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May 4, 2011

Sony was victim of sophisticated cyber-attack

Filed under: business, finance — Tags: , , , — Snowman @ 9:23 pm

The data breach that hit Sony’s PlayStation Network resulted from a “very carefully planned, very professional, highly sophisticated criminal cyber-attack designed to steal personal and credit card information for illegal purposes,” a Sony executive said.

In a letter to members of the House Commerce Committee released Wednesday, Kazuo Hirai, chairman of Sony Computer Entertainment America LLC, defended the company’s handling of the breach.

Sony first disclosed the attack last week and said it may have compromised credit card data, email addresses and other personal information from 77 million user accounts. On Monday, Sony said data from an additional 24.6 million online gaming accounts also may have been stolen.

The company has shut down the affected systems while it investigates the attacks and beefs up security. Hirai said Sony is working “around the clock to get the systems back up and to make sure all our customers are informed of the data breach and our responses to it.”

Addressing criticism that the company waited too long to inform customers, Hirai said Sony waited until it had a solid understanding and confirmation of the extent of the attack and its implications.

“Throughout the process, Sony Network Entertainment America was very concerned that announcing partial or tentative information to consumers could cause confusion and lead them to take unnecessary actions if the information was not fully corroborated by forensic evidence,” he wrote.

Although Sony began investigating unusual activity on the PlayStation network on April 19, it did not notify consumers of the breach until April 26.

Hirai’s letter said the company knows who is responsible for the attack and is working with outside security and forensics consultants and the Federal Bureau of Investigation.

The letter also noted that the breach came on the heels of large-scale, coordinated denial-of-service attacks launched by a loose international group of hackers called Anonymous against several Sony operations in retaliation for a complaint filed by the company against a hacker in U no fax payday loan.S. District Court in San Francisco.

On Sunday Sony discovered that intruders had planted a file named “Anonymous” on one server that had been breached, Hirai said. Late last year, Anonymous distributed hacking software to be used against companies that stopped doing business with the anti-secrecy site WikiLeaks after it released thousands of classified government documents.

Hirai’s letter added that Sony may not have immediately detected the PlayStation breach in part because its security teams were busy trying to defend against the denial-of-service attacks.

“Whether those who participated in the denial-of-service attacks were conspirators or whether they were simply duped into providing cover for a very clever thief, we may never know,” Hirai wrote.

Hirai was one of three Sony executives who bowed in apology for the data breaches for several seconds at the company’s Tokyo headquarters on Sunday.

His letter was in response to an inquiry by Rep. Mary Bono Mack, R-Calif., who chairs the House Commerce Subcommittee on Commerce, Manufacturing and Trade, and Rep. G.K. Butterfield of North Carolina, the subcommittee’s top Democrat.

Sony officials were invited to testify at a subcommittee hearing on data breaches held Wednesday, but did not appear.

One witness, David Vladeck, director of Federal Trade Commission’s bureau of consumer protection, during his testimony called for legislation that would require companies to implement reasonable data security policies and procedures, and notify consumers in the event of a breach.

Source

April 18, 2011

Builder outlook falls ahead of spring season

Filed under: business, technology — Tags: , , , — Snowman @ 1:03 pm

Homebuilders are more pessimistic about the housing market this month, a dismal sign at the start of the spring-buying season.

The National Association of Home Builders says its index of industry sentiment for April fell slightly to 16. It had risen modestly in March, to 17, after four straight months at 16. Any reading below 50 indicates negative sentiment about the market. The index hasn’t been above that level since April 2006.

Last year was the worst in more than a decade for sales of previously owned homes and the worst for new-home sales in nearly a half-century.

Fewer homes mean fewer jobs. Each new home built creates, on average, the equivalent of three jobs for a year and generates about $90,000 in taxes, according to the builders’ trade group.

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April 16, 2011

Oil Prices Will Ease in 2012 on Stimulus Withdrawal, Russia’s Kudrin Says - Bloomberg

Filed under: business, term — Tags: , , , — Snowman @ 8:51 pm

Russia, the world’s biggest energy exporter, expects the price of oil shipments to the global market to start decreasing next year as governments begin to withdraw stimulus measures, Finance Minister Alexei Kudrin said.

Urals, the nation’s major export oil blend, will stay above $90 a barrel for 12 months to 18 months, Kudrin told a press briefing in Washington, D.C., yesterday. The price will probably fall to $60 a barrel in the next two years and stay at that level for about six months, he said, reiterating a forecast he made a year ago.

“With oil prices above $110 a barrel we are already in the zone of a slowing global economy,” Kudrin told reporters. “We expect oil prices to begin to decrease next year because excessive liquidity will be withdrawn from the international markets.”

Urals, Russia’s benchmark export blend, climbed above $100 a barrel in February as unrest in north Africa and the Middle East disrupted some oil flows. The International Monetary Fund cut its 2011 growth forecasts for the U.S. and Japan on April 11, citing “key downside risks” tied to surging oil prices.

Russia’s budget deficit is expected to be between 1 percent and 1.4 percent of gross domestic product in 2011, Kudrin said. Inflation will be at “about 7 percent” in Russia in 2011, Kudrin also said.

The country will use windfall revenue from energy sales to replace about 280 billion rubles ($10 billion) of planned spending from its Reserve Fund, Kudrin said.

Windfall Revenue

The government will use part of the windfall oil revenue to avoid some of the planned borrowing, Kudrin said. It will borrow mostly on the domestic market and won’t approve any decisions on the foreign market for now, he said.

“If we are able to borrow on the domestic market without rates going significantly higher, we will be borrowing,’’ Kudrin said. “If not, we can use between $200 million and $400 million, not more than that, to replace what we had planned to borrow domestically.’’

Kudrin said he will resign as chairman of the board of ZAO Alrosa, the world’s biggest diamond miner by output, and as a chairman of VTB Group, Russia’s second-largest bank.

Medvedev Order

Russian President Dmitry Medvedev on April 2 instructed eight senior government officials, including Deputy Prime Minister Igor Sechin, who is chairman of the largest Russian oil company OAO Rosneft, to quit their jobs at state-owned companies by July 1. Independent directors should replace them to improve transparency, the president said.

Russia won’t extend a tax break on oil shipments from the Vankor field for OAO Rosneft, the country’s biggest oil producer, Kudrin said. The company has been allowed to pay a reduced fee on exports of oil from the Vankor field. The measure expires in May and won’t be prolonged, he said.

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April 10, 2011

12 most common tax scams

Filed under: business, news — Tags: , , , — Snowman @ 12:59 pm

With less than two weeks to go before Tax Day, scammers are hard at work coming up with ways to score every last penny. That means stealing identities, filing fake tax forms, hiding income offshore and exaggerating charitable donations.

On Thursday, the IRS released its "dirty dozen" tax scams, detailing the most common ways taxpayers try to cheat the system.

"Don’t fall prey to these tax scams," IRS Commissioner Doug Shulman said in a statement on Thursday. "They may look tempting, but these fraudulent deals end up hurting people who participate in them."

The people who do choose to participate in them risk facing hefty fines and imprisonment, the IRS said.

Here are the 12:

Hiding your money offshore: If you have an offshore bank account, brokerage account, credit card or even an offshore insurance plan, the IRS urges you to come forward voluntarily in order to limit the possibility of criminal prosecution.

As part of its ongoing crackdown on hidden offshore accounts, the agency announced an initiative earlier this year that gives taxpayers a reduction in penalties — and no jail time — if they fess up to any undisclosed overseas accounts by the end of August.

Identity theft and phishing: The IRS warns that criminals can use your personal information to file a fraudulent tax return and collect the refund that you should be receiving.

Scammers can get this info from e-mails, phone calls, faxes or social media. If you receive a message from someone claiming to be from the IRS, don’t open any attachments or click on links included in the e-mail. Instead, forward the message to the IRS at phishing@irs.gov.

If you believe someone stole your personal information for tax purposes, call the IRS Identity Protection Specialized Unit at 1-800-908-4490.

Shady tax preparation: It’s easy for an accountant or tax preparer to take advantage of you, especially if you’re unfamiliar with the tax code or paperwork involved with filing a return.

There are many preparers out there who will skim a portion of a client’s refunds, charge more than they should for services and lure taxpayers to their offices by promising unattainable refunds.

It’s up to the taxpayer to be careful when selecting a preparer, but the IRS is also cracking down. Next year, all paid preparers will be required to register with the IRS to receive an identification number so customers can verify if they are legitimate.

Preparers will also be required to take competency tests and participate in continuing professional education, unless they are attorneys, certified public accountants or enrolled agents.

Filing false or misleading forms: Scam artists are trying to get fatter refunds than they deserve, fabricating information on their returns and claiming made-up withholding credits, the IRS said.

"The IRS continues to see instances in which people file false or fraudulent tax returns to try to obtain improper tax refunds," said the agency. "The IRS takes refund fraud seriously, has programs to aggressively combat it and stops the vast majority of incorrect refunds."

Arguing with the tax man: Have a bone to pick with the IRS? Be careful.

Taxpayers are being convinced by scam artists to argue with the IRS in order to get back some of the taxes they owe to the agency.

"Promoters of frivolous schemes encourage people to make unreasonable and outlandish claims to avoid paying the taxes they owe," the IRS said. "While taxpayers have the right to contest their tax liabilities in court, no one has the right to disobey the law or IRS guidance."

The agency has a list of legal positions that have been "thrown out of court" and cannot be used against the IRS, so pick your fights carefully this tax season.

Inflating your withholding credit: You could be fined $5,000 this year if you exaggerate your withholding when reporting nontaxable Social Security benefits, which would result in your falsely reporting zero income to the IRS.

Exaggerating your charitable donations: It can be tempting to overvalue items you give away when reporting them on your return — especially for non-cash donations such as furniture or artwork — but the IRS is keeping an eye out for suspiciously high-valued donations this year.

The agency is also looking out for taxpayers who abuse charitable deductions by donating money or items to tax-exempt organizations temporarily, just to shield the money for taxation.

Fishy retirement plans: The IRS is on the hunt for taxpayers who abuse their retirement plan arrangements, including individual retirement accounts (IRAs). Many of these taxpayers are finding ways to exceed the contribution limit of IRAs or aren’t reporting early distributions.

While illegal, this abuse is often encouraged by advisers, so taxpayers should be wary of such advice, the IRS said.

Disguising your company: It’s time to fess up to that business you own. The IRS is currently working with state authorities to identify corporations and other entities that disguise the ownership of a business.

These entities are often disguised through using a third party to request an employer identification number, and the businesses or financial services can be used for the underreporting of income, fictitious deductions, money laundering, financial crimes and even terrorist financing.

Giving yourself a pay cut: In an attempt to lower the amount of taxes owed, some taxpayers file phony wage-related information returns instead of the required returns. This is typically done by filing Form 4852 (a substitute W-2 form) or a "corrected" Form 1099 to fraudulently lower a person’s taxable income to zero.

"Taxpayers should resist any temptation to participate in any of the variations of this scheme," said the IRS, adding that false filings could result in a $5,000 fine.

Abusing trusts: An increasing number of people are transferring money into trusts to reduce their taxable income, deductions for personal expenses and estate taxes.

"Such trusts rarely deliver the tax benefits promised and are used primarily as a means to avoid income tax liability and hide assets from creditors, including the IRS," the agency said.

Claiming gas costs: Gas is pricey these days, but that doesn’t make you eligible for the fuel tax credit. In fact, trying to claim this credit when you don’t deserve it could cost you a $5,000 fine from the IRS.

While taxpayers such as farmers who use fuel off highways as a means of carrying on their trade or business may qualify for the fuel tax credit, you can only claim the credit if your use of fuel and income level meet specific IRS requirements. 

Source

April 8, 2011

New unemployment claims decline by 10,000

Filed under: business, money — Tags: , , , — Snowman @ 8:51 pm

The number of Americans filing first-time claims for unemployment benefits fell by 10,000 last week, while the overall jobless rolls also declined, according to a government report released Thursday.

There were 382,000 initial jobless claims filed in the week ended April 2, the Labor Department said. The figure was down from the previous week’s revised 392,000.

Economists were expecting 386,000 initial claims in the latest report, according to consensus estimates gathered by Briefing.com.

Initial claims filings have been on the decline for several months, raising hopes that the recovery in the job market is gaining steam payday lenders. The government said last week that the U.S. economy added 216,000 jobs in March, while the unemployment rate edged down to 8.8%.

In addition to the drop in initial claims, the number of Americans filing ongoing claims for unemployment benefits fell 9,000 to 3,723,000 in the week ended March 26, the most recent week available. 

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February 13, 2011

Minister: Brits don’t realize painfulness of cuts

Filed under: business, technology — Tags: , , , — Snowman @ 6:04 pm

A senior U.K. minister says his country’s middle class still hasn’t grasped just how much the government’s spending cuts will hurt.

In an interview published Saturday in The Daily Telegraph, Justice Minister Kenneth Clarke said “middle England” had still not quite grasped what he called the “calamitous position” of the British economy.

Britain’s Conservative-led coalition government is pushing through a wide range of spending cuts and tax hikes in a bid to control the country’s burden of debt free business cards. Tuition increases intended to help plug the hole in the nation’s finances have already led to violent protests.

Clarke, however, says the full impact of the cuts will only begin coming home this year.

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February 12, 2011

Vietnam Devalues Dong by Record 7% as Officials Seek to Curb Trade Deficit - Bloomberg

Filed under: Uncategorized, business — Tags: , , , — Snowman @ 3:07 am

Vietnam devalued the dong by about 7 percent, the most since at least 1993, risking faster inflation to curb the nation’s trade deficit and narrow the gap between official and black-market exchange rates.

The dong slumped to as weak as 20,893 per dollar, compared with 19,498 yesterday, and was at 20,850 at 12:05 p.m. in Hanoi. The State Bank of Vietnam fixed the reference rate for the currency at 20,693 versus 18,932 yesterday. The trading band was narrowed to 1 percent on either side of the rate, compared with 3 percent previously.

Vietnam’s fourth devaluation in 15 months takes place with its inflation rate at the fastest in almost two years, and with the International Monetary Fund describing its foreign-currency reserves as being “low.” While the whole of Asia outside Japan is struggling to curb inflation, countries such as China, Taiwan and Singapore have strengthening currencies and rising foreign- exchange reserves.

“There is still a crisis of confidence out there,” said Nizam Idris, a strategist at UBS AG in Singapore. “There’s still more pressure for the currency to depreciate some more.”

The currency traded yesterday on the black market at 21,300, 8.5 percent weaker than the official rate, and this afternoon weakened to as much as 21,550, according to a telephone information service run by Vietnam Posts & Telecommunications.

Currency Credibility

“This is an overdue attempt to get the currency market under control,” said Kevin Snowball, chief executive of PXP Vietnam Asset Management in Ho Chi Minh City. “You can’t just leave a 10 percent differential between the official and black- market rates without destroying the credibility of the entire currency regime.”

The devaluation may ease a drop in foreign-exchange reserves and calm the market at the risk of boosting imported inflation, wrote Tai Hui, the Singapore-based head of Southeast Asian economic research for Standard Chartered Plc.

“Higher interest rates are still needed to maintain price stability and prevent further dong sell-offs,” Hui wrote in a research note today. “The credibility of the State Bank of Vietnam needs improvement given repeated one-off devaluations.’

While the central bank’s so-called base rate has held at 9 percent since November, market interest rates have climbed to as high as 20 percent, Ho Chi Minh City-based Viet Capital Securities said last week.

The International Monetary Fund, which in December called for a further tightening of monetary policy to ‘‘restore orderly conditions in the foreign-exchange market” and contain inflation, said today that it welcomed the attempt to narrow the gap between the official and parallel market exchange rates.

IMF View

Still, Vietnam also needs “a broader set of policies to restore macroeconomic stability,” said Benedict Bingham, the IMF’s senior resident representative in Vietnam poor credit personal loans. “Monetary policy will need to focus more decisively on containing inflation, and fiscal policy will need to be put on a clearer consolidation path to contain public debt.”

The monetary authority had already devalued the dong in November 2009 and February and August last year, amid concern the nation will run short on foreign capital needed to fund a trade deficit, which reached $1 billion in January, according to preliminary government figures.

While the official exchange rate of the currency had been little changed since the August 2010 devaluation, on the black market the currency weakened from about 19,500.

“We paid 20,500 per dollar in December and 20,800 in January,” said Alan Young, chief operating officer of Australian-listed Vietnam Industrial Investments Ltd., which runs steel plants in the northern port city of Haiphong. “You just can’t buy dollars at the official rate.”

‘Very Steep’

Currency reserves probably fell to about $13.6 billion at the end of last year, down from $14.1 billion in September and $23.9 billion in 2008, according to Citigroup Inc.

The devaluation is “very steep,” said Dariusz Kowalczyk, senior economist at Credit Agricole CIB in Hong Kong. “It seems the authorities are trying to support exports and to support growth, rather than to fight inflation. That’s very surprising because inflation in Vietnam is a major problem.”

The central bank said the measures will help “manage the exchange rate more flexibly” and curb the trade deficit.

“We will adjust the reference rate more flexibly, more often now, depending on the market demand, instead of leaving the rate fixed for a long time,” said central bank Deputy Governor Nguyen Van Binh.

Growth Focus

Moody’s Investors Service cut Vietnam’s sovereign credit rating in December, citing the risk of a balance-of-payments crisis and a drop in foreign reserves as inflation accelerates and the currency weakens. Consumer prices increased 12.17 percent last month from a year earlier, compared with 11.75 percent in December, according to the statistics office.

“One of our top priorities now is to stabilize the macro economy in order to maintain the pace of growth,” Nguyen Van Thao, deputy chief administrator of the ruling Vietnamese Communist Party’s Central Committee, said on Jan. 19. The government forecasts the economy will expand by up to 7.5 percent this year, compared with 6.78 percent in 2010.

Source

February 10, 2011

Winnipeg, Toronto driving rise in new-house prices

Filed under: business, online — Tags: , , , — Snowman @ 1:27 pm

OTTAWA

January 30, 2011

Bankers remain tightfisted despite recovery

Filed under: business, marketing — Tags: , , , — Snowman @ 3:43 am

A letter from his bank left businessman Tom Neusel outraged.

M&I Bank said the interest rate on his company’s $70,000 loan was jumping to 7.5 percent from 4.25 percent. Just like that.

“This is not a reflection on you in any way,” said the letter, “but more as a result of the increased risk in the economy and general cost of funds increase across the entire banking industry.”

A year and a half after the official end of the Great Recession, banks are still tightfisted with lending, although they are starting to loosen just a bit.

“I have the feeling that it’s starting to come back slowly,” said Dennis Melton, district director for the Small Business Administration in St. Louis. “I’m not getting the phone calls that I used to get saying,

December 25, 2010

WAfricans threaten force in Ivory Coast; 14K flee

Filed under: business, finance — Tags: , , , — Snowman @ 11:51 pm

The man who refuses to leave Ivory Coast’s presidency faced new threats to his grasp on power after regional leaders threatened to remove him by force if necessary.

Meanwhile, the U.N.’s refugee agency said Saturday that at least 14,000 Ivorians have fled the chaos of their homeland, trekking for days to reach safety in Liberia.

Diplomatic pressure and sanctions have left Laurent Gbagbo increasingly isolated though he has been able to maintain his rule nearly a month after the disputed vote because of the loyalty of security forces and the military.

Even that, though, may disappear if he runs out of money to pay them.

Late Friday, West Africa leaders from the 15-country regional bloc ECOWAS _ the Economic Community of West African States _ threatened to send military intervention into Ivory Coast if incumbent Gbagbo refuses to step down peacefully.

“In the event that Mr. Gbagbo fails to heed this immutable demand of ECOWAS, the Community would be left with no alternative but to take other measures, including the use of legitimate force, to achieve the goals of the Ivorian people,” said a statement from ECOWAS.

James Gbeho, president of ECOWAS said the group of West African leaders was making an “ultimate gesture” to Gbagbo to urge him to make a peaceful exit.

The 15-nation regional bloc of West African states made the decision following a six-hour emergency summit in Abuja, Nigeria, on Ivory Coast as worries mounted that the country that suffered a 2002-2003 civil war could return to conflict.

Gbeho said the bloc would send in a high-level delegation to meet with Gbagbo, and tell him to step down, but did not give details as to when the delegation would go or a deadline for Gbagbo.

The threat of force came on the tail of another serious international reproach, this one from the West African economic and monetary union, which called on the regional central bank to cut off Gbagbo’s access to state coffers.

Gbagbo’s spokesman Ahoua Don Mello on Saturday denounced the decision by the union to give Ouattara’s government signing privileges on state accounts. He called the move “illegal and manifestly beyond their competence.”

The meeting of regional finance ministers that issued the freeze “overstepped its stated prerogatives by interfering in the internal affairs of a member state of the union,” Mello said on state television Friday evening.

Gbagbo’s government has denied rumors that state salaries wouldn’t be paid, and in spite of the financial freeze, civil servants received their paychecks the day before Christmas Eve. But senior diplomatic sources, speaking on condition of anonymity because of the sensitivity of the issue, say that Gbagbo only has enough reserves to run the state for three months, setting the scene for a drawn-out standoff.

Ivory Coast is the world’s biggest cocoa grower, producing 40 percent of the world’s supply. While a cocoa embargo might have a more immediate impact on Gbagbo’s ability to govern, European and American business interests prevent this from being seriously considered, said African security analyst Peter Pham.

“A cocoa embargo isn’t even on the table,” said Pham, who is the Senior Vice President of the National Committee on American Foreign Policy in New York.

The threat of military intervention may add enough pressure to bring about a swifter resolution, said Pham, though he questioned whether a force could be brought together quickly enough to have an impact.

“Nigeria _ the only real military power in the AU _ is unlikely to have the stomach for a drawn-out military escapade on the eve of their own presidential election,” he said. Nigerian elections will be held in April next year.

Gbagbo has refused to step down from the presidency despite international calls for his ouster from the U savings account payday advance.N., U.S., former colonizer France, the European Union and the African Union. The international community recognizes Alassane Ouattara as the winner, though Gbagbo maintains control of the national military.

In recent days, the United Nations has expressed alarm about the actions of men who are believed to be Gbagbo loyalists. At least 173 deaths have been confirmed in violence over the presidential vote, and the U.N. is warning the number could be greater since it has been unable to investigate all the allegations.

Masked gunmen with rocket launchers have blocked access to what officials believe may be a mass grave site in Ivory Coast, the United Nations said. The world body also reported Thursday that heavily armed forces allied with Gbagbo and joined by masked men, were preventing people from getting to the village of N’Dotre, where the global body said “allegations point to the existence of a mass grave.”

The U.N. did not elaborate on the possible victims, though it has expressed concerns about hundreds of arrests, and dozens of cases of torture and disappearance during the political turmoil since the presidential runoff vote was held nearly a month ago.

Even the top U.N. envoy in the country was stopped at gunpoint while trying to look into reports of human rights abuses, the U.N. deputy human rights commissioner in Geneva said Thursday.

On Saturday, the Geneva-based office of the U.N. High Commissioner for Refugees announced that the agency has “registered 14,000 Ivorian refugees in eastern Liberia who fled in the wake of post-electoral instability in their country for nearly a month now.”

“With their numbers growing, the humanitarian needs are increasing for the mostly women and children refugees as well as for the villagers hosting them,” the agency said in a statement.

“The growing number of new arrivals is impacting communities hosting the refugees. Food supplies are running short despite efforts by the government and humanitarian agencies to bring in more assistance,” the UNHCR said.

Meanwhile, Ouattara continued to assert his legitimacy from the Golf Hotel, where he has taken refuge since the election, protected by 800 U.N. peacekeepers.

“After these long years of crisis, the Ivorian people deserved to rejoice in our democratic advancement,” Ouattara said. “But former president Laurent Gbagbo has decided to turn a new page of violence and uncertainty, aggravating everyday a little more the suffering of Ivorians,” he said in a Christmas Eve address.

Troops loyal to Gbagbo continue to encircle the hotel. While their blockade was officially lifted last week and U.N. supply trucks were authorized to cross the lines, no one else has been allowed access to the compound.

Ouattara is trying to assert control over state television, which had been controlled by Gbagbo until Thursday, when it was pulled from airwaves in 80 percent of the country.

Only people in the main city of Abidjan continued to receive the state channel, which has been exclusively reporting Gbagbo’s victory, refusing to mention the results that make Ouattara president, or his international support.

“We don’t know who did it,” said Ouattara adviser Amadou Coulibaly, “but we’re sure glad they did.”

Ivory Coast was once an economic hub because of its role as the world’s top cocoa producer. The 2002-2003 civil war split the country into a rebel-controlled north and a loyalist south. While the country officially reunited in a 2007 peace deal, Ouattara draws his support from the northern half of the country, where he was born, while Gbagbo’s power base is in the south.

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