government bond prices moved up from earlier lows.”After the unexpected Easter-related drop in claims last week we expected a bigger rebound, taking claims back to their highs of around 670,000,” said Ian Shepherdson, chief U.S. economist at High Frequency Economics.”The failure to rise that high suggests either that the trend in claims is peaking or that the data are still affected by seasonal problems related to the holiday. We are inclined to take the latter view,” he said.The rise in continued claims pushed the uninsured unemployment rate to 4.6 percent from 4.5 percent the week before, the highest rate since January 1983.A Labor Department official said there were no special factors affecting the data.The four-week average of new jobless claims, a better gauge of underlying labor trends because it irons out week-to-week volatility, declined somewhat to 646,750 from 651,000 the week before, but remained at elevated levels.(Reporting by Alister Bull, Editing by Neil Stempleman) Hot Stocks Economy. There is no candidate who has the stature to oppose the general,” said a Mauritanian political analyst who spoke on condition of anonymity.None of Abdel Aziz’s three main opponents have the experience or power base to take on the general, whose style has become more populist and polished since his early appearances in uniform after deposing Sidi Mohamed Ould Cheikh Abdallahi.Ibrahima Moctar Sarr, leader of the Alliance for Justice and Democracy-Movement for Renewal party, which appeals to Mauritania’s black population, has said he will stand. Sarr took 8 percent of the vote in the 2007 polls, finishing fifth.Also on the ballot on June 6 will be Kan Hamidou Baba, vice-president of the national assembly, who was thrown out of the National Front for the Defence of Democracy (FNDD), an anti-junta coalition, for his conciliatory stance towards the junta.Sghair Ould M’Bareck, a former prime minister, will also stand.CREDIBILITY GAPThe FNDD argues Abdel Aziz steamrollered through his election timetable without consultation, and has consistently said it would boycott the poll. As a result, potential heavyweights such as veteran politician Mohamed Ould Daddah are out of the running.”We refuse to participate in this charade.

What’s needed is to foil the coup d’etat, and prevent this election being held,” said Mohamed Ould Maouloud, an FNDD leader.While such a weak field is unlikely to prevent Abdel Aziz, who has officially resigned from his current post, winning the presidency, it may cast doubt on the winner’s legitimacy.”The anti-putsch movement does not have the means to stop the election, but they can certainly try to damage its credibility,” said the political analyst.The African Union imposed sanctions in February, while the European Union said earlier this month it could not work with a military government and would suspend aid for two years.”No EU observer will be mandated for the election, which will not be recognised by everyone, neither domestically nor abroad. It’s a problem for the credibility and legitimacy of the next head of state,” a European diplomat said.The High State Council run by Abdel Aziz says it has given the FNDD every chance to talk.”We have never closed the door to dialogue, but the opposition has never wanted to take part in negotiations,” said a member of the Council.(Writing by Daniel Magnowski; Editing by David Lewis). * Gaza’s hobbled power plant makes millions despite turmoil * Profits largely paid as dividends to investors * EU wouldn’t pay plant directly, citing lopsided terms By Adam Entous GAZA, April 23 (Reuters) – Running a power plant in Gaza might sound like a losing venture but, thanks to payments from the cash-strapped Palestinian government, its owners are making profits and promise another year of “unstoppable growth”. While Gaza’s 1.5 million residents, blockaded by Israel, face electricity shortages, the Palestine Electric Co.’s (PEC) PEC.PL profits were $6.3 million in 2008, up from $4.4 million in 2007 Profits are largely distributed in tax-free dividends. The gains came even though the plant has been operating at less than half capacity due to the embargo that chokes fuel and spare parts, and past bombings by Israel. Critics decry what they call a lopsided deal that guarantees the PEC a fixed annual fee from the Palestinian Authority, which is bankrolled with aid from Western governments. Shareholders say the 20-year contract, which began in 1999 when the late Yasser Arafat was president, is fair and that dividends are a reward for investing in a high-risk environment.

“When people are investing, they should get a return,” said Walid Salman, the PEC’s executive managing director. Salman said the firm also invested in the people of Gaza, providing free water for schools, hospitals and refugee camps. Past efforts by West Bank-based Prime Minister Salam Fayyad to reopen the PEC’s contract stalled. Many large PEC shareholders play a powerful role in the Palestinian economy and are close to Arafat’s successor Mahmoud Abbas, officials say. Opponents of reopening the contract say it would undercut the PA’s standing at a time when the United States, the European Union are trying to promote large-scale foreign investment.