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Fed official warns of higher interest bill for Uncle Sam

2012-02-25T22:48:00.000+08:00

NEW YORK (CNNMoney) -- The Federal Reserve takes a lot of heat from critics for keeping interest rates low. But there's an upside that most people overlook: Low interest rates save the government money.

Speaking at a conference on monetary policy Friday, New York Fed President William Dudley stressed how lower rates reduce the interest that the federal government pays on the national debt.

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In addition, the Fed's policies have also led to larger payoffs for the U.S. government. By making huge asset purchases over the last couple of years in order to keep rates down, the Fed is also earning interest on those investments. That money gets returned to the Treasury. Last year, the Fed sent about $77 billion to the Treasury, more than double what it was earning before the financial crisis.

"The interest bill on the growing federal debt burden has been temporarily restrained by the low level of interest rates and high level of remittances from the Federal Reserve to the Treasury," Dudley said at the U.S. Monetary Policy Forum presented by the University of Chicago Booth School of Business on Friday.

The event is essentially a meeting of minds between Federal Reserve officials, members of foreign central banks and economists from some of the world's largest banks and top universities.

Dudley pointed out that the Fed determines monetary policy based on economic activity -- not the government's debt bill.
Why the Federal Reserve can't fix housing

That said, it would behoove fiscal policymakers (meaning Congress and the president) to think ahead to rosier days, when eventually, tighter monetary policy will raise the government's interest bill.

That's exactly why lawmakers need to come up with a credible plan for the nation's debt now, he said.

"The United States faces substantial fiscal challenges in the years ahead," Dudley said in prepared remarks. "In one important respect -- net interest expense -- these challenges may be more daunting that fully appreciated currently."

Dudley also recommended the U.S. focus on increasing exports -- one of Obama's chief goals -- as a means of rebalancing its trade gap. When imports grow faster than exports, it subtracts from economic growth.

He also urged countries that have large trade surpluses -- like China -- to "reorient their economies over time toward increasing domestic demand." To top of page
First Published: February 24, 2012: 2:30 PM ET

New York Fed President William Dudley

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2012-02-22T04:24:00.000+08:00

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2012-02-17T18:18:00.001+08:00

Jobless Claims in U.S. Fall to Four-Year Low

2012-02-17T00:26:00.000+08:00

Job seekers at a federal government job fair at the National Building Museum in Washington. Photographer: Xinhua/ZUMApress.com

Claims for jobless benefits unexpectedly dropped last week to the lowest level in four years, showing the U.S. job market is on the mend.

Applications (INJCJC) for unemployment insurance payments decreased 13,000 in the week ended Feb. 11 to 348,000, less than the lowest forecast of economists surveyed by Bloomberg News and the fewest since March 2008, Labor Department figures showed today. The median survey estimate projected an increase to 365,000.

The slowdown in dismissals coincides with a pickup in hiring and a drop in unemployment that’s helping repair a labor market still recovering from the 18-month recession that ended in June 2009. More job gains are needed to boost household spending, the biggest part of the world’s largest economy.

“It’s clearly reflecting a rapidly improving labor market, signaling further declines in the jobless rate,” said Sal Guatieri, a senior economist at BMO Capital Markets in Toronto. “It’s good news for consumers, meaning stronger income growth and likely rising confidence that will support spending.”

Estimates for first-time claims ranged from 350,000 to 380,000 in the Bloomberg survey of 45 economists. The Labor Department revised the prior week’s reading up to 361,000 from an initially reported 358,000.

Wholesale prices rose less than forecast in January as food and energy costs dropped, a sign inflation pressures may remain subdued, another report from the Labor Department showed today.
Wholesale Prices

The producer price index rose 0.1 percent following a 0.1 percent decrease the prior month. Economists projected a 0.4 percent gain, according to the survey median. The core measure excluding volatile food and energy rose 0.4 percent, more than projected, led by a surge in drug prices.

The number of people continuing to collect jobless benefits dropped by 100,000 in the week ended Feb. 4 to 3.43 million, the fewest since August 2008. The continuing claims figure does not include the number of workers receiving extended benefits under federal programs.

Builders broke ground on more homes than forecast in January, helped by warmer weather and adding to signs the residential real-estate market is stabilizing, data from the Commerce Department also showed today.
More Starts

Starts rose 1.5 percent to a 699,000 annual rate from December’s 689,000 pace that was stronger than previously reported. The median estimate in a Bloomberg survey called for a rise to 675,000. Building permits, a proxy for future construction, also climbed.

Stock-index futures trimmed earlier losses after the reports. The contract on the Standard & Poor’s 500 Index maturing in March fell 0.1 percent to 1,340.3 at 8:47 a.m. in New York as euro area’s leaders remained divided over a bailout for Greece and Moody’s Investors Service reviewed global banks.

Those who’ve used up their traditional benefits and are now collecting emergency and extended payments decreased by about 22,800 to 3.48 million in the week ended Jan. 28.

The unemployment rate among people eligible for benefits fell to 2.7 percent in the week ended Feb. 4 from 2.8 percent, today’s report showed. Forty-four states and territories reported a decrease in claims, while nine showed an increase.

The figures follow a report earlier this month that showed improvement in the labor market. Employers added 243,000 jobs in January, the most since April, and the unemployment rate dropped to a three-year low of 8.3 percent, according to the Labor Department.
Firing, Hiring

Initial jobless claims reflect weekly firings and tend to fall as job growth -- measured by the monthly non-farm payrolls report -- accelerates.

The drop in joblessness over the last few months stems in part from fewer workers in the labor force, according to some Federal Reserve officials.

“A few participants noted that the recent decline in the unemployment rate reflected declining labor force participation in large part, and judged that the decline in the participation rate was likely to be reversed, at least to some extent, as the recovery continues and labor demand picks up,” according to minutes of the Federal Open Market Committee meeting Jan. 24-25 released yesterday in Washington.

Increased demand is prompting some firms to boost their payrolls. “Employee levels rose 5 percent as we continue to hire trainees to handle our 2012 forecasted volumes,” James Squires, chief financial officer for Norfolk Southern Corp. (NSC), the second-biggest railroad company in the eastern U.S., said on a Feb. 14 conference call.

To contact the reporters on this story: Timothy R. Homan in Washington at thoman1@bloomberg.net; Robert Willis in Washington at bwillis@bloomberg.net

Eriksen keeps feet on ground

2012-02-17T00:24:00.000+08:00

Ajax attacking midfielder Christian Eriksen has revealed he wants to test himself at one of Europe's bigger clubs - but he is in no rush to quit the Eredivisie.

GettyImagesChristian Eriksen: Happy in Holland

Eriksen, who turned 20 on Tuesday, has been tracked by Premier League clubs ever since he played a starring role in Denmark's 2-1 defeat to England in an international friendly 12 months ago. But while the former Odense player knows he is being watched by other sides, he believes he will learn more at Ajax.

"I always thought it would be better to go to Holland first, especially because of the position I play and the football I wanted to play," Eriksen told the Daily Mail ahead of Ajax's Europea League tie at home to Manchester United. "Ajax have a tradition of good football and play 4-3-3, which suits me. They also spend lots of money on youth players with the aim of putting them in the first team.

"Top sides in England have to get into the Champions League every year, so they are not going to buy a 17-year-old and put him straight in the first team. They buy players who can play now. You might not get a game until you are 21, so why should you go there?

"I work a lot with Frank de Boer (the head coach) and Dennis Bergkamp (his assistant). I've seen a lot of clips of Bergkamp playing for Arsenal on YouTube. In the beginning it was a shock seeing these big names, even though most of them played before my time. My dad couldn't believe it. Everywhere he turned was an idol.

"When it's time to leave Ajax, I'll try to go to a bigger team who do well in the Champions League every year and win trophies, but I'd make sure it was somewhere where I wouldn't just sit on the bench. Right now, my mind is only focused on Ajax."

Ajax boss De Boer thinks Eriksen could stay at the club for another five years before moving on.

"Christian is a smart kid," he said. "Of course maybe he will play for a big team like Manchester United in the future, but I think he wants to show what he is capable of in this kind of team.

"It would be better for him to stay until he was 25 because you learn a lot in the Netherlands. If you leave afterwards you are a more stable player and ready to play in the big leagues."

Euro: So When is the Second Greek Bailout Vote Happening?

2012-02-15T14:46:00.000+08:00

Dollar Wins Critical Break Only to be Knocked Back in Greek Churn

The dollar looks as if it is manic-depressive. Through the first half of the US session the currency forged significant gains against most of its most liquid counterparts (European and high-risk currencies alike). Yet, by the end of the New York session heading into Asian trading hours, the greenback retreated sharply. The indecisiveness is the work of underlying risk trends which are taking a greater interest in what happens with the Euro Zone’s financial crisis (Greece). Where the Euro and S&P 500 head, expect the dollar to be moving in the opposite direction.

Euro: So When is the Second Greek Bailout Vote Happening?

The fundamental compass on the euro has gone haywire and we have paid for it in volatility. The shared currency suffered multiple reversals over the past 24 hours as the read on the region’s financial crisis improved, deteriorated and improved again. We were heading into Tuesday’s trading session equipped with the knowledge that the Greek Parliament had approved what it believed were the necessary requirements from the EU to secure the second bailout package. That relief didn’t last long, however, as the region’s ministers determined ‘not all the paperwork was done’ and therefore, the meeting would be postponed until next week. It non-political speak, this translates into: ‘we haven’t heard a unanimous agreement from Greece’s political leadership to stay the course after they win the €130 billion package.’ The impact on the euro and general risk trends was clear and severe (relative to recent trading conditions). That wasn’t the final word as unnamed Greek officials said conservative party leader Samaras (most likely the next Prime Minister) would sign a letter of commitment and the PBoC vowed support. Yet, there has been nothing to suggest Wednesday’s originally-scheduled meeting would be back on. Yet another monkey wrench in a mechanism that has been harangued by problems. How long does the market tolerate this spectacle is a real concern. In the meantime, we’ll see how euro sentiment settles in the upcoming session and see if the big-ticket Euro Zone, German, French and Italian 4Q GDP figures add to the equation.

British Pound Traders Ready to React to Labor Data, BoE Inflation Report

If there was any doubt as to the sterling’s connection to the euro’s bearing, the 20-day rolling correlation between EURUSD and GBPUSD is currently 0.84 (1.00 being perfect and 0.00 representing complete randomness). On a shorter time frame, the connection is even stronger (the 5-day or one-week link is a remarkable 0.96). As such, those looking for the pound’s trend should keep a close eye on how the Euro-area financial situation progresses. That said, there is plenty of room for short-term divergence in the form of scheduled event risk. We’d reserve expectations of separation from dominant theme only through meaningful developments, but the upcoming docket fulfills that requirement. With the focus still firmly fixed on the balance between economic activity and austerity in the UK, we come upon the jobless claims figures and BoE Inflation Report. What should we look for? A strong employment figure and outlook for more stimulus would fit nicely with the current ‘risk-on’ theme.

Japanese Yen Mixes BoJ Stimulus and Risk Appetite for Effective Decline

I had set my expectations for a reaction from the Japanese yen to the Bank of Japan’s policy decision yesterday low – perhaps too low. In the aftermath of the central bank’s changes, the USDJPY surged another 100-plus points while other yen-based crosses carved out rallies of their own. Where is this strength coming from? In the policy decision itself, the ¥10 trillion increase in the asset purchasing program to ¥30 trillion total represents a significant bid for the region. Yet, does it really differ that much from the previous steps taken at previous meetings? Alternatively, setting an inflation goal of 1 percent merely offers a target without means to reach it. Plenty of people have speculated that this is a sign of ‘stealth intervention’ which presents a temptingly simple explanation. Yet, there is perhaps a more reasonable explanation: risk appetite trends. Though both the dollar and yen are safe haven currencies, USDJPY has shown positive risk correlations when major themes are stable.

Australian Dollar Finds Asian Session Strength as PBoC Talks EU Crisis

Consumer Confidence survey figures for February posted an unexpectedly strong 4.2 percent increase through the Westpac’s index. This would have matched the previous reading’s five-year high had it not been revised higher. Regardless of this historical performance, the data itself would generate little response from the market. Fundamentally, domestic consumption expectations matter relatively little to a currency that is basing much of its strength on the foreign demand for its raw materials and the inflow of capital seeking yield. Therefore, with an eye on risk appetite trends, we could spot the meaningful correlation between AUDUSD and the S&P 500 futures or the Nikkei 225 future. The session-end rally in risk through the New York market offered a boost, but this run through the Asian session following the PBoC’s open promise to help the EU through its difficulties is proving more fruitful.

New Zealand Dollar Jumps after Retail Sales Figure, Continues with Risk

Where goes risk, so does the New Zealand dollar. As surely as the Aussie currency has taken higher alongside equities in the Asian session; the kiwi will be making a similar advance. That said, the currency received an additional boost from its own scheduled event risk in the form of a 4Q retail sales report that handily bested expectations with a 2.2 percent climb. For consistent influence though, just in case sentiment returns in a meaningful way, we should be aware of the yield that the New Zealand dollar will be working with to whet the appetites of carry traders. The benchmark yield may be 2.50 percent, but the money market rate is running 2.95 percent while the 10-year bond rate is currently 3.98 percent. In fact, when adjusted for 4Q inflation figures, the real rate return (yield minus inflation) on the New Zealand government bond is significantly better at 2.18 percent versus the Australian 0.9 percent equivalent.

Gold: The Only Thing Not Moving on a Tense, Volatile Day

Volatility has notably picked up for the FX and capital markets over the past 12 hours; and yet, gold is still working its way deeper into congestion. As a safe haven asset, it isn’t difficult to generate activity for the metal; yet this is not a freely associated alternative to a currency (the greenback is a preferred FX alternative to something like the Aussie dollar) or equities (bonds or cash have been generally preferable on this front). To rouse gold to life, we need underlying sentiment with drive behind it. In the meantime, we find the average five-day daily range through Tuesday’s close was $16.95 (the lowest since July 18th), the CBOE’s volatility measure for gold is just off seven month lows and futures volume is still exceptionally light. If the dollar maintain a clear trend (bullish or bearish), gold will find greater charge for a counter-run.

Homeownership rates fall to 66% as downturn nears a bottom

2012-02-01T18:25:00.000+08:00

Fewer Americans own homes and many of them are continuing to see values decline.

The U.S. Census Bureau reported Tuesday that the nation's homeownership rate fell to 66% in the fourth quarter, continuing a seven-year drop from a fourth-quarter peak of 69.2% in 2004.

At the same time, U.S. home prices fell 1.3% in November from October and were 3.7% below 2010 levels, the Standard & Poor's/Case-Shiller home price index indicates.
STORY: Home prices drop in November for third straight month
Falling homeownership — and prices — reflect the worst housing downturn since the Great Depression. And while there are signs that the housing industry's downturn may at least be nearing a bottom, the impact of the collapse will be evident for years to come, economists say.

As of November, average U.S. home prices were back to mid-2003 levels, S&P says.
"Americans are less keen on homeownership knowing now that prices can fall," says Paul Dales, economist with Capital Economics.

Even if people want to own a home, they may not be able to, given the difficulty in getting financing for a mortgage, Dales says. The National Association of Realtors says many purchase contracts appear to be falling through for that reason.
Many economists expect home prices to continue to fall this year and maybe into next year before stabilizing and then showing little or no appreciation for some time.
"The trend is down, and there are few, if any, signs in the numbers that a turning point is close at hand," says David Blitzer, chairman of S&P's index committee.
Phoenix was the only city in Case-Shiller's 20-city index where home prices rose in November from October. They were up 0.6%.

On a year-over-year basis, only two cities showed rising values. Detroit was up 3.8%, and Washington, D.C., 0.5%, the Case-Shiller data show.

While prices are still falling in most areas, there are signs of increased home sales.

Existing home sales rose in December for the third consecutive month, the National Association of Realtors says. And pending home sales, while dropping more than expected in December, were still above levels a year before, NAR says.
"Home prices will be the last thing that moves up" after increasing sales and shrinking inventories, Blitzer says.
The homeowner vacancy rate fell again in the fourth quarter, the Census data show, to 2.3% from 2.4% in the third quarter and from 2.7% in the fourth quarter last year.
The 2.3% rate is the lowest since early 2006 and "leaves the visible inventory at a level consistent with house prices bottoming out later in the year," Capital Economics says.
The drop in homeownership rates has been most pronounced in the West. As of the fourth quarter, the homeownership rate there stood at 60.1%, the Census data show.
That's down from 64.5% in the fourth quarter of 2006, which is about when home prices began their five-year tumble.

The West is home to three of the states most affected by foreclosures, which have hurt homeownership rates. Nevada, Arizona and California were the top three states last year with the highest foreclosure rates, market researcher RealtyTrac says.
While homeownership drops, more people rent. Almost 34% of occupied homes in the fourth quarter were rented, according to the Census data. That's up slightly from the same quarter a year earlier.

The rental vacancy rate of 9.4% for the quarter was the same as a year ago but down from above 10% rates in the fourth quarters of 2009 and 2008, the Census data show.
Higher rents are expected as more people rent, economist Dales says.

First lady pushes Jay Leno to eat healthy

2012-02-01T18:21:00.000+08:00

First lady Michelle Obama cajoled Jay Leno into nibbling on some fruit on the "Tonight Show," breaking his long-held aversion for all-things-healthy in his diet.
Leno once told a magazine he hadn't eaten a vegetable since 1969, and he told the first lady he gave up apples in 1984.
Earlier, Obama poked at him in a Twitter post, hinting she'd "get Jay to eat some veggies."
The first lady urged him to dip it in honey made from beehives in the White House garden: "It will help it go down easier," she assured him.
"White House honey? That sounds bad," Leno told her. "You know, with a different president that could mean a whole different thing, 'a little White House honey.'"
The first lady is on a two-day swing through California where she'll promote her "Let's Move!" campaign promoting fitness and healthy eating for kids, while helping Democrats raise money at two events for the upcoming elections.
She told Leno she's not doing anything special to prepare for what's expected to be a tough re-election campaign for her husband, President Barack Obama.
"You know, there's really no way to mentally prepare for it. You take each day as it comes," she said.
Republican Mitt Romney has been ridiculing the White House and might face the president in November, but the first lady gave the former Massachusetts governor's singing voice a diplomatic endorsement. Romney surprised supporters in Florida with an on-pitch version of "America the Beautiful" on Monday, and Leno asked the first lady for her opinion.
"It's beautiful," she said with a laugh and raised eyebrows. "And it is America's song, and it's a song that's meant to be sung by every American," the first lady said in a taped appearance for the NBC show.
Leno told her, "That is right, regardless of political affiliation."

Dollar Selling Doesn’t Necessarily Require a Risk Appetite Drive

2012-01-30T01:05:00.000+08:00

Dollar Selling Doesn’t Necessarily Require a Risk Appetite Drive

The US dollar fell against all of its most liquid counterparts this past week. In fact, the Dow Jones FXCM Dollar Index tumbled for 9 out of the 10 past trading days and subsequently closed out the trading week at its lowest level since November 14th. For all intents and purposes, the greenback has carved out a clear bear trend. However, determining what the drive behind this move is important to determining whether the selling pressure tapers off or intensifies over the coming week.

The most consistent pressure exerted on the benchmark currency so far this year has been the climb in underlying risk appetite trends. Using the S&P 500 to gauge sentiment, a near six-week advance has set the tone for positioning behind assets that are expected to offer a better return (versus the alternative of offering protection). That said, the entire drive has clearly lacked for participation (volume and momentum) while this past week was particularly strained with no progress made. This tells us the dollar’s slide can continue without active, market-wide reinvestment into risk. However, this divergence between price and fundamentals can’t last forever. And, a risk reversal is a very real possibility.

Euro Rebound Outpacing Questionable Equity Rally

We saw limited reaction when the market reopened following the Standard & Poor’s rating cuts to 9 Euro Zone member economies (including France, Italy and Portugal) two weeks ago; so Fitch’s move on five Euro-area countries would naturally elicit little reaction from euro traders. The most notable move they would make was the cut to Italy as it was accompanied with an assessment that it was “especially vulnerable” to the spread of the regional crisis. Against recent doubts by German Chancellor Merkel that Greece could avoid a default, ECB President Draghi’s reflections that the central bank’s massive liquidity injection (LTRO) has yet to translate into economic growth and rising fear that Portugal could prove claims that Greece was a unique situation deserving of accommodation; the euro continued to climb this past week. In fact, the currency’s rebound has even outpaced our benchmark for risk appetite: the S&P 500. Whether a fundamental driver is critical or not depends on the belief of the masses. For now, the aforementioned risks exist beyond the horizon of concern. In the meantime, there is a correction to extend.

British Pound May Seem Firm but Yields have Tumbled Since Minutes, GDP

On an open-to-close basis, GBPUSD has advanced for 10 consecutive days. We haven’t seen a move with this level of consistency in over a decade. So, the sterling must be incredibly strong…right? Not really. Put up against its fundamental counterpart, the pound hit a new low for the year against the euro. Other safe haven currencies (the Swiss franc and Japanese yen) have covered meaningful ground against the pound – especially over the final days of the past week. And, the commodity currencies are just off multi-month or record highs when measured against the pound. It is important to look beyond the cable (sensitive to risk appetite trends) when establishing a view on the sterling itself. In fact, since the report of a contraction in 4Q GDP and the BoE minutes laid more track towards additional bond purchases, the 10-year gilt yield has slid back towards recent record lows. As for GBPUSD, it is only a matter of time before the risk run stalls.

Australian Dollar Cannot Sustain its Drive without Risk Trends

As long as sentiment and the S&P 500 are climbing, there is little question as to the expected performance of the Australian dollar. The 4.25 percent benchmark lending rate, 4.41 percent money market rate and 3.81 percent 10-year government bond yield offer the Aussie a clear yield advantage over most of its counterparts. And, even when underlying risk appetite is idling in neutral, yield this high is enough to tip the risk-reward balance and push buying interest forward. However, at the first sign of the market unwinding its risk exposure; the Australian dollar will be harshly judged. A high yield will can keep traction in a steady or advancing market, but these differentials can’t hold back a true selloff.

Canadian Dollar has Lagged its Australian Counterpart, Failing to Leverage Risk

Take a quick glance at the performance of the three, liquid carry (or investment) currencies from this past week. The New Zealand dollar was the clear outperformer. Up next was the mixed performance of the Australian dollar. And, in a distant third place was the Canadian currency. Not only did the loonie fade in the face of its fellow commodity currencies, but it struggled against the European currencies and put in for limited gains against the safe haven counterparts. As long as the risk appetite drive is strong, the Canadian dollar will keep its bearing and may even put some heat on the move. Yet, when the unit has to stand on its own, its exceptionally low yield keeps the it anchored to the greenback.

Japanese Yen: What is Stirring the Most Activity Since October’s Intervention?

The Japanese yen was unusually active this past week. In fact, USDJPY’s level of volatility this past week was the highest we have seen since the late-October intervention by the Bank of Japan. In fact, when we look at the initial surge (Tuesday) and subsequent slump in the second half of the week, we are left with a picture that looks very much like another failed manipulation effort by either the central bank or Ministry of Finance. The typical path there is a dramatic rally from the combination of the unnatural bid and drive through dense stops and entries on the otherwise quiet pair. This is followed shortly by a natural unwinding to drive the currency back towards its safe haven highs. So, was last week’s short-lived swell an intervention move? There was no official report or even serious speculation. Perhaps this is a natural (permanent?) increase in volatility.

Gold Closes out its Fourth Weekly Advance, Volume Supports Conviction

There are many notable trends developing out there, but few of these drives fail their fundamental litmus tests. One of the few exceptions to this rule is gold’s drive. The precious metal closed out a strong three-day rally Friday and subsequently put an exclamation point on its fourth consecutive weekly advance. Unlike the S&P 500, this isn’t a flimsy risk based move. Neither does this carry the same characteristics as the euro’s rebound which is catching traction despite its building troubles. Gold is taking advantage of its unusual safe haven property as an alternative to government manipulation which currencies have clearly suffered for. Furthermore, volume supports conviction which many other bullish performances (like with the S&P 500) cannot claim. The last time we had three days of 300,000-plus contract turnover was September.

French Banks Poised for Moody’s Downgrade

2011-09-11T09:18:00.000+08:00

BNP Paribas (BNP) SA, Societe Generale SA and Credit Agricole SA (ACA), France’s largest banks by market value, may have their credit ratings cut by Moody’s Investors Service as soon as next week because of their Greek holdings, two people with knowledge of the matter said.

Moody’s placed the three banks’ ratings on review in June to examine “the potential for inconsistency between the impact of a possible Greek default or restructuring and current rating levels,” the rating company said at the time. Cuts are expected next week as the review period concludes, said the people, who declined to be identified because the matter is confidential.

Group of Seven finance chiefs vowed yesterday to support banks and buoy slowing economic growth as Europe’s debt crisis roiled financial markets and threatened a global recession. Renewed fears that European policy makers are failing to prevent a Greek default and contain their debt woes yesterday prompted investors to sell stocks and push the euro to a six-month low against the dollar. European bank and sovereign credit risk reached all-time highs as 10-year Treasury and German bund yields fell to record lows on demand for a haven.

“We will take all necessary actions to ensure the resilience of banking systems and financial markets,” G-7 finance ministers and central bankers said in a statement released during talks in Marseille, France late yesterday.

Moody’s currently rates BNP Paribas’ long-term debt at Aa2, the third-highest investment grade. Credit Agricole is rated Aa1, the second highest, while Societe Generale (GLE) is Aa2.
Stocks Decline

Credit Agricole spokeswoman Anne-Sophie Gentil declined to comment, as did BNP Paribas spokesman Antoine Sire. Societe Generale spokeswoman Laetitia Maurel said she couldn’t immediately comment. Voicemail messages left on the mobile and office lines of Moody’s chief European spokesman Daniel Piels today, outside of working hours, weren’t immediately answered.

Societe Generale has dropped 55 percent in Paris trading since June 15, while Credit Agricole tumbled 45 percent and BNP Paribas has declined 42 percent. The Bloomberg Europe Banks and Financial Services Index of 46 companies fell 30 percent in the same period.

The reviews of Credit Agricole and BNP Paribas are unlikely to lead to downgrades of more than one level, Moody’s said when it put the banks under review. Societe Generale’s debt and deposit ratings may be cut as much as two grades because of the “uplift it receives from systemic support, which is currently higher than average for the French banking system,” the rating company said at the time.

Credit Agricole’s main risk arises from its Greek subsidiary Emporiki Bank of Greece SA, which was downgraded earlier this month, Moody’s said in June. Societe Generale, France’s second-largest bank by market value, faces risks from its stake in General Bank of Greece. Credit Agricole is France’s third-largest bank. BNP Paribas doesn’t have a local unit in Greece and is instead at risk from direct holdings of Greek government debt, Moody’s said.

Stocks Surge as the Dollar Suffers Ahead of Key Data this Week

2011-08-30T13:35:00.000+08:00

By Michael Boutros, Currency Analyst

29 August 2011 22:44 GMT

The greenback was lower at the close of North America trade with the Dow Jones FXCM Dollar Index (Ticker: US Dollar) falling 0.26% on the session. The losses come on the back of a substantial shift in risk appetite that saw US equities surge across the board with the Dow, the S&P, and NASDAQ advancing 2.26%, 2.83%, and 3.32% respectively. Stronger than expected personal spending figures in pre-market trade gave futures a lift with markets steadily advancing throughout the day to close at session highs. Trade volume remained thin however as many investors were on the sidelines after hurricane Irene ravaged the northeast seaboard over the weekend. The damages were less substantial than anticipated with the storm sparing New York City the worst of its wrath, adding fuel to today’s rally in risk

The greenback remained on the defensive with the index holding its recent range ahead of this week’s economic docket. The dollar sees increased risk for extended losses with a break below the key 61.8% long-term Fibonacci extension taken from the June 7th and November 30th 2010 crests at 9380. Price action will largely be determined by broader market sentiment as investors digest the implications of Bernanke’s remarks at Jackson Hole where he evaded talk of further Fed easing while hinting that the central bank remains poised to respond should the situation deteriorate.

The index continues to range between the key 61.8% and 38.2% Fibonacci extensions taken from the July 12th and August 8th crests at 9410 and 9515 respectively. As noted in last week’s USD Trading Today report, the greenback risks significant losses with a break below 9400 with subsequent floors seen at 9380 and the 76.4% extension at 9345. Topside resistance is eyed at 9440 backed by the 50% extension at 9460 and the 38.2% extension at 9515.

The dollar fell against all the component currencies save the yen which declined by 0.21% on the session. Highlighting the performance chart is a 0.77% advance in the Australian dollar which surged late in the day as traders jettisoned so called “safe haven” assets in favor of yields. For now, the aussie continues to boast the highest interest rate of the developed economies and accordingly it has been the primary beneficiary of today’s rally in risk.

Tomorrow’s economic docket is highlighted by the August consumer confidence report and the FOMC minutes from the August 9th meeting. Consensus estimates call for confidence to fall to 52.0, down from the previous read of 59.5, its second lowest print this year. Investors will be carefully combing the FOMC minutes for subtexts after the vote saw three dissenters early this month. And while the minutes are likely to reinforce Bernanke’s comments at Jackson Hole in omitting talk of another round of quantitative easing, the record may reveal a shift among voting members as inflation concerns are rekindled and begin to take root. Looming over trade this week are the August non-farm payroll figures on tap for Friday with estimates calling for yet another dismal print of just 75K, down from 117K the in July. Disappointing data tomorrow could weigh on the recent shift in risk sentiment to the benefit of the dollar as traders seek refuge in the reserve currency.

China Yuan Hits Fresh High Late On 3rd Straight Record Fixing

2011-07-24T21:52:00.000+08:00

SHANGHAI (Dow Jones)--China's yuan rose to a fresh all-time high against the dollar late Friday after the central bank set the reference exchange rate at a record-low for a third straight day.

Dealers said, however, that they expect the People's Bank of China to let the yuan consolidate next week after its rapid run-up in recent sessions.

On the over-the-counter market, the dollar was at CNY6.4455 around 0830 GMT, down from CNY6.4516 late Thursday. It traded between CNY6.4455, the lowest since China's landmark currency reforms in 2005, and CNY6.4486.

At CNY6.4455 to the dollar, the yuan has risen 5.9% against the U.S. unit since June, when China effectively ended its currency's two-year peg to the dollar. It is up 0.27% this week, compared with last month's 0.22% increase.

The People's Bank of China fixed the dollar/yuan central parity rate at an all-time low for the third straight session after the euro surged overnight on plans for a new Greek bailout and an overhaul of the euro zone's rescue fund, which assuaged fears about possible contagion. Friday's parity was fixed at 6.4495 from Thursday's 6.4536.

"I think the market is still in a watch-and-wait mode as the trading volume is low. The feeling is the yuan has risen a lot this week and it's unclear how much more gains the PBOC has in store for the currency," a Beijing-based local bank trader said.

Dealers said the yuan's fast-paced gains this week were also likely spurred on by the sixth anniversary of China's currency reforms on July 21, 2005, when China abandoned a decade-old peg against the dollar amid market and political pressure. The PBOC also revalued the yuan overnight by 2.1% to 8.11 against the dollar at the time.

"We can't rule out a possible widening of the dollar/yuan trading band around this time, given the anniversary, although I think there is no need to expand the band for now," said a Shanghai-based trader from a foreign bank.

The market has been suspecting that the central bank could soon widen the daily trading limit to 1% above or below the central parity from the current 0.5%.

Offshore, the yuan rose against the dollar in both the nondeliverable forwards and spot markets, tracking a stronger yuan onshore. One-year dollar-yuan nondeliverable forwards fell to 6.3780/6.3810 from 6.3870/6.3910 late Thursday, implying a 1.3% rise by the yuan against the U.S. currency over the next year.

In the offshore yuan market in Hong Kong, where the Chinese currency floats freely, the dollar-yuan exchange rate was at 6.4455 late Friday, down from 6.4495 late Thursday.

-By Jean Yung, Dow Jones Newswires; 8621 6120-1200; jean.yung@dowjones.com

run riot...

2011-07-09T12:50:00.001+08:00

10 Ways to Prepare for Ramadan

2011-06-30T01:01:00.000+08:00

The blessed & most beautiful month is near and what better time to prepare for it than right now. Some of us deceive ourselves into thinking that when Ramadan comes we will suddenly change and worship Allah night and day but we are only decieving ourselves in thinking like this.

The Sahaaba used to prepare for Ramadan six months in advance. So if we really want to make the best of this Ramadan then we need to prepare for it now!

This may be our last Ramadan for life is so uncertain. Then there is NO doubt that we must make the best of it for the Reward of EVERY good act in the month of Ramadan is multiplied many times over:

The Prophet (Sallallahu Alaihi Wasallam) said: “Whoever draws near to Allah during it (Ramadan) with a single characteristic from the characteristics of (voluntary) goodness, he is like whoever performs an obligatory act in other times. And whoever performs an obligatory act during it, he is like whoever performed seventy obligatory acts in other times.” (Sahih Ibn Khuzaymah, no. 1887)

If there was a 75% sale on in the shops surely people would go crazy and even cue all night outside in order to be the first in the store to take advantage of this special offer. So in the same way why should we not take advantage of the immense rewards that are available in Ramadan?

The best way we can make the best of this Ramadan and grab the immense rewards that are available is to prepare for it NOW.

The following are 10 ways in which we can prepare for this beautiful month starting from NOW:

1. Voluntary Fasts

What better way of preparing ourselves to fast for 30 consecutive days in Ramadan than to fast the voluntary fasts.

Fasting Monday and Thursday:

Abu Hurairah reported that the most the Prophet, (Sallallahu Alaihi Wasalam) would fast would be Monday and Thursday. He was asked about that and he said: “The deeds of people are presented to Allah on every Monday and Thursday. Allah forgives every Muslim except for those who are deserting each other." He says: "leave them for later”. (Ahmad; Hasan)

Another is to fast the white days (13, 14 & 15th of each Islamic month):

Abu Tharr Al-Ghefari said: “The Messenger of Allah (Sallallahu Alaihi Wasallam) said "O Abu Tharr! If you fast three days of every month, then fast the 13th, the 14th and the 15th [these are call the al-ayaam al-beedh, the white days]". (Ahmad, an-Nasaa'i & at-Tirmithi; Sahih)

Therefore we should fast these days in order to prepare for the fasting of Ramadan and even after Ramadan we should continue to do so for fasting will intercede for us on the day of judgement:

Rasulallah (Salallahu Alaihi Wasallam) said: "Fasting and the Qur’an will intercede for the slave on the Day of Resurrection. Fasting will say: “O My Rabb! I prevented him from food and desires, so accept my intercession for him.’ And the Qur’an will say: “I prevented him from sleep during the night, so accept my intercession for him.’ He (Sallallahu `Alaihi Wasallam) said: ‘And they will (be allowed to) intercede.’” (Ahmad, at-Tabarani, Al-Hakim, Sahih)

2. Reciting Qur’an

Allah the exalted says:

“The month of Ramadan is the one in which the Quran was sent down, a guidance for mankind, clear proofs for the guidance, the Criterion; so whoever amongst you witnesses this month, let him fast it." (Surah al-Baqarah 2:185)

Ramadan was the month in which the Qur'an was first revealed so it is the month of the Qur'an. We should devote much of this blessed month reciting the Qur'an.

Az-Zuhri used to say upon the coming of Ramadan, “It is only about reciting the Qur’an and feeding the poor.”

Abdur-Raziq said, “When Ramadan came, Sufyan Ath-Thawri would give up all acts of (voluntary) worship and devote himself to the recitation of the Qur’an.”

But for many of us the Qur'an has gathered a lot of dust since the last time we picked it up.

As Ramadan is fast approaching we must blow off the dust and start to build a close relationship with the Qur'an for it will intercede with us on the day of judgement:

"Recite the Holy Qur’an as much as we can for It will come as an intercessor for its reciter’ on the Day of Judgement" (Muslim)

The Recitor will be in the company of Angels:

‘Aa'ishah related that the Prophet (Sallallahu Alaihi Wasallam) said: “Indeed the one who recites the Quran beautifully, smoothly, and precisely, will be in the company of the noble and obedient angels. As for the one who recites with difficulty, stammering or stumbling through its verses, then he will have twice that reward.” (Al-Bukhaari & Muslim)

There are Ten Rewards for Every Letter Recited from the Quran in normal times but in Ramadan these rewards are multiplied:

“Whoever reads a letter from the Book of Allaah, he will have a reward, and this reward will be multiplied by ten. I am not saying that 'Alif, Laam, Meem' (a combination of letters frequently mentioned in the Holy Quran) is a letter, rather I am saying that 'Alif' is a letter, 'Laam' is a letter and 'Meem' is a letter.” (At-Tirmithi)

So what better time for us to get into the habit of reciting the Qur'an than to begin to do so right now. We should recite the Qur'an with its meanings and try to understand and implement it into our daily lives.

We should set ourselves realistic targets for how much we should begin to recite each day for e.g. we will recite 1 or 2 pages a day, half a juz (chapter), or 1 juz etc. We should recite however much we can manage and then build up gradually.

3. Praying Superogatory (Nafil) prayers

In Ramadan every voluntary prayer carries the reward of a Fard prayer in normal times and there is nothing more rewarding than a Fard prayer so one can imagine the immense rewards that are available in Ramadan for every voluntary prayer we pray.

The Prophet (Sallallahu Alaihi Wasallam) said: “Whoever draws near to Allah during it (Ramadan) with a single characteristic from the characteristics of (voluntary) goodness, he is like whoever performs an obligatory act in other times. And whoever performs an obligatory act during it, he is like whoever performed seventy obligatory acts in other times.” (Sahih Ibn Khuzaymah, no. 1887)

In order for us to take advantage of these immense rewards we should start begin now by praying all of the daily Sunnah and Nafil prayers so by the time Ramadan comes we will already be in the habit of praying all of our Sunnah and Nafils and so we cna increase our voluntary prayers even more so during Ramadan. This would be difficult if we were not in the habit of praying Sunnah and Nafil prayers in normal times.

By increasing our voluntary worship we can gain closeness to Allah as well as the company of Rasulallah (Sallallahu Alaihi Wasallam) in Jannah:

Rabi'ah ibn Malik al-Aslami reported that the Prophet (Sallallahu Alaihi Wasallam) said: "Ask (anything)." Rabi'ah said: "I ask of you to be your companion in paradise." The Prophet (Sallallahu ALaihi Wasallam) said: "Or anything else?" Rabi'ah said: "That is it." The Prophet (Sallallahu Alaihi Wasallam) said to him: "Then help me by making many prostrations (i.e., supererogatory prayers)."

4. Making Dua

Many of us do not spend as much time as we should do in Dua. Even if we do we rush our dua and our hearts and minds are not present whilst supplicating to Allah.

Many of us rush our Dua's and our hearts are often not present whilst we are supplicating to Allah. Therefore we lose out on much of the benefits and blessings of Dua. We must give more attention to our Dua's and try to concentrate more and be more sincere in our Dua's imagining Allah watching us supplicate to him. We should humble ourselves making ourselves low and not worthy in front of Allah. We should try to cry if we can and have FULL hope that Allah will accept our Dua's if not in this world then in the hereafter.

Allah Almighty says in the Qur’an: "When my servants ask you concerning me, (tell them) I am indeed close (to them). I listen to the prayer of every suppliant when he calls on me."

The place of Dua is so honourable to Allah that the Prophet (Sallallahu AlaIhi Wasallim) said:

"Nothing is more honourable to Allah the Most High than Du`a." (Sahih al-Jami` no.5268).

It is the most excellent of worship:

He also said: "The most excellent worship is Du’a." (Sahih Al-Jami` no. 1133)

So let us get into the habit of making sincere Dua's from deep within our hearts and let us not be heedless when supplicating to Allah. What better time than now for us to get into the habit of making more intense and sincere Dua's. So by the time Ramadan arrives we would have already got into the habit of making the long, sincere and intense Dua's which will readily be accepted during this blessed month especially whilst we are fasting and in the latter part of the nights during Tahajjud.

It may help to make a list of what we should ask of Allah suring dua's which we can refer to as a reminder as this may help us to make our dua's longer and more sincere covering everything we want to ask of Allah.

5. Sincere Repentance

Ramadan is the month where we can gain mercy and forgiveness from Allah for all of our sins past and present.

We should know that Allah is most merciful and most forgiving and loves to forgive:

Allah says: O son of Adam, if your sins were to reach the clouds of the sky and you would then seek My forgiveness, I would forgive you.

When a person sins and then sincerely turns to Allah for forgiveness, one will find Allah ready to accept his repentance and to forgive him, as this verse indicates: And whoever does a wrong or wrongs himself, but then seeks forgiveness from Allah, he will find Allah forgiving and merciful. (Surat an-Nisaa 4:110)

Allah loves repentance and loves those who turn to him in repentance:

Truly Allah loves those who turn [to Him] in repentance, and He loves those who keep themselves in purity. (Qur'an 2:222)

Therefore we should get into the habit now of repenting to Allah so that in Ramadan we will make the best of repenting to Allah and continue to do so throughout everyday of our lives.
How unfortunate is a person who after the end of Ramadan does not gain any forgiveness of his sins from Allah but ends up piling more sins onto his account.

6. Generosity & Charity

Rasulallah (Sallallahu Alaihi Wasallam) became even more generous in Ramadan than he already was.

Ramadan is a time for generosity and giving. It is a time when we think about those who have less than us as well as thank Allah for everything he has given us. Ramadan is an honourable and blessed month, and the rewards for generosity are multiplied in it.

The Prophet (Sallallahu Alaihi Wassallam) said, “The best charity is that given in Ramadan.” (At-Tirmithi).

Prophet (Sallallahu Alaihi Wassallam) said, “He who feeds a fasting person will gain the same reward as he will, without decreasing from the fasting person’s rewards.” (Ahmad).

Therefore we should get into the habit of giving in charity now so by the time Ramadan arrives we would increase in our generosity, giving to those less fortunate than ourselves. We should give whatever we can afford as Allah looks at our intentions.

Surely in there hereafter we will regret that which we did not spend in the path of Allah.

7. Controlling the tongue

Ramadan is a time where we must control our desires (nafs) aswell as our tongues:

Rasulallah (Sallallahu Alaihi Wasallam) said: “Fasting is not (abstaining) from eating and drinking only, but also from vain speech and foul language. If one of you is being cursed or annoyed, he should say: ‘I am fasting, I am fasting.” (Ibn Khuzaimah, Ibn Hibban)

Therefore we must protect our tongue from vain speech and foul language. Protecting the tongue is preventing it from lying, back-biting, slander, tale-carrying, false speech and other things that have been forbidden in the Qur'an & Sunnah.

Those who control their tongues are of the best of Muslims:

The Prophet (Sallallahu Alaihi Wasallam) was asked: “Which Muslim is best?” He responded, “One who the other Muslims are safe from his tongue and his hand.” (Tirmidhi, #2504)

We must not deceive ourselves into thinking that by the time Ramadan comes we will all of a sudden break a lifetime habit and control our tongues. Again this is another big deception. We must start controlling our tongues now for we cannot for changing lifetime bad habits is not an overnight process.

So how can we begin to control our tongues? This can be done by "THINKING BEFORE SAYING ANYTHING". Not just talking without even thinking what we are going to say.

We must think before we speak and before saying anything we should think whether or not what we are going to say is going to please or displease Allah.

If we doubt that what we are about to say may anger or displease Allah then we should refrain from saying it. If we have nothing good to say then surely it is better NOT to say anything at all. Remember we WILL be accountable for everything we said in our lives so we MUST start taking responsiblity for what comes out of our mouths NOW otherwise we will regret it later when it is too late. Therefore we must get into the habit of "thinking before speaking".

So let us begin to control our tongues now so that by the time Ramadan comes we would have adopted good habits and would have been used to controlling our tongues and refraining from saying anything which may anger or displease Allah.

REMEMBER: If we do not protect our tongues then our fasts will be in vain:

Rasulallah (Sallallahu Alaihi Wasallam) said: “Allah does not need the fast of one who does not abandon false speech or acting according to his false speech.” (Sahih Bukhari)

8. Improving Character & manners

Rasulallah (Sallallahu Alaihi Wasallam) came to perfect the character of man and the best of this Ummah are those wioth the best of characters:

Rasulallah (Sallallahu Alahi Wasallam) used to say: "The best amongst you are those who have the best manners and character.” (al-Bukhari)

Rasulullah (Sallallahu Alaihi Wasallam) said: "There is none heavier in the scales of the Hereafter than good character (Tirmidhi & Abu Dawud).

Rasulallah (Sallallahu Alaihi Wasallam) also said: “The best loved by me and the nearest to me on the seats on the Day of Resurrection are those who have the best manners and conduct amongst you, who are intimate, are on good terms with others and are humble, and the most hated by me and who will be on the furthest seats from me are those who are talkative and arrogant." (Tirmidhi)

Again as with making any big change perfecting our character and manners cannot be done overnight but we must make a start now so that by the time Ramadan comes we would have gained momentum in making the necessery changes to our characters in order for us to be the best of this Ummah and those closest to Allah.

Surely if good character and manners are the heaviest on the scales then can you imagine how much more heavier they will be if we behave with good character and manners during Ramadan?

So let us strive to perfect our manners, character and conduct towards others and know that these good deeds will be of the heaviest on the scales and will enable us to reach the highest ranks of Jannah and the closest to Allah.

9. Moderation in eating

On the authority of Al-Miqdaam ibn Maadiy-Karib who said: I heard the Messenger of Allah saying: "No human ever filled a vessel worse than the stomach. Sufficient for any son of Adam are some morsels to keep his back straight. But if it must be, then one third for his food, one third for his drink and one third for his breath." (Ahmad, At-Tirmidhi, An-Nasaa’I, Ibn Majah )

Ibrahim al-Nakha’i, on of the teachers of Imam Abu Hanifa, may Allah have mercy on them both, mentioned: “The people ruined before you were done in by three characteristics: too much talking, too much eating, and too much sleeping.”

There is no doubt that excessive eating is not only a cause of many diseases but is also a major factor in stopping us from maximising our worship to Allah.

Ash-Shafi’I said: I have not filled myself in sixteen years because filling oneself makes the body heavy, removes clear understanding, induces sleep and makes one weak for worship.

Many of us fast during Ramadan fast during the day and after Iftaar make up for all the food we missed throughout the day by binge eating.

Surely this goes against the very purpose of Ramadan which is to be moderate in eating and to remember those who have less than us. How will we remember the unfortunate when we constantly over eating before and after our fasts?

By controlling what we eat now we will not only benefit our health in the short and long term but moderate eating will make us less heavier and enable us to maximise the amount of worship we do everyday during Ramadan and the rest of our lives.

Al-Hassan Al-Basri: “The test of Adam (AS) was food and it is your test until Qiyamah.

And, it used to be said: Whoever takes control of his stomach gets control of all good deeds.

And: Wisdom does not reside in a full stomach.

One day, Al-Hassan offered some food to his companion who said: I have eaten until I am no longer able to eat. To which Al-Hassan said: Subhaana Allah! Does a Muslim eat until he is no longer able to eat?

10. Implementing Sunnah's into Daily life

Following the Sunnah is a command from Allah:

"Say (O Muhammad to mankind): "If you (really) love Allah, then follow me (i.e. accept Islamic monotheism, follow the Quran and the Sunnah), Allah will love you and forgive you your sins. And Allah is Oft-Forgiving, Most Merciful." (Quran: 3:31)

Surely if we follow the Prophet (Sallallahu Alaihi Wasallam) in every aspect of our lives then everything that we do will become a worship to Allah, even going to the toilet, having a bath, dressing and undressing etc

Reviving the Sunnah into our daily lives:

Prophet (Sallallahu Alaihi Wasallam) said: “Whoever revives an aspect of my Sunnah that is forgotten after my death, he will have a reward equivalent to that of the people who follow him, without it detracting in the least from their reward.” (Tirmidhi)

The best habit we can ever have in our lives is to implement the Sunnah into EVERY aspect of our lives so that our whole life and everything we do during it can become a worship to Allah.

We can do this by gradually learning all of the Sunnah's and dua's of every aspect of our day waking up, leaving and entering the Masjid and house, dressing and undressing etc. So let us get into the habit right now of implementing every Sunnah's into our daily lives so by the time Ramadan comes we can continue to implement Sunnah's and gain even more rewards for them.

May Allah enable us to make the best of this Ramadan and make it a salvation for us in the Hereafter. Ameen

What Should Be Malaysia’s Priority:

2011-06-24T21:37:00.000+08:00

What Should Be Malaysia’s Priority:
The 13th General Election or
Preparing The Economy
For The Final Phase of The Global Tsunami,
Total Financial Meltdown?
By Matthias Chang

In my past postings to this website and my global Red Alerts, I had repeatedly
warned the Barisan Nasional Government not to hold any General Elections in
2011 as I had reasoned as far back as November 2010 that the final phase of the
Global Tsunami would hit us at the earliest by the end of the first quarter.
This has happened as forecasted and now in the last few days the crisis
has deepened to the extent that Central Banks the world over are in panic
mode. The beginning of the 3rd quarter, in July there will be formal
recognition by global creditors that the US has defaulted and the bond
markets will unravel. The US federal debt will eclipse the GDP for the first
time since World War II.
The tipping point will come when China panics. Presently, its leaders are putting
up a brave front. If truth be told, they are making preparations for intensive care
for their own survival.
This time round the crisis will be so devastating that what transpired in
2008/2009 would be considered mild in comparison.
This is common sense. If you are a banker / creditor and your principal borrower
is spending beyond its means, continue to borrow from other creditors to make
up the short fall and its assets mortgaged to secure its indebtedness continue to
depreciate to the extent that its value is less than the loan extended, what would
you do?
Even your threats to use the baseball bat will have no effect. USA is dead meat!
My critics will as usual condemn me as a rumour monger and a perpetual bear.
But where were they in 2006, 2007 and even in 2008 when the crisis was full
blown? They got it wrong. Bank Negara got it wrong. The Treasury got it wrong.
The financial community and financial think tanks got it wrong. So how can you
trust these pundits, these experts?
As the only analyst in Malaysia that got it right at the end of 2006 (and not by
hindsight, as evident by the numerous articles by these so-called experts postcrisis),
my critics have no legs to stand on to criticise me on my detail analysis
and as published in my book, “The Shadow Money-Lenders”.
My most conservative analysis at end of 2006 was that there were toxic assets
(junks, toilet papers) floating in the global shadow financial system to the value of
US$20 trillion. I still hold on to the view that the true value of the toxic assets is
approximately US$40 to US$50 trillion. Be that as it may, these figures are
meaningless to the Joe Six-packs and Main Street. It is beyond their imagination.
The toxic assets are still buried deep in the balance sheet of the Too Big To Fail
Banks, Hedge Funds and other major central banks.
A leading financial journal has estimated that “the world had about 30 trillion USD
in ghost assets” of which half went up in smoke between September 2008 and
March 2009. It is their considered opinion that the balance of this 15 trillion USD
ghost assets will “vanish” between July 2011 and January 2012. What I am trying
to say is that, all these fake assets that have been shoring up the credibility of the
global banks will have to be removed from the balance sheet and marked down
as junk, toilet paper.
This will be messy. Imagine banks’ balance sheets exposed as worthless!
The problem is compounded by the massive debts of the once mighty USA and
that of the United Kingdom and Japan. These three countries will cause more
problems than that of Greece, Spain, Portugal, Ireland and Italy (PIIGS)
combined. The former debts are in the US$ trillions (minimum US$ 20 trillion)
whereas the latter are in the US$ billions.
Food for thought - why would China expose her financial flanks and jeopardise
her exit strategy from moribund dollar assets and massive holdings of US$ toilet
papers when the only viable short-term solution / alternative is the Euro?
QEI, QEII and the inevitable QEIII in whatever form is a recipe for disaster, the
likes of which we have never witnessed before! The dynamite that will blow this
global casino to smithereens will be the trillions of US toilet papers (digital or
otherwise) that have flooded the financial system.
And when 100 or more of the major US cities default in the 2nd half of 2011, there
will be blood and social upheaval on Main Street.
US$ asset holders will suffer massive heart attacks.
Yet, I have not seen any pre-emptive measures taken by the Barisan Nasional
Federal Government and for that matter the Pakatan Rakyat State Governments
to prepare the country for this unprecedented financial upheaval. All are too
occupied to retain and to seize more power.
The country is in a state of delusion.
This is best reflected in the property sector of our economy. There is not one day,
that the major newspapers have not advertised glossy advertisements of new
housing and commercial developments, with link houses being priced over a
RM1 million!
July 2011 when viewed with hindsight in December 2012 will be remembered as
the peak in our property bubble. The leading players will suffer irreparable
financial losses and most would not be able to recover from the devastation.
Although belated attempts have been made to cool the consumer debt market,
especially the credit card market, the problem of consumer debts has been
glossed over and there are no viable solutions in sight. Middle-class civil servants
will be hit the hardest. They have been living beyond their means. The lower end
will also suffer, as they have been seduced to buy the additional car because of
cheap hire-purchase finance. But when the crisis descends upon them and they
cannot keep up with the installments, there will be massive repossessions.
Why is Malaysia in a state of denial? Why have the Federal and State
governments fail to adopt the correct strategy?
It is because they have misdiagnosed the economic and financial trends. The socalled
experts are of the view that we are in the “recovery trend” post the
financial crisis of 2008/2009.
But, the actual trend is that of a secular bear market that will last another decade
with occasional short-term “lifts” i.e. the trend is down and we have not reached
bottom. Anyone who is investing and borrowing for an uptrend will be
slaughtered. Anyone that is preserving his/her wealth (by consolidating and
deleveraging / getting out of the market) will survive, but barely.
Corporations on expansion mode are committing Hara Kiri as their cash flow
expectations will not be realised. They are all highly geared, enticed to borrow
and invest by sophisticated spin. The inevitable bankruptcy will follow with banks
screaming for bailouts as non-performing loans in the US$ billions pile up to the
ceiling, just when the shits hit the fan!
This is the stark reality.
If you need proof, just examine the price trends for Gold. In spite of massive
manipulation by central banks, BIS, IMF and global hedge funds to suppress the
price of gold, it has rebounded time after time and continued to gain strength
from short term lows. Gold will hit US$2,000 in the near future and will explode in
2012.
The Federal Reserve, the Bank of International Settlements (BIS), the IMF, the
World Bank and other central banks will collectively rig the currency and stock
markets to create false rallies but they won’t last and if you get sucked in by this
ploy, whatever remaining assets that you have will be wiped out.
So my message to all Malaysians – don’t be fooled by the political rhetoric and
hype by the politicians. Right now, their agenda is to survive and get re-elected
and continue to ride on the gravy train.
Go out and confront the politicians, be they from the Barisan Nasional or Pakatan
Rakyat. Demand from them answers to your queries and solutions to the coming
financial crisis.
Demand from them why till now they have not addressed the issues raised in this
Red Alert.
Demand from them whether there will be massive bailout of financial institutions
and the bloated and too big to fail corporations.
Demand from them solutions, effective solutions to the impending explosion of
food prices.
Do not be fooled by cheap promises and instant patronage by both sides of the
political divide. At the end of the day, it is about power. Trust me, I know from
experience. For them, the only issue is about power – to retain and grab more
power.
Now is the time when you can leverage your demands. Don’t sell your vote for
crumbs.
Now is not the time for elections. Now is the time when you should demand
pre-emptive actions to secure your future, your children’s future and your
grand-children’s future.
When they have the right answers, then and then only they deserve to be elected
and form the government.

If they don’t listen, kick their ass!

Canadian Dollar Drops as Crude Oil, Stocks Fall on Economic Slowdown Signs

2011-06-11T11:11:00.000+08:00

Canada’s dollar fell against its U.S. counterpart on concern the global economy is slowing, even as a government report showed Canada’s jobless rate unexpectedly fell in May to the lowest level since January 2009.

The loonie, as the currency is known for the image of the aquatic bird on the C$1 coin, also dropped as oil, Canada’s biggest export, and stocks fell.

“Even though the number this morning was a little bit stronger, especially in the full-time component, I don’t think it changes what’s going on as far as everything else,” said David Love, a trader of interest-rate derivatives at Le Groupe Jitney Inc. in Montreal. “All our eyes are on the U.S. and what’s going on in Europe.”

The loonie depreciated 0.7 percent to 97.99 cents versus the U.S. currency at 5 p.m. in Toronto, from 97.30 cents yesterday. One Canadian dollar buys $1.0205.

The Standard & Poor’s 500 Index dropped 1.4 percent after adding 0.7 percent yesterday, its first gain after six consecutive days of losses. Crude oil for July delivery decreased 3 percent to $98.85 a barrel in New York after rising 1.2 percent yesterday.

“Canada’s ties to commodities certainly point to a weaker loonie, despite the stronger employment number this morning,” said Dean Popplewell, an analyst at the online currency-trading firm Oanda Corp. in Toronto.
Cross Trades

Among its most-traded counterparts, the Canadian dollar fell the most against the yen, dropping 0.8 percent. The loonie gained against the euro for a third consecutive day, advancing 0.4 percent to C$1.4059.

The loonie strengthened earlier today after a Statistics Canada report showed the nation’s unemployment rate fell to 7.4 percent last month from 7.6 percent in April.

Employers added 22,300 jobs last month after an increase of 58,300 in April. The median forecast of 27 economists in a Bloomberg News survey was for a gain of 20,000.

“From the economic side, I’m not seeing this as a huge jump, but it definitely is positive,” said C.J. Gavsie, managing director for foreign-exchange sales at Bank of Montreal’s BMO Capital Markets unit in Toronto.

Government bonds rose, pushing the yield on the 10-year benchmark security down three basis points, or 0.03 percentage point, to 3 percent. The 3.25 percent note that expires in June 2021 added 25 cents to C$102.10.

Bank of Canada

The loonie rallied on May 31, when the Bank of Canada added language about a potential increase in borrowing costs for the first time since September, saying it will raise rates “eventually” as the economy recovers.

The target for overnight loans between commercial banks remained at 1 percent, where it has been since September. The U.S., to which Canada ships about 75 percent of its exports, hasn’t changed rates since December 2008.

“The domestic side of the Canadian economy just doesn’t need emergency low interest rates, which is not something you can say with the U.S.,” said David Watt, senior currency strategist at Royal Bank of Canada’s RBC Capital Markets unit in Toronto. “The U.S. is our largest trading partner, and that’s probably one of the reasons why the Bank of Canada hasn’t raised the rates more.”

The loonie fell against the greenback on June 3 after U.S. Labor Department figures showed payrolls increased by 54,000 jobs in May after the addition of 232,000 in the previous month. The U.S. unemployment rate increased to 9.1 percent.

To contact the reporter on this story: Cecile Vannucci in New York at cvannucci1@bloomberg.net

Brent oil trading near $118, US crude stocks head lower

2011-06-11T11:10:00.000+08:00

Brent oil trading near $118, US crude stocks head lower

Brent oil prices are trading back near $118 a barrel this morning after yesterday’s OPEC meeting boosted crude futures, whilst US oil stocks fell nearly 5 million barrels last week, adding fuel to high oil prices.

Latest Brent Oil Price

In London, Brent crude oil futures for July 2011 delivery was trading at $118.11, 07.50 GMT this morning on the ICE Futures Exchange after jumping one percent in trading on Wednesday.

In America, domestic crude oil stocks fell by 4.8 million barrels, according to the US EIA (Energy Information Administration) surpassing analysts’ expectations for a modist 300,000 barrel decline.

“What this means is that there will be less spare capacity to handle another unforeseen outage. The market will price in this risk premium, and the way they do that is by speculators coming in and buying it up.” said Tony Nunan, a risk manager with Tokyo based Mitsubishi Corp.

Meanwhile, Wednesday’s OPEC meeting also boosted Brent and WTI oil prices as member countries failed to agree any oil output increase.

FOREX: Dollar Posts a Tentative Bounce from Larger Decline as the S&P 500 Threatens Collapse

2011-06-07T13:01:00.001+08:00

Dollar Posts a Tentative Bounce from Larger Decline as the S&P 500 Threatens Collapse
The economic docket for the opening trading day of the new week was light for the US dollar; but there aren’t many specific indicators that can meaningfully shift the currency’s bearing anyway. Far more important are the larger fundamental themes; and that is exactly what was nudging the greenback Monday. Looking to the Dow Jones FXCM Dollar Index, the currency put in for a modest advance after more progressive declines on the previous Thursday and Friday. The nature of this move is corrective – as was the ‘positive’ performance through the first half of last week following the 2 percent drop that preceded it. What this tells us is the market is not yet ready to get behind the dollar’s recovery whether its counterpart be core currencies (which are still advancing against the dollar), fellow safe havens (also still gaining ground on the greenback) or commodity bloc members (who have weakened recently). Yet, there is reason to believe a bigger shift for the dollar is just beginning.
If we had to identify the most influential, potential fundamental driver for the dollar (for immediate impact as well as durability); it would undoubtedly be a shift in US rates. However, even the interest in the withdrawal of austerity and a slow return to rate hikes for the US traces back to risk appetite trends. A rise in rates moves the dollar up the yield spectrum – not necessarily putting it amongst the high yield group; but certainly removing it from the ideal funding currency category. Perhaps the earliest speculation of what market impact a stimulus withdrawal will have is hitting the capital markets first. Considering the US equities market is most dependent on stimulus at its precarious heights, it is reasonable to assume that investors will look to secure gains and avoid a deep correction in this particular area of the markets first. That said, the S&P 500 put in for a meaningful follow up to this past Friday’s close below an advancing trendline that had defined the market’s advance since QE2 speculation started to carry the market back in September. Now below 1,300, there is a distinct possibility that risk aversion itself is catalyzed and provides an immediate boost to the dollar’s fading safe haven appeal. If that is indeed the case, it would be reasonable to expect the Nikkei 225 to drop below 9,320 and the German DAX Index to drop through 7,000.
If there is a risk aversion move; the impact on the greenback will be quick but ultimately limited. Though the currency is still the world’s largest reserve currency; it does represent the same safe haven currency it was five years ago, one year ago or even six months ago. To sustain an advance, the foundation for a sentiment shift has to trace back to the impact the Fed’s eventual unwinding of stimulus will have global investor sentiment. Dallas Fed President Fisher reminded the market that there was still a hawkish voice amongst the policy ranks; but yields (Treasury and Libor) have yet to reflect a similar belief from the market. As we move closer to the QE2 expiry, this concern will gain more traction.

NEW YORK (MarketWatch) — U.S. stocks extended losses into a fourth straight session Monday, with shares of banks, energy and airline stocks among those hardest hit, as Wall Street fretted about the economy.

The Dow Jones Industrial Average DJI -0.50% ended down 61.3 points, or 0.5%, to 12,089.96, with 23 of its 30 components losing ground. Decliners were led by Bank of America Corp. BAC -3.99% , off 4%, and J.P. Morgan Chase & Co. JPM -2.50% , down 2.5%.

The Standard & Poor’s 500 Index SPX -1.08% declined 13.99 points, or 1.1%, to 1,286.17, its first close below 1,300 since March 23, and break through some key support levels. It’s now more than 5% below its bull-market high reached on April 29, and also has fallen through some other low points.

“The intraday support was really at the February and April intraday lows around 1,293. Traders will be looking for a violation of this support to perhaps trigger some stop-loss selling,” said Marc Pado, U.S. market strategist at Cantor Fitzgerald.

After 1,293, the next target is 1,275, Pado said.

Elliot Spar, market strategist at Stifel Nicolaus & Co., cautioned that “when a well-advertised number is breached on the upside or downside, you always have to be on alert for a potential reversal.

“The market finds a way of humbling the most participants,” he said.

The S&P 500’s energy subsector fell 2.02%, following a drop in oil prices ahead of an OPEC meeting later this week, with crude futures off $1.21 to end at $99.01 a barrel on the New York Mercantile Exchange. Read more about oil prices.

Financial stocks fell 2%, hit by worries about rising capital requirements as the economic outlook dims. Read more on energy stocks and read more on financial stocks.

The Nasdaq Composite Index COMP -1.11% closed down 30.22 points, or 1.1%, at 2,702.56.

Apple Inc. AAPL -0.34% , which accounts for about 7% of the index, slid 1.6%. Chief Executive Steve Jobs made a public appearance in San Francisco during the session to tout a music-streaming service Apple is counting on for growth. But the consumer computing company did not reveal any new hardware products, disappointing some observers. Read more about Apple, Steve Jobs.

For every stock that advanced, four fell on the New York Stock Exchange, where 959.2 million shares traded hands.

Airline stocks also weighed on the market, with shares of AMR Corp. AMR -3.69% and Delta Air Lines DAL -0.43% tumbling more than 3% after an industry group sharply trimmed its profit outlook for 2011, citing disasters in Japan, uncertainty in the Middle East and North Africa and the cost of fuel. Read more about airline sector.

Equities have declined for five consecutive weeks, the longest such slide for the Dow industrials since July 2004.

Kate Gibson is a reporter for MarketWatch, based in New York.

ct....

2011-06-07T12:55:00.001+08:00

Oil rises to near $102 on weaker US dollar

2011-05-31T19:40:00.001+08:00

By ALEX KENNEDY, Associated Press – 1 hr 48 mins ago

SINGAPORE – Oil prices rose to near $102 a barrel Tuesday in Asia as a weakening U.S. dollar made crude cheaper for investors with other currencies.

Benchmark oil for July delivery was up $1.27 to $101.86 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange.

The benchmark contract last settled Friday up 36 cents at $100.59. Markets in the U.S. were closed Monday for the Memorial Day holiday.

In London, Brent crude for July delivery was up $1.04 to $115.72 a barrel on the ICE Futures exchange.

Crude has risen from $96 last week amid a depreciating U.S. currency. The euro rose to $1.4406 on Tuesday from $1.4287 late Monday.

"Bottom line, as goes the dollar, so goes oil, in the opposite direction," energy consultant The Schork Group said in a report.

Traders are also eyeing the U.S. economy, where recent manufacturing and consumer spending indicators have been less than robust.

However, sluggish economic indicators are a mixed signal for oil traders. A weaker economy would suggest less demand for crude, but it also tends to reduce confidence in the dollar, and a falling U.S. currency usually boosts oil prices.

"The strength and sustainability of the U.S. recovery is in question," The Schork Group said. "But the Catch-22 is poor economic headlines are actually supporting higher oil prices vis-a-vis the U.S. dollar."

Oil has dropped from a 30-month high near $115 a barrel on May 2.

In other Nymex trading in June contracts, heating oil gained 2.3 cents to $3.01 a gallon and gasoline added 2.7 cents at $3.12 a gallon. Natural gas futures rose 7.7 cents to $4.60 per 1,000 cubic feet.

Have Gold Prices Stopped Falling? - 27 May 2011

2011-05-30T13:09:00.000+08:00

Record highs in Euro gold prices suggest the market has found a floor...

WE'VE SEEN Gold Prices fall from $1,578 to $1,492 in recent weeks – a 5.45% drop. Gold Prices in the Euro it fell from €1,065 to €1,042 – a fall of 2.16%. The fall of gold in the Euro painted a more accurate reflection of supply and demand, because the Dollar rose against the Euro, as gold was falling, reckons Julian Phillips at GoldForecaster.

This was simply a correction, provided the Gold Price has stopped falling now. A fall of 10% is a proper correction and a mid-trend correction fall should be around 20 to 30%.

The fall appears to have been caused by a big investor and his following virtually dumping around 37 tonnes in a two week period into a market that is used to seeing around 6 tonnes a day from the producers.

Pity he didn't have a better dealer. This seller appears to have completed his sales (if it was George Soros, then he has completed them, for he only held 30 tonnes apart from gold shares).

The fall from just about $50 to $32 rattled the entire market. After all, a fall of 36% is a major trend correction were it broad based from many investors over a period.

But this drop was again due to awful dealing with 1,000 tonnes from the Silver Trust's holdings coming onto the market over two weeks, with the bulk dumped into the market in the second week together with another 7 tonnes from similar thinkers.

With the Silver Price back above $37 the drop is now down to a fall of 26% from the peak of $50. Again the selling has largely stopped with two-way traffic now in play.

The gold market is a global, well centralized market based in London, where heavy sellers and buyers are brought together quickly and a well-priced deal made that cuts out the bulk of the volatility we see in the silver market.

The London Fix is where potential buyers and sellers of physical gold sit on the end of their telephones twice a day and see what's on offer and what the bids are for it. Even the appearance of a large amount such as we saw from the States is swallowed up quickly and in an orderly fashion.

The value of an ounce of gold at 41 times the price of an ounce of silver increases the liquidity for the big players in the market, making it easier to move large amounts quickly.

Silver has nowhere near that level of liquidity or depth of investors. The type of investor is wide from institutions to industry from the small investor to the large one and a fully global market at that.

However, the day-to-day dealings, while well-organized, are not sufficiently large in two-way traffic to accommodate the sudden appearance of 1,000 tonnes in two weeks. This is why the market is so volatile and swings so widely, compared to the gold market.

The silver market will, over time, see a lessening of volatility once prices are higher and silver more accepted as a precious metal more closely linked to gold. We would then expect to see Silver Prices move far closer to those of gold.

Bearing in mind that the fundamentals for silver's traditional uses and industrial applications are either for investment, jewelry or much needed applications in industry, the fundamentals for silver are just as they were while the Silver Price was rising and are unlikely to change. These users will be delighted with any pullback, but tend to be price-insensitive.

That means they need silver no matter what the price. As to the investment demand for silver, this is at its largest from the emerging world and is likewise relatively price-insensitive. People from this part of the world are buying in line with their increasing income and ability to buy. The price rises have simply confirmed the wisdom of such a policy.

The same applies to the gold market, but with the added feature that central banks are buyers as well. These too are price-insensitive buyers, simply taking up gold as it appears on the market, without chasing prices.

The prices of both gold and silver have risen from their recent bottoms and have begun to rise. This is a classic 'floor' finding exercise.

Silver has been the slower mover and has waited for gold to lead the way. In the Dollar the Silver Price is recovering and is now moving through the $37 level. In the Dollar the Gold Price still has another $50 to rise to its peak levels too. This is another 3% more. Silver at $37 still has to rise another 26% to reach its peak.

But what is hiding their moves has been the rally in the Dollar itself. In the Euro silver fell from €33.56 to €22.53 a fall of 33%. It now stands at €26.3 a fall of 21.6%. This shows it is recovering faster in percentage terms, once we extract the Dollar gyrations.

It is clear then that support is now effective and holding up both the prices of gold and silver in the market. Especially if we look at the Euro Gold Price – which set a new record high this week.

Dollar Rebound Hinted as Stock Positioning Points to Collapse in Risk Appetite

2011-05-26T23:33:00.001+08:00

By Ilya Spivak, Currency Strategist

25 February 2011 03:48 GMT

US DOLLAR INDEX – The greenback is testing trend-defining support at a rising trend line set from the record low in March 2008, with a break lower amounting to a material bearish shift in long-term positioning. Likewise, the boundary is a logical place for a reversal higher and the currency’s behavior here over the coming days and weeks will be critical in determining where the benchmark unit (and the major currencies in general) are heading.

MSCI WORLD STOCK INDEX – Prices are testing a critical support level at the confluence of two significant trend lines – a longer-term one set from August and a minor one dating back to December – as well as 23.6% Fibonacci retracement of the rally from the late-November swing bottom. Negative RSI divergence hints the path of least resistance favors the downside, suggesting a major collapse in market-wide risk appetite may be just around the corner.

CRUDE OIL – Prices spiked higher but overall positioning remains little changed, with crude trapped between the 161.8% Fibonacci extension of the downswing from late January 2010 ($98.40) and a rising trend line connecting major highs since June (now at $95.53). Renewed upward momentum targets the 200% Fib at $101.83 while a break back below the trend line exposes $92.84.

GOLD –Prices continue to consolidate below triple top resistance in the $1411.75-1424.60 region. Negative RSI divergence hints at the likelihood of a downside scenario. Initial support lining up at $1393.30 (the Jan 13 high) and is reinforced by a rising trend line set from the January low. Penetration below this barrier initially exposes $1376.20.

For real time news and analysis, please visit http://www.dailyfx.com/real_time_news

To receive future articles by email, please contact Ilya at ispivak@dailyfx.com

THE RINGGIT AND THE DOLLAR

2011-05-24T14:29:00.001+08:00

THE RINGGIT AND THE DOLLAR
by Dr. Mahathir bin Mohamad on Thursday, 12 May 2011 at 06:56
1. The dollar i.e. the US dollar has been depreciating against the Ringgit. It is now hovering just below RM3.00 to 1 USD. Obviously this currency crisis is not over yet. Obviously the US is still in trouble. Europe is also in trouble and so is the rest of the world. This is the longest financial crisis in history. It is now in the fourth year.

2. This crisis started in the US in 2008 with the banks going bankrupt because the sub-prime loans defaulted and Lehman Brothers went bankrupt. Since then the US Government has been printing money by the trillions to bail out banks, insurance and automobile companies.

3. Currently Greece is still unable to repay loans caused by the switch to the Euro.

4. Malaysia appears to have escaped much of the crisis. Our currency is in fact getting stronger and our economy is growing at a good rate.

5. Why has a serious currency crisis affected the developed countries and not as much the developing countries? The answer is that we have not been trying to get rich quick through playing the money market.

6. I am not a financier of course and my knowledge about finance can be written on the back of a postage stamp. So no one should take what I say about finance seriously.

7. Still, I would like to hazard a theory.

8. The US was, after the Second World War, the richest nation. They have companies like General Motors, General Electric, Caterpillar Tractors, McDonnell Douglas & Boeing, great manufacturers of household appliances, radios and television, machine tools, precision instruments and of course a massive weapons industry.

9. They were so confident of the superiority of their industries that they did not mind teaching the Japanese the importance of quality and expertise in manufacturing.

10. To cut a long story short, the Japanese mastered manufacturing so well that their high quality but competitive products displaced those of the Americans and much of the Europeans in the world market.

11. After Japan came Taiwan, South Korea and then China. The products of these countries even displaced American and European products in their own countries. The last straw is the invasion of East-Asian cars into the American and European markets.

12. Instead of trying to compete, the Americans in particular, and the Europeans opted to surrender the markets to the Asian newcomers. But American and European economies continued to grow and they remain as prosperous as ever.

13. To remain ahead in wealth the Americans and Europeans invented a new market - the money market. They invented ways of making money from money. These they call products although they cannot be eaten or used.

14. The banking system they created was for the purpose of lending money to finance business enterprises. To do this the banks were allowed to lend more money than they have as capital, assets and deposits. In effect this means the banks could create money. In fact in the past banks issued banknotes to pay for goods and services. Later the banknotes were replaced by cheques. Everything can be paid with cheques. No cash is needed any more.

15. It was fine as long as the Government oversees the money created by the banks and limits it to ten times the banks assets. Then the American Government decided that it should not supervise the banks. The market would regulate itself.

16. Freed of Government oversight the banks began to lend far more than ten times their assets. They lent even to people with no income and no capacity to repay the loans, especially for houses.

17. The loans were then either mortgaged or insured. The belief was that they were safe. In any case if the borrower defaulted the property would be worth more than the loans as property prices seem to appreciate all the time.

18. Other ways of making money were invented. Hedge funds, carry trade, currency trade, mergers and acquisitions, investment in 'emerging markets' (formerly known as developing countries), junk bonds, securitised mortgage, commercial paper, short selling, index funds, sub-prime loans, private equity funds, repo market, structured investment vehicles, etc etc

19. Any of these things can give huge profits. For the astute players any of these things can make them millionaires or billionaires overnight, practically overnight.

20. The money market products yield nothing substantial. They create no jobs, no tangible products, no trade in goods or services, no spin-offs in terms of business, no transportation of goods by land, sea or air.

21. Yet the size of the transactions in monetary terms is mind-boggling. The trade in currencies is said to amount to four (4) trillion US dollars a day. It is the size of the total German productivity for a year. Yet no jobs are created, no goods or services are produced, no movement of anything is seen.

22. Of course the people involved in the trade make billions of dollars. Operating out of tax free havens, they report to no one and pay no tax.

23. The money market players and the billions they make contribute to the high GDP and the Per Capita incomes of America and Europe.

24. Then came the collapse. The bubble bursts. And there was nothing spilling from the burst bubbles.

25. The money market players know nothing about other business, about the production of goods and service, about real trade in these things. Actually all of them have become poor.

26. And so they resort to printing money, to remain rich. But the money they print is as valuable as toilet paper.

dave stacy

2011-05-23T15:01:00.001+08:00

Dave, a staunch Christian from West Virginia, lived in a Muslim community in Dearborn, Michigan, for 30 days.

Before going to live with Shamael and Sadia, Dave had scant interaction with any Muslims. "I picture a woman with a sheet or hat and her face covered," he said. "I think of men with AK-47s." But Dave knew stepping out of his comfort zone was an amazing opportunity. "It's going to put me, probably, in one of the most vulnerable positions I have to be in," Dave explained, "and I expect to really grow from it."

But the cultural discomfort cut both ways: Shamael was uncomfortable with the prospect of Dave's being alone with Sadia. As Shamael explains, "It's just more of a religious custom that one doesn't stay in a room alone with another person from the other sex."

Dave did stay for the full 30 days and began to embrace Muslim culture. He wore traditional Muslim clothing, studied the Koran daily, spoke Arabic, grew a beard and ate Middle Eastern food.

At the end of his 30-day dare, Dave had a much different perspective about Islam. "Before, I never really knew anything about Islam and I really never had any thoughts of it. I got married, actually, on September 15, four days after 9/11. I just was so angry right after that event!" Dave admits. "It's a very shallow view: 'Muslims hate us. We hate them. Why don't we just nuke them?' There's never really any thought past that. Unfortunately, people that are so ignorant of the other faiths are often the ones that are most vocal about it."

Now, after essentially becoming a Muslim for 30 days, Dave has a new understanding of prejudice. "I've got a new appreciation for what it's like to be discriminated against," says Dave. "When I was in Michigan, it was strange because the white Americans there looked at me very differently [when I was dressed like a Muslim,] often with very mean looks on their faces. [Meanwhile,] the Muslim population was very, very distrustful of me. They thought I was part of some conspiracy to make them look bad."

Of course, this was an interesting experience for Dave's hosts as well.

Shamael says that he found it difficult when he informed Dave of the rules preventing unmarried men and women from being alone together. "As a host, we should be welcoming and we should be inviting— it doesn't matter who it is," explains Shamael. "But with the religious and cultural upbringing we have, we felt it was the appropriate thing to tell him. 'Okay, the man has to go or the woman has to go.' Men and women just don't stay together in one room alone."

In another eye-opening experience, Shamael recounts a conversation he had with Dave. "I asked him a question. I said, 'Name five Muslims that you know,'" Shamael says. "He told me, 'Osama bin Laden, Saddam Hussein...' And I'm, like, 'Oh, my God: We're all terrorists.' And I said, 'What about Muhammad Ali? What about Hakeem Olajiwan? What about these more prominent Muslim figures in America?' And I realized, at that point, Muslims need to do a better job about explaining their faith, about being better American citizens, about taking the lead in addressing different social issues and whatnot."

Zimbabwe To Trade Diamonds For Gold As It Prepares To Launch Gold-Backed Currency

2011-05-21T13:10:00.000+08:00

Submitted by Tyler Durden on 05/20/2011 11:35 -0400

Hyperinflation
International Monetary Fund
Reserve Currency
World Bank

A week ago we presented the idea floated by once hyperinflationary Zimbabwe, oddly jeered by most, that the country is seeking to move to a gold-backed currency, adding, somewhat surrealistically, that the "days of the US dollar as the world's reserve currency are numbered." And if anyone should know a hyperinflationary basket case, it's Zimbabwe. Well, today this bizarre story just went fuller retard, after the country announced that it may exchange diamonds for gold "so that it can have a gold-backed currency, according to a recent proposal from the governor of Zimbabwe’s central bank." Indeed we speculated previously why: "Zimbabwe, a country rich in natural resources, took so long to figure out that it was nothing but a puppet in the hands of western monetary interests." Well, others are now getting this idea - Commodity Online reports that "The country is a resource hub: It sits on gold reserves worth trillions. It has the world’s second largest reserves of platinum, has got alluvial diamonds that can fetch the nation $2 billion annually and even boasts of chrome and coal deposits." And since Zimbabwe is now fully on board this whole "pioneering" thing perhaps it should just go ahead and create the first diamond-platinum backed currency. Just don't give China and Russia ideas about floating a new reserve currency that actually has real commodity backing. What's that, you say? They are launching one soon? Oh well.

From Commodity Online:

The Zimbabwean dollar is no longer in active use after it was officially suspended by the government due to hyperinflation. The United States dollar, South African rand, Botswanan pula, Pound sterling, and Euro are now used instead. The US dollar has been adopted as the official currency for all government transactions with the new power-sharing regime, says Wikipedia.

But the central bank of Zimbabwe—Reserve Bank of Zimbabwe (RBZ)—believes that the US dollar is no longer stable.

According to Dr Gideon Gono, RBZ Chief, the inflationary effects of United States’ deficit financing of its budget may impact foreign countries and would lead to a resistance of the green back as a base currency; cited newzimbabwe.com.

Writing in a blog in New Zimbabwe, Gilbert Muponda, an entrepreneur based out of Zimbabwe has welcomed the proposal of a gold-backed Zimbabwean currency. He has applauded the proposal of the central bank governor to sell diamonds for gold.

On the other hand, for the country to move to some semblance of a gold standard, it may wish to consider shifting form a despotic dictatorship controlled by Robert Mugabe to something a little less "centrally planned."

The government’s protectionist measures have kept the mining companies at bay. The government wants the foreign miners to sell controlling stake in ventures to local blacks, which is obviously frowned up on by all. The companies, given the uncertain situation, have refrained from investing further in expansion activities in Zimbabwe.

The country cannot access foreign credit as the ZIDERA Act passed by the United States in 2001 blocks US entities from trading with certain Zimbabwean institutions and individuals This has forced the US representatives in lending agencies like World Bank, IMF, IFC, and ADB to take a favorable stance when it comes to Zimbabwean credit requests.

That said, where there's a will there's a way. And since this story refuses to go away, it probably means that Zimbabwe will definitely give it the old college try. Once again, the question is not what happens in Zimbabwe, but elsewhere, should the experiment prove to be even remotely successful.

FOREX: Japan Enters Recession, NZ Dollar Gains on Budget Surplus Outlook

2011-05-19T18:51:00.001+08:00

Critical Levels

CCY	SUPPORT	RESISTANCE
EURUSD	1.4084	1.4330
GBPUSD	1.6016	1.6274

The Euro was little changed in overnight trade, rising to test above 1.43 to the US Dollar in the first part of the session as Asian stocks followed Wall Street higher to weigh on safety-linked demand for the greenback but promptly erasing the advance as shares reversed course in the aftermath of Japan’s GDP figures (see below). The British Pound mirrored the single currency, rising toward the 1.62 figure but failing to hold ground ahead of the opening bell in Europe. We are looking for EURUSD and GBPUSD selling opportunities and remain long USDJPY.

Asia Session: What Happened

GMT	CCY	EVENT	ACT	EXP	PREV
23:01	GBP	Nationwide Consumer Confidence (APR)	43	46	45 (R+)
23:50	JPY	Gross Domestic Product (QoQ) (1Q)	-0.9%	-0.5%	-0.8% (R-)
23:50	JPY	Gross Domestic Product Annualized (1Q)	-3.7%	-1.9%	-3.0% (R-)
23:50	JPY	Gross Domestic Product Deflator (YoY) (1Q)	-1.9%	-1.8%	-1.6%
23:50	JPY	Nominal Gross Domestic Product (QoQ) (1Q)	-1.3%	-0.7%	-1.1% (R-)
23:50	JPY	Housing Loans (YoY) (1Q)	2.7%	-	3.2%
1:00	AUD	Consumer Inflation Expectation (MAY)	3.3%	-	3.5%
1:30	AUD	Average Weekly Wages (QoQ) (FEB)	1.0%	1.2%	1.4% (R+)
1:30	AUD	Average Weekly Wages (YoY) (FEB)	3.8%	3.8%	3.9%
2:00	NZD	New Zealand Releases Annual Budget	-	-	-
4:30	JPY	Industrial Production (MoM) (MAR F)	-15.5%	-	-15.3%
4:30	JPY	Industrial Production (YoY) (MAR F)	-13.1%	-	-12.9%
4:30	JPY	Capacity Utilization (MoM) (MAR)	-21.5%	-	2.9%
5:30	JPY	Nationwide Department Store Sales (YoY) (APR)	-1.5%	-	-14.7%
5:30	JPY	Tokyo Department Store Sales (YoY) (APR)	-5.5%	-	-21.5%

Currency markets were relatively quiet in overnight trade, with the New Zealand Dollar outperforming after the Finance Minister Bill English said in the annual Budget that the government will return to surplus by June 2015, easing sovereign debt fears that have plagued the island nation, prompting ratings agencies Standard and Poor’s and Fitch to put to downgrade their credit outlooks to “negative” in November 2010 and July 2009, respectively. The currency rose as much as 0.9 percent against its top counterparts.

Japanese Gross Domestic Product figures showed the country entered into recession as the economy shrank 0.9 percent I the first quarter having slumped 0.8 percent in the three months through December 2010. The outcome had little immediate impact on the Japanese Yen despite the worse-than-expected outcome considering a generally dismal print was widely expected considering the island nation suffered its worst earthquake on record during the period in question. The disaster took a heavy toll on economic activity, shuttering businesses and disrupting export deliveries. Still, the currency would go on to underperform as bearish momentum built throughout the session.

Euro Session: What to Expect

GMT	CCY	EVENT	EXP	PREV	IMPACT
8:30	GBP	Retail Sales ex Auto Fuel (MoM) (APR)	0.8%	0.2%	Medium
8:30	GBP	Retail Sales ex Auto Fuel (YoY) (APR)	2.2%	0.9%	Medium
8:30	GBP	Retail Sales inc Auto Fuel (MoM) (APR)	0.8%	0.2%	Medium
8:30	GBP	Retail Sales inc Auto Fuel (YoY) (APR)	2.5%	1.3%	Medium
9:00	EUR	Italian Current Account (€) (MAR)	-	-6337M	Low
9:00	CHF	ZEW Survey (Expectations) (MAY)	-	8.8	Low
10:00	GBP	CBI Trends Selling Prices (MAY)	-	36	Low
10:00	GBP	CBI Trends Total Orders (MAY)	-9	-11	Low

UK Retail Sales headline the calendar in European hours, with expectations calling for core receipts (excluding auto fuel) to rise 2.2 percent in the year through April, marking the strongest outcome in three months. While encouraging, the release is unlikely to prove particularly supportive for the British Pound.

Echoing concerns raised in an analogous release from the BRC, an outsized year-on-year increase this time around seems to substantially owe to a particularly weak result in April 2010, where retail conditions were marred by uncertainty ahead of the UK general election and which didn’t include Easter holiday spending, as this year’s numbers will. An unexpected drop in the Nationwide Consumer Confidence gauge reported overnight will do little to stem skepticism.

Sizing up sentiment trends, stock index futures tracking key European bourses are well into positive territory ahead of the opening bell, but this likely follows the corrective bounce on Wall Street rather than a genuine reversal of recent weakness. Indeed, as noted in our weekly fundamental trends monitor, “markets don’t move in straight lines and some fits and starts [are] to be expected” as the emerging risk-averse trend centered on the unwinding of bets dependent on cheap QE2 funding ahead of the program’s June expiry runs into short-term bargain hunters.

Meanwhile, futures tracking the S&P 500 are essentially flat, pointing to indecision after the rebound heading into yesterday’s FOMC minutes release. With that outcome proving to be largely a non-event as expected, the larger risk-negative trend established over the past two weeks looks ready to resume, giving the US Dollar scope to resume its advance against the major currencies.

For real time news and analysis, please visit http://www.dailyfx.com/real_time_news

Forex: Euro To Face Increased Volatility As EU Finance Ministers Convene, U.S. Dollar Price Action Remains Mixed

2011-05-16T23:20:00.000+08:00

Currency traders showed a fairly muted reaction to the Euro-Zone consumer price report even as the core rate of inflation topped forecasts in April, and the bullish sentiment underlying the single-currency may continue to deteriorate over the near-term as the central bank softens its hawkish outlook for inflation. The EUR/USD pared the overnight advance to 1.4147 as European Central Bank board member Ewald Nowotny sees inflation falling back towards the 2% target in 2012, and gave back the early-morning rally to 1.4152 to maintain the narrow downward trending chancel carried over from earlier this month. As market participants speculate Greece to restructure its debt, the EU will certainly have to step up its efforts to address the sovereign debt crisis, and currency traders will certainly turn their focus to the two-day meeting in Brussels as euro-area finance ministers attempt to finalize the European Stability Mechanism.

However, the arrest of International Monetary Fund Managing Director Dominique Strauss-Kahn appears to have rattled market sentiment as the region continues to seek foreign aid, and the lack of urgency to contain the risk for contagion will continue to dampen demands for the single-currency as the European periphery face record-high financing costs. In turn, the Governing Council may have little choice but to delay its exit strategy further and the EUR/USD looks poised to test 1.4000 in the coming days as it searches for support. According to Credit Suisse overnight index swaps, market participants are still pricing a zero percent chance for a 25bp rate hike in June, but see borrowing costs in Europe increasing by nearly 100bp over the next 12-months as growth and inflation gather pace.

The British Pound bounced back from a low of 1.6161 coming into the North American trade, and the small rebound in the GBP/USD may gather pace over the next 24-hours of trading as the headline reading for inflation is expected to grow at a faster pace April. As the Bank of England sees consumer prices hitting an annualized 5.0% this year, the central bank is likely to draw up a hawkish tone in its policy meeting minutes which are due out on Wednesday, and currency traders will surely keep a close eye on the vote count as Governor Mervyn King changes his tune for future policy. If we see a growing shift within the MPC, a 5-4 split within the committee should spark a bullish reaction in the British Pound, but the majority may look to carry out their wait-and-see approach for most of 2011 given the ongoing weakness within the real economy. As a result, the GBP/USD may trend sideways throughout the beginning of the week, but comments from the central bank is likely to dictate future price action for the sterling as investors weigh the prospects for future policy.

The U.S. dollar continued to face mixed price action against its major counterparts, but the reserve currency may regain its footing during the North American trade as investors continue to scale back their appetite for risk. As market participants show a subdued reaction to the Empire manufacturing report, risk sentiment should dictate price action across the currency market, and the greenback should benefit from safe-haven slows as equity futures point to a lower open for the U.S. market.

Euro on the Verge of Financial Panic but Risk Appetite Still Holding

2011-05-15T19:06:00.001+08:00

If ever there were a good example of the equilibrium of risk / reward in the markets, it would be the euro. Even though the shared currency does not maintain the highest yield amongst its peers (the Australian and New Zealand dollars are still offering a better return); it nevertheless holds itself out to be as resilient as its more valuable counterparts. What makes this performance particularly remarkable though is that this inherent optimism is maintained despite the euro’s facing some of the worst fundamental risks of any of the majors markets. The financial troubles facing Greece and Portugal specifically present problems that run to the very core of euro and the European Monetary Union it represents. In the balance between the fear and greed that defines this (and every) market, there is clearly a dislocation – and it is primarily centered on the under-appreciation of present and growing risks. If we want to gauge when the euro will finally capitulate, our focus should be expectations for instability.

My general outlook for the euro has been a bearish one for some time; but that does not necessarily mean we should immediately trade that bias. There have been historically many periods when the investing masses have tolerated excessive risk or disregarded exceptional return to maintain a comfortable trend. This seems to defy fundamental reason; but more accurately, it reflects the markets’ prejudices – and the market defines price. As for the financial troubles facing the Euro-region, the problems are well-known which may lead many to believe that they are fully priced in. Yet, the full potential fallout from a debt/currency crisis is unknown and the ECB’s effort to keep inflation under wraps has given short-term speculators a convenient distraction. Should we see the meeting of Eurogroup Finance Ministers over the first two days of the week come up short on a solution for Greece, Portugal and Ireland; it could further bring the region’s troubles into relief.

To understand the market impact from the event; we need to know what is at stake. At the forefront of the discussion, we have Greece which forced the region to the next leg of the financial devolution. Though officials will not to admit as much, it is not unlikely that the country indeed threatened its EU counterparts that it would withdrawal from the monetary restraints (which come along with the currency) unless further accommodation was made. Few other scenarios would encourage such a prompt and compliant vow to offer the member further aid (regardless of the European Commission’s updated forecast for Greece to post a wide-target missing, 9.5 percent debt to GDP ratio this year). However, accommodation for this already deeply indebted nation would certainly encourage Ireland and Portugal (who have recently seen political upheaval as citizens vote on anti-austerity beliefs) to demand the same. With more than 250 billion euros in aid already extended, further rounds of accommodation will only push us closer to the breaking point.

Will this particular meeting provide the shock that changes the balance in the market? The probability is not high. As we have seen with previous meetings with similar stakes, policy officials are adept at playing to funding and currency markets that preoccupied with passive returns with flimsy promises. With Germany refusing further amendment without equivalent guarantees of progress, it is even more unlikely that we will see purposeful improvement. That said, a rebound for the euro is a more likely scenario; but it will die out quickly as few are expecting a roaring recovery from the region’s troubles. The deciding factor may actually lie outside of the euro’s own fundamental influence. Should we see global risk appetite falter, traders will abandon the most overvalued and troubled assets – the euro among them. - JK

Trade Deficit in U.S. Probably Widened in March as Energy Prices Increased

2011-05-11T15:23:00.000+08:00

The U.S. trade deficit probably widened in March as rising commodity prices boosted the value of imports, economists said before a report today.

The gap grew by 2.6 percent to $47 billion, the biggest in nine months, from $45.8 billion in February, according to the median forecast of 72 economists surveyed by Bloomberg News.

Crude oil costs that surged above $100 a barrel for the first time in more than a year and a 9.4 percent drop in the dollar will probably keep driving up the cost of imports. At the same time, the weaker currency is making American goods more competitive to customers in emerging markets from Argentina to China, benefiting manufacturers like United Technologies Corp. (UTX) and Caterpillar Inc. (CAT)

“We should see ongoing strength in U.S. exports because of the weakness of the dollar,” said Sal Guatieri, a senior economist at BMO Capital Markets in Toronto. “Trade should have a fairly neutral impact on the U.S. economy” as both imports and exports climb.

The Commerce Department’s report is due at 8:30 a.m. in Washington. Estimates ranged from deficits of $43 billion to $49.3 billion. The gap has widened from a decade-low of $24.9 billion reached in May 2009 during the recession.

A barrel of crude oil on the New York Mercantile Exchange averaged $102.98 in March, up from $89.74 in February. It reached an intraday high of $114.83 on May 2 and has since dropped on concern world growth may slow.
Dollar’s Influence

The dollar’s 9.4 percent drop from June 7, 2010, to March 31 against a weighted basket of currencies from the country’s biggest trading partners is making American-made goods cheaper abroad and foreign-made goods more expensive in the U.S.

Combined with growth in emerging economies such as Brazil and India, the decrease in the dollar will probably continue to help lift exports.

United Technologies, maker of Carrier air conditioners, last month said 2011 sales would be at the high end of its forecast as pent-up demand stokes growth globally.

“As we look across the globe, we see end markets are improving,” Chief Financial Officer Gregory Hayes said on an April 20 conference call. “Emerging markets continue to lead worldwide economic growth and UTC’s businesses are capitalizing on this opportunity.”

Manufacturing companies have outperformed the broader market this year. The Standard & Poor’s 500 Industrials Index has gained 11 percent this year, compared with a 7.9 percent increase for the S&P 500 Index.
Global Growth

Caterpillar said it expects global economic growth this year of about 4 percent, with developing countries expanding by 6.5 percent and the U.S. by 3.5 percent. The company plans about $3 billion in capital spending this year, with more than half of that in the U.S.

Caterpillar posted first-quarter profit that topped analysts’ estimates and raised its full-year earnings forecast as sales surged in developing countries. The Peoria, Illinois- based maker of earthmoving equipment said its outlook would have been higher had it not been for the March 11 earthquake in Japan.

“Our facilities in Japan were not damaged by the earthquake and tsunami, but many of our suppliers in Japan were,” Chief Executive Officer Doug Oberhelman said on a conference call April 29. “As a result, we are experiencing sporadic production disruptions at many of our facilities around the world.”

A growing trade deficit with China is prompting U.S. officials to seek a solution. Top-ranking delegates from the two countries met in Washington this week amid U.S. pressure for China to allow the yuan to rise against the dollar.

U.S. Treasury Secretary Timothy F. Geithner and Chinese Vice Premier Wang Qishan pledged May 9 to tackle currency, financial services and trade conflicts between the world’s two biggest economies at the start of the two-day Strategic and Economic Dialogue.

Bloomberg Survey

===========================================
Trade Federal
Balance Budget
$ Blns $ Blns
===========================================

Date of Release 05/11 05/11
Observation Period March March
-------------------------------------------
Median -47.0 -41.0
Average -47.0 -50.2
High Forecast -43.0 -35.0
Low Forecast -49.3 -80.0
Number of Participants 72 25
Previous -45.8 -82.7
-------------------------------------------
4CAST Ltd. -47.1 -41.0
ABN Amro -48.3 ---
Action Economics -47.0 -41.0
Aletti Gestielle -47.2 ---
Ameriprise Financial -47.5 ---
Banesto -45.8 ---
Barclays Capital -47.5 -41.0
Bayerische Landesbank -48.0 ---
BBVA -45.3 -45.0
BMO Capital Markets -48.8 -62.5
BNP Paribas -48.5 ---
BofA Merrill Lynch -48.0 -80.0
Briefing.com -45.0 -41.0
Capital Economics -48.5 ---
CIBC World Markets -46.5 ---
Citi -47.0 -40.0
Commerzbank AG -48.5 ---
Credit Agricole CIB -46.8 ---
Credit Suisse -47.0 ---
Daiwa Securities America -48.0 -40.0
DekaBank -47.0 ---
Desjardins Group -48.8 -70.0
Deutsche Bank Securities -44.0 ---
Deutsche Postbank AG -46.0 ---
DZ Bank -47.0 ---
Fact & Opinion Economics -46.0 -62.0
First Trust Advisors -44.3 ---
FTN Financial -46.0 ---
Goldman, Sachs & Co. -48.0 -41.0
Helaba -43.0 ---
High Frequency Economics -43.0 -65.0
Hugh Johnson Advisors -47.0 ---
Ibersecurities -46.0 ---
IDEAglobal -47.5 -60.0
IHS Global Insight -48.0 ---
Informa Global Markets -46.2 -41.0
Insight Economics -47.5 ---
Intesa-SanPaulo -47.0 ---
J.P. Morgan Chase -46.4 -41.0
Janney Montgomery Scott -47.8 ---
Jefferies & Co. -47.5 ---
Landesbank Berlin -46.0 ---
Landesbank BW -45.0 ---
Maria Fiorini Ramirez -47.5 ---
MF Global -47.5 -41.0
Mizuho Securities -48.0 ---
Moody’s Analytics -48.3 ---
Morgan Keegan & Co. -46.6 ---
Morgan Stanley & Co. -45.0 ---
National Bank Financial -48.0 ---
Natixis -46.4 ---
Nomura Securities -43.0 -42.0
Nord/LB -46.2 ---
Parthenon Group -46.9 ---
Pierpont Securities -46.4 -42.0
PNC Bank -48.0 ---
Raiffeisenbank International -46.0 ---
Raymond James -48.5 -41.0
RBC Capital Markets -47.7 ---
RBS Securities -46.5 ---
Scotia Capital -48.0 ---
Societe Generale -47.7 ---
Standard Chartered -47.0 ---
State Street Global Markets -47.4 -70.0
Stone & McCarthy Research -48.9 -35.0
TD Securities -46.0 -62.0
UBS -49.0 -41.0
University of Maryland -48.8 -70.0
Wells Fargo & Co. -49.3 ---
WestLB AG -46.8 ---
Westpac Banking Co. -48.0 ---
Wrightson ICAP -47.0 ---
===========================================

To contact the reporter on this story: Bob Willis in Washington at bwillis@bloomberg.net

transformers 3

2011-04-29T20:45:00.001+08:00

13 assasins

2011-04-22T10:47:00.003+08:00

Ten tough years for adopted twins

2011-04-20T01:11:00.001+08:00

(CNN) -- There were blood relatives in Houston who wanted to adopt.

There was a guardian ad litem volunteer who had concerns about the adoptive parents.

Child investigators were called on more than one occasion to the home.

Yet early Monday along a Florida interstate, a road ranger pulled up behind a parked truck only to find an exterminator and his 10-year-old son unconscious, soaked in chemicals, and the boy's twin sister dead.

Jorge Barahona -- a 53-year-old father of four children adopted from the state's foster care system -- told police he was distraught over the death of his daughter and had intended to commit suicide by dousing himself with gasoline and setting himself afire -- but didn't go through with it.

The family had been at the center of multiple complaints to Florida's Department of Children and Families, with callers reporting the twins being locked in bathrooms for long periods of time or bound with tape, according to court testimony. Even so, the children were allowed to remain in the house.

This story appears to magnify everything that could go wrong with a child protective system.

In 2004, the siblings were placed with a foster family, according to Sonia Ferrer, circuit director of the guardian ad litem program. That family was Jorge and Carmen Barahona, she says.

As often is the case when children are in the Florida foster system, a volunteer from the guardian ad litem program was assigned to look out for their best interests.

"The guardian was with the children for four years," Ferrer said. "He had concerns about the placement."

Those concerns were brought to the court's attention and investigated before the children were officially adopted by the Barahonas in 2009, Ferrer said. "We did everything we could at the time. A full evidentiary hearing."

The judge on the case sided with the experts who found no problem with the children living with the Barahonas. Ferrer recently spoke to that guardian ad litem, who she says is devastated over what happened to the children.

He is not the only one. The biological father's sister and her husband wanted to adopt the twins, according to their attorney Steven Grossbard.

"Unfortunately, the expert opinion suggested that there was a significant bond and the courts are inclined to go with experts' opinion," Grossbard said.

The bond he refers to is the five years the twins lived with the Barahonas as their foster children before being adopted by them in 2009.

Over the years problems in the Barahona home were brought to officials' attention. "Several times we've been out to the home," Florida Department of Children and Families spokesman Mark Riordan said. He would not elaborate on the nature of the complaints.

The most recent was a call to a child abuse hotline received just days before the twins were found in the truck, according to testimony Wednesday. The testimony came during a Miami placement hearing for the Barahonas' three surviving adopted children.

According to testimony by a Department of Children and Families official, the information in the anonymous hotline call came from the 7-year-old daughter of Carmen Barahona's biological daughter.

"When she would go to this home, where these children were being locked in the bathroom, they were being tied, but they were being untied to eat," a DCF official testified. The granddaughter was told by her mother and grandmother that she was to keep "family secrets" quiet.

This information was corroborated when the granddaughter and the two other adopted children were interviewed, according to testimony. All alleged abuses discussed in the hearing were directed toward the twins, not the two other children.

Jorge Barahona has been charged with aggravated child abuse, the West Palm Beach Police Department said and will likely face other charges.

His wife, Carmen, has not been charged. She tried to hide her face at Wednesday's hearing, where the allegations of abuse were denied by her attorney.

The hotline call was on Thursday, according to court testimony. The DCF investigator, Andrea Fleary, said she went to the house on Friday night but Carmen Barahona would not let her speak to the children.

Fleary testified that she left the house with the intention of following up on Monday.

China’s Carrier Poses Mostly Symbolic Threat, U.S. Admiral Says

2011-04-13T19:08:00.001+08:00

By Viola Gienger and Tony Capaccio - Apr 13, 2011 6:51 AM GMT+0800

China’s reconstruction of a Soviet- era aircraft carrier, while not a concern to the U.S., is raising alarms in the region as a symbol of the Asian nation’s military expansion, U.S. Navy Admiral Robert Willard said.

An aircraft carrier known as the Varyag is shown berthed in drydock at a port in Dalian, China, on Sept. 9, 2009. Photographer: Nelson Ching/Bloomberg

China’s state news agency, Xinhua, posted photos of the carrier, the Varyag, on a website last week, according to the New York Times. In a photo caption, Xinhua cited the military analysis magazine Kanwa Asian Defense Review in Canada as saying the ship will set sail this year, the Times reported. The timeline tracks with an estimate made two years ago by the U.S. Office of Naval Intelligence.

Willard, the top U.S. military commander in the Asia- Pacific region, said he is “not concerned” by the project. The carrier sat pier-side for years as China considered making it a tourist attraction before the reconstruction began, Willard said.

“We do expect that they will achieve what they are asserting, which is that perhaps this year it may go to sea,” Willard, who heads U.S. Pacific Command, said today in an interview at Bloomberg’s Washington bureau. “That’s a long way from developing an aircraft carrier capability.”

Still, China’s overall military expansion magnifies the symbolic effect, Willard told the Senate Armed Services Committee at a hearing earlier in the day.

“Based on the feedback that we received from our partners and allies in the Pacific, I think the change in perception by the region will be significant,” Willard said.
‘Mother Ships’

Chinese leaders have talked for decades of plans to acquire what they call “aircraft mother ships” as part of their military modernization. Such a fleet would expand China’s power in the region and enhance its influence in territorial disputes with Japan, South Korea, Vietnam and the Philippines.

The U.S. expects that China, the world’s second-biggest economy, will try to build its own carrier at some point, Willard said in the interview.

“This is a significant choice that they’re making to develop an aircraft carrier capability,” said Willard, 60, whose command is based in Hawaii and covers 36 nations and about half the earth’s surface. “This is their first refit of a boat to give them the very beginning of that, so we’ll watch over it with interest.”

The refurbished aircraft carrier may serve as a test-and- evaluation platform. There must be “a long period of training and development and eventual exercising preceding any operational capability,” Willard told the committee.
Ballistic Missiles

“There’s a lot that goes into aircraft carrier operations,” Willard said in the interview. “We would expect that at some point in time, they’ll attempt to marry some semblance of an air wing to it.”

The Obama administration has pushed for more openness from China, the biggest foreign holder of U.S. Treasuries, over its military intentions, especially as it develops the capacity to restrict U.S. access to sea lanes.

“What we are striving to do is develop a constructive partner in China,” Willard said.

Still, “they have developed a ballistic missile capability” and “most of those missiles are aimed in the direction of Taiwan. That is very formidable,” Willard said.

The missile inventory has the capability to reach allies and “has the region concerned,” he said.

The U.S.-China Economic and Security Review Commission said in its 2010 report that China’s non-nuclear missiles have “the capability to attack” and close down five of six major U.S. Air Force bases in South Korea and Japan.

U.S. Bases in Range

China’s improved inventory of short- and medium-range missiles provides a “dramatic increase” in its ability to “inhibit” U.S. military operations in the western Pacific, the commission said.

China’s current force “may be sufficient” to destroy runways, parked aircraft, fuel and maintenance facilities at the Osan and Kunsan air bases in South Korea and the Kadena, Misawa and Yokota bases in Japan, the report said. Those facilities are within 1,100 kilometers (684 miles) of China.

The commission said Congress should evaluate Pentagon spending to fortify bases from Chinese attack, including missile defenses, early warning systems, runway repairs and hardening buildings and hangars.

“Not regarding China as an enemy, my hope is that we would not ever face that kind of a decision” to heavily invest in improving Pacific base survivability, Willard said.

To contact the reporters on this story: Viola Gienger in Washington at vgienger@bloomberg.net; Tony Capaccio in Washington at acapaccio@bloomberg.net.

Banks Face Sovereign Debt Scrutiny in EU Stress Tests

2011-04-13T19:05:00.000+08:00

European regulators will scrutinize banks’ calculations for losses on sovereign debt held to maturity when carrying out this year’s stress tests, Europe’s top banking supervisor said.

Regional German banks, including Landesbank Hessen-Thueringen, seen here, have complained that the EBA’s tighter definition of capital may lead to some lenders failing the exams. Photographer: John MacDougall/AFP/Getty Images

Financial watchdogs will “check what banks are doing with reference to some sovereign exposures and see whether they’re taking a conservative attitude” when valuing the assets, Andrea Enria, the chairman of the European Banking Authority, said in an interview in London.

Ninety banks will be expected to maintain a Core Tier 1 capital ratio of at least 5 percent under the stress-test scenarios, the EBA said. Portugal last week became the third euro-area state after Greece and Ireland to succumb to the region’s sovereign-debt crisis and request emergency aid.

“I understand on contacts I’ve had with banks that some of them have already reviewed the valuations of sovereign exposures on the banking book towards certain countries,” Enria said. Banks hold on to bonds in the banking book until the principal is scheduled to be repaid, rather than trading them on the secondary market.

This year’s tests will include a review of how banks would handle a 0.5 percent economic contraction in the euro area in 2011 as well as a 15 percent drop in European equity markets.

The EBA tests will also examine the effect of a 75 basis- point-jump in interest rates on European sovereign bonds and an increase in short-term inter-bank financing costs of 125 basis points.
‘Weaknesses’

Banks that fail the stress tests will have until the end of the year to complete plans to recapitalize or restructure their business, Enria said.

If an institution is found to have “weaknesses in terms of its risk modeling, you intervene as a supervisor, you must act,” Enria said. “This isn’t less important to us than raising capital.”

Enria said lenders with flawed risk models that pass the exams may also be required to address EBA questions.

“Guess what, given all the accountants and lawyers in the room, you can game a static capital buffer,” James Babicz, head of risk at business analytics company SAS U.K., said in a telephone interview. “Risk is unmeasurable by its definition.”

Enria said he may allow some banks more time to submit results because lenders will be measured against stricter capital standards than last year. The EBA will aim to publish the results of the exams at the end of June.
Submission Deadline

Germany’s Bundesbank and financial regulator BaFin called for the stress-test information submission deadline to be extended by two weeks. The original deadline was the end of April.

“If some banks cannot manage, then we’ll be flexible in terms of deadlines,” Enria said.

Regional German banks, including Norddeutsche Landesbank and Landesbank Hessen-Thueringen, have complained that the EBA’s tighter definition of capital may lead to some lenders failing the exams.

Lenders won’t be allowed to use some types of non-voting capital permitted by German bank supervisors, known as silent participations, to calculate the results.

“There are a lot of other instruments in the capital of European banks in other countries that got less attention but have exactly the same features,” Enria said. “There will be pain for banks in almost all countries.”

At least five banks were added to the list of those examined last year. Ireland’s Irish Life and Permanent Plc, Norway’s DnB NOR Bank ASA, Nykredit Bank from Denmark, Slovenia’s Nova Kreditna Banka Maribor and Oesterreichische Volksbank AG from Austria will be tested for the first time.

Core Tier 1, as defined by global regulators in the Basel Committee on Banking Supervision, largely consists of banks common stock and retained earnings. The 2010 tests were conducted against a pass rate of six percent Tier 1 capital, which encompasses a broader range of securities including hybrid instruments such as preference shares.

To contact the reporter for this story: Ben Moshinsky in London at bmoshinsky@bloomberg.net.

To contact the editor responsible for this story: Anthony Aarons at aaarons@bloomberg.net.

Lawmakers Reach Deal to Cut $38.5 Billion, Avert Shutdown

2011-04-09T19:24:00.000+08:00

U.S. Congress leaders reached an accord last night to cut about $38 billion from federal spending this year while jettisoning Republican proposals to defund Planned Parenthood and block environmental rules, pulling the government back from the brink of a shutdown.

The agreement was announced less than two hours before the government’s funding authority was due to expire, which would have started a partial shutdown of services and offices.

“It’s been a grueling process. We didn’t do it at this late hour for drama; we did it because it’s been very hard to arrive at this point,” Senate Majority Leader Harry Reid, a Nevada Democrat, said on the Senate floor with less than an hour to go before the midnight deadline for a shutdown. “Both sides have had to make tough choices.”

The Senate and the House of Representatives quickly passed a stopgap measure that makes $2 billion of the agreed-upon cuts and keeps the government open through April 14 while lawmakers draft legislation implementing a longer-term agreement to fund the government through the Sept. 30 close of the current fiscal year. Both chambers will vote on that measure next week.

House Speaker John Boehner, an Ohio Republican, said he was “pleased” with the outcome of what he called a “long fight” over the 2011 budget.

“We fought to keep government spending down, because it really will affect and help create a better environment for job creators in our country,” he told reporters.
‘Different Beliefs’

At the White House, President Barack Obama, who after weeks on the sidelines stepped in this week to prod an agreement, said the deal was possible because “Americans of different beliefs came together.”

“Like any worthwhile compromise, both sides had to make tough decisions,” Obama said. “Some of the cuts we agreed to will be painful.”

The Washington Monument, honoring America’s first president, loomed through a window behind Obama in his televised comments. He began his remarks with a reference to the landmark, saying, “I’m pleased to announce that the Washington Monument, as well as the entire federal government, will be open for business.”
Policy Riders

The deal came together after days of negotiations at the Capitol and the White House among Boehner, Reid, Obama and their aides over how much spending to cut and from which programs, as well as over so-called policy riders Republicans proposed to direct how federal money could be used.

The final compromise slashes about $38 billion in spending -- about $23 billion less than Republicans had initially sought, yet tens of billions more than Democrats originally said they could accept. It stripped most of the dozens of policy limits Republicans were seeking to impose on the Obama administration, while narrowing a handful of others Democrats said they could tolerate.

A provision barring federal funding for Planned Parenthood, the women’s health provider that offers abortion services in some locations, was dropped in exchange for a commitment that the Senate would vote on defunding the organization.

Republicans dropped their bid to use the measure to cancel funding for the health-care overhaul enacted last year, and Democrats in turn agreed to hold a separate Senate vote on repealing the law, according to a summary of the deal released by Boehner’s office.

Several provisions that would have barred the Environmental Protection Agency from regulating greenhouse gas emissions or other pollutants were abandoned.
Abortion Funding

Among the riders that survived were a ban on taxpayer funding for abortions in the District of Columbia and $2 million for a voucher program that is a personal cause of Boehner’s and provides low-income students in the District with federal money to attend private schools.

As part of the deal, studies will be conducted of the financial regulation measure enacted last year. Critics have said some of the law’s requirements place onerous requirements on business.

The agreement would include funding for National Public Radio, which Republicans had attempted to end. It also would strip Republican riders that sought to block the Federal Communications Commission’s “net neutrality” Internet rules as well as the Education Department’s efforts to clamp down on for- profit colleges.

In a closed-door meeting last night at which he described the agreement to colleagues, Boehner said it was best Republicans could get out of Democrats, according to an aide who spoke on condition of anonymity.
Months-Long Dispute

The months-long dispute over the 2011 budget stemmed from the failure of last year’s Democratic-controlled Congress to enact a spending plan before the fiscal year started Oct. 1. Since then, the government has been funded by a series of stopgap measures.

Republican took control of the House following November’s elections vowing to make deficit reduction one of their prime missions. The spending cuts agreed to yesterday exceed what House Republican leaders had proposed earlier this year before their rank-and-file forced them to push for $61 billion in reductions in the budget bill the chamber passed in February.
Other Battles

The accord clears the way for potentially even tougher battles over the government’s finances. A spending plan for the 2012 fiscal year prepared by House Budget Committee Chairman Paul Ryan, a Wisconsin Republican, and scheduled for a vote in the chamber next week would phase out the traditional Medicare program -- a proposal Democrats have denounced. It also would cut spending by $6 trillion over a decade and reduce the top tax rate to 25 percent.

Also looming is a fight over raising the government’s $14.3 trillion debt limit, expected to be breached by May 16. Many Republicans are demanding that the Obama administration commit to deep spending cuts as the price for their votes to raise the limit.

“In order to raise the debt ceiling, we need to do something significant about the debt,” Senate Minority Leader Mitch McConnell, a Kentucky Republican, said yesterday. “My definition of ‘significant’ is that the markets view it as significant, the American people view it as significant and foreign countries view it as significant.”

To contact the reporters on this story: Julie Hirschfeld Davis in Washington at jdavis159@bloomberg.net; Brian Faler in Washington at bfaler@bloomberg.net

Horrific Accident on dubai abu dhabi road

2011-04-03T13:26:00.004+08:00

arab driver drive like devil??maybe not?...like hell it is...

Russian Oil A Strategic Alternative Amid Middle-East Turmoil

2011-04-01T16:54:00.000+08:00

Russian Oil A Strategic Alternative Amid Middle-East Turmoil By STEVE AUSTIN for OIL-PRICE.NET, 2011/03/03

Oil prices are always experiencing a little fluctuation. In the past few years, there have quite a few sudden rises in oil prices with a subsequent fall in the stock market. The London Brent has shown a rise above the coveted $110 a barrel mark for the first time in February 2011 after 2008. This time around, no one is too shocked. Global political instability has caused these gruesome ups and downs in stock and oil prices. While it isn't a strange scenario, many companies and countries are ruing the day they started depending on Middle Eastern countries for all their fuel needs.

While most companies are mourning and looking for a way out, one giant publicly traded Russian gas producer Surgutneftegaz "Surgut" [SGTZY] is at the pinnacle of its achievement. The planets are all lining up for Surgut as attention moves to more trustworthy sources of oil and the chain of events couldn't be any better.

Prime minister Putin just forced Russia's largest oil company to open its pipeline to competitors like Surgutneftegaz.

Middle East Woes

The 'Jasmine Revolution' of Tunisia is making all the authoritarian regimes in the Middle East quiver in their boots. After the success of Egypt and the stepping down of Hosni Mubarak, Libya is standing at the helm. Gaddafi refuses to be as easily dismissed though and vows to take the country down with him. It is clear for all to see that the situation in the Middle East will be getting a lot worse before it gets any better, if it does. Most of the OECD countries rely on the Middle Eastern nations for most of their fuel needs. They will be in a lurch when matters get worse, if they do not find a trustworthy alternative source of fuel.

With the way the political instability is spreading in the Middle East, no one will be too surprised to see it reaching Saudi Arabia. Analysts claim that if this untoward scenario comes about, oil prices will be expected to reach $200 per barrel!
Burning the Economy

In the current scenario, Italy is one of the countries that will fare badly. Italy is the largest importer of Libyan oil receives 28% of Lybia's production. Ranked 12th oil exporter worldwide, Libya is also the African country with the largest proven reserves at 46.4 billion barrels. Furthermore Lybia accounts for a full 2% of the world's oil production. Countries like Ireland and Italy will suffer greatly due to these crisis situations if some or all of Libya's oil is taken off the market.

Gaddafi, like Saddam Hussein, has covertly decided to burn down the nation's oil pipeline. Who can forget the quagmire the world was in when Saddam burnt more than one billion barrels of crude oil while leaving Kuwait. The fires lasted all of nine months and caused much destruction to life, property and the environment. Something like this happening again is a scary prospect for former colonial powers like France and England as they depend too much on oil from the Middle East. With the rising oil prices and uncertainty of supply, most countries will be less keen on investing their money in the Middle Eastern countries. Diversifying their supplies to more logical and viable options like Russia becomes inevitable as a national security option.
Russia's Reliability

The Russian Federation supplies almost 65% of the European Union's energy needs through oil and natural gas exports. Owing to the fact that Russian oil & gas pipelines are state owned and have been used as political leverage in the past, Europe and other nations were of the opinion that Russian is not a reliable source of oil. This point of view has been undergoing a paradigm shift due to the Middle East woes and steps taken by the Prime Minister of Russia, Vladimir Putin himself.
Times Are Changing

For the longest time Gazprom, Russia's number one oil & gas producer has held monopoly over market and infrastructure, hindering the growth of other Russian oil majors and concerning Wester European nations who perceive Gazprom as a remnant of the cold war era. In February 2011, Putin has set the ball rolling and Gazprom will now have to open their gas pipelines to competitors like Rosneft, Novatek and one of the largest oil producers in the country, Surgutneftegaz. Once this is accomplished, dependence on the Kremlin will ease making Russia the best option for the world to rely on. Middle Eastern Islamic nations are no longer the world's best bet. The ways of capitalism and matters of national security are suggesting a move to greener pastures, which is Russia right now.
Russian Giant Surgutneftegaz

The Russian oil producer best placed to benefit from all these changes is Surgutneftegaz . Surgutneftegaz owns one of the largest oil refineries in Russia, in Kirishi and is responsible for producing more than 13% of the country's crude oil. Surgutneftegaz is also first in line to access the opened pipelines and foreign markets, and stands to increase its domestic gas productions from the existent 25% of all oil companies thanks to its $30 billion cash in the bank. Being in the Kremlin's (and Putin's) good books did not hurt either when the pipeline deal got inked. While Surgutneftegaz' reserves are outstanding at 18.2 billion barrels, the company had a tough time with distribution. This is to alter soon with all the revolutionary changes being brought about in the Russian oil industry so as to attract European attention and maintain credibility and trust. At current levels the stock prices of Surgutneftegaz [SGTZY] is extremely underpriced given the company's predictable surge in revenue when the reach of its abundant gas reserves is extended to global markets via Gazprom's existing pipeline. Surgutneftegaz' stock is expected to trade at several multiples of what it is at currently.
Thriving Oil Industry of Russia

With more and more private Russian oil giants getting linked to the oil and gas pipelines to Europe, the Russian oil industry will predictably continue its upward trend. Earlier this week, French giant Total [TOT] bought a 12% in Russia's number one gas supplier Novatek as a strategic partnership. The keyword here is 'strategic'. The booming Russian oil industry will prove to be divine succor for all European nations as they no longer want to depend on the unstable and hostile mini-Iran countries for their fuel needs.

suede

2011-03-28T20:12:00.000+08:00

AT&T to Buy Deutsche Telekom’s T-Mobile USA for $39 Billion

2011-03-21T07:54:00.000+08:00

A woman enters a T-Mobile store in New York. Photographer: Jin Lee/Bloomberg

AT&T Chief Executive Officer Randall Stephenson. Photographer: Tim Boyle/Bloomberg

AT&T Inc. (T) agreed to buy T-Mobile USA from Deutsche Telekom AG (DTE) in a cash-and-stock transaction currently valued at about $39 billion, a combination that would create America’s largest mobile-phone company.

The purchase price will include $25 billion in cash and the balance in AT&T stock, subject to adjustment, according to a statement today. The deal may give Deutsche Telekom an 8 percent stake in the Dallas-based carrier, which will add a Deutsche Telekom executive to its board of directors.

The deal would allow AT&T, now the second-largest U.S. wireless operator, to add about 34 million customers and surpass Verizon Wireless. The acquisition, the largest in the wireless industry since 2004, may face regulatory scrutiny because it combines the second- and fourth-largest wireless providers, reducing consumers’ choices.

“This is a very surprising deal,” Jonathan Atkin, an analyst at RBC Capital Markets, said in an interview. “AT&T is certainly buying scale. AT&T can integrate T-Mobile from an operations standpoint fairly easily because they use the same technology.”

AT&T said that it would expand the rollout of its high- speed wireless technology, called Long-Term Evolution, or LTE, under the T-Mobile agreement. AT&T will offer the service to an additional 46.5 million people as part of the deal, helping achieve the Federal Communications Commission goal of making broadband available more widely, the company said.
‘Very Confident’

“We studied this thing extensively over the last few months and we’re very confident it will be approved,” Randall Stephenson, AT&T chairman and chief executive officer, said in an interview. “Most local markets have a choice between five carriers, so the space will remain fiercely competitive.”

The agreement has been approved by the boards of both companies, Deutsche Telekom said in a statement.

The deal is the largest for AT&T since the acquisition of BellSouth Corp. in 2006 for about $83 billion, according to data compiled by Bloomberg. It’s the largest takeover to be announced in the wireless industry worldwide since 2004, when Sprint agreed to merge with Nextel Communications Inc., and the sixth- largest mobile-phone deal of all time.

Since taking over as CEO in 2007, Stephenson has focused on growth through wireless services, rather than the multi-billion- dollar acquisitions common under his predecessor, Ed Whitacre. AT&T began selling Apple Inc. (AAPL)’s iPhone in June 2007, and wireless data has since become one of its fastest-growing offerings, with revenue up 27 percent in the fourth quarter.
IPhone Exclusivity

AT&T lost its exclusive hold on the iPhone in the U.S. this year, as Verizon Wireless began selling the device to its customers in February. Analysts estimate Verizon Wireless may sell 11 million iPhones this year, the company said that month.

The T-Mobile deal may give AT&T a way to boost earnings because of the money the companies would save by combining their operations. The companies’ estimate that they could have $40 billion in synergies is a realistic assessment, said Jonathan Chaplin, an analyst with Credit Suisse Group AG.

“Phenomenal deal if it happens,” Chaplin wrote in a research note today. “Huge upside for AT&T; DT getting a great price; however, we believe regulatory risk is enormous.”

In the last five years, the median deal price for a telecommunications company has been 4.5 times earnings before interest taxes depreciation and amortization, according to Bloomberg data. Deutsche Telekom said the purchase price is multiple of 7.1 times 2010 adjusted EBITDA.
Regulatory Issues

The deal drew criticism for its potential to reduce the number of wireless competitors.

“Don’t believe the hype,” S. Derek Turner, research director the Washington-based advocacy group Free Press, said in a statement today. “There is nothing about having less competition that will benefit wireless consumers.”

There were 296.3 million wireless subscribers in the U.S. at the end of 2010, according to estimates from researcher eMarketer. Adding AT&T and T-Mobile would give the combined companies 38.8 percent of that total, according to data from eMarketer and ComScore Inc., while Verizon Wireless has 31.3 percent.

To get the deal through, regulators might require that T- Mobile and AT&T divest some operations or agree to certain conditions, such as promising to build out their network in certain, underserved markets, said Roger Entner, an analyst at Recon Analytics in Boston.
AT&T Financing

Still, the combination would help alleviate some of the spectrum crunch that regulators have been struggling with, he said. The two companies would be able to share airwaves, which may help persuade the FCC and the Department of Justice to approve the deal, Entner said.

Robert Kenny, a spokesman for the FCC, which is to review the deal alongside antitrust authorities, declined to comment.

Deutsche Telekom held talks about selling T-Mobile USA to Sprint Nextel Corp. (S) in exchange for a stake in the combined entity, people with knowledge of the matter said this month. The companies hadn’t been able to agree on the valuation of T-Mobile USA, the people said.

The unit, which accounts for about a quarter of Deutsche Telekom’s revenue, has reported declining earnings as it missed out on the iPhone and it lagged behind competitors in building out a higher-speed wireless network.
Cash and Stock

AT&T said the cash part of the purchase price will be financed from the holdings on AT&T’s balance sheet and new debt. AT&T has an 18-month commitment for a $20 billion unsecured bridge loan from JPMorgan Chase & Co. (JPM) The company is not assuming any debt from T-Mobile or Deutsche Telekom.

AT&T has the right to increase the $25 billion cash portion of the purchase price by up to $4.2 billion, offset by a reduction in stock, as long as Deutsche Telekom receives at least 5 percent equity interest in AT&T, the company said. The number of AT&T shares issued will be based on a 30-day average prior to closing. That is subject to a collar that protects Deutsche Telekom from price fluctuations of more than 7.5 percent.

AT&T rose 20 cents to $27.94 in New York Stock Exchange composite trading on March 18. The stock had declined 4.9 percent this year. Deutsche Telekom, little changed this year, fell 1.3 percent to 9.59 euros in Frankfurt trading.

The T-Mobile transaction, subject to regulatory approval, is expected to close in about a year, AT&T said. AT&T was advised by JPMorgan, Greenhill & Co. and Evercore Partners on the deal.

Cameco, Coach, First Solar, Kid Brands, LDK: U.S. Equity Movers

2011-03-17T17:02:00.000+08:00

Cameco, Coach, First Solar, Kid Brands, LDK: U.S. Equity Movers
March 15, 2011, 4:38 PM EDT

By Jennifer A. Johnson

March 15 (Bloomberg) -- Shares of the following companies had unusual moves in U.S. trading. Stock symbols are in parentheses, and prices are as of 4 p.m. in New York.

Solar and wind power stocks rallied for a second day on speculation that clean energy will benefit in the aftermath of Japan’s nuclear-reactor accident.

First Solar Inc. (FSLR US) added 8.2 percent to $158.91 for the biggest gain in the Standard and Poor’s 500 Index. Trina Solar Ltd. (TSL US) gained 8.8 percent to $28.28. LDK Solar Co. (LDK US) rose 9.3 percent to $12.66. SunPower Corp. (SPWRA US) jumped 11 percent to $16.07, the second-biggest gain the Russell 1000 Index.

Broadwind Energy Inc. (BWEN US) rose 10 percent to $1.38. The maker of wind towers reported fourth-quarter revenue of $47.6 million, beating the average analyst estimate of $46.9 million, Bloomberg data show.

Retailers with operations in Japan declined on speculation that store closures and shortened hours will reduce sales. Coach Inc. (COH US) fell 2.5 percent to $52.02. The maker of luxury handbags shut 20 of its 165 stores in Japan and cut staff and shortened hours at others, said Andrea Resnick, a spokeswoman for the New York-based company. Tiffany & Co. (TIF US) fell 3.6 percent to $57.68. The luxury jewelry retailer said it closed some of its 55 outlets in Japan.

Uranium stocks slumped on demand concerns after the Japan nuclear power accidents. Denison Mines Corp. (DNN US) fell 7.1 percent to $2.37. Uranium Energy Corp. (UEC US) erased 4.6 percent to $3.74. Uranium Resources Inc. (URRE US) dropped 9.7 percent to $1.58. Ur-Energy Inc. (URG US) declined 13 percent to $1.59. USEC Inc. (USU US) slipped 5 percent to $4.36. Paladin Energy Ltd. (PALAF US) dropped 8.9 percent to $3.45.

The S&P 500 Insurance Index declined to the lowest level since Jan. 21 on concern that operations and investments in Japan will be hobbled. Aflac Inc. (AFL US), which gets most of its revenue in Japan, slipped 5.6 percent to $50.89. Hartford Financial Services Group Inc. (HIG US) sank 4.6 percent to $25.60. MetLife Inc. (MET US) fell 3 percent to $43.40. Prudential Financial Inc. (PRU US) slipped 1.9 percent to $60.09.

Brown Shoe Co. (BWS US) declined 19 percent to $11.56, the third-biggest loss in the Russell 2000 Index. The operator of the Naturalizer and Famous Footwear shoe-store chains reported fourth-quarter adjusted earnings of 8 cents a share, missing the average analyst estimate of 15 cents a share, Bloomberg data show.

CompuCredit Corp. (CCRT US) jumped 11 percent, the most since Oct. 5, to $6.93. The marketer of credit cards to subprime borrowers said it offered to buy as many as 13.1 million shares of its stock for $8 a share.

Dole Food Co. (DOLE US) declined 8.8 percent, the most since its initial public offering in October 2009, to $13.06. The global fruit producer reported a fourth-quarter loss of 31 cents a share, excluding some items, missing the average analyst estimate of a profit of 18 cents a share, Bloomberg data show.

ICO Global Communications (Holdings) Ltd. (ICOG US) gained 42 percent, the most since August 2009, to $2.73. The satellite communications company’s sale of its DBSD North America, Inc. subsidiary to Dish Network Corp. (DISH US) gained approval from a U.S. Bankruptcy Court in New York. ICO will receive $324.5 million under the agreement.

Impax Laboratories Inc. (IPXL US) rose 16 percent to $25.52, the highest price since it went public in 1995. The maker of generic drugs said its phase III clinical study of the safety and efficacy of IPX066 for the treatment of Parkinson’s disease showed “statistically significant, positive” results.

Kid Brands Inc. (KID US) fell the most in the Russell 2000, plunging 25 percent to $6.91. The maker of infant furniture and toys said it had dismissed two senior managers as part of an investigation into incorrect payments of customs duties. The company delayed the filing of its fourth-quarter earnings and annual report.

Netflix Inc. (NFLX US) climbed 7.9 percent to $217.11 for the second-biggest gain in the S&P 500. The mail-order and online movie-rental service was upgraded to “buy” from “neutral” at Goldman Sachs Group Inc.

Williams-Sonoma Inc. (WSM US) rallied 13 percent to $39.38, the highest price since May 2006. The gourmet-cookware retailer reported fourth-quarter profit of $1.08 a share, beating the average analyst estimate by 9.9 percent, according to Bloomberg data.

Yahoo! Inc. (YHOO US) fell 5.7 percent, the most in the S&P 500, to $16.33. The most-visited U.S. Web portal owns 35 percent of Yahoo Japan Corp. and was in talks to sell the stake, people familiar with the matter said this month.

--With assistance from Nikolaj Gammeltoft in New York. Editors: Stephen Kleege, Joanna Ossinger

Top Gear Nissan GTR vs bullet train

2011-03-13T21:30:00.000+08:00

rango

2011-03-06T14:34:00.002+08:00

review from early screening..

..............................
Gore Verbinski's RANGO smart, dark and a kickass western!
Published on: Feb 10, 2011 4:20:30 AM CST

I think it’s safe to say that a subtle shift is occurring in the world of animation. For anyone who has seen Akira, anything by Hayao Miyazaki, or even Fantasia for that matter (just to name a few), it’s pretty clear that animation is capable of being anything, of encompassing any kind of material. And yet still so many people are stuck in the mindset that animated films are “just kid’s movies.” That kind of thinking has always baffled me, even if I understand where it’s coming from. We live in a Disney world, and even though I love classic Disney fairy tales as much as the next guy (possibly even more so) I am deeply aware of the kind of expectations they have impressed upon any animated fare. But with the rise of films like Wall-E, Up, and Toy Story 3, movies that each push the boundaries of storytelling in American animation in different ways, animation finally seems to be to spreading its wings with audiences thankfully eating it up.

Enter Rango, a film I would not ever deem to be a kid’s film in a million years. Sure, it’s about a chameleon going through an identity crisis as he wanders his way into a small western town inhabited by all kinds of desert critters, including a trigger happy Gila monster, a Native American crow, and a tortoise mayor, but in many ways this is the most adult animated film I’ve seen in quite some time. It’s smart, it’s dark, and above all, it’s dangerous.

At least it feels that way. The film is full of some surprisingly dark imagery and situations, and even though nothing explicit is ever actually put on screen, it sure as hell feels like it is, which ostensibly gives the film some nice heft. Just look at the main villain of the film, Rattlesnake Jake. The way the townsfolk describe him before he even makes his grand appearance is downright frightening, comparing him to the grim reaper, death incarnate. And once he finally does come to town, he’s terrifying, a humongous beast compared to the small size of the rest of the townspeople, armed with a truly threatening machine gun attachment at the end of his rattler. No, you don’t really see him kill anybody or anything onscreen (not violently, at least), but you don’t have to. He’s a menacing creature, the type of dangerous villain that is hard to come by in family films nowadays, and it’s exactly that sense of danger, the feeling that things may not actually work out, that Rango may just end up losing in the end, that pervades through the film and that made me fall in love with it in such a way that I was not expecting.

But nothing could have done that more so than the way in which the film simply carries itself. There is no doubt about it; Rango is a real western through and through. From the photography, to the thrilling shootouts and chases, to the immersive mystery about the town’s missing water, complete with its surprisingly ballsy reveal, the film takes itself deadly seriously. It does have its fair share of clever gags, but they’re just that: clever. They don’t feel out of place or thrown in just to alleviate the tension, but rather all come across organically, as part of the world and the characters. A couple jokes do fall flat here and there, but those are a small minority, and even then, the film seems less interested in being a comedy than being a kickass western.

Ultimately, though, the heart of the film lies entirely with the character of Rango and his spiritual journey. And yes, you read that right. The film isn’t just about the wacky antics that a chameleon gets into, a la the traditional fish out of water story. The story instead focuses very much on the idea of finding yourself. Rango is a lost soul, literally nameless until he winds up in the town of Dirt, unsure of what or who he is. And when he walks into a saloon full of creatures who know nothing about him, he takes advantage of the opportunity presented to make a name for himself, to finally be someone. It just so happens that in doing so he ends up in over his head. It’s a great story with a great message about finding your place in the world and being who you want to be and as a result, Rango’s transformation by the end of the film feels completely and totally earned.

It’s exciting to see Gore Verbinski back in the saddle and retaking the reins as well as he does. He and his team have created a wonderfully realized world in Rango and the town of Dirt, keeping all of the animals to scale and making the town feel like it came out of a classic western, but with little flourishes that make it uniquely its own thing. Rango will be walking down the road, passing the saloon, the bank, and all of a sudden he passes an outhouse made out of a discarded Pepto-Bismol bottle. It’s little quirks and visual gags like that that really make the film stand out that much more, and thus earning my love that much quicker.

Verbinski never tips his hand with the film though, keeping a very fine balance between the light and the heavy, the real and the surreal, the culmination of which results in the two most beautifully constructed scenes in the film, one involving Rango’s journey across some extremely rough terrain (you’ll know the scene when you see it) and one involving the Spirit Of The West, a scene so delightful that it would be a crime for anyone to spoil it. And it is because of this balance that I would not call Rango a kid’s film in any sense of the term. I don’t even want to call it a family film, though I’m sure it would play well amongst parents with older children. Instead, I would much rather just call it what it is: a western, and a damn fine one at that.

Nickelodeon is taking a ballsy chance with this film. It’s not at all like the trailers make it out to be. It’s a smart film, and even though it’s not nearly as extreme as Akira or Fritz The Cat or any explicitly adult animation, it’s nonetheless an animated film that pushes the boundaries in all the right ways, and I can only hope that enough people will see it so Nickelodeon or other studios might actually continue to take these kinds of chances on animated films. This isn’t your run of the mill animated fluff. Rango is something special.

http://www.aintitcool.com/node/48430

this is dangerous...people will see u naked!!

2011-03-04T17:25:00.001+08:00

iPhone 4

The iPhone 4 is a touchscreen smartphone developed by Apple. It is the fourth generation of iPhone, and successor to the iPhone 3GS. It is particularly marketed for video calling, consumption of media such as books and periodicals, movies, music, and games, and for general web and e-mail access. It was announced on June 7, 2010, at the WWDC 2010 held at the Moscone Center, San Francisco,[7] and was released on June 24, 2010, in the United States, the United Kingdom, France, Germany and Japan.

The iPhone 4 runs Apple's iOS operating system, the same operating system as used on previous iPhones, the iPad, and the iPod Touch. It is primarily controlled by a user's fingertips on the multi-touch display, which is sensitive to fingertip contact.

The most noticeable difference between the iPhone 4 and its predecessors is the new design, which incorporates an uninsulated stainless steel frame that acts as the device's antenna. The internal components of the device are situated between two panels of chemically strengthened aluminosilicate glass.[8] It has an Apple A4 processor and 512 MB of eDRAM, twice that of its predecessor and four times that of the original iPhone. Its 3.5-inch (89 mm) LED backlit liquid crystal display with a 960×640 pixel resolution is marketed as the "Retina Display".

The latest operating system release, iOS 4.2.1, added functionality such as AirPrint, and AirPlay.

Diamond Shapes

2011-03-03T10:52:00.000+08:00

Diamond Shapes

The classic diamond is, to most people, a round gem of sparkling white brilliance with a kaleidoscope of dazzling facets to entice the eye.

Yes and no. Diamonds are natural crystals of varying size and shape formed in the earth over millions of years. The traditional round brilliant diamond, though the most popular diamond shape of all, is hardly the whole story.

By the diamond cutter's art these crystals are carved into gems of spectacular and whimsical beauty. A cutter's skill will produce a diamond of the greatest size with the fewest flaws and the most brilliance.

Round Brilliant Diamonds
This shape has set the standard for all other diamond shapes, and accounts for more than 75% of diamonds sold today. Its 58-facet cut, divided among its crown (top), girdle (widest part) and pavilion (base), is calibrated through a precise formula to achieve the maximum in fire and brilliance.

Oval Diamonds
An even, perfectly symmetrical design popular among women with small hands or short fingers. Its elongated shape gives a flattering illusion of length to the hand. Learn more about Oval Diamonds

Marquise Diamonds
An elongated shape with pointed ends inspired by the fetching smile of the Marquise de Pompadour and commissioned by the Sun King, France's Louis XIV, who wanted a diamond to match it. It is gorgeous when used as a solitaire or when enhanced by smaller diamonds.

Pear Shaped Diamonds
A hybrid cut, combining the best of the oval and the marquise, it is shaped most like a sparkling teardrop. It also belongs to that category of diamond whose design most complements a hand with small or average-length fingers. It is particularly beautiful for pendants or earrings. Learn more about Pear Shaped Diamonds

Heart Shaped Diamonds
This ultimate symbol of romance is essentially a pear-shaped diamond with a cleft at the top. The skill of the cutter determines the beauty of the cut. Look for a stone with an even shape and a well-defined outline. Learn more about the Heart Shaped Diamond

Emerald Cut Diamond
This is a rectangular shape with cut corners. It is known as a step cut because its concentric broad, flat planes resemble stair steps. Since inclusions and inferior color are more pronounced in this particular cut, take pains to select a stone of superior clarity and color. Learn more about the Emerald Cut Diamond

Princess Cut Diamond
This is a square or rectangular cut with numerous sparkling facets. It is a relatively new cut and often finds its way into solitaire engagement rings. Flattering to a hand with long fingers, it is often embellished with triangular stones at its sides. Because of its design, this cut requires more weight to be directed toward the diamond's depth in order to maximize brilliance. Depth percentages of 70% to 78% are not uncommon. Learn more about the Princess Cut Diamond

Trilliant Diamonds
This is a spectacular wedge of brittle fire. First developed in Amsterdam, the exact design can vary depending on a particular diamond's natural characteristics and the cutter's personal preferences. It may be a traditional triangular shape with pointed corners or a more rounded triangular shape with 25 facets on the crown, 19 facets on the pavilion, and a polished girdle. It is definitely for the adventurous.

Radiant Cut Diamonds
This square or rectangular cut combines the elegance of the emerald shape diamond with the brilliance of the round, and its 70 facets maximize the effect of its color refraction. Because of its design, this cut requires more weight to be directed toward the diamond's depth in order to maximize brilliance. Depth percentages of 70% to 78% are not uncommon. Learn more about the Radiant Cut Diamond

Cushion Cut Diamond
An antique style of cut that looks like a cross between an Old Mine Cut (a deep cut with large facets that was common in the late 19th and the early 20th centuries) and a modern oval cut. Learn more about the Cushion Cut Diamond

The shape of things to come in diamonds has already produced other fanciful and innovative styles such as the flower, cloverleaf, triangle and kite. Nor does it stop there. Some cuts are variations on standard shapes, others spin off the natural crystal formation of the stone, and still others take the idea of shape to revolutionary new heights. Individuality and taste determine the fashion, and the magic of the gem cutter transforms each stone into a unique work of art.

JonSuperWii

2011-03-01T20:31:00.000+08:00

Butterfingers

2011-02-23T23:09:00.002+08:00

History

In 1991, Loque and his Malay College Kuala Kangsar (MCKK) schoolmate, Kadak formed what was then known as Loque's Tail , Loque and Kadak, together with a few MCKK friends, started producing their own material, with the hopes of making a name for themselves in the Malaysian music scene. It is worth remembering that this was during the start of the grunge era which managed to reach the shores of Malaysia in substantial force.

It was while jamming in Kuala Lumpur during 1993 at Black Widow Studios that they bumped into Emmett, who was there jamming (as a guitarist) with his band at that time, Grunge Dayz . Impressed with what he saw, Loque challenged Emmett to a ‘jamming showdown', after which they mutually decided to join skills and creativity, to form their own band. After meeting up with drummer Kalai later that year, Butterfingers was officially born by the end of 1993. And with the final line up of Loque (songwriter, guitarist), Emmett (vocals, guitar, strings and lyricist), Kadak (bass) and Kalai (drums), Butterfingers hit the underground gig scene with such vengeance that had most of their shows sold out and described today as ‘the stuff of underground legends'.

"1 goat, 2 apples and 16 oranges" was a demo cassette published by butterfingers into the underground circuit. The demo introduced butterfingers' raw energy in music, heavily influenced by grunge during that time, and Emmett's vocals which is a carbon-copy of Kurt Cobain. A lot of listeners thought that the demo was an unreleased Nirvana album, until butterfingers made their first appearance at the superUnderground music gig at Picadilly on February 1995. The gig and the circulation of their now very popular demo raised butterfingers into becoming one of the most recognizable underground bands at that time, along with other bands such as OAG, The Splatters and Spiral Kinetik Circus.

Radiohead's Return Rivals Pink Floyd's Trips, Neil Young's Ghosts: Review

2011-02-22T12:43:00.000+08:00

Thom Yorke has been spooking audiences in his solo concerts with a new song called “Give Up the Ghost.”

Yorke’s quavering voice sounds like Neil Young pretending to be a banshee. The falsetto “don’t haunt me, don’t hurt me” gets more terrifyingly beautiful with each repetition.

The song’s a highlight of “The King of Limbs” -- the new album by Yorke’s band Radiohead -- that’s a collection of fragile charm, skewed dance beats and Pink Floyd-style trips.

The perverse Britons have sprung the album on the world earlier than announced via an Internet download. That’s not surprising since its 2007 predecessor, “In Rainbows,” also bypassed the record companies. This time, there’s no “pay whatever you want” option. Purchasers visiting Radiohead’s website have to find their way past preachy statements about saving ocean stocks and trees. (The title “The King of Limbs” refers to a famous oak in Savernake forest, England.)

The website also offers a video of Yorke doing a jerky dance to the tune of the single “Lotus Flower.”

“I’ll set you free,” he promises, as his voice floats above dissonant drums. Yorke’s unworldly singing sounds equally disconnected from the music on the opener “Bloom,” amid its washes of synthesizer and Eno-style ambient piano.

The lyrics are so terse and oblique they could mean almost anything, which I guess is the point.

“You stole it all, give it back” might be a comment about bankers or politicians on “Morning Mr. Magpie.” Yorke goes on to say his melody has been stolen, so he might simply be making a comment about plagiarism or indeed magpies.
Vinyl Music

The eight songs last just 37 minutes, though there are clues that more material will follow. The closer is called “Separator,” as if it marks a break between discs, and a planned box set is due in May with two 10-inch vinyl records alongside the CD, giving room for extra music.

This latest outing isn’t the sort of mainstream rock with which Radiohead started its career -- 1993’s “Pablo Honey,” distinguished by the hit “Creep,” the excellent “The Bends” from 1995, and 1997’s overrated “OK Computer.”

Nor is “The King of Limbs” a work of pure experimentation such as the bold “Kid A” or its less successful follow-ups “Amnesiac” and “Hail to the Thief.” It’s closer to Yorke’s solo effort “The Eraser.”

This is no masterpiece, just a likeable collection of quiet charm, worthy of repeated listening.

Rating: ***.

What the Stars Mean:
***** Exceptional, classic
**** Excellent
*** Good
** Average
* Poor
(No stars) Worthless

Information: http://www.radiohead.com/deadairspace/

Prices depend on country. An MP3 digital download only is $9 and a better quality WAV is $14. To include the box set that ships in May add $39. The single CD version out in March is priced about $11.

(Mark Beech writes for Muse, the arts and leisure section of Bloomberg News. The opinions expressed are his own.)

Famous Quotes (Joke)

2011-02-20T21:23:00.001+08:00

If you look like your passport photo, you're too ill to travel. -Will Kommen

I once shook hands with Pat Boone and my whole right side sobered up. -Dean Martin

I'm not going to vacuum 'til Sears makes one you can ride on. -Roseanne Barr

The most remarkable thing about my mother is that for 30 years she served us nothing but leftovers. The original meal has never been found. -Calvin Trillin

My grandmother was a very tough woman. She buried three husbands and two of them were just napping. -Rita Rudner

My husband wanted one of those big-screen TV's for his birthday. So I just moved his chair closer to the one we have already. -Wendy Liebman

I hate housework! You make the beds, you do the dishes - and six months later you have to start all over again. -Joan Rivers

My grandmother is over eighty and still doesn't need glasses. Drinks right out of the bottle. -Henny Youngman

Inside me there's a thin person struggling to get out, but I can usually sedate him with four or five cupcakes. -Bob Thaves

He that falls in love with himself will have no rivals. -Ben Franklin

I haven't spoken to my wife in years. I didn't want to interrupt her. -Rodney Dangerfield

My doctor is wonderful. Once, when I couldn't afford an operation, he touched up the x-rays. -Joey Bishop

watt, volt and ampere...

2011-02-17T19:36:00.001+08:00

Watt
From Wikipedia, the free encyclopedia
Jump to: navigation, search
For other uses, see Watt (disambiguation).
"Kilowatt" redirects here. For the community in Kern County, California, see Kilowatt, California.

The watt (pronounced /ˈwɒt/ wot; symbol: W) is a derived unit of power in the International System of Units (SI), named after the Scottish engineer James Watt (1736–1819). The unit, defined as one joule per second, measures the rate of energy conversion.

Definition

* In terms of classical mechanics, one watt is the rate at which work is done when an object's velocity is held constant at one meter per second against constant opposing force of one newton.

\mathrm{W = \frac{J}{s} = \frac{N\cdot m}{s} = \frac{kg\cdot m^2}{s^3}}

* In terms of electromagnetism, one watt is the rate at which work is done when one ampere (A) of current flows through an electrical potential difference of one volt (V).

\mathrm{W = V \cdot A}

Two additional unit conversions for watt can be found using the above equation and Ohm's Law.
\mathrm{W = \frac{V^2}{\Omega} = A^2\cdot\Omega}
Where ohm (Ω) is the SI derived unit of electrical resistance.

Volt
From Wikipedia, the free encyclopedia
Jump to: navigation, search
For other uses, see Volt (disambiguation).
Josephson junction array chip developed by NIST as a standard volt.

The volt (symbol: V) is the SI derived unit of electromotive force, commonly called "voltage".[1] It is also the unit for the related but slightly different[citation needed] quantity electric potential in a point (voltage as related to a reference ground) and electric potential difference (also called "electrostatic potential difference"[citation needed]). It is named in honor of the Italian physicist Alessandro Volta (1745–1827), who invented the voltaic pile, possibly the first chemical battery.

Definition

The volt is defined as the value of the voltage across a conductor when a current of one ampere dissipates one watt of power in the conductor.[2] It can be written in terms of SI base units as: m2 · kg · s−3 · A−1. It is also equal to one joule of energy per coulomb of charge, J/C.

\mbox{V} = \dfrac{\mbox{W}}{\mbox{A}} = \sqrt{\mbox{W} \cdot \Omega} = \dfrac{\mbox{J}}{\mbox{A} \cdot \mbox{s}} = \dfrac{\mbox{N} \cdot \mbox{m} }{\mbox{A} \cdot \mbox{s}} = \dfrac{\mbox{kg} \cdot \mbox{m}^2}{\mbox{A} \cdot \mbox{s}^{3}} = \dfrac{\mbox{kg} \cdot \mbox{m}^2}{\mbox{C} \cdot \mbox{s}^2} = \dfrac{\mbox{N} \cdot \mbox{m}} {\mbox{C}} = \dfrac{\mbox{J}}{\mbox{C}}

[edit] Josephson junction definition

Between 1990 and 1997 the volt was calibrated using the Josephson effect for exact voltage-to-frequency conversion, combined with cesium-133 time reference, as decided by the 18th General Conference on Weights and Measures. The following value for the Josephson constant is used:

K{J-90} = 2e/h = 0.4835979 GHz/µV.

This is typically used with an array of several thousand or tens of thousands of junctions, excited by microwave signals between 10 and 80 GHz (depending on the array design).[3] Empirically, several experiments have shown that the method is independent of device design, material, measurement setup, etc, , and no correction terms are required in a practical implementation. [4] However, as of July 2007, this is not the official BIPM definition of Volt.[5]]

Ampere
From Wikipedia, the free encyclopedia
Jump to: navigation, search
For other uses, see Ampere (disambiguation).
Current can be measured by a galvanometer, via the deflection of a magnetic needle in the magnetic field created by the current.

The ampere (symbol: A) is the SI unit of electric current[1] (symbol: I) and is one of the seven[2] SI base units. It is named after André-Marie Ampère (1775–1836), French mathematician and physicist, considered the father of electrodynamics. In practice, its name is often shortened to amp.

In practical terms, the ampere is a measure of the amount of electric charge passing a point per unit time. Around 6.241 × 1018 electrons, or one coulomb, passing a given point each second constitutes one ampere.

Definition

Ampère's force law^[4]^[5] states that there is an attractive force between two parallel wires carrying an electric current. This force is used in the formal definition of the ampere which states that it is "the constant current which will produce an attractive force of 2 × 10^–7 newton per metre of length between two straight, parallel conductors of infinite length and negligible circular cross section placed one metre apart in a vacuum".^[1]^[6]

In terms of Ampère's force law,

The SI unit of charge, the coulomb, "is the quantity of electricity carried in 1 second by a current of 1 ampere."^[7] Conversely, a current of one ampere is one coulomb of charge going past a given point per second:

That is, in general, charge Q is determined by steady current I flowing for a time t as Q = It.

electric bicycle

2011-02-13T13:51:00.002+08:00

An electric bicycle, also known as an e-bike, is a bicycle with an electric motor used to power the vehicle. Electric bicycles typically cost between US$500 and US$3,000, use rechargeable batteries and can travel up to 15 to 20 miles per hour (24 to 32 km/h). Depending on the laws of the country in which they are sold, in some markets they are rapidly replacing traditional bikes and motorcycles.

In many parts of the world, electric bicycles are classified as bicycles rather than motor vehicles, so they are not subject to the same laws as motor vehicles. Electric bicycles are one type of motorized bicycle. However, electric bicycles are defined separately and treated as a specific vehicle type in many areas of legal jurisdiction. An electric bicycle which requires the rider to pedal in order to activate the motor is known as a pedelec.

Electric bicycle usage worldwide has experienced rapid growth since 1998. It is estimated that there were roughly 120 million e-bikes in China as of early 2010, and sales are expanding rapidly in India and the Netherlands. The “Electric Bikes Worldwide Reports – 2010 Update” estimates that 1,000,000 electric bicycles will be sold in Europe in 2010. The same report estimates that sales in the U.S. will reach roughly 300,000 in 2010, doubling the number sold in 2009.

Gary Moore

2011-02-09T12:48:00.001+08:00

It is with deep sorrow and regret, that we have to announce that Gary Moore passed away while on holiday in Spain, February 6th, 2011.

Our thoughts are with his children, family and friends at this sad time.

Gary Moore, RIP

1952-2011

Dato Siti Nurhaliza tersasul!huu

2011-01-30T13:09:00.000+08:00

Giant panda

2011-01-24T00:55:00.003+08:00

From Wikipedia, the free encyclopedia

Panda..........

This article is about the mammal in the bear family. For the red panda, see Red panda. For the hip hop group, see Giant Panda (group). For other uses, see Panda (disambiguation).

The giant panda, or panda (Ailuropoda melanoleuca, literally meaning "black and white cat-foot")[2] is a bear[3] native to central-western and south western China.[4] It is easily recognized by its large, distinctive black patches around the eyes, over the ears, and across its round body. Though it belongs to the order Carnivora, the panda's diet is 99% bamboo.[5] Pandas in the wild will occasionally eat other grasses, wild tubers, or even meat in the form of birds, rodents or carrion. In captivity they may receive honey, eggs, fish, yams, shrub leaves, oranges, or bananas along with specially prepared feed.[6][7]

The giant panda lives in a few mountain ranges in central China, mainly in Sichuan province, but also in the Shaanxi and Gansu provinces.[8] Due to farming, deforestation and other development, the panda has been driven out of the lowland areas where it once lived.

The panda is a conservation reliant endangered species.[4] A 2007 report shows 239 pandas living in captivity inside China and another 27 outside the country.[9] Wild population estimates vary; one estimate shows that there are about 1,590 individuals living in the wild,[9] while a 2006 study via DNA analysis estimated that this figure could be as high as 2,000 to 3,000.[10] Some reports also show that the number of pandas in the wild is on the rise.[11][12] However, the IUCN does not believe there is enough certainty yet to reclassify the species from Endangered to Vulnerable.[1]

While the dragon has historically served as China's national emblem, in recent decades the panda has also served as an emblem for the country. Its image appears on a large number of modern Chinese commemorative silver, gold, and platinum coins. Though the panda is often assumed to be docile, it has been known to attack humans, presumably out of irritation rather than predation

Description

The Giant Panda has a black-and-white coat. Adults measure around 1.5 meters (5 ft) long and around 75 centimeters (2 ft 6 in) tall at the shoulder. Males can weigh up to 150 kilograms (330 lb). Females (generally 10–20% smaller than males)[17] can weigh up to 125 kilograms (280 lb).

The Giant Panda has a black-and-white coat. Adults measure around 1.5 meters (5 ft) long and around 75 centimeters (2 ft 6 in) tall at the shoulder. Males can weigh up to 150 kilograms (330 lb). Females (generally 10–20% smaller than males)[17] can weigh up to 125 kilograms (280 lb).[4]

The Giant Panda has a body shape typical of bears. It has black fur on its ears, eye patches, muzzle, legs, arms and shoulders. The rest of the animal's coat is white. Although scientists do not know why these unusual bears are black and white, some speculate that the bold coloring provides effective camouflage in its shade-dappled snowy and rocky surroundings.[18] The Giant Panda's thick, wooly coat keeps it warm in the cool forests of its habitat.[18] The Giant Panda has large molar teeth and strong jaw muscles for crushing tough bamboo.[19]

The Giant Panda's paw has a "thumb" and five fingers; the "thumb" is actually a modified sesamoid bone, which helps the Giant Panda to hold bamboo while eating.[20] Stephen Jay Gould discusses this feature in his book of essays on evolution and biology, The Panda's Thumb.

The Giant Panda's tail, measuring 10 to 15 centimeters (4 to 6 in), is the second longest in the bear family. The longest belongs to the Sloth Bear.[17]

The Giant Panda usually lives around 20 years in the wild and up to 30 years in captivity.

Behavior

In the wild, the Giant Panda is a terrestrial animal and primarily spends its life roaming and feeding in the bamboo forests of the Qinling Mountains and in the hilly Sichuan Province.[22] Though generally alone, each adult has a defined territory and females are not tolerant of other females in their range. Pandas communicate through vocalization and scent marking such as clawing trees or spraying urine.[4] The Giant Panda is able to climb and take shelter in hollow trees or rock crevices but does not establish permanent dens. For this reason, pandas do not hibernate, which is similar to other subtropical mammals, and will instead move to elevations with warmer temperatures.[23] Pandas rely primarily on spatial memory rather than visual memory.[24]

Social encounters occur primarily during the brief breeding season in which pandas in proximity to one another will gather.[25] After mating, the male leaves the female alone to raise the cub.

Diet

Despite its taxonomic classification as a carnivoran, the Giant Panda's diet is primarily herbivorous, consisting almost exclusively of bamboo.[21] However, the Giant Panda still has the digestive system of a carnivore, as well as carnivore-specific genes,[27] and thus derives little energy and little protein from consumption of bamboo. Its ability to digest cellulose is ascribed to the microbes in its gut.[28] The average Giant Panda eats as much as 9 to 14 kg (20 to 30 pounds) of bamboo shoots a day. Because the Giant Panda consumes a diet low in nutrition, it is important for it to keep its digestive tract full.[21] The limited energy input imposed on it by its diet has affected the panda's behavior. The Giant Panda tends to limit its social interactions and avoids steeply sloping terrain in order to limit its energy expenditures.[29]

Two of the panda's most distinctive features, its large size and its round face, are adaptations to its bamboo diet. Panda researcher Russell Ciochon observed that: “[much] like the vegetarian gorilla, the low body surface area to body volume [of the giant panda] is indicative of a lower metabolic rate. This lower metabolic rate and a more sedentary lifestyle allow the giant panda to subsist on nutrient poor resources such as bamboo.”[29] Similarly, the Giant Panda's round face is the result of powerful jaw muscles, which attach from the top of the head to the jaw.[29] Large molars crush and grind fibrous plant material.

Pandas eat any of twenty-five bamboo species in the wild, such as Fargesia dracocephala[30] and Fargesia rufa.[31] Only a few bamboo species are widespread at the high altitudes pandas now inhabit. Bamboo leaves contain the highest protein levels; stems have less.[32] Given this large diet, the Giant Panda can defecate up to 40 times a day. [33]

Because of the synchronous flowering, death, and regeneration of all bamboo within a species, the Giant Panda must have at least two different species available in its range to avoid starvation. While primarily herbivorous, the Giant Panda still retains decidedly ursine teeth, and will eat meat, fish, and eggs when available. In captivity, zoos typically maintain the Giant Panda's bamboo diet, though some will provide specially-formulated biscuits or other dietary supplements.

Genomics

The giant panda genome was sequenced in 2009 using a next-generation sequencing technology.[35] Its genome contains 20 pairs of autosomes and one pair of sex chromosomes.

Classification

For many decades the precise taxonomic classification of the Giant Panda was under debate because it shares characteristics of both bears and raccoons.[36] However, molecular studies suggest that the Giant Panda is a true bear and part of the Ursidae family,[37][38] though it differentiated early in history from the main ursine stock. The Giant Panda's closest ursine relative is the Spectacled Bear of South America.[39] The Giant Panda has been referred to as a living fossil.[40]

Despite the shared name, habitat type, and diet, as well as a unique enlarged bone called the pseudo thumb (which helps them grip the bamboo shoots they eat), the Giant Panda and Red Panda are only distantly related. Molecular studies have placed the Red Panda in its own family Ailuridae, and not under Ursidae.

Subspecies

Two subspecies of Giant Panda have been recognized on the basis of distinct cranial measurements, color patterns, and population genetics (Wan et al., 2005).

* The nominate subspecies Ailuropoda melanoleuca melanoleuca consists of most extant populations of panda. These animals are principally found in Sichuan and display the typical stark black and white contrasting colors.
* The Qinling Panda, Ailuropoda melanoleuca qinlingensis[41] is restricted to the Qinling Mountains in Shaanxi at elevations of 1300–3000 m. The typical black and white pattern of Sichuan Giant Pandas is replaced with a dark brown versus light brown pattern. The skull of A. m. qinlingensis is smaller than its relatives, and it has larger molars.

Uses and human interaction

Early references

In the past, pandas were thought to be rare and noble creatures – the mother of Emperor Wen of Han was buried with a panda skull in her vault. The grandson of Emperor Taizong of Tang is said to have given Japan two pandas and a sheet of panda skin as a sign of goodwill. Unlike many other animals in Ancient China, pandas were rarely thought to have medical uses. The few known uses include the Sichuan tribal peoples' use of panda urine to melt accidentally swallowed needles, and the use of panda pelts to control menses as described in the Qin Dynasty encyclopedia Erya.[42]

The creature named mo (貘) mentioned in some ancient books has been interpreted as giant panda.[42] The dictionary Shuowen Jiezi (Eastern Han Dynasty) says that the mo, from Shu (Sichuan), is bear-like, but yellow-and-black,[43] although the older Erya describes mo simply as a "white leopard".[44] The interpretation of the legendary fierce creature pixiu (貔貅) as referring to the giant panda are also common.

The comparative obscurity of the giant panda throughout most of China's history is illustrated by the fact that, despite there being a number of depictions of bears in Chinese art starting from its most ancient times, and the bamboo being one of the favorite subjects for Chinese painters, there are no known pre-20th-century artistic representations of giant pandas.[46]
Modern "discovery"

The West first learned of the Giant Panda in 1869 because the French missionary Armand David [36] received a skin from a hunter on March 11, 1869. The first Westerner known to have seen a living Giant Panda is the German zoologist Hugo Weigold, who purchased a cub in 1916. Kermit and Theodore Roosevelt, Jr., became the first Westerners to shoot a panda, on an expedition funded by the Field Museum of Natural History in the 1920s. In 1936, Ruth Harkness became the first Westerner to bring back a live Giant Panda, a cub named Su Lin[47] who went to live at the Brookfield Zoo in Chicago. In 1938, five Giant Pandas were sent to London;[48][49] these activities were later halted because of wars and for the next half of the century, the West knew little of pandas.

Panda diplomacy
Main article: Panda diplomacy

Loans of Giant Pandas to American and Japanese zoos formed an important part of the diplomacy of the People's Republic of China in the 1970s, as it marked some of the first cultural exchanges between the People's Republic and the West. This practice has been termed "Panda diplomacy".

By 1984, however, pandas were no longer used as agents of diplomacy. Instead, China began to offer pandas to other nations only on 10-year loans. The standard loan terms include a fee of up to US$1,000,000 per year and a provision that any cubs born during the loan are the property of the People's Republic of China. Since 1998, due to a WWF lawsuit, the United States Fish and Wildlife Service only allows a U.S. zoo to import a panda if the zoo can ensure that China will channel more than half of its loan fee into conservation efforts for the Giant Panda and its habitat.

In May 2005, China offered a breeding pair to Taiwan. The issue became embroiled in cross-Strait relations—both over the underlying symbolism, and over technical issues such as whether the transfer would be considered "domestic" or "international," or whether any true conservation purpose would be served by the exchange.[50] China's offer was initially rejected by President Chen of Taiwan. However when the presidency changed hands China's offer was accepted at the beginning of Ma Ying-jeou's presidency in 2008, and the pandas themselves arrived in December of that year. A contest to name the pandas was held in China, resulting in the politically charged names "Tuan Tuan" and "Yuan Yuan" (from tuanyuan, meaning "reunion", i.e. "reunification").

Conservation

The Giant Panda is an endangered species, threatened by continued habitat loss and by a very low birthrate, both in the wild and in captivity.[21]

The Giant Panda has been a target for poaching by locals since ancient times and by foreigners since it was introduced to the West. Starting in the 1930s, foreigners were unable to poach Giant Pandas in China because of the Second Sino-Japanese War and the Chinese Civil War, but pandas remained a source of soft furs for the locals. The population boom in China after 1949 created stress on the pandas' habitat, and the subsequent famines led to the increased hunting of wildlife, including pandas. During the Cultural Revolution, all studies and conservation activities on the pandas were stopped. After the Chinese economic reform, demand for panda skins from Hong Kong and Japan led to illegal poaching for the black market, acts generally ignored by the local officials at the time.

Though the Wolong National Nature Reserve was set up by the PRC government in 1958 to save the declining panda population, few advances in the conservation of pandas were made, due to inexperience and insufficient knowledge of ecology. Many believed that the best way to save the pandas was to cage them. As a result, pandas were caged at any sign of decline, and suffered from terrible conditions. Because of pollution and destruction of their natural habitat, along with segregation due to caging, reproduction of wild pandas was severely limited. In the 1990s, however, several laws (including gun control and the removal of resident humans from the reserves) helped the chances of survival for pandas. With these renewed efforts and improved conservation methods, wild pandas have started to increase in numbers in some areas, even though they still are classified as a rare species.

In 2006, scientists reported that the number of pandas living in the wild may have been underestimated at about 1,000. Previous population surveys had used conventional methods to estimate the size of the wild panda population, but using a new method that analyzes DNA from panda droppings, scientists believe that the wild panda population may be as large as 3,000.[21] Although the species is still endangered, it is thought that the conservation efforts are working. As of 2006, there were 40 panda reserves in China, compared to just 13 reserves two decades ago.

The Giant Panda is among the world's most adored and protected rare animals, and is one of the few in the world whose natural inhabitant status was able to gain a UNESCO World Heritage Site designation. The Sichuan Giant Panda Sanctuaries, located in the southwest Sichuan province and covering seven natural reserves, were inscribed onto the World Heritage List in 2006.[52][53]

Not all conservationists agree that the money spent on conserving pandas is money well spent. Chris Packham has argued that breeding pandas in captivity is "pointless" because "there is not enough habitat left to sustain them".[54] Packham argues that the money spent on pandas would be better spent elsewhere,[54] and has said that he would "eat the last panda if I could have all the money we have spent on panda conservation put back on the table for me to do more sensible things with," though he has apologized for upsetting people who like pandas.[56] He points out that "The panda is possibly one of the grossest wastes of conservation money in the last half century."

Reproduction

Initially the primary method of breeding Giant Pandas in captivity was by artificial insemination, as they seemed to lose their interest in mating once they were captured.[57] This led some scientists to try extreme methods such as showing them videos of giant Pandas mating[58] and giving the males Viagra.[59] Only recently have researchers started having success with captive breeding programs, and they have now determined that Giant Pandas have comparable breeding to some populations of the American Black Bear, a thriving bear family. The current reproductive rate is considered one young every two years.[12][22]

Giant Pandas reach sexual maturity between the ages of four and eight, and may be reproductive until age 20.[60] The mating season is between March and May, when a female goes into her estrous cycle which lasts for two or three days and only occurs once a year.[61] When mating, the female is in a crouching, head-down position as the male mounts her from behind. Copulation time is short, ranging from thirty seconds to five minutes, but the male may mount her repeatedly to ensure successful fertilization. The gestation period ranges from 95 to 160 days.[61] Cubs weigh only 90 to 130 grams (3.2 to 4.6 ounces), which is about 1/800 of the mother's weight. [36]

If twins are born, usually only one survives in the wild. The mother will select the stronger of the cubs, and the weaker will die. It is thought that the mother cannot produce enough milk for two cubs since she does not store fat.[62] The father has no part in helping raise the cub.

When the cub is first born, it is pink, blind, and toothless. [63] A Giant Panda cub is also extremely small, and it is difficult for the mother to protect it because of the baby's size. It nurses from its mother's breast 6 to 14 times a day for up to 30 minutes at a time. For three to four hours, the mother may leave the den to feed, which leaves the cub defenseless. One to two weeks after birth, the cub's skin turns gray where its hair will eventually become black. A slight pink color may appear on cub's fur, as a result of a chemical reaction between the fur and its mother's saliva. A month after birth, the color pattern of the cub's fur is fully developed. A cub's fur is very soft and coarsens with age. The cub begins to crawl at 75 to 80 days; [36] mothers play with their cubs by rolling and wrestling with them. The cubs are able to eat small quantities of bamboo after six months,[64] though mother's milk remains the primary food source for most of the first year. Giant Panda cubs weigh 45 kg (100 pounds) at one year, and live with their mothers until they are 18 months to two years old. The interval between births in the wild is generally two years.

In July 2009, Chinese scientists confirmed the birth of the first cub to be successfully conceived through artificial insemination using frozen sperm.[65] The cub was born at 07:41 on 23 July that year in Sichuan as the third cub of You You, an 11-year-old.[65][66][67] The technique for freezing the sperm in liquid nitrogen was first developed in 1980 and the first birth was hailed as a solution to the problem of lessening Giant Panda semen availability which had led to in-breeding.[67][68] It has been suggested that panda semen, which can be frozen for decades, could be shared between different zoos to save the species.[65][66] It is expected that zoos in destinations such as San Diego in the United States and Mexico City will now be able to provide their own semen to inseminate more Giant Pandas.[68]

Attempts have also been made to reproduce giant pandas by interspecific pregnancy by implanting cloned panda embryos into the uterus of an animal of another species. This has resulted in panda fetuses, but no live births.

Name

There is no conclusive explanation of the origin of the word "panda". The closest candidate is the Nepali word ponya, possibly referring to the adapted wrist bone. The Western world originally applied this name to the Red Panda. Until 1901, when it was erroneously stated that it was related to the Red Panda, the Giant Panda was known as "mottled bear" (Ailuropus melanoleucus) or "particolored bear".[70]

In most encyclopedic sources, the name "panda" or "common panda" originally referred to the lesser-known Red Panda,[71] thus necessitating the inclusion of "giant" and "lesser/red" prefixes in front of the names. Even as of 2010[update] the Encyclopædia Britannica still used "giant panda" or "panda bear" for the bear [72] and simply "panda" for the Ailuridae,[73] despite the popular usage of the word "panda".

Since the earliest collection of Chinese writings, the Chinese language has given the bear 20 different names, such as 花熊 (hua xiong) "spotted bear" and 竹熊 (zhu xiong) "bamboo bear".[74] The most popular names in China today are 大熊貓 (dà xióng māo), literally "large bear cat", or just 熊貓 (xióng māo), "bear cat". The name may have been inspired by the Giant Panda's eyes, which have pupils that are cat-like vertical slits - unlike other bear species, which have round pupils.[75]

In Taiwan, the popular name for panda is the inverted 貓熊 (māo xióng) "cat bear," even though many encyclopedia and dictionaries in Taiwan still use "bear cat" as the correct name. Some linguists argue that, in this construction, "bear" instead of "cat" is the base noun, making this name more grammatically and logically correct, which may have led to the popular choice despite official writings.

In zoos
See also: Category:Famous giant pandas

Pandas have been kept in zoos as early as the Western Han Dynasty in China, where the writer Sima Xiangru notes that the panda was the most treasured animal in the emperor's garden of exotic animals in Xi'an. Not until the 1950s were pandas again recorded to have been exhibited in China's zoos.[76]

A 2006 New York Times article[77] outlined the economics of keeping pandas, which costs five times more than that of the next most expensive animal, an elephant. American zoos generally pay the Chinese government $1 million a year in fees, as part of a typical ten-year contract. San Diego's contract with China was to expire in 2008 but got a five-year extension at about half of the previous yearly cost. The last contract, with the Memphis Zoo in Memphis, Tennessee, ends in 2013.

Mariah Carey's incredible life and career

2011-01-20T01:14:00.001+08:00

Posted on Jan 19, 2011

BBC Radio 1Xtra tells the story of Mariah Carey's incredible life and career, hearing from Mariah herself and some of her closest friends. Ronnie Herel narrates as 1Xtra reveals the person behind the glossy image and elaborate rumors, including quirky tales of Mariah both at work and away from the lime light. 1Xtra will trace her highs and lows, her struggles and comebacks and hear the stories behind the music that made her famous.

1Xtra’s: The Mariah Carey Story will air Sunday, January 23 at 9:00pm.

2011-01-19T20:19:00.000+08:00

More at IMDbPro »

109 min - Drama - 21 January 2011 (USA)

1 2 3 4 5 6 7 8 9 10 6.8/10 X

Users: (1,003 votes) 11 reviews | Critics: 39 reviews Metascore: 73/100 (based on 18 reviews from Metacritic.com)

The story centers on a year in the life of three men trying to survive a round of corporate downsizing at a major company - and how that affects them, their families, and their communities.

Amazing Balance Trick!

2011-01-07T15:14:00.001+08:00

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How are solar panels are made?

2011-01-03T03:36:00.001+08:00

How are solar panels made?

Discover the process of making a solar panel

Making solar panels is a delicate process, and it is for this reason that major solar advances did not come into play until the lattermost quarter of the last century, when advances in semiconductors and photovoltaic design allowed increasingly efficient and affordable solar cells to be developed.

Crystalline Silicon Solar Panels

The creation of solar panels typically involves cutting crystalline silicon into tiny disks less than a centimeter thick. These thin, wafer-like disks are then carefully polished and treated to repair and gloss any damage from the slicing process. After polishing, dopants (materials added to alter an electrical charge in a semiconductor or photovoltaic solar cell) and metal conductors are spread across each disk. The conductors are aligned in a thin, grid-like matrix on the top of the solar panel, and are spread in a flat, thin sheet on the side facing the earth.

To protect the solar panels after processing, a thin layer of cover glass is then bonded to the top of the photovoltaic cell. After the bonding of protective glass, the nearly-finished panel is attached to a subtrate by an expensive, thermally conductive cement. The thermally conductive property of the cement keep the solar panel from becoming overheated; any leftover energy that the solar panel is unable to convert to electricity would otherwise overheat the unit and reduce the efficiency of the solar cells.

Despite these protective measures against the tendancy of solar panels to overheat, it is vital that when installing a solar panel, additional steps should be taken to ensure the solar panel is kept cool. Elevating the solar panel above ground (see solar panel mounts) to let the airflow underneath cool the device.

Amorphous Silicon Solar Panels

Amorphous silicon solar panels are a powerful, emerging line of photovoltaics, that differ in output, structure, and manufacture than traditional photovoltaics which use crystalline silicon. Amorphous silicon solar cells, or A-si cells, are developed in a continuous roll-to-roll process by vapor-depositing silicon alloys in multiple layers, with each extremely thin layer specializing in the absorption of different parts of the solar spectrum. The result is record-breaking efficiency and reduced materials cost (A-si solar cells are typically thinner than their crystalline counterparts).

Some Amorphous Solar Panels also come with shade-resistant technology or multiple circuits within the cells, so that if an entire row of cells is subject to complete shading, the circuit won't be completely broken and some output can still be gained. This is especially useful when installing solar panels on a boat.

The development process of Amorphous Silicon solar panels also renders them much less susceptible to breakage during transport or installation. This can help reduce the risk of damaging your significant investment in a photovoltaic system. Click here for more more information on amorphous silicon solar panels.

Bank of America Posts $7.3 Billion Loss on Cost of New Rules

2010-10-19T20:13:00.000+08:00

Bank of America Corp., the largest U.S. lender, reported a $7.3 billion loss tied to new rules on consumer accounts and credit cards and said it’s fighting demands for the lender to buy back allegedly faulty loans. The shares rose in early New York trading.

The third quarter’s loss of 77 cents a diluted share compared with a loss of $1 billion, or 26 cents, a year earlier, according to a statement today from the Charlotte, North Carolina-based bank. Excluding one-time gains and costs, the bank earned $3.1 billion, or 27 cents a share. The average estimate of 26 analysts surveyed by Bloomberg was 14 cents.

Chief Executive Officer Brian T. Moynihan, 51, must contend with stricter rules on consumer fees and disclosures and rein in mortgage losses. A probe by attorneys general in all 50 states focusing on faulty foreclosure documents has raised concern that lenders will be forced to buy back billions of dollars of loans from investors. The bank said yesterday it plans to resume foreclosures after an Oct. 8 halt to review its procedures.

“This is not pleasant, and we would like to get through it,” Moynihan said today in an interview on Bloomberg Television. “We’re going to defend our shareholders and make sure that any loans that come back to us, if there were mistakes made and we owe the money, we’ll do it.” For the most part, he said, “they don’t have the defects that people allege.”

Bank of America advanced to $12.48 at 8:02 a.m. in early New York trading. The stock gained 36 cents, or 3 percent, to $12.34 yesterday in New York Stock Exchange composite trading.

Vacant Homes

Revenue net of interest expense rose 2 percent from a year earlier to $27 billion, according to the company. Compared with the second quarter, revenue fell 8.4 percent. Bank of America’s cost of repurchasing mortgages that didn’t meet investors’ standards declined to $872 million from $1.2 billion in the second quarter. The bank expects elevated levels of repurchases through 2012 as it negotiates with Fannie Mae, Freddie Mac and other investors in loans and mortgage-backed securities, Moynihan said.

Executives including Moynihan and Barbara Desoer, head of the home lending unit, sought to soothe investor concern last week that mishandled foreclosures may have caused a wave of erroneous evictions, or that the bank may be facing massive expenses tied to fixing faulty court filings.

Document Disputes

“The foreclosure document issue is a minor problem, but the headlines related to that are a major problem for Bank of America,” Paul Miller, an FBR Capital Markets analyst who has an “outperform” rating on Bank of America, said in an interview before results were released. “Just contesting these foreclosures drags out the time until we have some resolution.”

Moynihan said Oct. 14 that about a third of the homes Bank of America seizes are vacant, and that borrowers in foreclosed homes typically haven’t made payments for 15 to 24 months. Desoer added the next day that estimates by analysts and investors of costs from foreclosure delays have been “grossly distorted.”

Bank of America took a goodwill charge of $10.4 billion because laws enacted this year could slash as much as 80 percent of debit-card revenue. Moynihan said Sept. 14 the company will recoup most of the lost consumer-banking revenue, without providing details. He succeeded Kenneth D. Lewis as CEO at the start of the year.

Credit Costs

The bank earmarked $5.6 billion for credit losses, compared with $8.1 billion in 2010’s second quarter and $11.7 billion a year earlier. Net write-offs of uncollectible loans declined 25 percent to from the previous quarter’s $9.6 billion.

“We see delinquencies coming down in all our portfolios,” Moynihan said in today’s interview. “We can see the American consumer healing.”

JPMorgan Chase & Co., the second-biggest U.S. bank by assets, said Oct. 13 that third-quarter profit rose 23 percent. Citigroup Inc., the third-largest, yesterday reported a $2.17 billion profit as it reduced its loan-loss reserves by $1.99 billion. Results at both companies exceeded the consensus of analysts surveyed by Bloomberg. Wells Fargo & Co., based in San Francisco, reports tomorrow.

“There’s no revenue growth,” Jason Tyler, a senior vice president at Ariel Investments LLC in Chicago, said in a Bloomberg Television interview. “Everyone is struggling to figure out how these banks are going to make money.”

Bank of America ranks first in the U.S. by deposits and assets, and second among credit-card and housing lenders. The acquisition of Merrill Lynch in January 2009 bolstered the company’s corporate and investment-banking operations.

Bank of America’s fixed-income trading revenue surged to $3.53 billion from $2.32 billion in the second quarter, exceeding the totals at JPMorgan and Citigroup and bucking the declines that those competing banks reported for the period.

2010-10-07T00:18:00.000+08:00

Krisdayanti (born March 24, 1975 in Malang, East Java) is the first Asia Bagus Grand Champion from Indonesia. She has been dubbed asAsia's Nightingale. The first recording that she did was when she was only nine years old. For that, she received Rp 15,000 for dubbing theMegaloman soundtrack. Her next album was Burung-Burung Malam. She recorded it at the age of 12. However, her album did not do well.^{[citation needed]}

During her high-school days, she participated in many singing competitions and modeling pageants. In 1991, she became a finalist in Gadis Sampul, a cover girl contest. It was also during that period she met James Sundah and recorded two songs for him. Following that, she began to receive many invitations to sing and model.

It was Youngki Suwarno who brought Krisdayanti to an Asia Bagus audition. There, she felt inferior because of her appearance. The other contestants were decked in glittering show dresses whereas she was simply dressed in jeans and T-shirt.

After her winning, she became a star instantly. With eight albums to her credit and a few singles, she has reached superstardom. She is not only known in her country but around the Southeast Asian region as well^{[citation needed]}.

She married Anang Hermansyah, Indonesian famous song writer, singer and producer, in 1996. They had two kids together, a daughter, Titania Aurelia Hermansyah, and a son, Azriel Hermansyah. The couple filed for divorce in 2009 after her love affairs with Raul Lemmos, a Timor Leste businessman.

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Gary Moore

It is with deep sorrow and regret, that we have to announce that Gary Moore passed away while on holiday in Spain, February 6th, 2011.

Our thoughts are with his children, family and friends at this sad time.

Gary Moore, RIP

1952-2011

Dato Siti Nurhaliza tersasul!huu

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Bank of America Posts $7.3 Billion Loss on Cost of New Rules