www.vheadline.com Posted: Friday, January 24, 2003 - 2:27:35 PM By: Roy S. Carson

Disgraced former Venezuelan Drugs chief Thor Halvorssen claims in today's issue of the Moonie's Washington Times (note: not the Washington Post) that "Venezuelan is now an abyss where there is no rule of law."

The rogue former government official, now in exile in Philadelphia (USA) claims Chavez Frias to be leading "a rogue government (that) tortures innocent civilians with impunity while paying lip service to democracy and buying time at the negotiation table set up by the Organization of American States."

• If one is to venture to believe Halvorssen's hype, Venezuela's Foreign Minister (MRE) Roy Chaderton, "has funded an effective multi-million dollar public relations campaign to smear the opposition as coup-plotters and fascists intent on bringing about violence."

Without a shred of evidence, Halvorssen launches into a dubious history of a 24-year-old second-year law student described as a cheerful and happy young man who had volunteered as a member of a group that brings together moderates who support the government and opposition members seeking a peaceful resolution to the current crisis.

Halvorssen's warping of reality begins when, on December 6, Soriano is said to have witnessed a "massacre" during a "peaceful" protest in Plaza Altamira ... Halvorssen then attempts to connect the alleged killer of three persons (and 28 injured), identified as Joao De Gouveia, as having "an unusually close relationship" with Mayor Freddy Bernal.  The underlying theme is to allude to homosexual relationships which pervade Halvorssen's Washington Times tirade.

Soriano was captured by "the militia" during a subsequent demonstration at the Universidad Central de Venezuela (UCV) ... "The militia identified Soriano and captured him ... they then tied his hands and feet, lifted him up, and paraded him through the street like a sacrificial lamb chanting Judas! Judas!" and was then beaten severely before being left at a hospital emergency room where he was detained by the DISIP, described by Halvorssen as Chavez's secret police ... despite the fact that as a renegade government official he had made constant use of the DISIP's services during the Caldera regime...

What happens later is still the subject of debate, but Halvorssen doesn't let the legal niceties stand in the way for his epistle from Philadelphia.  He claims that the DISIP interrogation Soriano, tore out the fingernails in his left hand, tortured and injected him with drugs ... and then sodomized him as well!

Halvorssen claims that killing suspect de Gouveia was one of the ones who allegedly committed buggery on the young man and that de Gouveia is allowed to roam freely around the DISIP HQ "with the only restriction is that he must sleep in the precinct, lest Chavez's police are revealed as allowing a confessed killer to roam free."

Ignore the fact if you will that any killer awaiting trial on as conclusive evidence as that as against de Gouveia would immediately make a beeline for the nearest border, but homophobic Halvorssen then alludes to the Foreign Minister's sexual preferences claiming that Chaderton Matos had advised Chavez that the case "could filter out of Venezuela and become a human-interest story with the potential to derail their PR campaign."

What PR campaign?

The democratically elected government of Venezuela has denied that Soriano has been mistreated by them. Admittedly, a medical examination has revealed that lacerations, severe bruising, and cracked ribs support Soriano's claims that he had been repeatedly raped while in custody.

Regrettably, Venezuela's prison system is deplorable and rapes do occur, almost daily, in correction facilities across the country (as they also do across the United States) ... but to claim the personal participation of the Foreign Minister or the President in any such acts is going even further than the usual Moonie's suppositions and into the wildest fantasies of extraterrestial visitations...

While we have every sympathy for the young man who was brutally and painfully buggered against a wall in a prison cell, Halvorssen's blatantly homophobic mud-slinging is more than simply incredible ... it is part of the corrupt opposition-led PR offensive against the government that Halvorssen would wish to claim is government-sponsored while nothing other than his own.

Reuters, 01.24.03, 2:13 PM ET

Ratings News  Emerging Markets  Latin America  Corporate Rating News   (The following statement was released by the ratings agency) MOODY'S REPORTS: LATIN AMERICA FUNDS FALTER, HEADLINE LOSING WEEK FOR EQUITY FUNDS NEW YORK, Jan 24 - Latin America funds plummeted 7.67% in the week ended January 23, Moody's Investors Service reports, as the region remains troubled. "The Brazilian central bank's decision to increase interest rates produced a negative reaction," says Moody's funds analyst Keith Murray. "In addition, Mexican telecommunications and construction firms reported losses, and Venezuela's troubles remain on the minds of investors," adds Murray. Latin America funds are off 2.59% year to date. Elsewhere, metals funds continued their long-running rise with a 3.47% advance this week. "Gold is sitting at a six-year high due largely to war fears and the weak U.S. dollar," says Murray. Metals funds are up 4.54% so far this year. Overall, the U.S.-based equity fund market declined by 2.52% in the week ended January 23, as measured by Moody's Composite Total Equity Fund Index. The index tracks the daily returns of 2,648 unique fund portfolios. Domestic Funds Flop Across the Board Despite a solid Thursday, domestic equity funds slumped this week, with value funds leading the losers with a 2.95% decline. Weak earnings outlooks from stalwarts such as Eastman Kodak coupled with economic concerns to swamp U.S. stocks. Growth and income offerings lost 2.77% and growth funds declined by 2.52%, as no investment style was spared. Balanced funds were the week's top domestic performers, aided by their fixed-income allocation, but still incurred a 1.48% loss. Europe Slides, Japan Slightly Optimistic Europe funds declined by 3.67% this week, as fear over a potential war with Iraq weighed heavily on results. British equities slipped to their lowest levels since December 1995, as investors sought safety. In Japan, Mizuho bank, Japan's largest lender, raised a larger than expected amount of capital which sparked positive momentum for Japanese equities early in the week. Japan funds are up 2.84% in 2003. Utilities Remain Powerless Utilities funds declined 3.02% this week, as the energy sector remains under pressure. Utilities funds are down 0.69% since the close of 2002, when the peer group declined 22.65%. Following are yesterday's closing prices and returns data for Moody's Equity Mutual Fund Indices: MOODY'S EQUITY MUTUAL FUND INDICES AS OF JANUARY 23, 2003 DOMESTIC EQUITY MUTUAL FUND INDICES: Index Val .. Total Ret .. YTD Total Ret .. 1 Yr Moody's Value Equity Fund Index 124.49 .. 0.63% .. 0.19% .. -14.90% Moody's Small Capitalization Value Equity Fund Index 149.16 .. 0.79% .. -0.18% .. -11.19% Moody's Small Capitalization Equity Fund Index 137.41 .. 0.82% .. 0.05% .. -18.56% Moody's Growth & Income Equity Fund Index 119.02 .. 1.00% .. 0.67% .. -20.23% Moody's Moderate Growth Equity Fund Index 107.66 .. 1.26% .. 1.12% .. -22.63% Moody's Growth Equity Fund Index 165.45 .. 1.03% .. 0.64% .. -17.98% Moody's Aggressive Growth Equity Fund Index 117.04 .. 1.09% .. 0.76% .. -25.88% Moody's Balanced Fund Index 119.83 .. 0.53% .. 0.39% .. -8.62% Moody's Medium Capitalization Equity Fund Index 127.53 .. 0.82% .. 0.58% .. -15.95% WORLD/FOREIGN/REGIONAL EQUITY MUTUAL FUND INDICES: Index Val .. Total Ret .. YTD Total Ret .. 1 Yr Moody's World Equity Fund Index 92.46 .. 0.63% .. -0.25% .. -18.17% Moody's Europe Equity Fund Index 95.61 .. 0.10% .. -1.76% .. -17.13% Moody's Foreign Equity Fund Index 101.64 .. 0.21% .. -0.42% .. -10.40% Moody's Japan Equity Fund Index 83.36 .. 1.74% .. 2.84% .. -5.88% Moody's Emerging Markets Equity Fund Index 64.70 .. 0.61% .. 1.64% .. -7.37% Moody's Pacific Rim Tiger Equity Fund Index 57.55 .. 0.52% .. 4.09% .. -8.68% Moody's Latin America Equity Fund Index 66.01 .. 0.22% .. -2.59% .. -23.10% Moody's Pacific Basin Equity Fund Index 76.80 .. 1.03% .. 2.38% .. -6.99% Moody's China Equity Fund Index 67.73 .. 0.05% .. 4.27% .. -9.77% SECTOR EQUITY MUTUAL FUND INDICES: Index Val .. Total Ret .. YTD Total Ret .. 1 Yr Moody's Real Estate Equity Fund Index 127.21 .. 0.25% .. -3.45% .. -0.81% Moody's Utilities Equity Fund Index 110.63 .. -0.05% .. -0.69% .. -20.66% Moody's Natural Resources Equity Fund Index 113.62 .. 1.01% .. -1.39% .. 0.06% Moody's Health Equity Fund Index 178.39 .. 0.41% .. 2.38% .. -20.99% Moody's Technology Equity Fund Index 126.26 .. 1.84% .. 3.25% .. -29.52% Moody's Metals Equity Fund Index 98.10 .. 2.44% .. 4.54% .. 60.90% Moody's Communications Equity Fund Index 171.15 .. -0.27% .. 0.43% .. -12.40% Moody's Finance Equity Fund Index 156.97 .. 0.85% .. 1.34% .. -9.21% COMPOSITE EQUITY MUTUAL FUND INDICES: Index Val .. Total Ret .. YTD Total Ret .. 1 Yr Moody's Composite Domestic Equity Fund Index 125.60 .. 0.93% .. 0.54% .. -18.27% Moody's Composite World and Foreign Equity Fund Index 87.23 .. 0.35% .. -0.38% .. -13.60% Moody's Composite Total Equity Fund Index 116.30 .. 0.84% .. 0.49% .. -16.98% Moody's Equity Mutual Fund Indices track the daily average total return performance of 2,648 equity oriented mutual funds that are classified into 26 clusters, or peer groups. Moody's also calculates three composite indices. With total net assets of about $2.2 trillion as of June 30, 2002, the Moody's indices include funds with a three year performance history that meet Moody's inclusion requirements, or about 59% of all assets invested in stock and hybrid investment companies. Funds are objectively classified on the basis of past weekly returns over a period of three years, using statistical factor analysis and cluster analysis. The indices were established with a base value of 100.00 as of March 31, 1997, and daily index values have been calculated since that date. In addition, the indices have been back-casted to March 31, 1995 with weekly total return values calculated on the basis of peer group assignments established as of March 31, 1997. Visit Moody's Managed Funds homepage at www.moodys.com or email us at equityfunds@moodys.com for more information on Moody's Equity Fund Indices and Moody's Fund Analyzer software package.

www.businessweek.com JANUARY 24, 2003 DAVOS, 2003

Even a quick end to an Iraq war might not be enough to pull prices back down to the $23-per-barrel range. That could be disastrous

The prospect of war with Iraq weighs heavily on the minds of many business leaders at the World Economic Forum meeting in Davos, Switzerland. The Europeans, in particular, are worried that an assault on Baghdad will sap already feeble consumer confidence, thus undermining demand, hurting corporate profits, and slowing the sluggish global economy. They also fear that conflict in the Gulf will drive oil prices higher and keep them there for at least the rest of the year.

Most business strategists have drawn up their forecasts for this year assuming that the price of oil would average about $23 a barrel. But it's already up to $30 -- partly because of the general strike in Venezuela, partly because of fears about Iraq. Although oil prices may dip slightly when the Venezuelan situation eases, analysts doubt that they'll fall sustainably below $30 until the Iraq crisis is esolved.

"Some commentators predict the U.S. will win a quick war and that Iraqi oil will then flood onto the world markets driving prices down," says William F. Browder, chief executive of Hermitage Capital Management in Moscow. "But that's wishful thinking. The market could be disrupted for a year or more."

HARDLY GROWING.  That could be disastrous for the world economy. Kenneth Rogoff, economic counseler and director of research at the International Monetary Fund in Washington, D.C., estimates that a sustained increase of $5 a barrel knocks between 0.25% to 0.50% off global growth. Stephen S. Roach, chief economist at Morgan Stanley, warns that "an oil shock" could "easily push the U.S. economy into recession." American output was hardly growing at all by the end of last year, he points out. So higher oil prices is the last thing it needs. Adds Daniel Yergin, chairman of Cambridge Energy Research Associates: "Every U.S. recession since the 1970s has ultimately been caused by rising oil prices."

The Europeans are worried because -- even if the U.S. does win a quick war -- Iraq won't be able to pump more than 1.8 million barrels of oil a day above its current daily output of from 1.7 million to 2.8 million. That's only 2.4% of global output and isn't enough to drive prices down significantly. And that's an optimistic scenario. "Saddam Hussein could destroy a lot of Iraq's oil capacity if he loses a war," points out Browder. So it may be unable to increase production at all after the conflict is over.

Abdallah S. Jum'ah, president and chief executive officer of Saudi Aramco, says Saudi Arabia will do its bit to nudge prices down by pumping more oil. "We want a price in the $23 to $24 range," he says. And OPEC Secretary-General Alvaro Silva-Calderón says the cartel is committed to creating stability in the markets. OPEC countries have been pumping up to 1.5 million more oil a day than usual in recent weeks, he points out, in an attempt to neutralize the impact of Venezuela's problems. "I think the oil price spike is a transitory rather than permanent phenomonen," he says.

GROWING VOLATILITY.  But how much additional oil OPEC, including Saudi Arabia, can produce over the longer term is limited. And Silva-Calderón warns, in a reference to Iraq, that "developments outside our control" could yet disrupt the markets and drive prices higher. "The market is volatile and is getting more volatile," adds Andrei Illarionov, Russian President Vladimir Putin's personal representative to the G-8 gourp of countries. He doubts prices will come down to the mid-$20s level in the short term.

That's good news for Russia, which makes billions of dollars from oil exports. But it's bad news for business, whose costs will rise, and for the world economy, which will end up growing even less than expected.

By David Fairlamb at the World Economic Forum in Davos

www.forbes.com Reuters, 01.24.03, 1:36 PM ET

NEW YORK, Jan 24 (Reuters) - NYMEX crude futures soared above $33 a barrel on Friday as the United States pressed Iraq to allow U.N. arms inspectors to interview Iraqi scientists privately to credibly determine whether Iraq is keeping banned weapons.

Venezuelans now on a 54-day-old strike to force President Hugo Chavez to step down said they will not back down until early elections are called, adding fuel to the day's rally.

At 13:20 p.m. EST (1820 GMT), NYMEX March crude was up 91 cents at $33.16 a barrel, after surging to $33.24. It hit a session low of $32.11 in early trade.

"We are seeing supply concerns front and center again ... at the bottom of the Iraq and Venezuela situation is the fear of supply disruptions," said a NYMEX floor trader.

In London, Brent March crude was up 66 cents at $30.38 a barrel, after extending session highs to $30.49.

Traders are awaiting Monday's report from U.N. weapons inspectors on and U.S. President George W. Bush's State of the Union address on Tuesday for further price direction.

The United States continued to make its case for war on Friday, saying it had evidence Iraq has maintained a program to produce weapons that have been banned since the 1991 Gulf War.

The White House said Iraq's refusal to allow scientists to be interviewed without minders was "unacceptable." Such interviews should be allowed without delay, it said.

Opposition to the U.S. stand has mounted, with China and Russia joining France, Germany and Canada on Thursday in urging that U.N. weapons inspectors be given more time in Iraq.

Two U.S. Navy vessels including a hospital ship sailed along the Suez Canal on Friday, heading for the Red Sea and on to the Gulf amid a military build-up for a potential war against Iraq, shipping sources said.

And a British ship carrying arms and ammunition should arrive at the Mediterranean city of Port Said at the entrance of the Suez Canal on Saturday, also headed for the Gulf, the sources added. News that Iraq would "cause damage or destruction" to its own oil fields if war broke out, according to a senior U.S. defense official, also supported prices.

But the official also said the U.S. has plans to secure and protect the fields in the event of hostilities, somewhat calming nervous traders.

NYMEX crude hit a 26-month high of $35.20 on Tuesday on fears of a U.S.-led war on Iraq.

Some of the early weakness was prompted by news that Venezuelan oil exports jumped 62 percent in the week to Friday to 688,000 barrels per day (bpd), or 25 percent of capacity.

Venezuela, a major oil supplier to the United States, exported 2.7 million bpd before the strike. Striking oil workers said on Thursday that Venezuela's production had risen to 812,000 bpd or 25 percent of capacity.

On Friday, those workers said they would press on until the government agreed to early elections and a deal to return them to their jobs.

Amid a cold snap in the U.S. Northeast, NYMEX February heating oil was up 1.87 cents at 93.40 cents a gallon.

Gasoline futures were up as European oil traders shipped gasoline to Venezuela to make up for scarce fuel supplies caused by the eight-week general strike.

NYMEX February gasoline was up 2.29 cents at 92.10 cents a gallon, moving within a 89.90-92.20 cent range.

www.forbes.com Reuters, 01.24.03, 1:23 PM ET By Stephen Jukes

DAVOS, Switzerland, Jan 24 (Reuters) - Austerity measures designed to clamp down on Colombia's budget deficit are essential as the government pursues its war on drugs and tries to rebuild international confidence, President Alvaro Uribe said on Friday.

Shrugging off protests about the programme, Uribe told the World Economic Forum that strong measures were vital to hold the deficit in check at a time when spending on the military and police needed to rise to combat outlawed guerrilla groups.

The plan, which will be put to a referendum in mid year, seeks a two-year freeze on public spending and pension cuts and has already sparked a protest campaign from unions and left-leaning lawmakers.

The protests spread to Davos itself on Friday. Church groups piled hundreds of pairs of shoes in the snow at the gates of the World Economic Forum to represent 6,000 people they say have disappeared in Colombia's drug wars over the past decade.

They said Uribe's programme to meet International Monetary Fund (IMF) targets would hurt the poor and escalate the war.

But Uribe said he was confident that there was widespread support for the measures. The president has a high approval rating but this has been falling a little because of the economic package.

Colombia is Latin America's fifth largest economy and has received strong backing from the U.S. government for its fight to eradicate the world's largest cocaine industry. It has also won endorsement from the IMF but missed its 2002 deficit target and was granted a waiver.

Finance Minister Roberto Junguito told reporters that budget targets were 'tough but feasible' and he was confident they could be met. Colombia has agreed with the IMF to cut the government deficit to 2.5 percent of gross domestic product this year and 2.1 percent in 2004 from four percent in 2002.

In addition to clamping down on spending the government has been seeking to increase revenues, introducing a wealth tax and increasing some other taxes.

Junguito said tax rises might have to be brought forward if the austerity package were rejected in the referendum, adding that the government would need to asess any knock-on impact from the political unrest and oil strike in neighbouring Venezuela.

Colombia's floating exchange rate has come under pressure in the wake of Venezuelan unrest but Junguito said he did not see this as a reflection of concern about Colombia's economic programme and that confidence was growing.

'I don't see this as a structural problem or lack of confidence in the country,' he said.

He cited the nation's ability to raise $500 million earlier this month through a 30-year global bond offering.