Jumat, 11 Maret 2011
expert gold - high profit: Major tsunami after 8.9 Japan quake
expert gold - high profit: Major tsunami after 8.9 Japan quake: "TOKYO -- A ferocious tsunami spawned by one of the ..."
Major tsunami after 8.9 Japan quake
The magnitude 8.9 offshore quake unleashed a 23-foot (7-meter) tsunami and was followed by more than 50 aftershocks for hours, many of them of more than magnitude 6.0.
Police said at least 60 people were killed and 56 were missing. The death toll was likely to continue climbing given the scale of the disaster.
Dozens of cities and villages along a 1,300-mile (2,100-kilometer) stretch of coastline were shaken by violent tremors that reached as far away as Tokyo, hundreds of miles (kilometers) from the epicenter.
"The earthquake has caused major damage in broad areas in northern Japan," Prime Minister Naoto Kan said at a news conference.
The International Atomic Energy Agency said Japan had closed four nuclear power plants as a precaution. A state of emergency was declared at one of the plants after its cooling system had a mechanical failure. Trouble was reported at two other nuclear plants as well, but there was no radiation leak at any.
Even for a country used to earthquakes, this one was of horrific proportions because of the tsunami that crashed ashore, swallowing everything in its path as it surged several miles (kilometers) inland before retreating. The apocalyptic images of surging water broadcast by Japanese TV networks resembled scenes from a Hollywood disaster movie.Large fishing boats and other sea vessels rode high waves into the cities, slamming against overpasses or scraping under them and snapping power lines along the way. Upturned and partially submerged vehicles were seen bobbing in the water. Ships anchored in ports crashed against each other.
The highways to the worst-hit coastal areas were severely damaged and communications, including telephone lines, were snapped. Train services in northeastern Japan and in Tokyo, which normally serve 10 million people a day, were also suspended, leaving untold numbers stranded in stations or roaming the streets. Tokyo's Narita airport was closed indefinitely.
Jesse Johnson, a native of the U.S. state of Nevada, who lives in Chiba, north of Tokyo, was eating at a sushi restaurant with his wife when the quake hit.
"At first it didn't feel unusual, but then it went on and on. So I got myself and my wife under the table," he told The Associated Press. "I've lived in Japan for 10 years and I've never felt anything like this before. The aftershocks keep coming. It's gotten to the point where I don't know whether it's me shaking or an earthquake."
Waves of muddy waters flowed over farmland near the city of Sendai, carrying buildings, some on fire, inland as cars attempted to drive away. Sendai airport, north of Tokyo, was inundated with cars, trucks, buses and thick mud deposited over its runways. Fires spread through a section of the city, public broadcaster NHK reported.
More than 300 houses were washed away in Ofunato City alone. Television footage showed mangled debris, uprooted trees, upturned cars and shattered timber littering streets.
The tsunami roared over embankments, washing anything in its path inland before reversing directions and carrying the cars, homes and other debris out to sea. Flames shot from some of the houses, probably because of burst gas pipes.
"Our initial assessment indicates that there has already been enormous damage," Edano said. "We will make maximum relief effort based on that assessment."
He said the Defense Ministry was sending troops to the quake-hit region. A utility aircraft and several helicopters were on the way.
A large fire erupted at the Cosmo oil refinery in Ichihara city in Chiba prefecture and burned out of control with 100-foot (30 meter) -high flames whipping into the sky.
From northeastern Japan's Miyagi prefecture, NHK showed footage of a large ship being swept away and ramming directly into a breakwater in Kesennuma city.
NHK said more than 4 million buildings were without power in Tokyo and its suburbs.
Also in Miyagi, a fire broke out in a turbine building of a nuclear power plant. Smoke was observed coming out of the building, which is separate from the plant's reactor, and the cause is under investigation, said Tohoku Electric Power Co. the company said.
A reactor area of a nearby plant was leaking water, the company said. But it was unclear if the leak was caused by tsunami water or something else. There were no reports of radioactive leaks at any of Japan's nuclear plants.
Jefferies International Limited, a global investment banking group, said it estimated overall losses to be about $10 billion.
The U.S. Geological Survey said the 2:46 p.m. quake was a magnitude 8.9, the biggest earthquake to hit Japan since officials began keeping records in the late 1800s, and one of the biggest ever recorded in the world.
The quake struck at a depth of six miles (10 kilometers), about 80 miles (125 kilometers) off the eastern coast, the agency said. The area is 240 miles (380 kilometers) northeast of Tokyo.
A tsunami warning was extended to a number of Pacific, Southeast Asian and Latin American nations, including Japan, Russia, Indonesia, New Zealand and Chile. In the Philippines, authorities ordered an evacuation of coastal communities, but no unusual waves were reported.
Thousands of people fled their homes in Indonesia after officials warned of a tsunami up to 6 feet (2 meters) high. But waves of only 4 inches (10 centimeters) were measured. No big waves came to the Northern Mariana Islands, a U.S. territory, either.
The first waves were expected to hit Hawaii about 1400 GMT (9 a.m. EST) Friday, and could reach more than 6 feet (2 meters), the Pacific Tsunami Warning Center said.
In downtown Tokyo, large buildings shook violently and workers poured into the street for safety. TV footage showed a large building on fire and bellowing smoke in the Odaiba district of Tokyo. The tremor bent the upper tip of the iconic Tokyo Tower, a 1,093-foot (333-meter) steel structure inspired by the Eiffel Tower in Paris.
Osamu Akiya, 46, was working in Tokyo at his office in a trading company when the quake hit.
It sent bookshelves and computers crashing to the floor, and cracks appeared in the walls.
"I've been through many earthquakes, but I've never felt anything like this," he said. "I don't know if we'll be able to get home tonight."
Footage on NHK from their Sendai office showed employees stumbling around and books and papers crashing from desks. It also showed a glass shelter at a bus stop in Tokyo completely smashed by the quake and a weeping woman nearby being comforted by another woman.
Several quakes had hit the same region in recent days, including a 7.3 magnitude one on Wednesday that caused no damage.
Hiroshi Sato, a disaster management official in northern Iwate prefecture, said officials were having trouble getting an overall picture of the destruction.
"We don't even know the extent of damage. Roads were badly damaged and cut off as tsunami washed away debris, cars and many other things," he said.
Dozens of fires were reported in northern prefectures of Fukushima, Sendai, Iwate and Ibaraki. Collapsed homes and landslides were also reported in Miyagi.
Japan's worst previous quake was in 1923 in Kanto, an 8.3-magnitude temblor that killed 143,000 people, according to USGS. A 7.2-magnitude quake in Kobe city in 1996 killed 6,400 people.
Japan lies on the "Ring of Fire" - an arc of earthquake and volcanic zones stretching around the Pacific where about 90 percent of the world's quakes occur, including the one that triggered the Dec. 26, 2004, Indian Ocean tsunami that killed an estimated 230,000 people in 12 nations. A magnitude-8.8 temblor that shook central Chile last February also generated a tsunami and killed 524 people.
Associated Press writers Jay Alabaster, Mari Yamaguchi, Tomoko A. Hosaka and Yuri Kageyama contributed to this report.
Pasar Tunggu Kenaikan Bunga Cina
Tsunami Kills Hundreds in Japan, Threatens Pacific Rim
The biggest earthquake on record to hit Japan rocked the northeast coast on Friday, triggering a 10-meter tsunami that killed hundreds of people and swept away everything in its path, including houses, ships and cars.The Red Cross in Geneva said the wall of water was higher than some Pacific islands and a tsunami warning was issued for almost the entire Pacific basin, although alerts were lifted for some countries, including Taiwan, Australia and New Zealand.
Up to 300 bodies were found in the coastal city of Sendai, media said. NHK television said the victims appeared to have drowned. The extent of the destruction along a lengthy stretch of coastline suggested the death toll could rise significantly.
Some 3,000 residents living near a nuclear plant in Fukushima prefecture, north of Tokyo, were told to evacuate but the government said no radiation was leaking. It said the evacuation was a precaution after a reactor cooling malfunction.
Other nuclear power plants and oil refineries were shut down after the 8.9 magnitude quake, while one refinery was ablaze. A major explosion hit a petrochemical complex in Miyagi prefecture after the quake, Kyodo said.
Political leaders pushed for an emergency budget to help fund relief efforts after Prime Minister Naoto Kan asked them to "save the country," Kyodo news agency reported.
Stunning TV footage showed a muddy wall of water carrying cars and wrecked homes at high speed across farmland near Sendai, home to one million people and which lies 300 km (180 miles) northeast of Tokyo. Ships had been flung onto a harbor wharf, where they lay helplessly on their side.
The quake, the most powerful since Japan started keeping records 140 years ago, sparked at least 80 fires in cities and towns along the coast, Kyodo news agency said.
A ship carrying 100 people had been swept away by the tsunami, Kyodo said. One train was unaccounted for.
In Tokyo, residents who had earlier fled swaying buildings jammed the streets trying to make their way home after much of the city's public transportation was shut down.
Electronics giant Sony [SNE 33.50 
-0.76 (-2.22%) 
], one of the country's biggest exporters, shut six factories, as air force jets raced toward the northeast coast to determine the extent of the damage.
-0.76 (-2.22%) ], one of the country's biggest exporters, shut six factories, as air force jets raced toward the northeast coast to determine the extent of the damage. The Bank of Japan, which has been struggling to boost the anemic economy, said it would do its utmost to ensure financial market stability as the yen and Japanese shares fell.
"I was terrified and I'm still frightened," said Hidekatsu Hata, 36, manager of a Chinese noodle restaurant in Tokyo, where buildings shook violently. "I've never experienced such a big quake before."
The tsunami alerts revived memories of the giant waves which struck Asia in 2004. The Pacific Tsunami Warning Center issued alerts for countries to the west and across the Pacific as far away as Colombia and Peru.
The earthquake was the fifth most powerful to hit the world in the past century.
There were several strong aftershocks. In Tokyo, there was widespread panic. An oil refinery near the city was on fire, with dozens of storage tanks under threat. Around 4.4 million homes were without power in northern Japan, media said.
"People are flooding the streets. It's incredible. Everyone is trying to get home but I didn't see any taxis," said Koji Goto, a 43-year-old Tokyo resident.
NHK television showed flames and black smoke billowing from a building in Odaiba, a Tokyo suburb, and bullet trains to the north of the country were halted. Thick smoke was also pouring out of an industrial area in Yokohama's Isogo area. TV showed residents of the city running out of shaking buildings, shielding their heads with their hands from falling masonry.
TV footage showed boats, cars and trucks tossed around like toys in the water after a small tsunami hit the town of Kamaichi in northern Japan. An overpass, location unknown, appeared to have collapsed and cars were turning around and speeding away.
"The building shook for what seemed a long time and many people in the newsroom grabbed their helmets and some got under their desks," Reuters correspondent Linda Sieg said in Tokyo.
"It was probably the worst I have felt since I came to Japan more than 20 years ago."
The U.S. navy said its ships had been unaffected by the tsunami and were ready to provide disaster relief if needed. China offered to provide earthquake relief.
The quake struck just before the Tokyo stock market closed, pushing the Nikkei down to end at a five-week low. Nikkei futures trading in Osaka tumbled as much as 4.7 percent in reaction to the news.
The disaster also weighed on markets elsewhere.
Great Kanto Quake
The quake surpasses the Great Kanto quake of Sept. 1, 1923, which had a magnitude of 7.9 and killed more than 140,000 people in the Tokyo area.
The 1995 Kobe quake caused $100 billion in damage and was the most expensive natural disaster in history. Economic damage from the 2004 Indian Ocean tsunami was estimated at about $10 billion.
Passengers on a subway line in Tokyo screamed and grabbed other passengers' hands during the quake. The shaking was so bad it was hard to stand, said Reuters reporter Mariko Katsumura.
Hundreds of office workers and shoppers spilled into Hitotsugi street, a shopping street in Akasaka in downtown Tokyo.
Crowds gathered in front of televisions in a shop next to the drugstore for details. After the shaking from the first quake subsided, crowds watched and pointed to construction cranes on an office building up the street with voices saying,
"They're still shaking!," "Are they going to fall?" Japan's northeast Pacific coast, called Sanriku, has suffered from quakes and tsunamis in the past and a 7.2 quake struck on Wednesday. In 1933, a magnitude 8.1 quake in the area killed more than 3,000 people.
Earthquakes are common in Japan, one of the world's most seismically active areas. The country accounts for about 20 percent of the world's earthquakes of magnitude 6 or greater.
Jepang
Beberapa orang cedera, namun belum dilaporkan ada kematian langsung, terutama dari daerah pesisir Pasifik Miyagi di pulau utama Honshu, kata polisi menurut media dan tayangan televisi yang menunjukkan banjir meluas di daerah tersebut.
Gempa yang menghantam pada sore, juga sangat mengguncang bangunan di Tokyo yang lebih besar, yang merupakan perkotaan terbesar di dunia dengan penduduk 30 juta orang.
Di sejumlah tempat listrik padam.
Setidaknya enam kebakaran dilaporkan di Tokyo, di mana sistem kereta bawah tanah berhenti, sirene meraung-raung dan orang-orang berhamburan keluar dari bangunan. Gempa pertama terjadi pada sekitar 382 kilometer (237 mil) di timur laut Tokyo, menurut Survei Geologi AS, yang merevisi besarnya kekuatan gempa 7,9 SR yang diumumkan sebelumnya.
Jepang, terletak pada “Cincin Api Pasifik” dan terdapat beberapa gunung berapi. Tokyo terletak di salah satu wilayah yang paling berbahaya.
Sebuah peringatan tsunami dikeluarkan untuk Jepang, Taiwan, Rusia dan Kepulauan Mariana, menurut Pusat Peringatan Tsunami Pasifik. “Gempa bumi seukuran ini memiliki potensi untuk menimbulkan tsunami yang merusak dan bisa menyerang garis pantai di dekat pusat gempa dalam hitungan menit, serta garis pantai yang lebih jauh dalam hitungan jam,” kata pernyataan Pusat Tsunami.
Hal ini juga menempatkan wilayah Guam, Filipina, Kepulauan Marshall, Indonesia, Papua New Guinea, Nauru, Mikronesia dan Hawaii mendapat limpahan tsunami yang lebih rendah.
Nilai tukar Yen jatuh menjadi 83,30 terhadap dolar AS dari 82,81 sebelum gempa melanda. Mega-kota Tokyo terletak di simpang tiga lempeng benua – yang merupakan piring Eurasia, Pasifik dan Laut Filipina – dan secara perlahan saling menggeser satu sama lain, membangun tekanan gempa besar.
Komite Penilitian Gempa pemerintah memperingatkan kemungkinan 70 persen terjadi gempa berkekuatan besar sampai 8 SR akan menyerang di dataran Kanto dalam tempo 30 tahun ke depan.
Terakhir kali sebuah “Gempa Besar” menghantam Tokyo pada tahun 1923, ketika Gempa Besar Kanto menelan lebih dari 140.000 jiwa, banyak dari mereka mati dalam kebakaran. Pada tahun 1855, gempa Ansei Edo juga menghancurkan kota itu. Baru-baru ini, gempa bumi Kobe 1995 menewaskan lebih dari 6.400 orang.
Lebih dari 220.000 orang tewas ketika sebuah gempa 9.1 SR mengguncang lepas pantai Indonesia pada tahun 2004, menimbulkan tsunami besar yang melanda pantai di negara-negara di sekitar Samudera Hindia sampai Afrika.
Gempa kecil sangat terasa setiap hari di beberapa tempat di Jepang dan orang-orang mengambil bagian dalam latihan rutin di sekolah-sekolah dan tempat kerja untuk mempersiapkan bencana.
Pembangkit listrik tenaga nuklir dan kereta peluru dirancang untuk secara otomatis terhenti ketika bumi bergemuruh dan banyak bangunan dirancang dengan baja dan besi beton berbiaya besar dalam beberapa dekade terakhir ini.
Gempa Jepang Hentikan Aktivitas
Sony menghentikan dan mengevakuasi seluruh pekerja pada ke-6 pabriknya yang berada di timur laut Jepang, kata juru bicara perusahaan, Yasuhiro Okada di Tokyo.
Gempa, Jepang terkuat di setidaknya satu abad, melanda 130 kilometer (81 mil) di lepas pantai Sendai, utara Tokyo, kata US Geological Survey. Getaran menyebabkan tsunami setinggi 10 meter (33 kaki) yang tergenang kota utara dan mengakibatkan gedung-gedung mengorak sejauh Tokyo.
Sementara produsen mobil terbesar dunia Toyota dan sejumlah anak perusahaannya juga telah menutup 3 pabrik, termasuk pabrik yang baru mulai beroperasi tahun ini di Miyagi, yang memproduksi city-car Yaris dengan kapasitas produksi mencapai 120.000 kendaraan per tahun, kata juru bicara perusahaan Shiori Hashimoto di Tokyo.
Penjualan Retail AS Naik
Gold today
Emas Masih Rentan Terhadap Tekanan
Saat ini Emas ditawarkan hampir $5 lebih rendah pada kisaran $1407.60/1408.40 per ons.
"Dengan sebagian besar pasar berupaya mengurangi resiko, maka Emas akan tetap rentan terhadap tekanan dalam jangka pendek," kata analis James Moore dari FastMarkets. "Pasar masih terus memantau perkembangan situasi di wilayah Mena dan bagaimana demonstrasi di Arab Saudi berpengaruh terhadap harga komoditas. Kejatuhan lebih dalam lagi berpotensi memicu bargain hunting," tambahnya.
Qaddafi's Son Declares Offensive as Libyan Rebels Flee Oil Hub Ras Lanuf
Saif al-Islam, who has become a spokesman for his father, said the government will never surrender to the rebels and that the offensive is starting now.
“This is our country. We fight here in Libya, we die here in Libya,” he said at a press conference broadcast on Sky television. “The Libyan people will never ever welcome NATO, they will never ever welcome the Americans.”
Oil futures, which had risen to a 2 1/2-year high on the conflict in Libya, pared early losses today following an Associated Press report that Saudi Arabian police opened fire to disperse protesters in the eastern city of al-Qatif. Crude oil for April delivery declined $1.94 to $102.44 a barrel at 3:44 p.m. on the New York Mercantile Exchange. Oil traded at about $101.50 before reports of the gunfire.
Libyan Rebels in Ras Lanuf retreated today under air and artillery fire from Qaddafi’s forces, Al-Jazeera showed in a broadcast from the coastal city that is home to Libyan Emirates Oil Refinery Co. Black smoke billowed from an oil depot nearby.
In Washington, the director of the U.S. Defense Intelligence Agency, Army Lieutenant General Ronald Burgess, said the momentum in the fighting, initially with the rebels, has shifted to Qaddafi’s forces. The U.S. director of national intelligence, James Clapper, said Qaddafi “will prevail” if the fighting goes on for a longer time.
“Local doctors have seen a sharp increase in the number of casualties arriving at hospitals,” International Committee of the Red Cross President Jakob Kellenberger said today in a statement from Geneva. Twenty-two people have died and 40 have been treated for wounds in the western city of Misrata and Red Cross doctors have operated on another 55 casualties in the northeastern town of Ajdabiya, he said.
Diplomatic Recognition
The rebels’ setback occurred as their leaders won French diplomatic recognition for the Interim Transitional National Council in a meeting in Paris with French President Nicolas Sarkozy, who plans to send an ambassador to the opposition stronghold of Benghazi. Libya may suspend ties with France, state television reported after the announcement.
The rebels also were promised a meeting with U.S. Secretary of State Hillary Clinton next week when she visits France, Egypt and Tunisia.
Sarkozy may propose to European leaders at a summit tomorrow that Qaddafi installations be bombed, Agence France- Presse reported, citing an unidentified person familiar with the plans. Targets could include command centers in Tripoli and military bases to the east and south, the agency said.
Casualties
More than 400 people have been killed and 2,000 wounded in fighting in eastern Libya since Feb. 17, a member of the insurgents’ provisional health committee told reporters yesterday in Benghazi. The official, Gebril Hewadi, said the dead include 350 civilians and 50 rebel fighters, according to regional hospitals. The number of people missing is still unknown, he said.North Atlantic Treaty Organization defense ministers sought to overcome differences about establishing a no-fly zone when they met today in Brussels. While countries such as the U.K. and France have urged NATO allies to consider the proposal, which would prevent Qaddafi’s forces from mounting air attacks on the rebels, the U.S. has been less enthusiastic, and Germany and other nations have expressed concern about the consequences.
“We don’t want to get sucked into a war in North Africa,” German Foreign Minister Guido Westerwelle told reporters in Brussels before a meeting of European Union foreign ministers.
Legal Basis
NATO needs a legal basis from the United Nations and the backing of Arab states before it could impose any no-fly zone, alliance Secretary General Anders Fogh Rasmussen told reporters in Brussels.Libya’s air defense system is “quite substantial” and is the second largest in the Middle East, Clapper said today in Washington before the Senate Armed Services Committee. He said Qaddafi’s forces have a logistical advantage over the rebels.
Burgess told the committee that the fighting has “reached a state of equilibrium where the initiative, if you will, may actually be on the regime side at this time.”
Sen. Joe Lieberman said in response that survival of Qaddafi’s regime “would be a very bad outcome.” The U.S. might help the rebels with such measures as a no-fly zone, jamming regime communications, giving intelligence to the rebels and “perhaps supplying them with weapons,” he said.
Somalia Scenario
Clapper said other possible outcomes include something like the “pre-Qaddafi, pre-king history of Libya” in which there are three semi-autonomous mini-states -- one based around Tripoli, one around rebel-controlled Benghazi and one in other tribal areas. “Or you could end up with a Somalia-like situation,” he added.Lieberman, a Connecticut independent, said the U.S. has an interest not only in the humanitarian crisis in Libya but also “we don’t want it to end up as a base like Somalia for anti- American Islamist terrorism.” He called for the Obama administration to follow France in recognizing the rebel’s opposition government.
Qaddafi’s son said Libya was freeing three Dutch marines who had been captured during an evacuation mission near the coastal city of Sirte last month.“We are sending them back home but we are still keeping their helicopter,” he said.
Oil Facilities
Mustafa Gheriani, media coordinator for the rebels in Benghazi, said yesterday that Qaddafi’s forces fired missiles against the oil pipeline that goes to Gulf of Sidra and against the Ras Lanuf port.Ras Lanuf has a tanker terminal that has exported 200,000 barrels a day, as well as Libya’s biggest refinery, with a capacity of 220,000 barrels a day, according to the International Energy Agency. The Sidra terminal exported 450,000 barrels a day as recently as January, according to the IEA. Together, the two ports account for 43 percent of exports in January, according to the IEA.
The Ras Lanuf refinery was shut and its employees fled because of the fighting, an official from the Libyan Emirates Oil Refining Co. said yesterday. He spoke before reports of a raid on the facility and calls to his office later weren’t answered.
The oil tanker Frankopan departed empty from Brega, another port on the Gulf of Sidra close to the center of the conflict, because there was no crude to collect, said Dragan Gacina, marketing manager at Zadar, Croatia-based Tankerska Plovidba, the vessel’s owner, by phone today.
Journalists Barred
Qaddafi’s government took Western journalists late yesterday to a stadium on the outskirts of Zawiyah where regime supporters waved flags amid fireworks, the AP said. Authorities refused to let the journalists visit the central square where insurgents had been resisting Qaddafi’s forces seeking to regain control of the town, the AP said. Zawiyah was the closest city to the capital, Tripoli, to fall under rebel control.The EU, U.S. and other countries have frozen the assets of Qaddafi and his associates held outside Libya. Germany has frozen Libyan bank assets worth “billions,” Economy Minister Rainer Bruederle said today. The EU is “in the process” of widening sanctions to include organizations controlled by Qaddafi as well as individuals, the bloc’s foreign policy chief, Catherine Ashton, said yesterday.
Regional Turmoil
The Libyan uprising followed popular protest movements that ousted Tunisian President Zine El Abidine Ben Ali and Egyptian President Hosni Mubarak. There have also been anti-government demonstrations across the region.Yemeni protesters today rejected a plan announced by President Ali Abdullah Saleh for a new constitution leading to an elected government, and insisted the president should quit immediately.
In Saudi Arabia, where protests are prohibited, Foreign Minister Saud al-Faisal called yesterday for “dialogue” to deal with the complaints of the Shiite minority, who mostly live in the oil-rich eastern part of the kingdom.
Gulf Cooperation Council countries, including Saudi Arabia, agreed to set up a fund worth more than $10 billion to help two of the group’s six members, Oman and Bahrain, Kuwait’s Foreign minister Sheikh Mohammad Al-Sabah said. In both countries, demonstrators calling for more democracy and higher living standards have been killed in clashes with security forces.
Copper in London Gains, Paring Worst Weekly Drop Since June, On Oil Prices
The benchmark three-month copper contract increased as much as 0.9 percent to $9,275 a metric ton and traded at $9,240 at 12:13 p.m. Singapore time. The contract for May delivery on the Shanghai Futures Exchange rose 0.7 percent to 69,730 yuan ($10,607) a ton.
Oil headed for a first weekly loss in four weeks, easing concern that sustained high oil prices triggered by unrest in the Middle East and North Africa may slow the economic recovery.
“The fact that oil prices came off a bit may help metals,” Ben Westmore, an analyst at National Australia Bank Ltd., said today by phone from Melbourne. “Copper looks well supported at current prices.”
Both Shanghai and LME copper futures are heading for weekly declines of more than 6 percent, the steepest drops since May and June, respectively. Investors and traders remained concerned about oil prices and a slowdown in copper imports into China, Westmore said. China is the world’s biggest user of copper. Bank AG said.
An oil-price increase of $10 to $110 a barrel will reduce copper consumption growth to 3.5 percent, freeing up about 120,000 tons of metal, according to Deutsche Bank AG analyst Daniel Brebner.
In February, China’s purchases of copper and products tumbled 35 percent from a month earlier to the lowest in more than two years, customs figures showed yesterday.
China’s consumer prices rose 4.9 percent in February from a year earlier, exceeding the government’s 2011 target for a fifth month. The advance was more than the 4.8 percent median forecast in a Bloomberg News survey of 22 economists. The world’s second- largest economy has a 4 percent inflation target for the full year.
Investors are concerned that monetary tightening to tame inflation may slow the Chinese economy as U.S. unemployment remains elevated and debt problems in Europe threaten growth.
“There are now grounds for caution,” Stephen Briggs, a London-based metals analyst at BNP Paribas, wrote in a report. “The geopolitical situation is uncertain and global interest rates are on the rise.”
At a briefing today in Beijing, Chinese central bank governor Zhou Xiaochuan said his monetary policy doesn’t only aim to control inflation, but also needs to target employment and growth.
U.S. applications for first-time unemployment benefits increased by 26,000 to 397,000 in the week ended March 5, Labor Department figures showed yesterday. Economists forecast claims would climb to 376,000, according to the median estimate in a Bloomberg News survey. The total number of people receiving benefits in the prior week fell to the lowest level since October 2008.
Aluminum in London dropped 0.2 percent to $2,582 a ton, zinc rose 0.6 percent to $2,300 a ton and lead climbed 1.2 percent to $2,459.75 a ton. Nickel gained 0.6 percent to $26,200 a ton, while tin added 1.3 percent to $29,800 a ton.
-- With assistance from Sophie Leung in Hong Kong and Agnieszka Troszkiewicz in London. Editors: Matthew Oakley, Jarrett Banks
Commodity Futures
Commodity Futures
Indexes
| INDEX NAME | VALUE | CHANGE | OPEN | HIGH | LOW | TIME |
|---|---|---|---|---|---|---|
 UBS Bloomberg CMCI | 1,703.21 | -22.45 | 1,720.17 | 1,720.56 | 1,690.29 | 03/10 |
 S&P GSCI | 707.19 | -8.77 | 719.46 | 719.73 | 699.86 | 03/10 |
 RJ/CRB Commodity | 354.45 | -5.78 | 356.95 | 357.42 | 352.02 | 03/10 |
 Rogers Intl | 4,168.61 | -59.69 | 4,229.10 | 4,229.14 | 4,137.19 | 17:55 |
Energy
| PRICE* | CHANGE | % CHANGE | TIME | |
|---|---|---|---|---|
| BRENT CRUDE FUTR (USD/bbl.) | 115.380 | -0.050 | -0.04% | 23:09 |
| GAS OIL FUT (ICE) (USD/MT) | 965.000 | 11.750 | 1.23% | 23:09 |
| HEATING OIL FUTR (USd/gal.) | 305.000 | 0.510 | 0.17% | 23:04 |
| NATURAL GAS FUTR (USD/MMBtu) | 3.828 | -0.002 | -0.05% | 23:04 |
| GASOLINE RBOB FUT (USd/gal.) | 302.950 | 0.990 | 0.33% | 22:43 |
| WTI CRUDE FUTURE (USD/bbl.) | 102.590 | -0.110 | -0.11% | 23:08 |
Agriculture
| PRICE* | CHANGE | % CHANGE | TIME | |
|---|---|---|---|---|
| CANOLA FUTR (WCE) (CAD/MT) | 569.100 | -0.800 | -0.14% | 21:55 |
| COCOA FUTURE - LI (GBP/MT) | 2,244.000 | -15.000 | -0.66% | 03/10 |
| COCOA FUTURE (USD/MT) | 3,445.000 | -82.000 | -2.32% | 03/10 |
| COFFEE 'C' FUTURE (USd/lb.) | 280.550 | -14.300 | -4.85% | 03/10 |
| CORN FUTURE (USd/bu.) | 682.000 | -0.750 | -0.11% | 23:01 |
| COTTON NO.2 FUTR (USd/lb.) | 202.020 | 1.040 | 0.52% | 23:04 |
| FCOJ-A FUTURE (USd/lb.) | 170.250 | -3.800 | -2.18% | 03/10 |
| WHEAT FUTURE(CBT) (USd/bu.) | 738.250 | -2.250 | -0.30% | 23:08 |
| WHEAT FUTURE(KCB) (USd/bu.) | 835.250 | -1.750 | -0.21% | 22:45 |
| SUGAR #11 (WORLD) (USd/lb.) | 28.710 | -1.710 | -5.62% | 03/10 |
| SOYBEAN FUTURE (USd/bu.) | 1,347.250 | -8.250 | -0.61% | 23:06 |
| LUMBER FUTURE ($/1,000 board ft.) | 310.600 | 1.500 | 0.49% | 22:04 |
| OAT FUTURE (USd/bu.) | 358.000 | 2.000 | 0.56% | 22:27 |
| ROUGH RICE (CBOT) (USD/cwt) | 12.785 | -0.265 | -2.03% | 22:48 |
| SOYBEAN MEAL FUTR (USD/T.) | 352.500 | -1.200 | -0.34% | 22:57 |
| SOYBEAN OIL FUTR (USd/lb.) | 56.710 | -0.220 | -0.39% | 23:04 |
| WOOL FUTURE (SFE) (cents/kg) | 1,230.000 | -3.000 | -0.24% | 22:58 |
Industrial Metals
| PRICE* | CHANGE | % CHANGE | TIME | |
|---|---|---|---|---|
| COPPER FUTURE (USd/lb.) | 419.650 | -0.100 | -0.02% | 23:08 |
Precious Metals
| PRICE* | CHANGE | % CHANGE | TIME | ||
|---|---|---|---|---|---|
| GOLD 100 OZ FUTR (USD/t oz.) | 1,415.300 | 2.800 | 0.20% | 23:08 | |
| SILVER FUTURE (USD/t oz.) | 35.340 | 0.274 | 0.78% | 23:09 |
Livestock
| PRICE* | CHANGE | % CHANGE | TIME | |
|---|---|---|---|---|
| LIVE CATTLE FUTR (USd/lb.) | 116.900 | -0.050 | -0.04% | 23:04 |
| CATTLE FEEDER FUT (USd/lb.) | 137.325 | 0.050 | 0.04% | 21:27 |
| LEAN HOGS FUTURE (USd/lb.) | 100.850 | -0.600 | -0.59% | 23:05 |
Oil Heads for First Weekly Decline in Four on U.S. Economy, Demand Concern
Oil headed for its first weekly decline in four as signs of weakening demand in the U.S. countered concern that Libyan supply cuts will spread through the Middle East.Futures were little changed today and have dropped 1.6 percent this week after U.S. crude inventories increased more than projected and unemployment rose, bolstering concern the country’s economic recovery will slow. Saudi Arabian security forces yesterday broke up a rally a day before what anti- government demonstrators have called a “Day of Rage.”
“If we weren’t seeing this Middle Eastern conflict, the abundance of stocks in the U.S. would be having a significant damping effect on the price,” said Ben Westmore, a minerals and energy economist at National Australia Bank Ltd. in Melbourne. “We don’t see any sustained bounce-back in activity to above average growth rates for a long period of time in the U.S. It’s going to be a prolonged recovery.”
Crude for April delivery was at $102.68 a barrel, down 2 cents, in electronic trading on the New York Mercantile Exchange at 11:19 a.m. Singapore time. Yesterday, the contract declined $1.68, or 1.6 percent, to settle at $102.70. Prices are up 25 percent from a year earlier.
Brent oil for April settlement was at $115.38 a barrel, down 5 cents, on the London-based ICE Futures Europe exchange. The contract is down 0.5 percent this week, heading for its first decline in seven weeks.
U.S. Economy
Brent’s smaller decline this week has widened the premium to West Texas oil traded in New York. The difference between the European grade and U.S. futures was $12.63 a barrel today compared with $11.55 on March 4.Oil fell after the Labor Department said U.S. jobless claims increased by 26,000 to 397,000 last week from a three- year low. Economists forecast they would climb to 376,000, according to the median estimate in a Bloomberg survey.
An Energy Department report on March 9 showed crude stockpiles rose to the highest level since 2004 at Cushing, Oklahoma, the delivery point for West Texas Intermediate, the U.S. benchmark grade. Inventories increased 1.69 million barrels to 40.3 million last week, the highest since the department began gathering data at the hub.
Total U.S. crude stockpiles rose 2.52 million barrels to 348.9 million, the Energy Department report showed. A 1 million- barrel increase was projected, according to the median of 15 analyst responses in a Bloomberg News survey.
Libyan rebels under fire fled from a key oil hub on the Mediterranean coast, as Muammar Qaddafi’s son said government forces are mounting a full-scale attack and Western countries will lose if they support the uprising.
Output Cut
The violence has cut output in Libya by as much as 1 million barrels a day, according to Shokri Ghanem, chairman of state-run Libya’s National Oil Corp. The North African country pumped 1.39 million barrels a day in February, down from 1.59 million the previous month, based on Bloomberg estimates.
Regional unrest, which has so far toppled the leaders of Tunisia and Egypt, has reached Saudi Arabia’s neighbors Yemen, Oman and Bahrain, the island-kingdom where a Sunni family rules the majority Shiite population.
Libya’s production losses led banks including Goldman Sachs Group Inc., Bank of America Merrill Lynch, Citigroup Inc. and Commerzbank AG to raise their forecasts for crude prices this year.
Goldman increased it Brent and WTI estimates for the second quarter of the year by $4.50 a barrel to $105 and $99 respectively. The bank said a decline in OPEC’s spare capacity reduced its ability to make up for further disruptions.
The Organization of Petroleum Exporting Countries may reduce crude exports for a fifth time in the four weeks through March 26, according to tanker-tracker Oil Movements. Loadings may drop to 23.56 million barrels a day in the period, down 1.3 percent from 23.88 million barrels a day in the four weeks to Feb. 26, the Halifax, England-based company said yesterday.
S&P 500 Drops to Lowest Level Since January Amid Concern Economy Will Slow
Caterpillar Inc. (CAT) and United Technologies Corp. (UTX) slumped at least 2.3 percent, pacing declines among industrial companies. Exxon Mobil Corp. (XOM) and Chevron Corp. (CVX) dropped more than 2.9 percent as crude oil declined a third day amid investor concern that fuel demand will slow. General Motors Co. (GM) decreased 2.6 percent after the largest U.S. automaker said Chief Financial Officer Chris Liddell will leave the company next month.
The S&P 500 retreated 1.9 percent to 1,295.11 at 4 p.m. in New York. The Dow Jones Industrial Average decreased 228.48 points, or 1.9 percent, to 11,984.61 for the biggest decline since Aug. 11. The Stoxx Europe 600 Index tumbled 1.2 percent as Spain’s credit rating was downgraded by Moody’s Investors Service. Crude oil fell 1.6 percent to $102.70 a barrel.
“There are so many uncertainties that it’s hard to want to bid up this market,” said James Paulsen, chief investment strategist at Minneapolis-based Wells Capital Management, which oversees about $340 billion. “On top of claims popping back up, there’s worsening in the trade deficit at a time when the emerging world is slowing down and the Middle East crisis creates an unpredictable environment for oil. To make matters worse, Spain gets downgraded, which is an indication that the European crisis may be far from being put to bed.”
Middle East Turmoil
The S&P 500 has fallen 3.6 percent from this year’s highest level on Feb. 18 as oil surged 19 percent amid unrest in Libya and the Middle East. The benchmark for U.S. equities has rallied 91 percent from its bear-market low on March 9, 2009, amid government stimulus measures and as corporate earnings beat analysts’ estimates for eight straight quarters.The benchmark gauge for U.S. equities fell below its average price from the past 50 days, according to data compiled by Bloomberg. The 130 trading days that it remained above that level was the longest since early 2007, according to Bespoke Investment Group.
“Since the 50-day moving average is used by certain momentum-based traders, it would imply lower prices” if the index falls below, said Arthur Huprich, an analyst with Raymond James & Associates Inc. Losses may accelerate should the S&P 500 fall below the Feb. 24 intraday low of 1,294.26, he said.
Jobless Claims Rise
Stock futures fell before the open of exchanges as the Labor Department said applications for first-time unemployment benefits rose by 26,000 to 397,000 in the week ended March 5. Economists forecast claims would climb to 376,000, according to the median estimate in a Bloomberg News survey. Separately, the Commerce Department said the trade deficit in goods and services rose 15 percent to $46.3 billion in January as a surge in imports led by costlier oil overshadowed record exports.The Bloomberg Consumer Comfort Index dropped to minus 44.5 in the period through March 6 from the prior week’s minus 39.7, which was close to the best level since 2008. Sentiment suffered the most among respondents who lacked a full-time job or any employment and those earning less than $50,000 a year.
The U.S. government, facing a record annual fiscal shortfall and a congressional impasse over financing, posted the largest monthly deficit ever in February, reflecting increased spending. The gap totaled $222.5 billion last month compared with a $220.9 billion shortfall in February 2010, according to the Treasury Department’s monthly budget statement released today in Washington.
China, Spain
Earlier losses in U.S. futures also followed China’s unexpected $7.3 billion trade deficit, the biggest in seven years, buttressing the government’s case against U.S. arguments for faster gains in the yuan. European shares fell as Spain’s rating was cut to Aa2 by Moody’s, which said the cost of shoring up the banking industry will top government estimates.
“There’s just a lot going on,” said Tommy Huie, who oversees about $33 billion as president and chief investment officer of M&I Investment Management in Milwaukee. “I don’t think anyone is willing to commit large positions at this point. Investors will take a wait-and-see approach over the next week or two to rethink their strategy.”
Stocks of companies that are tied to economic growth, including commodity producers and technology firms, posted some of the biggest declines in the S&P 500. The Morgan Stanley Cyclical Index slumped 2.1 percent as 29 of its 30 stocks fell.
Caterpillar, the world’s largest maker of construction equipment, dropped 3.9 percent to $98.39. United Technologies, the maker of Pratt & Whitney jet engines, retreated 2.4 percent to $80.92.
Energy Shares Slump
Energy shares had the biggest decline in the S&P 500 within 10 industries, falling 3.6 percent. Exxon dropped 3.6 percent to $81.38. Chevron retreated 3 percent to $99.08.
General Motors declined 2.6 percent to $31.42. The automaker said Vice Chairman and Chief Financial Officer Chris Liddell will leave the company April 1. Dan Ammann, 38, will succeed Liddell as chief financial officer. Amman had been treasurer and a corporate vice president.
The Bloomberg U.S. Airlines Index of 12 stocks rallied 1.8 percent as concern about higher energy costs eased. JetBlue Airways Corp. (JBLU) gained 4.2 percent to $6. Delta Air Lines Inc. (DAL) advanced 2.8 percent to $11.18.
Green Mountain Coffee Roasters Inc. (GMCR) surged a record 41 percent to $61.71 after agreeing to distribute Starbucks Corp. (SBUX)’s coffee and teas for its single-serve Keurig brewing systems. Starbucks climbed 9.9 percent to $37.97 for the biggest increase in the S&P 500.
H&R Block Rallies
H&R Block Inc. (HRB) advanced 4.3 percent to $15.84. The biggest U.S. tax preparer posted a third-quarter profit of 6 cents a share excluding some items, beating the average analyst estimate of 5 cents, according to Bloomberg data.
The stock market’s retreat from a February peak may be just as short as its dip in November, Dahlman Rose & Co. said. The gauge rebounded at the technical support level on its General Overview Charts both weeks since the 32-month high on Feb. 18, data from Bloomberg and Dahlman Rose show. In November, after the index recovered at the same support level for three weeks, the S&P 500 had its best December return since 1991 and rose for the next two months.
Rick Bensignor, chief market strategist at Dahlman Rose, said the resilience in the stock market may force him to abandon his “overly cautious stance,” including an estimate that the S&P 500 may drop as low as 1,230. Should the S&P 500 close tomorrow at or near this week’s high, the market may be headed for further gains, he said.
“Buying stocks is still en vogue for most, and while sellers are chompin’ at the bit for some solid reason to hit the red button, they haven’t yet found due cause,” Bensignor wrote in a note yesterday. “Should we go out near the highs of the week this Friday, I suspect we need to think that another leg up is coming, and one we’d not want to fight.”
Nikkei
Last Update:
-1.010%
VALUE: 10,328.990 JPY
NIKKEI 225 (NKY:IND)
Snapshot
| Summary | One-Year Chart INTERACTIVE CHART | ||
|---|---|---|---|
| Value | 10,328.99 |  | |
| Change | -105.390 (-1.010%) | ||
| Open | 10,298.64 | ||
| High | 10,378.55 | ||
| Low | 10,298.64 | ||
Last Update:
-0.743%
VALUE: 23,439.380 HKD
HANG SENG INDEX (HSI:IND)
| Summary | One-Year Chart INTERACTIVE CHART | ||
|---|---|---|---|
| Value | 23,439.38 |  | |
| Change | -175.510 (-0.743%) | ||
| Open | 23,437.50 | ||
| High | 23,514.73 | ||
| Low | 23,360.00 | ||
Asian markets
Honda Motor Co., the Japanese carmaker that gets about 44 percent of sales in North America, dropped 2.1 percent in Tokyo. Daelim Industrial Co., which gets 22 percent of sales from the Middle East, led South Korean construction companies lower after police broke up a protest in Saudi Arabia yesterday. BHP Billiton Ltd., the world’s largest mining company, lost 0.8 percent in Sydney after copper futures declined.
“The situation in the Middle East provided a trigger for the market correction and now we’re seeing renewed concerns about European debt, and there’s ongoing worries about monetary tightening in Asia,” Shane Oliver, head of investment strategy in Sydney at AMP Capital Investors Ltd., which manages about $93 billion, said on Bloomberg Television. “All of these concerns are combining and making investors somewhat nervous.”
The MSCI Asia Pacific Index fell 1 percent to 134.84 as of 12:32 p.m. in Tokyo, with about seven times as many shares declining as advancing. The gauge is set for a 3.3 percent drop this week and is on course for its lowest close since Dec. 21.
The index climbed 1.9 percent last week as better-than- estimated economic data from South Korea to the U.S. boosted confidence in a global recovery, overcoming concern that Middle East unrest will drive oil prices higher and slow growth.
Japan’s Nikkei 225 (NKY) Stock Average decreased 0.8 percent, South Korea’s Kospi Index sank 1.5 percent and Australia’s S&P/ASX 200 Index declined 1.3 percent. Hong Kong’s Hang Seng Index slipped 1 percent.
China Inflation
China’s Shanghai Composite Index dropped 0.3 percent as government data showed the nation’s consumer prices rose 4.9 percent in February from a year earlier, exceeding the government’s 2011 target for a fifth month.
Futures on the Standard & Poor’s 500 Index gained 0.2 percent today. The index tumbled 1.9 percent yesterday in New York after the U.S. Labor Department said applications for first-time unemployment benefits rose by 26,000 to 397,000 in the week ended March 5, more than the median estimate of 376,000 forecast by economists in a Bloomberg News survey.
The U.S. Commerce Department separately said the deficit in goods and services increased 15 percent to $46.3 billion in January as a surge in imports led by costlier crude oil overshadowed record exports.
Exporters Decline
Honda Motor, which counts North America as its biggest market, slipped 2.1 percent to 3,330 yen in Tokyo. Toyota Motor Corp., the world’s largest carmaker, dropped 1.4 percent to 3,600 yen. Li & Fung Ltd. (494), the No. 1 supplier to retailers including Wal-Mart Stores Inc., fell 1.9 percent to HK$44.70 in Hong Kong.
The MSCI Asia Pacific Index has almost doubled in the past two years. It sank to an eight-year low on March 9, 2009, following the bankruptcy filing of Lehman Brothers Holdings Inc. in September 2008.
The gauge briefly extended declines yesterday afternoon after Moody’s Investors Service cut Spain’s credit rating, saying the cost of shoring up the banking industry will eclipse government estimates.
“After a period of optimism, there are now all of these concerns,” said Juichi Wako, a senior strategist at Tokyo-based Nomura Holdings Inc.
‘Lingering Uncertainties’
Crude oil for April delivery declined 1.6 percent to settle at $102.70 a barrel in New York yesterday, after falling as much as 3.6 percent earlier. Oil pared losses after police in Saudi Arabia, the Middle East’s biggest producer of crude, reportedly opened fire at a rally in the east of the country.Daelim Industrial slumped 5.2 percent to 100,500 in Seoul. Hyundai Engineering & Construction Co., which counts the Middle East as its biggest market outside of South Korea, dropped 3.4 percent to 76,100 won. GS Engineering & Construction Corp. declined 4.3 percent to 101,500 won.
South Korean builders won $47.25 billion of orders from the Middle East last year, according to the Seoul-based Korea Trade- Investment Promotion Agency.
“Some news flow from Saudi are chilling sentiment toward builders again,” said Lee Jin Woo, a fund manager in Seoul at KTB Asset Management Co., which manages about $10 billion in assets. “Uncertainties over the situation in the Middle East may linger for a while.”
Convertible Bonds
Gauges of consumer-discretionary companies and raw-material producers led declines among the MSCI Asia Pacific Index’s 10 industry groups, all of which dropped.BHP Billiton slid 1.5 percent to A$43.98 in Sydney. Rio Tinto Group, the world’s second-biggest mining company, declined 1.8 percent to A$79.01. Jiangxi Copper Co., China’s No. 1 producer of the metal, lost 0.9 percent in Hong Kong.
The London Metal Exchange Index of six metals including copper and aluminum slid 0.4 percent yesterday, falling for a second day to the lowest level since Jan. 26.
IHI Corp., a Japanese heavy-machinery maker, slumped 5.2 percent to 201 yen in Tokyo after saying it plans to sell 23 billion yen ($278 million) of five-year convertible bonds to overseas investors.
CapitaMall Trust (CT), Singapore’s biggest retail property trust, sank 2.2 percent to S$1.79 after the company increased the size of its convertible bond sale to S$250 million ($197 million) from S$200 million.
The MSCI Asia Pacific Index fell 1.1 percent this year through yesterday, compared with gains of 3 percent by the S&P 500 and 0.8 percent by the Stoxx Europe 600 Index. Shares in the Asian benchmark were valued at 13.9 times estimated earnings on average as of the last close, compared with 13.4 times for the S&P 500 and 11.1 times for the Stoxx 600.
Business Highlights from US
Still lacking the confidence to spend at normal levels, businesses have stockpiled nearly $1.9 trillion in cash, a record, the government said Thursday. Cash now accounts for 13 percent of corporate assets, the highest share since 1984. Economists say the surest way to reduce unemployment would be for companies to spend more of that cash to expand and hire.
The same report, based on data from the last three months of last year, showed households are further rebuilding the wealth they lost in the recession. Americans' net worth grew 3.8 percent, mostly thanks to the rising stock market.
Greater household wealth generally leads Americans to spend more. They increased their spending in the October-December quarter at the fastest pace since 2006. Household net worth came to $56.8 trillion at the end of 2010, even though the value of real-estate holdings fell 1.6 percent, according to the Fed. Last quarter's gain was faster than the 2.6 percent gain in the previous quarter.
But companies are still waiting for signs that the economy and their own businesses are strengthening enough to justify spending aggressively again.
___
Higher oil prices threaten global economy
WASHINGTON (AP) — Higher oil prices are slowing global economic growth, and the impact is likely to spread in coming months.
Oil prices helped raise the U.S. trade deficit to a seven-month high in January, when crude prices were $87.50 a barrel. Oil is now trading at more than $100 a barrel, suggesting the gap will widen in coming months. Even fast-growing China isn't immune — higher oil prices contributed to a rare trade deficit there in February.
Pricier oil dampens consumer spending and that cuts into economic growth. Surging oil prices can also stir up inflation fears, triggering higher interest rates that cut into household and business spending.
The impact is visible in bold numbers each morning on gas station marquees across the United States. Pump prices have risen 13 percent in the past month to a national average of $3.53 a gallon, according to AAA, Wright Express and Oil Price Information Service.
Airlines have also been rapidly raising their fares to offset higher fuel costs. American Airlines said Thursday it is increasing its base fares by $10, the seventh price hike this year by U.S. airlines.
___
GM chief financial officer resigns unexpectedly
DETROIT (AP) — The chief financial officer who guided General Motors Co. to its first profitable year since 2004 and led its successful return to the stock market is leaving after being passed over for the top job.
Chris Liddell will step down on April 1 after just 15 months at GM. He'll be replaced by Treasurer Dan Ammann, a former Wall Street banker, the company said in a surprise announcement on Thursday.
Liddell, 52, a former CFO at Microsoft Corp., was once considered a candidate to succeed Chief Executive Ed Whitacre. But GM's board instead picked current Chairman and CEO Dan Akerson when Whitacre made a surprise exit in August.
During a hastily arranged conference call with reporters, Liddell said he had no job lined up, but doesn't want to be a chief financial officer any longer. He said he achieved his goals of pulling off GM's IPO, fixing its accounting problems and getting the company back on sound financial footing.
___
Unemployment rate falls in 24 states, rises in 10
WASHINGTON (AP) — The unemployment rate fell or held steady in 40 states in January, the latest sign that hiring is strengthening throughout the country.
The Labor Department said Thursday that the unemployment rate fell in 24 states, the most in seven months, and remained the same in 16. The unemployment rate rose in only 10 states. In December, the rate fell in 15 states and rose in 20.
Employers added to their payrolls in 35 states in January, up from only 15 in the previous month. That's the most to report higher payrolls since October.
Nationwide, employers added 63,000 net jobs in January, and the unemployment rate fell sharply to 9 percent from 9.4 percent. The rate ticked down last month to 8.9 percent and employers added 192,000 net jobs, the most in nearly a year.
___
More people sought unemployment aid last week
WASHINGTON (AP) — The number of people seeking unemployment benefits rose last week. But the rise comes after applications hit their lowest level in nearly three years, and economists expect further declines as the economy improves.
Applications increased by 26,000 to a seasonally adjusted 397,000 during the week ended March 5, the Labor Department said Thursday.
The latest report covers the week after the Presidents' Day holiday, when many government offices were closed. Applications usually rise in weeks following holiday-shortened weeks.
Applications below 425,000 signal modest job growth. But they need to fall consistently below 375,000 to signal a sustained decline in the unemployment rate. Unemployment benefit applications peaked during the recession at 651,000.
Economists were encouraged that claims remained below 400,000 for the third straight week.
___
February federal budget deficit sets record
WASHINGTON (AP) — The government ran the largest-ever budget deficit for a single month in February. The shortfall kept this year's annual deficit on pace to end as the biggest in U.S. history. The widening deficit reflects the impact of the tax-cut package President Barack Obama and congressional Republicans brokered in December.
As a result, the nonpartisan Congressional Budget Office in January raised its estimate for the annual deficit from $1.1 trillion to $1.5 trillion. It said the tax cuts would add $400 billion to this year's gap. The budget year ends Sept. 30. The tax-cut package extended income tax cuts, reduced workers' Social Security taxes, extended unemployment benefits and accelerated business tax write-offs, among other steps.
February's deficit of $222.5 billion eclipsed last February's previous record by nearly $2 billion. The full-year deficit would exceed 2009's record deficit of $1.41 trillion. And it would mark the third straight year of $1-trillion-plus deficits.
It's unusual for an economy to be running record-high deficits this far into a recovery. The recession that began in December 2007 ended in June 2009. The problem was that the financial crisis and the recession that followed fueled explosive deficit growth.
___
Rate on 30-year mortgage ticks up to 4.88 pct.
WASHINGTON (AP) — Fixed mortgage rates were relatively flat this week, with the 30-year loan just under 5 percent.
Freddie Mac says the average rate on a 30-year fixed mortgage ticked up to 4.88 percent from 4.87 percent the previous week. It hit a 40-year low of 4.17 percent in November.
The average rate on the 15-year fixed home loan stayed steady at 4.15 percent from the previous week. It reached 3.57 percent in November, the lowest level on records dating back to 1991.
___
Wal-Mart expands online order pickup program
NEW YORK — As competition grows from Amazon.com, Wal-Mart is battling back by expanding a program offering the convenience of shopping online along with same-day gratification. The world's largest retailer is expanding its service that lets shoppers pick up online orders at stores to all of its 3,600-plus locations. It's partly a bid to win back consumers who've gone elsewhere for convenience.
The program appeals to shoppers who want to save time on shopping trips, said Steve Nave, senior vice president and general manager of Walmart.com. Shoppers also don't have to wait several days for shipping — or pay for it — and get to shop in the peace and quiet of home.
Wal-Mart Stores Inc., the world's largest retailer, previously offered the service on about 2,000 items in less than a quarter of its stores. Now it will apply 40,000 items, including baby items, toys, electronics, video games and appliances. Groceries are not part of the program.
___
By The Associated Press
Weak economic news from China, the U.S. and Spain combined with a slump in oil companies sent stocks sharply lower Thursday. The Dow Jones industrial average had its biggest one-day drop since August.
Investors were jarred when China reported a surprise trade deficit. China's exports fell in February as businesses closed for the weeklong Lunar New Year holiday, but imports of higher-priced oil and other goods jumped, widening the country's deficit to $7.3 billion.
Moody's downgraded Spain's debt, re-igniting fears about Europe's debt crisis. In the U.S., the government reported that new applications for unemployment benefits rose more than expected last week.
The Dow Jones industrial average fell 228.48 points, or 1.9 percent, to close at 11,984.61. McDonald's Corp. was the only stock in the Dow 30 that rose.
The Standard & Poor's 500 index fell 24.91, or 1.9 percent, to 1,295.11. The Dow and S&P 500 are still up 3 percent since the start of the year.
The Nasdaq composite fell 50.70, or 1.8 percent, to 2,701.02.
Benchmark West Texas Intermediate for April delivery eventually settled down $1.68, or 1.6 percent, to $102.70 per barrel on the New York Mercantile Exchange.
In London, Brent crude lost 51 cents to settle at $115.43 per barrel on the ICE Futures Exchange.
Natural gas fell 10 cents to settle at $3.83 per 1,000 cubic feet after the government said U.S. supplies are still higher than last year despite a drop in price. U.S. inventories have been growing as new technologies allow companies to tap underground shale deposits.
In other Nymex trading for April contracts, heating oil fell 2.58 cents to settle at $3.0449 per gallon and gasoline dropped less than a penny to settle at $3.0196 per gallon.
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