Tens of thousands of Indonesians mourned former dictator Suharto during his state funeral Monday, a striking display of affection for the U.S. Cold War ally whose brutal military regime killed hundreds of thousands of left-wing political opponents. As mourners watched a motorcade carry the former dictator’s body to the Suharto family mausoleum, many sobbed and called out the name of the man whose rule, though harsh, brought economic growth and stability to Indonesia.
European and most Asian stock markets rebounded Tuesday as investors cheered an overnight rally on Wall Street and snapped up beaten down shares on expectations of a U.S. interest rate cut later this week. But growing speculation that the Federal Reserve will lower a key rate by a quarter point, instead of the more aggressive half-point, kept gains in check. European shares rose in early trading while U.S. markets were mixed.
The $146 billion economic aid package on a fast track to passage in the House faces an uncertain future in the Senate, where lawmakers in both parties are trying to tack on billions for senior citizens and the unemployed. The House moved toward a Tuesday vote on its plan to speed rebates of up to $600-$1,200 to most income earners while giving tax breaks to businesses. In the Senate, Max Baucus, the Finance Committee chairman, set a Wednesday vote on a roughly $160 billion version he unveiled Monday, which would give $500 to $1,000 rebates to a broader group, including older Americans living off Social Security as well as wealthier taxpayers, and would extend unemployment benefits.
Hundreds of students chanting “Death to America” protested Pakistan’s support for the U.S.-led fight against terrorism, as the government said Tuesday that security forces would show “no leniency” in the conflict with Islamic militants. In the latest violence, a missile strike near the Afghan border destroyed a suspected militant hideout and killed 12 people inside, intelligence and government officials said. Pakistan is facing a surge in religious extremism that has seen pro-Taliban fighters gain sway in the northwest and launch a wave of suicide bombings in cities and assaults on troops struggling to maintain a grip on the borderlands.
Gunmen who held more than 30 hostages inside a Venezuelan bank for more than 24 hours negotiated their getaway in an ambulance Tuesday but were later stopped on a highway and arrested. Five remaining hostages were freed as the four gunmen laid down their weapons, Guarico state Gov. Eduardo Manuitt said. “This nightmare is over,” Manuitt told state television.
