english.pravda.ru 21:30 2003-01-20 Top party leaders from 15 countries meet to coordinate new action programs in Argentina's Capital City

To celebrate its 85th anniversary, the Communist Party of Argentina organized in Buenos Aires an international seminar titled "Crisis of Capitalism and Socialist Alternative". In the summit, sponsored by the Foundation of Marxist Research, linked to the Spanish Communist Party, communist delegates will discuss the basis of new action plans to come back to relevant positions in the global political scenario after the defeats of the 1990's.

"The opportunity for the left is now", pointed out the General Secretary of the Communist Party of Argentina, Patricio Echegaray, during a statement addressed to more than 1000 people at the gates of the headquarters in Buenos Aires. "We have to look for unity to make real Rose Luxembourg's words: Socialism or Capitalistic barbarism", emphasized Echegaray.

The list of participants includes Communist Party leaders from Spain, Portugal, Bolivia, Colombia, Ecuador, Paraguay, Peru and Uruguay. Other participants are representatives of France, Italy, Greece, Cuba, Chile and Brazil.

Venezuela's delegate is one of the most expected participants as Mr. Oscar Figuera is the General Secretary of the Communist Party and a close advisor of Venezuela's President Hugo Chavez. Left wing organizations from El Salvador and the Dominican Republic also sent delegates to the summit.

The celebrations of the 85th anniversary of the Communist Party of Argentina started on Saturday, when international delegates spoke to the assistance. Speakers remarked the advances of the left-wing organizations in Latin America, including the new governments supported by communists, of Brazil and Ecuador. They also expressed loyalty to Chavez in Venezuela, honored Cuba's Revolution and warned on US military plans for Colombia and the Dominican Republic.

Celebrations ended with the classical Internationale Anthem, while red flags waved before the astonished neighbors, who thought for a while that Moscow had moved to Buenos Aires.

Hernan Etchaleco PRAVDA.Ru Argentina

www.dailytimesonline.com By John Yaukey Gannett News Service

WASHINGTON -- George W. Bush never envisioned this, nor did he want it: the United States policing the world for weapons of mass destruction while nation building in the bombed-out husk of a country even Russia had abandoned.

Bush campaigned in 2000 practically as an isolationist.

And yet now -- halfway through his first term -- he finds himself propping up what is left of Afghanistan, talking about bringing democracy to the Arab world by ousting Iraqi dictator Saddam Hussein and, more recently, facing off against North Korea in an effort to stabilize Asia.

This is a radical leap for someone who couldn't name the leader of Pakistan during his presidential campaign and had rarely ventured beyond the lower 48 states as a young man.

The metamorphosis of Bush's foreign policy philosophy has been driven in part by the necessities of combating terrorism. Indeed, Bush has not been shy about letting Americans know how profoundly he was changed by the events of Sept. 11, almost coming to tears before TV cameras in the Oval Office shortly after the attacks.

The 9-11 imperative

As horrible as Sept. 11 was, it gave the Bush presidency a powerful new motivation -- to prevent anything like it from happening again -- and a new energy.

"I remember saying I hope the first emergency doesn't come too quickly," said Calvin Jillson, chairman of the political science department at Southern Methodist University in Texas. "But within the first 48 hours of September 11th, he was on top of that in a way that resonated with the broad majority of Americans. That has buoyed him from that point to this."

Other early successes have also emboldened Bush: Al-Qaida is on the run, more than 90 nations have signed on to the U.S.-led war on terrorism, the United Nations Security Council has passed a tough resolution commanding Iraq to disarm and NATO has been retooled to fight terrorism.

Bush's influence has been felt even among hostile states such as Syria, which surprised much of the international community by voting for the Security Council resolution against its neighbor Iraq.

But potentially disastrous challenges loom from the Korean peninsula to the Middle East. Meanwhile, antipathy for American policy is growing abroad.

"I think he has spread himself very thin," said Senate Minority Leader Tom Daschle, D-S.D. "We are still in Afghanistan. He is about to fight a war with Iraq, he is dealing with the threat of nuclear weapons in North Korea, and he is trying to deal with threats here and abroad -- all simultaneously."

Some analysts worry that Bush's success might not hold up well if the world dissolves into a series of gray-area conflicts where the president can't easily wield the moral authority he gathered from the Sept. 11 attacks. Even Britain, Bush's staunchest ally against Iraq, has started to voice concern about attacking without solid evidence that Saddam has weapons of mass destruction.

"After September 11, some leading people in the administration made Iraq a very high priority," said Michael O'Hanlon, a senior fellow with the Brookings Institution. "Now we're in this murky area with no smoking guns. It remains to be seen what happens in the next act."

As Bush moves into the next two years, the stakes for his foreign policy could hardly be higher. He must confront the twin threats of terrorism and nations with weapons of mass destruction -- and the possible union of the two.

Bold style, new challenges

Bush has never had much use for the timid hedgings of pin-striped diplomats. He tends to see the world in stark tones, eschewing any moral relativism.

He characterized his reaction to North Korean leader Kim Jong Il as "visceral," telling author Bob Woodward, "I loathe the man." And Bush has never pulled any punches with Saddam.

But his moral absolutism has not always played well as a foreign policy.

In his 2002 State of the Union speech, he named his now infamous "axis of evil" -- Iraq, Iran and North Korea -- a move some view as a victory of zealous speechwriting over practical policy.

"Those words took people aback," said Leon Sigal, author of "Disarming Strangers: Nuclear Diplomacy with North Korea." "Up until the speech was delivered, a lot of policy people were trying to get them removed. And afterward, you didn't hear (Bush) use them much, if ever, again."

Still, later in a graduation speech at West Point, Bush took his high-minded vow to protect Americans from terrorism one step further, arguing for a doctrine of pre-emption against potential threats.

Once again, the president raised more than just eyebrows.

The hawkish former Secretary of State Henry Kissinger contended that the concept was "revolutionary," challenging the centuries-old system of international sovereignty.

Sen. Edward Kennedy, D-Mass., called it naked imperialism.

But the Bush administration argued that Sept. 11 was absolutely a watershed, calling for a new approach to heading off threats before they materialize.

Historically, the United States shifted between unilateralism and cooperation throughout the 20th century. It fought communism in Vietnam almost alone. In Korea, during the 1950s, it worked with the United Nations. Pre-emption, however, is a new tactic.

The twin realities of the new age -- unchallenged American might and cataclysmic terrorism -- prompted Washington's neophyte world player to undertake the most comprehensive reassessment of American foreign policy since the dawn of the Cold War.

Rough ride ahead

In declaring his pre-emptive war on terror, Bush told Americans to brace for a rough ride.

He'll need to fasten his own seat belt as well. Thus far, all his victories remain tenuous.

Afghanistan is still in critical condition. Merely dodging assassination will be a major test for its democratic leader Hamid Karzai while bandits and warlords once again rule the countryside.

While Bush secured a tough Security Council resolution against Saddam, support among even Americans for a war against Iraq is waning as weapons inspectors continue to scour the California-size country without much to show for it.

For all Bush's determination to hunt down "every last one" of the Sept. 11 terrorists, many are still at large. Another attack linked to Osama bin Laden could destroy public confidence in the administration.

And then there are the wildcards.

The raging Israeli-Palestinian conflict could anger the Arab world and turn a war against Iraq into a wider clash between Muslims and the West.

Political turmoil in Venezuela, a leading supplier of U.S. oil, could exacerbate the oil shortages brought on by a war with Iraq and undermine the already shaky economy.

The second half of Bush's term may well answer the question posed by the first: Does he really know what he's doing abroad?

Originally published Sunday, January 19, 2003

www.scoop.co.nz Thursday, 16 January 2003, 9:29 am Press Release: Council on Hemispheric Affairs www.coha.org

03.01 For Immediate Release

Wednesday, January 15, 2003

Reich Re-surfaces Again - This time at the NSC

The "What to do with Otto Reich Problem" Temporarily Solved, but the Solution Most Likely will come to Haunt the Administration

• Turf battle between the State Department and National Security Council over Latin America policy is in the offing now that Reich has been installed in the NSC

• Noriega is woefully ill-equipped to replace Reich, who was woefully unprepared to have been given his former State Department position in the first place

• By buying into the Helms-Reich-Noriega ideological template, the Administration proves that it is incapable of making first-class appointments to staff its key Latin America posts

• The Iran-Contra Alumni Association Riding High

• Reich Itching to get his hands on Chávez

On January 9, word came from the White House that President Bush had named Otto J. Reich, who formerly had held a recess appointment allowing him to serve as Assistant Secretary of State for Inter-American Affairs only through last November, to be his "Presidential Special Envoy" for Latin America. Reich will be based at the National Security Council (NSC), where he will officially report to NSC head Condoleezza Rice. Reich assumes his new post only after declining two other positions because he considered them a step down (according to the Washington Post): that of U.S. Human Rights representative to the U.N. in Geneva, and Senior Director for Democracy and Human Rights at the National Security Council, a post that had just been vacated by Elliot Abrams, his kindred right-wing ideologue and fellow Iran-Contra chum. Abrams also had served as an Assistant Secretary of State for Inter-American Affairs until he pleaded guilty to committing perjury by giving false testimony before the U.S. Congress. Also, now on the Bush team is discredited Admiral John Poindexter, who confessed to perjury charges over the Iran-Contra scandal.

Slipping Through the Back Door

Reich's new job does not require Senate confirmation, which was a key consideration behind his appointment in the first place. This was because it was all but certain that he would have found it impossible to obtain a favorable Senate vote to resume heading the inter-American bureau, even though the upper-house is now controlled by the Republicans. In fact it had been questionable whether Reich could even have obtained a confirmation hearing in the first place, until the new chairman of the Senate Foreign Relations Committee, Senator Richard Lugar (R-IN), pledged to the administration that he would extend it the courtesy and at least consider Reich. But the administration was well aware of the strong anti-Reich tide on the hill, including Lugar's opposition. There is almost as of a chill among Republicans as Democrats over Reich being given such a senior post, because of his questionable conduct during the Iran-Contra epoch, and his tarnished record of masterminding false allegations against Cuba for which there was no evidence or were patently contrived. These allegations include charges that Cuba was restarting its bio-weaponry programs and had not cooperated with Washington's anti-terrorism initiatives. The source of Reich's aberrant behavior is his obsessive hatred of Fidel Castro; it seems Reich will always view Latin American issues through a Havana prism. It is this distortion in perspective and his legendary untrustworthiness that has rendered Reich dysfunctional as an administrator and policymaker.

At the NSC, Reich's responsibilities would include coordination of "long-term policy initiatives" and strategizing for the advancement of U.S.

goals in the hemisphere. These obligations ostensibly would include "fostering and strengthening democratic institutions, promoting and defending human rights, advancing free trade and economic development and poverty alleviation." The custom-tailored position created for Reich - due to the abiding problems he faced with the Senate - in reality represents an homage to the influence of Miami's powerful right-wing Cuban-exile leadership. These politically well-connected individuals were adamant that Reich - who otherwise was perceived as a liability by political Washington - as well as the Miami-Cuban community would be insulted by his being given a position beneath his station. This battle was being waged at a time when the administration was under great pressure for paying too little attention to Latin America, and that its hemispheric policy was seen as being in disarray and operating in a vacuum.

Reich's Abrasive Personality a Factor

Last November, when his recess State Department appointment had come to an end, Reich had been moved out of his position as assistant secretary to the somewhat nebulous post of "Special Envoy" for Latin America, a position whose responsibility was so vague that not even the State Department chief press officer could explain it. His earlier position at the State Department came as a last gasp White House recess appointment, since the administration was unable to force his nomination through the then Democrat-controlled Senate or even have it scheduled to be considered. At the time, the then chairman of the Senate Western Hemisphere Affairs Sub-Committee, Senator Christopher Dodd (D- CT), urged President Bush to reconsider his decision to appoint Reich, describing the nominee as an "individual who does not have the support of the United States Senate."

The factors which led to Reich's original downfall were mainly his ideological extremism and his character flaws including a very abrasive personality, having a hard time adhering to the truth, a propensity for hysteria, self-preservation and skirting the boundary of illegality, as was the case when he was the director of the Office of Public Diplomacy during the Reagan presidency. In addition, he is well known for possessing a deeply embedded persecution complex that, at various stages of his embattled career, repeatedly had him whining at his opponents as he called upon the right-wing media, like the editorial pages of the Wall Street Journal, or syndicated journalists like Robert Novack, to salvage his political neck.

He also repeatedly mobilized Miami-Cuban hard-line politicians, such as Reps.

Lincoln Diaz-Balart, and Illeana Ros-Lehtinien, to intercede on his behalf with the White House.

These tendencies are as present today as they have been throughout his career and it is a near certainty that in very short order they again will come to plague the Bush administration. However, the White House's ability to finally craft a slot for Reich will allow it to salvage, at least for the moment, the backing of Miami's hard-line Cubans, who have viewed the State Department's seeming indifference to Reich's political fate as a personal affront to all Cuban-Americans.

Likelihood of Inter-Agency Strife

In practice, the new position at the National Security Council could either be a consummate example of feather-bedding, a sinecure for Reich, whose creative comforts are never far from his thinking. If not, his presence at the NSC could be even more threatening to sound principles of regional policymaking than was the case when he was at the State Department. By reporting to NSC director Rice, theoretically he should be working mainly on long term desiderata for regional policy making, as well as general guidelines for new initiatives. Given the traditional ground-rules guiding the NSC's functions, Reich is not suppose to be as much operational as research and planning-oriented in his new post. Additionally, he will have to coordinate his work with John F. Maisto, a moderate career Foreign Service officer who, before coming to the NSC, had served (as had Reich), as ambassador to Venezuela, where he developed a reputation for being a centrist. Maisto will be assuming the post of senior director of Western Hemisphere Affairs on January 22.

Because of the incendiary nature of Reich's personality, his long history of skulduggery and a penchant for intrigue, those who are familiar with his career fear that in his new position, he will inevitably chafe at his relatively low-profile NSC duties and begin to recall the hundreds of thousands of dollars he earned yearly from being a weapons salesman for Lockheed-Martin and lobbying for the venomously anti-Castro Bacardi company, formerly based in Cuba.

Sooner than later, Reich can be counted on to begin initiating a barrage of phone calls to fellow Cuban exile operatives, as well as to the press, while putting pressure on the weak-willed and fellow ideologue Roger Noriega, who will be succeeding him at his old State Department position. This scenario inevitability will lead to tensions between the State and NSC, since Reich will think nothing of poaching on both Maisto's and Noriega's decision-making prerogatives. This in turn could lead to jurisdictional confrontations between the two foreign policy-related bodies, which have had a strife-ridden history and have waged monumental turf wars for much of the period since the founding of the NSC after World War II.

Roger Noriega - More Headaches in the Office

The person who will be replacing Reich as Assistant Secretary of State for Western Hemisphere Affairs is Roger F. Noriega, whose background suggests that in both style and content he comes alarmingly close to being a warmed-over Reich, but with less exposure, skills and heft, and an equalpredilection for invention and anti-Castro zealotry as well as being a Cold Warrior looking for a cause. Since August 2001, Noriega has occupied the post of Permanent U.S. Representative to the Organization of American States, where he half-heartedly read all of the statements drafted by the State Department speech writers. Prior to that, he was a staff member for Latin American issues for the recently retired Sen. Jesse Helms ( R - NC), when that archly right-wing Senator served as chairman of the Senate Committee on Foreign Relations, during a period when he held an iron grip over U.S.-Latin American policy.

Noriega should be regarded as a grossly inappropriate candidate for the position for which he is being nominated. He should, and quite possibly could, have as much difficulty as Reich had in getting himself confirmed by the Senate. Given Helms' tendencies towards the end of his career to hand off day-to-day responsibility for policy-making to different members of his staff, there is every indication that Noriega was complicit in authoring many of the most extremist and off-the-wall actions affecting U.S. - Latin American policy that were initiated by Helms at the time. These included the freezing of some ambassadorial appointments that were personally opposed by Helms during the Clinton presidency, while lending support to the Clinton Administration's policy of economic asphyxiation towards Haiti. It is still unclear however, if Noriega can win quick Senate approval, since many see his extremist points of view relating, for example, to Haiti and Cuba, as all but indistinguishable from those of Reich's. A number of senators from both political parties are known to believe that Noreiga's background is that of a wheedler and that he lacks the vision, the class, the experience, the intelligence and the administrative capacity to run a large diplomatic operation like the Bureau of Inter-American affairs. The fact that he was nominated for such an elevated position is a clear indication of the poverty of imagination of the State Department's Latin American policy under Secretary Powell, and how open it is to political manipulation.

Despite being in control of the Senate, some Republicans, including the new chairman of the Senate Foreign Relations Committee, Senator RichardG.

Lugar (R - IN), already have expressed their unhappiness over the Noriega nomination. Lugar, a moderate, has said that as chairman, he will look for a tone of independence and bipartisanship, and that he is willing to prod the administration, or even differ from it, on important issues. He is already close to, and is likely to continue to be an ally of Secretary of State Colin Powell, who himself, on occasion, has clashed with the tendency of some senior officials in the Bush administration to use hardball tactics and the militarization of policy, instead of relying on diplomacy, in a misguided effort to advance non-authentic U.S. interests. But there is little evidence that Powell is prepared to focus long enough on Latin American policy-making in order to challenge the farming out of hemispheric policy to outrageously inappropriate right-wing ideologues like Reich and now Noriega. Certainly, this type of approach can be better described as a squalid rather than as a principled approach to sound regional policymaking.

Venezuela on its Mind

It comes as no surprise that the president's reorganization of his senior Latin America team coincides with the administration's decision to become involved in the political conflict engulfing Venezuela, along with such top-priority regional issues as immigration and democratization.

The middle-class-led general strike against the Chávez presidency, which now includes the walk-out of over 30 thousand workers from the state-owned oil company, PDVSA, has virtually paralyzed the country's production and export of petroleum. Since the U.S normally imports 1.5 million barrels a day of Venezuelan crude (15 percent of its oil imports), a prolongation of the general strike in that country would be detrimental to the U.S. economy, especially at a time when war with Iraq seems on the horizon. The Bush administration, after weeks of welcomed inaction (given its normal interventionist tendencies), now feels that it has to play catch-up ball by any means possible in order to reach a quick resolution to the increasingly dangerous civic strife engulfing Venezuela. Most likely, this will involve acting coordinated action with Brazil and other regional nations as well as the OAS, to try to quickly resolve Venezuela's longstanding general strike, which has wrought catastrophic economic damage. It also means that Washington, along with OPEC will attempt to stave off a dramatic increase in the price of oil, which could have a negative impact on the Bush administration's politically all-important economic recovery prospects.

A Bitter Heritage

Washington can ill-afford losing any time by wrangling with its Latin American sister nations - many of which, unlike the U.S., are pro-Chávez -as would certainly be the case if Reich were in a position to insert himself, as a former ambassador to Venezuela, into the diplomatic play surrounding the outcome of the current confrontation in Caracas. There is no question that despite the subterfuge he retroactively engaged in to ostensibly distance himself and cover his foot prints from last April's coup which briefly toppled Chávez from the presidency, Reich took a direct, personal and supervisory interest and quietly backed the coup through financing from the National Endowment for Democracy, the White House's semi-covert funding source for black box operations. If he again becomes operational in affecting US security interests in the region, he could prove disastrous to regional stability and to prospects for an early peace in Venezuela.

Elsewhere in the hemisphere, Washington is trying to boost its leverage as co-host for the upcoming FTAA talks. In order to gain bargaining power, the Bush administration has set out to court regional countries by outlining bilateral and multilateral trade terms aimed at integrating their economies with that of the U.S. As 2005 (the proposed inauguration date of the FTAA) approaches, U.S. trade officials are working at an accelerated pace to meet that deadline with their priorities in order. To achieve its goals, however, Washington will have to work carefully not to offend Latin American countries, mainly Brazil, which due to its increased stature, will be assuming Mexico's former position as the region's interlocutor with the U.S.

This is as a result of former Mexican foreign minister Jorge Casteñeda discrediting the Fox administration by transforming Mexico's traditionally independent foreign policy into being the Bush administration's bag man for its Reich-driven anti-Havana policy.

This analysis was prepared by Larry Birns, director of COHA, and David Isacovici and Thomas Gorman, research associates.

The Council on Hemispheric Affairs, founded in 1975, is an independent, non-profit, non-partisan, tax-exempt research and information organization.

It has been described on the Senate floor as being "one of the nation's most respected bodies of scholars and policy makers." For more information, please see our web page at www.coha.org; or contact our Washington offices by phone (202) 216-9261, fax (202) 223-6035, or email coha@coha.org.

www.forbes.com Reuters, 01.13.03, 4:01 PM ET

NEW YORK, Jan 13 (Reuters) - Emerging market sovereign bonds edged higher on Monday as investors looked past the political and economic crisis enveloping Venezuela and focused on Brazil, where the central bank, bolstered by increased investor confidence, staged a successful debt rollover.

Benchmark Brazil C bonds <BRAZILC=RR> rose 1/2 to bid 71-1/8 after the country's central bank sold all $400 million in domestic debt on offer. It has now rolled over 97 percent of $1.8 billion in dollar-linked securities coming due on Jan. 16.

The bank was seen capitalizing on growing investor confidence in the new government of President Luiz Inacio Lula da Silva, who took office on the first of the year.

"The noises out of Brasilia from the new (government) still tend to be very positive, such as raising the primary fiscal surplus," said Suhas Ketkar, senior economist and head of emerging markets analysis at the Royal Bank of Scotland.

The statements from Lula's camp, as well as dollar inflows from a string of banks selling debt, have helped to support the debt, said Ketkar.

Brazilian bonds have rewarded holders with total returns of more than 7.8 percent so far this month, while the wider market has edged only 1.7 percent higher, according to JP Morgan's Emerging Markets Bond Index Plus.

"Today the market continued the trend we saw last week, which was basically a rally in Brazil," said Paul Masco, head of emerging market trading at Salomon Smith Barney.

Venezuelan total returns edged lower, according to the EMBI-Plus. Six weeks into an opposition strike against President Hugo Chavez, fresh street clashes broke out in Venezuela on Monday as international pressure built for a swift end to the crisis rocking the world's No. 5 oil exporter.

Venezuelan total returns have fallen 7 percent so far in January, but analysts say the wider market does not appear vulnerable to contagion from the crisis.

Monday's clashes were the latest outbreak of violence during an escalating opposition strike aimed at forcing the populist Chavez to resign. The shutdown has slashed Venezuela's vital oil exports, causing widespread domestic fuel and food shortages and jolting world energy markets.

Copyright 2003, Reuters News Service

www.businessweek.com JANUARY 13, 2003 02:22 PM MARKET SNAPSHOT

Corporate news took centerstage and put a damper on stocks. In the spotlight: AOL chairman Steve Case resigns

Stocks edged modestly higher around 2 p.m. Monday afternoon as investors weighed doubts about fourth-quarter earnings and digested news from AOL Time Warner (AOL ) that Chairman Steve Case will resign in May.

The major indexes hve moved in a narrow range since noon. The Dow Jones industrial average gained 31.74 points, or 0.36%, to 8,816.63. The broader Standard and Poor's 500-stock index ticked up 1.75 points to 929.32. And the Nasdaq composite index added 2.46 points, or 0.17%, to 1,450.18. Last week, the Dow gained 1.5%, while the tech-laden Nasdaq jumped 3.5%.

Topping company headlines, AOL says its much-maligned chairman Steve Case, the architect of the company's acquisition of Time Warner in 2001, will step down in May. Now all the chief architects of the deal are gone, with former Time Warner top exec Richard Parsons now running the show as CEO and soon-to-be chairman.

Meanwhile, defense giant Raytheon (RTN ), sanctioned in November for alleged violation of disclosure rules, said the U.S. Securities and Exchange Commission has begun a separate accounting investigation into the company's business that makes Beech Jet and King Air commercial aircraft.

Dell Computer (DELL ) lost ground after J.P. Morgan downgraded the stock to neutral from overweight.

Fourth-quarter earnings season picks up speed this week. Troubled hospital chain Tenet Healthcare (THC ) shares rose after the company reported fiscal second-quarter earnings Monday of 72 cents per share, vs. 56 cents a year ago. Revenue rose 11.3%. Looking ahead, S&P says Tenet's EPS comparions should turn negative on the adoption of a new Medicare "outlier" payment policy as of Jan. 1. Tenet has been criticized, and is under investigation, for the way it used Medicare reimbursements to boost revenue.

Duke Energy (DUK ) shares skidded after the utility company said 2002 ongoing EPS fell about 10 cents below the previously indicated range of $1.95 to $2.05, due to weakness in the economy and power prices and trading. Merrill Lynch downgraded the stock to sell from neutral.

Tech outfits Intel (INTC ) and Teradyne (TER ) will report quarterly results Tuesday, while Yahoo! (YHOO ) and Apple Computer (AAPL ) are due Wednesday.

On Thursday, IBM (IBM ), Microsoft (MSFT ), Sun Microsystems (SUNW ), General Motors (GM), and eBay (EBAY ) all report results. Conglomerate General Electric (GE ) will release fourth-quarter profits on Friday.

This week, global tensions will continue to weigh on the markets. North Korea said Friday it will withdraw from a global treaty to prevent the spread of atomic weapons, but added it would not develop nuclear weapons. The U.S. condemned the country's decision to quit the treaty but is "willing to talk" to North Korea, Special Envoy James Kelly says.

The prospect of war with Iraq dimmed somewhat Friday as U.N. arms inspectors criticized Iraq's lack of cooperation but added that they found no "smoking guns" to indicate that programs to produce weapons of mass destruction were restarted. However, the U.S. military continues to build up forces in the region.

In the meantime, the oil workers' strike in Venezuela is creating a dire economic situation for the country as opposition labor leaders step up pressure on President Hugo Chavez to step down. Now many workers from other areas of the economy are walking off the job, according to wire-service reports.

In Vienna, OPEC ministers voted to boost production of oil by 1.5 billion barrels per day to try to keep the price from rising above its target of $28 per barrel. Crude oil prices rose to nearly $32 per barrel on Monday.

Treasury Market U.S. Treasury prices were mostly higher in price Monday as equities weakened. Traders were also keeping an eye on the supply situation as corporations announce offerings.

World Markets European stocks were mixed. In London, the FTSE index finished down 25.80 points, or 0.65%, to 3,948.30. In company news, J Sainsbury Plc, Britain's second-largest supermarket chain, plans to make a hostile 4.4 billion-pound ($7 billion) offer for Safeway Plc to thwart a bid from smaller rival William Morrison Supermarkets Plc. Paris' CAC-40 index added 9.69 points, or 0.31%, to 3,169.82. In Frankfurt, the DAX index climbed 28.93 points, or 0.95%, to 3,066.26, following a report that German industrial production rose a surprising 2.5% in December, the largest increase in two years.

In Asia, stocks finished higher. Hong Kong's benchmark Hang Seng added 112.58 points, or 0.48%, to 9,721.50. Japanese markets were closed for a holiday. On Friday, the Nikkei 225 index closed at 8,470.45.

Today's Headlines About 7,000 Marines from Camp Lejeune and a number of fighter pilots from Seymour Johnson Air Force Base will leave for the Persian Gulf region over the next few days as tension with Iraq continues to grow, officials said: AP.

North Korea withdrew from a global treaty that bars it from making nuclear weapons, but said it was willing to talk to Washington to end an escalating dispute over its nuclear ambitions: AP.

The Bush administration plans an initiative to form a group of nations to help end a strike in Venezuela that has crippled oil exports from the major oil supplier to the United States: Washington Post.