Portugal Pushed Closer to EU Bailout After Socrates Budget Cuts Defeated. Portuguese Prime Minister Jose Socrates tendered his resignation after plans to cut the budget were rejected by parliament, pushing the country closer to an international bailout. President Anibal Cavaco Silva said late yesterday he will meet the main parties on March 25 and the government will retain its powers until he accepts Socrates’s resignation. The vote came hours before European Union leaders meet in Brussels to sign off on measures aimed at drawing a line under the region’s sovereign debt crisis. The risk is that investors dump Portuguese bonds in the face of a political stalemate that delays the negotiation of a rescue package, which Royal Bank of Scotland Group Plc estimates may be worth around 80 billion euros ($113 billion). The cost of insuring Portuguese debt against default is near a record high. “It’s pretty inevitable” that Portugal will need a rescue, said Jacques Cailloux, a London-based economist at Royal Bank of Scotland, in a phone interview. “The market will deteriorate in the absence of other measure going through. There is obviously the risk of further downgrades, which will become anticipated by the markets and be a self-fulfilling prophecy.” The spread between Portuguese and German 10-year bond yields widened 16 basis points to 438 basis points yesterday after reaching a euro-era record of 484 on Nov. 11.
Top-Ranked Fund Backs Portugal Over Spain on Banks: Euro Credit. The Spanish economy is in even worse shape than Portugal's because of losses linked to real estate at the country's banks. That's the view of Fernando Bernad, who helps manage funds including Spain's top-performing Bestinver Bolsa, which returned 281% during the past decade. Bernad's outlook conflicts with increasing speculation that Portugal may follow Greece and Ireland in requiring a European Union-led financial rescue. "We think that the Portuguese economy has fewer problems than Spain's and that the market is wrong it its evaluation of the relative problems of Portugal and Spain," Bernad said. The spread between the yield on 10-year Portuguese debt and Spanish bonds of similar maturity has widened to 242 basis points from 78 on Dec. 7.
U.S. Credit-Default Swaps Increase With Portugal 'On the Brink'. The cost of protecting U.S. corporate bonds from default rose as Portugal’s pending budget vote, which may trigger a bailout, put Europe’s debt crisis back in the spotlight. The Markit CDX North America Investment Grade Index, which investors use to hedge against losses on corporate debt or to speculate on creditworthiness, increased 0.2 basis point to a mid-price of 97 basis points as of 5:19 p.m. in New York, according to index administrator Markit Group Ltd. “Portugal is on the brink and that still has to fully register with investors, what that means for this continent,” said David Nowakowski, strategist at Roubini Global Economics LLC in London. “It still has to be dealt with at some point and that’s going to be pretty soon.” “We don’t think the risks are fully priced in,” he said. The credit swaps index, which typically rises as investor confidence deteriorates and falls as it improves, is up from 79.2 basis points on Feb. 8. “The whole situation is bad and getting worse,” said Bonnie Baha, head of the global developed credit group at DoubleLine Capital LP, which has $9 billion under management. “Investors have very short memories. I don’t think they appreciate the interconnectivity between the European banking system and the rest of the world.”
Boehner Calls on Obama to Explain 'Contradiction' on Libya. U.S. House Speaker John Boehner asked President Barack Obama to explain the “contradiction” between U.S. goals for regime change in Libya with a United Nations mandate limited to curbing Muammar Qaddafi’s ability to attack civilians. In a letter today, Boehner asked the president how the Libyan leader would be removed from power if the UN resolution authorizing force against Qaddafi “makes clear that regime change is not part of” the international mission.
Allies Pressure Qaddafi Forces as U.S. Seeks NATO Command. Libyan government forces increased their attacks on cities, killing 16 people yesterday in embattled Misrata and six in the nearby coastal town of Zentan, opposition spokesman Abdulhafid Ghoga said at a news conference in Benghazi.
Hong Kong Bars Some Japan Produce After Finding Elevated Radiation Levels.Hong Kong barred imports of agricultural products from parts of Japan after finding levels of radioactive iodine in turnip and spinach samples as much as 10 times the level the city allows in food. Hong Kong will bar dairy products, vegetables, fruits, meat and seafood from the five Japanese prefectures most affected by the March 11 quake, Clement Leung, the city’s director of food and environmental hygiene, said at a press conference yesterday. “We have reason to believe that contaminated food has had the chance to flow out from Japan,” Leung said in the e-mailed press release yesterday.
Japan Misses Deliveries as Xbox Shop Struggles: Freight Markets. Microsoft Corp. (MSFT)’s repair operations for Xbox units ground to a halt in Japan’s Fukushima prefecture when the earthquake knocked out power. Then the lights came on to reveal another hurdle: Shipments of the game consoles had been impaired after the disaster two weeks ago. Microsoft is among hundreds of companies affected by the loss of normal pickups and deliveries. United Parcel Service Inc. (UPS) and FedEx Corp. (FDX) couldn’t reach the facility in northeast Japan for several days, said a person familiar with the matter who isn’t authorized to comment publicly.
Indian stocks have diverged from global equities by the most in more than five years, as accelerating inflation spurred higher interest rates and corruption allegations sapped investor confidence. The correlation coefficient for the benchmark Bombay Stock Exchange Sensitive Index and the MSCI All-Country World Index fell to .15 on March 21, the lowest since August 2005, data compiled by Bloomberg show. The Sensex has tumbled 11% this year.
CNOOC Plans New Oil Fields, Acquisitions After Record Profit. Cnooc Ltd. (883), China’s biggest offshore oil producer, plans to start new fields at home and add assets abroad after its fastest output growth boosted annual profit by 85 percent. “Rapid growth of the company’s production will continue over the next few years,” Chairman Fu Chengyu said yesterday after reporting net income reached a record 54.4 billion yuan ($8.3 billion). Cnooc will tap its cash flow to ramp up exploration and acquire more assets, Fu said in Hong Kong.
Red Hat(RHT) Rises as Revenue, Earnings Beat Analysts' Estimates. Red Hat Inc. (RHT) rose as much as 10 percent in extended trading after the largest seller of Linux software reported fiscal fourth-quarter revenue and per-share earnings that exceeded analysts’ predictions. Sales rose 25 percent to $244.8 million in the three months that ended Feb. 28, compared with the $235.1 million average estimate of analysts surveyed by Bloomberg. Per-share earnings, excluding certain items, were 26 cents, beating the 22 cents projected by analysts.
Wall Street Journal:
Saudis Raise Pay and Plan Polls, But Woes Linger. A host of new benefits promised recently by Saudi King Abdullah will boost the income of many Saudi citizens and may help the kingdom avoid the regime-shaking unrest that has roiled neighboring Arab countries. But the estimated $93 billion of government handouts doesn't address one of the kingdom's most destabilizing problems: the persistently high level of unemployment among Saudi youth, some analysts, employers and job seekers say.
Algerian Protesters Clash With Riot Police. Hundreds of people clashed with riot police in a poor neighborhood of the Algerian capital on Wednesday, in an eruption of violence that speaks to the growing social unrest across the North African country. The clashes broke out at dawn when city authorities ordered bulldozers to destroy a group of houses built on a public garden on the grounds that they had been illegally constructed. Estimates of the number of people injured differed: Witnesses said about 40 wounded people were evacuated by ambulances. Local police said 20 people, mainly police officers, had been hurt in the clashes.
Executive Showdown at the Big Board Corral. In 2008, NYSE Euronext Chief Executive Duncan Niederauer arrived at an investor conference early to hear comments by Robert Greifeld, the head of rival exchange operator Nasdaq OMX Group Inc.
Tax Holiday Rejected On Overseas Profits. The Obama administration on Wednesday rejected the idea of a tax holiday for U.S. multinationals' overseas income, criticizing a plan being floated by some House Republicans and multinational companies for a stand-alone relief measure.
MarketWatch:
Japan Agency: Radiation High Outside 30-km Radius. People living outside a 30-kilometer radius of Japan's stricken nuclear power plant may have been exposed to elevated levels of radioactive substances, an estimate by Nuclear Safety Commission of Japan showed late Wednesday. In some parts of cities and towns more than 30 kilometers northwest and south of Tokyo Electric Power Co.'s (9501.TO) Fukushima Daiichi nuclear power station, people may have been exposed to a total of more than 100,000 microsieverts of radioactive iodine since the beginning of the nuclear disaster following the March 11 earthquake and tsunami in Japan, the estimate showed. The allowable annual radiation exposure for workers in radiation operation and police and firefighters in disaster prevention is 50,000 microsieverts, and the limit in case of an emergency operation is at 100,000 microsieverts, according to Ministry of Education, Culture, Sports, Science and Technology.
Japan May Take On Portion of Tepco's Compensation. The Japanese government is looking at paying off a portion of the compensation Tokyo Electric Power will owe to evacuated residents, local farmers and others directly hit by the emergency at the Fukushima Daiichi nuclear power plant, the Nikkei reported.
Why Won't the Fed Accept a Profitable Deal From AIG(AIG)? For months, the Federal Reserve has insisted it has an exit strategy in place and has all the tools necessary for reversing the extraordinary monetary policy put in place during the financial crisis. But now, faced with a formal offer to exit at a profit from one of the thorniest crisis-era holdings on its balance sheet, the Fed has remained silent and seemingly without a strategy.
Business Insider:
Congressman Wants Justice Department To Investigate 'Terrorist Plans' In Former Union Official's Bank Plot. The Blaze has obtained an exclusive letter sent from Rep. Jason Chaffetz (R-UT) to Attorney General Eric Holder regarding shocking video uncovered by The Blaze on Tuesday. In the letter, Chaffetz references video, posted yesterday on this site, showing a one-time SEIU official, Stephen Lerner, outlining a plan to collapse the American economy — including crashing the stock market — so that unions can become more powerful.
Jerusalem Bombing Raises Fears Of Militants' Ties To Iran. The bus attack in Jerusalem today has raised concerns the militant presence is growing stronger and more capable in the West Bank as well as in the Hamas-controlled Gaza strip, Stratfor reports.
The "Fukushima Fifty"Whatever one thinks about the near-criminal strategy taking place behind the scenes as to how Japan is handling the bailout, one thing is certain: the 50 Tepco workers who are currently laboring at Fukushima, doing all they can to restore the plant back to life, even at the cost of their own lives, are doing a tremendous service to their fellow citizens (futile or otherwise), and deserve to be called heroes. The Mail has compiled what little information is available about these impromptu martyrs, of whom five are believed to have already died and 15 are injured while others have said they know the radiation will kill them, in a piece that everyone should read.
Fed's Clash With Bank of America(BAC) Raises Questions. This month, Bank of America gathered hundreds of investors and analysts in an ornate ballroom at the Plaza Hotel for the Wall Street equivalent of a coming-out party — with executives talking up a dividend increase and declaring that a “new era” for the company had begun. There was just one problem: the Federal Reserve was not on board.
Bank of America(BAC), JPMorgan(JPM) Cling to Top Positions in Bank Rankings. In a ranking of the 50 largest banks and thrifts by assets the top 13 banks saw no changes in their positions in the fourth quarter of 2010. Bank of America kept the top spot with $2,264.9 trillion in total assets followed by JPMorgan Chase with $2,117.6 trillion. The two banks are the only ones on the U.S.-based list with more than $2 trillion in assets.
CNN Money:
Toyota(TM) Tells U.S. Plants 'Prepare to Shut Down'. Toyota's U.S. manufacturing arm is preparing for a possible shutdown because of parts shortages from Japan, a Toyota spokesman said. Word has gone out to all 13 of Toyota's factories in the United States, Canada and Mexico. This does not mean that the plants will stop working, Toyota spokesman Mike Goss said, but that they should be ready in case the need arises.
How Obamacare Repeal Really Happens. If Republicans really do repeal the president’s health care law, they’ll do it in 2013 with control of the presidency and the Senate.
Reuters:
Libya Rebels Name US-Based Academic as Finance Chief. The Libyan rebel national council on Wednesday named U.S. based academic Ali Tarhouni as the top financial official in a transitional government they are in the process of setting up. Tarhouni will head the financial and commercial committee, in effect acting as finance minister, spokeswoman Iman Bughaeus told reporters. Tarhouni has a doctorate in economics and finance from Michigan State University and teaches at the Foster School of Business at the University of Washington, Seattle. "He understands the Western mentality," she said. Tarhouni has been a member of the Libyan opposition for 40 years while living in the United States.
Chipmaker Micron(MU) Focuses on Japan Wafer Supplies. Micron Technology is trying to secure its supply of crucial silicon wafers following Japan's devastating earthquake and said it was too soon to gauge the disaster's impact on its business. Immediately following the quake earlier this month, shares of Micron surged on news that competitor Toshiba temporarily stopped production of NAND flash memory chips -- used in smartphones and other wireless devices -- at its facilities in Yokkaichi. But executives at the top U.S. maker of memory chips for computers and mobile devices told analysts on a conference call on Wednesday it was too early to say whether the natural disaster would amount to a net benefit or hindrance.
Citi(C) Reverse Split Will Hit Trading Volume. Citigroup's reverse share-split could lead to a sharp reduction in U.S. equity trading volume, hurting the profitability of exchanges and traders.
Oil companies, including OMV AG, DNO International ASA and Occidental Petroleum Corp.(OXY), are evacuating foreign employees from Yemen as the political turmoil and violence in the country escalates, citing officials.
The Spanish banking industry will get a "massive" ratings downgrade by Moody's Investors Service today.
Sueddeutsche Zeitung:
German carmakers are considering government-subsidized shorted work hours owing to the Japan crisis, citing the Federal Labor Agency.
NHK:
The Tokyo government will distribute 240,000 bottles of water on March 24 to families with infants after radioactive material was found in the city's tap water.
Tokyo Electric Power Co. Executive Vice President Takashi Fujimoto said at a briefing that power blackouts will be inevitable this summer.
China Daily:
China Plans $152 Million Artificial Rain Program. China will invest more than $152 million in the nation's first regional program to artificially enhance percipitation, citing Wang Guanghe, deputy director of the artificial weather intervention center under the China Meteorological Administration.
Evening Recommendations
None of note
Night Trading
Asian equity indices are -.25% to +.75% on average.
Asia Ex-Japan Investment Grade CDS Index 115.0 -2.0 basis points.
Durables Goods Orders for February are estimated to rise +1.2% versus a +2.7% gain in January.
Durables Ex Transports for February are estimated to rise +2.0% versus a -3.6% decline in January.
Cap Goods Orders Nondef Ex Air for February are estimated to rise +4.3% versus a -6.9% decline in January.
Initial Jobless Claims for last week are estimated to fall to 383K versus 385K the prior week.
Continuing Claims are estimated to fall to 3700K versus 3706K prior.
Upcoming Splits
None of note
Other Potential Market Movers
The Fed's Duke speaking, Bloomberg weekly Consumer Comfort Index and the weekly EIA natural gas inventory report could also impact trading today.
BOTTOM LINE: Asian indices are mostly higher, boosted by financial and commodity shares in the region. I expect US stocks to open modestly higher and to weaken into the afternoon, finishing mixed. The Portfolio is 75% net long heading into the day.
North American Investment Grade CDS Index 97.32 +.84%
European Financial Sector CDS Index 106.96 +2.75%
Western Europe Sovereign Debt CDS Index 170.08 bps +1.19%
Emerging Market CDS Index 212.54 -2.14%
2-Year Swap Spread 20.0 unch.
TED Spread 22.0 unch.
Economic Gauges:
3-Month T-Bill Yield .09% unch.
Yield Curve 269.0 +1 bp
China Import Iron Ore Spot $165.50/Metric Tonne +.67%
Citi US Economic Surprise Index +57.8 -3.2 points
10-Year TIPS Spread 2.39% unch.
Overseas Futures:
Nikkei Futures: Indicating +41 open in Japan
DAX Futures: Indicating +26 open in Germany
Portfolio:
Higher: On gains in my Biotech, Tech, Retail and Medical longs
Disclosed Trades: Covered all of my (IWM)/(QQQ) hedges and then added them back
Market Exposure: 75% Net Long
BOTTOM LINE: Today's overall market action is bullish as the S&P 500 reverses morning losses and trades at session highs, despite rising energy prices, US housing worries, growing Mideast unrest, Japan concerns and rising eurozone debt angst. On the positive side, Restaurant, Networking, Disk Drive, Semi and Coal shares are especially strong, rising 1.5%+. Cyclicals are outperforming. Copper is jumping +2.94% and the UBS-Bloomberg Spot Ag Index is dropping -1.26%. On the negative side, Road & Rail, REIT, Insurance, Bank and Oil Tanker shares are under some pressure, falling more than .5%. (IYR)/(XLF) have underperformed throughout the day. The Transports also aren't participating in today's rally. Oil is rising +.64% and lumber is falling -.57%. The avg. US price for a gallon of gas is unch. today at $3.55/gallon. It is up .43/gallon in 36 days. The Portugal sovereign cds is climbing +2.63% to 531.55 bps, the Greece sovereign cds is surging +3.3% to 993.43 bps and the Ireland sovereign cds is gaining +5.11% to 616.17 bps. The Citi Eurozone Economic Surprise Index is falling again to -12.80 today and is now at the lowest since March 23rd of last year. The Japan sovereign cds is gaining +4.12% to 103.0 bps, the Saudi sovereign cds is rising +3.56% to 128.16 bps and the Israeli sovereign cdss is rising +3.9% to 153.61 bps. The market's resilience in the face of numerous mounting headwinds remains very impressive. However, volume, leadership and breadth are poor given the extent of the recent rally. The S&P 500 is still right near its 50-day moving average. If the benchmark can break convincingly above this level I will feel more comfortable with additional market exposure. I expect US stocks to trade mixed-to-higher into the close from current levels on short-covering, economic optimism and bargain-hunting.
NATO Struggles to Define Libya Role as U.S. Prepares Strike. NATO members failed to agree on an expanded role in Libya, as squabbles prevented the U.S. from handing off command of the campaign against leader Muammar Qaddafi. The 28-member bloc has yet to find the formula to balance military needs and political sensitivities in the five-day-old operation. France is resisting overall NATO command to encourage more involvement by Arab countries. “It paints a pretty bad picture of the political dynamics,” Bastian Giegerich, a consulting fellow at the London-based International Institute for Strategic Studies, said in an interview. “Normally the U.S. is the first among equals in NATO, but with the Americans stepping back it makes it more difficult to create consensus.”
Crude Oil Advances in N.Y. as Allies Prepare Additional Libya Airstrikes. Crude climbed to a two-week high as the U.S. and its allies prepared to attack Libyan leader Muammar Qaddafi’s troops and protesters clashed with government forces in Syria, bolstering concern that supply will be disrupted. Oil rose as much as 1.3 percent after U.S. Admiral Samuel Locklear said more strikes will be launched in the “coming hours and days.” Prices advanced 15 percent this year as unrest spread from Tunisia to Egypt, Yemen, Bahrain and Syria. A U.S. government report showed that crude supplies climbed last week as gasoline stockpiles fell to the lowest level this year. Mercantile Exchange. Futures touched $106.34, the highest intraday price for a front-month contract since March 7. Crude oil for May delivery rose 82 cents, or 0.8 percent, to $105.79 a barrel at 12:20 p.m. on the New York Brent crude oil for May settlement increased 21 cents to $115.91 a barrel on the London-based ICE Futures Europe exchange.
U.S. New Home Sales Unexpectedly Fall to Lowest on Record. Purchases of new U.S. homes unexpectedly declined in February to the slowest pace on record and prices dropped to the lowest level since December 2003, adding to evidence the industry is floundering. Sales decreased 16.9 percent to a 250,000 annual pace, figures from the Commerce Department showed today in Washington. Economists surveyed by Bloomberg News projected a gain to a 290,000 rate, according to the median estimate. The median price fell 8.9 percent from the same month in 2010. Sales slumped 57 percent in the Northeast, 28 percent in the Midwest and 15 percent in the West. The South showed a 6.3 percent decrease. The median sales price dropped to $202,100 in February from $221,900 a year earlier, today’s report showed. Last month’s median price was the lowest since $196,000 in December 2003. The share of homes sold for $500,000 or more fell in February, matching January 2009 as the lowest on record. The supply of homes at the current sales rate rose to 8.9 month’s worth from 7.4 months in January. There were 186,000 new houses on the market at the end of February, the same as a month earlier.
Irish Notes, Portuguese Bonds Drop as Debt Crisis Deepens Ahead of Summit. Irish two-year notes slumped, leading the bonds of the region’s most-indebted nations lower, on concern a permanent solution to the fiscal crisis will elude European Union leaders meeting at a summit starting tomorrow. The declines drove the yield on the Irish security to more than 10 percent for the second consecutive day, while the extra yield investors demand to hold the nation’s 10-year bonds instead of German bunds climbed to a record. Portuguese bonds slid as Prime Minister Jose Socrates faces a vote today against his deficit-cutting plan that may spur early elections and the need for an EU bailout. “It’s death by a thousand cuts,” said Charles Diebel, head of market strategy at Lloyds Bank Corporate Markets in London. “We’re waiting for Portugal. There isn’t actually a solution to the problem. Yields remain at unsustainable levels, technically forcing insolvency.” The yield on the two-year Irish note surged 57 basis points to 10.44 percent as of 2:38 p.m. in London, after rising to 10.70 percent. The yield has climbed from 9.09 percent at the end of last week. The 10-year yield advanced 23 basis points to 10.06 percent, widening the spread over bunds by 27 basis points to 685 basis points. It earlier increased to 694 basis points. The Portuguese 10-year yield climbed 11 basis points to 7.61 percent, with the similar-maturity Greek yield up six basis points to 12.57 percent. The Portuguese five-year note yield rose to as much as 8.19 percent, the highest since before the euro was introduced in 1999.
Euro Declines on Debt-Fund Plan Delay, Portugal. The euro slumped against most of its major counterparts as Portugal began debating a budget that may lead the government to fall and European leaders pushed back a decision on funding a regional bailout mechanism. The 17-nation currency fell for a second day against the dollar before a Portuguese vote that may force the nation to an early election and bailout and reports the expansion of the European Union European Financial Stability Facility will not be decided until June.
Tokyo Warns About Water, Japan Bids to Calm Radiation Fears. Tokyo authorities said city tap water may be unsafe for infants while Japan’s government sought to assure people that radiation levels detected in the food chain following a nuclear accident don’t pose a health threat. Radioactive iodine levels taken yesterday at a treatment facility in Katsushika ward were double the recommended limit for babies, a city official said in a televised briefing today. The water would pose a health risk if drunk over the long term, such as a year, he said. Tokyo’s population is estimated to be about 13 million people. Disclosures of rising contamination, coupled with assurances that risks are minimal, underscore the government’s struggle to contain the ripple effects of a magnitude-9 earthquake and tsunami on March 11 that crippled a nuclear facility north of Tokyo.
Fed's Fisher Sees 'Extraordinary Speculative Activity'. Federal Reserve Bank of Dallas President Richard W. Fisher said he sees “extraordinary speculative activity” in the U.S. after the central bank pumped record amounts of stimulus into the economy. “There is an enormous amount of liquidity sloshing around,” the regional bank chief, who votes on monetary policy this year, said in a speech today in Berlin. “There is abundant liquidity in the machine we know as the United States economy.”
Nissan's Ghosn Says 40 Japan Auto Suppliers Still in Difficulty. Nissan Motor Co. Chief Executive Officer Carlos Ghosn said about 40 component suppliers in Japanremain in difficulty after the nation’s record earthquake, complicating automakers’ efforts to restart car production. Electronic components, plastics and rubber are in short supply and will affect Japanese automakers and rivals outside the country, Ghosn, 57, said in a telephone interview. Carmakers are jointly offering stricken component-makers support via Japan’s automobile manufacturers association, he said. “This is serious and it’s still difficult to evaluate,” Ghosn said late yesterday. “You have the earthquake, you have the tsunami, rolling blackouts, and fuel shortages hitting at the same time, and they aren’t only hitting the car manufacturers, but also the suppliers and the dealers.”
Apple(AAPL) Is Said to Consider Expanding AirPlay for Streaming Video. Apple Inc. (AAPL) is weighing an expansion of its AirPlay audio service to include streaming video from an iPhone or iPad to television sets, according to two people familiar with the project. Under the plan, Apple would license its AirPlay software to consumer-electronics makers that could use it in devices for streaming movies, TV shows and other video content, said the people, who asked to remain anonymous because the plans haven’t been made public.
Explosion at Jerusalem Bus Station Kills 1, Hurts 30; Palestinians Blamed. A bomb blast near a bus stop outside Jerusalem’s central station killed one person and injured at least 30. Public Security Minister Yitzhak Aharonovitch said Palestinians were behind the explosion, and that it was caused by a bomb placed in a bag. Interior Minister Eli Yishai linked the blast to the rising number of rocket and mortar attacks on southern Israel from the Gaza Strip and warned that “if the trend continues then, no doubt, we will have to take action.”
Wall Street Journal:
Allies Strike Forces Around Besieged Libyan Cities. Allied forces bombed Libyan government targets involved in the siege of the cities of Misrata and Ajdabiya as NATO warships started patrolling off Libya's coast to enforce the United Nations arms embargo, amid a debate over who would lead the campaign. As the coalition campaign moved into its fifth day, several residents of Misrata, Libya's third-largest city and an important commercial hub, recounted a grim humanitarian situation and atrocities still being committed by Col. Moammar Gadhafi's troops.
IMF Plan Sees Role for Fund in Crises.The International Monetary Fund is working on a proposal to become a more significant lender of dollars, euros and other hard currencies during times of crisis, essentially sharing the role of global lender of last resort with the U.S. Federal Reserve. Under the plan, which has been encouraged by the U.S. and other members of the Group of 20 nations, the IMF would provide short-term foreign-exchange swaps to central banks in developing nations as a way to handle financial shocks that leave those nations short of hard currencies.
Apple's(AAPL) Area 51: The Truth Is Out There. Scheduled to go live sometime this spring, Apple’s 505,000-square-foot North Carolina data center is, according to COO Tim Cook, intended to support iTunes and MobileMe. But we don’t yet know in what capacity, and Cook’s remark, which is at once unambiguous and utterly cryptic, leaves plenty of room for speculation. And theories about the potential capabilities of this new facility abound.
CNBC.com:
Stock Market Is Only Halfway Through Bull Run: Birinyi. The stock market is only about halfway through a bull run that will catapult the Standard & Poor's 500 another 60 percent over the next two to three years, well-known stock analyst Laszlo Birinyi told CNBC.
Syrian Police Just Opened Fire On "Hundreds of Youths". At least 15 people have been killed, according to liberation.fr. Details are scarce out of Syria, as there is limited media coverage of affairs within the country.
Elevated Radioactive Iodine Found in Tokyo Tap Water. Japanese officials said tap water tests in Tokyo found more than twice the limit for radioactive iodine considered safe for infants. Although the level is not an immediate health risk for adults, officials said babies should not be given tap water. Radioactive iodine can cause thyroid cancer, but officials said there was no reason to worry if infants already consumed small amounts. Authorities are not certain, but they suspect that airborne iodine from the Fukushima Daiichi plant drifted over rivers that feed into Tokyo's water system and then came down in rainfall this week.
The U.K.'s MI5 intelligence service warned counterparts in NATO countries of the risk of terrorist attacks following military action in Libya. In a March 18 memo sent to agencies in other NATO countries, MI5 cited wiretaps of Libyans living in the U.K. which included discussions of "actions of support" for leader Muammar Qaddafi. Libyans in one call were quoted as saying, "we should act where we are."
Yomiuri:
Seven nations including Germany and Switzerland moved embassy operations out of Tokyo because of concerns about the Fukushima Dai-Ichi nuclear plant and rolling blackouts.
Japan's Nuclear Safety Commission said nuclear fuel at the No. 1 reactor of Tokyo Electric Power's Fukushima Dai-Ichi nuclear plant may have melted considerably. An official of the regulator said the temperature and pressure inside the reactor is reaching a dangerous point, and authorities are considering releasing steam.
Xinhua:
Carrefour SA will increase wages for its Shanghai workers by 8% under a new agreement reached through collective bargaining, citing labor-union officials.
China Business News:
China may face an "arduous" task in controlling consumer prices at 4% this year, citing Zhang Yansheng, a researcher with the National Development and Reform Commission. Imported inflation pressures are rising, he said.
