Thursday, July 5, 2012

DTN News: Aerospace/Defense Headlines - News Dated July 5, 2012

Defense News: DTN News: Aerospace/Defense Headlines - News Dated July 5, 2012
 Source: DTN News - - This article compiled by Roger Smith from reliable sources including latest updatesDefense News, Aerospace/Defense Headlines - News & Yahoo
(NSI News Source Info) TORONTO, Canada - July 5, 2012: Comprehensive daily news related to Aerospace/Defense for the world of TODAY.
*Comprehensive daily news related on Aerospace/Defense for the world of TODAY
Thursday July 5, 2012
Wednesday July 4, 2012
Tuesday July 3, 2012
*Link for This article compiled by Roger Smith from reliable sources including latest updatesDefense News, Aerospace/Defense Headlines - News & Yahoo
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DTN News - RUSSIA DEFENSE NEWS: Russian Air Force To Take Part In USAF Red Flag Training Exercises

Defense News: DTN News - RUSSIA DEFENSE NEWS: Russian Air Force To Take Part In USAF Red Flag Training Exercises
Source: DTN News - - This article compiled by Roger Smith from reliable sources The Voice of Russia
(NSI News Source Info) TORONTO, Canada - July 5, 2012: Despite a cooling off in relations between Russia and NATO countries, neither party has refused taking part in joint military programs.

One such program is the regular aerial combat training exercise of the US Air Force and its allies, called “Red Flag”. The next exercise is scheduled for October 2012.

US Military command came up with the idea of conducting Red Flag exercises during the Vietnam War, when the USAF and naval aviation primarily used heavy multi-functional bombers such as the F-4 Phantom-II and F-105 Thunderchief. These bombers demonstrated their inability to engage in close combat with Vietnam’s light MIG aircraft. The reason for such failings was the strong reliance placed on powerful radars and medium-range missiles on the new American fighters. However, in practice the engagements very often did not go the way the pre-war theoretical schemes designed them to and the ratio of losses did not benefit the American side.

The situation had to be corrected – especially since at the same time in the other part of Asia above the sands of Levant, pilots of the Israeli Air Force on French and American aircraft showed wonderful results in aerial combat missions against Arabs who had far more powerful aircraft compared to Vietnam and who had gone through the same Soviet school.

The US Air Force then ordered a study known as Project Red Baron II, which showed that a pilot's chances of survival in combat dramatically increased after he had completed 10 combat missions. As a result, Red Flag, since starting in 1976, had the goal of offering every pilot and weapon systems officer (WSO) the opportunity to fly 10 realistically simulated combat missions in a safe training environment to give them more experience in real combat situations.

Today the Red Flag exercise is an advanced aerial combat exercise conducted in several cycles during the year. Besides Red Flag and Red Flag-Alaska, which mainly focus on fighter aerial combat, there are other cycles as well. For instance, the Joint Expeditionary Force Experiment (JEFX) – a large scale exercise for the headquarters of the US Air Force and its allies.

There is also Jaded Thunder, which is a series of combat training exercises in the course of which pilots from the US Air Force, Naval, and Marine aviation learn to detect and identify ground targets, including those camouflaged as civilians or civilian objects in a congested urban area.

Finally, there is MAFEX – Mobility Air Forces Exercises. These involve training transport aviation, where pilots learn how to interact using various communications and target detection devices as well as in the situation of a radio-electronic war.

In spring of 2012 it became known that the Russian Air Force is to participate in the Red Flag training exercise in the fall of 2012 together with Americans. From 8 until 19 of October, Red Flag Air Combat Exercise 13-1 will be held at Nellis Air Force Base, Nevada (the exercises are numbered in accordance with the fiscal years, and exercise in the fall will be number one in the 2013 fiscal year). Like India, who participated in the Red Flag several years earlier using its Russian-made SU-30 MKI, Russia will get a chance this year to test its aircraft in realistic combat maneuvers with USAF aircraft. This chance is very important, since up until now the only Russian aircraft of the fourth generation which fought in a real combat situation against western aircraft has been the MIG -29, but the possibility of deploying it in the conditions of very specific wars of 1991 and 1999 was limited. Under such circumstances, the chance to test modernized Russian aircraft such as the SU -27 SM, SU-30M2, MIG -29SM and other strike aircraft – despite simulations, they are still against real western aircraft and pilots – is too attractive to be miss out on.

There is a political question, however: “Who are we friends against?” The answer is very simple: against nobody. Russia and the United States have been successfully talking the same language in the military sphere for a long time. Here, more problems unite the two countries than separate them. At the same time, the existing contradictions can be solved over a short period of time. However, as one could tell, that does not prevent us from continuing to study each other.

*Link for This article compiled by Roger Smith from reliable sources The Voice of Russia
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Wednesday, July 4, 2012

DTN News - IRAN DEFENSE NEWS: Iran Will Strongly Counter Intrusive Powers In Region: Lawmaker

Defense News: DTN News - IRAN DEFENSE NEWS: Iran Will Strongly Counter Intrusive Powers In Region: Lawmaker
*Iran drill conveys message of sovereignty to world: Foreign Ministry Spokesman
Source: DTN News - - This article compiled by Roger Smith from reliable sources Press TV
(NSI News Source Info) TORONTO, Canada - July 4, 2012:  A senior Iranian lawmaker says Iran has a policy to maintain security in the Persian Gulf and strongly counter any military intrusion in the region.

“The policy of the Islamic Republic is based on maintaining security in the Persian Gulf and the Strait of Hormuz for all ships and oil tankers,” Chairman of the Majlis Committee on National Security and Foreign Policy Alaeddin Boroujerdi told reporters on Tuesday. 

He added that Iran has the power to counter all elements behind regional insecurity. 

The senior legislator pointed to the ongoing missile drill by the Islamic Revolution Guards Corps (IRGC) in central Iran and stated that the military maneuvers display the country’s missile capability. 

“The Islamic Republic of Iran has entered a new phase of military might,” Boroujerdi pointed out, adding that such measures are not tantamount to any threats to the region and only denote that the Islamic Republic has the required capabilities to counter aggressions.

The three-day IRGC missile drill, entitled the Great Prophet 7, started in the central Iranian province of Semnan on Monday. 

The indigenous missiles, including Shahab (Meteor) 1, 2, 3, Khalij Fars (Persian Gulf), Tondar (Lightning), Fateh (Victor) and Zelzal (Quake) as well as Qiam (Uprising) were fired at mock targets during the drill. 

In recent years, Iran has made great achievements in the defense sector and gained self-sufficiency in essential military hardware and defense systems. 

Iran has repeatedly assured other nations, especially regional neighbors, that its military might poses no threat to other countries, insisting that its defense doctrine is merely based on deterrence.

*Iran drill conveys message of sovereignty to world: Foreign Ministry Spokesman

Iran's Foreign Ministry Spokesman Ramin Mehmanparast says the ongoing Great Prophet 7 missile drill in the central sector of the country is intended to convey a message of sovereignty and full preparedness to establish security in the Persian Gulf as well as the Strait of Hormuz.

Speaking at a weekly press conference in Tehran on Tuesday, Mehmanparast said the drill aims to display Iran's might and attentiveness to establish safety in the Persian Gulf and secure the passage of oil cargos through Hormuz Strait. 

The senior Iranian official added that the Islamic Republic attaches great significance to the security of the Persian Gulf, stressing that Iran has both the capability and power to ensure the security and safe movement of energy supplies in the region. 

Deputy Commander of Iran's Islamic Revolution Guards Corps (IRGC) Brigadier General Hossein Salami said earlier on Tuesday that the Great Prophet 7 missile drill serves as a “firm response” to the threats of a military option against the Islamic Republic. 

“The main aim of this drill is to demonstrate the Iranian nation’s political resolve to defend [its] vital values and national interests,” he stated. 

The three-day IRGC missile war games, entitled the Great Prophet 7, started in the central Iranian province of Semnan on Monday. 

The indigenous missiles, including Shahab (Meteor) 1, 2, 3, Khalij Fars (Persian Gulf), Tondar (Lightning), Fateh (Victor) and Zelzal (Quake) as well as Qiam (Uprising) were fired at the mock targets during the drill. 

In recent years, Iran has made great achievements in the defense sector and gained self-sufficiency in essential military hardware and defense systems. 

*Link for This article compiled by Roger Smith from reliable sources Press TV
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DTN News - AFGHAN WAR NEWS: Pakistan Opens NATO Supply Line As Clinton Says 'Sorry'

Defense News: DTN News - AFGHAN WAR NEWS: Pakistan Opens NATO Supply Line As Clinton Says 'Sorry'
Source: DTN News - - This article compiled by Roger Smith from reliable sources By Eric Schmitt - NY Times
(NSI News Source Info) TORONTO, Canada - July 3, 2012:  Pakistan told the United States it was reopening NATO’s supply routes into neighboring Afghanistan after Secretary of State Hillary Rodham Clinton said she was sorry for the deaths of Pakistani soldiers in American airstrikes in November, the State Department said Tuesday.

The agreement ends a bitter seven-month stalemate between the two countries that has threatened to jeopardize counterterrorism cooperation and complicated the American troop withdrawal from Afghanistan.

In a telephone call to Pakistan’s foreign minister, Hina Rabbani Khar, Mrs. Clinton said the two officials agreed that mistakes were made on both sides that led to the fatal airstrike.

“We are sorry for the losses suffered by the Pakistani military,” Mrs. Clinton said in a statement issued by the State Department. “We are committed to working closely with Pakistan and Afghanistan to prevent this from ever happening again.”

The November airstrikes, which killed 24 soldiers in Pakistani territory after reports of militant activity in the area, led Pakistan to immediately close the supply lines and plunged relations between the countries to a low point.

The agreement on Tuesday followed a flurry of recent contacts between top American and Pakistani officials. Gen. John R. Allen, the American commander of NATO forces in Afghanistan, met last week in Pakistan’s capital, Islamabad, with Gen. Ashfaq Parvez Kayani, the Pakistani army chief of staff, to discuss counterterrorism strategy and the supply routes.

Over the weekend, Mrs. Clinton telephoned her congratulations to Pakistan’s new prime minister, Raja Pervez Ashraf, and brought up the issue. And on Monday, Thomas R. Nides, a deputy secretary of state, visited Islamabad to discuss the routes.

But the major stumbling block has been Pakistan’s demand for a formal American apology for the fatal airstrike in November. The Pentagon and the White House have adamantly opposed any additional apology beyond the several expressions of regret and condolences offered by many American officials — a carefully calibrated response during a hard-fought presidential campaign in the United States.

In her statement on Tuesday, Mrs. Clinton again expressed “deepest regrets for the tragic incident” last November and offered the administration’s “sincere condolences to the families of the Pakistani soldiers.”  But the clincher for Pakistan seemed to be Mrs. Clinton’s using the word “sorry.”

In exchange, Pakistan dropped its insistence on a higher transit fee for each truck carrying NATO nonlethal supplies from Pakistan into Afghanistan, Mrs. Clinton said.

It was not immediately clear why Pakistan dropped the demand, which had been a hotly contested issue for months.

Pakistan, stung by the suspension of American military assistance last year, at first demanded a fee of $5,000 for each truck that crossed its territory from the port in Karachi to Afghanistan. Before the November attack, NATO had paid $250. Pakistan later reduced that demand to about $3,000 a truck; the United States had offered $1,000 per vehicle.

In the end, however, American officials said Pakistan agreed to keep the fee at $250 a truck. In return, the United States is expected to reimburse Pakistani up to $1 billion for costs incurred by some 150,000 Pakistani troops carrying out counterinsurgency operations along the border with Afghanistan, the officials said.  

“This is a tangible demonstration of Pakistan’s support for a secure, peaceful, and prosperous Afghanistan and our shared objectives in the region,” Mrs. Clinton said in her statement, noting that waiving any transit fees will allow the United States and NATO to conduct “the planned drawdown at a much lower cost.”

The Pentagon has offset the closed route by using a much longer, more expensive northern supply line that runs into Afghanistan through Central Asia. Defense Secretary Leon E. Panetta has said the route was costing an extra $100 million a month.

Mr. Panetta on Tuesday applauded Pakistan’s decision, saying: "We remain committed to improving our partnership with Pakistan and to working closely together as our two nations confront common security challenges in the region."


A top-level meeting of Pakistani civil and military leadership held in Islamabad on Tuesday evening gave the clearest indication of the Pakistani willingness to reopen the NATO supply routes.

Prime Minister Raja Pervez Ashraf, who headed the meeting, said in a televised address that the supply line closures “not only impinge on our relationship with the United States but also on our relations with the 49 other member states of NATO/ISAF.”

Salman Masood contributed reporting from Islamabad, Pakistan.


*Link for This article compiled by Roger Smith from reliable sources By Eric Schmitt - NY Times
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Wednesday, June 20, 2012

DTN News - CANADIAN HISTORY: War of 1812 ~ Violence, Glory And A New Canadian-Ness

Defense News: DTN News - CANADIAN HISTORY: War of 1812 ~ Violence, Glory And A New Canadian-Ness
Source: DTN News - - This article compiled by Roger Smith from reliable sources BBC News
(NSI News Source Info) TORONTO, Canada - June 20, 2012: Canada today is seen as a harmonious nation of hockey, mounties and maple leaves, in peaceful contrast to its often fractious and noisy neighbour to the south. But Canadian-ness itself was born amid the blood, gunpowder and glory of the War of 1812, writes Grant Stoddard.


As a British-born newcomer to Canada, I've noticed Canadians see their Canadian-ness as the sum total of their shared values, interests and beliefs.

By contrast, in other places national identity is more typically linked to battles, popular uprisings and improbable triumphs in the face of adversity: the Boston Tea Party, the storming of the Bastille, the October Revolution.
This led me to assume that while Canada is a wonderful place to live, it lacked a rousing origin story.
Imagine my surprise when I discovered that the story of the birth of Canadian-ness - which began 200 years ago this week - is as rollicking, bloody, stirring and inspiring as they come.
Canadians famously cannot bring themselves to brag, so I am taking it upon myself to recount the series of events that paved the long road to Canadian nationhood. Hold on to your toque!
Challenges and disunity
Lt Col Charles De SalaberryDe Salaberry led a combined forced of 1,350 that drove off 4,000 US troops.
In the years after the American Revolution, Britain set about creating a mirror-state to the north of the 13 rebellious former colonies.
Hoping in part to entice the US back into the empire, Britain aimed to demonstrate that life in North America could be happier and more stable under her administration.
There were challenges: the territory in what is now Canada was rugged, under-developed and thinly populated.
Furthermore, the main groups of people living there did not like each another very much.
First Nations tribes resented the unrelenting European expansion into the heart of the continent. Disaffected French Catholics had settled along the St Lawrence River in the early 1600s and remained after Britain finally wrested control of Canada from France in 1763. British inhabitants of Nova Scotia, known as the "14th Colony", had not joined their sister colonies in revolt.
And tens of thousands relocated north after the American War of Independence: refugee crown loyalists and former black slaves rewarded with their freedom for fighting alongside the British.
The new arrivals were so numerous that Britain carved a new colony - New Brunswick - out of Nova Scotia to accommodate them. Yet even after the influx, the US still had about 20 times the population of what was now called British North America.
The British government encouraged even more immigration from the US by offering free land and low taxes. These opportunist migrants, who had little loyalty to the British crown, were euphemistically called the Late Loyalists.
At the dawn of the 19th Century, what is now Canada was no melting pot or even patchwork quilt but rather a hodgepodge of disparate groups who held wildly varying opinions on British rule and American republicanism and a deep distrust of one another.
By 1812, with the British embroiled in war with France, US hawks moved to take advantage of their northern neighbour's disunity, finish the job of the revolution and kick the British off the North American continent once and for all.
Proponents of war were confident that the fractious Canadians would greet US forces as liberators, with former President Thomas Jefferson quipping that annexing the vast territory would be "a mere matter of marching" and could be completed within a few months.
An 1833 lithograph of the Battle of the ThamesNative leader Tecumseh was killed by a US soldier at the Battle of the Thames in Ontario, shown in a detail from an 1833 lithograph
One of the leaders of the invasion force was US General William Hull, a 58-year-old veteran of the revolution who had been reluctant to take part.
He promised the Canadians liberty and prosperity, while also threatening "instant destruction" and a "war of extermination" at the first whiff of collusion between the Canadians and the natives.
Though some Canadians took heed, others, regardless of their allegiances, were uninterested in receiving liberty and prosperity at the point of an American sword. So they took up arms.
Bravery and patriotism
In battles on both sides of the border, vastly outnumbered Canadian militiamen, British regular troops and First Nations warriors inspired by Shawnee warrior Tecumseh overcame the Americans.
Stephen Harper and Prince CharlesCanada never rejected the British Crown as America did, and remains a loyal part of the Commonwealth
A force led by British Maj Gen Isaac Brock and Tecumseh captured Detroit from Gen Hull, taking almost 2,500 American regulars and militiamen captive with only 300 hundred British regulars, 400 Canadian militiamen and 600 natives.
At the Battle of the Chateauguay near Montreal, French Canadians repelled a US attack. Under the leadership of Charles de Salaberry, 50 regulars, 400 volunteers, 900 militiamen and 180 Mohawks drove off 4,000-strong US force.
Despite their difficult history with British rule, Les Canadiens had proved their bravery and patriotism beyond a doubt.
Their victory inspired yet another improbable defence of Canada just over two weeks later at the Battle of Crysler's Farm, in which 900 British regulars and Canadian militiamen repulsed 8,000 US troops.
By the war's end, both York (now Toronto) and Washington DC had been put to the torch by invaders; the British bombardment of Ft McHenry in Baltimore had inspired a new national anthem; and Gen Andrew Jackson had routed the British Army at the Battle of New Orleans.
But the map of North America had hardly changed.
Three native men who fought with the British, photographed in 1882Canada's First Nations tribes' hopes for an independent state died after the War of 1812; above, three men who fought with the British, photographed in 1882
The US withdrew to well within the boundaries of the 13 colonies. Inexperienced British diplomats gave away her territorial gains at the negotiating table, while bullish and skilled US negotiators rejected the British-backed idea of an independent "buffer state" for the indigenous tribes between the US and British North America.
This betrayal of the natives hastened the demise of native autonomy in North America, as the US turned its attention from annexing lands in the north to pushing west toward the Pacific Ocean.
The War of 1812 was declared in Washington 200 years ago yesterday.
The British and Americans drew and the natives lost, leaving the fledgling Canadians with the best claim to victory.
In the spirited defence of their way of life, they surprised both the invaders and one another with their resourcefulness, co-operation and tenacity in the face of an invasion force with an overwhelming numerical advantage.
In that sense, their struggle was not unlike the American Revolution a generation earlier.
What Canadian-ness actually means continues to evolve and remains a perennial topic of discussion both domestically and internationally.
Nevertheless, its beginnings can be traced back to 18 June 1812, when her fractious inhabitants stood together against subjugation by a foreign power.
The 33.5 million people living in Canada today - fully one-fifth of whom are foreign-born - have this patchwork vanguard to thank for their country's steady path to progressive prosperity.

*Link for This article compiled by Roger Smith from reliable sources BBC News
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DTN News - NORWAY DEFENSE NEWS: Norway Finalizes First F-35 Fighter Order

Defense News: DTN News - NORWAY DEFENSE NEWS: Norway Finalizes First F-35 Fighter Order
*Norway orders first F-35; secures JSM integration support
Source: DTN News - - This article compiled by Roger Smith from reliable sources Ministry of  Defence - Norway
(NSI News Source Info) TORONTO, Canada - June 20, 2012: Norway today (June 15) commenced the largest public procurement project in its history. The event was marked by Minister of Defence Espen Barth Eide authorizing the order for the first F-35A Lightning II for the Norwegian Armed Forces. The decision to move forward was reached following an extended dialogue with the US Department of Defence aimed at securing opportunities for Norwegian industry.

Chief of The Air Force Major General Finn Kristian Hannestad and Defence Minister Espen Barth Eide at the press conference 15 June 2012
Chief of The Air Force Major General Finn Kristian Hannestad and Defence Minister Espen Barth Eide at the press conference 15 June 2012. (Christian Nørstebø, Forsvarets Forum)
- We have today made two critical decisions. For the first time in three decades we are now ordering new combat aircraft for the Armed Forces. Additionally, we will begin preparations for the final phase of Joint Strike Missile (JSM) development after receiving confirmation from US authorities of their support for the integration of the missile into the F-35, says Norwegian Minister of Defence Espen Barth Eide.
F-35 Joint Strike Fighter and Joint Strike Missile.
- This marks a key milestone in the Norwegian F-35 programme and the beginning of the largest public procurement in Norwegian history. The F-35, which Norway selected in 2008, represents a completely new generation of combat aircraft that will form a corner stone of the future Norwegian Armed Forces, says Minister of Defence Espen Barth Eide.
Confirmation of JSM integration support was provided in a letter from US Secretary of Defence, Leon Panetta to Norwegian Minister of Defence Espen Barth Eide earlier this week.
- Securing such support has been an important precondition for many of our partner nations before they would themselves commit to supporting the JSM. With such support finally in place there is now a significant potential for the missile among future operators of the F-35. Preparations for the final phase of procurement will therefore begin now, says Minister of Defence Espen Barth Eide.
The Norwegian-developed JSM represents one of the most advanced weapons available within its category, and will further enhance the operational capabilities of the F-35. Total market potential for the JSM is estimated to be between NOK 20 and 25 billion/USD 3.3 and 4.2 billion.
The two aircraft authorized today are expected to be joined by a second pair in 2016, and will be based in the United States as part of a joint partner training centre. They are to be followed by up to 48 additional aircraft from 2017 that are to be based at Ørland Main Air Station in central Norway. A small forward operating base will also be based at Evenes in northern Norway to provide quick reaction alert (QRA) services in the high north. An estimated 10% of the overall force generation will also be carried out from the Evenes FOB.
The overall cost of the procurement phase of the project is estimated at NOK 60 billion/USD 10 billion (2012 value) in real terms.
The decision to centralise the combat aircraft force at Ørland was approved when the Norwegian Parliament approved the new Defence White Paper on the 14th of June. This paper also confirmed the overall ambition for up to 52 F-35s for the Norwegian Armed Forces. Norway will over the coming years see a budget increase of 7% by 2016 through redistribution of funds freed up by the withdrawal from Afghanistan and the addition of significant supplementary funds for the F-35 purchase.
- Norway's parliament yesterday approved a significant increase in defence spending in order to finance the purchase and to increase the general operating budget of the Armed Forces. At the same time, the Parliament has shown courage in making tough but necessary decisions in order to continue the work to rationalize the base infrastructure. This means that the positive development we have seen in the Norwegian Armed Forces over the past four years will continue, concludes Minister of Defence Espen Barth Eide.

*Link for This article compiled by Roger Smith from reliable sources Ministry of Defence, Norway
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DTN News - FINANCIAL NEWS: Global Markets Jump After Greek Vote Eases Fears

Defense News: DTN News - FINANCIAL NEWS: Global Markets Jump After Greek Vote Eases Fears
*Global markets jump as Angela Merkel tells election victor Antonis Samaras she is confident Greece will abide by bailout pledges, and world leaders gather in Mexico for the G20.
Source: DTN News - - This article compiled by Roger Smith from reliable sources The Globe & Mail
(NSI News Source Info) TORONTO, Canada - June 20, 2012: Asian stock markets were up sharply Monday after elections in Greece eased fears of global financial turmoil, but analysts warned that the economic crisis shaking the 17 nations that use the euro was far from over. Stock markets rejoiced at the narrow victory by Greek conservatives who favour upholding an austerity program that their recession-mired country entered into in exchange for a financial bailout from international lenders.

Tokyo’s benchmark Nikkei 225 index was up 1.9 per cent at 8,731.57. Hong Kong’s Hang Seng rose 1.6 per cent to 19,548.83. Australia’s S&P/ASX200 added 1.8 per cent to 4,129.20 and South Korea’s Kospi rose 2.1 per cent at 1,897.62.

On Wall Street, Dow Jones industrial average futures were up 62 points on Sunday night, suggesting the market could open higher Monday. The euro rose to $1.2700 (U.S.) from $1.2637 late Friday in New York. The U.S. dollar rose to 79.22 yen from 78.71 yen.

The New Zealand and Australian dollars were also higher. Both currencies typically rise when investors have more appetite for risk. The Australian dollar was trading above $1.01 and the New Zealand dollar was trading above 79 cents.

Masahiro Yamaguchi, a manager at Mizuho Securities Co. in Tokyo, said the perk in Tokyo stocks came from a sense of relief that the worst had been avoided in Greece.

“There’s is a rebound simply because the risks are now reduced,” he said. “There’s a sense that, at least, things are okay for now. The solution is far from basic.”

On Sunday, pro-bailout parties in Greece won enough seats to form a coalition government.

Greece has been dependent on rescue loans to operate since May 2010, after it was shut out of international markets following years of profligate spending and falsifying financial data.

The country is mired in a fifth year of recession, with unemployment spiralling above 22 per cent and tens of thousands of businesses shutting down.

Greece had to agree to austerity measures to get its bailout. Measures included deep spending cuts on everything from health care to education and infrastructure as well as tax hikes and cuts in salaries and pensions. Anger at the measures has sent Greeks into the streets in frequent strikes and protests, some of them violent.

Some analysts said the election results could overstate the willingness of Greeks to embrace austerity.

“Overall, the Greek election result, while welcome, does not imply that the Greek people are embracing the tough reforms tied to the bailout package. It merely meant that fear overruled anger,” analysts at DBS Bank Ltd. in Singapore wrote in a market commentary.

No one is sure how bad a Greek exit from the euro would have been. Greece would almost have certainly defaulted on its debt, triggering losses for European banks that own its government bonds. The outcome of the election, however tenuous, gives Greece a chance to breathe life into its moribund economy.

“It will be tough, but Greece will survive because I think the tourist industry and the agriculture sector will help it recover from its dire straits right now,” said Francis Lun, managing director of Lyncean Holdings in Hong Kong.

Japanese vehicle makers soared on hopes that Europe, a huge export market, would avoid deepening economic turbulence. Mazda Motor Corp. jumped 4 per cent and Yamaha Motor Co. gained 4.5 per cent.

Steelmakers and shipyards also gained ground. South Korea’s top shipbuilder, Hyundai Heavy Industries, rose 3.1 per cent. Japan’s JFE Holdings Inc. added 4 per cent and Kobe Steel rose 3.3 per cent.

Samsonite International SA rebounded 5.8 per cent after it issued a statement saying its luggage is safe, following a Hong Kong Consumer Council report last week that found carcinogens in the handles of some models, which caused its shares to dive 16 per cent.

But stock market operator Hong Kong Exchanges and Clearing Ltd. fell 2.8 per cent as investors worried a $2.2-billion bid announced last week for the London Metal Exchange was too high.

Benchmark oil for July delivery was up 91 cents to $84.94 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 12 cents to end at $84.03 a barrel in New York on Friday.

  DTN STOCK MARKET


*Link for This article compiled by Roger Smith from reliable sources The Globe & Mail
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