cilik’ or the little people, as the man on the street is called here — are in mourning. “It was a black Wednesday in the history of our nation,” read one reader’s letter to the Jakarta Post. “One of the most honest and qualified people and someone who is known as the hope, finally succumbed to political pressure by the political elite that prefer to remain.” Many letter-writers have begged her to return in 2014 to run for president, while others have expressed fears that, without her, Indonesia will return to the bad old days of cronyism. “We didn’t want to see you driven out. Take pity on the people of Indonesia!” one reader, Daslam Al Maliki, wrote on the Indonesian-language news website Tempo Interaktif. Indrawati, as well as being a widely respected economist, is a notoriously tough cookie who stood up to powerful businessmen and politicians who wanted the rules bent in their favour. In retaliation, she was made the target of an inquiry into the 2008 decision to bail out the ailing Bank Century.

Chief among her detractors was Golkar, the party of former President Suharto, now headed by business magnate and politician Aburizal Bakrie. Her departure has also been met with a deafening silence from the country’s business elite. Few among Indonesia’s tycoons seem sad to see the back of a politician who made it her mission to end collusion between powerful businessmen and crooked officials and lawmakers. Several have paid lip service to her abilities as an economist but no-one — except the distressed letter-writers — appears to be pleading for her to stay. The yawning gap between the reponses of the public on the one hand and the political and business elite on the other underlines how out of touch those in power are with their constituents. Last year’s elections were fought over the issue of reform, the fight against corruption, as means to deliver better economic growth and more jobs in a country of high unemployment and underemployment. A recent poll by the Indonesian Survey Institute found that those parties that pushed hardest to investigate Indrawati and the Bank Century bailout decision have actually lost support. Political analysts and economists are now wondering if her departure is a sign that President Susilo Bambang Yudhoyono’s commitment to institutional reform is flagging. “What is wrong with Indonesia? While the top brains are needed to run this country, even the President approves this brain drain,” one reader, ‘Walt’, wrote in the Jakarta Post. Not all letter-writers are Indrawati fans; several are suspicious she is leaving the country to avoid further questioning over the Bank Century case, an allegation Indrawati has dismissed. But to many Indonesians, her bruising political battles have turned her into a national heroine while her new job on the international stage will bring prestige to Indonesia Indrawati herself appears relieved and happy she is moving on to a job that will, hopefully, involve a little less mud-slinging. “Don’t cry for me, Indonesia. I go for the good of all,” read one headline in the Jakarta Post, a wry reference to Argentinian leader Evita Peron.

PHOTO CREDIT: Sri Mulyani Indrawati addresses reporters. REUTERS/Enny Nuraheni

from Environment Forum:

Oil sands and ethical investing at a price

At BP’s AGM on Thursday, ethical investors including the Co-Op and Calpers failed in their effort to convince BP to review its biggest planned investment in Canada’s oil sands.

Nonetheless, 9 percent of investors voted in favour of a review -- a much bigger venting of shareholder angst about a single project than oil companies are used to hearing.

Was this a vote for the environment or a vote for ethical fund managers’ own businesses?

The oil sands business produces even more CO2 than traditional oil and the investor group, which also included environmental and faith groups, said they were concerned that if governments sought to fight climate change by hiking charges for emitting CO2, the Sunrise project may turn prove an economic catastrophe for BP.

Analysts don’t see a serious risk of this but the oil sands industry could still be an economic catastrophe for socially responsible fund managers.

With environmental groups successfully marketing oil sands as the dirtiest end of a dirty business, ethical fund managers will come under more pressure to exclude big oil companies – most of which now invest in squeezing crude from Alberta’s bitumen-drenched soil – from their funds.

That’s Citgroup’s view at least: “Institutions promoting “climate aware” products will continue to come under pressure if found to be exposed to the (oil sands) sector,” the bank said in a research note on Wednesday.

U.S. cancer case the best? It is if you can pay for it…

Angela Kegler McDowell thought she was doing everything right.

A 38-year-old small business owner, she had bought her own personal health insurance and kept paying her premiums, even as they rose from $293 a month to $804 a month.

The insurance company said it had to raise her premiums when her breast cancer came back and she was forced to undergo expensive chemotherapy.

“When the renewal came up in January, they told me I was a high risk to insure and they were dropping my insurance,” McDowell told Reuters in an interview. “Even if I had a million dollars a month to pay for insurance, I couldn’t get it.”  See her on video here in a related story, young adults.

McDowell has been lobbying her members of Congress to ask them to make sure the healthcare reform plan ensures that private insurance — sure to be part of any reform package –cannot drop patients if their coverage becomes too expensive.

Plans also need to be more affordable, says McDowell, who estimates she spent $42,000 out of pocket on her 20 percent co-pays and wiped out her family’s life savings even before her insurance company dumped her.

McDowell was struggling to hold her company together, battle cancer, and fight with her health insuance company– which she doesn’t want to name because she is still negotiating to be reinstated. “It was truly more than a medical battle. It was a financial battle,” she said.

Back to the future in Malaysia with Anwar sodomy trial II

By Barani Krishnan

A decade ago, Malaysia’s former deputy prime minister Anwar Ibrahim was on trial for sodomy and corruption in a trial that exposed the seamy side of Malaysian justice and the anxieties of a young country grappling with a crushing financial crisis and civil unrest.

Anwar is Malaysia’s best known political figure, courted in the U.S. and Europe and probably the only man who can topple the government that has led this Southeast Asian country for the past 51 years.

Anwar vowed in a recent interview to fight what he says are trumped up charges.

The 14 months I spent covering the 1998 trials saw Anwar accused of sodomy with three men and having sex with a woman over a period of years. This case is simpler, there is just one accuser. All homosexual acts are illegal in this mainly Muslim country and sex outside marriage is illegal for Muslims.

The first trial was gruelling. Lines began as early as four in the morning as people tried to get into the court that could seat less than 200. Most of the spectators were ordinary people, but there was a sprinkling of dignitaries and businessmen who had known Anwar when he was in office.

There was a separate media queue and again a fight to get in line as dozens of reporters from local and international outlets jockeyed for space. Ringing the court were hundreds of riot police, backed by watercannon, waiting for trouble in a country where there were daily protests at the time, often involving tens of thousands of people.

Cattle Rustling, Pythons and Boogie Angola Style …. the best reads of May

Climate health costs: bug-borne ills, killer heat Tree-munching beetles, malaria-carrying mosquitoes and deer ticks that spread Lyme disease are three living signs that climate change is likely to exact a heavy toll on human health. These pests and others are expanding their ranges in a warming world, which means people who never had to worry about them will have to start.

Spain rearranges furniture as economy sinks

Moving a 17-metre high monument to Christopher Columbus 100 metres down the road is how the Spanish government is interpreting the advice of John Maynard Keynes. The economist once argued it would be preferable to pay workers to dig holes and fill them in again, rather than allowing them to stand idle and deprive the economy of the multiplier effect of their wages.

Picking up the pieces from Afghanistan’s war

U.S. gunners scanned a lush Afghan valley from their helicopter, as a  white van containing a badly burned baby inched toward another Black Hawk waiting at the army outpost. Eight soldiers had flown into the heart of hostile eastern Afghanistan, in a convoy of one air ambulance and one “chase” helicopter for protection, to collect 18-month-old Amanullah who knocked a pot of scalding water over his legs, penis and scrotum.

In Brazil, extreme weather stokes climate worries

No one could say they hadn’t seen it coming. The sand dunes had been advancing for decades before they swallowed the houses of families in Ilha Grande, an island in Brazil’s Parnaiba river delta. Standing on a dune that covers his old home, one man describes the landscape of his childhood — cashew trees as far as he could see. Not a dune in sight.

Sex, drugs and toxic shrubs: the best reads of March

Cubans indulge baseball mania at Havana’s “Hot Corner”

For all the shouting and nose-to-nose confrontations, visitors to Havana’s Parque Central might think they had walked into a brawl or counter-revolution … but here in the park’s Hot Corner,  the topic almost always under discussion is baseball, Cuba’s national obsession.

Iraq’s orphans battle to outgrow abuse

At night, Salah Abbas Hisham wakes up screaming. Sometimes, in the dark, he silently attacks the boy next to him in a tiny Baghdad orphanage where 33 boys sleep on cots or on the floor. Salah, who saw both his parents blown apart in a car bomb, can never be left alone at night.

Colombian soccer club tries to forget cocaine past

Colombian soccer champions America de Cali are first to admit cocaine dollars had a hand in their sporting heyday. But after years of paying the price, they’re trying to wipe the slate clean … Cali’s mayor is leading a campaign to have the team removed from a U.S. anti-drugs blacklist.