Taking a more liberal tack

Am I seeing this as a decline in the human intelligence and dispensation of intellect, or is this some kind of a breakthrough on humanity's really "free living" style?

----------

WAR ON DRUGS

Mexico, Argentina move toward decriminalisation

CARACAS - Argentina and Mexico have taken significant steps towards decriminalising drugs amid a growing Latin American backlash against the United States-sponsored "war on drugs".

Argentina's Supreme Court has ruled it unconstitutional to punish people for using marijuana for personal consumption, an eagerly-awaited judgment that gave the government the green light to push for further liberalisation.

It followed Mexico's decision to stop prosecuting people for possession of relatively small quantities of marijuana, cocaine, heroin and other drugs. Instead, they will be referred to clinics and treated as patients, not criminals.

Brazil and Ecuador are also considering partial decriminalisation as part of a regional swing away from a decades-old policy of crackdowns still favoured by Washington.

"The tide is clearly turning. The 'war on drugs' strategy has failed," Mr Fernando Henrique Cardoso, a former Brazilian President, told The Guardian. Earlier this year, he and two former Presidents of Colombia and Mexico published a landmark report calling for a new departure.

Reform campaigners have long argued that criminalisation enriched drug cartels, fuelled savage turf wars, corrupted state institutions and filled prisons with addicts who presented no real threat to society.

The US used its considerable influence to keep Latin America and the United Nations wedded to hardline policies which kept the focus on interdictions and jail sentences for consumers as well as dealers.

The economic and social cost has emboldened some Latin American states to try new approaches.

Argentina's Supreme Court, presented with a case about youth arrested with a few joints, ruled last week that such behaviour did not violate the Constitution. "Each adult is free to make lifestyle decisions without the intervention of the state," it said.
The previous week, the government of Mexico, which has endured horrific drug-related violence, made it no longer an offence to possess 0.5g of cocaine, 5g of marijuana, 50mg of heroin and 40mg of methamphetamine.

Three years ago, Mexico backtracked on similar legislation after the initiative triggered howls of outrage in the US.

Now, however, the authorities quietly say they need to free up resources and jail space for a military-led war on the drug cartels, even while publicly justifying that offensive to the Mexican public with the slogan "to stop the drugs reaching your children".

Washington did not protest against the announcement. "I predict that when the US sees its nightmare has not come true and that there is no narco-tourist boom it will come under more pressure to legalise or decriminalise," said Mr Walter McKay, of the Mexico City-based Institute for Security and Democracy.

Argentina and Mexico's moves may encourage other governments to follow suit. A new law has been mooted in Ecuador, where President Rafael Correa last year pardoned 1,500 "mules" who had been sentenced to jail.

Brazil's Supreme Court is in favour of decriminalising possession of small quantities of drugs, said former judge Maria Lucia Karam, who has joined the advocacy group Law Enforcement Against Prohibition.

She said repression remained a cornerstone of drug policy. "The 'war on drugs' mentality is still the dominant policy approach in Latin America. The only way to reduce violence ... is to legalise the production, supply and consumption of all drugs." THE GUARDIAN

From TODAY, World – Wednesday, 02-Sep-2009

Related articles by Zemanta

• Latin Americans ditch 'war on drugs' (guardian.co.uk)
• Latin America Weighs Less Punitive Path to Curb Drug Use (nytimes.com)
• Legalisation of drugs is urgent (guardian.co.uk)
• Argentina high court eyes decriminalizing drugs (cnn.com)
• The war on drugs is immoral idiocy. We need the courage of Argentina (guardian.co.uk)
• Argentina court ruling may legalize personal use of marijuana (gadling.com)
• Mexico's New Drug Use Law Worries US Police (abcnews.go.com)
• Mexico Decriminalized Possession of Small Amounts of Cocaine, Marijuana, Heroin and Meth (shoppingblog.com)
• Stop Smoking, Or Juarez Gets It (andrewsullivan.theatlantic.com)
• Mexico's New Drug Law May Set an Example (time.com)

Oil prices fall after hitting US$76

Image via Wikipedia

Up and down, up and down, due to Euro, due to US dollar, due to whatever…

Having reached US$76/barrel, oil price now slides down… to where who knows?

Read the latest story on oil price here.

Related articles by Zemanta

• Oil Slips to Near $71 Amid Mixed US Economic News (abcnews.go.com)
• Oil climbs near $71 (money.cnn.com)

Australian treasurer says worst may be over

Image via Wikipedia

At first I thought that what I saw was a news comment from the US… I was wrong. The treasurer who spoke was speaking for Australia. And rightly so, because the other day (if not this morning), I saw a paper indicating that half, or more than half, of US establishments, have declared that sales have bottomed out. That is something to be reckoned with: an already staggering economy, reeling from the past blows, is once again dealt with a blow, perhaps a heavier one.

As for the Australian treasurer's declaration, read it here. Perhaps migration destination may change… to Australia. But something to watch out for there is the racial discrimination. But in which country is discrimination not happening?

Related articles by Zemanta

• Of top cities in the world, Pittsburgh is best US city at 29th, Vancouver the best (gadling.com)
• Race problem? (news.bbc.co.uk)
• Indian students stage violent protest over attacks in Australia (telegraph.co.uk)
• Australians at Odds Over Rules for Refugees (nytimes.com)
• Aid Sought for Students (nytimes.com)
• Melbourne Is World's Third Best City: Poll (themoderatevoice.com)
• Indian Students Rally in Australia (oneriot.com)

UN chief urges North Korea to show restraint

Posted: 01 July 2009 0453 hrs

Ban Ki-Moon

TOKYO: UN Secretary General Ban Ki-moon on Tuesday urged communist North Korea to refrain from further steps which may worsen a "very serious situation" after its recent nuclear and missile tests.

"I urge North Korean authorities to refrain from taking any further measures which may deteriorate the already very serious situation," Ban told a joint press event with Japanese Foreign Minister Hirofumi Nakasone.

Regional tension spiked after North Korea on May 25 carried out its second nuclear test, followed by missile launches, which resulted in new UN sanctions.

The North has also vowed to build more nuclear bombs and to start a new weapons programme based on uranium enrichment.

Ban called on UN members to implement the resolution passed in response to the nuclear test which authorises tougher inspections of North Korean shipments suspected to contain nuclear- and missile-related materials.

The UN chief urged North Korea "to fully cooperate and fully comply with this resolution" and "member states of the United Nations to fully cooperate so that this resolution should be able to be implemented."

The North's policy has grown notably harder-line this year after leader Kim Jong-Il was widely believed to have suffered a stroke last August.

US and South Korean officials believe the ailing Kim is projecting an image of strength to bolster his authority as he prepares one of his sons for a takeover. - AFP/de

From ChannelNewsAsia.com; see the source article here.

Related articles by Zemanta

• North Korea moving to enrich uranium: South Korea (cbc.ca)
• North Korea 'enriching uranium' (news.bbc.co.uk)
• Burma should release all political prisoners: UN (ctv.ca)
• North Korea's Other Crisis: An Economy in Tatters (time.com)
• The Other North Korean Crisis: An Economy in Tatters (time.com)

Market jitters send investors rushing to dollar

Posted: 01 July 2009 0607 hrs

A currency exchange worker holds a handful of euro notes in London.

NEW YORK: The US dollar gained against its main rivals on Tuesday as financial market jitters stemming from weak economic data sent investors flocking to the world's main safe-haven currency.

The euro dipped to 1.4032 dollars at 2100 GMT compared to 1.4088 dollars late on Monday.

The dollar meanwhile rose to 96.30 yen compared to 96.04 yen on Monday.

The Conference Board, a business research group, said US consumer confidence sank in June as households worried about the prolonged recession and vanishing jobs.

The index retreated to 49.3 points in June from a revised 54.8 in May, an eight-month high.

Most analysts expected a much stronger reading of 55.3 points in the 100-point index.

As a result of the disappointing data, dealers on currency markets moved away from currencies considered risky like the euro and bought up ones seen as safer like the dollar, the yen and the Swiss franc, analysts said.

Stocks fell and the dollar rose on the report, which dented hopes for a quick recovery from the recession.

The data showed Americans appear to be having a harder time finding employment, said David Rosenberg, chief economist and strategist at Gluskin Sheff.

This "portends yet another month of rising unemployment when Thursday's data roll out," he added.

Some said the dollar benefited from inflows ahead of the Independence Day holiday weekend, which begins on Friday.

"Judging from the price action, it appears that the consumer confidence report provided players with an opportunity to take profit on short dollar positions as the greenback had clearly become oversold amidst illiquid, pre-holiday trading conditions," said Michael Woolfolk at Bank of New York Mellon.

Investors were also awaiting new reports from the European Central Bank meeting on Thursday and the release of US monthly employment data the same day.

The ECB is expected to keep interest rates at a record low of 1.0 percent despite an appeal from the Organisation for Economic Cooperation and Development to lower the main rate even further to nearly zero.

In late New York trade, the dollar stood at 1.0858 Swiss francs after 1.0823 on Monday.

The pound was at 1.6459 dollars after 1.6568. - AFP/de

From ChannelNewsAsia.com; see the source article here.

Related articles by Zemanta

• Dollar falls as sentiment improves (money.cnn.com)

Wall Street sinks along with consumer confidence

Posted: 01 July 2009 0558 hrs

Traders work on the floor of the New York Stock Exchange.

NEW YORK: Wall Street shares ended the second quarter in a slump on Tuesday after a surprise fall in consumer confidence dented hopes that spending will lead the country out of recession.

The Dow Jones Industrial Average shed 82.38 points (0.97 percent) to close at 8,447.00.

The tech-heavy Nasdaq dropped 9.02 points (0.49 percent) to 1,835.04 and the broad-market Standard & Poor's 500 retreated 7.91 points (0.85 percent) to finish at 919.32.

"The main culprit is an unexpected drop in consumer confidence, ending a two-month winning streak in that index," Charles Schwab & Co. analysts said in a client note.

The Conference Board, a business research group, said its consumer confidence index retreated to 49.3 points in June from a revised 54.8 in May.

Most analysts expected a much stronger reading of 55.3 points in the 100-point index.

Stocks turned sharply lower as investors digested the surprising decline in confidence which suggested recession-weary consumers were not ready to open their wallets to boost the spending that drives two-thirds of US economic activity.

"This latest setback in consumer sentiment does not auger well for any near-term revival in consumer spending," said Brian Bethune of IHS Global Insight.

Bethune warned that the government's massive economic stimulus efforts may "run the risk of engineering the biggest fiscal stimulus 'dud in post-World War II history."

"Despite the huge cash incentives being dangled in front of consumers to purchase homes - and prospectively to trade in gas-guzzling auto clunkers - households are not going for the bait," he said.

Still, the major indices ended the second quarter with robust gains. The blue-chip Dow jumped 11 percent in the past three months, the Nasdaq surged 20 percent and the S&P 500 advanced 15 percent.

Investors digested a raft of data in the holiday-shortened week, with the market closed on Friday for the July 4 Independence Day celebration.

The S&P/Case-Shiller index showed the decline in housing prices in the 20 top US cities slowed in April, to a drop of 18.1 percent, from a year ago.

Retail sales at chain stores rose in the past by the strongest gain since late January, the International Council of Shopping Centers reported.

Investors were focused on Thursday's unemployment report, which is widely expected to show the jobless rate climbed to 9.6 percent in June, up from 9.4 percent in May.

"The heavy burden of all of the people who have no jobs will bring down consumer spending and retail revenue, adding to this government's obligations as it struggles more and more with its growing debt load which will be compounded by falling tax revenue," said Douglas McIntyre of 24/7WallSt.com.

Among stocks in focus, United Technologies dropped 0.97 percent to 51.96 dollars and Caterpillar skidded 4.89 percent to 33.04 dollars.

ExxonMobil shed 0.95 percent to 69.91 dollars and Chevron slid 0.94 percent to 66.25 dollars as crude oil prices headed lower.

Walt Disney dipped 1.39 percent to 23.33 dollars after the entertainment giant and the Hong Kong government on Tuesday reached an agreement to expand the city's beleaguered Disneyland amusement park.

The bond market weakened. The yield on the 10-year US Treasury bond rose to 3.523 percent from 3.492 percent on Monday and that on the 30-year bond advanced to 4.311 percent from 4.307 percent. Bond yields and prices move in opposite directions. - AFP/de

From ChannelNewsAsia.com; see the source article here.

Related articles by Zemanta

• Stock selloff speeds up (money.cnn.com)
• Stocks on the rise (money.cnn.com)
• Rising oil, commodity prices pull US stocks higher (myleadingleads.blogspot.com)
• Stocks set for gains at open (money.cnn.com)
• TSX slides on U.S. consumer confidence (thestar.com)
• U.S. Stocks Higher Ahead of Week's Key Data (nytimes.com)

Oil prices slide on sagging US consumer confidence

Posted: 01 July 2009 0408 hrs

A driver transfers gasoline into an underground tank at a gas station in San Anselmo, California.

NEW YORK: Oil prices sank from eight-month peaks on Tuesday after new data signalled a plunge in consumer confidence in the United States, the world's largest energy consumer.

New York's main contract, light sweet crude for delivery in August, tumbled 1.60 dollars from Monday's closing price to 69.89 dollars per barrel, after earlier touching 73.38 - a level unseen since October.

London's Brent North Sea crude for August delivery fell 1.69 dollars to 69.30 dollars a barrel, having earlier surged as high as 73.50.

Consumer confidence in the United States - the world's biggest energy consuming nation - sank in June as households worried about the prolonged recession and vanishing jobs, the Conference Board said on Tuesday.

The news pushed the dollar higher against the euro on currency markets as investors flocked to buy the world's main safe-haven currency and moved away from risky currencies.

A stronger US currency makes dollar-priced oil more expensive for buyers holding weaker currencies, which in turn tends to dampen demand and pull the market lower.

"The rising dollar affected the crude oil prices," said Mike Fitzpatrick of MF Global.

Oil prices have increased dramatically - by 40 percent or more than 20 dollars - in the second quarter on gaining confidence that the global slump is easing. It had closed at 49.66 dollars on March 31, which was the last day of the first quarter.

The Conference Board, a US business research group, said on Tuesday its consumer confidence index retreated to 49.3 points in June from a revised 54.8 in May, an eight-month high. Most analysts expected a much stronger reading of 55.3 points.

This dashed hopes for a recovery soon from the recession that began in December 2007.

"Once again we've seen the green shoots arguments shot down," said analyst David Fineberg at financial spread-betting firm CMC Markets in London.

"This shift in outlook is also hammering oil prices - crude is back below 70 dollars a barrel - so in summary, falling consumer demand is painting a rather bleak picture."

Traders also digested data showing that Britain's recession-battered economy shrank at its fastest pace in more than 50 years during the first quarter of 2009 amid the worst global slowdown in decades.

British gross domestic product contracted 2.4 percent in the first three months of the year compared to the final quarter of 2008.

Oil had plunged from record peaks of more than 147 dollars in July 2008 to 32 dollars in December as a global downturn slashed energy demand, but the market has clawed back ground on hopes of "green shoots" of recovery.

The continuing turmoil in Nigeria is also weighing on the oil market, traders said.

On Monday, Nigerian rebels had announced a new raid against a Shell oil facility and said they had killed at least 20 soldiers in a gun battle, a claim denied by the security forces.

The raid was just the latest in a series that have targeted Shell facilities this month and which have continued despite last Thursday's offer from President Umaru Yar'Adua of an amnesty for the militants. - AFP/de

From ChannelNewsAsia.com; see the source article here.

Related articles by Zemanta

• Oil rises over 3% on Nigeria attacks (financialpost.com)
• Oil edges higher on Nigeria turmoil (money.cnn.com)
• GDP slump shows economy still contracting (thestar.com)

Apple CEO Jobs back at work

Image via CrunchBase

Posted: 30 June 2009 0240 hrs

Steve Jobs

WASHINGTON: Apple chief executive Steve Jobs has returned to work after a medical leave of absence during which he underwent a liver transplant, according to press reports on Monday.

"Steve is back to work," Steve Dowling, an Apple spokesman, told The New York Times and other US media outlets. "He is currently at Apple a few days a week and working from home the remaining days."

"We are glad to have him back," Dowling told the newspaper.

The Times said the Apple spokesman declined to say exactly when the 54-year-old Jobs, the visionary behind the wildly successful Macintosh computer, iPhone and iPod, returned to work or to discuss his health.

Apple last week released the first public comment from Jobs since he went on medical leave of absence in January, a brief statement in which he lauded the sales of Apple's latest model iPhone.

Apple has been notoriously secretive about Jobs's health since he underwent an operation in 2004 for pancreatic cancer.

A Tennessee hospital confirmed last week that Jobs had received a liver transplant and said his prognosis was "excellent."

Apple's fortunes have been uniquely linked to Jobs, who returned to the California company in 1997 after a 12-year absence and turned around the flagging technology giant.

- AFP /ls

From ChannelNewsAsia.com; see the source article here.

Related articles by Zemanta

• Apple boss Jobs goes back to work (news.bbc.co.uk)
• Apple CEO Steve Jobs back at work (msnbc.msn.com)

Oil falls to near $69 as optimism on economy wanes

Image via Wikipedia

06/22/2009 | 11:42 AM

SINGAPORE — Oil prices fell to near $69 a barrel Monday in Asia on investor concerns over a weak US economy.

Benchmark crude for July delivery fell 38 cents to $69.17 a barrel by late morning Singapore time in electronic trading on the New York Mercantile Exchange. On Friday, it dropped $1.82 to settle at $69.55

The July contract expires later Monday. The August contract slid 44 cents to $69.57.

Crude rose to an eight-month intraday high of $73.23 a barrel earlier this month on investor optimism that the US economy, suffering through its worst recession in decades, may grow by the end of the year.

However, recent economic data has been mixed and reflects an economy still struggling to right itself. The Dow Jones industrial average fell 3 percent last week.

"Oil may have peaked in the short-term," said Victor Shum, an energy analyst with consultancy Purvin & Gertz in Singapore. "The market is overripe for a correction. Eventually the laws of supply and demand will re-exert themselves."

This week, traders will be looking for signals on consumer demand in a Commerce Department report on May personal spending, which has fallen for eight of the past 10 months. The University of Michigan also reports on June consumer sentiment.

On Sunday, militants of the Movement for the Emancipation of the Niger Delta said they attacked two pipelines belonging to oil giant Royal Dutch Shell in south Nigeria.

Violence has been escalating in the region as the military intensifies operations to flush out rebels battling for a larger share of the country's oil revenues.

"The recent attacks haven't had much of an impact on oil because there's a lot of global spare production capacity," Shum said. "Oil is everywhere."

In other Nymex trading, gasoline for July delivery was steady at $1.92 a gallon and heating oil fell 0.50 cent to $1.78. Natural gas for July delivery slid 4.4 cents to $3.99 per 1,000 cubic feet.

In London, Brent prices fell 29 cents to $68.90 a barrel on the ICE Futures exchange. – AP

From GMANews.tv; see the source article here.

US dollar lifted by data, moves by Swiss bank

Posted: 19 June 2009 0545 hrs

NEW YORK: The US dollar recouped early losses and swung higher against the other main currencies on Thursday as the market outlook shifted on a surprisingly strong report on US leading economic indicators.

An announcement by the Swiss National Bank that it would take "firm action" to prevent franc appreciation prompted reports of intervention in the currency markets, which appeared to help the US unit, traders said.

At 2100 GMT, the euro was trading at 1.3901 dollars, from 1.3943 dollars in New York late on Wednesday. At one point, the euro broke above 1.40 dollars but then fell back.

Against the Japanese currency, the dollar rose to 96.55 yen from 95.71 yen on Wednesday.

The dollar got some early support as "weak equity markets overseas enticed traders to seek the safe-haven benefits of the dollar," said Bob Kozak at Alaron Trading.

But the greenback later appeared to benefit from better-than-expected economic news, offering support to notion of a recovery taking root in the United States.

The Conference Board said its May index of leading economic indicators, a measure of economic conditions in the coming months, rose 1.2 percent from April, beating forecasts for 1.0 percent.

The index, which had been on a downward trend since hitting a peak in July 2007, "has risen sharply in the past two months amid widespread strengths among its components," the Conference Board said.

"Two consecutive months now of strong gains in the leading indicators is the strongest evidence to date supporting the 'green shoots' rally," said Michael Woolfolk at Bank of New York Mellon.

Other reports showed a stronger-than-expected reading on a Philadelphia Federal Reserve survey on regional manufacturing and a report roughly in line with expectations on weekly jobless claims, but which offered hints that some of the unemployed were finding jobs.

Meanwhile the market mulled the Swiss National Bank announcement to keep interest rates unchanged but to work to dampen appreciation of the Swiss franc. This prompted some speculation of currency market intervention.

The Swiss authorities "said they will take 'firm action' to prevent franc appreciation as they are an export dependent country," said Mary Ann Hurley at DA Davidson & Co.

This could help the dollar since some traders are "using the Swiss franc as a proxy for the euro," said Brown Brothers Harriman analysts.

The analysts said the British pound was hurt by "much weaker than expected retail sales and the largest drop in business lending in nine years."

In late New York trade, the dollar stood 1.0861 Swiss francs after 1.0795 on Wednesday.

The pound was at 1.6331 dollars from 1.6401. - AFP/de

From ChannelNewsAsia.com; see the source article here.

Related articles by Zemanta

• U.S. treasuries face new rival in IMF bond (financialpost.com)
• Dollar weakens, euro rallies (money.cnn.com)
• Gordon Brown leadership chaos 'will keep pound lower' (telegraph.co.uk)

Report: North Korea may fire missile toward Hawaii

Image by Getty Images via Daylife

Some display of power, eh? To 'threaten' US, and deter further plans of interfering with other countries' business, internal or external? Whatever, the implication may be far-reaching than planned or expected.

----------

06/18/2009 | 12:46 PM

TOKYO — North Korea may fire a long-range ballistic missile toward Hawaii in early July, a Japanese newspaper said Thursday, amid escalating tensions between the communist country and the United States over Pyongyang's nuclear and missile programs.

The missile, believed to be a long-range Taepodong-2, would be launched from North Korea's Dongchang-ni site on the northwestern coast, said the Yomiuri daily, Japan's top-selling newspaper. It cited an analysis by the Japanese Defense Ministry and intelligence gathered by US reconnaissance satellites.

The missile launch could come between July 4 and 8, the paper said. It noted North Korea had fired the Taepodong-2 missile on July 4, 1996. Also July 8 is the anniversary of the 1994 death of North Korea founder Kim Il Sung.

The Yomiuri report is the latest in mounting media speculation that the communist country could launch a long-range missile soon following its underground nuclear test on May 25.

A spokesman for the Japanese Defense Ministry declined to comment on the report. Officials from South Korea's Defense Ministry and the National Intelligence Service — the country's main spy agency — said they could not confirm it.

While the Yomiuri speculated the Taepodong-2 could fly over Japan and toward Hawaii, it said the missile would not be able to hit the main islands of Hawaii.

In Washington on Tuesday, Gen. James Cartwright, vice chairman of the Joint Chiefs of Staff, said it would take at least three to five years for North Korea to pose a real threat to the West Coast of the United States.

North Korea is believed to have enough weaponized plutonium for at least half a dozen atomic bombs. The regime revealed last week that it is also producing enriched uranium. The two materials are key ingredients for making atomic bombs.

North Korea conducted its second nuclear test on May 25 following its first underground atomic blast in October 2006.

The United Nations last week punished North Korea over the May nuclear test by expanding an arms embargo and authorizing ship searches on the high seas in a bid to derail its nuclear and missile programs.

North Korea has claimed its nuclear bombs are a deterrent against the United States and accuses Washington of plotting with Seoul to topple its secretive regime — led by the unpredictable dictator Kim Jong Il who is reportedly preparing to hand over power to his 26-year-old youngest son, Jong Un. - AP

From GMANews.tv; see the source article here.

Related articles by Zemanta

• US braced for more 'reckless' moves from North Korea (telegraph.co.uk)
• Source: N. Korea may be preparing nuclear test (cnn.com)
• Could North Korea Provoke a New Korean War? (time.com)
• What a War in North Korea Would Look Like (time.com)
• Could the U.S. Be Drawn into a New Korean War? (time.com)
• North Korea Preparing for a Third Nuclear Test? (blogs.abcnews.com)
• As Tensions Between North Korea and U.S. Rise, Clinton Hints At Weapons Interdiction (crooksandliars.com)
• Families Urge North Korea To Free Reporters (news.sky.com)
• Responding to North Korea: U.S. Leans on Asian Allies (time.com)
• N. Korea steps up rhetoric amid nuclear crisis (ctv.ca)

US weapon-makers look overseas as the Pentagon cuts back

Image via Wikipedia

WASHINGTON - With the United States looking to cut defence costs and rethinking the way it fights wars, many American defence contractors are looking for international buyers for the big, pricey weapons the Pentagon no longer wants or needs.

Boeing and Lockheed Martin are competing to sell fighter planes to countries such as India and Brazil. Boeing is trying to spark international interest in its C-17 cargo plane. Middle Eastern nations fearful of threats from Iran are bulking up on missile defence equipment from Lockheed and Raytheon.

"This is a world market right now,'' said Boeing's president of military aircraft, Chris Chadwick.

Globalisation is nothing new for many US industries, which often use overseas operations and sales to tap into fast-growing areas like China and as a hedge against domestic downturns. But the defence industry is closely tethered to one primary buyer, the American government.

It has been a lucrative relationship. Defence spending is up more than 40 per cent over the past eight years, fuelled in part by spending on wars in Iraq and Afghanistan.

But the US military is cutting back on weapon spending. Last year, the US military spent US$164 billion ($237 billion) to buy weapons. For the 2010 fiscal year, the Pentagon proposes spending only US$131 billion.

Overseas arms sales represent a relatively small segment of defence contractor sales. But many are turning to the global markets for growth now that the appetite for big and expensive weapons is waning in the US.

The push is helped by countries worried about security threats from nations such as North Korea and Iran. Many European allies need to upgrade their ageing equipment, and are turning to American firms as likely suppliers.

New markets have also emerged. Iraq was the second largest potential buyer of US military equipment last year, behind Israel, according to a March report by the Arms Control Association, a Washington think-tank. AP

From TODAY, World –Monday, 15-Jun-2009

Related articles by Zemanta

• Worldwide military spending on weapons hits record high (telegraph.co.uk)
• Military might (news.bbc.co.uk)
• General Dynamics Profit Up Slightly (nytimes.com)
• Pentagon No. 2 Could Earn $500K Lobbying Pentagon (huffingtonpost.com)
• US Arms Sales to the Middle East Soar (mydd.com)
• Boeing Presses Congress to Order More of Its Planes (nytimes.com)
• Global fighter aircraft market heats up (thestar.com)
• Court blocks release of detainee photos (msnbc.msn.com)
• Could North Korea Provoke a New Korean War? (time.com)
• What a War in North Korea Would Look Like (time.com)

Is this what recovery looks like?

Image via Wikipedia

Bullish DBS says Asia is rebounding in a 'V-shape'

by Esther Fung, updated 10:34 AM Jun 09, 2009

SOUNDING a bullish note that some of its peers did not completely agree with, DBS Group Research yesterday issued a report suggesting Asia is on its way to an economic recovery because the region's production is rebounding in a V-shaped fashion.

"Asia is perched on a recovery path at the moment," said DBS chief economist David Carbon. "Industrial production (in Asia) is 70- to 85-per-cent back to pre-crisis levels and exports have recovered about a third of their lost territory."

A key development is strong month-on-month industrial production data for April in Taiwan, Singapore, Korea and Thailand, he said.

"We believe that the drop in both industrial production and exports was due more to "one-off" and other temporary factors than to fundamental imbalances in Asia, and that the upturn is mainly a result of those factors fading from the picture," Mr Carbon said.

"As such, we do not expect a W-shaped path (another down leg) in the near term."

He said some of the temporary factors include the exports fall after the Olympics, the weakness in commodity prices and the shock from the financial meltdown in the fourth quarter of last year.

"Exports have come back, but in the past month or two, the rebound in production has been even sharper," he said. "Normally, producers wait before they produce until they are sure the demand is for real, and they draw down their inventories. In this case, production has come back very strongly.

"My sense is that it's probably meant to remain that way, to have a nice big surge there. They never walk hand-in-hand anyway."

While other analysts agree that the worst is over, they differ on whether the recovery is V-shaped.

The recent pick-up in production could be due to restocking depleted inventories instead of the result of actual demand, said Standard Chartered economist Alvin Liew, adding that the plunge in production in late 2008 and early 2009 was so sharp that slightly better data would make the profile a V-shape.

"Can the trajectory persist in that manner? I doubt it," said Mr Liew.

Mr David Cohen of Action Economics, too, said the sustainability of the recent pick-up was not conclusive yet.

A lot still depends on how robust the recovery in Europe and the United States. Analysts noted that the US unemployment rate rose to 9.4 per cent in May from 8.9 per cent in April, suggesting that even if the US economy recovers later this year, any growth could remain weak.

"There is some indication that demand has stabilised, but I'd be careful to say that we're on a V-shaped recovery as there is no compelling reason to say that demand from the advanced economies has picked up," said Forecast Singapore economist Vishnu Varathan.

"A lot depends on whether the US consumer will continue spending."

From TODAY, Business – Tuesday, 09-Jun-2009

Related articles by Zemanta

• Memo From Singapore: East Asia's Small Edens of Trade Wilt as Need for Exports Dries Up (nytimes.com)
• Despair and the Vision of the New Economy (time.com)
• Recovery: American CFOs more optimistic than Europeans (money.cnn.com)
• Michigan Tries to Renew Itself Without King Auto (nytimes.com)
• Hints of Hope Even as Jobless Rate Jumps to 9.4% (nytimes.com)
• Creative destruction in times of recession (financialpost.com)
• Temasek dumps Bank of America stake (telegraph.co.uk)
• RBC index hints at rising U.S. consumer confidence (cbc.ca)
• Standard Chartered profits rise as Asia holds up (telegraph.co.uk)
• Unemployment rate climbs, but rate slows (washingtonmonthly.com)

Obama seeks fresh start

Will this really trigger a change, an impact in the US, the whole world?

----------

WASHINGTON — President Barack Obama will journey to the centre of Arab-Muslim civilisation this week to begin the daunting task of draining deep mistrust of the United States felt across the Islamic world.

In Egypt on Thursday, Mr Obama will make a personal address to the world's Muslims, harnessing his own ancestral ties to Islam and globalising his message of change in a speech rich in trademark political ambition.

His trip comes as some observers scent a moment of opportunity amid the perpetual Middle East crisis.

But others see only peril, with a showdown gathering pace between Washington and Israel over Jewish settlements and no end in sight to Iran's nuclear drive.

This trip's first stop, on Wednesday, will be Saudi Arabia, for talks with King Abdullah, seeking Arab support for US peace efforts.

But the highlight will be the speech at the University of Cairo, co-hosted by Al-Azhar University, an ancient hub of Islamic scholarship.

Mr Obama may try to use the charismatic rhetoric which helped make him president as a balm for region-wide mistrust of the US.

"I want to use the occasion to deliver a broader message about how the United States can change for the better its relationship with the Muslim world," he said last week.

The speech will also be a promise kept — way back in the presidential campaign Mr Obama pledged to speak before a major Islamic forum.

In Egypt, he will make references to the Islamic faith of some of his paternal family in Kenya, time spent in Indonesia as a young boy and contacts with Muslim communities in Illinois.

"The President himself experienced Islam on three continents before he was able to visit, really, the heart of the Islamic world," said foreign policy adviser Denis McDonough.

Some analysts predict though Mr Obama may fall short. "There's nothing Barack Obama could say to Muslims on June 4 that will make the US popular and he shouldn't try," said Mr Jon Alterman, of the Center of Strategic and International Studies.

"America's underlying interests are simply not allied with the policies that many Muslims around the world would like to see the US pursue."

The US image in the Muslim world has been stained by the invasion of Iraq, stalled Palestinian hopes for statehood and Bush administration acquiescence in Israel's offensives in Lebanon and Gaza. AFP

From TODAYonline.com, World news – Monday, 01-Jun-2009; see the source article here.

Related articles by Zemanta

• Muslims wait for Obama to deliver (thestar.com)
• Obama Visiting Saudi Arabia June 3 (huffingtonpost.com)
• Saudi commerce minister urges closer ties with U.S. (seattletimes.nwsource.com)
• U.S. Weighs Tactics on Israeli Settlement (nytimes.com)
• Justice Dept. Backs Saudi Royal Family on 9/11 Lawsuit (nytimes.com)
• The Mother of All Myths (windsofchange.net)
• "Terrorist Rehab" Documentary Explores 'Thought Security" In Saudi Arabia (VIDEO) (huffingtonpost.com)

Dollar wobbles as euro lifted by economic outlook

Posted: 29 May 2009 0557 hrs

NEW YORK - The dollar traded mixed while the euro gained ground Thursday as signs of improving economic conditions prompted renewed risk appetite among investors.

At 2100 GMT, the European single currency was quoted at 1.3943 dollars, up from 1.3868 dollars late Wednesday.

The dollar rose to 96.77 yen from 95.28 yen.

Joel Kruger at Forex Capital Markets said the US dollar was "under pressure on the back of stable equity prices and very good euro demand."

The dollar weakened after data showed an unexpectedly strong 1.9 percent increase in US durable goods new orders in April and new US unemployment claims fell to 623,000 in the past week, a better reading than forecasted by most analysts.

"The dollar has not been trading at a championship level lately with it hitting lows not seen since last fall against most major currencies over the past few days," PNC Bank analysts said.

"Ironically it is the positive tone surrounding recent US releases -- another way of saying data has stopped getting worse -- which has investors chasing higher yields elsewhere."

Euro buying was boosted after a European Union survey showed business and consumer confidence in the eurozone rose in May for the second consecutive month following an almost two-year slide.

"The confidence data suggest that both businesses and consumers are becoming more upbeat over recovery prospects following the major stimulative action and banking support measures that have been enacted both by central banks and governments," said IHS Global Insight economist Howard Archer.

"Sharply lower inflation is also clearly supporting consumer sentiment, although the upside is being limited by heightened and still rising unemployment fears."

The European Commission's economic sentiment indicator for the 16-nation bloc rose 2.1 points from April to 69.3 points. Last month, the figure was 67.2 points, a rise of 2.5, its first advance since May 2007.

In late New York trade, the dollar slipped to 1.0838 Swiss francs from 1.0890 late Wednesday.

The pound fell to 1.5943 dollars from 1.5984. - AFP /ls

From ChannelNewsAsia.com; see the source article here.

Related articles by Zemanta

• Europe's moment of truth (guardian.co.uk)
• Greece extends ban on genetically modified corn (cbc.ca)
• Europe Looks to Tighten Banking Supervision (nytimes.com)
• European Union Looks to Tighten Banking Supervision (nytimes.com)

A chance to replenish reserves

BUSINESS ANALYSIS

Rosalind Mathieson

THE recent slide in the US dollar against Asian currencies provides central banks in the region with the opportunity to do some quick replenishing of their foreign exchange reserves.

Buying the US dollar now means central banks can put some gas back in the tank for what could be a dollar renewal in the later part of the year — which may require the authorities in Asia to then sell the greenback to protect their local currencies.

And, of course, US dollar buying right now fulfils another aim, namely to keep a lid on emerging market Asian currencies in order to rekindle export demand.

There is the perception that foreign exchange reserves in Asia have been badly run down in the past year or so. Reserves are actually not as low as some people might think, but they have certainly been depleted by the heavy volatility in currency markets and the ongoing presence of a large speculative contingent.

Indeed, HSBC currency strategist Daniel Hui in a recent report estimated that regional reserves, ex-China, have fallen by a fifth in the past year.

Some central banks are already stepping up their US dollar buying, with those in South Korea, Hong Kong and Thailand spotted of late. The Monetary Authority of Singapore is also likely to have been keeping a lid on the Singapore dollar in order to maintain the currency's undisclosed price band.

US dollar weakness may persist in the near term for several reasons. One is that concerns have been brought front-and-centre of late about the US fiscal position, and the heavy amount of debt being taken onto the government's books.

Another is that some of the data from Asia have been showing a bit of resilience — though the emphasis there should be on the "bit" — and this, coupled with a rise in stock markets, has stoked a measure of risk appetite. Inflows have risen to emerging markets, pushing up stocks and currencies alike.

But central banks will want to avoid that going too far. Financial markets and economies alike are still very vulnerable, the recovery indicators are patchy and mild, and for some there is still the sense the worst is it not over for Asia or Europe.

So buying the US dollar now has a dual impact. It prevents Asian currencies from rising too quickly, and it allows central banks to put more ammunition in their arsenals should there be further economic or financial headwinds ahead.

Asian central banks are notoriously paranoid about depleting their reserves, having worked so hard to build them up since the previous financial crisis. They are very keen to make sure the coffers don't get whittled down again. That means "smoothing" operations to buy the greenback are likely to continue, and intervention could pick up in the coming months across Asia as a whole.

That should leave traders a little wary about pushing Asian currencies too high in the near term. The gains are momentum-based, not structural. Dow Jones

From TODAYOnline.com, Business – Wednesday, 27-May-2009; see the source article here.

Related articles by Zemanta

• Asian Markets Tumble on Fears About U.S. Consumer Spending (nytimes.com)
• Russia's waning appetite for dollars (blogs.cfr.org)
• World stocks fall sharply after Wall Street tumble (ctv.ca)
• Asian Stocks Gain on Renewed Confidence in Global Economy (nytimes.com)
• Dollar Rises as Asian Markets Flutter (nytimes.com)
• FTSE 100 loses gains as global rally fades (telegraph.co.uk)
• Asian markets tumble amid U.S. retail sales slide (cbc.ca)
• Roubini Global Economics: How severely will Asia be affected by the global recession? (investmentpostcards.com)