Julian Assange bail decision made by UK authorities, not Sweden

The decision to have Julian Assange sent to a London jail and kept there was taken by the British authorities and not by prosecutors in Sweden, as previously thought, the Guardian has learned.

The Crown Prosecution Service will go to the high court tomorrow to seek the reversal of a decision to free the WikiLeaks founder on bail, made yesterday by a judge at City of Westminster magistrates court.

It had been widely thought Sweden had made the decision to oppose bail, with the CPS acting merely as its representative. But today the Swedish prosecutor's office told the Guardian it had "not got a view at all on bail" and that Britain had made the decision to oppose bail.

Lawyers for Assange reacted to the news with shock and said CPS officials had told them this week it was Sweden which had asked them to ensure he was kept in prison.

Karin Rosander, director of communications for Sweden's prosecutor's office, told the Guardian: "The decision was made by the British prosecutor. I got it confirmed by the CPS this morning that the decision to appeal the granting of bail was entirely a matter for the CPS. The Swedish prosecutors are not entitled to make decisions within Britain. It is entirely up to the British authorities to handle it."

As a result, she said, Sweden will not be submitting any new evidence or arguments to the high court hearing tomorrow morning. "The Swedish authorities are not involved in these proceedings. We have not got a view at all on bail."

After the Swedish statement was put to the CPS, it confirmed that all decisions concerning the opposing of bail being granted to Assange had been taken by its lawyers. It said: "In all extradition cases, decisions on bail issues are always taken by the domestic prosecuting authority. It would not be practical for prosecutors in a foreign jurisdiction … to make such decisions."

Last week Sweden issued a warrant for Assange's arrest and extradition over sexual assault allegations. On 7 December the British prosecutor, Gemma Lindfield, convinced the senior district court judge Howard Riddle that Assange must be kept in custody because he was a flight risk.

Yesterday the judge accepted that Assange could be released on bail, but he was kept in Wandsworth prison after the CPS said it wanted to appeal against the decision to grant bail to a higher court.

The CPS's formal grounds of appeal for the hearing tomorrow morning, seen by the Guardian, will say that Assange must be kept in prison until a decision is made whether to extradite him, which could take months.

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Industrial Production Rises, Inflation Slows

Industrial production in the U.S. increased more than forecast in November and consumer prices slowed, indicating the recovery is gaining momentum without generating inflation.

Output at factories, mines and utilities rose 0.4 percent, the biggest gain since July, after a revised 0.2 percent drop in October, a Federal Reserve report showed today in Washington. The consumer-price index climbed 0.1 percent in November after a 0.2 percent gain the prior month, the Labor Department said.

Assembly lines are speeding up as business investment and exports grow and consumer spending accelerates, helping to buoy an expansion that Fed policy makers said yesterday isn’t strong enough to reduce a jobless rate hovering near 10 percent. Price increases that are below central bankers’ goal will boost the case to maintain the Fed’s purchases of $600 billion in securities through June to spur growth.

“The manufacturing sector continues to heal itself,” said John Herrmann, a senior fixed-income strategist at State Street Global Markets in Boston. “The outlook for business spending on equipment and software remains very positive.” Fed Chairman Ben S. Bernanke “is unlikely to withdraw accommodation until he sees a clear upward turning point in core inflation and a downward turn in unemployment.”

Stocks fell, dragging the Standard & Poor’s 500 Index down from a two-year high after a six-day rally left the gauge at its most expensive level since June. Economists forecast a 0.3 percent gain in production, according to the median of 75 projections in a Bloomberg News survey.

Stocks Gain

The S&P 500 declined 0.5 percent to 1,235.23 at the 4 p.m. close in New York. Treasury securities retreated, sending the yield on the benchmark 10-year note up to 3.53 percent from 3.48 late yesterday.

Factory production increased 0.3 percent for a second month, the Fed’s report showed, led by a 0.9 percent increase in business equipment, including computers, communications equipment and semiconductors.

Rising international demand and the need to replace aging equipment is a boon to manufacturers. Exports rose to a two-year high in October, Commerce Department figures showed Dec. 10. Business spending on equipment and software advanced at a 17 percent annual rate in the third quarter.

Broadcom Corp., the biggest maker of chips for television set-top boxes, yesterday increased its fourth-quarter revenue projection to about $1.9 billion, the top end of an earlier forecast range. Irvine, California-based Broadcom is making inroads in the mobile-phone market, supplying radio chips for handsets from South Korea’s Samsung Electronics Co. and Finland’s Nokia Oyj.

Extended Recovery

“We have seen now an extended period of time of recovery in the components business,” Paul Reilly, chief financial officer of Arrow Electronics Inc., said yesterday at a conference in New York. Melville, New York-based Arrow is a distributor of electronic components and computer products to industrial customers.

The need for truckers to replace aging vehicles has brought improvements at Wabash National Corp. The Lafayette, Indiana- based maker of semi-truck trailers has “nearly doubled” its workforce this year, adding over 1,200 associates, chief executive officer Richard Giromini said in a Bloomberg Television interview Dec. 13.

“The industry has improved dramatically, demand has increased and our customers are now feeling much more comfortable placing orders to replace their aged equipment going forward,” Giromini said.

Auto Production

Carmakers decreased output by 6 percent last month, the first drop since August, even as demand climbed, indicating production may rebound in coming months. Factory output excluding motor vehicles, rose 0.7 percent in November, the biggest gain since May.

Nationwide, capacity utilization, which measures the amount of a plant in use, increased to 75.2 percent last month, the highest level since October 2008. The gauge averaged 80 percent over the past 20 years, signaling there’s enough spare equipment to prevent bottlenecks that would lead prices higher.

“We’re very far from getting close to stretching industrial capacity,” said Michael Feroli, chief U.S. economist at JPMorgan Securities LLC in New York.

The median estimate of economists in a Bloomberg survey called for a 0.2 percent gain in the consumer-price index. The so-called core measure, which excludes more volatile food and energy costs, also rose 0.1 percent, matching the median forecast.

Price Cuts

Retailers that are cutting prices are drumming up demand, while those not discounting enough are struggling.

Best Buy Co., the world’s largest consumer-electronics retailer, yesterday slashed its annual profit forecast amid increasing competition from Wal-Mart Stores Inc. and Target Corp. Best Buy lost TV sales in the third quarter to “the large discounters” that promoted the least-expensive models, Chief Executive Brian Dunn said on a conference call.

Confidence among U.S. homebuilders was unchanged in December from a month earlier, indicating residential construction will stay near depressed levels, a National Association of Home Builders/Wells Fargo’s index showed today.

Fed policy makers are concerned economic growth is not strong enough to reduce unemployment, which climbed to a seven- month high of 9.8 percent in November.

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Council loses fight against cinema drinking

A council has lost a fight against alcohol being allowed in more cinemas at the Marion complex in Adelaide.

Greater Union has served alcohol in its upmarket gold class cinemas since 2004 and applied to extend its liquor licence to cover all cinemas in the complex.

Marion Council objected and the proposal was amended to include only some extra cinemas.

The Liquor and Gambling Commissioner has approved the revised application with conditions relating to security and noise.

Marion mayor Felicity Ann Lewis said the council was worried about the possible impact for families.

"We would be encouraging parents to be fairly vigilant about supervision of their children in that area," she said.

"I think in the past families have been fairly comfortable to give their children a fair amount of freedom in that environment."

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Taliban claim responsibility for Pakistan blasts that killed 50

The Taliban claimed responsibility Monday for two explosions targeting a government building in Pakistan's tribal region, a Taliban leader said.

The blasts killed 50 people and injured at least 70 others, according to Shamas Ul Islam, a senior government official in Mohmand Agency.

Umar Khalid, head of the Pakistani Taliban in Mohmand Agency, said pamphlets had been distributed in the area 20 days ago warning members of peace committees or Lashkars (tribal militias) to abandon any efforts to join the government in fighting militants or face "consequences."

"We will continue to attack all pro-government officials and their supporters who try to join any peace committees or Lashkars," Khalid said.

The blasts occurred as government officials were about to meet with members of a volunteer militia group established to fight militants in the area, said Maqsood Amin, another senior government official in Mohmand Agency.

Among those killed in the blasts was Haji Kachkol Khan, a senior leader of the peace committeee, Islam said.

Amin said two suicide bombers were responsible for the blasts. One detonated inside the building and another outside the building's gate, he said.

The explosions occurred in the agency's headquarters of Ghalanai, Pakistan. A curfew has been imposed in Ghalanai as a preventive measure, Islam said.

The victims were taken to a local hospital after the blast, said Mohammad Zafar, a senior medical officer.

Monday's attacks were not the first time anti-Taliban and pro-government militias have been targeted in Pakistan. The attacks have been increasing over the past year, but Monday's was one of the deadliest attacks this year. A November 5 suicide attack targeting a mosque in Dera Adam Khel, where locals had formed an anti-Taliban militia, killed 67 people. In July, another suicide attack killed more than 100 people, also in Mohmand Agency.

Mohmand is one of seven semi-autonomous tribal agencies along the 1,500-mile border that Pakistan shares with Afghanistan.

The Pakistani military has been battling insurgents in the area for some time.

The attacks underscore that when locals decide to take a stand against the Taliban, there are sometimes deadly consequences. The Taliban usually warns locals against taking such actions, as they did in Monday's attacks. The Pakistani government has said that such suicide attacks are a sign that the Taliban is growing desperate and becoming more aware that Pakistanis are taking a stand against them.

In a statement, the U.S. Embassy in Pakistan condemned the attacks. "While details of these suicide attacks are still being verified, it is clear this vicious crime killed and wounded many innocent people," the statement said. "Our thoughts and sympathies are with the individuals and families affected by these inhumane acts."

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Julian Assange ready to meet police, says his lawyer

A lawyer working for Wikileaks' founder Julian Assange has said he is trying to arrange for his client to meet the police.

The Metropolitan Police have received a European arrest warrant for Mr Assange from Sweden.

The Australian denies allegations he sexually assaulted two women in Sweden.

Mr Assange's lawyer, Mark Stephens, has criticised the Swedish prosecutors, saying Mr Assange had been offering to meet since August.

He said they had offered to put Mr Assange up for interview at the Swedish embassy, by video conference recorded in Sweden or at Scotland Yard.

Mr Stephens said: "So far the Swedish prosecutor has declined to take up those offers.

"That's obviously to be regretted, and is deeply unsatisfactory both for the women who made the complaints, and indeed for Julian Assange, whose name's been so comprehensively traduced, particularly in the last seven days in the week while the cables have been released."

Mr Stephens said: "I haven't even seen the warrant yet. We have got 10 days to do this and a lot of complex schedules to organise."

Security review

Meanwhile, Downing Street issued strong criticism of Wikileaks for publishing secret diplomatic cables identifying important facilities.

The cables include sites and factories in Britain which the US says are vital to its security.

Security officials say the sites could now become terrorist targets and Foreign Secretary William Hague says the release of the information could have put lives at risk.

The list includes pipelines, communication and transport hubs.

Several UK sites are listed, from Cornwall to Scotland, including key satellite communications sites and the places where transatlantic cables make landfall.

A number of BAE Systems plants involved in joint weapons programmes with the Americans are listed, along with a marine engineering firm in Edinburgh which is said to be "critical" for nuclear-powered submarines.

Meanwhile, Home Secretary Theresa May has said all government departments have been told to carry out a security review following the publication of the secret US diplomatic cables on the Wikileaks website.

She told MPs that the prime minister's security adviser, Sir Peter Ricketts, had written "to all departments to ask them to look again at their information security and to provide him with an assurance about the level of that information security".

The Swiss post office bank, PostFinance, has also frozen Mr Assange's bank accounts.

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Victoria’s Secret Fashion Show Was Basically

Surprisingly, I didn’t see The Victoria’s Secret Fashion Show when it aired last week. I know, usually I’m on top of my half naked models prancing to Katy Perry events. I don’t know, I guess I was busy not feeling bad about myself. So thank goodness NY Mag put together the minute and a half version of the event.

GAH. We all remember the fashion show that Christina Applegate puts on at the end of Don’t Tell Mom The Babysitter’s Dead, yes? It’s here if you want to bone up. I think the designers at Victoria’s Secret, if one were to ask them, would cite that as their main influence for this, the ugliest collection of outfits I have ever seen. Lacrosse??? A giant soccer ball shrug?? WTF, Vicky’s? I know you flaunt your trashy side proudly, but this is beyond. As long as you were going balls out (tranny model next year maybe?), you should have hired the hot dog truck and called it a day, at least to ground this disconnected circus in some actual reference. There are some obvious differences between the two shows, for one, the Victoria’s Secret Show did not take place in Sue Ellen’s backyard and Sue Ellen did not feature a cadre of male dancers/gymnasts. But I feel as though they share the same soul, just with different budgets.

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Swiss cut off bank account for WikiLeaks' Assange

The Swiss postal system stripped WikiLeaks founder Julian Assange of a key fundraising tool Monday, accusing him of lying and immediately shutting down one of his bank accounts.

The swift action by Postfinance, the financial arm of Swiss Post, came after it determined the "Australian citizen provided false information regarding his place of residence during the account opening process."

Assange had told Postfinance he lived in Geneva but could offer no proof that he was a Swiss resident, a requirement of opening such an account.

Postfinance spokesman Alex Josty told The Associated Press the account was closed Monday afternoon and there would be "no criminal consequences" for misleading authorities.

"That's his money, he will get his money back," Josty said. "We just close the account and that's it."

The setback leaves Assange with only a few options for raising money for his secret-spilling site through a Swiss-Icelandic credit card processing center and accounts in Iceland and Germany.

WikiLeaks has been under intense international scrutiny over its disclosure of a mountain of classified U.S. diplomatic cables, after previously releasing tens of thousands of classified U.S. military documents on the wars in Afghanistan and Iraq. The unprecedented disclosures have embarrassed the U.S. and other governments worldwide and prompted U.S. officials to pressure the WikiLeaks site and its facilitators.

A Swiss website, wikileaks.ch, has been handling much of the traffic from WikiLeaks after other Internet service and online payment providers began severing ties with the organization.

WikiLeaks' Swedish servers came under suspected attack again Monday, the latest in a series of online computer assaults that have knocked the secret-spilling group across the Web.

WikiLeaks, in a tweet to its followers, confirmed it was having difficulty with its PRQ severs but did not elaborate.

"We are investigating the cause," it said.

While U.S. officials are investigating whether they can charge Assange, the 39-year-old Australian faces sexual misconduct allegations connected to his stay in Sweden over the summer.

The Swedish case has been described by his British lawyer Mark Stephens as a political stunt, but it could eventually lead to his extradition from Britain to Sweden. A European arrest warrant was issued for Assange last week and it is currently working its way through the British legal system.

Extradition experts say such warrants can take weeks or even months to lead to an arrest, although high profile cases tend to move faster. The BBC said the Swedish warrant was now with London's Scotland Yard — suggesting that matters were developing quickly.

The broadcaster didn't cite its source, and the police force declined comment.

Scotland Yard would still have to seek a warrant at Westminster and City Magistrates' Court, which handles extradition, before Assange were detained. Such a move would not be announced ahead of time.

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