USA - Ratings firm Egan-Jones cut its credit rating on the US government to "AA-" from "AA," citing its opinion that quantitative easing from the Federal Reserve would hurt the US economy and the country's credit quality. The Fed on Thursday said it would pump $40 billion into the US economy each month until it saw a sustained upturn in the weak jobs market. In its downgrade, the firm said that issuing more currency and depressing interest rates through purchasing mortgage-backed securities does little to raise the US's real gross domestic product, but reduces the value of the dollar.
SUDAN - Angry protesters in the Sudanese capital Khartoum attacked the German Embassy on Friday, setting fire to parts of the building. They also tore down the German flag and raised an Islamist banner. The violence was part of a wave of protests against an anti-Islam film across the Muslim world. Following Friday prayers, thousands of protesters in the Sudanese capital Khartoum attacked the embassies of Germany and Britain, outraged by a film that insults the Prophet Muhammad.
AFRICA/MIDDLE EAST - Protesters angered by a film mocking Islam have attacked the German and British embassies in the Sudanese capital, Khartoum. Demonstrators started fires and tore down the German flag, raising an Islamist banner in its place. In the Lebanese city of Tripoli, one person was killed as demonstrators set fire to a KFC fast-food restaurant. Five people were injured in protests in Cairo, state media said. There are also clashes in the Yemeni capital, Sanaa.
LEBANON - Pope Benedict XVI has arrived in Lebanon with a peace message, saluting the Arab Spring and calling for an end to the conflict in neighbouring Syria. His three-day visit marks the first papal trip to the country in 15 years. During his stay, the pontiff will meet politicians and leaders from Lebanon's 18 religious groups. Christians make up 40% of the country's population. The pontiff described the Arab Spring as "a desire for more democracy, for more freedom, for more cooperation and for a renewed Arab identity". He also called for an end to the conflict there, saying fundamentalism was "always a falsification of religion".
PARIS, FRANCE/LONDON, UK/BERLIN, GERMANY - Government advisors in Berlin are demanding a rapid expansion of German-French cooperation in the military and arms industry sectors, to prevent the creation of a Paris-London Axis.
WESTMINSTER, UK - In PMQs (Prime Ministers Question Time) yesterday there was, despite there being many questions, no mention of a hugely significant speech made by the President of the European Commission. Jose Manuel Barroso's remarks – a call for the EU to turn itself into a "federation" – will reverberate around the continent, although they do not seem to have made it as far as London, SW1.
UK - Filled with tales of violence, sexual intrigue, marital strife and human misery, the plot lines of EastEnders have gripped and scandalised its audience in equal measure. But last night one of the BBC soap opera’s top producers claimed that the main inspiration for its gritty and often controversial storylines is the Bible.
INDONESIA - A strong earthquake hit off the coast of Sumatra in Indonesia on Friday, the US Geological Survey reported. The 6.2-magnitude shook the Kepulauan Mentawai region. Its epicenter was 760 kilometers (470 miles) west-northwest of the capital, Jakarta, at a depth of 20 kilometers, according to the USGS. Last month, a 6.6-magnitude earthquake hit Palu city on the island of Sulawesi, killing at least six people. Indonesia is on the so-called Ring of Fire, an arc of fault lines circling the Pacific Basin that is prone to frequent earthquakes and volcanic eruptions.
EGYPT - The US embassy in Cairo called out the Muslim Brotherhood on Twitter over differences between English and Arabic tweets about violent protests against an anti-Islamic video. The Muslim Brotherhood’s official English-language Twitter account @Ikwanweb reposted a message from the group’s deputy head, Khairat El-Shater, saying he was “relieved none of @USembassycairo staff was hurt” and expressing his desire that relations withstand the “turbulence” of events... The Brotherhood’s Arabic feed included messages that praised the protests, such as “Egyptians revolt for the Prophet’s victory in front of US embassy.”
CHINA/JAPAN - Six Chinese ships entered Japanese waters near a group of disputed islets claimed by both Beijing and Tokyo early on Friday, ignoring the Japanese coast guard's orders to vacate its territorial waters. The first two ships in the battalion entered the disputed waters at around 21:20 GMT on Thursday. After a few hours of “patrolling,” three of the ships have left the disputed waters, while another three stayed, local media reported. The Chinese Foreign Ministry confirmed that six of its surveillance ships had entered the waters near the islands. So far, Japanese border patrol ships have not taken any active measures against the Chinese vessels.
ESCUINTLA, GUATEMALA - A long-simmering volcano exploded with a series of powerful eruptions outside one of Guatemala’s most famous tourist attractions on Thursday, hurling thick clouds of ash nearly two miles (three kilometers) high, spewing rivers of lava down its flanks and prompting evacuation orders for more than 33,000 people from surrounding communities. Guatemala’s head of emergency evacuations, Sergio Cabanas, said the evacuees were ordered to leave some 17 villages around the Volcan del Fuego, which sits about six miles southwest (16 kilometers) from the colonial city of Antigua, home to 45,000 people.
USA - The US central bank has announced it will resume its policy of pumping more money into the economy via so-called quantitative easing. The Federal Reserve said it will buy "additional agency mortgage-backed securities at a pace of $40 billion (£25 billion) per month". The central bank also said it could increase the size of its purchases if the economy does not improve. The economy is a pivotal issue in this year's US presidential election.
EUROPE - The nations of the EU must join together in a federal state, if the euro is to be saved, the President of the European Commission declared today. Jose Manuel Barroso called for further integration among the states of the EU, calling for a 'federation of nation states of Europe.'
USA - The Federal Reserve is talking about “unlimited QE,” or money printing, to boost employment. Economist John Williams says, “That’s absolutely nonsense. The Fed is just propping up the banks.”
CHINA - The mainstream media in the United States is almost totally ignoring one of the most important trends in global economics. This trend is going to cause the value of the US dollar to fall dramatically and it is going to cause the cost of living in the United States to go way up.