Today's Headlines

Bloomberg:

• Conflicting Information Drives Fear in Japan Reactor Disaster. Accurate and timely information from Tokyo Electric Power Co. about the accident at its nuclear plant in northern Japan has been hard to come by. About 60 reporters at a March 16 briefing with utility officials wanted to know whether helicopters would dump seawater on reactors at the Dai-Ichi station to prevent a meltdown. The company was considering the plan, said Masahisa Otsuki, head of the nuclear maintenance division. At the same time, a live broadcast on a nearby TV screen showed a helicopter taking off with a massive bucket of water hanging from its belly. Reporters barraged the officials. “We are sorry,” a spokesman said. “We need to check on this.”
• Radiation Testing Weighed for Japanese Food Imports, U.S. Regulators Say.
  
• Bahrain Arrests Four Opposition Leaders as Crackdown Widens. Bahraini police arrested at least four opposition leaders a day after imposing a military curfew on parts of the country and forcing protesters from a central roundabout in the capital. Those arrested included Hassan Mushaima, a leader of the Shiite Haq movement, and Ebrahim Sharif, head of the opposition National Democratic Action Society, according to a statement today from al-Wefaq, the largest Shiite opposition party in the country. Mushaima’s Haq party boycotted October parliamentary elections, calling them illegitimate.
• Industrial Production in U.S. Falls .1%; Manufacturing Gains. Production at U.S. factories increased for a sixth month in February, indicating manufacturing will keep stoking the economy and underscoring the Federal Reserve’s view of a stronger expansion. The 0.4 percent rise in manufacturing output, which makes up 75 percent of all industrial production, followed a 0.9 percent January gain that was three times as large as initially estimated, Fed figures showed today. A gauge of Philadelphia- area factories unexpectedly climbed to a 27-year high.
• Consumer Comfort in U.S. Drops to Lowest Level Since August. Consumer confidence plunged last week to the lowest level since August as rising gasoline prices made Americans more pessimistic about the economic outlook and their finances. The Bloomberg Consumer Comfort Index dropped to minus 48.5 in the period to March 13 from minus 44.5 the prior week. Sentiment fell across most income and age groups and worsened for all education levels. Higher gasoline prices persisted for another week, becoming a bigger concern for Americans already dealing with rising grocery bills. The report showed confidence among households with annual incomes exceeding $100,000 fell to the lowest level in November, posing a risk for consumer spending, the biggest part of the economy. “Consumers across different income and demographic groups are feeling the pain of rising prices at the pump,” said Joseph Brusuelas, a senior economist at Bloomberg LP in New York. “It’s even biting those making more than $100,000, and they’re the ones who’ve been a primary driver of the recovery. It’s likely to restrain growth this quarter.” The Bloomberg comfort index, which began December 1985, fell to a record low of minus 54 in November 2008, while the peak of 38 was reached in January 2000. An index of the buying climate fell to minus 57.4, the lowest since October 2009, from minus 53. Those saying it was a good time to buy needed items plunged to 2 percent from 20 percent the previous week. The average price of regular gasoline at the pump climbed another 5 cents to $3.56 a gallon in the week ended March 13, according to AAA, the nation’s biggest motoring organization. That followed a gain of 14 cents the prior week and 20 cents a week before that. The report is “showing trouble across the board,” Gary Langer, president of Langer Research Associates LLC in New York, which compiles the index for Bloomberg, said in a statement.
• China Shoppers Hoard Salt as Protection on Fear Japan Radiation to Spread. Chinese shoppers cleared shelves of salt, viewed as a defense against radiation exposure, as the government sought to allay concern that fallout from a stricken Japanese nuclear facility might reach its shores. The Ministry of Environmental Protection released a chart on its Web site showing radiation levels in 41 cities, from Dalian in the northeast to Tibet in the west are within normal ranges. People shouldn’t take potassium iodide tablets used to combat radiation unless the government recommends it, the Center for Disease Control and Prevention said on its site.
• India Raises Interest Rates for Eighth Time in a Year to Reduce Inflation. India’s central bank increased interest rates for the eighth time in a year after raising its inflation forecast twice in three months. Stocks and bonds fell. The Reserve Bank of India raised the repurchase rate to 6.75 percent from 6.5 percent, according to an e-mailed statement today. All 26 economists in a Bloomberg News survey had predicted the decision. It boosted the reverse repurchase rate to 5.75 percent from 5.5 percent. Governor Duvvuri Subbarao extended the steepest rate increases among Asia’s major economies after the government last month unveiled plans to lower taxes and boost spending. The Reserve Bank also has to contend with the impact of higher oil prices on inflation, which cuts purchasing power in a nation where the World Bank says more than three-quarters of the people live on less than $2 a day. “The RBI needs to tighten more to bring inflation under control,” said Devika Mehndiratta, a Singapore-based economist at Credit Suisse Group AG. “Price pressures are building up quite sharply.” Mehndiratta expects a half-point increase in rates by September. India’s key wholesale-price inflation quickened to 8.31 percent in February, led by manufactured product costs. The Reserve Bank today raised its March-end inflation forecast to 8 percent from 7 percent, according to the statement. “The underlying inflationary pressures have accentuated, even as risks to growth are emerging,” the central bank said in the statement. “As domestic fuel prices are yet to adjust fully to global prices, risks to inflation remain clearly on the upside, reinforced by the persistence of demand-side pressures.”
• FedEx(FDX) Surges After Quarterly Profit Forecast Beats Estimates. FedEx Corp. (FDX), operator of the world’s biggest cargo airline, climbed the most since July after predicting higher profit this quarter than analysts estimated amid the global economic recovery. The stock jumped as much as 6 percent after FedEx said per- share earnings for the fiscal fourth quarter ending May 31 will be $1.66 to $1.83 a share. Analysts had projected $1.66, the average of 22 estimates in a Bloomberg survey.

Wall Street Journal:

• Japan Claims Modest Gains in Bid to Cool Nuclear Plant. Japanese authorities claimed modest gains Thursday in their efforts to tame a heavily damaged nuclear-power plant that has caused worries around the world, but increasing international skepticism and troublesome levels of radiation on the ground underscored the ongoing difficulties. Authorities attempted to douse the troubled Fukushima Daiichi nuclear-power complex with some 100 tons of seawater on Thursday using helicopters and fire trucks, an urgent effort to combat rising temperatures in two storage pools for spent nuclear fuel. Radiation levels at the site fell slightly.
• U.S. Seeks Range of Strikes on Libya at U.N. The Obama administration is seeking a U.N. Security Council resolution that would authorize a wide range of possible military strikes against the forces of Libyan leader Col. Moammar Gadhafi, aimed at preventing them from overrunning rebels and civilians in the country's east, officials said. In discussions with other U.N. Security Council members, the Obama administration is making the case that a no-fly zone alone would be "insufficient" to save the rebel capital of Benghazi, in eastern Libya. The Obama administration is seeking a broad U.N. authorization for strikes aimed at holding back Libyan ground and air forces with the aim of protecting Benghazi and avoiding a humanitarian crisis there. Military operations could include a no-fly zone but would not be limited to that, officials said.
• Investor Criticizes Shadow Market. Ben Horowitz, a prominent Silicon Valley venture capitalist, criticized the unregulated "shadow market" that has fueled trading in shares of technology start-ups like Facebook Inc. and Twitter Inc. before they go public. Mr. Horowitz, a partner at Andreessen Horowitz, said these secondary markets operate with "asymmetric" information and often "inflate" private share prices. He said regulators may decide to step in if smaller investors start getting hurt.
• Europe Banks Won't Get Stress Test Capital Minimum Rules Fri - BdB. European banks asked to take part in the European Union's stress test aren't likely to get the long-awaited rules on minimum capital required to pass by Friday, the BdB lobby group representing German commercial banks said Thursday.
• Interview: Globalfoundries Assessing Japan Impact on Silicon Supply. Contract chip maker Globalfoundries is assessing the impact of a disruption of silicon supply out of Japan on its business, with Japan's natural disaster highlighting the challenge of managing risk in global distribution in the semiconductor industry, the head of its major shareholder said Thursday. "Twenty percent of the entire semiconductor industry comes from Japan, but a lot more than that is silicon from Japan," Ibrahim Ajami, chief executive officer of Advanced Technology Investment Co., or ATIC, told Zawya Dow Jones in an interview.
• Japanese Ministry of Finance: 'Ready for Battle'. One of the biggest mysteries about the recent volatility in the markets related to Japan is when Japanese authorities would intervene in the markets to stabilize the wild swings we’ve seen recently in the yen. There are recent signs that officials there are trying to jawbone the financial markets into backing off from betting big on swings in Japanese markets. Bradley Davis of Dow Jones Newswires reports:
• Law School Loses Its Allure as Jobs at Firms Are Scarce. Student applications to law schools are down sharply this year, as college seniors grow leery of a degree that promises certain debt and uncertain job prospects. The number of law-school applicants this year is down 11.5% from a year ago to 66,876, according to the Law School Admission Council Inc. The figure, which is a tally of applications for the fall 2011 class, is the lowest since 2001 at this stage of the process.

Business Insider:

• Gasparino: Lloyd Blankfein is Ready to Leave Goldman(GS). According to Gasparino, Lloyd Blankfein's friends say he's on the way out.
• EU Sets Out to Crush Ireland.
• Dramatic Pictures of Dark and Empty Tokyo.
• Californians Overwhelmingly Favor Pension Limits. California voters support limits on public-employee pensions by a 3-to-1 margin, according to the Field Poll.
• Iran Will Respond With "All Power and Potentials at Its Disposal to Halt The Oppression of the People of Bahrain".
  

Zero Hedge:

• Libya Threatens Counterstrike Against Civilians, Mediterranean Traffic , If Attacked as UN Set to Vote On Air Strikes at 6pm.
• US, UK Pull Search Teams Out of Japan as TEPCO Admits Situation is "Severe".
  

New York Post:

• Radioactive Fliers Land in US. Two flights that originated in Tokyo and landed in Dallas and Chicago yesterday triggered radiation detectors when passengers passed through customs, The Post has learned. Tests on the jet that landed at the Dallas-Fort Worth airport showed low levels of radiation on the travelers' luggage and inside the cabin's filtration system.

LA Times:

• Small Amounts of Radiation Headed for California, But No Health Risk Seen. Very low levels of radioactive isotopes from the damaged Japanese nuclear plant are expected to reach California as soon as Friday, but experts say the amount will be well within safe limits. A network of radiation monitors is keeping close watch.
• Shortage of Japanese Parts Shuts GM(GM) Truck Factory. General Motors said Thursday that it will suspend production of Chevrolet Colorado and GMC Canyon pickup trucks at a factory in Shreveport, La., for at least a week starting Monday because of a shortage of parts coming from Japan. About 900 employees work at the plant.

Politico:

• Paul Ryan: President Obama 'Punting' on Budget. Rep. Paul Ryan (R-Wis.) accused Barack Obama of “punting” on the budget debate Thursday, saying the president is “ignoring the problem.” The House Budget Committee chairman said he has “never discussed” budgetary issues with Obama — the last time the two talked one-on-one was during a congratulatory phone call the president made after the November elections, when Republicans swept the lower chamber.
• Dems Wonder: What's Our Plan? Democrats in Congress are grappling with a question as they negotiate a spending deal: Who's in charge?
  

Rasmussen Reports:

• Daily Presidential Tracking Poll. The Rasmussen Reports daily Presidential Tracking Poll for Thursday shows that 21% of the nation's voters Strongly Approve of the way that Barack Obama is performing his role as president. Forty-one percent (41%) Strongly Disapprove, giving Obama a Presidential Approval Index rating of -20 (see trends).

Valor:

• The U.S. Export-Import Bank plans to provide a loan of $1 billion for deep-water oil exploration in Brazil. The bank will also help finance Brazilian infrastructure projects for the 2014 World Cup and 2016 Olympics. The bank plans to announce the loans during President Obama's visit to Brazil this week.

Globe and Mail:

• RIM's(RIMM) Messenger Remedy Not Satisfactory, India Says. Indian security agencies are not satisfied with a plan offered by Research In Motion for them to have access to data on its BlackBerry Messenger services, junior Telecoms Minister Sachin Pilot told parliament Wednesday. RIM gave India access to its consumer services, including its Messenger services, in January after Indian authorities raised security concerns, but said it could not allow monitoring of its enterprise e-mail.

DigiTimes:

• PC Supply Chain Still Has Up to 3 Months of Inventory, Says Acer Taiwan President. Acer Taiwan president Scott Lin has pointed out that the PC industry's upstream supply chain still has an inventory level of about 2.5-3 months, and therefore will only see limited impact from Japan's earthquake; however, since some PC players are rushing to stockpile more inventory, causing the price of DRAM and panels to rise, players will see their component costs increase in the short term. As for the damage to the supply of silicon wafers and panel conductive adhesives from Japan, since the two components are already showing signs of shortages, Acer is monitoring their supply status and will take measures when needed. Since retail channels still have about one month of inventory, while brand vendors and upstream OEM players each have about one month of inventory, the PC supply chain should not have any problems within the next 2.5-3 months. As for long term, restoring Japan's power system will be key to whether the shortage problems expand, Lin noted.

ICIS.com:

• Japan Disaster: Tokyo Staff Told to Leave Offices on Blackout Fears. Staff from several petrochemical-related firms have been told to vacate their offices on fears of a possible large-scale blackout in Tokyo and its surrounding areas on Thursday night, company sources told ICIS. Demand on Thursday morning had almost reached the available capacity of Tokyo Electric Power Co (TEPCO), trade minister Banri Kaieda said, according to Reuters. Electricity demand usually peaks in the evening or early night, Kaieda added. The 9.0-magnitude earthquake and tsunami, which hit Japan’s northeast on 11 March, damaged TEPCO’s Daiichi nuclear facility, forcing disruptions for industrial operations and a cut in electricity supplies across the northern region of the country. TEPCO earlier this week said that it may impose a rolling blackout during an upcoming three-day weekend for Tokyo and the nine prefectures it serves. A source from Mitsubishi Corp said wide scale blackout is possible on Thursday night as electricity consumption in the city is almost at breaking point.

Jiji:

• Four ethylene plants in eastern Japan were halted because of the March 11 earthquake, citing Kyohei Takahashi, chairman of the Japan Petrochemical Industry Association. The plant shutdowns in Kashima, Chiba and Kawasaki will reduce the country's output of ethylene by 25%.

Shanghai Daily:

• Lenovo Warns About Battery Shortage. LENOVO, the world's No. 4 personal computer brand, joined a growing list of companies in several industries warning of disruptions to their production in the medium term, as stocks of components such as batteries dwindle. "In the short term there won't be much impact. We are more worried about the impact in the next quarter," Lenovo Chief Executive Yang Yuanqing said in Shanghai yesterday.The supply of batteries for notebook PCs ... could come under pressure, as key suppliers such as Sony Corp have shut down factories in Japan, said Michael Clendenin, managing director of RedTechAdvisors, a Shanghai-based firm. "Sony and Sanyo would be two of the key suppliers, and Sony has essentially shut down five or six of its factories in Japan," Clendenin said.

Caixin:

• China's consumer price index growth may rise 5.5% in April, citing an official at the People's Bank of China.