Business Week

Tuesday, May 31

BP gets $1 bln settlement of good golf partners

11:08 PM partners, settlement No Comments

LONDON - BP has struck partner in the ausgefressene well, get one much to approximately $1 billion by a minority hopes to pursue it successfully other participating companies and reduce the Bill for the disaster cause.

BP PLC said on Thursday that MOEX offshore 2007 LLC, which pay a 10 percent interest on the Macondo had wells, to 1,065 billion, has agreed to settle all claims between the undertakings of the accident on the deepwater horizon rig.

The settlement agreed upon MOEX, a unit of Japanese trading house Mitsui & co., findings by the US Presidential Commission recognize, that the accident "the result of a series of separate risk factors, failures and outright errors by several parties and a number of causes."

He realized also results from the US Coast Guard, that "the Transocean's safety management systems and its deepwater horizon rig significant deficiencies, the them in preventing the accident ineffective."

Shares in BP closed 2.7% higher at 460 pence ($7.50) after analysts said that the deal puts pressure on BP the other minority shareholders, Anadarko, a similar deal to reach and leaves open rig operator Transocean, a combined assault on damages.

Evolution financial analyst Richard Griffith said success on the fronts of its estimate of the sum of BP which would reduce liabilities, which currently is 25-30 billion dollars.

"Critical Mitsui has BP joined, in the knowledge that the accident was the result of a number of risks and the actions of several parties," said Griffith. "Perhaps more clearly the wider recognition that Transocean's safety management systems on the rig were deficient, and where this might be is BP and its license partner Transocean liability for compensation, making the total size of the net to BP."

Jonathan Jackson, Director who shares to Killik & co., said he was "somewhat disappointed" by the size of the settlement, but the news was positive.

"It is the first time, which has also involved a company in which BP to help meet the costs of the accident connected and it seems to increase, clean water act would entail the probability, that the BP not gross negligence is found, a result, the much larger liability under the" Jackson said.

He added that BP could reach a global settlement, aggregated in a single offer liability for fines, damages and sanctions.

BP Friday said that it track, Texas-based Anadarko, that the well had a 25-percent interest to continue, based in the Switzerland of Transocean and cement contractor Halliburton, its share of the billions of dollars in cleanup costs, oil spill damage and pollution to pay fines.

MOEX submitted also cross claims against Transocean and Halliburton, the BP announced Friday "designed and pumped the unstable cement, the Presidential Commission found was a major cause of the accident."

However, said Transocean deepwater horizon rig was in "sound condition" and had passed inspection by the coast guard.

"As owner and operator of Macondo well, BP has clearly financial incentives for other parties assign blame, but his public position is through the body of evidence in this matter, does not support" the company said in a via e-Mail statement. "Government investigations have found rightly, that the incident of Macondo was caused by an error of cement into the well."

BP has booked already a 32.2 billion US-dollar charge to cover the long-term cost of the Gulf spill. It's $30 billion in assets by the end of the year means targeted support.

BP Chief Executive Bob Dudley said that Mitsui "large civic shows in behind its affiliate and a contribution to the bear the costs for this tragic accident."

"We call on the other parties involved in the Macondo well, the lead of follow the MOEX and Mitsui parties," he added in a statement.

Immediately the settlement of MOEX is paid $20 billion in the trust, which has set up BP to meet individual, business and Government claims in last year's oil spill.

MOEX had filed a lawsuit in New Orleans on 20 April anniversary of the Gulf spill, questions, a federal judge, it was not responsible for the damage and cleanup to declare costs resulting from the worst off-shore oil spill in U.S. history. MOEX along with Anadarko in sued BP, with two companies claim that London-based BP for the blow-out and the spill was responsible.

BP said that the payment of MOEX Friday was announced - to the detriment of its parent company, MOEX United States Corp. - no admission of liability by any party with regard to the accident. The companies are mutual claims against each other.

The news of the settlement London Group Investec coincided with a report from financial services calls for BP Board, the company into three separate groups of separation - focuses on the United States, United Kingdom, and emerging markets.

Investec said that BP worse has the market by 14 percent in dollar terms and 5 percent on the previous year.

"BP business model is broken, from our point of view" Investec analysts Stuart Joyner and Angus McPhail said in a note. "However, we think, you could again its reputation as the industry thought leader by the company in three parts."

The pair struck a unit of US in New York listed by BP US refining and gas exploration & production business. A separate exploration & production business could focus on UK and mature markets in London, the analysts said, with fast-growing units for developing countries to be listed in London and Mumbai/Hong Kong.

Administration: China not a currency manipulator

3:11 PM Administration, China, currency, manipulator No Comments

WASHINGTON-the Obama administration on Friday to cite China for manipulating its currency trade advantages against the United States to win rejected but the pace said the currency the increase against the dollar needs to be accelerated.

Noted the Treasury Department, that China has its currency against the dollar since June last year rise allows, but it said Beijing needs to make a more rapid progress. America's trade deficit with China hit a record high last year.

The Department statement came in a report, that it must submit to Congress every six months determines whether other countries edit their currencies. Manufacturer press was for China to be called. This could result in penalty tariffs on Chinese imports.

US manufacturers believe that China's currency against the dollar to as much as 40% undervalued. This makes Chinese were cheaper in the US market and American products more expensive in China.

China's trade deficit with the United States $273 billion taken in the last year the largest deficit, which the United States has ever had with any country. Critics claim that China will keep its currency it against the dollar as a way to an attack, which is more support at a time of high unemployment in the United States undervalued manipulate gained against unfair trade advantages.

The report found the Treasury Department, that currency to 5.1 percent in value against the dollar announced China since last June as Beijing has increased is, that it would again included, so that to appreciate its currency. The report said, upgrading a faster 9 percent on an annual basis different inflation rates between the two countries taking into account.

But private economists said that on the basis of trade China really much at all moved currency not given risen against the dollar, the dollar against many other currencies has fallen. For this reason, they claim that China probably will increase significantly surplus its global trade in this year.

Analysts said that Treasury call refusal China was not unexpected, but the decision will likely add fuel complaints that Washington needs to take a tougher approach in trade with China.

"The continuing high bilateral trade deficit, which is running the United States with China and a weak U.S. labor market to get China's monetary policy on the radar of US politicians for some time, be", said Eswar Prasad, a China expert at Cornell University.

Nicholas Lardy, an economist at the Peterson Institute for international economics, a Washington think tank, said that while China's trade surplus with the United States and the rest of the world shrank during the global recession, it is this year rise significantly add to the pressure on policy makers to do something.

For a response to the report, an official at the Chinese Embassy in Washington, said that China's currency, the renminbi in the value against the dollar has increased and he said that would continue.

"China will further accelerate the reform of the Renminbi exchange rate regime under the principles of independent decision making, controllability, and Graduality," Embassy spokesman Wang Baodong said.

The Obama administration and the Bush administration have quoted never Beijing report currency, believe that they more can be successful with arguments, that would be such a move in China's advantage.

The new report the point made by Treasury Secretary Timothy Geithner, would made a stronger Chinese currency Beijing to better control to enable rising inflationary pressures in China.

The new report was planned on April 15, but Geithner announced it would be delayed, to manage a give the opportunity to meet with the Chinese for the annual meetings of the US-China strategic and economic dialogue, which took place this year on May 9-10 in Washington.

Diluted field for new IMF Chief

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The International Monetary Fund on Friday said it nominations to replace Dominique Strauss-Kahn as Managing Director of Monday when accepted and hopes that the Select next head of the global lender by 30 June.

Shakour Shaalan, Dean a selection procedure largely Board of Directors adopted on the IMF Executive Board, which represents Egypt and a constituency of the countries from the Middle East, said of the 24-Member, which ensures that the selection in an "open wirdMerit based and transparent led"Kind and way.""

He said select candidates short listed and the next Managing Director of consensus.

Said former Turkish economy Minister Kemal Dervis on Friday, that he will not run. Britain's former Prime Minister Gordon Brown also said that he is not fishing the IMF Managing Director to replace that resigned in the midst of sexual abuse charges.

Brown, 60, was the Chief British Treasury for 10 years and has extensive experience in dealing with the IMF. However, Brown said Friday during a visit to Johannesburg, that he "makes a pitch for a job."

And Dervis said in a statement on the Wall Street Journal's website cited, that: "speculation about running the IMF in the Group of persons included has me with relevant experience." "But I have not and will not be a candidate."

With Brown and Dervis the race Christine Lagarde was hard-working Finance Minister France frank, as Europe's likely candidate for the IMF.

History: Sexueller 'Pirates' shuffling IMF for women

The IMF insists that his day-to-day business has not hurt, the departure of Strauss-Kahn but it is under pressure to find the billions of dollars of loans, which provides to stabilise world economy lead quickly to a body, a successor.

A new Chief would also closely from the seamy scandal to Strauss-Kahn, the this week to face charges in New York, which he tried, to stop rape maid hotel. He denies the charges and has vowed to prove his innocence.

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Strauss-Kahn, who resigned Wednesday, on Friday released from prison on bail, and in a hiding place on Wall Street where will he be under round-the-clock armed guard.

The IMF said Strauss-Kahn, commonly known in financial circles as DSK, a one-time severance payment of $250,000 would receive, but far less in the coming years of pension and related payments received Friday.

Chancellor to say all but approved LaGarde Angela Merkel on Friday, a press conference in Berlin: "mentioned under the name for the IMF following French Minister Christine Lagarde, is, I write up a review."

But diplomats said that some countries of the European Union in question whether the prestigious corporate lawyer, the first woman at the top of the IMF, which would be could be anointed, before a special court decides next month whether she studied in French proceedings should be provided.

A Reuters Economist poll 32 of 56 LaGarde thought most likely to succeed Strauss-Kahn was.

Chairman of the US law company Baker & McKenzie in Chicago, before she joined the French Government in 2005, she is a fluent English speaker and has experience of network load balancing the needs of rich and developing countries.

LaGarde under the microscope
LaGarde is under control.

A Prosecutor has recommended that they abuse for allegedly avoiding the justice its authority and impose a 285 million euro arbitration settlement with businessman and former Minister Bernard Tapie, overruling Ministry of finance experts at key stages are examined. She denies wrongdoing and says it is victim of a smear.

The Court of Justice of the Republic, a special jurisdiction, Ministers for crimes in Office, created to try rule whether it should be a full investigation is mid-June.

As Strauss-Kahn resigned on Wednesday, EU governments have rushed to find to European replacement before emerging economies have required long greater say in running the Washington-based global lender can a bid for the job of hooking.

Asian, Middle Eastern and African diplomats in which IMF emerging markets said Central a consensus candidate, with support for Dervis searched for. It was unclear how she approach would that Dervis is out of service now.

Diplomats said Belgium, whose Finanzminister Didier Reynders, his own ambitions of IMF can accommodate between the smaller countries was, who had queried whether LaGarde could be nominated before the Tapie case is resolved.

"We must be absolutely sure, that the candidate can serve until the end of the mandate of this time," said one.

Called for a transparent process to choose a successor on merit, but a European source said was Beijing LaGarde private backing China and Japan. She now need to get support in Latin America, that said source.

The Kazakh Central Bank Chief, Grigory Marchenko supports Russia and other States of the former Soviet Union.

The associated press and Reuters contributed to this report.

Gas plant largest floating husband object

7:12 PM floating, husband, largest, object, plant No Comments

PERTH - energy companies Royal Dutch Shell has made a decision to construct what it claims is the world's largest floating husband object: a massive natural gas plant off the Australian coast.

Shell said the plant built, in a South Korean shipyard, are longer than six football fields and from 260,000 tons of steel - five times more than Sydney is famous harbour bridge or about six times as much as the largest aircraft carrier.

The company claimed that the "Prelude" liquefied natural gas plant is 25 years, and Friday resists the worst hurricanes.

Shell did not say how much it will cost to build. It expected that the structure brought online to 2017.

The plant is in the equivalent of 110,000 barrels per day in gas from undersea fields 125 miles off the coast and cool it in liquefied natural gas, LNG called.

"This is a seal of trust in the idea of floating LNG,", said Tony Regan, analyst at Tri-Zen capital in Singapore.

So far, liquefaction of offshore gas pipe-laying took part in the gas to a land-based.

With the consent of the prelude, shell delivers a host of other LNG project developers scrambling to meet fast-growing Asian demand, particularly from China and India.

The devastating tsunami, there are also LNG demand from Japan to March there several nuclear reactors offline and recently Japan's Chubu Electric Power Co. asked to close its two operating nuclear reactors in the Hamaoka plant.

Japan LNG imports has increased after shutdown nuclear capacity in the wake of the earthquake and tsunami in this year.

China imported rocket to 46 million tonnes only about 9 million tonnes LNG in 2010, but the consumption expected to be five times by 2020.

Australia has currently around a 200 billion dollar (213 billion dollars) worth of LNG projects on the drawing board. The industry is to triple current production to 60 million tonnes per year of 2020.

The associated press and Reuters contributed to this report.

Japan utility head is back on nuclear crisis

9:09 PM crisis, Japan, nuclear, utility No Comments

TOKYO - the President of the Japanese utility which runs a tsunami devastated nuclear power plant came Friday after the largest financial losses in the company's history, saying that he was responsible for the ongoing crisis accept resignation had fallen out of favor.

Tokyo Electric Power Co. President Masataka Shimizu, criticized for its low-profile during the disaster early days, vowed that the utility do to bring his "highest continue to" the Fukushima Dai-Ichi course under control.

Fuel rods seem largely melted earthquake caused three reactors of the plant after the March 11 a tsunami, which set out, cooling systems – the world's worst nuclear crisis since Chernobyl. Leaking radiation called residents on evacuation of thousands, and the dangerous fight for the reactors will contain expected next year continue.

The crisis raised serious questions about the lax supervision, Japan's nuclear industry and to the country, plans needs to rely on nuclear power for half of its electricity scrap - up from his current one third.

, During a press conference in a traditional Japanese apology bow "I have shattered confidence of the public about nuclear power, and causing so many problems and fears of the people, am resignation," reporters Shimizu.

"I wanted to take management responsibility and bring a symbolic close," he said.

Shimizu's resignation was widely expected as heads of major Japanese company step-down responsibility for even minor scandals and problems are expected. He had in earlier calls for his resignation responds saying he needed to efforts, included stay the crisis on the right track.

Shimizu came under fire for disappears from the public eye when the problems at work first appeared, and then later check in in a hospital. TEPCO details of his posted never.

The company was criticised unprepared for the tsunami despite some scientific evidence, that earthquake-prone Japan with a wave of this size make be could. It has also for slow and not disclose information about the plant knocked problems.

Renewed security fears caused the Government, the Hamaokoa have nuclear power plant in Central Japan, a region shutter, where a major earthquake with almost 90 percent probability is expected in the next few decades.

TEPCO reported that its losses for the fiscal year March 2011 was ended up to 1.25 trillion yen ($ 15 billion) - one of the largest annual financial losses for Japan's corporate world. TEPCO had a profit of nearly 134 billion yen last financial year.

Total losses from the disaster are likely to be far greater, including compensation for the thousands of people forced from their homes to Fukushima Dai-Ichi and companies such as companies that say, products by radiation damaged were evacuated.

The company plans to secure his assets to more than 600 billion yen ($ 7.4 billion) sale at finance but acknowledged that it always still could assess not the amount of damage payments.

"We are facing a large influx of claims compensation, but we do not know their scale," Shimizu said.

The Quake and tsunami, the 24,000 people dead or missing, damaged plants, ports, and hundreds of suppliers. These two disasters, as well as the nuclear crisis have Japanese economy into a recession, data show suppressed Government, such as factory production and exports stagnate.

The TEPCO Board of directors promised to take no numbers, and other executives returns 40 to 60 percent of their salaries, the company said.

But TEPCO must also the costs for the solution of the problems in the reactors and restarting of other types of power plants, nuclear, covering power deficit are shoulder.

TEPCO scrapped a previous plan add two more reactors to the Fukushima Dai-Ichi.

The Government studied possible rescue operations, including the use of contributions from other utilities and TEPCO taxpayer money deal with the towering cost help.

Shimizu, 66, another company Executive, replace as President Toshio Nishizawa, 60, is.

"Our company one faces unprecedented crisis." I think I am a very heavy responsibility shoulders, "said Nishizawa."

President Tsunehisa Katsumata, 71, former President, a leading role since the crisis, in particular took while Shimizu was absent, stays on, in the apparent strive for continuity.

Shimizu said that he will remain as a consultant for an indefinite period without pay. The appointments are official after a General Assembly in June, according to TEPCO.

Moody's Japan has warned that it further downgrade could its debt rating for TEPCO junk bonds status if commercial banks refuse to extend the utility more credit. Earlier this month, Moody's lowered the rating by two notches to a level just above junk status.

Analysts say that the bowing and resignations in the world can fix the nuclear power plant.

"This is a very difficult task," said Mamoru Katou, an energy analyst at Tokai Tokyo Research, adding that doubts about the utility of promise grow to nine months supervised the work. "Nobody really knows."

___

Disasters send Japan's economy in a recession

1:00 AM Disasters, economy, Japans, recession No Comments

TOKYO - Japan's economy shrank in the first quarter, veering back into recession as a factory production and consumption as a result of 11 March earthquake and tsunami withered.

Real gross domestic product - a measure of the value of which all were and services domestically produced - at an annualized rate of 3.7 per cent in the period January-March nominations, said the Cabinet Office Thursday.

The result marks the second quarter, which has lost the world no. 3 steam and environmental impact of a annualisierte 2.3 percent fall forecast in a survey Kyodo News Agency.

Although there no generally accepted definition of a recession, many economists define it as two consecutive quarters GDP contraction. Others consider the depth of the economic decline, as well as other measures such as unemployment.

Martin Schulz, senior economist at the Fujitsu Research Institute in Tokyo, said there is "no doubt" the recession has returned. More surprising, the economy is wrinkled, just as quickly, he said.

The latest GDP report contains only 20 days after the disaster, but "The impact is huge," said Schulz, to see, which most had expected economic fallout in the second quarter.

The Nikkei 225 stock average fell 0.4 percent to 9,620.82.

The magnitude 9.0 earthquake and tsunami links more than 24,000 people dead or missing, and entire cities in the most affected areas. Damage is $ 300 billion, so that it estimated the most expensive natural disaster in history.

It damaged factories in the region, caused severe lack of parts and components for manufacturers in Japan, above all automakers. Nuclear power plant crippled caused wide power spread defects that faced with the headache, added to companies and households.

As a result, both the most on record was Japan's factory production and consumer spending in March. South for the first time went exports in March in 16 months. Company reports lower earnings and reduced prospects for the rest of the fiscal year.

Recent events have deeply unsettled households, which probably remain for the next few months are careful, Schulz said.

"The nuclear disaster showed how much is actually wrong in Japan," he said. "And find many things that seemed so stable and secure as power... not sure at all."

Toyota Motor Corp., Japan's largest automaker, said last week that its first-quarter profit deficiency fell more than 75 percent due to the parts after the tsunami. As the may cost the crisis the company production of 550,000 vehicles in Japan and a further 350,000 overseas.

Toyota is expected to lose its place as the world's best-selling automaker General Motors co. this year.

Even before the disaster, the Japanese economy was shaky.

A historical shift overtook China as the world no. 2 in the last year. Japan to fight, a whole range of problems including deflation, a rapidly aging and shrinking population and a ballooning national debt to meet. Continued lackluster demand at home was increasingly on exports for growth and offset based Japanese companies.

Solid after four quarters growth, Japan of GDP enables in the last three months of 2010 as a result of weak exports and consumer demand negatively. The downturn was expected to be temporary.

Japan now consecutive quarters instead recorded contraction for the first time since the global financial crisis. GDP fell for four straight quarters from April 2008.

Japan's economy and fiscal policy Minister Kaoru Yosano described the collapse as mild as the previous slide, when global demand "immediately vaporized."

"The Japanese economy ability too much is enough," Yosano said according to Kyodo News Agency.

Goldman Sachs said the economy is probably below in the second quarter. It expects GDP to bolsters to start demand in both the private and public sectors grow again in the third quarter as reconstruction.

"We assume it, changes the production and exports to mild growth through the supply chain restoration, although power supply is an uncertain factor," Japan's Chief Economist Naohiko Baba said in a report to clients.

The first quarter GDP figure translates to a 0.9 per cent from the previous three months time, the Cabinet Office data.

Consumer spending, which accounts for about 60 percent of the economy, by 0.6 per cent back. Capital investments by companies moved 0.9 percent of the October-December quarter.

To finance recovery spending, Japan's Parliament at 4 trillion yen ($ 49 billion) fell Budget supplement earlier this month. More government spending are expected to follow in the coming months.

The money is used to build new houses for more than 100,000 people without proper shelter, stones and debris, restoring fishing grounds and offer support for disaster-hit companies and their employers remain clear.

IMF Director new appointments in the middle of sex charges

3:09 AM appointments, charges, Director, middle No Comments

NEW YORK - Dominique Strauss-Kahn resigned as head of the International Monetary Fund, the IMF said in a statement issued Wednesday as he faced charges of sexual games and attempted rape in New York. Silver prices settle, but sales continue to soar Pakistan looks east to 'good friend' China red tape: IRS snafu means refunds in limbo foreclosure flood may not have crested yet first thoughts: Mitt Romney's good week converting currency on Google can lead to malware why we can't pry our eyes from celeb gossip sites

"I deny with the greatest possible firmness all of the allegations that have been made against me," Strauss-Kahn said in his letter of resignation, released by the IMF.

He said the resignation came with "infinite sadness" but was needed to protect the IMF, "which I have served with honor and devotion."

"I think at this time first of my wife - whom I love more than anything - of my children, of my family, my friends."

"I think that of my colleagues at the Fund;" "together we have accomplished such great things over the last three years and more."

He said he would'nt "devote all my strength, all my time, and all my energy to proving my innovative."

The IMF said John Lipsky would'nt remain the institution's acting managing director and that its executive board will soon reveal the process of replacing Strauss-Kahn.

The hotel maid accusing Strauss-Kahn of trying to rape her "has not had a moment of peace" since their encounter made international headlines, her lawyer said Wednesday.

The woman, a 32-year-old immigrant from the west African nation of Guinea, was to testify before a grand jury sometime Wednesday about the incident at a penthouse suite at a luxury hotel in midtown Manhattan, lawyer Jeffrey Shapiro said on NBC's TODAY.

"This is a woman who is a rape victim - the victim of a physical assault - who since this has taken place and since she has reported it to security at the hotel, has not had a moment of peace." She's not been able to return home. "She's not been able to seek any help," said Shapiro, a New York City personal injury lawyer.

She has gone into hiding polyamide fears for her family's safety, he said.

The woman is a widow with a 15-year-old daughter. They moved to New York from Guinea about seven years ago, Shapiro said.

"She came from a part of the world where laws were few and far between and that readily available, at least justice wasn't to people without means," Shapiro told TODAY. "When she found out that this encounter that she had had was with a man of great power and wealth, she fears not only for herself but maybe more importantly her daughter."

Prosecutor have accused Strauss-Kahn, 62, of attacking the maid Saturday afternoon when she entered his suite at the Sofitel Hotel, apparently unaware it what occupied, to clean it.

Video: IMF chief on suicide watch at NYC jail (on this page)

Prosecutor allege Strauss-Kahn attempted to rape her and then, when unsuccessful, forced her to perform oral sex on him.

Strauss-Kahn, one of France's most high-profile politicians who what a potential candidate for president in next year's elections, through his lawyers has denied any wrongdoing. He is being held under suicide watch in a jail at Rikers Iceland on charges of a criminal sexual act, attempted rape, sexual abuse, unlawful imprisonment and forcible touching. He was denied bail on Monday and is due to reappear in court on Thursday for another bail hearing.

In court papers filed Wednesday, Strauss-Kahn's attorneys proposed posting $1 million cash bail and confining him to the home of his daughter, Camille, a Columbia University graduate student, 24 hours a day with electronic monitoring.

Strauss-Kahn "is a loving husband and father, and a highly regarded diplomat, politician, lawyer, politician, economist and professor, with no criminal record," his attorneys said in court papers.

The attorneys had proposed similar conditions at on earlier bail hearing but added the promise of home detention Wednesday. Manhattan prosecutors did not immediately comment on the bail motion. The hearing what set for 2: 15 p.m. Thursday. Another hearing had been set for Friday, the deadline for Prosecutor to indict Strauss-Kahn.

He faces up to 25 years in prison if convicted.

Shapiro said his client was told by a friend a day after the incident that the man she had accused of attacking her what Strauss-Kahn.

"She feels that she can't go home," Shapiro said, adding that his client felt "scared" and "incredulous" after learning his identity.

Shapiro dismissed suggestions that the woman had made up the charges or tried to cover up a consensual encounter.

"There which nothing consensual about what took place in that hotel room," he told TODAY.

Investigators on Wednesday cut out a piece claim of carpet in a painstaking search for DNA evidence that could corroborate the maid's, law enforcement officials said.

New York detectives and prosecutors believe the carpet may contain Strauss-Kahn's semen, spat out after in episode of forced oral sex, the officials said, speaking to the associated press on condition of anonymity.

Story: Questions, answers about Dominique Strauss-Kahn

In addition to examining the Sofitel hotel suite for further potential DNA evidence, they were looking at the maid's keycard to determine whether she used it to enter the room, and how long she was there, officials said.

' No. agenda'
Earlier, Shapiro told Reuters that after the woman "escaped from the room, she reported it to security, the New York City police were called, they interviewed her, they investigated the scene."

"She has no agenda in this other than to answer the questions that are asked of her, to tell the truth," he said.

Story: IMF chief a 'honey trap' victim? Conspiracy theories swirl

The woman, who is not a U.S. citizen but says she has a visa to work in the U.S., has a limited education and experience, but had worked hard to obtain her job as a maid at the Sofitel, Shapiro said.

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Her identity has been withheld in U.S. media publications, in accordance with standard journalistic practice. But media outlets in France, where from, Strauss-Kahn is began reporting her name Tuesday.

Among the outlets to identify the woman by name are Paris match, the Swiss newspaper Tribune de Geneve and Slate.fr, the radio station RMC according to slate.com. (Slate.fr is a French website that is editorially independent from slate, although slate does own 15 percent of it.)

Story: Essay: when powerful men cross the line

Slate.fr, citing relative group of ethnic of the accuser, said the woman was from the Fulani and a Muslim.

"She is a good Muslim." "She is really pretty, like many Fulani women, but in our culture, not accept this type we do of aggression," a cousin of the woman told slate.fr.

Story: IMF chief's arrest may speed up succession battle

The New York Times reported she was granted asylum seven years ago.

The woman phoned her older brother in New York about an hour after the alleged sexual assault and said, "somebody has done something really bad to me." "I've been attacked," Britain's daily mail reported Tuesday.

"No. family should have to go through this," the woman's brother told the newspaper. "She is a hard-working woman who is just a victim." "She is a wonderful West African immigrant who just wants to work hard."

NBC News, the associated press and Reuters contributed to this report.

IMF process for selecting Start new head

5:06 AM process, selecting, start No Comments

WASHINGTON-the International Monetary Fund executive board meeting on Thursday, the process of selecting a new leader, Dominique Strauss-Kahn, replace resigned amid allegations that he maid Hotel rape start.

"We want to do this as quickly as possible," said that the IMF trade Managing Director John Lipsky at the annual meeting of the Bretton Woods Committee, the IMF and the World Bank advises.

His comments came shortly after Treasury Secretary Timothy Geithner the IMF a new boss in an open procedure select calls quickly. The United States, the IMF is the largest stakeholder.

Lipsky took over this week by Strauss-Kahn, who has denied the charges and has vowed, they fight with "all his energy." Strauss-Kahn, 62, was formally accused against Thursday.A Manhattan Supreme Court judge him bail granted, when he on $1 million with an insurance bond of $ 5 million. He was under house arrest provided 24-hours in New York City with electronic monitoring.

History: Former IMF leader will bail sex assault in

"I that may deeply regret, who needed it for me, substitute for General Manager of the Fund," said Lipsky.

Strauss-Kahn resignation set up a scramble, his successor to choose. He is widely praised for his leadership and efforts to solve Europe's debt crisis

Traditionally, the head of the IMF is a European while an American of the World Bank was running. Developing countries have long at this arrangement rubbed and ply officials from their countries of this time be taken into account.

The United States play a crucial role in the selection. The U.S. has more votes than any other individual country although collective Europe has the most weight.

Geithner statement is ambiguous and leaves open the possibility that a candidate of the two groups could support the United States. Some analysts said that the Government make their preference more behind the scenes and in a more impartial attitude in the public.

Lipsky stressed that the work of the IMF is gone this week despite the uncertainties of Strauss-Kahn. He said, on the IMF Executive Board, in addition to dealing with the search for a successor, had a meeting for Friday an emergency loan program for Portugal, one of the three European Nations assess their large debt burden they have planned again required to the IMF for help.

Lipsky said that the IMF "unique challenges of the moment." is, but it has a highly qualified staff that can fully carry on the work of the Organization, he said.

"The head of Department best is our Squad, which has had this institution at all," said Lipsky.

The IMF is strongly involved in delicate negotiations on financial support for troubled European countries such as Greece, Portugal and Ireland. The European governments are coalescing behind French Finance Minister Christine Lagarde as a leading candidate to replace Strauss-Kahn.

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Lipsky said that Europe and the International Monetary Fund should continue to reform efforts in euro zone countries compared with government bonds crisis support.

Europe set its traditional claim to the post itself as a fast-growing to find Nations as China and Brazil said, it's time to break this monopoly, and an IMF Chief of a developing country.

Hours after Strauss-Kahn resignation, any of the European Commission to the German Chancellor, the French Finance Minister said replacement should come from Europe. Not because of the tradition, they insisted, but because knowledge of the debt crisis in Europe a critical element portfolios should be any candidate.

"From a European point of view, it is essential that the appointment of merit-based, where economic and political experience and competence play the key role", said Olli Rehn, EU Commissioner for monetary and economic affairs. "And at this current time, it is one of the merits, if the person has very solid knowledge of the European economy and decision making."

Still, there's no indication when a decision is taken. But a meeting of the G-8-a group of eight developed countries - will be France next week in the seaside resort of Deauville, and it will be all important decision-makers.

The IMF Executive Board released a letter from Strauss-Kahn on Wednesday in which he denied said the accusations against him but that he felt he must resign to protect his family and the IMF.

Germany's former Federal Reserve Chairman, Axel Weber, include other potential European candidates the head of Europe's bailout Fund, Klaus Regling. and Minister of finance peer Steinbruck, German.

Candidates from other countries are former Finance Minister of Turkey, Kemal Dervis; Singapore's Finance Chief, Tharman master's degree; and Indian Economist Montek Singh Ahluwalia.

The associated press and Reuters contributed to this report.

China trade surplus surges, is fuel for Yuan critics in United States

10:33 PM China, Critics, States, surges, surplus, trade, United No Comments

BEIJING China to book a strong trade surplus back in April as exports hit a record while imports more relaxed as expected, stormed burdened by sustainable monetary tightening and high commodity prices.

The surplus of $11.4 billion, is almost four times higher than expected, the economic and strategic talks at the highest level in Washington has China and U.S. criticism could fuel pump that Beijing restricts the Yuan appreciation for its exports to support industry.

The trade account swung from a small, rare trade deficit in the first quarter, driven by a stronger than expected 29.9 percent increase in exports more than a year earlier to a record high of $155.7 billion.

Imports rose by 21.8 percent, short of estimates and analysts whether this Bills should be read as a sign of surprising weakness in the world's fastest growing economy or simply deferred purchases because of rising raw material prices were at loggerheads.

"Exports are much stronger, which is the basic thing." Global demand still quite strong, slightly stronger than many people fear, "said Tao Wang, Economist at UBS in Beijing."

"On the import page we think that commodity exports had been very strong to February, and a lot of inventory it has structure." "So now we think it is by some adjusting."

Xu Biao, an economist with China Merchants Bank in Shenzhen, but, said the lower than expected, a much more serious warning could contain imports.

"Concerns about a slowdown have certainly intensified and the risks of a worst case scenario for the Chinese economy, namely a relatively low growth and high inflation, are on the rise," he said.

The median forecast of economists respondents by Reuters last week was for exports rise 29.4 per cent and imports by 28%, which grow a trade surplus of $3 billion.

On a seasonally adjusted basis, exports rose by 35.1 percent in April from a year earlier and increased by 12.3 percent over the previous month. Imports gained 27.4 percent operations and 7.4 percent month on month, said the customs administration.

Registered also impact of earthquakes and subsequent nuclear crisis of Japan pay China trade. Japan imports were 16 billion dollars in April, 14.9 percent from March, as production and shipments were interrupted.

WEAK-YUAN POLICY

The data showed that China's trade surplus with the United States widely rose 16 percent on its since November.

The data offers fresh ammunition for the US politicians that the trade imbalance say relating to China's monetary policy, a weak Yuan a Chinese manufacturer is unfair advantage in global markets and cost American jobs.

A total trade surplus narrows China last year, but provided little comfort for the officials in Washington, because the surplus with the United States rose 26 percent to more than $180 billion.

On the first two days of talks on Monday the United States pressed China on a number of known issues, including, that Beijing should press the tightly managed Yuan up at a faster pace against the dollar.

"This number is add probably the pressure from Washington for Beijing faster currency appreciation to, but more all should convince Chinese policy makers, that one tolerated stronger yuan of the economy, can be", said Brian Jackson, an economist with the Royal Bank of Canada in Hong Kong.

For its part China turned aside a chance to criticize the loose US monetary and fiscal policy, that there were claims in the past weakening of the dollar.

China has about $3 trillion in foreign exchange reserves, of which around two thirds are in dollar-based assets, to be held so that Beijing has significant stake in the health of the currency appreciated.

Import cost increases, together with the Government efforts to compensate for the economy in favour of domestic consumption reduction of dependence on exports, could lead to a smaller trade surplus for 2011 of last year of $183 billion.

Chinese officials hope that a small trade surplus with the rest of the world could facilitate review by major trading partners of the Yuan.

Still, there are many indications that the Government of faster Yuan appreciation tolerate this year as it tries, employ the inflationary impact of rising raw material prices.

China dissolved the Yuan to the dollar from a nearly two-year peg in June, and this year people's Bank of China has led the Yuan heights record. It has estimated now 5 percent since June and 1.5 per cent since the beginning of this year.

NO HARD LANDING

China is already the world's largest exporter and has only little margin for its exports further increase, while the demand for imports in leaps and bounds in addition to his turbo-charged growth, which exceeded 10 percent last year.

Investors have of an abrupt slowdown long's second largest economy of the world, that everything from the raw material consumer goods could, smothering a key source of demand as global buyers as many parts of the world are still fighting, fears that the global financial crisis.

The latest data showed that China, world's second largest oil imported buyer, 1.7% more oil than a year ago, the third highest on record on a daily basis bring in 5.24 million barrels per day in April.

Imports of copper were weaker, almost 14 percent of March by volume. But said analysts rather than heralding a sudden drop-off in Chinese economic activity, the a below pointed out that corporate high-priced overseas deliveries in favour of local producers and stocks were avoided.

The Government sees few signs of a hard landing in the economy. But it required reserves and interest rates banks increase during the Yuan, inflation should increase at a faster clip to combat, analysts say.

Inflation hit a 32-month high in March of 5.4 percent, investors more policy tightening the future keep. Figures on Wednesday to show that inflation loosened in April to 5.2 percent as food prices, are the most important pressure behind inflation, now.

"I think, is over-tightening the main risk for China." However, it is too early, based imports to over tightening only on April, may require "said Dongming County Xie, China Economist at the OCBC Bank in Singapore."

"Compared with interest rate policy, China can look perhaps more now address to the monetary policy of inflationary pressures."

Any claim win Boeing, Airbus with the WTO ruling

7:05 AM Airbus, Boeing, claim, ruling No Comments

Geneva - European aircraft manufacturer Airbus received State subsidies which it violated U.S. competitor Boeing Inc., but not all of them were illegal according to international rules, said Wednesday the World Trade Organization.

The mixed decision an appeal of Panel allowed Brussels and Washington both claim a victory type in their tit-for-tat dispute over grants for aircraft manufacturers, the become the most expensive and complex is to hear from the international trade body.

The Appeals Panel confirmed an earlier decision in June, which found that U.S. Boeing, lose market share in several markets, had caused European subsidies for Airbus competitors particularly in Asia.

Concluded that financial assistance provided UK, Spain, Germany, and France for the development of several aircraft "serious damage to the interests of the United States caused by."

But the Panel lifted an earlier finding that certain scholarships, such as for research and development, had constituted a "prohibited export subsidy", and said Boeing had not market share in Brazil, lost Mexico, Singapore and Taiwan due to the subsidies.

The appeals ruling described EU Trade Commissioner Karel de Gucht as a "significant result."

He said "The U.S. claim that receive export subsidies banned Airbus fully rejected,". "In addition a number of claims in respect of R & D and infrastructure, among other things were either rejected or partially accepted."

His counterpart in Washington, US trade representative Ron Kirk, the Panel said the decision still meant that $18 billion in illegal state aid over four decades was Airbus had.

"These subsidies have significantly damaged the United States, including Boeing caused to lose sales and market share in key markets around the world", Kirk said. "Start Help is illegal, and the European Union and the Member States aid should future launch payouts do without."

Boeing and Airbus, heralded the decision as a win for their side.

"This is clear, definitive victory for fair trade that level the playing field for America's air and workers" was quoted Chairman Jim McNerney Boeing in a statement.

Airbus CEO Tom Enders said with the results he was satisfied. "This is a great victory for Europe," he said.

Upbeat statements from all sides are a common feature of long-running transatlantic dispute over a market assuming that become worth more than $3 trillion in the next two decades.

Brussels has drawn the United States, before the world trade body over what it says are illegal subsidies for Boeing.

In March, the WTO ruled that at least $5 billion in subsidies between 1989 and 2006, which banned under international trade rules Boeing were received.

This judgment is also inserted is.

Gun shy U.S. companies pull back from Mexico

8:57 AM companies, Mexico No Comments

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MCALLEN, Texas — Dozens of Mattel Inc. employees were on their way to another day of work making Power Wheels in Mexico's industrial heartland when gunshots erupted around them and a grenade ripped into one of their buses, killing one worker and wounding five.

The battle between drug traffickers and the army near the city of Monterrey last week was the sort of violence that is frightening U.S. companies away from new investments south of the border, where organized criminals are increasingly turning to kidnappings, extortion and cargo thefts despite a government offensive against drug cartels.

"These acts of violence are not happening in a vacuum; they're happening in the street that could be right out in front of your building. Bullets get shot and they have to stop somewhere," said Dan Burges, a senior director at Freightwatch Inc., an Austin-based cargo security firm.

As a result, only half of the U.S. firms surveyed recently by the U.S.-Mexico Chamber of Commerce said they would go ahead with new investment plans in Mexico and several companies, including Whirlpool Corp., have recently announced they would put new factories elsewhere citing concerns about safety.

More than 35,000 people have died in drug-related violence since President Felipe Calderon deployed thousands of federal security forces four years ago to fight traffickers. In recent months, nearly 400 bodies have been pulled from mass graves in the northern states of Tamaulipas and Durango. There are near-daily reports of drug-gang executions, kidnappings and extortion.

The army said the Mattel workers were apparently caught in crossfire on May 6 when attackers believed to be working for the Zetas cartel assaulted a military convoy with guns and a grenade launcher from a highway overpass on the outskirts of Monterrey.

"The people of Mattel were shocked and incredibly saddened" by the attack, the company said in a statement released by spokesman Jules Andres.

But battles between government and cartel forces are increasingly common, and companies and their workers are inevitably affected.

One out of 10 companies reported kidnappings and 60 percent said their employees were beaten or threatened in 2010, according to the U.S.-Mexico Chamber of Commerce.

And cargo thefts from trucks and trains are rampant and soaring.

Cargo thefts cost businesses about $700 million last year, a 40 percent increase over the past three years, according to the National Multimodal Transport Alliance.

Entire trailer-loads of newly built cars were stolen this year along major highways in the states of Tamaulipas, Nuevo Leon, Morelos and Sinaloa. Some truck drivers refuse to drive through dangerous areas including Ciudad Juarez, where officials say criminals typically extort about $70 to pass without harm.

Increasingly, cargo thieves are stealing selectively, things like industrial chemicals or specially processed metals, at the request of specific clients, according to Mexico's Freight and Auto Transport Association.

Businesses in Mexico factor in payments to organized crime syndicates as part of the cost of doing business. "It's a well-known practice that many Mexican producers and shippers pay a certain percentage so they can get their goods through parts of Mexico without having them ripped off," said a senior US official in Mexico, speaking on condition of anonymity because of security concerns.

Armed security escorts can now be seen rumbling en masse on Mexico's northbound toll highways, some privately hired by corporations, others — as in Coahuila state — provided at no charge by the government. At the Panasonic plant in Tijuana, armed escorts stand by for daily deliveries, a 20 minute trip to the U.S. border.

So many steel rolls, steel plates, aluminum and copper have been stolen on the Monclova-Monterrey highway this year that some insurance companies are suspending insurance, according to Freightwatch. Despite the losses, most U.S. companies already operating in Mexico say they have no plans to leave a place with $3 an hour labor, lax environmental standards, tax incentives and a location conveniently close to the U.S. market.

"People think that everything in Mexico is a constant shootout, but that's not the case," said Keith Patridge, who promotes businesses on both sides of the border from the McAllen Foreign Trade Zone in the southernmost region of Texas.

Indeed, every day more than $1 billion worth of imports and exports cross the border, fueling hundreds of thousands of U.S. and Mexican jobs. More than 18,000 U.S. companies have operations in Mexico, including most of the Fortune 500.

But those figures could be higher, says Gabriel Casillas, J.P. Morgan's chief economist for Mexico, who estimates that drug cartel-related crime lost Mexico $4 billion in foreign direct investment in 2010.

Patridge glances out his office window at three large flags of Mexico, Canada and the USA. Beyond them, across the street, the Department of Homeland Security's new offices hold a weapon-packed armory, bulletproofed vehicles, lockers of seized drugs and holding cells filled with Mexicans who have been caught sneaking across the Rio Grande River. The border, for thousands of federal agents, is a barrier to be constantly protected and defended.

But for Patridge, and most business leaders in the area, the border is a river, fence or wall wending its way through what feels like a single community.

"We're a city, a metropolitan area, that happens to span the border. The south side of our city happens to have labor that is among the most competitive in the world. The north side of town is the largest market in the world," he says.

Years ago, Patridge helped between 20 and 30 U.S. firms a year set up manufacturing operations in Mexico. Last year he had five.

In El Paso, Texas, Bob Cooke runs a similar cross border chamber of commerce, promoting businesses in the U.S. and investment across the bridge in Ciudad Juarez, the most violent city in Mexico. But he said only one U.S. company opened up shop in Ciudad Juarez last year.

"We're clearly not arguing that it's business as usual, but it's not as bad as the global perception either," he said, complaining that because of the image, "We can't even get companies to look there anymore."

Security costs U.S. firms in Mexico as much as 2 percent of overall operating costs, according to the U.S.-Mexico Chamber of Commerce. But that is still a bargain compared to 7 percent in the U.S.

A.O.Smith, one of the world's largest manufacturers of water heaters, has three plants in Mexico including one in Ciudad Juarez, and it has no plans to leave, said Kathy Neal, the company's director of trade compliance.

"We have taken additional security precautions where warranted, as have most businesses operating in Mexico," she said. "Many of our employees have been personally impacted by violence and crime in various ways. Mexico is a vibrant country with many talented and hardworking citizens. The current situation is tragic and we hope it will end soon."

Indeed the more common businesses fleeing Mexico are the Mexican ones.

Thousands of south Texans used to meander over the 85-year-old McAllen-Hidalgo-Reynosa International Bridge spanning the Rio Grande to enjoy northern Mexico's regional specialties: tender cabrito goat steaks, roasted wild bird, bowls of spicy chistora sausage floating in melted cheese.

Last year that changed when the dusty, cracked streets of Reynosa just south of McAllen, Texas, became a war zone for the Gulf and Zeta cartels. La Fogata restaurant owner Erasmo Vargas said customers stopped coming.

"Mexicans who live in Reynosa won't go out after 6 p.m. and our customers, 85 percent of whom are Americans, won't cross the border anymore," said Vargas. "Our restaurant was safe, we've had no problems, but the community has become too violent."

This month he opened a new La Fogata restaurant a few miles north, in McAllen, following about a dozen other popular restaurants into the area. On a recent afternoon, his posh Texas dining room was filled with well dressed Spanish-speaking customers dining on his famous roasted meats.

"It's actually not all that different here," said Vargas. "We can buy everything we need on this side of the border. It's just more expensive."

IMF uncontrollable left, while Europe is on fire

10:54 AM Europe, uncontrollable, while No Comments

WASHINGTON-the shock arrest of the head of the International Monetary Fund can world's power broker in a frantic search for his replacement, see force.

Hours after the New York police the sexual assault of maids charged with hotel Dominique Strauss-Kahn, the IMF said it John Lipsky, the Fund No. 2, the position was appointed the acting Managing Director. At a hearing in New York City on Monday, a judge Strauss-Kahn said jailed at least until his next court date should remain. The judge at the May 20 as the next date for the case set.

Prosecutors had asked to keep the Manhattan judge, Strauss-Kahn without bail. His lawyers had suggested that prosecutors million dollar deposit and promised that IMF Managing Director in New York City would remain.

Story: Questions, answers of Dominique Strauss-Kahn

He is with attempted rape, sex abuse, a criminal sex act, unlawful detention and violent touch accused. In prison the number is punishable years the top five to 25.

"This battle Defender has just begun,", which Benjamin Brafman said scores of reporters gathered outside the courthouse. "Mr Strauss-Kahn is innocent of these charges."

IMF officials said that Lipsky often runs the financial institution, if the Managing Director (MD) is away and said that it remained "Fully functioning and functioning."

But the announcement not mask concerns among some high-ranking officials of IMF Board about a possible leadership vacuum, especially as Lipsky, that he was planning said just last week, in August after down when his term ends.

Which could world's uncontrollable let lenders, as it is embedded in the euro area debt fix effort and the massive task to help debacle is to control the global economy, the nature of the policy that the cause of the crash of 2007-09.

"Europe is in flames," News Agency a Board official Reuters. "It's a good idea, Lipsky be MD but how long this will go on for made have?"

Several officials said it would provide important quickly his trust for the Board in Lipsky the ability to run the IMF without Strauss-Kahn.

Lipsky, a former Vice President of JP Morgan Chase & co., was with the 24-Member IMF Board meet on Sunday to them about developments concerning the arrest of Strauss-Kahn short.

But the IMF said that the meeting had been delayed "pending further developments in New York."

Story: IMF Chief denied bail at the hotel sex assault case

On the IMF Executive Board, consisting of representatives of the IMF member countries, including major shareholders such as the United States, France, Germany, China, and Japan, has to appoint the authority and to dismiss, the Managing Director.

While the 62 year-old Frenchman's playful experience, charisma and appetite for politics to retake a central role in the global financial market funds contributed, since he took over 2007, the latest incident too much for the IMF could prove Member States, even if he is cleared of the charge.

In 2008, the Board disabled Strauss-Kahn abuse of power over a short affair, which had with a female IMF Economist he but it warned against further wrongdoing. On this occasion Strauss-Kahn, "Error in the judgment" publicly apologized for one.

Several senior IMF sources have Reuters said they had concerns linger after the incident about whether her boss had taken the lesson to heart.

The institution of the scandal was published 2008 the extent of the financial crisis and the response from the IMF move. Strauss-Kahn even skeptics in the Fund, received high praise, for his efforts, which around the world make the institution at the heart in response to the meltdown.

Effective power broker
The IMF Chief was also central in galvanizing Europe against its debt woes at a time when European Heads of State and Government of huge bailouts for countries such as Greece, Ireland and Portugal support was shared have.

Speculation had previously swirling, Strauss-Kahn run the funds for the French Presidency in the year 2012 can be. To do this, he would have to declare end of July a candidate and step down from his job in Washington.

But IMF officials say barely had begun, which leaders might also think about the next IMF.

With the abrupt exit of Strauss-Kahn now possible search in tenure expire in September 2012, the process which may begins search for a new leader and this time could more burdened than in the past.

Developing countries have made it clear that they are the status quo challenge, under which the IMF captaincy traditionally has gone to a European while an American heads of the World Bank.

Brazilian Finance Minister Guido Mantega a shot fired in April, when the IMF said the Steering Panel: "It is high time that we make a political breakthrough in the outdated practice of start-up aid."

"The heads of the Bretton Woods institutions should only from an open and merit-based process without elected on grounds of nationality."

German Chancellor Angela Merkel has signaled on Monday that they the bailouts of ailing euro zone countries Greece, Ireland and Portugal strongly share another European at the head of the IMF, preferred.

Former Turkish Finance Minister Kemal Dervis name has brought in the last few months as a potential candidate in circulation have been.

Dervis was a former head of the United Nations Development Programme and is now a program economy at the Brookings Institution Washington-based think tank.

While some in the United Kingdom on a candidacy of former Prime Minister Gordon Brown, the Finance Minister for a decade until 2007 was speculated, his successor, David Cameron, the IMF urged outside Europe for your next guide.

Current French Finance Minister Christine Lagarde has been also some Europeans as a possible successor. Your the first female head which would make setting up.

Under other names that have been mentioned: South Africa's former Finance Minister Trevor Manuel, 55; Bank of Mexico of Governor Agustin Carstens, 52; and India's Montek Singh Ahluwlia, 67, influential Economic Adviser to Prime Minister Manmohan Singh.

Official: Libyan is not oil flow until war is over

12:53 PM Libyan, Official, until No Comments

BENGHAZI, Libya - Libya's largest oil company is production does not return until the war ended, and that probably applies to manufacturers nationwide, Director of the company information told the associated press on Sunday.

Abdeljalil Mohamed Mayuf, said the Arab Gulf Oil Co., responsible former production of 1.6 million barrels per day, stop pumps out of fear of further attacks by the forces of the embattled leader Moammar of Libya for more than a quarter of nepotism.

"Everything depends on security." "We can produce morning but our fields are being attacked would", Mayuf said in an interview. "We can no army to include every field." "We are not a military company and you of nepotism are everywhere."

He said they were in the 40 km from the South-Eastern fields to the Messla and Sarir.

"We can not say when we restart, because this military operation is dependent on and when is nepotism."

He said, the decision was made after April 4 seriously a pumping station and production facilities in the South-East of Messla oil field, followed missile attacks, a few days later, from hits on a damaged pump station half way along the 317-mile (510 km) pipeline from Messla to Tobruk port. Eight rebels as guards in second attack killed came, he said.

Nepotism slapped after the rebels just export oil had begun after a break of Weekslong due to of fight. 1 Million barrels of oil with the help of Qatar sold the rebels. The exports are to resources in the leader of the 42 years, the battle, which still controlled the Western half of the country.

After the attacks said rebel oil Chief Wahid Bugaighis for repairs to Messla would be completed in about three weeks be and they would return oil pumps.

Mayuf said Bugaighis "don't know what he is talking about."

Bugaighis told the AP on Saturday that he has no more authority in the rebel civilian National Transitional Council. Differences with Agoco apparently followed his resignation. The Council, a temporary storage of advanced on Friday announced but no substitute for Bugaighis call.

Although it is outside his fortune, voices Mayuf peaks countries that rebel officials to consider nepotism, partly because of the support are on Libya in the Security Council. "Countries such as China, India, Russia and Brazil has also a strange position, these people should be concerned about their interests in Libya, worried about what happens, if all is nepotism, Libya," Mayuf said. Oil, oil India, Russian Gazprom and Brazil's Petrobras have China investment in Libya.

About 80 percent are Libya's oil fields and facilities in the East of the country, which since the launch of citizens of the North-Eastern port of Benghazi of the revolt against nepotism under rebel control has come in the three months.

Mayuf said that the most oil fields in West Libya Western companies were carried out by Libya weeks, while the production in the Western Hamada control from the start of the uprising evacuated main areas. He said the Western refinery in RAS Lanouf with Agoco oil operated, so could not productive to Agoco work continues. Agoco provided about 15 percent of the fuel a small refinery in Zawiya, East of Tripoli, he said.

Agoco, which is the largest company in Libya to the production and the size of the reserves in the oil fields, skeletal staff to retains all of its facilities but only for the maintenance of the equipment, said Mayuf.

The company produced 425,000 barrels a day before the uprising, and then fell to 130,000 per day.

Mayuf said that Libyan oil executives long suspected that figure of 1.6 million barrels per day reached official production of nepotism regime been. "they have been using this number for the last three years, but we know production has increased and many of us suspect it was closer to 2 million (barrels) per day," he said.

He speculated that extra 300,000 to 400,000 barrels of Libyan sweet was on the spot market, nepotism and sold to benefit a small elite clique. There was no way to verify, Mayuf of the speculation.

Libya produces only a fraction of world production, with the most to Europe exports, but spreading to other oil-producing Arab countries fear a similar riots caused world oil prices to rise.

Libya has the largest proven oil reserves in Africa, an estimated 46.4 billion barrels as of January 2011, depending on the oil and gas journal.

In the middle of gas shortages and long lines, the rebel National Transitional Council citizens over gas pushing a declaration Saturday, so that fuel in particular provides besieged port of Misratah where rockets set the main fuel supply depot in flames last week to save in all liberated Libya.

Japan approved Tepco nuclear claims plan

2:45 PM approved, claims, Japan, nuclear, Tepco No Comments

TOKYO Japan on Friday announced a plan, Tokyo electric power compensate victims of the crisis in the tsunami crippled nuclear plant without theoretiCAL go, while it fights nuclear crisis since Chernobyl to solve the worst to help.

The plan, after weeks of dispute between government officials, bankers and Tokyo Electric executives about who should pay for the crisis, agreed revered investor fears that a collapse of the company power financial markets would roil.

You is because as engineers still working are reactors under control in the Tokyo Electric Fukushima Daiichi nuclear power plant North of Tokyo bring two months after the earthquake and tsunami, the radiation leaks led.

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Credit rating agency standard & poor's lowered Tokyo Electric, known as Tepco, to BBB from BBB +, said in a statement: "The upper limit of compensation at that time remains unclear, and we expect remain Tepco's profitability under considerable pressure for a very long time."

The Government will issue special bonds to finance a Fund of Asia's largest utility, will deal with compensation claims which are expected to be in tens of billions of dollars. No ceiling is set at Tokyo Electric liabilities.

The Government is considering also buy preference shares Tokyo Electric, also known as Tepco when it runs behind the capital. Provided no information on the size of its planned fund injection but legislators told reporters earlier this week, that the bond would be about 5 trillion yen ($ 62 billion) in total.

In return for public support the Government that it will exercise control on management of Tokyo Electric "for a certain period of time" and makes other, has also asked that to pay annual premiums into the Fund.

Although facilitates that have averted the worst, sold stocks, investors utility unsettled by the prospect of the role the Government hands-on in the area run.

Bank shares also slipped after Japan's top Government spokesman said a distinction between loans before the March 11 earthquake and tsunami, and those following the disaster become expanded and banks should be required, that should work together in Tokyo Electric financial relief.

The market interpreted the comments Cabinet Secretary Yukio Edano may be made by Chief as an indication of loans banks or other concessions. Shares of Sumitomo Mitsui Financial Group, the utility main creditor bank, fell by 3.8 per cent.

"The Government on private corporate profits hurt." It hurts the profits of utilities has, and now it is trying the burden on the taxpayer Kiyoshi Noda, senior Fund Manager at MU investments reduce, by spreading to banks saying you profits.

Public burden
Government officials made great efforts to criticism of the regime as ward off unjustified use of taxpayer funds. Some have argued that the utility, which is a history of security lapses and is known for its cosy relations with the supervisory authorities, were allowed to fail.

"This framework should not as a rescue package for Tepco." Trade Minister Banri Kaieda we said this framework achieves compensation quickly... can take place for the victims and thus can provide power Tepco in a stable manner, "Reporters."

Minister tries also ensure to alleviate, end consumers would shoulders, much of the burden either in the form of higher electricity rates or new taxes, saying that the impact should be limited to both to a minimum.

The Government will need to pass a new law in the Parliament, to implement the plan, and analysts said the opposition, the schema, but critically will block difficult it as it will effectively mean a delay in compensating the victims of disasters.

The special bonds can be in cash, which handle first burst of payments and Tepco said the first payments to farmers and fishermen to make it concerned until the end of this month by the disaster.

More than 70,000 people in a largely rural area within a radius of 20 km (12 miles) of the plant had to evacuated. About 136,000 people within a zone extending for 10 km were advised to stay young.

Some analysts estimated that somewhere between $20 and $130 billion, depending on how long the crisis persists could be compensation claims.

S & P said that the probability that Tepco very high, but an increase in the radiation from the nuclear power plant leaks would get exceptional support from the Government was the risk of further assessments could charge cuts.

Delay
While the Government was trying to navigate the political minefield around the compensation plan, a further setback confronted 240 km north of Tokyo workers at the site of Fukushima Daiichi after a water leak in one of the reactors of this week was discovered.

TEPCO said on Friday that the discovery of the leaking water from the affected plant No. 1 reactor set up his plan to a more permanent cooling system for the installation could complicate. Some outside experts were skeptical for weeks over Japan's plan to stabilize the Fukushima Daiichi reactors from January.

Kaieda said, a delay in this timetable is now likely.

"I think this is an important factor, which require a change in Tokyo Electric roadmap to bring the situation under control," said Kaieda.

Early in the week, Tepco said it had sealed a leak of radioactive water outside the plant No 3 reactor. The No. 2 reactor developed similar leaks with liquid glass and other materials were sealed in April.

The 9.0 earthquake and tsunami that followed killed more than 15,000 people, said the national policy agency. More than 9,500 employees are missing.

Since the disaster of the work disabled Fukushima Daiichi cooling systems, Tepco has on the reactors of catastrophic meltdowns prevent water poured. The utility has by encrypted means for storing the contaminated water, of which some has leaked into the ocean to find.

The world's worst nuclear crisis in a quarter century Tokyo, prompted to rethink their energy policy, which strongly to rely on nuclear power as the most important alternative to fossil fuels.

Last week, Prime Minister Naoto Kan told another power utility to close a nuclear power plant in an earthquake-prone area. He moved both applause for bold action and critics a rash and poorly planned directive said fire for what step was.

Movement kindled fears that budget and Enterprise power outages take roles in the summer when electricity use is the highest.

TEPCO said on Friday that it planned to closed, since the March 11 quake and the restart by the end of July, that it should be conventional thermal plants able enough power supply to meet peak demand.

Kaieda said, who do their best to prevent power outages Government.

China's food created inflation, hungry gourmets

4:44 PM Chinas, created, gourmets, Hungry, inflation No Comments

BEIJING - hunger what such a constant companion in Yao Qizhong's childhood that even now, at age 40, he'll stoop down to salvage a single clove of garlic that if from his table at the Beijing market where he hawks fresh produce.

Life is less harsh these days, but China's fast-rising food prices have hit his family hard, making it increasingly difficult to save for his three kids' education - Yao's main goal.

Across town, Zhong Sheng rinses a still-twitching Mandarin fish and picks the system from a handful of greens as he expounds on his philosophy of grocery shopping. Health and safety are his top concerns, ever since the architect became a father five years ago. Cost is a secondary consideration.

"You can buy cheap stuff," says Zhong as he and his wife cooked together and the smells of soy and scallion filled their cozy kitchen, "but if it makes you sick, you're going to end up paying more anyway in hospital fees."

The starkly contrasting fortunes of the Zhong and Yao families offer a glimpse into how soaring food prices are playing out in the developing world - home to more than three quarters of the globe's 6.9 billion people.

Prosperity and a nearly-growing middle class have cultivated more sophisticated and exotic tastes. Such luxuries as blueberries, avocado, asparagus, and endive, recently unattainable to all but the wealthiest, are now widely available in China's big cities.

But rising affluence has taxed the ability of farmers to meet growing demand while the rural labor pool dwindles. The result: rising food prices hit every level of society, not just those who can afford imported South American bananas or pricey mushrooms and herbs from China's remote Yunnan province. People on low or fixed incomes feel the pinch most.

"We do not dare to try and eat good stuff because we can't afford it," says Yao, whose four grandparents starved to death during China's 1960 famine. Hey what so poor growing up in rural Anhui province that his neighbors assumed he would end up a beggar on the streets.

"If I go to a supermarket," he says, "it's a novelty, like sightseeing."

In China, farm workers have flocked by the millions to factory and service jobs in coastal cities. Luring them back to till and weed by hand is proving a tough sell. The resulting supply pinch helped send food prices up 11.7 percent in March from the year before, adding to months of steep increases.

"You can't find (farm) workers and they're expensive, over a dollar (7 yuan) an hour," said Liu Li, a wholesaler hawking NAPA cabbage and coriander at Beijing's Xinfadi, north China's biggest agricultural distribution center.

People in the countryside want factory work or a job in the service industry, where they'd get to stay indoors and have a warm place to sleep, said Liu. Farm work, she said, is "too dirty and too hard."

Even with sharply higher food prices, Zhong, who runs his own business and has a master's degree from a prestigious Beijing university, can afford to be picky. Besides he sees good reason to favor more expensive organically grown and imported foods after infant formula tainted with an industrial chemical killed six children and sickened 300,000 in China in 2008.

Zhong, his wife and daughter sit down to a typical dinner of steamed fish, two types of greens, mushrooms, pork, rice and sliced apples. Total cost, about 80 yuan ($12). Each month the family spends some 2,000 yuan ($307) on food - about 10 percent of their income.

Yao, who left the countryside more ago, eats like a peasant, filling up on cheap still steamed buns and noodles than two decades and pinching every penny so that he can put his kids through school. For him, meat is a once-a-week treat, though he tries to make sure his children eat it more often.

As a migrant laborer, Yao has been able to skirt China's strict birth limits, having three kids instead of the two most rural families are limited to. But his migrant status means he must pay school fees himself.

A recent and routine lunch Yao and his for wife and children what a bowl of simple noodles with greens. Stall a Yao's ginger and garlic earns him about 2,000 yuan ($307) a month, of which about 600 yuan ($92) goes on food for his five-person family.

"I need to save money but I feel like I am already scraping the bottom of the barrel," he said. "At the same time, I know we have to feed ourselves and eat enough, otherwise our health is going to be affected."

A host of other factors are also blamed for food prices hikes in China and elsewhere in Asia, including too much money sloshing about the economy after stimulus policies that warded off the global recession, rising oil prices and shrinking land for cultivation because of pollution and encroachment by industry.

The U.N. food and Agriculture Office's index of global prices for meat, cereals and dairy foods has surged 37 percent in the first three months of 2011. In many Asian countries, that has translated into a 10 percent increase in local food prices, which the Asian Development Bank estimates is enough to drag people another 64 million below the $1.25 a day poverty line.

Yet the changes in food and work preferences aren't all bad because they reflect the human and economic development taking place in China, said Scott Rozelle, an agricultural economist at Stanford University and an expert on China's food markets.

Rozelle says that China's scattered and small scale farms are becoming more conolidated and mechanized, which could eventualy raise productivity, but the changes probably won't stop food prices from rising. Economic development involves both increases in prices and incomes, he says.

Higher food prices have in fact lifted lagging rural incomes. The per capita net income for rural Chinese grew faster than urban incomes last year, jumping 10 percent to 5,919 yuan ($902).

Rural Chinese are "going from grinding poor to poor," said Rozelle, describing villages he's seen with new brick homes and gravel roads, where all the girls go to school and every family has a mobile phone.

But the changes feel painful for many urban dwellers, particularly retirees, civil servants and migrants, like Yao, whose incomes haven't kept pace. And the discontent that a widening gap between privileged and poor can generate deeply worries China's communist leaders, who are mindful that the anti-government protests that toppled Egypt's government earlier this year were triggered in part by discontent over climbing food costs.

Yao says he envies people who can eat what they like without concern for cost, but tries not to dwell on it.

"Yes, it's unfair," he said. "But I know I just have to keep going." "I have to work hard and it will get better."

Even those benefiting from China's rising prosperity such as Zhong, the Beijing architect, are concerned.

"Their incomes are not rising as of nearly so for them this is difficult," he said. "I think the government needs to find a way to help them raise that sector's incomes too, and take care of them."

Residents allows first visits to nuclear zone

6:36 PM allows, first, nuclear, Residents, visits No Comments

TOKYO - over 100 evacuated in the exclusion zone to Japan's troubled Fukushima Dai-Ichi nuclear plant Tuesday for a short visit membership were to collect from their homes.

The trip was the first time the Government felt secure enough in the security of the area even short trips it will sanction has. People are pushing hard for weeks for the permission to check on their homes.

The evacuated - only a fraction of the tens of thousands forced to flee as the work of radiation began leaking after 11 March earthquake and tsunami government chartered buses for the two-hour visit on board.

You have been with protective suits, goggles and face masks carry the zone have been made available and issued plastic bags, to put their stuff. They were also certain dosimeters radiation levels and Walkie-talkies monitor.

All were for radiation contamination after leaving the 12-mile (20 km) can be seen.

More visits are planned in the coming months, but residents fear that they can return never for good.

Many had was secretly sneaking back into the zone during the day, but the Government, concerned about security and the possibility of theft - enforce stricter began road-blocks and imposing fines on 22 April.

Official visits were seen as a compromise, to take into account the security and the wishes of the inhabitants.

Nine towns and villages are subject to the No. go zone order, and some are more on the alert for a possible evacuation in the near future. Tens of thousands of residents of the area live still in evacuation shelters, although many of the houses of relatives or apartments at other locations across the country have scattered.

Government officials and the Tokyo Electric Power Co., which runs the Dai-Ichi course, have said that it could be six to nine months before the residents could return to resume their lives. But they admit that this is a best case scenario.

Continue to repair the battle workers and to stabilize the plant, but it radioactive in some areas progress remains high, slow and dangerous.

Cash running dry, Libya says opposition minister

6:22 AM Libya, Minister, opposition, running No Comments

Basic goods are increasingly scarce in eastern Libya and the opposition government is rapidly running out of cash to fund its battle against Moammar Gadhafi, its Libyan-American finance minister said Monday.

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The opposition Interim Transitional National Council (TNC) has been operating off money in the central bank and other private and public banks in rebel-held eastern Libya, said Ali Tarhouni, 60, a senior economics lecturer at the University of Washington before he rushed home to serve the opposition as minister of finance, oil and economics.

"We're running out of that money," he told msnbc.com in an interview in Washington, D.C., confirming a Reuters report that the opposition had three to four weeks of funds left. "No money is coming in from outside so far."

Among the challenges facing Tarhouni, who went into exile in 1974 and was sentenced to death in absentia by Gadhafi for his pro-democracy activities, are money-hoarding and foreign-exchange liquidity.

"We're faced with the same sanctions as Gadhafi," he said, referring to U.S. sanctions that have frozen more than $34 billion of Libyan government assets, in addition to U.N. and European sanctions. "I don't have access to any foreign exchange to cover any purchases, open lines of credits to merchants, so that's a very challenging aspect to what I do."

Video: Funds running short for basic needs (on this page)

Part of the reason for his first U.S. trip since he left in late February to join the fledgling opposition council is to push for the quick unfreezing of some Libyan assets that the opposition has access to. U.S. Secretary of State Hillary Clinton said last weekend that the U.S. is willing to free up some of the funds, possibly $150 million in the short term.

'Time ... is of the essence'
"We need access to these sovereign funds, these frozen assets to finance the purchase of fuel, medicine, food — and it's an urgent matter, can't really wait," Tarhouni said. "… We're in a war, it's a question of speed, it's a question of time; time again is of the essence for this revolution."

The oil fields under the council's control are producing, but only small amounts "that are not going to solve my economic problems," said Tarhouni, who is originally from the eastern city of Benghazi.

"My strategy for the oil sector is very simple: It's steady as she goes," he said, noting he had been in contact with many of the foreign oil companies and that all contracts would be honored — no matter who signed the deals. "I'm not looking at this sector now as a major producer of revenue to help our quest for liberating the rest of Libya."

Finding sources of income is "really the challenging aspect of what I am doing," he said. "Running an economy even during regular time is a challenging or tough assignment, but running it during a war with limited resources is that much more challenging."

Last week in Rome, the Libya Contact Group — 22 countries and organizations, including the U.S. — decided to create a fund that the rebels can use to provide for basic needs, The Associated Press reported. Nations have already pledged $250 million in humanitarian aid, Italy's Foreign Minister Franco Frattini said.

But humanitarian aid won't enable the opposition forces to gain the upper hand on the battlefield, since it can't be used to buy modern weaponry, Tarhouni said.

But the opposition leadership draws encouragement from the fact that Gadhafi's financial woes are almost as bad as theirs.

"It's very hard to make a case for his survival," said Tarhouni. "Here is a dictator who basically lost legitimacy globally, in the Arab world, the Islamic world, domestically. He is encircled. He can't really get access to any of money, at least in amounts that solve his problems. He can't get the armament that he wants … so basically he is getting squeezed. How could he survive; how could he last long? It's just a question of time."

Underestimating Gadhafi's strength
But Tarhouni, who holds a doctorate in economics and finance from Michigan State University, acknowledges that some members of the opposition thought Gadhafi would have been kicked out of the country sooner.

"We definitely underestimated his military strength and we also underestimated his ability to survive," he said. "The gamble was that all of the other cities would join in, and this didn't happen as fast, and he had a little bit of time to get himself ready."

The conflict has raged across Libya since mid-February. After a series of rebellions swept through numerous cities, Gadhafi's forces mounted a counterattack, allegedly using cluster bombs and anti-aircraft weapons against civilians. In mid-March, Gadhafi made a strong push across the country's east, until the U.N. Security Council approved a no-fly zone to protect civilians — and NATO stepped in to enforce it.

"He showed his face that for him to survive, for him to stay in power, there are really no limits," Tarhouni said, adding that he believed Gadhafi had been committing crimes against humanity during his 42 years in power.

Tarhouni, who said he clashed ideologically with Gadhafi while a member of a pro-democracy student union in Libya, left the country in 1974. He said his name was put on a hit list in the 1980s and that at least 20 people on that list were killed in Europe.

Video: Libyan opposition leader describes what started his rebellion (on this page)

He also said that Gadhafi reached out to him at various times in apparent bids for reconciliation.

"Throughout the years, he sent different emissaries to me and to other opposition members, but I refused to talk to him," Tarhouni said. "I always thought they are illegitimate thugs who basically took a peaceful country and changed it to a cesspool for no reason whatsoever — and I took that personal.”

After moving to the U.S. and lining up a teaching position, he said he had started to lose hope that a revolt would take place. But once it happened, he said he knew exactly what he had to do.

'The best decision I've ever made'
"I didn't hesitate, and I think that's the best decision that I ever made," he said, noting he had the support of his wife and four children — three sons and a daughter ranging in ages from 16 to 28. "I'm doing exactly what I want to do, what I dreamed of doing."

Despite the seemingly obvious risks, he said he wasn't taking any.

"I think the thousands of people who died are the ones who took the real risk," he said, adding that back home in Seattle the hardest decisions were deciding what to have for lunch or which highway to take. "It's amazing how we change over a short period of time."

He raised the risk-taking to another level when he hopped on a small fishing boat and made the perilous journey to the besieged city of Misrata, which lies on a road linking the key oil town of Sirte — the base of Gadhafi's tribe — in the east to Tripoli in the west.

Video: Misrata is the key to the fight for Libya (on this page)

The city, the country's third largest, has endured continuous attacks from Gadhafi forces, as well as shortages of food, fuel and medicine. Despite the onslaught and deprivation, opposition fighters have recently retaken much of the city.

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"I went to Misrata to raise the morale of the people, yeah, and actually … they raised my morale," Tarhouni said. "It's a city that basically understands, not only that they are defending their city, they know exactly that they are defending the future of Libya. The strategic position of Misrata, his attempt to separate west from east, it's very clear for them. … They are brave people."

Seeking U.S. recognition
Tarhouni will visit with several high-ranking U.S. officials and members of Congress during his visit, where he plans to also push Washington to recognize the council as the legitimate government of Libya.

Last week, the council's prime minister presented plans for an interim government, including a committee to draw up a constitution that the people would vote on, and parliamentary and presidential elections, AP reported.

Still, Tarhouni doesn't expect the road to a unified Libya with a democratic government will be easy.

"It's going to be challenging. You need to build a lot of institutions from scratch. Having a constitution by itself doesn't mean that you have a democracy … you need to inform people and you need to teach people," he said. "… We will tackle this. … We will build a decent society for the next generations."

Greece hit by new downgrade, EU ponders more help

12:42 AM downgrade, Greece, ponders No Comments

Their concern about Greece's massive debt signals LONDON - two major credit agencies on Monday, believe new loans to the view that European authorities must do more, avoid help to the country a year after it hardly bankruptcy with a bailout.

Experts from the European Union and the International Monetary Fund were in Greece on Monday on economic reforms check, until the Government promised, in return for euro110 billion ($160 billion) in rescue loans last year. They were also to check if the current bailout is enough as Athens can stand on their own two feet again, when the loan expire in 2013 - a scenario most investors think is unlikely.

Credit-rating agency standard & poor cut Greece bond grade further into junk status Monday, said increasingly likely that Greece would be more time to repay of its bailout loans, and that Greece would be held to negotiate a similar deal on bonds of commercial investors.

S & P downgraded the long-term bonds by BB-b, said that would have Greece finally access to partially by default take in up to 50 percent of the debt. As a result said the agency it Greece again could downgrade in the coming months.

Also credit rating agency of Moody's said it Greece the credit rating on review for a further possible downgrade, referring "the increased uncertainty about the sustainability Greek sovereign debt." had placed on the Monday,

Greek Government called the the downs "unjustified" and based largely on "market rumours and press reports," while Socialist Prime Minister George Papandreou to investors lashed out, which he said were betting on Greek standard.

"Credit default swaps are traded without transparency and threaten to reduce the entire countries and whole societies," Papandreou said. "they are bankruptcy and the resolution of the euro to our." "But their efforts in vain."

Although Greece issued strict austerity measures, has the economic reform and a euro50 billion ($ 73 billion) Privatisation programme announced the slow improvement of public finances.

In particular problems the Government raise revenue through taxes, remains the country in a recession. The result is a gap in the coming years it is estimated that some euro30 billion ($ 44 billion).

"It had already become that Greece probably unable to meet its debt obligations in the next few years without any other help,", said Jane Foley, senior currency strategist at Rabobank international.

"Instead of return on the market next year as the original bailout adopted, now it seems pretty likely that Greece is instead more funding from the EU, questions," she said.

Further measures are probably June, when the EU/IMF assessment is reported the trigger.

"Then we these results will be evaluated," said Martin Kotthaus, spokesman for German Finance Minister Wolfgang Schaeuble, the question of additional help for Greece.

Market jitters the situation with his Greek, French and Italian colleagues, as well as European Central Bank President Jean-Claude Trichet and the EU were called stoked Friday as Schaeuble discussed Monetary Affairs Commissioner Olli Rehn in a meeting Luxembourg Prime Minister Jean-Claude Juncker.

"We think that Greece need further customization program," said Juncker, the also the meetings of the euro area 17 Finance Minister chairs. Trichet on Monday expressed muted agreement with this position.

Still, a EU official Monday said that more help or simple bailout were conditions for Greece far from done deal. Was the official on condition of anonymity because of the sensitivity of the matter speak.

At the meeting, Greek Finance Minister George Papaconstantinou was said his Government had to "strengthen" supply efforts the reforms promised for the bailout, the EU of official said.

If Greece borrow money over ten years now wanted to, would have to more than 15 percent on investors part with their cash get a staggeringly high rate of interest payable. Two year bond, interest rates are still higher - over 25 percent.

This is unsustainable and compares with the 2 to 3 percent, which would have to - pay Germany an incredible difference between countries, the same currency and work under the same monetary policy.

PAPACONSTANTINOU has already asked to extend the loan and the repayment of his country's international creditors, which facilitate conditions of Greece's bailout by lowering interest rates.

But most analysts believe that a further bailout would be only another short-term solution. Debt restructuring - voluntarily or involuntarily - could more efficiently, but bondholders would have to repay more time give Greece or be assumed that their bonds have the same value as if they bought it.

So far, European officials have vehemently denied that a restructuring on the cards let alone discussed before 2013, when one picks up new emergency funds. Investors are skeptical but such denials, because EU officials have breathtaking turns crisis during the past year.

The markets are clearly of the view that Greece its debt in the form of one or the other was restructuring - the yield on the 10-year bond to an another 0.11 percentage points to an amazing 15,62 percent on Monday.

"The chain of events is increasingly show the borders of the EU muddle-through strategy," said Christian Carrillo, analyst at Societe Generale.

Steinhauser of Brussels reported. Juergen Baetz in Berlin, Derek Gatopoulos in Athens and David McHugh in Basel, Switzerland, wore.

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