Tuesday, June 24, 2008

Bill Clinton backs Obama, but that doesn't mean they're bosom buddies

Former President Clinton on Tuesday offered to help Barack Obama win the White House, although what work he'll do for his wife's former rival remained uncertain.

The Obama campaign is still smarting over some of Bill Clinton's criticism in the primary race, while the last Democratic president remains a popular political draw. But before the two can work together, they have to speak.

Obama and Hillary Rodham Clinton have taken steps to join efforts in the last three weeks — she met with him privately, endorsed his campaign and will campaign with him Friday. But the former Democratic president and the man running to be the next one haven't talked since the campaign ended.

Obama spokesman Bill Burton said the 42nd president came up in a phone call between Obama and Hillary Clinton on Sunday. They talked about how Obama should connect with Bill Clinton in the future, Burton said.

Bill Clinton extended his support to Obama for the first time Tuesday in a one-sentence statement from spokesman Matt McKenna.

"President Clinton is obviously committed to doing whatever he can and is asked to do to ensure Senator Obama is the next president of the United States," McKenna said.

It's not clear what Obama might ask him to do. The campaign wasn't specific when asked.

"A unified Democratic Party is going to be a powerful force for change this year and we're confident President Clinton will play a big role in that," was all Burton would say.

Bill Clinton will not be attending the rally with his wife and Obama Friday in the symbolic town of Unity, N.H. McKenna said the former president is in Europe this week to celebrate Nelson Mandela's 90th birthday, give speeches and work for the William J. Clinton Foundation.

Hillary Clinton spokesman Mo Elleithee issued a statement after her husband's that didn't mention him. "Senator Clinton is very pleased with how quickly the party is coming together after the primaries, and she will continue to do everything she can to unite Democrats behind Senator Obama as our nominee," Elleithee said.

Bill Clinton was an outspoken critic of Obama during the primary race. He said Obama's opposition to the Iraq war was a "fairy tale" and raised questions about whether the first-term Illinois senator had the experience to lead the country. His remarks angered some black leaders who felt Clinton was dismissing Obama's historic bid, as when he compared Obama's win in South Carolina to Jesse Jackson's victories there in the 1980s.

Clinton fumed in response that it was Obama's campaign that "played the race card on me."

Storm hits China after lashing Philippines

Tropical storm Fengshen surged toward Taiwan and southeast China on Wednesday after leaving a path of destruction in the Philippines where the search for more survivors from a capsized ferry has proved fruitless.


Survivors who had spent 48 hours drifting in the sea after the ferry sunk recover in hospital.

1 of 3 Fengshen was downgraded to a tropical storm late Tuesday. But it still managed to shut down much of Hong Kong. Schools, courts and even the financial markets were closed for part of Wednesday, The Associated Press reported.

In the Philippines, meanwhile, people struggled to recover from Fengshen's deadly impact as a typhoon when it hit the country last weekend.

Divers found bodies but so far no survivors inside the hull of the ferry that capsized in the typhoon, a Philippine Coast Guard official said Tuesday.

A total of 864 people -- 725 of them passengers -- were aboard the Princess of the Stars when it overturned about a mile off Sibuyan Island early Saturday as Typhoon Fengshen pummeled the Philippines, according to the ship's owner, Sulpicio Lines. Watch the storm hit Hong Kong »

Rescuers earlier found at least 34 survivors and at least 11 dead from a ferry that capsized in a typhoon, the Philippine Information Agency said Monday.

Divers received no response on Monday when they hammered on the 23,824-ton Princess of Stars that was jutting from the water off Sibuyan island in the central Philippines.

"We're not ruling out that somebody there is still alive," coast guard chief Wilfredo Tamayo told The Associated Press. "You can never tell."

But high seas that have prevented rescue ships from approaching the ferry showed no sign of abating Monday as officials planned how to enter the ship -- either with divers or by drilling a hole in the hull, Tamayo said. Watch aerial pictures of the sunken ferry »

Hope faded by the hour that large numbers of survivors will be found on land where communications were hit by the weekend storm that killed at least 163 people.

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Officials added that they have also found victims and survivors from other fishing boats that capsized in the area.

A U.S. Navy ship equipped with helicopters will soon join the search and rescue effort, said Richard Gordon, the head of the Philippines Red Cross and a member of the country's Senate.

Fishermen found 30 survivors from the ferry Princess of Stars, which rolled over early Saturday morning, Gordon said. One person died after being picked up, and another was lost during rescue efforts, he said, but the remaining 28 have been delivered to police.

"There's quite a few people out there that are still missing," he said. "We are trying our best to find them, and I hope we could get some help." Watch images of the ferry sinking »

The Princess of Stars had 864 people on board, according to the vessel's owner, Sulipicio Lines. The manifest posted on the company's Web site lists 725 passengers, 112 crew members and 27 others including security escorts, canteen personnel, and sea marshalls.

It overturned about a mile off the shore of Sibuyan Island early Saturday as Typhoon Fengshen pummeled the Philippines.

Sulipicio said the family of each person killed in the accident will receive 200,000 pesos (approximately $4,600), the Philippine Information Agency reported.

The crew of the vessel, which can hold up to 2,000 people, reported that its engines had failed during a regular run from Manila and Cebu City, according to Vice Adm. Wilfredo Tamayo, the head of the country's coast guard.

Rescuers knocked on the ferry's hull Sunday evening in hopes of hearing signs of survivors within the capsized ship, the captain of which had given orders to abandon it before contact was lost. Watch a report on the disaster »

"Many of them were wearing life jackets," Gordon said. "Hopefully we can still find them alive."

The typhoon has killed at least 140 people on land, with at least 255 more reported missing, he said.

The storm had not been expected to hit the Philippines when it first formed last week. But the storm struck the islands Friday with winds of about 140 km/h (90 p.m.) before moving north toward China and Taiwan. A storm warning posted along the ferry's course would not have required the vessel to cancel its trip, but relatives of the passengers have questioned why the ship was allowed to leave port.

"They should not have let the ship sail because there was a typhoon coming," Isadora Salinas said. "How can they do that? They won't even give out information about what happened."

Gordon said Sulpicio Lines -- which operates the ferry -- has a history of previous accidents, "and people are pouncing on them right now."

Sunday, June 22, 2008

700 Missing After Philippines Typhoon

Hundreds of passengers were feared trapped and may have died after their ferry capsized in the Philippines during Typhoon Fengshen, said two survivors who struggled to shore Sunday.

The storm left at least 155 dead, submerging entire communities and setting off landslides, said Sen. Richard Gordon, head of the national Red Cross, but there were concerns the death toll would jump dramatically.

The 72 people listed as missing did not include the more than 740 passengers and crew aboard the MV Princess of Stars, and worried relatives wept as they waited for news. Gordon said he has asked U.S. authorities for help in finding anyone who might still be alive inside the ferry and was told "they are going to try very, very hard."

A rescue ship battling huge waves and strong winds reached the ferry Sunday, one end jutting out of the water upside-down, more than 24 hours after it lost radio contact. There was no sign of survivors at the site, and only four people who were on board were known to have reached shore alive.

"They haven't seen anyone. They're scouring the area. They're studying the direction of the waves to determine where survivors may have drifted," coast guard spokesman Lt. Senior Grade Arman Balilo said.


Villagers found six bodies — including a man and a woman who had bound themselves together — along with children's slippers and life jackets that washed ashore nearby.

Officials were checking reports that a large number of survivors might have reached one nearby island and that a lift raft was spotted off another, coast guard spokesman Cmdr. Antonio Cuasito said.

"We can only pray that there are many survivors so we can reduce the number of casualties," he said.

Reynato Lanoria, a janitor on the ship, estimated about 100 people could have survived, "but the others were trapped inside."

"I think they are all dead by now," he told DZMM radio after making it to shore by jumping in the water and reaching a life raft.

Wednesday, June 18, 2008

Stocks open lower as FedEx issues profit warning

Stocks declined early Wednesday after FedEx Corp. warned that weakening demand and surging fuel costs would likely leave its fiscal 2009 profit well below what Wall Street had been predicting.

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The shipping concern's difficulties with surging energy costs serve as the latest sign that the spike in oil prices, which have nearly doubled in the past year, are exacting a burdensome tax on businesses and consumers alike.

Wall Street is also digesting results from another trouble spot in the economy: the financial sector. Morgan Stanley reported a stronger-than-expected fiscal second-quarter profit because of increased trading and asset sales. But earnings at the nation's second-largest investment bank fell 61 percent from a year earlier as revenue declined sharply.

And a regional bank, Fifth Third Bancorp, said it plans to cut its dividend by nearly two-thirds, raise $1 billion through an offering of preferred stock and raise another $1 billion through the sale of businesses.

In the first hour of trading, the Dow Jones industrial average fell 39.73, or 0.33 percent, to 12,120.57.

Broader stock indicators also declined. The Standard & Poor's 500 index fell 6.98, or 0.52 percent, to 1,343.95, and the Nasdaq composite index fell 11.01, or 0.45 percent, to 2,446.72. The blue chips fell more than 100 points Tuesday.

Light, sweet crude rose 38 cents to $134.39 in premarket electronic trading on the New York Mercantile Exchange. Weekly government domestic inventory figures were due at midmorning. Though often volatile, the week-to-week numbers have drawn increased attention in recent months as investors look for any clues about where energy prices are headed.

The run-up in oil has unnerved some on Wall Street and raised the prospect that strapped consumers are going to pare spending on some discretionary items because they are forced to reach deeper into their wallets at the gas pump.

Bond prices rose as stocks declined. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 4.19 percent from 4.20 percent late Tuesday. The dollar was mixed against other major currencies, while gold prices rose.

In corporate news, FedEx predicts it will earn $4.75 to $5.25 per share for the fiscal year that began this month, below the $5.92 per share analysts had expected, according to Thomson Financial. The stock fell $2.21, or 2.6 percent, to $82.12.

Among financials — one of the weakest performing sectors in the early going — Morgan Stanley fell $1.87, or 4.6 percent, to $38.72, while Fifth Third declined $2.07, or 16.3 percent, to $10.66.

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Tuesday, June 17, 2008

India inflation to head up, ease by end-2008

India's headline inflation rate is likely to hover at 8 to 9 percent for some time and will hit double digits before declining in the last quarter of calendar 2008, its chief statistician said on Tuesday.

India's most widely watched inflation measure, the wholesale price index (WPI), is already at a seven-year high of 8.75 percent and the Reserve Bank of India (RBI) unexpectedly raised its key lending rate last week to 8.0 percent in an effort to calm prices.

Economists expect the impact of a hike in government-set fuel prices early in June will push the WPI to a 13-year peak above 9 percent this month. The early June data is due this Friday.

Pronab Sen, secretary at the ministry of statistics and programme implementation, told Reuters in an interview primary price increases had been factored in but second-round increases were now coming through into the inflation numbers.

"Numerically, I suspect it's going to hang around at somewhere between the 8 and 9 percent mark for a while," Sen said.

Asked if inflation would reach double digits, he replied: "It will touch it but it's not likely to stay there for very long."

Rising costs of raw materials, food and energy worldwide have stoked prices in Asia's third-largest economy, prompting the government to ban some exports and slash some import duties to keep supplies up and prices down.

Inflation is well above the RBI's comfort zone of 5.5 percent and is posing a major policy headache for the communist-backed ruling coalition in the run-up to key state and federal polls later this year and in 2009, as rising prices hit the poorer members of the population the hardest.



BACK TO TREND

India's economy grew 9 percent in the fiscal year which ended in March and Sen said growth was moderating.

"Now we are starting to taper down to the trend and the trend would be somewhere between 8 and 8.5 percent. So I suspect we'll be there somewhere."

But he added that with inflation and efforts to control it, as well as a global slowdown, growth might drop below trend.

"We might actually overshoot on the downward trajectory a little bit, so we might dip slightly below 8 percent but eventually we'll catch up."

The economy has averaged 8.8 percent in the past four years. The RBI expects it will expand at 8-8.5 percent this fiscal year to March, while some economists and policymakers say it could be lower.

On prices, Sen said the peak would depend on how soon demand was compressed and when new industrial capacity came on stream.

"So I'm really looking at the last quarter of the calendar for it to start coming down."

Demand was hard to gauge because of lack of data but there was some evidence of moderation in fast-moving consumer goods and white goods, he said.

Except for steel, capacity was being created across sectors, including pharmaceuticals, auto components, autos and cement, while capital goods, such as engineering plant and machinery, had gained in strength after a late start to capacity addition in 2006.

Inflation eased quickly in late 2007, dropping to just above 3 percent, and Sen said that base effect would give the headline rate an artificial "push-up" at the same time this year.

Where it ended the fiscal year next March would depend on the government's policy on domestic fuel prices, he said.

"A lot depends on what is done on oil prices and that's a policy matter," he said.

Pranab meets Karat to push n-deal

External Affairs Minister Pranab Mukherjee met CPI-M leader Prakash Karat for half an hour Monday night and sought the Left's support in finalising an India-specific safeguards agreement with the IAEA - a crucial step in the conclusion of its nuclear deal with the United States.

Mukherjee, who heads the 15-member United Progressive Alliance (UPA)-Left nuclear panel, had a one-hour talk with Karat during which he reiterated the government's request to allow them to finalise the safeguards agreement that is applicable only to India before International Atomic Energy Agency (IAEA) Director General Mohamed El Baradei completes his term in July, well placed sources confirmed to IANS.

Mukherjee is believed to have told Karat that the communists' apprehension that finalising the IAEA pact would put the politically contentious agreement on auto pilot is 'wrong'.

The UPA-Left panel holds a crucial meeting Wednesday.

According to the sources, Mukherjee, considered the most important member of the cabinet after Prime Minister Manmohan Singh, told Karat that the Left has to 'trust' the government and that the government has not taken any steps without the communist allies' consent so far.

Karat reportedly told Mukherjee that the Left still has apprehensions over the deal but he would discuss the minister's new appeal with the other Left allies and get back to the government. The meeting was held from 8.30-9.30 p.m. at Mukherjee's residence, the sources said.

The minister is also said to have told Karat that the government would in future not make any move without discussing with the Left parties. The sources also said Mukherjee told the Left leader that the UPA government would sign this deal only with adequate parliamentary backing.

According to a senior Congress minister, even party chief Sonia Gandhi has clarified that the nuclear deal should not come at the cost of 'sacrificing the government.'

'We do not want to create a bad precedent by pushing the deal if the government is reduced to a minority,' the minister, who did not wish to be identified, told IANS.

Once the IAEA agreement is finalised, it will be placed before the 45-member Nuclear Suppliers Group (NSG) to get an 'India-specific' waiver to its guideline, thus clearing the way for nuclear commerce between New Delhi and NSG member countries.

Once it passes through the NSG, the US Congress will have to decide if it wants to give its nod to the 123 Agreement to change its domestic laws to allow trade between US companies and India on civilian nuclear energy and technology.

The CPI-M-led Left parties, which extend crucial legislative support to the UPA government, had given the green signal for negotiation with the IAEA - but insisted that it could not be finalised without their approval.

No signs of water yet from Mars lander

In its first chemical analysis of soil from Mars' northern plains, NASA's Phoenix lander has turned up no evidence of water, scientists said Monday.

Still, researchers remained confident that the craft is in the right place to uncover veins of ice believed to lie only inches beneath the surface.



Archive: Phoenix on Mars NASA's Mars Phoenix lander is really cooking nowA soil sample was cooked twice in one of Phoenix's eight ovens over the last few days, according to William Boynton, lead scientist for the Thermal and Evolved-Gas Analyzer, or TEGA. The first test reached 95 degrees, the second 350 degrees.

"Had there been any ice, it would have melted," Boynton said. "We saw no water in the soil whatsoever."

The instrument detected carbon dioxide, hardly a surprise since the thin Martian atmosphere is primarily made up of CO2.

The goal of the $420-million Phoenix mission is to find out whether Mars is, or ever was, suitable for rudimentary life forms. Phoenix landed near Mars' north pole May 25.

The science team at the University of Arizona and the Jet Propulsion Laboratory in La CaƱada Flintridge were not disappointed by the failure to turn up water on the first test sample. Phoenix's nearly 8-foot-long robotic arm has only dug 2 to 3 inches into the soil, at a region named Dodo-Goldilocks. The ice layer, they said, is probably farther down.

The latest images of the trench from which the soil was taken show light-toned material that the scientists think could be ice protruding from the trench's side.

"It looks like we clipped the edge of the top of a polygon," said Ray Arvidson, the lead scientist for the lander's robotic arm.

The polygonal land forms -- small mounds bounded by shallow trenches -- are similar to features that scientists have seen in the Arctic on Earth caused by subsurface ice.

"This could be the tip of the iceberg," Arvidson said.

The science team will next turn its attention to a nearby region called Wonderland, where it thinks the ice layer is close to the surface.

The TEGA ovens are designed to reach 1,800 degrees, because different elements burn off at different temperatures. Tests over the next few weeks should help uncover any water bound up with the minerals, if not water itself, scientists said.

NASA's twin Mars rovers, Spirit and Opportunity, have found evidence that water was once plentiful in the form of standing lakes and streams on Mars' surface.

Scientists now hope to find and test water to help determine whether present-day Mars could be habitable.

The last NASA landers to test for habitability on Mars were the twin Viking probes, which landed in 1976. Neither found any organic molecules that would be a good indicator of Mars' suitability for life.

That caused planetary scientists to virtually abandon Mars for two decades, until a new generation of scientists proposed that life-sustaining conditions might be found underground at the poles.

Scientists were encouraged by findings from the gamma ray spectrometer on the orbiting Mars Odyssey spacecraft, which in 2002 detected a large concentration of hydrogen in the top few feet of soil at the pole. Scientists believed that indicated vast quantities of ice underground.