China and India lose their appeal for investors on inflation fears

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Fund managers are still super-bullish on Russia, betting that the energy boom has life yet. A net 62pc are overweight oil and gas shares. The most hated trio are travel and leisure (-66), banks (-62) and property (-60).

Karen Olney, Merrill’s European equity strategist, said oil is nearing its cycle peak. “Is the trade too crowded? Probably. As long as fundamentals remain strong, we retain our overweight stance,” she said.

“The burning question is when to sell oil companies and move back to banks.

“We resist the temptation. The time is nearer when inflation rolls over, towards the end of this year and certainly into 2009.”

A record number (net 29pc) are now underweight on European equities; many have switched into cash as they wait for the European Central Bank to inflict punishment – ever more likely after eurozone inflation reached an all-time high of 3.7pc in May.

The ECB’s chief economist, Jurgen Stark, said yesterday that the price spike was a “cause for alarm”.

Mr Bowers said Europe is now facing a triple whammy as the downturn in global export markets combines with a strong euro and a monetary squeeze.

“Eurozone retail sales have been worse than in the US on a year-on-year basis and eurozone GDP growth has also been worse,” he said. “If you look at Spain and Italy, and even France, they are very weak.

“The Fed has eased dramatically, but the ECB hasn’t eased at all. It intends to tighten regardless of the consequences on growth. This is what is eating away at confidence in Europe,” he said.

Merrill Lynch said fund managers were belatedly adapting to a global inflation shock that poses a serious danger to asset prices, and risks setting off “civil protest” in Argentina, Indonesia, South Africa and the Gulf states.

As the new story unfolds, America is coming back into favour, emerging as a sort of safe haven in a fast-changing world where trusted institutions command a premium. Investors are quietly rotating back into Wall Street – despite a chorus of pessimists. A net 23pc are overweight US equities, the highest since August 2001.

The long awaited “decoupling” has begun.

The United States looks like the winner after all.

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Iran stops using U.S. dollar in oil transactions

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ALI AKBAR DAREINI, The Associated Press

April 30, 2008 at 12:25 PM EDT

TEHRAN – Iran has stopped conducting oil transactions in U.S. dollars, an official said Wednesday, a concerted attempt to reduce reliance on Washington at a time of tension over Tehran’s nuclear program and suspected involvement in Iraq.

Iran, OPEC’s second-largest producer, has dramatically reduced dependence on the dollar during the past year in the face of increasing U.S. pressure on its financial system and the fall in the value of the American currency.

World markets price oil in U.S. dollars. Its depreciation has concerned producers because it has contributed to rising crude oil prices and has eroded the value of their dollar reserves.

“The dollar has totally been removed from Iran’s oil transactions,” Hojjatollah Ghanimifard, a top Oil Ministry official, told state-run television Wednesday. “We have agreed with all of our crude oil customers to do our transactions in non-dollar currencies.”

At a summit last year in Saudi Arabia, Iranian President Mahmoud Ahmadinejad called the depreciating dollar a “worthless piece of paper.”

Iran put pressure on other Organization of Petroleum Exporting Countries members at the meeting to price oil in a basket of currencies. But it has not been able to generate support from fellow members – many of whom, including Saudi Arabia, are staunch U.S. allies.

Iran has a tense relationship with the U.S., which has accused Tehran of using its nuclear program as a cover for weapons development and providing support to Shiite militants in Iraq who are killing American troops. Iran has denied the allegations.

Iranian oil officials have said previously that they were shifting oil sales out of the dollar into other currencies, but Mr. Ghanimifard indicated Wednesday that all of Iran’s oil transactions were now conducted in either euros or yen.

“In Europe, Iran’s oil is sold in euros, but both euros and yen are paid for Iranian crude in Asia,” he said.

Iran’s central bank also has been reducing its foreign reserves denominated in U.S. dollars, motivated by the falling value of the greenback and U.S. attempts to make it difficult for Iran to conduct dollar transactions.

U.S. banks are prohibited from conducting business directly with Iran, and many European banks have curbed their dealings with the country over the past year under pressure from Washington.

However, the U.S. has been wary of targeting Iran’s oil industry directly, apparently worried that such a move could drive up crude prices that are already near record levels.

Iranian analysts say Tehran can withstand U.S. pressure as long as it can continue its oil and gas sales, which constitute most of the country’s $80 billion in exports.

The cost of food: facts and figures

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Explore the facts and figures behind the rising price of food across the globe.

The World Bank has announced emergency measures to tackle rising food prices around the world.

World Bank head Robert Zoellick warned that 100 million people in poor countries could be pushed deeper into poverty by spiralling prices.

The crisis has sparked recent food riots in several countries including Haiti, the Philippines and Egypt.

The World Bank endorsed Mr Zoellick’s “new deal” action plan for a long-term boost to agricultural production.

Emergency help would include an additional $10m (£5m) to Haiti, where several people were killed in food riots last week, and a doubling of agricultural loans to African farmers.

Starvation risk

Mr Zoellick’s proposals were endorsed by the World Bank’s steering committee of finance and development ministers at a meeting in Washington.

We have to put our money where our mouth is now so that we can put food into hungry mouths
Robert Zoellick
World Bank head

The World Bank and its sister organisation, the IMF, have held a weekend of meetings that addressed rising food and energy prices as well as the credit crisis upsetting global financial markets.

The leader of the International Monetary Fund last week said hundreds of thousands of people were at risk of starvation because of food shortages.

Prices have risen sharply in recent months, driven by increased demand, poor weather in some countries that has ruined crops and reduced production area, thanks to an increase in the use of land to grow crops for transport fuels.

The price of staple crops such as wheat, rice and corn have all risen, leading to an increase in overall food prices of 83% in the last three years, the World Bank has said.

GLOBAL FOOD PRICE RISES
Wheat: 130%
Soya: 87%
Rice: 74%
Corn: 31%
Time: Year to March 2008
Source: Bloomberg

The sharp rises have led to protests and unrest in many countries, including Egypt, Ivory Coast, Ethiopia, the Philippines and Indonesia.

In Haiti, protests last week turned violent, leading to the deaths of five people and the fall of the government.

Restrictions on rice exports have been put in place in major producing countries such as India, China, Vietnam and Egypt.

Importers such as Bangladesh, the Philippines and Afghanistan have been hit hard.

Rich urged to act

“We have to put our money where our mouth is now so that we can put food into hungry mouths,” Mr Zoellick said. “It’s as stark as that.”

He called for more aid to provide food to needy people in poor countries and help for small farmers. He said the World Bank was working to provide money for seeds for planting in the new season.

He also urged wealthy donor countries to quickly fill the World Food Programme’s estimated $500m (£250m) funding shortfall.

Mr Zoellick’s “New Deal for Global Food Policy” also seeks to boost agricultural policy in poor countries in the longer-term.

On Saturday, the head of the IMF, Dominique Strauss-Kahn, warned of mass starvation and other dire consequences if food prices continued to rise sharply.

“As we know, learning from the past, those kind of questions sometimes end in war,” he said.

He said the problem could lead to trade imbalances that may eventually affect developed nations, “so it is not only a humanitarian question”.

Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/1/hi/business/7344892.stm

Published: 2008/04/14 11:02:54 GMT


Iran, China and Russia vs. America, Israel – Who will Win?

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A Three Step Plan to Usher in the Amero

1. Create a Financial Problemsub-prime mortgage fiasco, housing market collapse, recession, trillions of dollars in debt, uncontrolled military spending, federal reserve private banking monopoly engineered economics, Iran and Russia to form an OPEC like cartel to sell gas to China and India with trading done and prices pegged to the Russian Ruble, Neo-Cons boosting of impending financial crisis, keep dumping Chinese made goods in the usa and further erode the manufacturing base

2. Predictable Reactionpeople go nuts, economy tanks, stock markets lose confidence, everyone starts to dump the dollar, governments intervene to prevent the run on the dollar and the banks, china iran and russia come out stronger and portrayed as the cause of the problem and the enemy

3. Offer the Solution – American government offers the solution to solve the problem, The North American Union is formally introduced to the half asleep Americans, Amero replaces the dollar as the single north American wide currency, American economy now to fully exploit the cheap Mexican labor plus the cheap Canadian natural resources this solution offered as the perfect new troika, everything going according to plan, neo-cons further their agenda to eventually replace the Amero with the cashless micro-chip based society where rights and freedoms are things of the past

It’s the classic Problem, Reaction, Solution – the Hegelian model for a new world order and new one world government run out of Jerusalem.

    UNICEF Awards 2007 Photos of the Year

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    UNICEF Awards 2007 Photos of the Year

    The United Nation’s Children’s Fund recognized a handful of photographers with honors in their annual Photo of the Year contest. From Afghanistan to the Phillipines, their work exposes horrid conditions facing some of the world’s children.

    The image is startling — a 40-year-old groom sitting beside his 11-year-old future bride. Photographer Stephanie Sinclair, who took the photo last year in Afghanistan, asked the pre-teenage bride what she felt on the day of her engagement.

    “Nothing,” said the girl, according to Sinclair. “I do not know this man. What am I supposed to feel?”

    The sobering image and the story behind it brought Sinclair top honors in the annual Photo of the Year contest sponsored by the United Nations Children’s Fund (UNICEF).Awards were distributed to first through third place winners as well as eight honorable mentions. International judges considered 1,230 entries from 142 photographers in 31 countries.

    Sinclair, an American photographer, produced her winning photograph as part of a series of pictures she took about child marriages between 2005 and 2007 in Afghanistan, Ethiopia, and Nepal. UNICEF estimates that about 50 percent of Afghani women are married before they turn 18.

    Second place honors went to GMB Akash, of Bangladesh, whose winning photo shows a 12 year-old boy toiling in a Bangladeshi brickyard. UNICEF studies conclude that 4.7 million children between five and 14 years of age are involved in child labor in that country.

    The third-place photograph was taken by German photographer Hartmut Schwarzbach. His picture depicts a nine-year-old girl jumping in glee on her birthday in the midst of a smoldering garbage dump outside of Manila.

    Honorable Mentions
    In 2007 honorable mentions were given to the following photographers:

    • Jonathan Torgovnik, Israel, Newsweek Magazin
    • Hatem Moussa, Palestine, Associated Press (AP)
    • Wolfram Hahn, Germany, Student FH Potsdam
    • Renée C. Byer, USA, The Sacramento Bee
    • Nir Elias, Israel, Reuters
    • Finbarr O`Reilly, UK & Canada, Reuters
    • Musa Sadulayew, Chechenya, Associated Press (AP)
    • Steven Achiam, Denmark, Student, Danish School of Journalism

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    1st Place

    This sobering image, showing a 40-year-old groom sitting beside his 11-year-old future bride in Afghanistan, brought Stephanie Sinclair top honors in the annual Photo of the Year contest sponsored by the United Nations Children’s Fund (UNICEF).

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    2nd Place

    Second-place honors went to GMB Akash, of Bangladesh, whose winning photo shows a 12-year-old boy toiling in a Bangladeshi brickyard. UNICEF studies conclude that 4.7 million children between five and 14 years of age are involved in child labor in that country.

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    3rd Place

    The third-place photograph was taken by German photographer Hartmut Schwarzbach. His picture depicts a nine-year-old girl jumping in glee on her birthday in the midst of a smoldering garbage dump outside of Manila.

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    “A Mother’s Journey”: The American photographer Renee C. Byer took this picture as part of a series about a single mother with five children and a son suffering from terminal cancer. He died in 2006.

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    Finbarr O’Reilly recieved an honorable mention for his photo “A House of Hope,” an image of Lopez Vidal, right, and Aron Masahuka, both afflicted with polio, languishing in an ill-equipped hospital in Kinshasa, Democratic Republic of Congo.

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    Wolfram Hahn made a series of photos titled “A Disenchanted Playroom” to accompany a study about the television-viewing habits of German children.

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    Hatem Moussa won an honorable mention for “Life in Gaza”: Palestinian children were rushed from a car into a hospital after their homes were hit by Israeli shelling in the northern Gaza Strip town of Beit Lahiya in April, 2006. An eight-year-old child was killed in the attack and 13 other children were injured.

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    Joseline Ingabire, 37, an HIV-positive Rwandan woman, is pictured with her daughter Leah Batamuliza, 11. This photo by Jonathon Torgovnik accompanied a story in Newsweek magazine about women who were raped during the Rwandan civil war and their children today.

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    Musa Sadulayew made this photo as a part of a series called “Chechnya’s Forgotten Children.”

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    Boys hang from a bar for five minutes as part of a physical training exercise at the Gymnastics Hall of the Shanghai University of Sports. The photo was part of Nir Elias’s series “Pain Threshold — Sports Education in China.”

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    “Sumo Boys in Japan”: Steven Achiam took a series of pictures depicting life in the Hiragaya sumo club, where boys train until they have beaten a strong opponent 10 times.

    More Chinese Toys Recalled

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    This is really getting out of hand. Someone has to stop these Chinese exporters and their substandard products.

    recalled chinese toys

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    On a more serious note…

    RC2 Corp. is recalling about 1.5 million “Thomas & Friends” wooden railway toys. Surface paints on the recalled products contain lead. Lead is toxic if ingested by young children and can cause adverse health effects.

    The recall involves wooden vehicles, buildings and other train set components for young children listed in the chart below. The front of the packaging has the logo ‘Thomas & Friends Wooden Railway’ on the upper left-hand corner. A manufacturing code may be located on the bottom of the product or inside the battery cover. Toys marked with codes containing ‘WJ’ or ‘AZ’ are not included in this recall.

    The railway toys were sold at toy stores and various retailers nationwide from January 2005 through June 2007 for between $10 and $70.

    Consumers should take the recalled toys away from young children immediately and contact RC2 Corp. for a replacement toy.

    Recalled Product Name
    Red James Engine & Red James’ # 5 Coal Tender
    Red Lights & Sounds James Engine & Red James’ #5 Lights & Sounds Coal Tender
    James with Team Colors Engine & James with Team Colors #5 Coal Tender
    Red Skarloey Engine
    Brown & Yellow Old Slow Coach
    Red Hook & Ladder Truck & Red Water Tanker Truck
    Red Musical Caboose
    Red Sodor Line Caboose
    Red Coal Car labeled ‘2006 Day Out With Thomas’ on the Side
    Red Baggage Car
    Red Holiday Caboose
    Red ‘Sodor Mail’ Car
    Red Fire Brigade Truck
    Red Fire Brigade Train
    Deluxe Sodor Fire Station
    Red Coal Car
    Yellow Box Car
    Red Stop Sign
    Yellow Railroad Crossing Sign
    Yellow ‘Sodor Cargo Company’ Cargo Piece
    Smelting Yard
    Ice Cream Factory


    Consumer Contact:
    For additional information, contact RC2 Corp. toll-free at (866) 725-4407 between 8 a.m. and 5 p.m. CT Monday through Thursday and between 8 a.m. and 11 a.m. CT Friday, or visit the firm’s Web site at recalls.rc2.com

    Links;

    Chinese Fried Rat or Was that Chicken?

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    This dish looks really familiar. I am going to stick to beef, next time.

     

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