Tuesday, March 15, 2011

DTN News - MIDDLE EAST UNREST: Latest Developments In Arab World's Unrest

DTN News - MIDDLE EAST UNREST: Latest Developments In Arab World's Unrest
(NSI News Source Info) TORONTO, Canada - March 15, 2011:

Latest developments in the unrest sweeping the Arab world from North Africa to the Persian Gulf:

LIBYA:

Moammar Gadhafi's forces hit the rebellion's heartland with airstrikes, missiles and artillery. Rebels rush to the front and send up two rickety airplanes to bomb government ships, as mosques broadcast pleas for help defending a key gateway city to the rebel-held east.

The dramatic turn in Gadhafi's fortunes outpaces French and British efforts to build support for a no-fly zone, which falls apart in the face of German opposition and U.S. reluctance.

BAHRAIN:

Clashes sweep the country a day after a Saudi-led military force arrives to defend its Sunni monarchy from a Shiite-led protest movement demanding political freedoms and equal rights. Hundreds of demonstrators are injured by shotgun blasts and clubs, a doctor says, and the king declares a three-month state of emergency.

One demonstrator is shot in the head and killed, and a Saudi official says one of his country's soldiers is shot dead by a protester.

EGYPT:

Egypt's new interior minister dissolves the country's widely hated state security agency, which was accused of torture and other human rights abuses in the suppression of dissent against ousted President Hosni Mubarak's nearly 30-year rule. Dismantling the agency was a major demand of the protest movement that led the 18-day uprising.

Visiting U.S. Secretary of State Hillary Rodham Clinton, meanwhile, presses Egypt's transitional leaders to follow through on pledges for democratic reform

YEMEN:

Anti-government tribesmen in the north storm a security building and shoot dead four soldiers in a revenge attack after government troops open fire on opposition protesters calling for the president's ouster, witnesses say. The attack is a significant escalation by the anti-government side in a month of daily street protests in which stone-throwing demonstrators have clashed with security.

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DTN News - FINANCIAL NEWS: Japan Disaster Another Worry For Global Economy

DTN News - FINANCIAL NEWS: Japan Disaster Another Worry For Global Economy
(NSI News Source Info) TOKYO, Japan - March 15, 2011:

Japan's earthquake and nuclear crises have put pressure on the already fragile global economy, squeezed supplies of goods from computer chips to auto parts and raised fears of higher interest rates.

The disaster frightened financial markets in Tokyo and on Wall Street on Tuesday. Japan's Nikkei average lost 10 percent, and the Dow Jones industrials fell so quickly after the opening bell that the stock exchange invoked a special rule to reduce volatility.

Yet the damage to the U.S. and world economies is expected to be relatively moderate and short-lived. Oil prices are falling, helping drivers around the world. And the reconstruction expected along Japan's northeastern coast could even provide a jolt of economic growth.

A weaker Japanese economy could help ease global commodity prices because Japan is a major importer of fuel, agricultural products and other raw materials, notes Mark Zandi, chief economist at Moody's Analytics. Oil prices fell more than $4 to $97.18 a barrel Tuesday because of expectations that quake damage will slow Japan's economy and reduce its demand for energy.

Even "assuming a drastic scenario," Bank of America economist Ethan Harris estimates, the disaster would shave just 0.1 percentage point off global economic growth — to 4.2 percent this year.

"Japan has not been an engine of global or Asian growth for some time," says Nariman Behravesh, chief economist at IHS Global Insight. "This means that the impact of much lower Japanese growth on the world economy will be probably limited and small."

Japan is only half as important to the world's economy as it was during its last major disaster, the 1995 Kobe earthquake. And the area hit hardest by Friday's quake accounts for only about half as much economic output as the area damaged by the Kobe quake, the Organization for Economic Cooperation and Development estimates.

Japan proved resilient after the Kobe quake. Manufacturers returned to normal production levels within 15 months, according to the CLSA. Four in every five shops were back open in a year and a half. All told, Japan's comeback defied dire warnings that it would take a decade to rebuild.

Autos and auto parts make up more than one-third of U.S. imports from Japan. As a result, shutdowns of Japanese auto factories could disrupt production at U.S. plants owned by Japanese automakers.

At the same time, some U.S. auto parts makers could benefit if Japanese plants in the United States substitute U.S. parts for those they usually get from Japan, Behravesh says.

A big wild card is the fate of Japan's damaged nuclear power plants. The Fukushima Dai-ichi plant, the center of the concern, let off a burst of radiation on Tuesday. Radiation levels in the surrounding area subsided by evening, but unease in Japan did not.

"If the nuclear crisis turns into a full-blown catastrophe, then the negative effect on growth this year will be much larger," IHS' Behravesh says.

Another unknown is the impact of the disruptions to Japan's power supplies. Behravesh estimates about 10 percent of Japan's electricity generation could be off line for several months. If so, that would disrupt steel, auto and other production.

Investors fear that Japan will struggle to finance reconstruction, which is expected to cost the government at least $200 billion. The Japanese government's debt is already an alarming 225 percent of the country's economic output.

Some worry that Japan will sell some of its vast holdings of U.S. government debt to raise money. Doing so would push the prices of U.S. Treasury bonds down and yields up, raising U.S. interest rates.

But Treasury Secretary Timothy Geithner on Tuesday dismissed the fears of a Japanese fire sale of Treasury debt.

"Japan is a very rich country and has a high savings rate," he said. It "has the capacity to deal not just with the humanitarian challenge but also the reconstruction challenge they face ahead."

What's more, the Bank of Japan has been buying Treasurys and other assets as it pumps money into the financial system to restore calm.

For now, though, the latest quake, the resulting tsunami and the threat of contamination from a damaged nuclear plant have spooked financial markets. Investors are fretting about the effects on companies around the world. Japan, the world's third-largest economy, accounts for about 10 percent of U.S. exports.

The Dow Jones industrials rebounded after starting the day down almost 300 points. They closed down 137 points, or 1.1 percent. The futures markets, which can indicate whether stocks will rise and fall, looked so pessimistic before the opening bell on Wall Street that the stock exchange invoked a special rule designed to ease volatility.

Stocks plunged 5 percent in Germany and 4 percent in France. And in Japan, the benchmark Nikkei average lost more than 10 percent of its value in a matter of hours.

The quake damaged roads, ports, airports and factories in Japan, disrupting the shipment of goods in and out. The disaster blindsided multinational companies that were bracing for trouble in their transportation lines on the other side of the world — at the Suez Canal or elsewhere in the Middle East where protests are destabilizing countries from Bahrain to Libya, says Patrick Burnson, executive editor of Supply Chain Management.

It's shut down auto and auto parts factories. Analysts at Tong Yang Securities in South Korea "do not expect production to normalize anytime soon" in Japan. Even plants that stay open may have to wait for parts to arrive, a problem made worse because so many factories follow just-in-time supply management and keep few parts on hand.

Car plants in Thailand could have a harder time getting steel, much of which is imported from Japan.

Japan is a major supplier of NAND flash memory chips, commonly used in portable electronics. Japan-based Toshiba Corp., a big maker of the chips, was among the technology companies that temporarily closed facilities.

Prices for the chips jumped 10 percent from before the earthquake to Monday and another 3 percent Tuesday, according to Jim Handy, a director at Objective Analysis and an expert on the electronics and semiconductor industries.

The "wafers" that are key building blocks of computer chips are also commonly made in Japan. A shortage could pinch big buyers such as Intel Corp., the world's biggest semiconductor company, and Texas Instruments Inc. — though one firm, Barclays Capital, believes Texas Instruments has enough in stock to get by. Supplies are lean of capacitors and other electronics used in cellphones, which are also often made in Japan. Nokia Corp. relies heavily on Japan for those electronics.

Chinese companies are bracing themselves for losses and delays from disruptions in shipments of high-end electronics and auto components from Japan and some are looking for import replacements from South Korea or Taiwan, according to the International Business Daily, the official paper of China's Commerce Ministry.

Some analysts note that companies and consumers that now buy Japanese products can often find alternatives made elsewhere.

"What is made in Japan now has lots of competitive alternatives that didn't exist 25 years ago," says Peter Morici, a professor at the University of Maryland and a former director at the U.S. International Trade Commission. "If there aren't as many Camrys in the country this year as there might have been, you might have a couple hundred thousand additional Ford customers. If those people have good experiences with those cars, it could change buying patterns for life."

David Rea, an economist with Capital Economics in London, said, "You'll have Japan's competitors — largely South Korea and Taiwan, who are in high end manufacturing, and China as well — come in and undercut Japanese businesses experiencing disruption from the earthquake."

If Japan's infrastructure doesn't get rebuilt quickly enough, Japanese companies may transfer production overseas to pick up the slack, Rea added.

The reconstruction of Japan's northeastern coast might also provide business opportunities for foreign countries. Malaysian timber, for instance, will likely be needed to rebuild homes and other buildings. IHS predicts that the quake will "ultimately boost" U.S. exports to Japan.

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DTN News - DEFENSE NEWS: Israeli Navy Intercepts Egypt-Bound Ship With Arms

DTN News - DEFENSE NEWS: Israeli Navy Intercepts Egypt-Bound Ship With Arms
(NSI News Source Info)

JERUSALEM, Israel

- March 15, 2011:

The Israeli navy intercepted an Egyptian-bound ship carrying a large delivery of weapons off the country's Mediterranean coast on Tuesday, the military said.

The military said the cargo vessel "Victoria" originated in a Turkish port but insisted that Turkey had no involvement in the shipment. The ship is German-owned, operated by a French shipping company and flying under a Liberian flag, the military said.

The interception occurred about 200 miles off Israel's Mediterranean coast and Israeli troops met no resistance. The vessel is now being hauled back to the Israeli port of Ashdod, according to the military.

The military gave no details on what types of arms were on board, but said it was intended for the use of terror organizations operating in the Gaza Strip. In the past, Israel has accused Hamas militants of shipping arms through Egypt.

German, French and Liberian authorities have been notified of the seizure.

The operation is reminiscent of the November 2009 Israeli takeover of the Iranian Francop vessel off the coast of Cyprus. Israel captured hundreds of tons of rockets, missiles, mortars, grenades and anti-tank weapons on board headed to Hezbollah guerrillas in Lebanon.

In January 2002, Israeli forces stormed the Karine A freighter on the Red Sea, and confiscated what the military said was 50 tons of missiles, mortars, rifles and ammunition headed for Palestinian militants in the Gaza Strip.

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DTN News: Afghanistan Top Stories / Headlines News Dated March 15, 2011

DTN News: Afghanistan Top Stories / Headlines News Dated March 15, 2011
Source: DTN News - - This article compiled by Roger Smith from reliable sources Afghanistan News. net
(NSI News Source Info) TORONTO, Canada - March 15, 2011: Comprehensive daily news related to Afghanistanfor the world of TODAY.
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Breaking Afghanistan News - Afghanistan News.Net
*Link for This article compiled by Roger Smith from reliable sources
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