STEADY ON THE FRONT TODAY MAYBE

CNN NEWS VIDEO
http://edition.cnn.com/video/

YAHOO NEWS VIDEO
http://news.yahoo.com/video

MIDEAST CONFLICT NEWS
http://news.yahoo.com/video/1874;_ylt=A0wNcxFdg6xIgbkAwD6z174F

ABC NEWS VIDEO
http://news.yahoo.com/video/2461

FOX NEWS VIDEO
http://news.yahoo.com/video/3074

FOX BUSINESS VIDEO
http://news.yahoo.com/video/3045

AP NEWS VIDEO
http://news.yahoo.com/video/2529

BBC NEWS VIDEO
http://news.yahoo.com/video/2918

REUTERS VIDEO NEWS
http://news.yahoo.com/video/2704

AFP NEWS VIDEO
http://news.yahoo.com/video/3091

CNBC NEWS VIDEO
http://news.yahoo.com/video/3245

EARTH DESTROYED WITH THE EARTH

GENESIS 6:11-13
11 The earth also was corrupt before God, and the earth was filled with violence.(WORLD TERRORISM,MURDERS)
12 And God looked upon the earth, and, behold, it was corrupt; for all flesh had corrupted his way upon the earth.
13 And God said unto Noah, The end of all flesh is come before me; for the earth is filled with violence (TERRORISM) through them; and, behold, I will destroy them with the earth.

EARTHQUAKES

MATTHEW 24:7-8
7 For nation shall rise against nation, and kingdom against kingdom: and there shall be famines, and pestilences, and earthquakes, in divers places.
8 All these are the beginning of sorrows.

MARK 13:8
8 For nation shall rise against nation, and kingdom against kingdom:(ETHNIC GROUP AGAINST ETHNIC GROUP) and there shall be earthquakes in divers places, and there shall be famines and troubles: these are the beginnings of sorrows.

LUKE 21:11
11 And great earthquakes shall be in divers places, and famines, and pestilences; and fearful sights and great signs shall there be from heaven.

Death toll rise from Tibet earthquake
www.chinaview.cn 2008-10-07 14:26:55

LHASA, Oct. 7 (Xinhua) -- Ten people are confirmed dead and 34 injured after a 6.6-magnitude earthquake jolted parts of Tibet Autonomous Region in southwest China, the regional government said Tuesday. The latest death was from a high school in Shannan Prefecture, the region's vice chairman Gong Puguang said at a press conference. Gong said the school in Nagarze County was evacuating its students during the quake when a stampede occurred. One teenager was killed and 15 others injured. The earthquake hit Damxung, an outer county of the regional capital Lhasa, 4:30 p.m. Monday. Nine deaths and 19 injuries were reported in the epicenter, mainly women, children and the elderly. Most men were out mowing and storing forage grass for the winter.

Tibet's regional government decided Monday night to close all schools in Lhasa Tuesday due to safety concerns.

Chinese president sends message of condolences over Kyrgyzstan earthquake
www.chinaview.cn 2008-10-07 16:29:07

BEIJING, Oct. 7 (Xinhua) -- Chinese President Hu Jintao on Tuesday sent a message of condolences to his Kyrgyz counterpart Kurmanbek Bakiyev over the deadly earthquake which killed nearly 70 people. On behalf of the Chinese government, the Chinese people and himself, Hu expressed sincere condolences and deep mourning over the deaths in the disaster to the Kyrgyz president and the relatives of the bereaved. The 6.3-magnitude quake occurred in southern Kyrgyzstan on Sunday, killing nearly 70 people and injuring 50 others, according to reports of the country's Emergency Situations Ministry.Editor: Jiang Yuxia

STORMS HURRICANES-TORNADOES

LUKE 21:25-26
25 And there shall be signs in the sun, and in the moon, and in the stars; and upon the earth distress of nations, with perplexity;(MASS CONFUSION) the sea and the waves roaring;(FIERCE WINDS)
26 Men’s hearts failing them for fear, and for looking after those things which are coming on the earth: for the powers of heaven shall be shaken.

Tropical Storm Marco Makes Landfall Kevin Roth OCT 7,08

Tropical Storm Marco made landfall around 10am CDT Tuesday 80 miles to the south-southeast of Tuxpan, Mexico. Marco is a very tiny storm with tropical storm force winds only extending 15 miles out from the center. Maximum sustained winds are 65 mph and it is moving to the west at about 8 miles per hour (as of 10 a.m. CDT). Satellite view of Marco. Tropical storm warning are in effect along the Mexican coast from Cabo Rojo to Veracruz. The hurricane watches have been discontinued for the same area. Now that Marco has made landfall it will quickly die out in the Mexican Mountains. Hurricane Norbert.Hurricane Norbert continues to strengthen with top winds estimated to be near 80 mph and was located about 555 miles south-southeast of Cabo San Lucas, Mexico as of 8 a.m. PDT. It is moving to the west-northwest near 8 miles per hour, and this general motion is expected to continue over the next couple of days. Norbert could move toward Baja California later in the week or over the weekend, so interests there should monitor the progress of the system. Check out Norbert's projected path.

Tropical storm Marco hits Mexico OCT 7,08

MIAMI (AFP) - Tropical storm Marco made landfall in Mexico Tuesday, crashing ashore as the latest in a series of powerful storms to strike the region this hurricane season, US forecasters said. Marco quickly traversed the Gulf of Mexico before barreling ashore about 55 miles (90 kilometers) north-northwest of Veracruz, the Miami-based National Hurricane Center (NHC) said.The storm has maximum sustained winds of some 65 miles (100 kilometers) per hour and is traveling in a west-northwest direction at about eight miles (13 kilometers) per hour as it moves towards Mexico's interior, where NHC forecasters said it was likely to dissipate Wednesday.Marco is the latest in a succession of storms to batter the Gulf of Mexico during the busy 2008 hurricane season, including devastating Hurricanes Gustav and Ike, which caused millions of dollars in damage in Haiti, Cuba and the United States.

Tropical storm Julio in late August killed one person north Mexico and damaged roads and homes as it swept through the northwestern state of Baja California.In July, Hurricane Dolly also caused one fatality in Mexico after dumping rain over Texas and Mexico after pummeling the Gulf coast.

METEORS HIT THE EARTH

REVELATION 6:12-17
12 And I beheld when he had opened the sixth seal, and, lo, there was a great earthquake; and the sun became black as sackcloth of hair, and the moon became as blood;
13 And the stars of heaven fell unto the earth, even as a fig tree casteth her untimely figs, when she is shaken of a mighty wind.
14 And the heaven departed as a scroll when it is rolled together; and every mountain and island were moved out of their places.
15 And the kings of the earth, and the great men, and the rich men, and the chief captains, and the mighty men, and every bondman, and every free man, hid themselves in the dens and in the rocks of the mountains;
16 And said to the mountains and rocks, Fall on us, and hide us from the face of him that sitteth on the throne, and from the wrath of the Lamb:
17 For the great day of his wrath is come; and who shall be able to stand?

REVELATION 8:12-13
12 And the fourth angel sounded, and the third part of the sun was smitten, and the third part of the moon, and the third part of the stars; so as the third part of them was darkened, and the day shone not for a third part of it, and the night likewise.
13 And I beheld, and heard an angel flying through the midst of heaven, saying with a loud voice, Woe, woe, woe, to the inhabiters of the earth by reason of the other voices of the trumpet of the three angels,which are yet to sound!

ANGEL 4 TO DOCTOR DOCTORIAN So many earthquakes shall happen that rivers shall flow different directions in the continent, flooding many villages. I saw great pieces falling from the sky over different parts of Africa.

Small asteroid headed for light show over Africa By SETH BORENSTEIN, AP Science Writer Mon Oct 6, 6:21 PM ET

WASHINGTON - A small asteroid was headed for a fiery but harmless dive into Earth's atmosphere early Tuesday morning over Africa, astronomers said in a first of its kind advance warning. Harvard scientists announced late Monday afternoon that the asteroid 2008 TC3 would burn up in the sky, making a fireball potentially visible to people in northern Africa. Measuring between 3 feet and 15 feet in diameter, the rock was expected to enter Earth's atmosphere above Sudan at 10:46 p.m. EDT Monday, just before dawn in Africa.Harvard astronomer Tim Spahr said the asteroid was so small it wouldn't reach the ground before burning up and wouldn't hurt anyone, but the fireball should be seen heading from west to east.It's the first time we've been able to predict an impactor in advance and it'll be quite a celestial show for the world, said Donald Yeomans, manager of NASA's Near Earth Object program, which tracks asteroids and comets that come close.There are 5,681 such objects, but only 757 of them are large enough to cause any damage if they hit Earth.This object, spotted by an Arizona telescope late Sunday and calculated on Monday to be heading toward Earth, isn't one of them. Astronomers don't know precisely how big it is or what it is made of, but they know that it is small enough that it will burn up harmlessly. As it enters the atmosphere becoming a meteor, it compresses the air in front of it, which then gets hotter, causing a fireworks display.Rocks this size hit Earth's atmosphere about two or three times a year, but without warning, Yeomans said.

Astronomers were only able to give the world about six hours notice because the rock is so dark and small. It was spotted a little farther away from Earth than the moon, said Spahr, director of the International Astronomical Union's Minor Planet Center. Astronomers hope by scanning the sky they can eventually give Earth warning for more worrisome rocks that come this way.If this were something larger and it was going to hit the ground we would be able to get people out of the way, Spahr said. But with something this size, they can tell people to look up for a sight that could be pretty cool from the ground, he said.On the Net NASA's Near Earth Object Program: http://neo.jpl.nasa.gov/

PESTILENCES (CHEMICAL AND BIOLOGICAL WEAPONS)

LUKE 21:11
11 And great earthquakes shall be in divers places, and famines, and pestilences;(CHEMICAL,BIOLOGICAL WEAPONS) and fearful sights and great signs shall there be from heaven.

OZONE DEPLETION

ISAIAH 30:26-27
26 Moreover the light of the moon shall be as the light of the sun, and the light of the sun shall be sevenfold, as the light of seven days, in the day that the LORD bindeth up the breach of his people, and healeth the stroke of their wound.
27 Behold, the name of the LORD cometh from far, burning with his anger, and the burden thereof is heavy: his lips are full of indignation, and his tongue as a devouring fire:

MATTHEW 24:21-22,29
21 For then shall be great tribulation, such as was not since the beginning of the world to this time, no, nor ever shall be.
22 And except those days should be shortened, there should no flesh be saved: but for the elect’s sake those days shall be shortened (Daylight hours shortened)
29 Immediately after the tribulation of those days shall the sun be darkened, and the moon shall not give her light, and the stars shall fall from heaven, and the powers of the heavens shall be shaken:

REVELATION 16:7-9
7 And I heard another out of the altar say, Even so, Lord God Almighty, true and righteous are thy judgments.
8 And the fourth angel poured out his vial upon the sun; and power was given unto him to scorch men with fire.
9 And men were scorched with great heat, and blasphemed the name of God, which hath power over these plagues: and they repented not to give him glory.

POISONED WATERS

REVELATION 8:8-11
8 And the second angel sounded, and as it were a great mountain burning with fire was cast into the sea: and the third part of the sea became blood;
9 And the third part of the creatures which were in the sea, and had life, died; and the third part of the ships were destroyed.
10 And the third angel sounded, and there fell a great star from heaven, burning as it were a lamp, and it fell upon the third part of the rivers, and upon the fountains of waters;
11 And the name of the star is called Wormwood:(bitter,Poisoned) and the third part of the waters became wormwood; and many men died of the waters, because they were made bitter.(poisoned)

REVELATION 16:3-7
3 And the second angel poured out his vial upon the sea; and it became as the blood of a dead man: and every living soul died in the sea.(enviromentalists won't like this result)
4 And the third angel poured out his vial upon the rivers and fountains of waters; and they became blood.
5 And I heard the angel of the waters say, Thou art righteous, O Lord, which art, and wast, and shalt be, because thou hast judged thus.
6 For they(False World Church and Dictator) have shed the blood of saints and prophets, and thou hast given them blood to drink; for they are worthy.

Scientists: 1 in 4 mammals faces extinction By RANDOLPH E. SCHMID, AP Science Writer Mon Oct 6, 8:52 AM ET

WASHINGTON - Conservationists have taken the first detailed look at the world's mammals in more than a decade, and the news isn't good. Our results paint a bleak picture of the global status of mammals worldwide, the team led by Jan Schipper of the International Union for the Conservation of Nature in Gland, Switzerland, concluded.We estimate that one in four species is threatened with extinction and that the population of one in two is declining, the researchers said in a report to be published Friday in the journal Science. The findings were being released Monday at the IUCN meeting in Barcelona, Spain.I think the bottom line is, what kind of a world do you want to leave for your children, Andrew Smith, a professor in the Arizona State University School of Life Sciences, said in a telephone interview.

How impoverished we would be if we lost 25 percent of the world's mammals, said Smith, one of more than 100 co-authors of the report.Within our lifetime hundreds of species could be lost as a result of our own actions, a frightening sign of what is happening to the ecosystems where they live, added Julia Marton-Lefevre, IUCN director general. We must now set clear targets for the future to reverse this trend to ensure that our enduring legacy is not to wipe out many of our closest relatives.

The IUCN describes itself as the world's oldest and largest global environmental network. It is made up of more than 1,000 government and nongovernment organizations and almost 11,000 volunteer scientists in more than 160 countries. The research for the report took five years and involved more than 1,700 scientists around the world.

The report updates the IUCN's Red List of Threatened Species, which overall includes 44,838 species, of which 16,928 are threatened with extinction. Of these, 3,246 are in the highest category of threat, critically endangered, 4,770 are endangered and 8,912 are vulnerable to extinction. The IUCN estimated that 76 mammal species have gone extinct since 1500.While the new report estimated that one-in-four mammals is threatened with extinction, the actual numbers listed were 1,141 out of 5,487 species. That comes out to 20.8 percent, closer to one in five.However, the researchers noted that there were several hundred species about which they don't have enough data to classify. They believe that the lack of information about those animals indicates that they exist in such small numbers that many could be endangered, raising the total to 25 percent or higher, Smith explained.Among the mammals particularly in danger are primates, used for bush meat in parts of Africa and facing major loss of habitat in Southeast Asia, Smith noted.The report also notes unusually high threats to tapirs, hippos, bears, pigs and hogs, while among the less threatened are moles, opossums and free-tailed bats.In general, larger mammals were found to be more threatened than smaller ones. Larger species tend to have lower population densities, grow more slowly and have larger home ranges.

For land species, habitat loss is a major threat across the tropics, including deforestation in the Americas, Africa and Asia. Hunting is having devastating effects in Asia, but African and South American species are also affected.For marine mammals the major threat is accidental death, especially fisheries by-catch and vessel strike.Climate change is also affecting sea ice dependent species such as polar bears and harp seals.Even though most of the world has been explored, new mammal species continue to be discovered. This year's species total of 5,487 is up 19percent since 1992.Many newly discovered species are among those that are not well documented, living in regions in need of future research such as tropical forests in West Africa and Borneo. Marine mammals are not as well studied as land mammals and are more difficult to survey. While it raises concerns, the new analysis isn't all bad news. It found about five percent of currently threatened mammals showing signs of recovery. The black-footed ferret moved from extinct in the wild to endangered after a successful reintroduction by the U.S. Fish and Wildlife Service in eight western states from 1991-2008. Also, wild horses moved from extinct in the wild in 1996 to critically endangered this year after successful reintroductions started in Mongolia in the early 1990s. In addition to raising concern about mammals, new additions to the IUCN Red List include:

• Indian tarantulas, sought by collectors and threatened by the international pet trade.

• The Rameshwaram parachute spider has been listed as critically endangered due to habitat loss.

• The squaretail coral grouper from the coral reefs of the Indo-Pacific has been listed as vulnerable because it has become a luxury food.

• In Costa Rica, Holdridge's toad moved from critically endangered to extinct, as it has not been seen since 1986 despite intensive surveys.

• La Palma giant lizard, found on the Canary Island of La Palma and thought to have become extinct in the last 500 years, was rediscovered last year and is now listed as critically endangered. IUCN also said it is issuing a Sampled Red List Index, developed in collaboration with the Zoological Society of London. The index takes a random sample of species from a taxonomic group to calculate the trends in extinction risk within that group. It can be used to calculate trends much like an exit poll from a voting station. Associated Press writer Daniel Woolls in Madrid, Spain, contributed to this report. On the Net: Science: http://www.sciencemag.org
IUCN: http://www.iucn.org

POSSIBLE ROBOT OR CLONE

DANIEL 12:4
4 But thou, O Daniel, shut up the words, and seal the book, even to the time of the end: many shall run to and fro, and knowledge shall be increased.

REVELATION 13:13-15
13 And he doeth great wonders, so that he maketh fire come down from heaven on the earth in the sight of men,
14 And deceiveth them that dwell on the earth by the means of those miracles which he had power to do in the sight of the beast; saying to them that dwell on the earth, that they should make an image to the beast, which had the wound by a sword, and did live.
15 And he had power to give life unto the image of the beast, that the image of the beast should both speak, and cause that as many as would not worship the image of the beast should be killed.

REVELATION 14:9-11
9 And the third angel followed them, saying with a loud voice, If any man worship the beast and his image, and receive his mark in his forehead, or in his hand,
10 The same shall drink of the wine of the wrath of God, which is poured out without mixture into the cup of his indignation; and he shall be tormented with fire and brimstone in the presence of the holy angels, and in the presence of the Lamb:
11 And the smoke of their torment ascendeth up for ever and ever: and they have no rest day nor night, who worship the beast and his image, and whosoever receiveth the mark of his name.

Robot suit for rent in Japan to help people walk (AP)
Posted on Tue Oct 7, 2008 9:37AM EDT

TSUKUBA, Japan - A robotic suit that reads brain signals and helps people with mobility problems will be available to rent in Japan for $2,200 a month starting Friday — an invention that may have far-reaching benefits for the disabled and elderly.

HAL — short for hybrid assistive limb — is a computerized suit with sensors that read brain signals directing limb movement through the skin.The 22-pound battery-operated computer system is belted to the waist. It captures the brain signals and relays them to mechanical leg braces strapped to the thighs and knees, which then provide robotic assistance to people as they walk.Cyberdyne, a new company in Tsukuba outside Tokyo, will mass-produce HAL. Two people demonstrated the suits at the company's headquarters on Tuesday.A demonstration video also showed a partially paralyzed person getting up from a chair and walking slowly wearing the HAL suit.

We are ready to present this to the world, said Yoshiyuki Sankai, a University of Tsukuba professor who designed HAL.Sankai, who has worked on robot suits since 1992 and is also Cyberdyne's chief executive, said a full device that covers the entire body is also being designed, though it is unclear when it will be available commercially.HAL comes in three sizes — small, medium and large — and also has a one-leg version for a 150,000 yen, or $1,500, monthly rental fee.Noel Sharkey is a robotics expert not affiliated with the technology. The professor at the University of Sheffield in the U.K. said HAL will have wide-ranging benefits for the elderly others with movement disabilities.HAL can only lead to extending the abilities of the elderly and keep them out of care for longer, Sharkey said in an e-mail to The Associated Press.Cyberdyne said its policy is not to reveal how much it costs to manufacture the device. It is unclear when HAL will go on sale to the public or what the price tag will be.Robotics technology is common in manufacturing sectors, but product liability concerns restrict its widespread use in everyday life. Sankai said the HAL technology is devoted to social welfare purposes only, adding he has refused requests from military officials to share it.Some European nations have already expressed interest and HAL may soon be on the market there, but U.S. sales are still undecided, Sankai said.The University of California, Berkeley, and other researchers around the world are working on similar robotic suits that increase mobility.

HOARDING OF GOLD AND SILVER

DOCTOR DOCTORIAN FROM ANGEL OF GOD
then the angel said, Financial crisis will come to Asia. I will shake the world.

JAMES 5:1-3
1 Go to now, ye rich men, weep and howl for your miseries that shall come upon you.
2 Your riches are corrupted, and your garments are motheaten.
3 Your gold and silver is cankered; and the rust of them shall be a witness against you, and shall eat your flesh as it were fire. Ye have heaped treasure together for the last days.

REVELATION 18:10,17,19
10 Standing afar off for the fear of her torment, saying, Alas, alas that great city Babylon, that mighty city! for in one hour is thy judgment come.
17 For in one hour so great riches is come to nought. And every shipmaster, and all the company in ships, and sailors, and as many as trade by sea, stood afar off,
19 And they cast dust on their heads, and cried, weeping and wailing, saying, Alas, alas that great city, wherein were made rich all that had ships in the sea by reason of her costliness! for in one hour is she made desolate.

EZEKIEL 7:19
19 They shall cast their silver in the streets, and their gold shall be removed: their silver and their gold shall not be able to deliver them in the day of the wrath of the LORD: they shall not satisfy their souls, neither fill their bowels: because it is the stumblingblock of their iniquity.

REVELATION 13:16-18
16 And he(FALSE POPE) causeth all, both small and great, rich and poor, free and bond, to receive a mark in their right hand, or in their foreheads:(CHIP IMPLANT)
17 And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name.
18 Here is wisdom. Let him that hath understanding count the number of the beast: for it is the number of a man; and his number is Six hundred threescore and six.(6-6-6) A NUMBER SYSTEM

WORLD MARKET RESULTS
http://money.cnn.com/data/world_markets/

PSALMS 39:6
6 Surely every man walketh in a vain shew: surely they are disquieted in vain: he heapeth up riches, and knoweth not who shall gather them.

HALF HOUR DOW RESULTS TUE OCT 07,2008

09:30 AM +58.56
10:00 AM +15.37
10:30 AM +58.78
11:00 AM +15.05
11:30 AM -39.51
12:00 PM -40.38
12:30 PM -130.62
01:00 PM -138.19
01:30 PM -244.28
02:00 PM -327.27
02:30 PM -205.97
03:00 PM -306.64
03:30 PM -342.49
04:00 PM -508.39 9447.11

S&P 500 996.23 -60.66

NAS 1754.88 -108.08

GOLD 890.0 +23.08

OIL 89.14 +1.93

TSE 300 -420.39 9,810.04

CDNX -38.73 1,095.37

S&P/TSX 60 -25.89 589.79

GERMANY AND UK DOIN THINGS ON THEIR OWN FOR NOW.
Dow was 100 points up at its high.
Dow was -365 at its low today.
Dow, S&P 500, Nasdaq touch fresh 5 year lows.
Short selling ban ends at 12AM tomorrow.
Ford and Gm shares sink to multi-decade lows as investor confidence sinks.
Ford and Gm down 6-10% over the last 2 days.
Stocks down for the 5th straight day.
Report Wells Fargo gets 80% and west and Southwest of Wachovia Deposits and Citi gets 20% and Northeast of Wachovis Deposits.
Morgan Stanley: Mitsubishi deal on track to close by this weekend.
Morgan Stanley would be reducedto less then 20-1
reports the EU will have a Capital Injection bailout plan of $80 BILLION for banks.

THE FUTURES WENT WILD OVER NIGHT WITH A 20 POINT RALLY AS THE ANNOUNCEMENT CAME ON THAT NEW FED FICILITY CAME TO BUY COMERCIAL PAPER. FUTURES WENT FROM 10.50 TO 10.70. BACK TO 10.50, BACK UP TO 10.70, BACK DOWN TO 10.50, AND FINALLY BACK UP TO 10.70 AS THEY ANNOUNCE THAT SPECIAL PURPOSE VEHICLE, ALL IN THE SPACE OF 9 HOURS.

IMF JOHN LIPSKY SAYS THIS CRISIS WENT FROM AMERICA TO THE WHOLE WORLD ECONOMIES. THE ECONOMIES ARE IN OR CLOSE TO A MILD RECESSION. EFFECTIVE RECOVERY SHOULD BE IN THE SECOND HALF OF NEXT YEAR. THE FED RESERVE BASICALLY SAID IT WOULD BUY COMERCIAL PAPER? LIPSKY'S ANSWER ITS ANOTHER SIGN THE GOVERNMENT WILL NOT LET THE ECONOMY BE DISFUNCTIONAL. DO THE CENTRAL BANKS HAVE TO COORDINATE RATE CUTS TO SEND A MESSAGE TO MARKETS? LIPSKY IF THE QUESTION IS DOES EVERYBODY DO THE SAME THING AT THE SAME TIME THE ANSWER IS NO. EVER BODY FACES DIFFERENT SITUATIONS. BUT THEY HAVE TO WORK IN THE SAME DIRECTION. WHERE IS THE IMF IN THIS SITUATION? LIPSKYS ANSWER: WE HAVE BEEN SUPPORTING OUR 185 MEMBER COUNTRYS AROUND THE WORLD. THIS SITUATION HAS A DIFFERENCE FROM THE ASIAN CRISIS 10 YEARS AGO, THAT INVOLVED VERY SUDDEN EMERGENCE OF LARGE SCALE BALANCE OF PAYMENT DEFICETS IN A CRISIS MODE IN EMERGING MARKET ECONOMIES. THIS HAS STARTED IN THE ADVANCE ECONOMIES, AFFECTED THE ADVANCED ECONOMIES MORE AND HAS NOT INVOLVED LARGE BALANCE OF PAYMENTS NEEDS OF THOSE ECONOMIES, THEY'RE STILL ABLE TO FUND THEMSELVES.

THE G-7 MEETINGS ARE ON FRIDAY AND THE IMF MEETINGS ARE OVER THE WEEKEND. WHAT WILL YOU DO? LIPSKY SAYS ALL THE 185 LEADING FINANCE MINISTERS AND CENTRAL BANK HEAD MEMBERS WILL BE GATHERING HERE TO TALK ABOUT THE CRISIS FOR THE FIRST TIME SINCE THE CRISIS BEGAN TO TAKE ON A NEW AND MORE DIFFICULT CHARACTER. I THINK THERE WILL BE SERIOUS DISCUSSION ON THE SITUATION OF A BREAK THROUGH COMUNICA. BUT I THINK THE FOCUS AND THE LEVEL OF ATTENTION AN THE POSSIBILTY FOR NEW INITIVES ARE THERE.

HES OF A MIND,(LIPSKY) THAT MAYBE YOU DON'T NEED A COORINATED EFFORT, BECAUSE EACH COUNTRY HAS ITS OWN INTERESTS TO KEEP AN EYE ON, BUT THEY ARE BOUND BY IN EUROPE BY THAT UNIFIED CURRENCY. GERMANY THINKS THEY CAN WORK ON AN AD HAWK BASES AND STILL REMAIN WITHIN USING THE EURO CURRENCY AS WELL.

Stocks tumble as Street worries about financials By TIM PARADIS, AP Business Writer OCT 7,08 4:PM

NEW YORK - Wall Street sank further Tuesday, extending its heavy losses as enthusiasm over Federal Reserve efforts to inject confidence into credit markets gave way to concerns about financial companies' balance sheets. Trading remained fractious, with the Dow Jones industrial average losing nearly 400 points and all the major indexes falling well over 3 percent. Federal Reserve Chairman Ben Bernanke warned in a speech Tuesday that the financial crisis could prolong the difficulty the economy is facing. Some traders appeared to regard his remarks as a sign that an interest rate cut could be in the offing, but that did not stanch the losses that built on Monday's huge drop.Investors appeared initially heartened but still very cautious following the Fed's announcement that it plans to buy massive amounts of corporate debt to jump-start lending in the markets where many companies turn for short-term loans. The evaporation of faith that loans will be repaid has lenders weary and is making it more difficult and expensive for businesses and consumers to borrow.Credit markets showed some signs of easing as demand for safe-haven investments decreased. Credit markets seized up last month after Lehman Brothers Holdings Inc. declared bankruptcy and the government stepped in to rescue insurer American International Group Inc.The Fed's latest move is designed to lubricate the lurching credit markets whose troubles have spread to other parts of the economy. Still, the measure stops short of a broad interest rate reduction that some investors say is necessary to restore confidence in the market. Other market watchers argue, however, that more focused steps like Fed's decision to buy commercial paper are what's needed.But some investors remain worried about financial companies like Bank of America Corp., which after the closing bell Monday slashed its dividend and reported that its third-quarter profit fell 68 percent. The stock fell $7.17, or 22 percent, to $25.05 and was the steepest decliner among the 30 stocks that comprise the Dow industrials.

And a rumor that Mitsubishi UFJ Financial Group Inc. was pulling out of a deal to acquire up to 24.9 percent of the voting shares of Morgan Stanley sent the investment bank's stock tumbling $5.40, or about 23 percent, to $18.10.Investors are fearful that financial companies will continue to face cash shortages even with efforts in Washington and by other governments to resuscitate lending.I think we have weeks of volatility ahead of us, said Kim Caughey, equity research analyst at Fort Pitt Capital Group.She said the write-downs of bad debt at Bank of America are a reminder to investors that troubles within the financial sector remain.The concerns weighed on stocks after Monday's rout. In the final half hour of trading, the Dow fell 351.41, or 3.53 percent, to 9,604.09, after dropping just over 400 points. The drop came a day after the blue chips fell below 10,000 for the first time in four years. The Dow skidded as much as 800 points on Monday before finishing with a loss of 370.Broader indexes also fell. The Standard & Poor's 500 index declined 42.23, or 4.00 percent, to 1,014.66, while the Nasdaq composite index fell 74.26, or 3.99 percent, to 1,788.70.The dollar was mixed against other major currencies, while gold prices fell.Oil prices rebounded after plunging Monday to an eight-month low on concerns a global recession will undermine demand for crude. Light, sweet crude rose $2.25 to settle at $90.06 a barrel on the New York Mercantile Exchange.Concerns about the credit markets still fed demand for the relative safety of government debt, though pressures eased. The yield on the three-month Treasury bill, which moves opposite its price, rebounded to 0.80 percent from 0.50 percent late Monday. Demand for short-term Treasurys remains high because of their safety; investors are willing to take extremely low returns just to have their money in a secure place.

Some investors moved into longer-term Treasury bonds, which while still safe don't draw as much demand as shorter-term debt in times of fear. The yield on the 10-year note fell to 3.49 percent from 3.50 percent late Monday.Investors are still hoping to see other moves from the Fed to boost confidence. Australia's central bank lowered interest rates by the largest amount since 1992 in a surprise move, and that reignited hopes that others, including the Fed and European Central Bank, might follow suit.Though not giving the market a rate cut, the Fed has taken other steps to help unclog the credit markets. On Tuesday, policymakers provided more details about when it will make $900 billion in short-term loans available to squeezed banks. The loans are made available to banks through auctions. The Fed, in coordination with other countries' central banks engaged in similar efforts, laid out dates that it will conduct the auctions through the rest of this year. The Treasury stepping into the commercial paper market is good news, said Peter Cardillo, chief market economist for Avalon Partners. "The Fed is doing everything they can to have confidence return to the markets, and maybe an interest rate cut is next. The central bank is doing what it should be doing as a lender of last resort.

Minutes from the Fed's last meeting described a U.S. economy that was slowing considerably and credit markets that were deteriorating rapidly. The meeting was held Sept. 16, the day after the failure of Lehman Brothers. The central bank's Open Market Committee found the risks from weaker growth and higher inflation were roughly equal; that was its rationale for leaving rates unchanged. Policymakers, who will meet again at the end of the month, left key interest rate unchanged at 2 percent. Wall Street is looking for Alcoa Inc. to unofficially kick off earnings season when it releases results after the closing bell. Alcoa fell 44 cents, or 2.4 percent, to $17.67. Declining issues outnumbered advancers by about 5 to 1 on the New York Stock Exchange, where volume came to 966.8 million shares. The Russell 2000 index of smaller companies fell 26.54, or 4.45 percent, to 569.37. Overseas, Japan's Nikkei stock average fell 3.03 percent. Britain's FTSE 100 rose 0.35 percent, Germany's DAX index fell 1.12 percent, and France's CAC-40 rose 0.55 percent.
On the Net: New York Stock Exchange: http://www.nyse.com Nasdaq Stock Market: http://www.nasdaq.com

EU finance ministers agree to coordinate responses to financial crisis
www.chinaview.cn 2008-10-07 23:25:43

LUXEMBOURG, Oct. 7 (Xinhua) -- European Union (EU) finance ministers agreed on Tuesday to coordinate their responses to the escalating global financial crisis.

Europe is united in the face of the financial crisis and determined to act in a coordinated way, French Finance Minister Christine Lagarde told reporters after chairing a monthly meeting with her EU counterparts. We agreed to assure the solidity and stability of our financial system and carry out any measures to reach that objective, Lagarde said. The ministers said they would support systemic financial institutions, one day after their eurozone members vowed to prevent any bank of systemic importance from falling apart. We are all committed to taking all necessary measures to enhance the soundness and stability of our banking system and to protect the deposits of individual savers, they said in a joint statement after the meeting. As the first coordinated effort, EU finance ministers agreed on Tuesday to significantly increase the minimum deposit guarantee which the member states must offer savers in a bid to restore financial stability. The EU law requires member states to guarantee savers' deposits of at least 20,000 euros (27,000 U.S. dollars) in case of a bank failure. Now the minimum amount was raised to at least 50,000 euros (67,500 U.S. dollars). Many member states even decided to raise the minimum amount to 100,000 euros (135,000 U.S. dollars).

In the aftermath of the financial crisis, EU countries rush to increase their minimum guarantee for bank deposits in a bid to calm savers' concerns about their money in troubled banks. Ireland, followed by Germany and Denmark, even provided full guarantee for all private bank deposits in hopes of boosting confidence, but their unilateral moves angered others, which feared an outflow of deposits in their own banks. EU finance ministers agreed that public intervention has to be decided at national level, but in a coordinated framework. We agree to coordinate closely in our actions and to take into consideration potential cross-border effects of national decisions, they said. Editor: Yan

Fed to buy massive amounts of short-term debt By JEANNINE AVERSA, AP Economics Writer OCT 7,08

WASHINGTON - The Federal Reserve announced Tuesday a radical plan to buy massive amounts of short-term debt in a dramatic effort to break through a credit clog that is imperiling the economy. Invoking Depression-era emergency powers, the Fed will buy commercial paper, a short-term financing mechanism that many companies rely on to finance their day-to-day operations, such as purchasing supplies or making payrolls.In more normal times, about $100 billion of these short-term IOUs were outstanding at any given time, sold by companies to buyers that included money market mutual funds, pension funds and other investors. But this market has virtually dried up as investors have become too jittery to buy paper for longer than overnight or a couple days.That has made it increasingly difficult and expensive for companies to raise money to fund their operations. Commercial paper is a way of borrowing money for short periods, typically ranging from overnight to less than a week.The unstable situation has left many companies vulnerable. The notion under the plan is for the government to provide a backstop that would give companies a new place to get cash, the Fed said. The action makes the Fed a crucial source of credit for nonfinancial businesses in addition to commercial banks and investment firms.

The Fed's action initially helped lift investors' spirits, although concerns about the economy dampened their enthusiasm. The Dow Jones industrials — which gained about 145 points just after the open — fell nearly 40 points in late morning trading. Monday, a huge selloff put the Dow below 10,000 for the first time in four years.Concerns about the credit markets pushed investors into longer-term Treasury bonds, considered a secure place to park money in times of turmoil. The rush to safety drove yields lower, though.European stocks posted modest gains on hopes that central banks around the globe would coordinate on rate cuts. Share prices in Britain and in Germany, Europe's largest economy, rose. Iceland, however, is facing the prospect of bankruptcy, according to the Prime Minister Geir H. Haarde, after its banks went on a buying spree across Europe, accumulating massive debts in the process.The Fed said it is creating a new entity to buy three-month unsecured and asset-backed commercial paper directly from eligible companies. It hopes to have the program up and running soon, Fed officials said.Fed officials said they'll buy as much of the debt as necessary to get the market functioning again. They refused to say how much that might be, but they noted that around $1.3 trillion worth of commercial paper would qualify.The commercial paper market has been under considerable strain in recent weeks as money market mutual funds and other investors" have become increasingly reluctant to buy commercial paper, especially longer-dated maturities. As the market for commercial paper shrank, the Fed said rates on the longer-term debt increased significantly, making it more expensive for companies to borrow.

The Treasury Department, which worked with the Fed on the program, said the action is necessary to prevent substantial disruptions to the financial markets and the economy.The Treasury will provide money to the Federal Reserve Bank of New York to support the new program, the Fed said. Fed officials would not say how much but believed it would be substantial. The money would not come from the $700 billion financial bailout President Bush signed into law on Friday.If a company's commercial paper is not backed by assets or other forms of security acceptable to the Fed, the company could pay an upfront fee, the central bank said. The amount of such a fee has not yet been determined.The Fed said it hoped its effort would jolt the commercial paper market back to life.This facility should encourage investors to once again engage in term lending in the commercial paper market, the Fed said. That should eventually spur financial companies to lend to each other and to their customers, including consumers, the Fed said.The Fed said it planned to stop buying commercial paper on April 30, 2009, unless the Federal Reserve board agrees to extend the program. The Fed created a separate entity to pool and hold the commercial paper it buys. The Fed said this should allow the central bank to more easily manage the program and better control risk.There was $1.61 trillion in outstanding commercial paper, seasonally adjusted, on the market as of last Wednesday, according to the most recent data from the Fed. That was down from $1.70 trillion in the previous week. Since the summer of 2007, the market has shrunk from more than $2.2 trillion. Pressure also is growing on the Fed to reverse course and order a deep reduction in its key interest rate, now at 2 percent. Such a move would be aimed at reviving the moribund economy by encouraging consumers and businesses to boost their spending. Many predict the Fed will act on or before its next meeting on Oct. 28-29. And, some believe it could be part of a broader coordinated move with central banks in other countries. Fed Chairman Ben Bernanke may offer clues on the Fed's next move when he speaks Tuesday afternoon on the economic outlook and developments in financial markets.

President Bush also was set to talk about the government's bailout effort, which lets the government buy rotten mortgages and other bad debts from banks and other financial institutions. By getting these bad debts off bank's balance sheets, they might be in a better position to raise capital and more willing to lend to each other and to customers. As the number of failed banks has gone up sharply this year, Sheila Bair, head of the Federal Deposit Insurance Corp., wants to boost fees to financial institutions to replenish the insurance fund that backs the nation's deposits. The increase would double the average paid by U.S. banks and thrifts next year. The Fed pledged Monday to take additional measures as necessary to battle the worst credit crisis in decades. Treasury Secretary Henry Paulson has tapped a former Goldman Sachs executive to be director of the government's bailout program. Neel Kashkari, who has worked with Paulson at the department since July 2006, was chosen Monday as the interim head of the government's unprecedented effort to unclog the credit markets. Kashkari, who was a vice president in Goldman's San Francisco office before joining the department, is one of four former executives from the firm now working feverishly to resolve the financial crisis. The lending lockup is a key reason why the U.S. economy is faltering. Unable to borrow money freely or forced to pay a high cost to borrow, employers are cutting jobs and reducing capital investments. Consumers have retrenched.

Oil rises above $90 after steep slide By Alex Lawler and Jane Merriman
OCT 7,08

LONDON (Reuters) - Oil rose more than $2 a barrel on Tuesday after a big interest rate cut in Australia raised hopes that other countries would follow suit to bolster economic growth, a move that would support oil demand. The market spiked briefly after a report that a U.S. warplane violated Iran's territory and was forced to land in Iran. An Iranian state television station later said the plane was Hungarian, with no U.S. military officials aboard.The U.S. said it was unaware of any U.S. warplanes being forced to land in Iran.U.S. crude was up $2.64 at $90.45 a barrel at 10:31 a.m. EDT. It had settled down $6.07 at $87.81 on Monday after hitting an eight-month low of $87.56.London Brent rose $2.10 to $85.78 a barrel.Oil's fall on Monday was part of an international market rout, triggered by the credit crisis.

Oil traders were skeptical the rally would last.

It's a bit of a recovery, but hardly anything to speak of after very steep falls, said Christopher Bellew, a broker at Bache Commodities.It would be foolish to think the dawn has come in terms of oil prices going back up again.Oil has plummeted from a record high of $147.27 a barrel, hit in July, as high fuel prices and the growing financial crisis slow oil demand in top consumer the United States and other industrialized nations.

OPEC

Oil's drop has caused worry for some members of the Organization of the Petroleum Exporting Countries.If this volatility continues, OPEC will have to do something, Shokri Ghanem, chairman of Libya's National Oil Corporation, told Reuters by telephone.We may sit down together before December, he said. OPEC's next meeting is in December in Algeria.The spread of the credit crisis has intensified gloom about the global economic outlook and weakening prospects for oil demand.The U.S. Energy Information Administration revised down its forecast for world oil demand growth in 2009 versus 2008.The agency cut its forecast by 140,000 barrels per day from its previous estimate published last month.Analysts are watching oil demand from China -- which helped drive oil's rally from $20 in early 2002 -- for signs the crisis is hitting consumption in the world's second-largest consumer. News that Mexico's state-owned oil company Pemex was evacuating four offshore oil platforms due to tropical storm Marco could become supportive for prices. Marco is expected to approach hurricane strength before reaching Mexico's Central Gulf Coast later on Tuesday.
(Additional reporting by Annika Breidthardt in Singapore; editing by Anthony Barker)

EU endorses bank deposit guarantees
RENATA GOLDIROVA Today oct 7,08 @ 09:24 CET

EUOBSERVER / BRUSSELS - The 27 EU leaders have vowed to take all measures necessary to ensure the stability of the ailing financial system. According to a statement issued by EU French presidency on Monday evening (6 October), EU governments will not hesitate - if needed - to inject liquidity from central banks, to adopt measures targeted at certain banks or to enhance deposit guarantees. No depositor in the banks of our countries has suffered losses and we will continue to take the necessary measures to protect the system and depositors, reads the political declaration on behalf of all European leaders. In addition, they once again pledged close co-ordination and co-operation as they deal with the domestic effects of the ongoing crisis. However, thus far, the words of solidarity have yet to be translated into deeds. The Irish government was the first to take concrete steps towards blanket guarantees last week. Since then, Greece, Germany, Austria, Denmark, Sweden and the UK have all acted unilaterally in also promising full or significantly higher deposit guarantees.

EU solution

My preference would be by far an EU solution, EU competition commission Neelie Kroes told the European Parliament on Monday (6 October). That would be the best way to co-ordinate national actions and maximize their effectiveness, and at the same time, secure that negative spill-overs into other financial institutions and member states are limited.According to Ms Kroes, it is the very large scope of the Irish guarantee and its discriminatory potential that have raised concerns - the scheme covers not only existing deposits and credit, but also all future credit to all six Irish banks. I'm confident with some fine tuning, the Irish guarantee scheme could be put in line with EU law, the commissioner concluded. In general, the EU's fair competition watchdog took a softer stance towards other full bank deposit guarantees. The current financial crisis poses a systemic threat to EU banking sector ... and in this systematic context, general guarantees, protecting retail deposits and bank debts held by retail clients can be a legitimate component of the public policy response, she said.

Future clarity

The commission announced it would provide EU governments with clarity and legal certainty on the matter over the next few days. According to Zsolt Darvas from the Brussels-based centrist think-tank Bruegel, the full guarantee should be only temporary solution. There is a fear that households will go to banks, take out their money and the bank will face not only liquidity, but also solvency problems, Mr Darvas said, adding that guaranteeing deposits could be a good solution because it could comfort bank clients. But in a long run, the authorities should develop regulations that would prevent such situations as we are facing now from happening again, the analyst concluded. The issue - including amounts of guarantee and an impact on other EU states - will be debated on Tuesday (7 October) by all 27 EU finance ministers, EU economic and monetary affairs commissioner Joaquin Almunia said.

Wounded Iceland takes over top bank, seeks Russia loan By Omar Valdimarsson
OCT 7,08

REYKJAVIK (Reuters) - Iceland took over its second largest bank, propped up a battered currency and sought on Tuesday a 4 billion euro ($5.44 billion) loan from Russia to help tackle a crisis threatening to overwhelm the island nation. Russian Finance Minister Alexei Kudrin said Moscow viewed positively the request from Iceland, whose premier said it had faced a risk of national bankruptcy.The result will be announced after negotiations, Kudrin said.Prime Minister Geir Haarde said Icelandic officials would travel to Moscow on Tuesday or Wednesday to discuss terms for the loan to bolster the country's foreign reserves.With this, like everything else, nothing is certain until it's certain, Haarde told a news conference.He said Iceland would not default on its sovereign debt.Home to just 300,000 people, Iceland used emergency powers rushed through on Monday to dismiss the board of directors of Landsbanki (LAIS.IC) and put the bank in receivership.That tipped the country's crown currency into a 35 percent nosedive although it later recovered some ground.So volatile was the currency that Iceland's central bank was forced to introduce a currency peg at a value of 131 per euro. It was last trading around 150.An International Monetary Fund spokesman said an IMF staff team was in Iceland and Norway said it was ready to discuss help but had heard nothing from Reykjavik.

Iceland's commerce and banking minister Bjorgvin Sigurdsson said Landsbanki would be open and run as normal while changes were taking place. Iceland's Financial Supervisory Authority (IFSA) had replaced the bank's board with its own people.

Domestic deposits are fully guaranteed, as declared by the government. Landsbanki's domestic branches, call centers, cash machines and internet operations will be open for business as usual, the IFSA said in a statement.Ratings agency Standard & Poor's sharply revised its banking industry country risk assessment, saying: The recent developments likely mark the end of the Icelandic banking model as it had developed over recent years. The forthcoming unwinding of the banking sector is likely to have significant repercussions on the economy and on the banks themselves.

RUSSIA LOOMS LARGE

The central bank said a Russian loan would substantially strengthen Iceland's foreign reserves and support the crown, which Haarde predicted would should strengthen significantly when more normal trading conditions resumed.Four billion euros would be more or less what Iceland needs to cover the whole banking system assets with their reserves, said Elisabeth Gruie, currency strategist at BNP Paribas.
It's also a surprising move for Russia that reflects its desire to reaffirm itself as a world power.Political analysts pondered Moscow's strategy in the light of its increasingly robust dealings with the west. I think there will be a lot of eyebrows raised in NATO if Iceland does accept this loan. I think the Icelandic government will need to ask themselves and the Russians a lot of questions before they accept, said Carlo Gallo, senior Russia analyst at Control Risks.

EMERGENCY BILL RUSHED THROUGH

Iceland adopted sweeping powers over banks late on Monday as its financial system tottered and its currency plunged. The ruling alliance and opposition parties united to pass a bill that gave the state the ability to dictate banking operations, including provisions that allow it to push through mergers or even force a bank to declare bankruptcy. We were faced with the real possibility that the national economy would be sucked into the global banking swell and end in national bankruptcy, Haarde told the nation late on Monday. Iceland's biggest bank, Kaupthing (KAUP.IC), said on Sunday it was in healthy shape but only last week the number three bank, Glitnir (GLB.IC), had to be rescued. Landsbanki said it would restructure and rise again. The bank has not been put into liquidation but is in receivership which gives it a temporary protection from payment of debts and obligations, it said in a statement. Investment firm Exista kicked off what is expected to be a string of asset sales, saying it had sold its near 20 percent stake in Finnish insurer Sampo to cut liabilities. Iceland has found itself perched on a faultline in the global financial turmoil. The North Atlantic island has punched far above its weight in financial terms as its banks expanded overseas, investors took large positions in its high-yielding currency and foreign firms poured money into local projects. (Writing by Mike Peacock; editing by Ralph Boulton) ($1=.7358 Euro)

Euro Falls to 14-Month Low as Credit Crisis Spreads to Europe
By Kim-Mai Cutler and Stanley White

Oct. 6 (Bloomberg) -- The euro had its biggest one-day drop against the yen since its debut in 1999 as the deepening credit crisis prompted European governments to pledge bailouts for troubled banks while stopping short of coordinated action. The 15-nation currency declined to a 14-month low against the dollar and the weakest in 2 1/2 years versus the yen after leaders meeting at the weekend avoided announcing any plan that would mirror the U.S.'s $700 billion bailout. Germany joined with banks and insurers to prevent the collapse of property lender Hypo Real Estate Holding AG and Belgium announced a revised deal to salvage Fortis. The yen jumped 5 percent versus the Australian dollar as investors cut holdings of higher- yielding assets funded in Japan, known as carry trades. It appears that European governments are failing to grasp the real problem and are taking reactive measures instead of dealing with the underlying situation, said Ian Stannard, a London-based currency strategist for BNP Paribas SA. The market is disappointed with the results out of weekend meetings and that's going to put the euro under increasing pressure. The euro fell to 139.80 yen, the weakest since March 2006, before trading at 140.47 as of 7:36 a.m. in New York, from 145.11 on Oct. 3. The euro declined to $1.3605, from $1.3772. It earlier reached $1.3543, the lowest since Aug. 23, 2007. The dollar bought 103.31 yen, from 105.32, after earlier sliding below 103 for the first time in four months. The euro may fall to $1.3360 and below 137 against the yen this week, Stannard said. Against the pound, the euro fell to 77.02 pence, the lowest since March 14. It also declined to 1.5379 Swiss francs, the weakest in more than six months.

European Bailouts

The German government and the country's banks and insurers agreed on a 50 billion-euro ($68 billion) rescue for Hypo Real Estate after an earlier bailout faltered. BNP Paribas SA, France's biggest bank, agreed to take over Fortis's units in Belgium after a government rescue failed. It could be difficult for the European Union to take coordinated relief actions, Toru Umemoto, chief currency analyst in Tokyo at Barclays Capital, Britain's third-biggest lender, said in a Bloomberg Television interview. This is a risk and the currency market is focusing on this risk.HSBC Holdings Plc cut its forecast for European growth next year to 0.4 percent from a previous prediction of a 0.9 percent, economists led by Janet Henry wrote in a note to clients dated Oct. 3. UBS AG cut its outlook for expansion in Asia excluding Japan next year to 6.1 percent from 6.9 percent. The yen rose to 76.56 per Australian dollar, the highest since Sept. 17, 2004. It advanced to 66.85 versus the New Zealand dollar from 69.68 and to 50.5162 against the Brazilian real from 51.5240.

Unbeatable Yen

Japan's currency was the best performer in September and the only currency to appreciate against the dollar as a credit- market collapse drove Lehman Brothers Holdings Inc. into bankruptcy and sent borrowing costs in Europe to record highs.

Deutsche Bank AG, the biggest trader of foreign exchange, says the yen will rise 5 percent in coming months. New York- based Morgan Stanley is telling clients to buy the currency versus the euro and the pound. After seven years of providing the cheapest source of funds for investors buying higher-yielding New Zealand dollars, Australian dollars and Brazil reais, the yen is appreciating as $587 billion of subprime mortgage-related losses force banks to restrict credit. It strengthened 4.4 percent on a trade-weighted basis in September, according to the Bank of Japan's effective exchange rate, the most since August 2007.

Easing Cycle

We are in a multi year trend reversal, said Paresh Upadhyaya, a senior vice president at Putnam Investment LLC in Boston, who helps manage $50 billion in currency assets. We are going to see a global central bank easing cycle. The yen is the place to be in this environment of economic slowdown and heightened volatility.
Futures traders increased their bets that the yen will gain against the U.S. dollar, figures from the Washington-based Commodity Futures Trading Commission show. The difference in the number of wagers by hedge funds and other large speculators on an advance in the yen compared with those on a drop, so-called net longs, was 43,022 on Sept. 30, compared with net longs of 31,939 a week earlier. The dollar fell for a fourth day against the yen on speculation reports will show a deepening slump in the U.S. economy. Pending home sales fell 1.1 percent in August after a 3.2 percent decline in the previous month, according to a Bloomberg News survey. The National Association of Realtors will release the data on Oct. 8. The U.S. Congress approved a financial-market bailout on Oct. 3, authorizing the government to spend as much as $700 billion buying troubled assets from financial institutions reeling from record home foreclosures.

Recession, Banking Crisis

Goldman Sachs Group Inc. said the U.S. economy will enter a recession significantly deeper than previously forecast, prompting the Federal Reserve to cut interest rates by at least 1 percentage point. Gross domestic product will decline in each of the next two quarters, with unemployment reaching 8 percent by the end of 2009, Goldman said in a research note. It's unwise to buy a currency which is both in recession and having a banking crisis, said Peter Pontikis, a treasury strategist at Suncorp-Metway Ltd. in Brisbane. The dollar will weaken to $1.45 per euro over the next month, he said. Technical analysis shows the euro may fall to $1.3380 this week, said Kengo Suzuki, currency strategist at Shinko Securities Co. in Tokyo. The European currency is likely to extend last week's 5.8 percent loss as its daily moving average convergence/divergence chart is showing a sell signal, according to Suzuki. Support at $1.3380 is near the euro's 200-week moving average, he said. Support is a level where buy orders may be clustered. There's really not much to suggest the euro can stage a meaningful recovery right now,'' Suzuki said. It's been caught in a wave of panic selling and the charts show it can go lower still.To contact the reporters on this story: Kim-Mai Cutler in London at kcutler@bloomberg.net; Stanley White in Tokyo at swhite28@bloomberg.net

EMERGING MARKETS REPORT Russian stocks plunge 20% amid relentless selling
RTS stock index has fallen 62% this year, making it world's worst performer
By Polya Lesova, MarketWatch

4:07 p.m. EDT Oct. 6, 2008 NEW YORK (MarketWatch) -- The relentless wave of selling that has battered Russian equities in recent weeks accelerated Monday, sending local markets down nearly 20% on the day and forcing the two main stock exchanges to suspend trading once again. In Moscow, the dollar-denominated RTS stock index plunged 19.1% to end at 866.39 points. The index is down 62% year to date, making it the world's worst performer among major emerging markets. The global financial crisis, coupled with tumbling oil prices and heightened domestic political risk, have brought the Russian stock markets to their knees, with daily double-digit stock drops and trading suspensions becoming the norm in recent weeks. The Russian marketplace is suffering from continued liquidations, margin calls and redemptions as well as global market fears.— James Fenkner, Red Star Asset Management

At Moscow's other exchange, the ruble-denominated Micex index tumbled 18.7% Monday to finish at 752 points. You can buy assets extremely cheap [in Russia], said Reiner Triltsch, head of international equities at Federated Investors. It's for someone who has very little risk aversion, he said. It's too early and it's definitely too risky for my taste.Russian equities led a broad-based sell-off in emerging-market assets Monday, as the global financial crisis led to a sharp spike in risk aversion.

Russia in under severe strain, said Paul Biszko, senior emerging markets analyst at RBC Capital Markets. It's called deleveraging, right? Redemptions are very high, and that just means weaker asset prices.The steep slide in shares forced the Micex stock exchange to suspend trading three times on Monday for a total of four hours, a Micex spokesman told MarketWatch. The exchange will open for trading at the usual time on Tuesday, he said. The RTS stock exchange said in a statement that it suspended trading twice on Monday because of the sell-off. The Russian marketplace is suffering from continued liquidations, margin calls and redemptions as well as global market fears, said James Fenkner, principal and portfolio manager of Red Star Asset Management, a hedge fund that invests primarily in Russian assets. Longer term, global growth and robust oil and steel prices are needed to keep the Russian market from falling into a market abyss, Fenkner said in emailed comments.
Oil and gas stocks, as well as metals and mining shares, suffered the steepest losses Monday.

The RTS Oil and Gas index fell 22%, with shares of state-controlled Gazprom (UK:OGZD: news, chart, profile) and oil giant Lukoil (UK:LKOD: news, chart, profile) suffering double-digit declines. The RTS Metals and Mining index fell 15%, with shares of Russia's largest mining company Norilsk Nickel (UK:MNOD: news, chart, profile) going into free fall. In London trading, Norilsk tumbled 44%. The Russian equity market is dominated by resource stocks, particularly oil and gas companies, and as a result the recent tumble in commodity prices has hit Russia particularly hard. Crude futures closed at their lowest level in eight months Monday. Crude for November delivery closed at $87.81 per barrel on the New York Mercantile Exchange, down $6.07, or 6.5%. See Futures Movers.

DANIEL 7:23-24
23 Thus he said, The fourth beast(THE EU,REVIVED ROME) shall be the fourth kingdom upon earth,(7TH WORLD EMPIRE) which shall be diverse from all kingdoms, and shall devour the whole earth, and shall tread it down, and break it in pieces.(TRADE BLOCKS)
24 And the ten horns out of this kingdom are ten kings that shall arise:(10 NATIONS) and another shall rise after them;(#11 SPAIN) and he shall be diverse from the first, and he shall subdue three kings.(BE HEAD OF 3 KINGS OR NATIONS).

Abkhazians call for recognition in European Parliament
VALENTINA POP Today oct 7,08 @ 09:26 CET

Abkhazia would never accept a return to Georgia and still hopes for international recognition of its independence, as well as for the EU to include it in its neighbourhood policy, representatives of the breakaway province told MEPs during a hearing on Monday (6 October) organized by the Green Party.The host of the event, German Green MEP Cem Ozdemir, said that his group had suggested for a long time for such discussions to take place, in order to prevent the escalation of the conflict.

You can't select your neighbours: You have to live together, he said, stressing that it is important for all parties involved in the conflict to look ahead and not to remain captive in a blame game.With a small, green-striped Abkhaz flag set up in front of his laptop, Viacheslav Chirikba, a Western-schooled advisor to the president of Abkhazia, presented in harsh terms such as genocide and even holocaust the history of his nation, concluding that Georgia has lost every moral right to rule Abkhazia.Russia's recognition of the two breakaway provinces' independence on 26 August following the war in Georgia was a surgical cut-off that would increase the stability in the region, he said.Using the same arguments as the Kremlin, Mr Chirikba claimed that the EU, the US and the OSCE have an irrational attitude in not recognising Abkhaz independence, after they did so in regards to Kosovo, thus proving the double standards with international law. So far, only Russia and Nicaragua have recognized the two break-away republics.

He also insisted that Abkhazia, home to some 200,000 people, was not planning to join Russia - as the much smaller South Ossetia wants - since it was economically viable as an independent country based on agriculture and tourism.In a more conciliatory tone, Abkhaz vice-foreign minister Maxim Gunjia insisted that his country does not seek any more conflicts, after one day of war destroyed 15 years of confidence building efforts.Do you think it was our dream to have Russian military bases on our soil? he asked, adding that there was no other solution than to ask for Russia's help. A military agreement is being currently drafted in regards to the Russian presence in Abkhazia, with the aim to maintain a maximum 5,000 Russian troops on its territory, Mr Gunjia told EUobserver.

EU can't guarantee peace

What the conflict proved, in the Abkhazians' view, is that the EU cannot give any substantive guarantees to stop or prevent a conflict.People only rely on the weapons at home and the Russian military bases, Mr Gunjia told the roughly 30 people in the audience.He insisted that the only way out was for the EU to promote a maximum de-militarisation of the region, referring to the Georgian army, but not the Abkhazian paramilitary or Russian troops.Mr Gunjia also would like to see EU funds from the bloc's neighbourhood policy coming to his country, claiming that Abkhazia is committed to implementing EU standards, as it would otherwise be unable to trade with Europe over the Black Sea.Asked by a German MEP who would be an acceptable partner in Tbilisi, if President Mikheil Saakashvili was to leave office, Mr Gunjia didn't want to give names, but said that a party or political group rather than one single person would be preferable.

Sarkozy pushes Barroso to kill internet piracy decision
ELITSA VUCHEVA Today OCT 7,08 @ 18:07 CET

The European Commission has rejected a request from the French president that commission head Barroso work to overturn the European Parliament's decision banning the cutting of internet access to websurfers who illegally download copyrighted films or music.President Nicolas Sarkozy last week wrote to the EU executive asking Mr Barroso's personal commitment to rejecting an amendment buried within the parliament's vote on a telecoms bill approved by a large majority of lawmakers on 24 September.It is fundamental that the amendment adopted by the European Parliament be rejected by the commission, Mr Sarkozy wrote. (Photo: © European Community, 2008 )

The amendment expressly forbade maneouvres such as the cut-off of internet service as a way of addressing piracy - something currently being considered by the French government. The European bill following the vote includes language declaring: No restriction may be imposed on the fundamental rights and freedoms of end-users without a prior ruling by the judicial authorities.This would in effect make a draft law on internet use planned by the French government null and void, as the latter stipulates that users who use the web for illegal downloading would see their internet access cut after two warning letters.It is fundamental that amendment number 138 adopted by the European Parliament be rejected by the commission. This amendment tends to exclude the possibility for member states to implement an intelligent strategy of piracy dissuasion, Mr Sarkozy wrote in a letter to commission President Jose Manuel Barroso last Friday, French media report.In order to have this amendment rejected, I request your personal commitment, as well as that of the commissioner in charge of the dossier [Viviane Reding], reads the letter first published on Ecrans.fr, part of French daily Liberation's website.The commission subsequently said it takes note of Mr Sarkozy's letter, but rejected the French president's demand.The European Commission respects this democratic decision of the European Parliament. In [our] view, this amendment is an important restatement of key legal principles inherent in the legal order of the European Union, especially of citizens' fundamental rights, a spokesperso for the institution told journalists on Monday (6 October).Additionally, according to commission, The language of the amendment is deliberately drafted in order to leave member states scope for reaching a fair balance between several fundamental rights, namely the right for the respect to privacy, the right to property and effective remedies, and the right of freedom of information and expression.The commission can therefore accept the amendment proposed by the European Parliament.In September, 573 MEPs voted in favour of the amendment tabled by French Socialist MEP Guy Bono, while 74 voted against.Mr Bono welcomed the commission's response to Mr Sarkozy's demand, stating: it is only by resisting political pressure from the member states that the European construction will advance and that Europe will at last become closer to its citizens.

The bloc's telecoms ministers will meet to discuss the telecoms package, including the issue in question, on 27 November.For its part, the French law was scheduled to be voted upon earlier this year, but this was later postponed until 2009. It is already highly controversial in France and critics say that, among other things, it could harm users whose IP addresses have been hacked, or others using multiple-user accounts.But Mr Sarkozy – himself married to singer Carla Bruni – has invested much personal effort in such policies, whose main goal is seen to be the protection of the creative industries against illegal downloading.

MUSLIM NATIONS

EZEKIEL 38:1-12
1 And the word of the LORD came unto me, saying,
2 Son of man, set thy face against Gog,(RULER) the land of Magog,(RUSSIA) the chief prince of Meshech(MOSCOW)and Tubal,(TOBOLSK) and prophesy against him,
3 And say, Thus saith the Lord GOD; Behold, I am against thee, O Gog, the chief prince of Meshech(MOSCOW) and Tubal:
4 And I will turn thee back, and put hooks into thy jaws,(GOD FORCES THE RUSSIA-MUSLIMS TO MARCH) and I will bring thee forth, and all thine army, horses and horsemen, all of them clothed with all sorts of armour, even a great company with bucklers and shields, all of them handling swords:
5 Persia,(IRAN,IRAQ) Ethiopia, and Libya with them; all of them with shield and helmet:
6 Gomer,(GERMANY) and all his bands; the house of Togarmah (TURKEY)of the north quarters, and all his bands:(SUDAN,AFRICA) and many people with thee.
7 Be thou prepared, and prepare for thyself, thou, and all thy company that are assembled unto thee, and be thou a guard unto them.
8 After many days thou shalt be visited: in the latter years thou shalt come into the land that is brought back from the sword, and is gathered out of many people, against the mountains of Israel, which have been always waste: but it is brought forth out of the nations, and they shall dwell safely all of them.
9 Thou shalt ascend and come like a storm, thou shalt be like a cloud to cover the land, thou, and all thy bands, and many people with thee.(RUSSIA-EGYPT AND MUSLIMS)
10 Thus saith the Lord GOD; It shall also come to pass, that at the same time shall things come into thy mind, and thou shalt think an evil thought:
11 And thou shalt say, I will go up to the land of unwalled villages; I will go to them that are at rest, that dwell safely, all of them dwelling without walls, and having neither bars nor gates,
12 To take a spoil, and to take a prey; to turn thine hand upon the desolate places that are now inhabited, and upon the people that are gathered out of the nations, which have gotten cattle and goods, that dwell in the midst of the land.

ISAIAH 17:1
1 The burden of Damascus. Behold, Damascus is taken away from being a city, and it shall be a ruinous heap.

PSALMS 83:3-7
3 They (ARABS,MUSLIMS) have taken crafty counsel against thy people,(ISRAEL) and consulted against thy hidden ones.
4 They have said, Come, and let us cut them off from being a nation; that the name of Israel may be no more in remembrance.
5 For they have consulted together with one consent: they are confederate against thee:(TREATIES)
6 The tabernacles of Edom,and the Ishmaelites;(ARABS) of Moab, and the Hagarenes;
7 Gebal, and Ammon,(JORDAN) and Amalek;(SYRIA) the Philistines (PALESTINIANS) with the inhabitants of Tyre;(LEBANON)

EZEKIEL 39:1-8
1 Therefore, thou son of man, prophesy against Gog,(LEADER OF RUSSIA) and say, Thus saith the Lord GOD; Behold, I am against thee, O Gog, the chief prince of Meshech (MOSCOW) and Tubal: (TUBOLSK)
2 And I will turn thee back, and leave but the sixth part of thee, and will cause thee to come up from the north parts,(RUSSIA) and will bring thee upon the mountains of Israel:
3 And I will smite thy bow out of thy left hand, and will cause thine arrows to fall out of thy right hand.
4 Thou shalt fall upon the mountains of Israel, thou, and all thy bands,( ARABS) and the people that is with thee: I will give thee unto the ravenous birds of every sort, and to the beasts of the field to be devoured.
5 Thou shalt fall upon the open field: for I have spoken it, saith the Lord GOD.
6 And I will send a fire on Magog,(NUCLEAR BOMB) and among them that dwell carelessly in the isles: and they shall know that I am the LORD.
7 So will I make my holy name known in the midst of my people Israel; and I will not let them pollute my holy name any more: and the heathen shall know that I am the LORD, the Holy One in Israel.
8 Behold, it is come, and it is done, saith the Lord GOD; this is the day whereof I have spoken.

JOEL 2:3,20,30-31
3 A fire(NUCLEAR BOMB) devoureth before them;(RUSSIA-ARABS) and behind them a flame burneth: the land is as the garden of Eden before them, and behind them a desolate wilderness; yea, and nothing shall escape them.
20 But I will remove far off from you the northern army,(RUSSIA,MUSLIMS) and will drive him into a land barren and desolate, with his face toward the east sea, and his hinder part toward the utmost sea, and his stink shall come up, and his ill savour shall come up, because he hath done great things.(SIBERIAN DESERT)
30 And I will shew wonders in the heavens and in the earth, blood, and fire, and pillars of smoke.(NUCLEAR BOMB)
31 The sun shall be turned into darkness, and the moon into blood, before the great and the terrible day of the LORD come.

Russia: Arms sales to Venezuela are defensive Tue Oct 7, 7:09 AM ET

MOSCOW - Russia's foreign minister says the country's arms sales to Venezuela are meant for defensive purposes. Russia has stepped up ties with Venezuelan President Hugo Chavez and is sending a naval squadron to Venezuela for exercises next month in a show of force near the United States. Russia has sold Venezuela weapons worth more than $4 billion since 2005 and announced a $1 billion credit for arms purchases last month.Foreign Minister Sergey Lavrov spoke Tuesday after a meeting in Moscow with Venezuela's foreign minister.Lavrov also told a state-run newspaper that Russia and Venezuela have no plans to attack anybody, suggesting a joint attack on the United States was unimaginable.

Russia, Venezuela exercises not aimed against US Tue Oct 7, 1:28 AM ET

MOSCOW, (AFP) - Military exercises due to be held by Russian and Venezuelan navy are not aimed against the United States, Russian Foreign Minister Sergei Lavrov said in an interview published Tuesday. Russia and Venezuela have no plans of attacking anybody, they cooperate on the basis of international law, Lavrov told the state Rossiyskaya Gazeta daily, slamming hypothetical scenarios of unimaginable attacks on the United States.Among the US leadership and that of several other countries that chose absolute loyalty to Washington's way of thinking, the geopolitical ideology of doing everything possible to rein in Russia prevails, the minister deplored.A fleet of Russian warships, led by the nuclear-powered missile cruiser Pyotr Veliky, are due to take part in joint exercises next month with the Venezuelan navy near US waters, something which has not been done since the Cold War.The deployment follows the arrival of two Russian Tu-160 nuclear bombers in Venezuela last month also for exercises, an event that Chavez branded a warning to the US empire.

Israelis see delay in Iran-Russia missile deal By Dan Williams
Sun Oct 5, 1:13 PM ET

TEL AVIV (Reuters) - Iran has not received Russia's advanced S-300 anti-aircraft system yet though the countries are still discussing a purchase, Israeli defense sources said on Sunday, revising earlier statements that a deal was imminent. The S-300 would help Tehran fend off any Israeli or U.S. air strike against its nuclear facilities. Analysts believe a purchase of the system by the Iranians could accelerate the countdown to military action designed to deny them the bomb.Israeli defense sources said last July that Iran was set to take delivery of the S-300 by year's end, and possibly as soon as September -- assessments not supported by the United States, which has led a diplomatic drive to rein in Iran's atomic plans.

Iran's Defense Ministry, which already has Russian TOR-M1 anti-aircraft missiles, said in December the S-300 was on order. On Sept 1, Iran's Foreign Ministry said there was no such order.We know that, as of now, nothing has been shipped, an Israeli defense source said on Sunday. There seems to be some kind of hold-up. The Russians and Iranians are discussing this, but we have also been speaking to Russia about our concerns.Israeli Prime Minister Ehud Olmert flies to Moscow on Monday for talks in which he is expected to ask Russia to curb defense sales to Iran and Syria, another of the Jewish state's enemies.Russia has denied intending to sell Iran the S-300, the best version of which can track 100 targets and fire on planes 120 km (75 miles) away. The system is known in the West as the SA-20.A second Israeli source who has access to intelligence briefings said Iran appeared to be vacillating on whether to buy the newest version of the S-300 or a less advanced model.Delivery schedule will greatly depend on which version they eventually settle on. If the new one, then it's years away. The other version is readily available, the source said.

Neither source agreed to be identified given the sensitivity of the subject. Olmert told his cabinet that his Moscow visit would address both the supply of weapons to irresponsible elements, the actions of which greatly disturb us, and the Iranian problem, in which Russia has special weight.Israel, which is believed to have the Middle East's only atomic arsenal, describes Iran's nuclear programme as a potential threat to its existence.Iran says its nuclear work is a peaceful project to generate electricity, but has stirred war fears by predicting the Jewish state's destruction.

Like Israel, the United States has alluded to military force as an option against Iran. Yet the allies have often differed on when Iran's uranium enrichment plants might yield enough fissile material for warheads. Israel's timeline is routinely shorter.(Editing by Dominic Evans)

Russia's Jerusalem land claim worries Israelis By TIA GOLDENBERG, Associated Press Writer Tue Oct 7, 6:59 AM ET

JERUSALEM - The Russians are coming to downtown Jerusalem, reclaiming ownership of a landmark with the approval of the Israeli government, just as Prime Minister Ehud Olmert visits Moscow to try to iron out serious policy differences between the two countries. After years of contacts, Olmert's Cabinet agreed Sunday to hand over the small tract known as Sergei's Courtyard. The area, which once accommodated Russian pilgrims visiting the Holy Land, now houses offices of Israel's Agriculture Ministry and the Society for the Protection of Nature in Israel.The property includes a lush garden and the massive buildings around it — a turret-like structure at the intersection of two downtown streets and the sand-colored fortress-like wings leading from it.The timing of the gesture is clear. After years of relatively smooth relations, serious problems have cropped up between Israel and Russia. One concerned Russia's summer invasion of Georgia, which has become a close ally of Israel in recent years. More importantly, Israel is concerned about Russia's role in helping, or not stopping, the nuclear program of Israel's archenemy, Iran.Olmert hopes to talk through those issues during his two-day trip to Moscow. He was scheduled to meet Russian President Dmitry Medvedev on Tuesday before returning to Israel.

Not everyone is happy about Israel's Jerusalem goodwill gesture. Hardline groups bridle at any transfer of control in Jerusalem, because they oppose Israeli-Palestinian peace efforts that would require sharing the city.Israel TV described the transfer as Russian autonomy in downtown Jerusalem. The Cabinet decision says no major changes can be made at the site without approval of both governments.The official transfer may be delayed because of an appeal filed by the nationalistic Legal Forum for the Land of Israel, which said the deal is a breach of Israeli sovereignty.Nachi Eyal, the group's director, warned the deal could set a precedent for other land claims.A Russian official denied accusations it seeks greater influence in the Middle East through the acquisition of Sergei's Courtyard, calling its desire to own the place a matter of historical significance.This has nothing to do with what is being called imperial ambitions because it's not a military base or something that can serve those purposes, said Alexei Skosyrev, a political counselor at the Russian Embassy in Tel Aviv. He said the building will be used as a Russian cultural center to promote bilateral relations between the two countries.The site, named for Grand Duke Sergei Alexandrovich, a son of Czar Alexander II, was built in 1890 and is part of the larger Russian Compound, most of which Israel purchased 45 years ago. It paid in oranges because it lacked hard currency.Negotiations over the site began in the 1990s. In 2005, after years of lagging progress on the deal, then-Prime Minister Ariel Sharon promised former Russian President Vladimir Putin the land would be returned.

Hamas in Egypt to talk Palestinian reconciliation By ASHRAF SWEILAM, Associated Press Writer OCT 7,08

RAFAH, Egypt - A high-level Hamas delegation has crossed into Egypt for talks with the country's intelligence chief as part of Egyptian efforts to mend the rift between Palestinian factions. The delegation is led by Hamas' strongman Mahmoud Zahar and senior officials Siyad Siam and Khalil al-Haya.Hamas' deputy leader Moussa Abu Marzouk is also heading Tuesday to Egypt from Damascus to join the talks.Hamas has been in control of Gaza since its violent takeover of the coastal strip in June 2007. Fatah leader and Palestinian President Mahmoud Abbas has been left in charge of the West Bank.Egypt hopes bilateral meetings will lead to direct talks between Palestinian factions.