CNN DESTROYS Fox News Over Report Libya Used Reporters As Human Shield
Wow.  You almost never see journalists trashing each other like this in public.  Even among competing news organizations.  Especially in foreign war zones.
But that's what happened today during CNN's live Libya coverage.
Earlier today Fox News reported that Muammar Qaddafi's forces had foiled a British attack on one of the Colonel's compounds by bringing CNN and Reuters journalists to the site.
Today on Wolf Blitzer CNN reporter Nic Roberts, who is in Libya, pushed back on the claims...hard.
" This is outrageous and absolutely hypocritical.  When you come to somewhere like Libya, you expect lies and deceit from the dictatorship here. You don't expect it from the other journalists..."
FUKUSHIMA: WHITE HAZE COMING OUT OF REACTORS #2 AND #3, WORK STALLED
Update 20:59: March 21: Some more distressing report out of Kyodo. White haze is seen coming from the plant, and work has stalled again. Both reactors #2 and #3 appear to be having problems.
 
THE LATEST: Radioactivity fears are growing, with evidence of contamination in milk, vegetables and fish. High quantities of radioactive cesium and iodine were detected in nearby seawater, according to Kyodo.
At least cooling operations are making some progress.
Concrete is being poured into the dangerous spent fuel rod pool at reactor #4. The Japanese government says power may be turned on soon. Work to restore power to #3 and #4 was temporarily halted when certain reactors began emitting black smoke. Seawater is being pumped into reactors #1 and #2.
 
[Read a detailed timeline below.]
13:04 ET: Radioactive cesium 24.8 times above the limit was found in nearby seawater, according to Kyoto. Radioactive iodine 126.7 times above the limit was detected.
TEPCO says it is too early to assess the impact on fishery products.
9:54 ET:   Police estimates put the quake death toll over 18,000.
A good map of power outages after the quake, from NASA. Power outages in red: 
 
Image: NASA
 
9:08: Concete is reportedly being poured into the very dicey spent fuel pool at reactor #4, with the hope of seling off the radiation permanently there.
8:37 ET: Smoke has stopped billowing from reactor #3.
: Some possible good news from reactor #4 -- home of the potentially dried out spent fuel rods. According to Reuters, the Japanese government says power will be back soon.
 
6:08 AM March 21 ET: Now there are reports of smoke from reactor #2.
4:20 AM March 21 ET: The general sense throughout Sunday has been that the corner is being turned. And that's still the sense, somewhat. However, the latest headlines from Kyodo are less encouraging. Smoke is " billowing" from reactor #3, and some workers have at least been (temporarily) been evacuated. However there other headlines about pumps working at the plant, which is obviously quite good news.
--------
SUNDAY: 9:36 ET March 20: A series of hopeful news announced by the Nuclear Industrial & Safety Agency (via VOA's Steve Herman).
Reactors 5 & 6 reached cold shutdown today. Pressure is under control at reactor 3, and there is no need for more radioactive venting at the moment. They are attaching a power line to reactor 4, and the fuel rods are being cooled by external water spray. Seawater is being pumped into reactors 1 and 2.
Deputy chief cabinet secretary Tetsuro Fukuyama said reactors 1-4 are " showing signs of improvement." He also said he would feed his kids spinach and water from the area -- and that they don't drink milk anyway, according to VOA.
As a show of faith, Prime Minister Kan will visit within 20 kilometers of the plant tomorrow, according to Kyoto.
LAST NIGHT: Japan Times: trace amounts of radiation detected in Tokyo tap water.
Update 20:20 ET: Some video has been released which has a great, on-the-ground look at the firefighting operation.
Update 17:43 ET: Power has been reconnected to reactor 6 and reactor 3 is being showered with water at all times, according to CNN.
Update 17:00 ET: TEPCO will have power reconnected to the other 5 reactors at Fukushima by Sunday, according to CNN.
Bloomberg, on the other hand, is reporting that only reactors 1 and 2 will be reconnected tomorrow, and that their cooling systems will be back online.
In either case, definitely good news.
Update 8:35AM ET: Milk and spinach with higher-than-normal radiation levels have been found near the plant (Kyodo). The radiation levels are not high enough to pose a risk to people.
Update Saturday, 8:28AM ET: Power cable connected to reactors 1 and 2. Engineers will try to restart pumps at these reactors on Sunday morning. There is no guarantee that the pumps still work (and given the number of explosions and fires at the plant, it wouldn't be surprising if they didn't).
 
Update 14:38: According to Reuters, electricity can now be supplied to the plant. Of course, we've heard this several times already. We shall see.
Update 10:43: The first radioactive particles have been found in the US, says AP.
Update 10:38: It's been an extremely quiet morning. The NYT reports on an increased exodus of foreigners in Japan. Airlines say flights out are booking up fast.
Update 7:38: There was just a good technical discussion of the crisis on NHK. One thing that's clear: simply plugging in everything won't solve the problem, because whatever pumps they plug into may be too severely damaged.
Singapore shares rose higher on short covering. The STI climbed 47.7pts (+1.6%) to end at 2,983.5. In the broader market, 1.2bn shares worth S$1.2bn changed hands, with gainers leading losers 384 to 115. Positive overnight finish on Wall Street, led by news of the biggest proposed merger of the year in U.S should lift the STI into positive territories at open.
Corporate News...
Regional Shipping. Though freight rates continued to decline last week, the longer-term fundamental outlook for 2012-13 remains robust, hence we maintain OVERWEIGHT on container shipping. In the local space, we have an OUTPERFORM call on NOL and a TP of S$2.65.
CWT has been granted full clearing status by both Chicago Mercantile Exchange and Chicago Board of Trade. We are pleasantly surprised by developments in its futures clearing business, which cements plans to become global commodities logistics player. Maintain OUTPERFORM, TP S$1.72.
K-REIT Asia is acquiring an additional four floors from Prudential Tower at S$125.1m. While we see positives in its strengthened control (92.8% strata ownership) on Prudential Tower, our positive view is slightly tempered by a higher acquisition price at S$2,430 psf (net of rental support), relative to comparable assets. Maintain NEUTRAL, higher TP S$1.52.
Mapletree Commercial REIT. Proposed IPO postponed according to Business Times.
SembMarine bagged a harsh environment jack-up rig (scheduled for delivery in 3Q2013) order from Seadrill worth US$450m, bringing YTD orders to S$1.0bn. There is still yard capacity for 2012 delivery for shallow water jack-up rigs and we expect more orders to catch-up. Stock is our preferred pick in O& M sector given its lag in orders YTD. Maintain OUTPERFORM, TP S$6.38.
Yongnam. With a healthy pipeline of projects for bidding and measures in place to manoeuvre cost challenges, we remain upbeat on YNH’s 2011 prospects. Maintain OUTPERFORM and target price of S$0.40. We like Yongnam for its healthy order book and undemanding valuations against peers.
Trades of the Day...
Fundamentally: China Flexible Packaging (CFLX SP S$0.12 CEASE COVERAGE) - 1Q11 results were poor with net profit forming just 1.3% of our full year forecast. We wonder if the current 81.3% discount to net asset value could prompt the major shareholders to ponder the delisting option.
Technically: - Wilmar International (WIL SP S$5.20, BUY) - Both its momentum indicators are showing bullish divergences. - Hong Leong Asia (HLA SP S$2.64, BUY) - Indicators forming a bullish divergence against price. - OSIM International (OSIM SP S$1.55, BUY) - Only aggressive traders should attempt to buy now.
• SembCorp Marine - Expect semi-subs to drive next wave of orders, benefiting SMM. Stocks should start the session higher on the back of overnight strength from US markets. As Wall Street had rallied on the same reason as Asia markets yesterday, that is an apparent easing in Japan’s nuclear crisis, we do not rule out following through gains in the morning to be met with some profit taking. Resistance in the current session should be the first down-side gap that we mentioned, at 3010- 3020. However, any pullback will be minor and we expect the 2970 level to hold.
SembCorp Marine has won a second CJ70 jack up contract from Seadrill worth US$450m. The Seadrill order brings SMM’s FY11 YTD order wins to S$0.9bn and raises its outstanding order book to S$5.4bn. We expect semi-subs to drive next wave of orders. This is positive for SMM, which has a global market share of 29% in semi-submersibles. Maintain Buy, S$6.63 TP provides 25% upside and supported by attractive dividend yield of 6.8%.
K-Reit Asia will buy four strata office floors in Prudential Tower for $125.1m, boosting its stake in the building to 92.8%. Post-acquisition, more than 90% of the trust's Singapore portfolio will be located in the prime areas of Raffles Place and Marina Bay. The acquisition will be funded entirely by debt and when completed, will increase K-Reit's aggregate leverage ratio marginally to about 39% from 37%. The deal will benefit K-reit in the long run but muted near term earnings impact. Maintain Hold, TP raised to $1.34 (Prev S$ 1.24).
Singapore telcos may save costs with potentially lower handset subsidies in 2011 due to (i) arrival of Android phones (requiring lower subsidies) and (ii) lower smart phone sales (after the initial frenzy in 2010). Singapore may also benefit from high purchasing power of its consumers who are able to buy tablets with 3G plans. We prefer telcos that will benefit from growth and may be re-rated with potentially higher dividends, eg SingTel. SingTel’s key concern is its over-exposure to regulatory risks in Asia and Africa, but its 11x FY12F (Mar-YE) PER is attractive given expected 6% yield, mid-single digit growth and proven execution.
One Finlayson Green, a freehold office block in Raffles Place, has been sold for $227m or about $2,520 psf. The building is being sold by Singapore-based Lucrum Capital, which paid $145m for the property last March, to a group of private investors registered under a British Virgin Islands vehicle. We think that price paid is slightly high compared to the $2300 psf paid for Capital Square (done yesterday) and the $2250 psf that NTUC Income paid forthe 49% stake of 16 Collyer Quay earlier this year given the smaller floor plate.
Mapletree Investments has postponed its planned commercial property trust, which was expected to raise about $1 bn. The property group had planned to lodge the prospectus for its Mapletree Commercial Trust (MCT) this week. But the initial public offering has now been delayed due to volatile markets caused by the earthquake and tsunami in Japan.
OKP Holdings has won a $4.2m contract from PUB for sewer extension works in various locations. Works are scheduled to commence on March 29 and targeted for completion in November next year. PCCW, the Hong Kong associate of Singapore-listed Pacific Century Regional Developments (PCRD), may spin off its telecommunications assets and list them under a business trust. It is talking to regulators on the issues related to the possible divestment. Think Environment has been awarded three new gold concessions in the area of Bougouni in South Mali, Africa. The three Bougouni concessions consolidate the company’s assets in South Mali and provide further affirmation of the company’s intent to be a major gold producer there.
US markets rallied as concerns eased about Japan’s nuclear crisis. Energy stocks gained as oil price rebounded near to near a 5-day high as airstrikes in Libya threatened to prolong a supply disruption. Meanwhile, February’s existing home sales fell 10% (MoM, sa) that continues to suggest a weak housing market. Our economist thinks the situation will not change until 2012 at the earliest. Inventory reduction suggests 2012 is a better bet for the sector than this year but recovery elsewhere in the economy is leading markets to price in Fed hikes starting in early-2012. If that puts upward pressure on longer term rates, as seems inevitable, it could be 2013 before the US housing starts to contribute to growth again.
  BRUSSELS, March 21 (Reuters) - European finance ministers are meeting on Monday to work out technical details of a " comprehensive" package of steps to address the euro zone debt crisis, aiming to have the package formally adopted by a European Union leaders' summit this Thursday and Friday.
  The outline of the package has been agreed in a series of meetings over the past couple of months.
 
  HIGHER EFFECTIVE LENDING CAPACITY FOR THE EFSF
  Euro zone leaders have agreed to increase the effective lending capacity of the European Financial Stability Facility, the zone's bailout fund, to its nominal value of 440 billion euros from the current effective capacity of around 250 billion. The effective capacity is now lower than the nominal one because of the need to retain the EFSF's triple-A credit rating.
 
  HOW WILL THE EFSF'S CAPACITY BE INCREASED?
  Euro zone finance ministers are tackling this on Monday. Boosting the EFSF's capacity may require states to raise their guarantees, forcing some governments to seek fresh approval from their parliaments, a problem in countries -- particularly Germany -- where public opinion is against bailouts. Chancellor Angela Merkel faces several tough regional elections in coming weeks. A euro zone source has said all euro zone countries are expected to increase their guarantees for the EFSF.
 
  EUROPEAN STABILITY MECHANISM
  This will replace the EFSF when that facility expires in mid-2013. Euro zone leaders have agreed its effective lending capacity will be 500 billion euros, provided by a mix of paid-in capital, callable capital and guarantees. Finance ministers are trying to agree on Monday the proportions in the mix and the timetable for putting it in place.
 
  LOWER INTEREST RATES ON EFSF, ESM LOANS
  Euro zone leaders have agreed that interest on new EFSF loans will be cut to " to better take into account debt sustainability of the recipient countries, while remaining above the funding costs of the facility, with an adequate mark-up for risk, and in line with the IMF pricing principles." The same principles will apply to rates to be charged by the ESM finance ministers will discuss this in detail on Monday.
  The EFSF now charges, for variable rate loans, interest equal to three-month Euribor plus 300 basis points for loans up to three years and Euribor plus 400 bps for longer loans. It also charges a one-off 50 bps fee -- well above International Monetary Fund lending rates. Ireland currently pays around 5.8 percent on its loans, which it says is punitive.
  EFSF, ESM TO BUY COUNTRIES' BONDS AT AUCTION
  Euro zone leaders have agreed that the EFSF will be able to buy troubled countries' bonds on the primary market -- that is, when they are auctioned by the sovereign.
  French finance minister Christine Lagarde said the reformed version of the EFSF, capable of buying bonds, would not be operational before this summer.
  Officials also stressed that buying on the primary market was to be in response to a crisis, and not a " preventive" measure. French Treasury chief Ramon Fernandez said the EFSF and ESM would not be in a position to intervene on the primary market without a country first calling for help, a plan being negotiated with the European Commission, the European Central Bank and the IMF, and emergency loans being extended to the country. He said the primary market option was only " a complement" which " is to be used in a very limited way" .
  Euro zone leaders have rejected an idea, backed by the European Central Bank, that the EFSF should buy bonds on the secondary market. The leaders did not agree on other proposals such as having countries buy back their own bonds with EFSF financing, or flexible credit lines modelled on facilities provided by the IMF.
 
  BETTER TERMS ON GREEK LOANS
  Euro zone leaders have agreed to extend the maturity of bailout loans to Greece to 7.5 years, doubling the repayment deadline. They also agreed to lower the interest on their bilateral loans to Greece by 100 basis points.
  Ireland, which also wanted lower loan costs, has not obtained a reduction on its bailout loan interest because it did not want to " constructively engage" in talks on coordination of a common corporate tax base. The issue is still open and Dublin will make its case again at the summit on Thursday and Friday.
 
  BANK STRESS TESTS
  Euro zone leaders have agreed that the level of private debt for banks, households and non-financial firms will be closely monitored in regular stress tests coordinated at the EU level.
  The EU is conducting a new round of bank stress tests, possibly with more transparency, to establish potential losses of banks under various scenarios and their recapitalisation needs results are expected to be released in June.
  Criteria for banks passing or failing the tests are yet to be set. Officials insist this year's tests will be much tougher than last year's, but some analysts doubt they will be tough enough they will not include assets held in lenders' bank books, allowing peripheral sovereign bonds classified as held until maturity to escape writedowns. Also, the European Banking Authority has said bank liquidity will not be a formal part of the tests, but analysts say liquidity is a crucial issue.
  Stress tests published last July initially reassured markets but the positive effect faded after Irish banks, which had done well in the tests, ran into serious trouble.
 
  PORTUGAL
  Yields on Portuguese 10-year government bonds hit euro zone record highs above 7.80 percent this month and many economists believe that shortly before or after the package is formally agreed on Thursday and Friday, the EU may extend a bailout to Portugal to address a big source of instability in the markets. But Portugal would have to request the bailout and the government in Lisbon is strongly against the idea.
  In an effort to avoid a bailout, Lisbon has presented new austerity steps which have been welcomed by euro zone leaders but criticised by Portugal's main opposition Social Democrats as rushed and inadequate. The opposition has refused to back the steps in parliament and Prime Minister Jose Socrates, heading a minority government, threatens to resign if they are not passed.
  A euro zone source said in January that were Lisbon to seek help, the aid plan could be 60-80 billion euros.
 
  COMPETITIVENESS PACT
  Euro zone leaders have agreed on a " competitiveness pact" which includes commitments to reforms to boost growth and employment and safeguard public finances. A key element is that euro zone countries will enshrine EU budget deficit and debt limits in national law -- effectively making it illegal to breach them. The limits are 3 percent of gross domestic product for budget deficits and 60 percent of GDP for public debt.
  As part of toughening the Stability and Growth Pact, the leaders agreed that countries with public debt exceeding 60 percent of GDP must reduce it annually by 1/20th of the amount above 60 percent. There is agreement to raise retirement ages in line with life expectancy, limit early retirement schemes and provide incentives for employment of workers over 55.
  To make economies more competitive, leaders agreed to give particular attention to ensuring that wages grow in line with productivity, including a review of wage indexation mechanisms.
 
  STRENGTHENING EU BUDGET RULES AND SURVEILLANCE
  Finance ministers will discuss EC proposals on how to add more teeth to the existing EU budget rules, the Stability and Growth Pact.
  The proposals, now being debated by the European Parliament which will co-decide the outcome, include new sanctions for rule breakers. Interest bearing-deposits, non-interest bearing deposits and fines of 0.2 percent of GDP might be imposed on countries which do not reduce budget deficits to reach balance, which are put into an excessive deficit procedure (EDP), and which do not comply with recommendations issued under the EDP.
  Another proposal is for a voting mechanism that assumes sanctions are imposed once the Commission proposes them, unless a majority of countries stops them. France and Germany watered this down last October by introducing two intermediate votes before the sanctions stage.
  Euro zone leaders have agreed that finance ministers of each country " are expected to, as a rule, follow the recommendations of the Commission or explain its position in writing" .
  Other proposals include setting up an excessive imbalances procedure for countries based on a scoreboard of criteria, and levying an annual fine of 0.1 pct of GDP on a country with such imbalances if it fails to address them. (Editing by Andrew Torchia)
NEW YORK, March 21 (Reuters) - The Nasdaq rose more than 2 percent on Monday, with semiconductor shares bouncing back after recent losses.
  An index of semiconductors was up 2.3 percent on the day. The index fell about 9 percent over the last two weeks.
  The Dow Jones industrial average was up 196.96 points, or 1.66 percent, at 12,055.48. The Standard & Poor's 500 Index was up 20.11 points, or 1.57 percent, at 1,299.31. The Nasdaq Composite Index was up 53.95 points, or 2.04 percent, at 2,697.62.
  (Reporting by Caroline Valetkevitch Editing by Padraic Cassidy)
The New York Stock Exchange seen with a Wall street sign in front
* AT& T to buy T-Mobile USA from Deutsche Telekom
  * Buffett: Japan quake is " buying opportunity" in stocks
  * Stocks up: Dow 1.5 pct, S& P 1.3 pct, Nasdaq 1.6 pct (Updates to early morning trade)
  By Angela Moon
  NEW YORK, March 21 (Reuters) - Wall Street rose sharply on Monday, led by telecom stocks after AT& T said it would buy T-Mobile from Deutsche Telekom, a deal that would create the largest wireless operator in the United States.
  Glimmers of hope about Japan's nuclear crisis and investor Warren Buffett's comments about a buying opportunity for Japanese stocks also boosted investor sentiment.
  A& T Inc said it would pay $39 billion for Deutsche Telekom AG's T-Mobile USA, sparking a sharp rally in European telecom shares.
  AT& T shares were up 2.5 percent to $28.64. In European market, Deutsche Telecom rose 13.1 percent and Vodafone Plc was up 3.9 percent.
  But competitor Sprint Nextel Corp shares were down 14.1 percent at $4.33.
  " The fact that companies are confident to do big deals gets people thinking that the environment may not be too bad, that there is liquidity out there in the market. It opens doors for other, larger M& A deals," said John Canally, investment strategist at LPL Financial in Boston.
  The Dow Jones industrial average was up 174.03 points, or 1.47 percent, at 12,032.55. The Standard & Poor's 500 Index was up 17.00 points, or 1.33 percent, at 1,296.20. The Nasdaq Composite Index was up 41.12 points, or 1.56 percent, at 2,684.79.
  Investors kept a close eye on events in Japan, where power cables have been connected to all six nuclear reactors at the Fukushima Daiichi power plant damaged by an earthquake and tsunami. The World Health Organization said radiation found in food from the area near the damaged nuclear plant was a " serious situation."
  The market also closely followed Libya, where Western powers launched a second wave of air strikes early Monday after halting the advance of Muammar Gaddafi's forces on Benghazi and targeting air defenses in the country.
  There was little reaction to data showing sales of previously owned U.S. homes fell sharply in February as prices fell to their lowest level in nearly nine years. (Editing by Padraic Cassidy)
* Progress at Japan nuclear plants lifts risk appetite
  * Deutsche Telekom soars on proposed deal with AT& T
  * Oil up after Western forces strike Libya again
  * Euro touches $1.42 on rate hike expectations (Updates prices, changes quotes)
  By Rodrigo Campos
  NEW YORK, March 21 (Reuters) - Stocks rose across the globe on Monday as risk appetite returned following progress in resolving Japan's nuclear crisis while the yen slid on speculation of more central bank intervention.
  Oil prices rose but were off the session's highs after Western forces launched a second wave of air strikes on Libya.
  U.S. stocks rose more than 1.5 percent as investors welcomed AT& T's proposal to buy T-Mobile USA from Deutsche Telekom for $39 billion, which would be the world's biggest deal this year and Germany's biggest in a decade.
  Deutsche Telekom AG shares soared more than 13 percent.
  " The fact that companies are confident to do big deals gets people thinking that the environment may not be too bad, that there is liquidity out there in the market. It opens doors for other, larger M& A deals," said John Canally, investment strategist at LPL Financial in Boston.
  The gains in U.S. stocks follow a second straight week of losses over concern about unrest in oil-producing northern Africa and the Middle East. Japan's earthquake and tsunami and the ensuing nuclear crisis deepened investors' concerns about the global economy's ability to continue its recovery.
  " More incrementally positive news from Japan in terms of the nuclear situation is helping the market," Canally said.
  The pan-European FTSEurofirst 300 index of top shares was up 1.6 percent at 1455 GMT and the MSCI world share index jumped 1.4 percent, its largest daily gain in seven weeks.
  The Dow Jones industrial average gained 188.87 points, or 1.59 percent, to 12,047.39. The Standard & Poor's 500 Index climbed 19.06 points, or 1.49 percent, to 1,298.26. The Nasdaq Composite Index rose 50.14 points, or 1.90 percent, to 2,693.81.
  Engineers rigged power cables to all six reactors at Japan's Fukushima complex and started a water pump at one of them to reverse the overheating that has triggered the world's worst nuclear crisis in 25 years.
  Japan's markets were closed for a holiday on Monday but the MSCI index of Asian stocks outside of Japan rose 1.4 percent.
  The yen added to losses, with speculators wary of more coordinated action by the Group of Seven countries. The dollar rose 0.5 percent for the day to 81.13 yen, after joint G7 intervention last week hoisted the greenback nearly 4 percent versus the Japanese currency.
  The G7 acted after the yen jumped to a post-World War Two record high of 76.25 yen to the dollar last Thursday. More is expected to come if it climbs again.
  The euro briefly rose above $1.42 against the U.S. dollar for the first time since November before trading near break-even, as markets braced for a euro zone interest rate hike as soon as next month.
  Brent crude for May was up more than $1 at $115 a barrel by 1450 GMT after the U.N.-mandated attacks on Libya aimed at protecting civilians caught up in a revolt against Muammar Gaddafi.quarter and the social unrest in North Africa and the oil-producing Gulf provide enough uncertainty to keep prices buoyed.
  " The key is really how Saudi (Arabia) and Iran play out. Cool heads need to prevail. It's contained at the moment, but if things worsen, you see a Mideast premium very quickly," said Jonathan Barratt, managing director of Commodity Broking Services.
  U.S. Treasuries prices extended losses after the Treasury said it will begin to sell $142 billion of its agency-guaranteed mortgage-backed securities.
  Benchmark 10-year notes were last down 21/32 in price to yield 3.34 percent, up from 3.28 percent late on Friday. (Additional reporting by Wanfeng Zhou, Angela Moon, Karen Brettell, Ian Chua, Joanne Frearson, Blaise Robinson, Alejandro Barbajosa and Anirban Nag Editing by Kenneth Barry)
let's us hope that this war end soon, it a war of no head and tail. libya president fighting the rebels and western interfere. who is right and who is wrong? I think only god has the answer...
i said before:
oil + mid east blood = report positive
oil - mid east blood = report negative
Even the campaign of renewable energy also dun helps much of us too depending on oil.
krisluke ( Date: 21-Mar-2011 22:49) Posted:
sigh, the world " lowest" paid president and had to thinky think and worky work  so hard. afterall, is still ang mo helping the ang mios. think about mid east war, it's a thingy  just  unavoidable.
or, a disruption to global growth? which is better, war or halt to gobal growth...
, after reading  my news postings, i think sph should hate me a lot. WHY, becos nobody will buy newspaper as the news in sph papers is FOC due to the greatest and proudest invention of mankind,   THE INTERNET.
* Brent touches high of $116.22 U.S. crude tops $103
  * Supply disruption worries mount as Mideast unrest grows
  * U.S. existing home sales for Feb fall 9.6 percent
 
  (Updates prices, adds quote, restacks)
  By Jessica Donati
  LONDON, March 21 (Reuters) - Oil prices rose by over $2 a barrel on Monday as a wave of U.N.-mandated airstrikes on Libya and proliferating unrest in the Middle East fanned concerns about oil supply from the region.
  Brent crude for May was up $1.49 at $115.42 a barrel by 1406 GMT after earlier trading over $116, while U.S. crude for April gained $1.60 at $102.67 a barrel.
  " Oil prices are still significantly higher... Concern isn't going to go away any time soon and little pullbacks are inevitable," said Michael Hewson, a market analyst at CMC Markets.
  Unrest flared in even the most authoritarian regimes in the Middle East over the weekend. In Syria, crowds set fire to ruling Baath Party headquarters in an uprising that has resulted in at least four deaths over the past week.
  In Yemen, a powerful general expressed support on Monday for protesters calling for an end to the president's 32-year rule. The killing of dozens of anti-government demonstrators prompted the country's ambassador to the United Nations to resign in protest over the weekend
  The 32nd biggest oil exporter lies at the mouth of a key shipping route through which 3.2 million barrels-per-day is estimated to have passed in 2009.
  Tension also increased between Bahrain and Iran as tit-for-tat diplomatic expulsions followed Tehran's anger at last week's crackdown on Shi'ites. On Monday, Bahrain's king announced a foreign plot had been foiled and thanked fellow Sunni-ruled neighbours, notably Saudi Arabia, for their support.
  " The key is really how Saudi (Arabia) and Iran play out. Cool heads need to prevail. It's contained at the moment, but if things worsen, you see a Mideast premium very quickly," said Jonathan Barratt, managing director of Commodity Broking Services.
  Saudi Arabia, a U.S. ally, has not seen the kind of mass uprisings that have rocked the Arab world this year, but dissent has built up as unrest has taken root in neighbouring Yemen, Bahrain and Oman.
  Dozens of Saudi men gathered outside the Interior Ministry in the capital Riyadh on Sunday to demand the release of jailed relatives amid a heavy police presence. Saudis have been warned protests will not be tolerated because they violate the Koran's teachings.
 
  PROTRACTED WAR
  Headlines from Japan's troubled nuclear complex revived worries about the country's economy as unexplained smoke from two reactors indicated the crisis was far from over, balancing against bullish news from the Middle East.
  " The market is very headline driven and we don't know what the next headline from Libya or Japan will be," said Olivier Jakob, an oil analyst at Petromatrix.
  Libya's oil output has fallen to less than a quarter of the previous 1.6 million barrels per day (bpd), virtually paralysing shipments from what used to be the world's 12th-largest crude exporter.
  Libyan rebels encouraged foreign air strikes to continue, saying they aimed to capture Tripoli.
  " The main question for the oil markets is how long production outage could last ... We could end up by having two countries or a protracted civil war. We assume Libyan oil exports will be zero for the next six months," said Mike Wittner, Head of Commodities Research at Societe Generale.
  Gaddafi's control of oil infrastructure in the long term could mean deals with foreign oil companies are reshaped in favour of countries not participating in the attacks.
  Libya is considering offering oil block contracts directly to China, India and other nations it sees as friends, Libya's top oil official said on Saturday, instead of an open bidding processes.
  China, India, Russia, Brazil and Germany were the five nations that abstained in last week's U.N. vote to authorise the use of force against Gaddafi. The other 10 members of the Security Council voted in favour. (Additional reporting by Alejandro Barbajosa in Singapore editing by William Hardy)
  WASHINGTON, March 21 (Reuters) - Sales of previously owned U.S. homes fell unexpectedly sharply in February and prices touched their lowest level in nearly nine years, implying a housing market recovery was still a long off.
  The National Association of Realtors said on Monday sales fell 9.6 percent month over month to an annual rate of 4.88 million units, snapping three straight months of gains. The percentage decline was the largest since July.
  Economists polled by Reuters had expected February sales to fall 4.0 percent to a 5.15 million-unit pace from the previously reported 5.36 million unit rate in January, which was revised slightly up to 5.40 million.
  The median home price dropped 5.2 percent in February from a year earlier to $156,100, the lowest since April 2002.
  " If the price declines persist, even with the job market recovery, that could hamper recovery in the housing market," said NAR chief economist Lawrence Yun.
  Compared with February last year, sales were down 2.8 percent.
  Oversupply of homes and a relentless wave of foreclosures are pressuring prices, holding back recovery in the sector, whose collapse helped to tip the U.S. economy into its worst recession since the 1930s.
  Foreclosures and short sales, which typically occur below market value, accounted for 39 percent of transactions in February, up from 37 percent the prior month. All-cash purchases made up a record 33 percent of transactions in February.
  Sales last month fell across the board, with multifamily dwellings declining 10 percent and single-family home units dropping 10.0 percent.
  At February's sales pace, the supply of existing homes on the market rose to 8.6 months' worth from 7.5 in January. A supply of between six and seven months is generally considered ideal, with higher readings pointing to lower house prices. (Reporting by Lucia Mutikani Editing by James Dalgleish)
* Says contract amended in 2009 with terms for any change
  * Egypt says talks under way to adjust gas contracts
  * Supply had been halted due to explosion during protests
  * Says Israel pays more than Jordan, Syria and Lebanon
 
  By Steven Scheer
  JERUSALEM, March 21 (Reuters) - East Mediterranean Gas (EMG), which supplies Egyptian natural gas to Israel and other Middle East countries, will not agree to amend the terms of its contract with Israel, an EMG stakeholder said on Monday.
  Egyptian Petroleum Minister Abdullah Ghorab on Sunday was quoted by the MENA news agency saying talks were under way to adjust gas contracts -- especially Israel -- to receive a higher price. He said media campaigns and public disapproval of gas exports were sufficient basis for negotiating greater benefits to Egypt. [ID:nLDE72J0G7
  But Nimrod Novik, senior vice president of Merhav, a founding partner of EMG, told Reuters: " Our contract was amended in 2009 and it has built into it the precise mechanism, schedule, criteria and procedure for price negotiations and they do not exist at the moment."
  " We expect both sides to respect ... this contract."
  Merhav is owned by Israeli businessman Yosef Maiman, who also holds 60 percent of Ampal-American Israel Corp. Merhav, Ampal and Maiman own 25 percent of EMG.
  Egyptian businessman Hussain Salem, Egypt Natural Gas Co, Thailand's PTT and American businessman Sam Zell also own stakes in EMG.
  Novik said he could not elaborate as to the terms of price renegotiation. He also declined to say exactly how much Israel pays for Egyptian gas but that it was above $3 per million BTUs.
  The Egyptian press have accused the EMG consortium, which supplies 45 percent of the gas needs of Israel's electric utility, of selling its gas to Israel at below market prices.
  " Reports in the Egyptian press have been erroneous for years," Novik said. " When they quoted the original price was 75 cents it was more than double and when they published it is $1.50, in reality it is more than double."
  Israel signed a deal to export natural gas from Egypt a decade ago for as much as 30 years and the contract was amended in 2009 to extract a higher price.
  " What EMG (Israel) pays for Egyptian gas is higher than for other Egyptian gas exports -- whether it is through a pipeline to Jordan, Syria and Lebanon or through LNG (liquefied natural gas)," Novik said.
 
  ISRAELI GAS
  Gas supply from Egypt resumed last week after the pipeline carrying it across the Sinai Peninsula was damaged in an explosion and fire on Feb. 5.
  Novik said supplies had reached " contractual quantities."
  Israel gets most of its gas needs from the Yam Thetis group, which found natural gas off the country's Mediterranean coast. Newly discovered gas offshore at the Tamar site, slated to come online in a few years, and the larger Leviathan prospect have some believing Israel should stop Egyptian gas imports.
  Egypt and Israel signed a peace treaty in 1979 but relations between the two sides have been cool for most of that time.
  " The Israeli energy market needs more than one source for supply reliability," Novik said.
  He pointed to the shutdown of the Egypt pipeline and many occasions where Yam Thetis was forced to close down and EMG stepped in to supply Yam Thetis' customers.
  Novik also rejected the notion that disruptions from Egypt were more likely due to attacks on the pipeline. He said it was also true about Israeli sites.
  " Any energy installation is vulnerable to terror attacks," Novik said, adding EMG had bolstered security.
  He said EMG expected to continue signing deals with Israeli customers, adding natural gas use was growing rapidly in Israel.
  The Israeli market absorbed 5 billion cubic meters of natural gas in 2010 and this is expected to triple in the next five years, Novik said.
  " New projects are announced daily," he said. " It's not just electricity. Industry is also converting to cheaper and cleaner natural gas." (Editing by James Jukwey)
Ten days later, first rebuilding begins in Japan's disaster zone
By Jon Herskovitz
  RIKUZENTAKATA, Japan (Reuters) - Temporary housing is taking shape next to an evacuation centre in this northern Japanese town, among the first places where rebuilding from the devastating earthquake and tsunami 10 days ago has begun.
  Authorities aim to start moving families out of the cramped shelters where they have lived on mats -- separated from neighbours by only cardboard -- and into the houses by the end of the month.
  " They have no privacy. They can't even stretch their legs at night when they sleep because they might hit another person," said Tstutomu Nakai, who helps run the evacuation centre in the gymnasium of a junior high school in Rikuzentakata.
  " We have around 1,000 people sheltering here in the school and I think that they will be the first to get housing. We hope to allow people to move into these temporary shelters just as soon as they are completed," Nakai said.
  Steel structures, with walls and wood floors, have been erected in the parking lot of the school, which is on a hilltop overlooking the debris and devastated remains of the town.
  Coastal Rikuzentakata was a town of 23,000, mostly elderly people. About 740 were killed in the earthquake and tsunami. More than 1,700 remain missing.
  Mud-strewn mounds, mostly wood planks, glass and stones from houses where the town once stood, stretch for miles. Firemen are still slowly sifting through the debris, looking for bodies.
  " The town for about 70 percent of the residents just disappeared," said Katsutoshi Tomiyama, 69, whose three-month-old jazz bar and coffee shop was destroyed.
  Almost 15,000 homes across northeastern Japan have been destroyed by the disaster, and more than 100,000 damaged.
  In Rikuzentakata, few of its hundreds of buildings still stand, mangled and twisted. Residents and workers tempt fate by entering the structures looking for something to salvage.
  Nurse Miho Itoh used ropes to pull herself up to the second floor of the shell of the clinic where she used to work.
  " The doctor went missing when he was helping patients escape," she said, holding his stethoscope that she found in the wreckage.
sigh, the world " lowest" paid president and had to thinky think and worky work  so hard. afterall, is still ang mo helping the ang mios. think about mid east war, it's a thingy  just  unavoidable.
or, a disruption to global growth? which is better, war or halt to gobal growth...
CITI: The Japanese Supply Disruption Problem Is " More Serious" Than We Originally Thought
The Japanese supply chain problems as a result of the earthquake, tsunami, and reactor crisis are " more serious" than Citi analysts originally imagined, according to a new note from the firm.
The problem is that a decline in Japanese exports will have knock-on effects throughout Asia, a producers are in need of items mainly manufactured in Japan.
From Citi analyst Johanna Chua (emphasis ours):
Reduction of JP’s productive capacity may cause higher prices of inputs/final goods of items where JP is a significant supplier until production can be ameliorated. On the growth front, we could see production of goods reliant on Japanese inputs without sufficient inventories temporarily stall, such as electronics (our analysts believe issues in the technology supply chain could last around 1-3 months), autos, and shipbuilding (to the extent these rely on Japanese steel and auto parts). As JP’s exports of these products will also likely suffer, Asian countries that are also net exporters of similar products would have offsetting benefits from both gains in pricing and market share.
A big loser here, as we mentioned before, is Taiwan. But Thailand is not far behind, as it relies on auto related imports for its domestic production sector.
From Johanna Chua:
Thailand looks relatively more reliant on Japanese imports of key inputs such as electronics (30% of total imports), iron & steel (38%), vehicle parts (63%), and to a lesser extent, chemicals (24%).
Hahaha. This chart looks exactly like china gaoxian now.
krisluke ( Date: 21-Mar-2011 22:22) Posted:
Robert Prechter: These 6 Trends Are About To Reverse
The U.S. market has reached consensus on six key issues and that means the trend may be about to reverse, according to The Elliott Wave Theorist Robert Prechter.
Prechter explains this trend reversal through events in the 1980's. Here, investors and economists believed there was no way interest rates would go down, with the Wall Street Journal writing it would take a " miracle" for a decline in 1984. And yet, it happened.
 
Image: The Elliott Wave Theorist
From Prechter:
 
Any individual can be wrong about markets. In the past when I have been wrong I realized in retrospect that either I was a member of a herd or I bet too early against one. But the fact remains that when representatives across an entire profession of exogenous-cause thinkers agree on the future trend of a market, it’s a signal.
The lessons are: (1) Any passionate consensus among economists is a terrific market timing signal, because it means that there is no one left to convince and therefore the market in question should have extreme difficulty continuing in the predicted direction and (2) an alert analyst can learn to recognize these times and use them to advantage.
Prechter argues there are several themes out there right now that investors, economists, and markets all believe to be true just like they did with interest rates in the 1980s.
The dollar - everyone is bearish.
Interest rates - everyone thinks they're going to rise.
The stock market - everyone is bullish but corporate insiders.
Inflation expectations - everyone thinks it is going to go higher.
Economy - everyone is confident in 2011.
Oil - everyone thinks it is heading higher.
It may be time for investors to turn on these trends, and bet the opposite way, according to Prechter.
“Vote for a Republican,” my grandfather used to say, “and you get a depression. Vote for a Democrat and you get a war.”  That seemed like a pretty good rule of thumb in the twentieth century: Warren Harding and Herbert Hoover gave us depressions, and Woodrow Wilson, Franklin Roosevelt, Harry Truman and Jack Kennedy (with an assist from Lyndon Johnson) all gave us wars.
Then came the twenty-first century and all bets were off. George W. Bush gave us two wars and a depression President Obama has already presided over two slack economic years and now seems bent on giving us his first war.
It’s not that the President suffered from a war shortage, with two inherited conflicts (both of which I supported and continue to believe the US must fight) from his predecessor. He escalated the one in Afghanistan and has followed George W. Bush’s proposed timetable in Iraq. Now he has committed US forces to a third conflict in the Middle East in ways that eerily echo the last administration.
This President is, to be sure, doing what he can to distinguish his policies from a Bush administration he vociferously opposed when running for office.  With open support from the Arab League, a vote from the Security Council and the support of France (though not of Germany, which also abstained at the Security Council), President Obama has a broader international mandate for action in Libya than President Bush had for Iraq.  And President Obama understands one thing that President Bush never quite did: that American power works best when others perceive us as reluctant rather than over-eager to act.  Getting the French and the British to take the lead won’t legitimize the military campaign in the eyes of Islamic militants, but letting others step out in front sometimes in not a bad thing for an American president to do.
Yet when it comes right down to it, this President’s approach is not all that different from the last administration’s on matters of peace and war.  Military assisted regime change as a solution to humanitarian abuses perpetrated by a government with a history of terrorism linked to a firm belief that more democracy in the Arab world will lead to a more stable region: this is much more Paul Wolfowitz than Colin Powell.
A certain pattern seems to be emerging in this President’s foreign policy process.  On the one hand, he is instinctively drawn to the cool logic of the Jeffersonian realists who believe that the safest and wisest course for the United States is to draw in our horns and make peace with decline.  If he could design the world from scratch, he would build one where the United States had a much smaller military budget and a much shorter list of strategic international interests.  No drone strikes, no confrontations with Iran, no troops in combat overseas and no prisoners at Guantanamo: just the peaceful construction of high speed rail, the implementation of the health legislation and a focus on education.
But when it is time to choose, this President consistently chooses a more active course.  He would rather not think about Iraq, but if he must, he will stick to George W. Bush’s withdrawal plans.  He would rather not have a war in Afghanistan, but since he has one he will escalate the drone strikes and step up troop levels.  He would very much have preferred the Libyan situation to resolve itself without American participation, but forced to choose between action and doing nothing, he acts.  He listens to the realists and makes them feel important — but at least since their ideas on how to handle Israel went so badly wrong, he doesn’t seem to take their advice.
I hope the Iranians are paying close attention, by the way.  This President is much more likely to pull the trigger than they may think.
If the realists and this President are slowly drifting apart, the President is getting important support from some of the same people who supported George Bush in Iraq until the going got tough.  Some use the term “chicken hawk” to describe hawks who haven’t served in the military the real chicken hawks in my view are the many politicians who are all for the use of force before the shooting starts but turn tail and seek cover once the war turns out to be hard.  Senator John Kerry is a classic example he has plenty of colleagues in the Senate and beyond who voted for both the Iraq and Afghan wars while they were popular, and then blamed Bush for everything that went wrong when life got hard.
These reminted humanitarian hawks will drop Obama and his Libyan war in a heartbeat should things go wrong.  They are loud but not serious about war they are too callow about the risks of war before we get in, and too callow and glib about the cost of defeat once the war starts.  They feel more acutely than they think they feel humanitarian anguish when dictators slaughter their people and advocate unnecessary war.  Pretty soon they will feel the horror, the waste and the political unpopularity of war and conclude — as so many did in Iraq — that no price is too high to pay to bring the war to an end, however inglorious and chaotic.
 
 
President Obama beware:  If US troops are fighting in Libya in 2012 the ‘humanitarian hawks’ will likely be out campaigning against you in New Hampshire.   It’s emphatically not a good sign that these weak-winged humanitarian hawks seem to have a lot of weight in Obama’s councils.  There are no weaker pillars on which a wartime president can lean, no less trustworthy allies when the going gets tough.
Right now in the heat of righteous indignation, the humanitarian hawks are overlooking the contradictions in the President’s approach.  Yemen and Bahrain are up to some nasty tricks too why aren’t we planning to bomb them?  These days our noble humanitarian hawks wave their hands in contemptuous dismissals of such parallels if the Libyan crisis morph into a nasty war they will use these comparisons to attack the policies which they now urge on the White House.  Ask the members of the Johnson and Bush administrations who went through exactly this kind of critique from former proponents of their wars.
But all that said, President Obama has climbed out on a limb and it is not easy to see how he can avoid a choice between a humiliating climb down or an open ended commitment to what could quickly become our third simultaneous Middle Eastern war.  He has talked himself into a corner and we must hope he can climb out of it as deftly as possible.
Part of the problem is timing by waiting for the cumbersome wheels of international diplomacy to turn, President Obama gained important international legitimacy but lost valuable time.  A week ago, momentum was with the rebels and the declaration of a no-fly zone might have broken the will of Gaddafi insiders to defend the regime.  (In fairness to the President, one should observe again that what much of the world saw as the excessive eagerness of the Bush administration to go to war has created a real foreign policy problem for his successor.  Like it or not, the United States must try harder to convince world opinion that we aren’t thirsting for new wars in the Muslim world.)
Another problem is the gap between the UN resolution (which calls on Gaddafi to refrain from massacring the people of Libya) and President Obama’s stated objective of, well, regime change in Libya.  “Gaddafi must go,” the President has repeatedly said.
Any outcome that leaves Gaddafi in office will be a defeat for the United States, but it is far from clear that the establishment of no-fly and no-drive zones plus air strikes will bring Gaddafi down.  What does Obama do if the no-fly and no-drive zones and the airstrikes don’t work?
More, the political objectives of the UN resolution are unclear.  The resolution aims to ban Gaddafi attacks on rebels, but doesn’t call for removing him from office.  Literally interpreted, this amounts to a call for an informal partition of Libya into pro- and anti-Gaddafi portions with foreign air forces keeping the peace between them.  This hardly sounds like a recipe for long term stability — or even for resolving the crisis if Gaddafi refuses to stand down.
If there is a guiding strategic vision at work here (a big if, given the number of countries involved in designing and pushing the resolution), the plan seems to be for air strikes to stop Gaddafi’s progress on the ground and to degrade the morale of regime loyalists in the hope that the regime would crumble away.  Should that fail the backup appears to be that over the somewhat longer term massive military and political aid to the rebels would help them take over the whole country without direct participation of foreign ground troops, even as tightening sanctions reduced Gaddafi’s access to fuel, weapons and bribe money.  I would not call this a bad plan — and it might be the best that could be devised under the circumstances — but it is, on the face of it, filled with risk.
Those of us outside the government have no way of knowing what intelligence the President and his top aides used to shape their final decision.  Clearly the administration took its time and aired the question thoroughly.  As in the (Bill) Clinton years, an activist Secretary of State pushed a reluctant Pentagon towards war.  When that happens (as opposed to when a gung-ho military drags the civilians toward war) one can usually be sure that the arguments against intervention have been thoroughly vetted.
At this point, we must live in hope:  hope that the President and his team know what they are doing, and hope that an international show of force will bring a better future to Libya (which means a future with no Gaddafis in it) without further bloodshed.
Alternatively, if the Libyan rebels with help from Egypt and NATO can arm and organize themselves well enough to take advantage of Gaddafi’s immobility and isolation to defeat the regime on the field of battle, that would also in the long run likely be a better outcome for Libya than the bloody restoration of the Great Loon.
Let us hope and pray that all goes well and that the Gaddafi and his sons fall before more blood is shed.  But make no mistake about it: President Obama is taking big risks here and if things go wrong there will be few Republicans or Democrats willing to help him.