BROWN EU LEAD ECONOMIC HURRICANE

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.

ND univ cancels classes to help with sandbagging By DAVE KOLPACK, Associated Press Writer - Mon Mar 23, 1:37 pm ET

FARGO, N.D. – High school and college students were let out of class Monday to help with sandbagging as residents raced to hold off a threat of flooding from the rising Red River.City officials planned to fill more than 1 million sandbags, but with more rain forecast they increased the need to nearly 2 million sandbags — about 500,000 each day by the end of the week.We're confident that we can get the bags delivered, said Bruce Grubb, Fargo's enterprise director. Getting them made is a more daunting challenge.North Dakota State University canceled classes Monday and Fargo high schools also excused students to help.The students are eager to help. We're ready to go,Fargo school spokesman Dan Huffman said.Across the river outside Moorhead, Minn., Dilworth-Glyndon-Felton High School junior Luke Gable said he was given the option of studying or sandbagging, and decided school could wait.Everyone needs help right now, Gable We've got fresh legs and fresh arms.North of Moorhead in Oakport Township, where residents had to be evacuated by boat during the 1997 flood, homeowner Barb Groth helped volunteers fill sandbags near her house Monday.We're consider the dry side of the township, but we flooded anyway in 1997. This flood is supposed to be worse,Groth said.We're nervous.Fargo city administrator Pat Zavoral estimated the city of some 90,000 residents was about 40 percent protected as of Monday.

Flood stage at Fargo is 18 feet, and the National Weather Service said the Red River had reached 25.3 feet Monday morning. The weather service said the river is expected to crest in Fargo early Friday at around 40 feet — a record.Officials said the dike protecting downtown Fargo was being raised to about 43 feet and an emergency levee south of the city was being completed.Minnesota and North Dakota both were sending National Guard troops to help.Fargo is borrowing some expertise from Louisiana. The National Guard and the city plan to bring in seven miles of 4-feet high interlocking plastic containers that can be filled with sand to form temporary dikes, a system that was used during Hurricane Katrina.It's collapsible and easy to move, Zavoral said.Flooding had already forced people from their homes in small ranching and farming communities in south-central North Dakota.North Dakota National Guard members used boats Monday morning to ferry about five rural residents from farms in Emmons County, said county spokeswoman Marlys Ohlhause.Also in Emmons County, 50 to 75 homes were evacuated Sunday night in Linton, a town of about 1,300 south of Bismarck, said county emergency manager Shawna Paul. About 40 families had abandoned their homes in Beulah, said Mercer County emergency manager Richard Sorenson. Beulah is a coal country town of about 3,150 people, northwest of Bismarck. There are no injuries — just a lot of people stressed out and worried,Sorenson said. Associated Press writer James MacPherson in Bismarck contributed to this report.

Labor votes to join Netanyahu government MAR 24,09

JERUSALEM – Israel's Labor Party voted Tuesday to join the incoming government of Benjamin Netanyahu, giving a centrist tone to the coalition that has looked hard-line up to now.Party secretary Eitan Cabel announced the results of the voting after a heated debate — 680 in favor and 507 against.Ofer Eini, head of the Histadrut labor union and a senior Labor Party operative, told Israel's Army Radio, I'm happy that party delegates have decided to enter the government.But others chanted slogans like Disgrace after the announcement.Netanyahu has signed coalition agreements with Yisrael Beitenu and Shas, two parties known for their tough policy lines toward the Palestinians, as is Netanyahu's own Likud Party. Labor, in contrast, has been in the forefront of Mideast peace efforts.Labor's 13 seats in the parliament would give Netanyahu a majority of 66 in the 120-seat house, but there is a possibility that the party could split as a result of the vote, and some members might choose to remain in the opposition.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

JERUSALEM (AP) — A Labor Party official says his party has voted to join the incoming government of Benjamin Netanyahu, giving a centrist tone to the coalition that has looked hard-line up to now.Ofer Eini, head of the Histadrut labor union and a senior Labor Party operative, told Israel's Army Radio that the party's central committee agreed to Netanyahu's partnership offer.Eini said: I'm happy that party delegates have decided to enter the government.Army Radio said the vote was 680 in favor and 507against.Netanyahu has signed coalition agreements with Yisrael Beitenu and Shas, two parties known for their tough policy lines toward the Palestinians, as is Netanyahu's own Likud Party. Labor, in contrast, has been in the forefront of Mideast peace efforts.

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/

SPECIAL CONFERENCE MAR 23-24,2009,ALL FINANCIAL INSTITUTIONS WILL BE THERE,ALL THE EU MEMBERS WILL BE THERE,AND THE G-20 WILL BE THERE.THIS SAME GROUP OF EU,BANKERS,G-20 WILL ALSO BE IN LONDON IN APRIL TO LAY PLANS FOR THE NEW WORLD ORDER,ESPECIALLY THE G-20.https://futurefinance.wsj.com/index.php

HALF HOUR DOW RESULTS TUE MAR 24,2009

09:30 AM -2.39
10:00 AM -58.38
10:30 AM -98.45
11:00 AM -84.99
11:30 AM -52.17
12:00 PM -69.46
12:30 PM -42.37
01:00 PM -18.32
01:30 PM +13.22
02:00 PM -19.99
02:30 PM -39.46
03:00 PM -59.90
03:30 PM -62.21
04:00 PM -115.65 7660.21

S&P 500 806.38 -16.54

NASDAQ 1518.66 -37.11

GOLD 925.90 -26.60

OIL 53.55 -0.25

TSE 300 8849.39 -109.12

CDNX 924.29 +0.26

S&P/TSX/60 537.69 -8.95

MORNING,NEWS,STATS

YEAR TO DATE PERFORMANCE
Dow -11.40%
S&P -8.89%
Nasdaq -1.35%
TSX Advances 1,117,declines 449,unchanged 267,Volume 2,818,613,097.
TSX Venture Exchange Advances 464,Declines 336,Unchanged 366,Volume 178,267,909.

Dow -73 points at 4 minutes of trading today.
Dow -109 points at low today.
Dow +23 points at high today so far.
GOLD opens at $923.40.OIL opens at $52.68 today.
Geithner,Bernanke to emphasize importance of new regulations to wind down nonbank institutions during capital hill testimony today.

AFTERNOON,NEWS,STATS
Dow -109 points at low today so far.
Dow +23 points at high today so far.

DAY TODAY PERFORMANCE - 12:30PM STATS
NYSE Advances 1,262,declines 2,351,unchanged 124,New Highs 9,New Lows 78.
Volume 3,813,469,009.
NASDAQ Advances 866,declines 1,741,unchanged 125,New highs 9,New Lows 19.
Volume 981,875,154.
TSX Advances 571,declines 763,unchanged 265,Volume 1,418,330,363.
TSX Venture Exchange Advances 257,Declines 306,Unchanged 302,Volume 92,950,278.

WRAPUP,NEWS,STATS
Dow -109 points at low today.
Dow +23 points at high today.
Dow -1.49% today Volume 379,502,328.
Nasdaq -2.39% today Volume 1,888,065,606.
S&P 500 -2.01% today Volume N/A

Dow falls 1.5% today after gaining 6.8% yesterday.
Dow below 7700 points today.
Nasdaq down 2.5% today after gaining 6.8% yesterday.
S&P down 2.0% today after gaining 7.1% yesterday.
Stocks give back slice of yesterday's big gains.
Stocks sink under morning lows.
Stocks retreat from days highs after erasing early losses.
Selling accelerates in last minutes of trading.

RECORD LOWS DOW
-Sept 30,1996 5,882.17
-Oct 30,1996 5,993.23
-Nov 6,1996 6,177.71
-Dec 16,1996 6,268.35
-Apr 15,1997 6,587.16
-Apr 21,1997 6,660.21
-Apr 28,1997 6,783.02
-May 1,1997 6,976.48
-May 7,1997 7,085.65

RECORD LOWS S&P 500
-Sept 5,1996 649.44
-Sept 6,1996 655.68
-Sept 11,1996 667.28
-Sept 12,1996 671.13
-Oct 1,1996 689.08
-Oct 28,1996 697.26
-Nov 4,1996 706.73
-Nov 5,1996 714.14
-Dec 17,1996 726.04

BOHEMIAN GROVE OCCULT WORSHIP
http://video.google.com/videoplay?docid=-82095917705734983

Brown calls on EU to lead the way out of financial hurricane
ELITSA VUCHEVA Today MAR 24,09 @ 18:56 CET

EUOBSERVER / BRUSSELS – In an unusually pro-European speech on Tuesday (24 March) UK prime minister Gordon Brown insisted that Britain was one of the EU's key players and that the 27-nation bloc was in a unique position to lead the way out of the global financial crisis by re-inserting a strong sense of values in the financial markets.I stand here today proud to be British and proud to be European,Mr Brown said (Photo: European Parliament - Audiovisual Unit)I stand here today proud to be British and proud to be European,Mr Brown told MEPs in Strasbourg.The UK has often been subject to criticism for not being sufficiently involved in EU affairs, notably due to its opt-outs from various EU areas such as justice and home affairs or the common European currency.But the British premier stressed that he was representing a country that does not see itself as an island adrift from Europe but as a country at the centre of Europe; not in Europe's slipstream but firmly in its mainstream.He also said the EU was uniquely placed to provide world leadership in finding a way out of the international hurricane that is sweeping the world.The bloc has a long history of cross-border co-operation and a strong sense of values it can bring to the markets, he added.

I propose that we in Europe take a central role in setting up a new principled economy for our times,Mr Brown said.The prime minister's speech in the European Parliament was the first stop in a quick world tour that will also see him landing in the US, Brazil and Chile, ahead of the G20 meeting he is is host next week (2 April) in London.At the G20 summit, the EU is going to push for additional financial regulation as well as for the beginning of the end for offshore tax havens and offshore centres,Mr Brown said.

Protectionism the politics of retreat and fear

The British premier also re-iterated his warnings against economic protectionism, which he called the politics of defeatism.I know that the temptation for some is to meet this new insecurity with retreat, to try to feel safe by attempting to pull up the drawbridge or turn the clock back,Mr Brown told MEPs.But I tell you if there's anything we know from history, it is that protectionism is the politics of defeatism, retreat and fear and in the end protects no one at all,he added.The debate on protectionism in Europe was sparked by French President Nicolas Sarkozy, who was accused of economic nationalism after unveiling a package in February to help the French car industry.But an EU summit on 1 March in Brussels ended with the assurance that no EU country intended to breach the bloc's single market rules by putting in place policies aimed at protecting their own industries.

EU – US co-operation

In its bid to exit the crisis and building a more moral financial system, Europe must also work for a strong co-operation with the new American administration, according to Mr Brown.Never in recent years have we had an American leadership so keen at all levels to co-operate with Europe on financial stability, climate change, security and development, and seldom has such co-operation been so obviously of benefit to us and to all the world,he said.For his part, US President Barack Obama also called for joint action ahead of the G20 summit.My message is clear: The United States is ready to lead, and we call upon our partners to join us with a sense of urgency and common purpose,Mr Obama wrote in an article published in 30 newspapers around the world on Tuesday.Only co-ordinated international action can prevent the irresponsible risk-taking that caused this crisis. That is why I am committed to seizing this opportunity to advance comprehensive reforms of our regulatory and supervisory framework,the American president wrote.He also re-iterated calls on world governments to stimulate growth.The US had previously defended the stance that countries should focus more on additional fiscal measures and spending, but most EU states – notably France and Germany – have been arguing that the bloc is already spending enough and that the emphasis should now be put on tighter regulation.I know that America bears our share of responsibility for the mess that we all face. But I also know that we need not choose between a chaotic and unforgiving capitalism and an oppressive government-run economy. That is a false choice that will not serve our people or any people,Mr Obama wrote.

World trade set for largest contraction since WWII
ANDREW WILLIS Today MAR 24,09 @ 09:19 CET

EUOBSERVER / BRUSSELS - The volume of world trade is predicted to plunge by nine pecent this year, according to a World Trade Organisation annual report due out on Wednesday (25 March), in the largest contraction since World War II.WTO director-general Pascal Lamy said the new forecast highlighted the need to kick-start world trade, with the 9 percent dip to help cause a one to two percent contraction in the world economy overall this year - the first time since the 1930s. Trade can be a potent tool in lifting the world from these economic doldrums,he said. In London, G20 leaders will have a unique opportunity to unite in moving from pledges to action and refrain from any further protectionist measure that will render global recovery efforts less effective.Pressure is also increasing for a resumption of the Doha development round of trade talks that broke down last year.The trade contraction in developed countries such as Germany, the world's largest exporter by volume, will be severe says the report, with WTO economists forecasting a 10 percent fall in exports.

Developing countries will see a smaller fall in the range of two to three percent, but their heavy reliance on exports for growth make this figure no less alarming. Mr Lamy said the global credit shortage was exacerbating the problem as companies around the world struggle to finance deals. The depleted pool of funds available for trade finance has contributed to the significant decline in trade flows, in particular in developing countries,he said. As a consequence, many thousands of trade related jobs are being lost. Governments must avoid making this bad situation worse by reverting to protectionist measures that in reality protect no nation and threaten the loss of more jobs.EU leaders also repeated the need to reject protectionism last Friday at the bloc's spring summit in Brussels, while on the same day French carmaker Renault announced its intention to move a production plant employing 400 workers from Slovenia to a site just outside Paris. The move was supported by French President Nicholas Sarkozy. The promises of European leaders contrast sharply with the severity of the current situation, particularly in the automobile sector. The European Automobile Manufacturers Association (ACEA) reports that passenger car registrations were down 18 percent in Europe in February 2009, compared to the previous year. The sector is a huge provider of jobs in Europe.The WTO's report highlights the need to unblock the banking sector as a crucial first step in tackling the problem.

Under normal recessionary conditions, consumer reticence to spend is transferred into a larger pool of savings that in turn can be lent out to businesses that are keen to invest in future production.However, current uncertainty over assets held by banks, means this process is not taking place.The annual report also emphasises the unprecedented global nature of the fall in consumer demand that has effected all regions of the world, but suggests that some initial signs of recovery may be visible in parts of Asia.

TSX pulls back after big rise; commodities weigh By Jennifer Kwan – Tue Mar 24, 10:26 am ET

TORONTO (Reuters) – Toronto's main stock index pulled back on Tuesday after surging more than 5 percent in the previous session, led down by weakness in resource issues on slumping commodity prices.The biggest contributors to the index's slide included a mix of commodity issues and financials stocks, the main drivers of the market's recent rise.We've had, to state the obvious, quite a run over the past two weeks or so and I think you're having just a natural selling that you get inevitably in these sorts of situations,said Bob Gorman, chief portfolio strategist at TD Waterhouse.It's two steps forward, one step back. It's very seldom a V-shape.At 9:55 a.m. EDT, the S&P/TSX composite index was down 176.61 points, or 1.97 percent, at 8,781.90, with nine of its 10 main groups lower. The utilities sector eked out a 0.32 percent gain.

The index had its highest close in six weeks on Monday.

Materials, down 3.1 percent, led the resource-laden market lower as the price of bullion and base metals drooped. Goldcorp was down 4.6 percent at C$39.90, while Potash Corp of Saskatchewan Inc fell 0.8 percent to C$100.51.Oil and gas stocks sagged 3 percent as oil retreated to around $52.50 a barrel after a 3 percent surge in the previous session. Suncor Energy pulled back 4.6 percent to C$29.33.Financials sagged 1.4 percent with Royal Bank of Canada down 1.4 percent at C$37.41.Elsewhere, Canadian forest products company Tembec announced a temporary curtailment of operations in the Kapuskasing region in Ontario, affecting about 510 employees at its sawmill, newsprint and forestry operations. Tembec shares fell 18.6 percent to 70 Canadian cents.HudBay Minerals Inc rose 0.2 percent to C$5.81. Late on Monday the company said its board of directors resigned and will be replaced by a slate put forward by dissident shareholder SRM Global Master Fund.Issues gaining on Tuesday included Rogers Communications, which climbed 1.3 percent to C$30.73, and BCE, up 1.6 percent at C$23.71.(Reporting by Jennifer Kwan; Editing by Jeffrey Hodgson)

Canada finance minister to attend G20 summit Tue Mar 24, 10:18 am ET

OTTAWA (Reuters) – Canadian Finance Minister Jim Flaherty will join Prime Minister Stephen Harper at a summit of G20 major and emerging economies next week in London, a spokesman for the minister said on Tuesday.Chisholm Pothier, spokesman for Flaherty, confirmed to Reuters that the finance minister would attend the meeting, which will discuss how to resolve the global financial crisis.(Reporting by Louise Egan; Editing by Jeffrey Hodgson)

Canada finance minister says oil merger important Tue Mar 24, 8:16 am ET

OTTAWA (Reuters) – Finance Minister Jim Flaherty said on Tuesday Suncor Energy's proposed takeover of Petro-Canada is an important deal for Canada and for the oil patch.Flaherty, speaking to CTV television, said it was a good thing that regulators were reviewing the deal to ensure fair competition in the oil industry, but added that,We believe in investment as well in this country. We want to grow this economy.

Suncor has agreed to acquire Petro-Canada for C$18.43 billion ($14.9 billion) to create Canada's largest oil company.It has to be reviewed by the Competition Bureau and its quasi-judicial function will deal with that,Flaherty said.It's important for Canada overall and for development of the oil patch.Flaherty also has a role in approving the deal because his ministry is responsible for legislation affecting the formerly state-owned Petro-Canada that prohibited anyone from holding more than 20 percent of the company.Ron Brenneman, Petro-Canada's chief executive, said on Monday that because of the structure of the agreement, he expected the existing legislation will now apply to the new company, which will retain the Suncor name.Flaherty did not comment on that aspect of the deal.(Reporting by Louise Egan, Editing by Chizu Nomiyama)

Geithner seeks new powers over financial companies By JEANNINE AVERSA, AP Economics Writer MAR 24,09

WASHINGTON – Treasury Secretary Timothy Geithner asked Congress on Tuesday for broad new powers to regulate nonbank financial companies like troubled insurer American International Group whose collapse could jeopardize the economy.AIG highlights broad failures of our financial system, Geithner told the House Financial Services Committee. We must ensure that our country never faces this situation again.At the same time, Federal Reserve Chairman Ben Bernanke revealed that he had considered filing suit to keep AIG from paying millions in executive bonuses but that his legal advisers counseled him against it.Geithner acknowledged that the current climate of anger, including the furor over those retention bonuses, will complicate any effort by the Obama administration to get more bailout money from Congress.We recognize it will be extraordinarily difficult,he said.The administration sought to use that rancor to build support for its financial overhaul proposals.Geithner joined Bernanke in calling for greater governmental authority over complicated and troubled financial companies — power they likened to the authority wielded over banks by the Federal Deposit Insurance Corporation. That includes the power to seize control of institutions, take over their bad loans and other illiquid assets and sell good ones to competitors.AIG is a globally interconnected colossus, with 74 million customers worldwide and operations in more than 130 countries. The government decided it was simply too big to let fail.Its failure could have resulted in a 1930s-style global financial and economic meltdown, with catastrophic implications for production, income and jobs, Bernanke told the panel.Geithner, Bernanke and New York Fed President William C. Dudley testified in a rare joint appearance before the panel. Their testimony came a day after the Fed unveiled a new bank rescue plan under which the government would take responsibility for up to $1 trillion in sour mortgage securities with the help of private investors.

That delighted Wall Street and the Dow industrials shot up nearly 500 points. On Tuesday, Wall Street gave back some of its gains and the Dow was down just over 45 points in midday trading.Much of Tuesday's discussion centered on ways to help the government better deal with future AIG-like companies whose failure could devastate the financial system and the drag down the economy.As we have seen with AIG, distress at large, interconnected, non-depository financial institutions can pose systemic risks just as distress at banks can, Geithner said. The administration proposes legislation to give the U.S. government the same basic set of tools for addressing financial distress at non-banks as it has in the bank context.Geithner made it clear he believes the treasury secretary should be granted unprecedented power, after consultation with Federal Reserve Board officials, to take control of a major financial institution and run it. The treasury chief is an official of the administration, unlike the FDIC, which is an independent regulatory agency.The witnesses were asked if AIG would have been treated any differently, including the payment of $165 million in bonuses earlier this month, if such powers had existed last September, when the Fed began the government bailout of the insurer.Quite differently. It could have been taken into receivership or conservatorship. ...The bonus issue would not have arisen, Bernanke said.He said that contracts providing for the bonuses could have been adjusted and we could have taken haircuts against some of AIG's financial obligations to other companies.AIG has become a symbol of reckless risk-taking on Wall Street. The bonuses came even as AIG reported a stunning $62 billion loss, the biggest in U.S. corporate history.The government has bailed out AIG four times, to the tune of more than $180 billion altogether. New York Attorney General Andrew Cuomo said Monday that 15 employees who received some of the largest bonuses from AIG have agreed to return them in full, totaling about $50 million. The House last week voted overwhelmingly to slap 90 percent taxes on the largest bonuses. Similar but more limited legislation is before the Senate. Still, White House support for using the tax code in such a fashion has been tepid at best. And Democrats seem to be moving off the concept. If the money is returned, the legislation may no longer be necessary,said House Majority Leader Steny Hoyer, D-Md. As to Geithner seeking more authority, Hoyer said he wanted to discuss with committee Chairman Barney Frank, D-Mass.,whether or not such delegation is appropriate or whether there should be greater oversight.Geithner has been sharply criticized for his role in the AIG bailout because he helped put the deal together last September as then-president of the New York Fed, yet said he did not learn of the big bonuses until two weeks ago.

In a sharp exchange, Geithner was asked by Rep. Brad Sherman, D-Calif., whether there were other financial companies besides AIG who took taxpayer bailouts and then paid big bonuses to their executives. You're right, this goes well beyond AIG, said Geithner.Sherman asked for a public list of those companies and an accounting of the bonuses they paid.Geither was noncommital. Sherman told him he was trying to hide the ball.I'm not going to hide the ball, Geithner said.I'll reflect on the suggestion you made.Bernanke said it was highly inappropriate to pay substantial bonuses to the employees. Bernanke said he asked that the payments be stopped but was told that they were mandated by contracts agreed to before the government seized control of AIG on September 16. I then asked that suit be filed to prevent the payments, he said. Bernanke said that his legal staff counseled against this action on the grounds that Connecticut law provided for substantial punitive damages in the event any such suit failed. AIG's financial products division has a base in Connecticut. The AIG bonuses created a public relations headache for President Barack Obama at a time when he was trying to gin up public and political support for his economic policies, bank-rescue plan and overhaul of the nation's regulatory structure. Government bailouts of AIG, Citigroup Inc., Bank of America Corp. and others have put billions of taxpayers' dollars at risk over the past year and have angered the American public. Associated Press writer Martin Crutsinger contributed to this report.

Oil prices slip after a week of gains By DIRK LAMMERS, AP Energy Writer MAR 24,09

SIOUX FALLS, S.D. – A stronger dollar helped pull down oil prices Tuesday, halting a week of gains as markets brace for possible news of growing crude stockpiles.

Benchmark crude for May delivery fell 75 cents to $53.05 a barrel in trading on the New York Mercantile Exchange. The contract climbed as high as $54.05 on Monday before settling at $53.80, up $1.73.The dollar has taken a hit in recent weeks as the U.S. government plows billions into the economy and currency investors flee to commodities like oil.Over the last three weeks the U.S. dollar has dropped by around six-and-a-half percent, while NYMEX crude oil has jumped by more than one-fifth, trader and analyst Stephen Schork wrote in his Schork Report.Coincidence? Of course not.Oil prices rallied all last week and again on Monday as the Dow Jones industrials jumped nearly 500 points. Investors grew more optimistic because of a new plan to resolve the nation's banking crisis. Better-than-expected housing news helped too.Wall Street declined slightly Tuesday, as did oil prices ahead of a government report Wednesday about domestic crude inventories. Analysts expect a build up of 1.4 million barrels in commercial crude oil stocks, a Platts survey showed Monday.

Also on Tuesday, the dollar began to strengthen.After some of the euphoria wore off from the big rally in stocks yesterday, the market started to react to the stronger dollar,said Phil Flynn, an analyst at Alaron Trading Corp. The strong dollar obviously will ease some of the inflation fears that we've seen and that's bringing oil prices back down.The Obama administration's latest initiative to revive consumer and business lending, introduced Monday by Treasury Secretary Timothy Geithner, seeks to combine government and private resources to purchase an initial half-trillion dollars of bad assets off the balance sheets of banks. Eventually, the plan could grow to $1 trillion.With summer just around the corner and refineries switching over to summer blends, the yearly rise in gasoline prices has begun.U.S. prices at the pump rose overnight to a new national average of $1.966 for a gallon of regular unleaded, up 1 cent from Monday, according to auto club AAA, Wright Express and Oil Price Information Service. Gasoline is about 5 cents a gallon higher than a month ago and about $1.30 a gallon cheaper than it was last year this time.China on Tuesday increased the benchmark retail price of gasoline and diesel fuel amid rising global prices for crude.The hikes, taking effect from midnight Tuesday, boost the prices that suppliers charge retailers for gasoline by 290 yuan ($42) per metric ton and diesel by 180 yuan ($26) per metric ton.Beijing had been using its system of government-set energy prices to shield its citizens from surging global crude prices, although the government has tried to make the system more flexible and responsive to international price shifts.Russian Finance Minister Alexei Kudrin said Tuesday his country should not become complacent about the recent rise in oil and stock prices, calling the increase temporary.Russia's economy, which is heavily dependent on exports of oil and gas, was hit hard over the past year as prices for oil plummeted. Oil and gas prices have recently rallied — 30 percent this month alone — helping Russia's stock market rebound.In Venezuela, which relies on oil for 93 percent of its exports and nearly half its federal budget, President Hugo Chavez asked lawmakers to hike sales taxes and nearly triple domestic debt sales this year to boost state coffers amid plunging oil income.In other Nymex trading, gasoline for April delivery dropped 1.3 cents to 1.475 per gallon, and heating oil was essentially flat at $1.47 a gallon. Natural gas gained 3 cents at $4.32 per 1,000 cubic feet. In London, Brent prices fell 50 cents to $52.97 on the ICE Futures exchange. Associated Press writers John Porretto in Houston, George Jahn in Vienna and Eileen Ng in Kuala Lumpur, Malaysia, contributed to this report.

Debate unfolding on Larosiere financial proposals
ANDREW WILLIS Today MAR 24,09 @ 18:39 CET

EUOBSERVER / BRUSSELS - Members of the high-level Larosiere group, whose recent report will form the basis of commission recommendations to member states on financial regulatory reform, defended their proposals on Tuesday (24 March) in a debate with financial experts. Particularly controversial is the group's proposal for a European System of Financial Supervision made up of banking, insurance and securities authorities that will oversee national supervisors. A number of major European banks have been nationalised due to their exposure to US sub-prime assets and other poorly regulated securities (Photo: Wikipedia)Discussion moderator Wolfgang Munchau of Eurointelligence asked why the group had not opted for a more centralised approach at the European level.A centralised body would operate in a vacuum,said Leszek Balcerowicz, a member of the Larosiere group, who added that the political will for this option was also lacking. Last Friday, the Larosiere report won the backing of EU leaders who said in the conclusions of their meeting in Brussels that the paper is the basis for action.The UK's national financial regulator, the Financial Services Authority, also recently published a report on the subject named after its chairman, Lord Turner.The Larosiere report proposes two main structures to prevent a repeat of the current financial crisis.

The setting up of a European Systemic Risk Council (ESRC) under the auspices of the European Central Bank, which would focus on threats to the EU economy as a whole rather than to individual companies. This idea is largely uncontroversial. However, the report's proposal for a European System of Financial Supervision (ESFS) to monitor individual companies is proving more contentious. Under the draft ESFS framework, national supervisors for each of the banking, insurance and securities sectors would remain the main watchdogs of financial companies such as large banks or insurance firms that operate under their jurisdiction.

Toothless committees

At present, the actions of these national watchdogs are monitored by pan-European bodies known as level-three committees that have the aim of promoting convergence in European supervisory standards. They are relatively toothless however, and the Larosiere report suggests the committees be renamed authorities and given the power to instruct national supervisors to take action when they feel the activities of a particular company pose a serious risk to the stability of the financial system. The new powers would also enable the three sectoral authorities to mediate more efficiently between national supervisors.The system of authorities is ambitious, said David Wright, the deputy director-general of the European Commission's internal market and services department and rapporteur for the Larosiere group. New powers mean they can tell national supervisors to act and if they do not act, they must explain why not.To ensure national supervisors are forced to act on recommendations from the authorities, the Larosiere report suggests that the ESFS be linked to governments in some way so that political pressure from other member states can be applied.Added to this, the negative publicity and market pressure will ensure national supervisors are forced to act, argued Mr Wright, even if it means dealing with a national banking champions.

Industry doubts

Nevertheless, it is evident that many working within the financial sector harbour doubts over the efficient functioning of the ESFS, although their reasons differ.

Nicolas Veron, a researcher with Bruegel, a Brussels centrist think-tank, feels the Larosiere proposals still contain many gaps when it comes to the supervision of individual companies.Without the detail, we could end up with a system that is worse than what we have at the moment,he says. Following Tuesday's debate by industry experts, EU finance ministers will discuss the topic when they informally meet in Prague on 4 April.The commission is set to publish its first list of legislative proposals in May in time for approval by EU leaders when they meet in June.

Europe needs social package fit for 21st century
HONOR MAHONY Today MAR 24,09 @ 17:38 CET

EUOBSERVER / BRUSSELS - The European Union's social, education and business systems need a complete shakedown if the bloc is to be a meaningful player in the 21st century, the head of a group looking at future challenges of Europe has said.Felipe Gonzalez, a former Spanish prime minister, on Tuesday (24 March) condemned what he called the current sclerosis on taking necessary structural measures in Europe and called for a new social package for the 21st century.He noted that Europe's much vaunted social model was built for another era - a post-World War II Europe of industrial nations, with a population that was much less grey than it is today.He said the "one advantage of the current global downturn, which is expected to push EU unemployment into double figures and has already caused social unrest in several member states, is that there will be a clear before and after for Europe, representing a chance for change.But Mr Gonzalez questioned whether EU leaders and policy-makers are yet taking the economic crisis seriously enough, noting that the issue has completely dominated the first meetings of his 12-strong wise group, due to make its recommendations for a Europe from 2020 to 2030 some time in the middle of next year.Is there enough awareness of the gravity of the crisis? he asked his audience at the Brussels-based Lisbon Council think-tank.

Sweet decadence

Pre-crisis Europe saw an EU that was fading in global significance and had entered a period of sweet decadence, said Mr Gonzalez. He said that Europe was well known for being a paymaster but not a real player, taking as an example Sarajevo airport – paid for by Europeans but unveiled by Americans.We have to revisit the foundations of our social pact,he said, highlighting the well-documented European problems of an ageing population and its strains on the welfare system.We cannot continue to talk about how good the social model is without looking at the economy as a whole and ... research and development spending,he said.The centre-left Spanish politician urged EU leaders to approach Europe's many challenges differently, with a rethink needed of social and industrial relations as well as of education systems.Amongst other things, retirement should be a right not an obligation; work should be judged on productiveness per hour and not on the length of the day, there should be less corporate rigidity and people should finish the education system with a clear idea of what they can bring to the jobs market.According to Mr Gonzalez, EU society does not allow for upward mobility in the business world. He noted that the US has no category of small and medium-sized enterprises, only start-ups that eventually get bigger.

He called the bloc's Lisbon Strategy, its tattered goal to make the EU the most competitive economy in the world by 2010, a failure but said that if leaders use the crisis, it can help Europe on the way.The European reflection group began its work in December and is due to deliver its report in June 2010, with other members of the committee including Dutch architect Rem Koolhaas, Italian former EU commissioner Mario Monti and Lykke Friis, vice-chancellor of Copenhagen university.

North Korea warns against UN action on rocket
ReutersMarch 24, 2009 9:01 AM

North Korean leader Kim Jong-il (R) waves to soldiers during a meeting with front-line soldiers at a military gathering in Pyongyang, North Korea, in this picture released by North Korean news agency KCNA March 21, 2009.Photograph by: Handout, Reuters/KCNASEOUL - North Korea said on Tuesday any attempt by the UN Security Council to punish it for trying to put a satellite in space would mean the collapse of international disarmament talks aimed at ending its nuclear programme.North Korea has said it would launch a satellite between April 4 and 8. Regional powers see the launch as a disguised test of its longest-range missile and a violation of UN sanctions forbidding the reclusive state from firing ballistic missiles.It is perversity to say satellite launch technology cannot be distinguished from a long-range missile technology and so must be dealt with by the UN Security Council, which is like saying a kitchen knife is no different from a bayonet,state media quoted a North Korean Foreign Ministry spokesman as saying.The unidentified spokesman said such an act of hostility would be in defiance of the Sept. 19 joint statement, a disarmament-for-aid deal the impoverished North reached with China, Japan, Russia, South Korea and the United States.If the Sept. 19 joint statement is nullified, there will be neither the foundation nor the meaning for the existence of the six-party talks,the spokesman said.

North Korea has given international agencies notice of the rocket’s planned trajectory that would take it over Japan, dropping booster stages to its east and west.Analysts said the notice was given to help the North argue the rocket launch does not violate UN sanctions put in place after it test-launched a series of missiles in 2006.South Korea, Japan and the United States have all said they want to press sanctions against the North for a launch and see no difference between a satellite launch and a missile launch because they use the same rocket — called the Taepodong-2.

ACT OF WAR

Japan may deploy two Aegis-equipped destroyers, capable of shooting down missiles, to waters between North Korea and Japan, Japanese media have said. The United States also has naval ships deployed in Asia that can intercept missiles.North Korea has said shooting down the rocket would be an act of war.Japan’s foreign minister said it would be difficult to intercept debris falling from the rocket.Our country has not done this before. We don’t know how or where it will fly, Hirofumi Nakasone told reporters.The first and only time the North test-launched the Taepodong-2 in 2006, it fizzled shortly into flight and blew apart after about 40 seconds.China, which hosts the often-stalled nuclear disarmament talks, urged restraint.The most recent snags in the talks are the North’s complaints that aid is not being delivered as promised, with the other five parties objecting to Pyongyang’s refusal to accept a nuclear inspection system.North Korea has been working hard over past weeks to prepare its launch tower to launch the rocket, Jane’s Intelligence Review said after reviewing satellite images.Other experts have said it would take about a week to 10 days to prepare the rocket for launch once it is set vertically and placed on the launch pad.

Diplomats from Japan, South Korea and the United States will meet on Friday in Washington to discuss the planned rocket launch, Kyodo news agency said.