Argentine leader's polling plunges as peso drops

BUENOS AIRES (AP) — Cristina Fernandez has ruled out any currency devaluation while she's president of Argentina, and dismissed as election-year politics a brewing scandal over allegations of money laundering by businessmen close to her and her late husband Nestor Kirchner.

But as inflation soars, central bank reserves drop and the economy slows, hamstrung by currency controls that make doing legal business more difficult, many Argentines are losing faith in the peso, and in her leadership as well.

A closely watched sign of the country's economic future is the illegal currency market, where Argentines are increasingly desperate to ditch their pesos as inflation climbs above 25 percent a year. Amid fears of a potential currency shock, they're now trading nearly 10 pesos for each dollar — close to half the official value of 5.2.

This "blue dollar" trading remains marginal compared to the overall economy, but it's a free market, stubbornly beyond the government's control, and as such, it's increasingly being looked at by Argentines trying to protect their pocketbooks. The central bank periodically releases dollars to rein it in, but that's risky as well, now that Argentina's reserves have dropped by more than 20 percent, to $39.75 billion.

New polls suggest Fernandez has lost more than half the support she had when re-elected in October 2011, including a 10-point ratings drop in the days since a scandal broke on April 14 over allegations that Kirchner ally and businessman Lazaro Baez spirited millions in cash out of Argentina in private planes.

A survey by the Management & Fit agency shows only 29 percent approval of Fernandez's leadership, down from 64 percent when she was re-elected. That poll of 2,000 Argentines, taken just after the scandal broke, had an error margin of 2.3 percentage points.

A separate survey about her personal image showed 48 percent viewed it as positive after the scandal broke, down from 57 percent before. A total of 1,000 Argentines responded to that survey by the Ipsos-Mora firm, which had an error margin of 3 percentage points.

Fernandez waved away the trouble in a speech at the Casa Rosada government house Monday night.

"Those who want to make money at the cost of a devaluation that the people will have to pay for will have to wait for another government," she declared. History shows that devaluations have only hurt most Argentines, while enabling the financial sector to make huge gains "off the hunger, misery and de-industrialization of the country," she warned.

"They're raising this idea again because an election period is approaching," she added. "Every time there's an election, on side there's the economy and on the other, the scandals. It's typical of every election."

That brief reference to scandals was her first comment yet about allegations that Baez, a longtime ally of the Kirchners, had used his access to the presidential couple to make huge profits that he laundered by having aides fly the cash out of the country in mysterious trips on private planes.

The allegations, made by former Baez associates in televised interviews with investigative journalist Jorge Lanata, have made for sensational television in Argentina, and a judge agreed to open a formal investigation of Baez and his associates.

Lanata struck closer still to the president on Sunday night, interviewing Kirchner's former secretary, Miriam Quiroga, who described bags full of cash in the Casa Rosada. She said they were delivered to the southern province of Santa Cruz, where Baez based his business empire and the Kirchners have several homes. Quiroga also alleged that the Kirchners had vaults built to hold the cash.

Judge Julian Ercolini subpoenaed Quiroga to testify in the widening criminal investigation by prosecutor Guillermo Marijuan, and Attorney General Alejandra Gils Carbo ordered additional police protection for the prosecutor, who reported receiving at least two threats that his young daughters will be killed if he doesn't drop the probe.

Meanwhile, Fernandez faced a new challenge on her left flank: the launching Tuesday of a new political party by her former ally, union boss Hugo Moyano, who has become one of her toughest critics. Moyano plans to run lists of candidates under his "Culture, Education and Jobs" banner in October's midterm elections.

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Associated Press Writer Almudena Calatrava contributed to this report.

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Tuareg leaders announce new group in northern Mali

BAMAKO, Mali (AP) — A new group of Tuareg leaders in northern Mali says it wants to hold negotiations with the Malian government.

A statement from Tuareg leaders in the Kidal region announced the launch of the High Council for the Azawad.

Azawad is the name separatist Tuareg rebels use to describe their homeland in northern Mali.

While the group says it is a new association, it is believed to be made up of members from the NMLA, or National Movement for the Liberation of the Azawad. That group has formally backed away from its goal of creating an independent state.

However, it has opposed the presence of the Malian military in Kidal, accusing Malian soldiers of carrying out human rights abuses against the local population.

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China hosting both Palestinian, Israeli leaders

BEIJING (AP) — China is hosting both the Palestinian and Israeli leaders this week in a sign of its desire for a larger role in the Middle East.

Palestinian President Mahmoud Abbas was welcomed by his Chinese counterpart Xi Jinping in Beijing on Monday, as Israeli Prime Minister Benjamin Netanyahu began a visit to the eastern financial hub of Shanghai. Netanyahu is due in Beijing on Wednesday following Abbas' departure a day earlier.

China's Foreign Ministry said last week it would be willing to help set up a meeting between Abbas and Netanyahu if the two men wanted. Talks between the Israeli and Palestinian sides have been deadlocked for four years and there was no indication a meeting would take place.

China has traditionally maintained a low profile in Middle East diplomacy, but in recent years has tried to play a more active role in the region as part of its quest for markets, resources and diplomatic influence. Beijing has sought stable relations with both sides in the Israel-Palestinian conflict, but Israel's weekend airstrike on a Syrian military complex created a turbulent start to China's diplomatic foray.

Asked by reporters about playing host to Netanyahu following the airstrike, Chinese Foreign Ministry spokeswoman Hua Chunying avoided criticizing Israel by name but said, "We oppose the use of force and believe any country's sovereignty should be respected."

Still, Hua reiterated that China's hosting the two leaders should be positive for promoting regional peace. "China thinks it is of great significance to help facilitate the Middle East peace process, and would like to make positive and constructive efforts in helping resume peace talks between Palestine and Israel," Hua said at a daily media briefing in Beijing.

Meeting with Xi at the Great Hall of the People, the seat of China's legislature, Abbas reviewed the history of their relations stretching back to the 1960s and said the two sides shared the "same views on many world problems."

"I appreciate China's high position in the world nowadays," Abbas said in opening remarks at the meeting, which was followed by the signing of agreements on technical cooperation and cultural exchanges.

China recognized the Palestinian state in 1988, four years before establishing diplomatic ties with Israel.

In an interview with China's official Xinhua News Agency last week, Abbas said he wanted to involve China more in the Middle East peace process, and said the dual visits would offer a "good opportunity for the Chinese to listen to both of us."

Netanyahu's visit is the first by an Israeli leader since Ehud Olmert visited in 2007, and is expected to include the signing of numerous trade deals. China is a major customer for Israeli know-how, from high-technology to agriculture, engineering and military hardware and services, including the training of Chinese security forces and purchase of unmanned aerial vehicles.

After touring a high-tech industrial park, Netanyahu spoke to Israeli and Chinese business leaders in Shanghai. He paid tribute to Shanghai's role as a haven for European Jews fleeing the Holocaust, and then touted the potential for future cooperation combining Israel's high-tech know-how with China's manufacturing heft.

"Israel is not as big as China. We have 8 million residents, approximately one-third the population of Shanghai. But we manufacture more intellectual property than any other country in the world in relation to its size. If we create a partnership between Israel's inventive capability and China's manufacturing capability, we will have a winning combination," Netanyahu said, according to remarks distributed by his office.

Hua, the Foreign Ministry spokeswoman, said China wanted to see a solution to the Israel-Palestinian conflict that allowed for both Israeli security and a Palestinian state based on the handover of occupied territory to the Palestinian Authority.

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Turkmen leader's horse fall hidden from nation

MOSCOW (AP) — Seeing the president slam face-first into the ground after falling from a speeding horse would be a shock to any nation. In authoritarian Turkmenistan, many residents didn't even get the chance.

President Gurbanguli Berdymukhamedov apparently wasn't seriously injured Sunday when his horse stumbled and he pitched into the dirt track at the hippodrome on the outskirts of the capital, Ashgabat. But the fall was certainly a wound to the pride of the 55-year-old Central Asian leader, whose all-powerful personality cult portrays him as effortlessly competent.

Thousands of people were in the stands for the race that celebrated Turkmenistan's renowned desert racehorse breed, the Akhal-Teke. But state television's video of the race cut off just before the fall and the extensive written reports on the event didn't mention the plunge.

All domestic broadcasting in Turkmenistan is state-run; newspapers are either state-run or under heavy government supervision. Media criticism of the president is non-existent and elaborate praise of him is ubiquitous in this nation of 5 million, wedged between the Caspian Sea and Iran, Afghanistan and Uzbekistan.

Turkmenistan's security agencies reportedly went into high gear to try to block video or images of the president's fall from slipping out to the rest of the world. The opposition-in-exile group Gundogar cited witnesses as saying police were carefully checking the computers, tablets, mobile phones and cameras of departing passengers at Ashgabat's airport. The horse celebration had attracted an array of foreign horse enthusiasts.

Video obtained by The Associated Press shows a rider falling when his horse stumbles just after crossing the finish line in first place. State media reported that Berdymukhamedov won the race.

The horse also fell, but quickly got up, showing a slight limp. Berdymukhamedov, however, lay motionless. Within seconds, several dozen men in dark suits and one in traditional garb including a high white sheepskin hat rushed onto the track, and an ambulance soon arrived.

The man who shot the video spoke on condition of anonymity for fear that divulging his name could have negative repercussions on his livelihood. He said the president reappeared about half an hour later to accept the winner's prize — about $11 million.

State TV showed the president accepting the award, which he said would be used to improve Turkmenistan's horse breeding.

The choreographed winning of the race — the nearest challenger was obviously throttling back his mount in the home stretch — the media censorship and the reported tough security response at the airport all reflect Turkmenistan's two decades of stifling authoritarianism.

Since becoming independent in the 1991 collapse of the Soviet Union, Turkmenistan has been an extreme example of a one-party state.

Its first leader, Saparmurat Niyazov, developed a pervasive personality cult that included renaming months of the year after his family members. He also mandated that all schoolchildren study his rambling spiritual guide and once claimed that reading it three times would guarantee the reader a berth in heaven.

Some of his measures verged on black comedy, including banning opera and ballet because they did not reflect traditional Turkmen culture and banning lip-synching on the grounds that it weakened Turkmens' ability to become skilled singers.

Berdymukhamedov, who became president after Niyazov's death in 2006, has put aside some of Niyazov's more extreme measures, but he has not opened up Turkmenistan's politics or media. His own personality cult includes such feats as winning last year's maiden automobile race in Turkmenistan, even though he supposedly wasn't scheduled to take part and asked to join only at the last minute.

State media reports about the president's actions overflow with admiration and delight.

"The audience greeted President Gurbanguli Berdymukhamedov, who finished first — demonstrating great skills of horse riding, the will to win, firmness and courage — with a storm of applause," the state news agency TDH reported after Sunday's race.

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China's leaders move to fill top government posts

BEIJING (AP) — The Chinese Communist Party's No. 2 leader was confirmed Friday as premier, tasked with addressing a slowing economy and defusing public anger over corruption, pollution and a growing gap between rich and poor.

China's rubberstamp legislature appointed Li Keqiang to the premiership as a long-orchestrated leadership transition neared its end. Final touches take place Saturday with selections of vice premiers, a central bank governor and finance and other ministers, and the legislature wraps up on Sunday.

Party chief Xi Jinping was appointed Thursday to the ceremonial post of president, completing his ascension as China's pre-eminent leader after being promoted last November to head the Communist Party and the military.

Though the outcome of the legislative session was a foregone conclusion, it's the result of years of fractious behind-the-scenes bargaining. They hail from different factions: Li Keqiang (pronounced lee kuh chee-ahng) is a protege of the now-retired President Hu Jintao while Xi Jinping (pronounced shee jin ping) is the son of a revolutionary veteran with backing among party elders.

Xi cuts an authoritative figure with a confidence and congeniality that was lacking in his predecessor, the aloof and stiff Hu. New Premier Li, from a mid-level officials' household, has appeared to be a cautious administrator, like Hu, and has not been associated with particular policies on his rise.

Evidence of their and their patrons' ability to forge consensus will be seen Saturday when appointments to the Cabinet and other top government posts are announced.

As China's top economic official, Li faces politically fraught challenges in keeping growth strong and incomes rising.

China's leaders say they want more sustainable growth based on domestic consumption and technology instead of trade and investment. They have lowered annual growth targets to emphasize the shift. But consumer spending is rising only slowly, which has forced Beijing to keep pumping money into investment to support a sluggish economic recovery.

"If the official data is to be believed, China has been moving in the wrong direction for the past decade - towards 'more investment, less consumption,'" wrote Standard Chartered economists Stephen Green and Wei Li in a research note. "This could create problems."

Reformers say communist leaders have to curb state companies that dominate industries from energy to telecoms to banking, and encourage free-market competition or growth could sink to 5 percent or lower by 2015, raising the risk of job losses and unrest. That will require Li, who has shown little appetite for confrontation, to challenge politically powerful corporate bosses.

China's leadership is consensus-oriented, so governing the country is often sluggish business because none of the leaders are politically strong enough to prevail independently.

Wu Xiangdong, chairman of a wine company in central Hunan province and one of the congress delegates who poured out of the vast, ornate Great Hall of the People after Friday's vote, said expectations were high for Li, the new premier.

"We are very excited and look forward to the premier and the new generation of leaders to be better able to work on the economy, food safety, the environment and improving social equality," Wu said.

The National People's Congress endorsed Li for the post with a vote of 2,940, with three opposed and six abstaining.

In some intriguing signs of the new leadership's direction, the congress on Friday appointed as supreme court president Zhou Qiang, a provincial party secretary with a reputation as a progressive and a former aide to a well-known legal reformer. On Thursday, another liberal-minded reformer and a close ally of Hu, Li Yuanchao, was named vice president, breaking with the practice of recent years because he is not in the party's seven-member ruling inner sanctum.

The new government will be expected to carry out promises outlined in a policy program delivered last week, including cleaning up the country's environment, fighting graft and improving the social safety net.

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Associated Press writer Joe McDonald contributed to this report.

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Follow Gillian Wong on Twitter: http://twitter.com/gillianwong

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US warns Afghan leader's comments threaten troops

KABUL, Afghanistan (AP) — The top U.S. commander in Afghanistan warned his troops to be ready for increased violence because of a series of anti-American statements by Afghan President Hamid Karzai, NATO said Thursday.

In an email to battlefield commanders, Gen. Joseph Dunford, said the remarks could spur more insider attacks, days after gunmen in Afghan uniforms killed two U.S. special forces troops and a U.S. contractor in two separate shootings.

"We're at a rough point in the relationship," Dunford said in the email, according to a senior U.S. official, speaking anonymously to discuss the confidential communication.

Karzai's office released a new statement Thursday explaining the president's earlier remarks, after news of Dunford's email broke.

"My recent comments were meant to help reform, not destroy the relationship," the statement quotes Karzai telling an audience gathered for a televised talk show filmed at the Presidential Palace Thursday. "We want good relations and friendship with America, but the relationship must be between two independent nations."

That explanation may do little to soothe U.S. officials' unease. Over the weekend, the Afghan leader accused the U.S. of colluding with the Taliban on suicide attacks to keep the country unstable and give foreign forces an excuse to stay beyond their 2014 mandate. His remarks followed two suicide attacks that killed at least 19 Afghans on Saturday, coinciding with the first official visit by U.S. Defense Secretary Chuck Hagel.

Karzai also cautioned that the delay in handing over a U.S.-run detention center to Afghan control "could harm bilateral relations." His remarks came after he and Dunford met Wednesday to discuss the issue but failed to resolve the impasse.

The prison transfer, originally slated for 2009, has been repeatedly delayed because of disputes between the U.S. and Afghan governments about whether all detainees should have the right to a trial and who will have the ultimate authority over the release of prisoners the U.S. considers a threat.

The Afghan government has maintained that it needs full control over which prisoners are released as a matter of national sovereignty. The issue has threatened to undermine ongoing negotiations for a security agreement that would govern the presence of U.S. forces in Afghanistan after the current combat mission ends in 2014.

Dunford and other top U.S. officials have rejected Karzai's allegations of collusion with the Taliban.

Dunford's warning to his troops, first reported by The New York Times, showed the deep U.S. concern that Karzai's words could go beyond angry rhetoric and spark violence targeting U.S. forces, a threat that could harm the larger relationship.

NATO also released a statement explaining the missive, saying it "routinely conducts assessments and adapts its protection posture to ensure our forces are prepared to meet potential threats." The statement calls Dunford's email "prudent given increased coalition causalities in recent days."

Dunford also said unusually warm weather could mean an early start to the Taliban fighting season because militants can return from now-open high mountain passes from Pakistan.

On the detention center issue, NATO released a statement Wednesday saying both parties pledged to continue constructive dialogue to resolve the remaining issues. The facility has an Afghan administrator but is still U.S.-run.

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Leaving NKorea, Rodman calls Kims 'great leaders'

PYONGYANG, North Korea (AP) — Ex-NBA star Dennis Rodman has left North Korea after his unexpected round of basketball diplomacy. At the airport, he called leader Kim Jong Un an "awesome guy" and said his father and grandfather were "great leaders."

Rodman is the highest-profile American to meet Kim since the authoritarian leader inherited power from his father, Kim Jong Il, in 2011. Kim and Rodman watched a basketball game Thursday and later drank and dined on sushi together.

At Pyongyang's Sunan airport on Friday, Rodman said it was "amazing" that Kim "was so honest." He added that Kim Jong Il and North Korean founder Kim Il Sung "were great leaders."

Rodman's visit began Monday and took place amid tension between Washington and Pyongyang. North Korea conducted an underground nuclear test just two weeks ago.

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