Life in OUR America, The Livyjr Files Volume 7 Options

[Livyjr]

Published on Wednesday, November 29, 2006 by TomPaine.com

"Message To West Point"

by Bill Moyers

This is an excerpt from the Sol Feinstone Lecture on The Meaning of Freedom delivered by Bill Moyers at the United States Military Academy on November 15, 2006.

People in power should be required to take classes in the poetry of war.

Rupert Murdoch comes to mind—only because he was in the news last week talking about Iraq.

In the months leading up to the invasion Murdoch turned the dogs of war loose in the corridors of his media empire, and they howled for blood, although not their own.

Murdoch himself said, just weeks before the invasion, that:

“The greatest thing to come of this to the world economy, if you could put it that way [as you can, if you are a media mogul], would be $20 a barrel for oil.”

Once the war is behind us, Rupert Murdoch said:

“The whole world will benefit from cheaper oil which will be a bigger stimulus than anything else.”

Today Murdoch says he has no regrets, that he still believes it was right “to go in there,” and that “from a historical perspective” the U.S. death toll in Iraq was “minute.”

http://www.commondreams.org/views06/1129-21.htm

"Gasoline prices add to record gains"

By JOHN WILEN, Associated Press

Last updated: 5:03 p.m., Monday, April 7, 2008

NEW YORK -- Gas prices rose further into record territory Monday, pulled higher by resurgent oil futures and a growing belief that gasoline supplies are falling as the summer driving season approaches.

Oil futures, meanwhile, jumped nearly $3 to more than $109 a barrel as traders bet the Federal Reserve will continue cutting interest rates.

Comments from OPEC suggesting the cartel plans no production increases also boosted oil prices.

At the pump, the national average price of a gallon of gas jumped 3.6 cents over the weekend to a record $3.339, according to AAA and the Oil Price Information Service.

That's 58 cents higher than a year ago.

In New York Mercantile Exchange trading, May gasoline futures rose 2.68 cents to settle at $2.7835 a gallon.

The Energy Department expects retail gas prices to peak above $3.60 a gallon later in the spring, said Guy Caruso, head of the department's Energy Information Administration, according to Dow Jones Newswires.

Many analysts see prices peaking closer to $4 a gallon.

Gas prices are following crude futures higher, but they're also rising on concerns about supplies and demand.

Analysts say refiners have cut back on gasoline production due to low profit margins; the rising price of crude means it costs them more to refine gas.

And last week, the Energy Information Administration said gasoline inventories fell more than expected during the week ended March 28.

Gasoline demand rose for the first time since January, raising the prospect that supplies will fall further as Americans drive more during the spring and summer.

"It's very normal that you see the ratcheting up of (gasoline prices) before its season," said Stephen Schork, an energy trader and analyst in Villanova, Pa.

Despite last week's increase, Caruso expects demand for gasoline to fall by 85,000 barrels a day this summer compared to last due to high prices and the weak economy, Dow Jones reported.

That would be the first summertime decline in gasoline demand since 1991.

To date, however, falling demand has failed to deflate surging gas prices, which are putting more pressure on consumers already suffering from higher food prices, falling home values and a tight job market.

One of the factors pushing food prices higher is diesel fuel, which is used to transport most of the world's food, industrial and consumer goods.

Diesel prices, while holding above $4 a gallon, have retreated lately, and fell 1.5 cents overnight to a national average of $4.007.

In oil trading Monday, May futures rose $2.86 to settle at $109.09 a barrel on the Nymex, crude's highest settlement since March 18, as traders shrugged off a slightly weaker dollar and bet that future Fed rate cuts will weaken the greenback.

A weak dollar attracts investors to hard commodities such as oil, which are seen as a hedge against inflation.

Also, a falling dollar makes oil cheaper to investors overseas.

The prospect that the Organization of Petroleum Exporting Countries will hold production steady this year also pushed oil prices higher Monday.

"OPEC's Secretary-General, Abdullah al-Badri, made it clear over the weekend that the cartel continues to believe that the world is sufficiently supplied with oil and ... has no plans to increase output any time soon," said Addison Armstrong, director of market research at Tradition Energy in Stamford, Conn., in a research note.

Oil futures are nearing last month's trading record of $111.80 a barrel after a swoon that twice brought them briefly below $100.

In other Nymex trading Monday, May heating oil futures rose 9.22 cents to settle at $3.0843 a gallon, while May natural gas futures rose 46.9 cents to settle at $9.791 per 1,000 cubic feet.

Analysts said heating oil and natural gas futures were boosted by forecasts for cooler weather over the next two weeks.

In London, May Brent crude rose $2.24 to settle at $107.14 a barrel on the ICE Futures Exchange.

[Livyjr]

THE BEARDED BUSHIAN BEN BERNANKE IS THE VERY BEST FRIEND THE ENEMIES OF AMERICA COULD EVER HOPE TO HAVE IN THIS WORLD ...

SINGLE-HANDEDLY, THE BEARDED BUSHIAN BEN BERNANKE IS BRINGING AMERICA TO ITS KNEES WITHOUT THE WASTEFUL NEED FOR A SINGLE SHOT BEING FIRED IN OUR DIRECTION ...

And so ...

"Gold jumps as crude oil spikes past $109"

By STEVENSON JACOBS, Associated Press

Last updated: 5:02 p.m., Monday, April 7, 2008

NEW YORK -- Gold futures rose sharply Monday after crude oil jumped above $109 a barrel, an inflationary sign that prompted investors to buy the metal as a safe-haven asset.

Silver also rose.

Other commodities traded mixed, with copper and heating oil futures rising and agriculture products falling.

High energy prices have added to headaches for consumers already struggling with rising food costs, dropping home values and scarce jobs.

The inflationary pressure has fed buying of precious metals like gold, which is viewed by investors as a safe, alternative investment during times of rising prices and economic uncertainty.

"Higher energy prices are really about higher inflation, and the high inflation is supporting gold," said Carlos Sanchez, analyst with CPM Group in New York.

Gold for June delivery added $13.60 to settle at $926.80 an ounce on the New York Mercantile Exchange, after earlier rising as high as $933.70, its highest level in more than a week.

Gold has gained 9 percent so far this year but remains well off its all-time high of $1,038.60, reached on March 17.

"You're seeing many market participants trying to catch that rally."

"Many missed the rally to $1,000 and they don't want to miss it again," Sanchez said.

Other precious metals also rose Monday.

Silver for May delivery added 36.5 cents to settle at $18.120 an ounce on the Nymex, while May copper rose 2.5 cents to settle at $3.9795 a pound.

The rally in metals followed gains in energy futures, which rose sharply Monday as investors bet that the Federal Reserve will continue to lower interest rates, potentially weakening the dollar.

A weaker dollar encourages buying of hard assets like crude oil as a hedge against inflation.

A falling greenback also makes dollar-denominated commodities like oil cheaper for overseas investors.

A signal that the Organization of Petroleum Exporting Countries will hold production steady this year further supported oil prices.

Light, sweet crude for May delivery gained $2.86 to settle at $109.09 a barrel on the Nymex, its highest closing price since March 18.

Other energy futures also rose.

May gasoline futures rose 2.68 cents to settle at $2.7835 a gallon, while May heating oil futures rose 9.22 cents to settle at $3.0843 a gallon.

In agriculture markets, wheat futures plunged in Chicago on expectations that farmers will plant more of the crop to profit from record-high prices.

Wheat for May delivery plummeted 53 cents to settle at $9.2125 a bushel on the Chicago Board of Trade.

Other agriculture prices also traded lower.

Soybeans for May delivery lost 22 cents to $12.55 a bushel on the CBOT, while May corn dropped 8 cents to $5.90 a bushel.

[Livyjr]

"Hundreds flee fight in Shiite stronghold"

By ROBERT H. REID, Associated Press

Last updated: 6:23 p.m., Monday, April 7, 2008

BAGHDAD -- Hundreds of people fled fighting in Baghdad's Shiite militia stronghold Monday as U.S. and Iraqi forces increased pressure on anti-American cleric Muqtada al-Sadr, who faces an ultimatum to either disband his Mahdi Army or give up politics.

Al-Sadr's aides said he would only dismantle the powerful militia if ordered by top Shiite clerics -- who have remained silent throughout the increasingly dangerous showdown.

Although al-Sadr holds considerable influence through the Mahdi fighters -- estimated at up to 60,000 -- political exile for his movement would shatter his dream of becoming the major power broker among the country's Shiite majority.

Gunbattles raged around the sprawling Sadr City district that serves as the Baghdad nerve center of the Mahdi militia, which has been under siege since last week by about 1,000 U.S. and Iraqi troops.

Police said at least 14 civilians were killed in clashes Monday in the Baghdad area, nine of them in Sadr City.

Frightened families poured out of Sadr City -- some carrying their belongings in sacks or piled in pushcarts.

Three American soldiers were killed Monday in separate attacks in the capital -- one by small arms fire and two others by a rocket-propelled grenade, the U.S. said without specifying the neighborhood or whether Shiite extremists were responsible.

At least 10 U.S. soldiers have died in Iraq since Sunday.

The rapid tumble back to street battles in Baghdad -- at an intensity not seen since last year's flood of U.S. troops into the city -- is a worrisome backdrop to Wednesday's planned appearance before Congress by top commander Gen. David Petraeus and Ambassador Ryan Crocker to report on progress in Iraq and prospects for further troop reductions.

With the crisis showing no sign of abating, Prime Minister Nouri al-Maliki raised the stakes.

The Shiite prime minister told CNN on Sunday that al-Sadr and his followers would not be allowed to participate in politics or run in provincial elections this fall "unless they end the Mahdi Army."

Al-Maliki's statement followed a weekend declaration by top Shiite, Sunni and Kurdish leaders to support legislation banning any party that maintained a militia.

Facing broad political opposition, key al-Sadr aides went on the defensive Monday, insisting that banning them from politics would be unconstitutional.

They proposed talks to resolve the standoff.

"We are calling for dialogue as a way to solve problems among Iraqi groups," al-Sadr aide Salah al-Obeidi told AP Television News in the holy city of Najaf.

"Al-Sadr's office affirms that the door is open to reach an understanding regarding these problems."

Another al-Sadr aide, Hassan al-Zarqani, told The Associated Press by telephone from Iran that the Sadrists would consult Grand Ayatollah Ali al-Sistani and other top Shiite clerics in Iraq.

If they "recommend he disband the Mahdi Army, he will obey," al-Zarqani said.

But it was unclear whether the statement signaled any significant change in strategy by Sadrist movement.

Al-Sadr has maintained for years that only the sect's top clergy could disband the Mahdi militia.

Equally unclear was whether al-Sistani and other top clerics would take a public position on the showdown or leave it to the politicians to resolve.

The aged, Iranian-born al-Sistani has remained silent since the latest crisis erupted.

Shiite clerics intervened to resolve the two uprisings against the U.S.-led coalition that al-Sadr led in 2004.

Those agreements allowed al-Sadr to build his followers into a formidable political movement.

But al-Sadr, who is believed to be in Iran, has never faced such intense pressure from a broad political spectrum.

His 30 seats in the 275-member parliament would not be enough to block legislation banning his movement from politics.

Al-Sadr could score significant gains in the Shiite south if his movement competes in the fall elections.

That would shore up his position even without the Mahdi Army, which has tarnished his image among many Shiites because of its role in sectarian violence and crime.

Al-Sadr has called for a mass rally in Baghdad on Wednesday -- the fifth anniversary of the U.S. capture of the city -- to demand an end to the American military presence.

In Washington, White House deputy press secretary Tony Fratto called the planned demonstration "interesting timing" as it coincided with the Petreaus and Crocker testimony on Capitol Hill.

During a press conference Monday, senior Sadrist legislator Bahaa al-Aaraji called for an end to military operations around Sadr City and urged all political parties to help create an "atmosphere of calm" to "end this crisis."

Al-Aaraji also cited an Iraqi government report last year that identified 28 militias -- some believed linked to al-Sadr's Shiite rivals in the government.

"All these militias have infiltrated the government security and military institutions," al-Aaraji said.

"The government has to restructure the security institutions, especially the Interior and Defense ministries, and to lift the cover of legitimacy enjoyed by some militias."

That referred to long-standing allegations that militias from al-Maliki's Dawa party and its allies, the Supreme Islamic Iraqi Council, were simply absorbed into the army and police but maintain clandestine links to their former political sponsors.

"The disbanding of militias is not meant to apply to just one party or one group," al-Maliki adviser Sadiq al-Rikabi told the AP.

"Every political party that wants to contest the next election must disband and disarm its militia."

Hundreds of people fled Sadr City on Monday, trudging past U.S. and Iraqi checkpoints which prevent vehicles moving in and out of the district.

"The situation is getting very tense," said Abu Haider, 50, who left his home with a dozen family members.

"News reports are not encouraging and battles are ongoing."

"It reminds me of when the war started and we had to leave our home."

"Regrettably, history is repeating itself."

The crisis erupted March 25 when al-Maliki launched a crackdown against Shiite militias and so-called "criminal gangs" in Basra.

U.S. and Iraqi officials insisted the crackdown was not aimed at al-Sadr's followers but against criminals and Iranian-backed splinter groups.

However, Mahdi militiamen and other Shiite fighters responded with a wave of attacks across the Shiite south and Baghdad, where extremists pounded the U.S.-controlled Green Zone with rockets and mortars.

Violence eased March 30 when al-Sadr called on his followers to stop fighting under a deal brokered in Iran.

But clashes have continued in Mahdi strongholds in Baghdad as al-Maliki insisted that the crackdown would continue until the government prevails.

"They were making allies with other groups against the government," al-Maliki aide Sami al-Askari said of the Sadrists.

"In parliament, they opposed the government."

"But in the south, their opposition came with weapons."

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Associated Press writers Sameer N. Yacoub and Qassim Abdul-Zahra contributed to this report.

[Livyjr]

IS GENERAL DAVID PETRAEUS AN AMERICAN GENERAL?

OR IS HE REALLY A REPUBLICAN OPERATIVE IN THE UNIFORM OF AN AMERICAN GENERAL?

"Top general in Iraq war to urge patience"

By ANNE FLAHERTY, Associated Press Writer

8 April 2008

WASHINGTON - The four-star general in charge of Iraq wants more time in a war that is now in its sixth year.

Democrats say he's got until the November elections.

Gen. David Petraeus planned to testify Tuesday on the war for the first time in seven months.

He was expected to tell two Senate committees that last year's influx of 30,000 troops in Iraq had helped calm some of the sectarian violence but that to prevent a backslide in security, troops would likely be needed in large numbers through the end of the year.

Under his proposal, as many as 140,000 troops could be in Iraq when voters head to the polls this fall.

Democrats contend that this approach guarantees an open-ended commitment to a $10-billion-a-month war as the economy at home is faltering.

They say the lack of political progress made in Iraq, as well as the recent spike in violence in Basra, indicates the troop buildup has failed.

"We need a strategy that will clearly shift the burden to the Iraqis, that'll begin to take the pressure off our forces, begin to allow us to respond to other challenges in the region and worldwide," said Sen. Jack Reed, D-R.I., a member of the Armed Services Committee.

Democrats also acknowledge that they are more or less helpless in trying to force President Bush's hand on the war.

While anti-war legislation has been able to pass the House, it repeatedly sinks in the Senate, where Democrats lack the 60 votes needed to overcome procedural hurdles.

They contend, however, that come fall dissatisfied voters will head to the polls and put more Democrats in power, possibly including an anti-war president.

In last month's Associated Press-Ipsos poll, only 31 percent said they approve of the job Bush is doing on Iraq.

Indeed, Tuesday's hearings are expected to be about as much as the presidential elections as they are about the state of Iraq.

The three major candidates for president are on the committees for which Petraeus is providing testimony.

Sen. John McCain of Arizona, the No. 1 Republican on the Armed Services Committee, and Sen. Hillary Rodham Clinton, D-N.Y., a member of the panel, are expected to use the morning committee hearing to showcase their opposing views on the war.

Sen. Barack Obama, D-Ill., will get his chance later that afternoon as member of the Foreign Relations Committee.

For now, Petraeus faces a dramatically different political landscape than last fall when support for the war had been eroding steadily among Republicans.

Petraeus' testimony helped shore up GOP defections at the time.

And since then, a significant drop in violence has helped stave off legislation ordering troops home.

Recent statistics reviewed by the AP show that while violence in Iraq is still down substantially, there have been spikes in both deaths and attacks since the slow withdrawal of U.S. troops began in December.

The internal strife was underscored by a rise in ethno-sectarian violence between Iraqis in March, the first such monthly increase since last July.

Defense officials also warned Monday of another likely spike in attacks this week, as U.S. forces strike back at militia fighters in Sadr City.

And officials also said there are indications that al-Qaida is looking for an opportunity to reassert its influence in the Baghdad region.

With the Petraeus testimony approaching, only a subtle shift is expected in the GOP message.

In addition to insisting that troops must stay in Iraq to fight the terrorists, which has been the party line for some time, Republicans are expected to talk more about the need for a comprehensive political settlement among Baghdad politicians.

They believe that this tracks more closely with the voters' views that the U.S. commitment cannot be indefinite.

Petraeus' plan would allow the five extra brigades ordered to Iraq last year to withdraw by July without ordering their replacement.

After that, he and other military officials would wait to see whether Iraq was stable enough to allow additional troops to leave.

His presentation was expected to include statistics reflecting the reduction in violence over the past seven months.

It also will note the latest Iraqi-led operation in Basra and could give lawmakers more detail on the level of Iranian involvement in the fighting.

Ryan Crocker, the U.S. ambassador to Iraq, is expected to testify that there has been modest but positive political progress.

Also this week, possibly on Thursday when Bush addresses the nation on the war, the administration plans to announce that soldiers will spend no longer than 12 months at a time in combat, a decrease of three months in current combat tours.

[Livyjr]

"US stock futures dip on Alcoa, AMD news"

By MADLEN READ, Associated Press

Last updated: 7:22 a.m., Tuesday, April 8, 2008

NEW YORK -- Stocks were poised to open lower Tuesday, after downbeat corporate reports from aluminum company Alcoa Inc. and chip maker Advanced Micro Devices Inc. led off the first-quarter earnings season.

Alcoa, the world's third-largest aluminum producer, said its first-quarter profit dropped by more than half due to higher costs and a weakening U.S. dollar.

The per-share profit of 44 cents was below the average analyst estimate of 48 cents.

Investors were also underwhelmed by news from the chip making sector.

Sales at Advanced Micro Devices for the three months ended March 29 fell 15 percent from the same period a year ago, due to product delays and tough competition from Intel Corp.

AMD's $1.5 billion sales figure was below the average analyst estimate of $1.61 billion, and the company said it plans to eliminate 10 percent of its work force.

Meanwhile, Novellus Systems Inc., another semiconductor maker, lowered its estimate of its first-quarter earnings to a range of 15 cents to 17 cents a share from its previous expectation of 21 cents to 24 cents.

The dreary company reports Tuesday arrived ahead of the release of minutes from the Federal Reserve's meeting March 18, when it lowered interest rates by three-quarters of a point to 2.25 percent.

Investors are also awaiting a National Association of Realtors report on pending home sales in February.

Dow Jones industrial average futures fell 44, or 0.35 percent, to 12,558.

Standard & Poor's 500 index futures declined 5.20, or 0.38 percent, to 1,367.00.

Nasdaq 100 index futures decreased 8.00, or 0.43 percent, to 1,857.75.

On Monday, the major indexes finished narrowly mixed ahead of earnings releases after the bell.

Bond prices dipped from 3.53 percent late Wednesday.

Light, sweet crude fell 40 cents to $108.69 a barrel in premarket electronic trading on the New York Mercantile Exchange.

Gold prices fell, while the dollar was mixed against other major currencies.

Overseas, Japan's Nikkei stock average fell 1.49 percent.

Britain's FTSE 100 slid 0.90 percent, Germany's DAX index lost 1.21 percent, and France's CAC-40 dropped 1.08 percent.

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On the Net:

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

[Livyjr]

"AMD cuts follow Intel restructuring"

By JORDAN ROBERTSON, Associated Press

Last updated: 1:03 a.m., Tuesday, April 8, 2008

SAN FRANCISCO -- Advanced Micro Devices Inc.'s plans to jettison 10 percent of its work force are the latest sign that the seesaw battle between semiconductor rivals Intel Corp. and AMD has taken its toll on both companies.

AMD said Monday that its job cuts, which will amount to more than 1,600 workers out of 16,800 worldwide, are slated to start later this month and finish by September.

The cuts were widely expected as the slumping chip maker has been battered by product delays and burdened by heavy acquisition costs.

The Sunnyvale-based company also warned investors that first-quarter sales were lower than expected across all business lines, a miss that surprised Wall Street.

Sales for the three months ended March 29 came in at about $1.5 billion, a 15 percent drop from the year-ago period and short of the $1.61 billion that analysts polled by Thomson Financial were anticipating.

The company is scheduled to report its full quarterly results April 17.

AMD shares fell 18 cents, or nearly 3 percent, to $6.16 in after-hours trading.

The stock had risen 11 cents to close at $6.34 before the layoffs and sales warning were announced.

The news comes as momentum in the notoriously volatile semiconductor industry has turned for the moment against AMD, whose own momentum just a couple of years ago was a major factor in a major restructuring by Intel.

AMD had not been a player in the lucrative server market until the company launched its first Opteron chip in 2003.

Armed with the energy-efficient chip, AMD stole away valuable market share from Intel and eventually captured about a quarter of the worldwide server market.

The competition hurt Intel, whose profits slid sharply, the result of losing customers to AMD and furiously cutting prices to keep older chips competitive.

In 2006, Santa Clara-based Intel said it was cutting about 10,500 jobs, or about 10 percent of its work force, in a move to save about $3 billion annually.

But now it's AMD that's fallen on hard times as it confronts intensifying competition from Intel, which has regained some lost market share with a powerful line of new chips and has lowered its costs with a new manufacturing process.

Meanwhile, some of AMD's most important products are viewed as out-of-date.

Lengthy product delays for AMD's new Opteron server chip, a product critical to the company's financial recovery, have hurt its competitiveness.

Technical glitches pushed back the chip's full release for months after the official launch in September.

AMD is also struggling to digest its $5.6 billion acquisition of graphics chip maker ATI Technologies Inc., which AMD recently said is worth about 30 percent less than when it was acquired.

AMD views the acquisition as a key way to attack Intel and incorporate better graphics capabilities into its chips.

Graphics are now a key battleground for chip makers as more and more Internet surfing involves video and as the graphics requirements for computer games are heightened.

AMD's losses in 2007 were staggering, capping a brutal two-year stretch in which the company's market value plunged from more than $20 billion to $3.84 billion today.

In 2007, AMD lost $3.38 billion, $2 billion of which were non-cash charges.

Revenues were $6 billion.

The stock has fallen from more than $40 a share in early 2006.

[Livyjr]

"Oil prices slip; gas in volatile trading"

By GEORGE JAHN, Associated Press

Last updated: 7:22 a.m., Tuesday, April 8, 2008

VIENNA, Austria -- Oil prices inched downward Tuesday after jumping by almost $3 a barrel in the previous session on concerns about falling gasoline supplies and expectations that U.S. interest rates will be cut again.

Gasoline prices also fell, but remained volatile ahead of Wednesday report of U.S. oil, gas, diesel and heating oil stocks.

Oil prices had climbed Monday as traders bet that future U.S. Federal Reserve rate cuts will weaken the greenback.

A weak dollar attracts investors to hard commodities such as oil, which are seen as a hedge against inflation.

Also, a falling dollar makes oil cheaper to overseas investors.

"What we're seeing at the moment is still a very high interest in commodities, driven by non-fundamental issues such as a hedge against the falling U.S. dollar," said Mark Pervan, senior commodity strategist with the ANZ Bank in Melbourne.

Light, sweet crude for May delivery slipped by 44 cents to $108.65 a barrel by noon in European electronic trading on the New York Mercantile Exchange.

The contract rose $2.86 overnight to settle at $109.09 a barrel on the Nymex, the highest settlement for a front-month contract since March 18.

Still they remain within striking range of last month's trading record of $111.80 a barrel after a swoon that twice brought them briefly below $100.

The rise is helped by a growing belief that gasoline supplies are falling as the summer driving season in the U.S. approaches.

Last week, the Energy Information Administration said gasoline inventories fell more than expected during the week ended March 28.

Also, gasoline demand rose for the first time since January, last week's EIA report showed, raising the prospect that supplies will fall further as Americans drive more during the spring and summer.

"We're now moving into the gasoline market, so falling gasoline stocks will certainly be supportive of oil prices," Pervan said.

Analysts say refiners have cut back on gasoline production due to low profit margins.

The rising price of crude means it costs refiners more to turn the raw product into motor fuel.

Vienna's JBC Energy, in its daily newsletter said expectations were that newest snapshot of U.S. energy stocks to be released on Wednesday would show a further drawdown in gasoline supplies, with "crude stocks swelling by 2.2 million barrels."

The prospect that the Organization of Petroleum Exporting Countries will hold production steady this year also pushed oil prices higher Monday.

In other Nymex trading Tuesday, May heating oil futures were essentially steady at $3.0872 a gallon (3.8 liters), while May gasoline prices lost more than 2 pennies to fetch $2.7595 a gallon.

Natural gas futures dropped 2.6 cents to $9.765 per 1,000 cubic feet.

In London, May Brent crude fell by 54 cents to $106.60 a barrel on the ICE Futures Exchange after rising $2.24 overnight to settle at $107.14 a barrel.

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Associated Press writer Gillian Wong contributed to this report from Singapore.

[Livyjr]

"5 San Diego officials face SEC charges"

By ELLIOT SPAGAT, Associated Press

Last updated: 9:42 p.m., Monday, April 7, 2008

SAN DIEGO -- The Securities and Exchange Commission filed a civil complaint Monday against five former San Diego city officials, alleging they committed fraud by concealing a ballooning shortfall in the city pension fund.

The SEC said the officials knew the city was underfunding its pension obligations and failed to disclose the extent of its problems to bond-rating agencies or to the investors who bought city bonds in 2002 and 2003.

The complaint mirrors allegations against the nation's eighth-largest city that were settled in November 2006 after the scandal helped force the mayor's resignation.

The SEC ordered the city to hire an independent financial consultant but stopped short of levying fines.

The latest complaint filed in federal court in San Diego seeks unspecified civil fines from former City Manager Michael Uberuaga; former Auditor Edward P. Ryan; former Treasurer Mary E. Vattimo; Patricia Frazier, former deputy city manager for finance; and Teresa A. Webster, former assistant auditor and comptroller.

The complaint claimed the officials knew the city's unfunded pension liability -- the gap between the value of its pension assets and its obligations to retirees -- was expected to soar to about $2 billion in 2009 from $284 million in 2002.

The officials failed to tell investors about the commitments in five bond sales that raised a total of $260 million, the complaint said.

The complaint also said the officials failed to tell investors that the city carried a $1.1 billion liability for retiree health care and that the city had been using above-average returns on pension investments to give bonus checks to retirees since 1980.

Typically, investment gains are set aside to cushion against downturns in the market.

An attorney for Webster, Frank Vecchione, denied that his client acted inappropriately or intentionally misled investors.

"The time has come to put the misperceptions and misrepresentations regarding Ms. Webster and these bonds to rest," he said.

"We intend to do so."

Attorneys for Uberuaga, Ryan, Frazier and Vattimo did not immediately respond to phone messages seeking comment.

Uberuaga resigned in April 2004, two months after the scandal erupted.

The others resigned in 2004 and 2005.

The complaint is the latest turn in a fiscal meltdown that has severely hampered the city's ability to borrow money and ruined its image for managing its money well.

The scandal led to Mayor Dick Murphy's resignation in July 2005.

Five former pension fund officials, including Webster, were indicted by a federal grand jury in 2006 on charges of concealing information from fellow pension board members about a crucial 2002 vote that caused liabilities to rise sharply.

Six former pension officials, including Webster and Vattimo, have also been charged in state court with violating the state conflict-of-interest laws when they voted on the 2002 plan.

No trial date has been set in either case.

It was unclear whether the SEC would pursue civil charges against others.

Kelly Bowers, senior assistant regional director in the SEC's Los Angeles office, said the investigation was ongoing.

San Diego's pension liabilities soared after the City Council decided in 1996 and again in 2002 to avoid payments to the pension fund and, at the same time, enhance retirement benefits.

The complaint says the former officials failed to disclose how those labor pacts would harm pension finances.

Mayor Jerry Sanders, who was elected in the wake of the scandal, said the charges against the former officials were "reminders of our shameful past."

"While they are all owed a presumption of innocence, this is a reminder that those involved will be held to account for their involvement in our past problems," said Sanders, who is running for re-election in June.

Last year, the SEC filed a civil complaint against the city's former outside auditor, Thomas Saiz, saying he committed fraud by signing off on false and misleading financial statements.

As part of a settlement, Saiz agreed to pay a $15,000 penalty.

[Livyjr]

"World Bank expects more high food prices"

By HARRY DUNPHY, Associated Press

Last updated: 8:32 p.m., Monday, April 7, 2008

WASHINGTON -- Rising food prices, which have caused social unrest in several countries, are not a temporary phenomenon, but are likely to persist for several years, World Bank President Robert Zoellick says.

Strong demand, change in diet and the use of biofuels as an alternative source of energy have reduced world food stocks to a level bordering on an emergency, he says.

Speaking to reporters Monday before the bank's spring meeting this coming weekend, Zoellick said the 185-member World Bank would work with other organizations to deal with the crisis by seeking ways to help farmers, especially in Africa, to increase productivity and improve access to food through schools or workplaces.

"This is not a this-year phenomenon," he said, referring to the price spike.

"I think it is going to continue for some time."

Zoellick said bank forecasters looking at food prices have concluded that a serious risk exists of a significant increase in poverty, which for some countries will reverse gains made over the past five to 10 years.

"A recent assessment in Indonesia shows that over three quarters of the poor import more rice than they sell, and an increase in the relative rice price by 10 percent would result in an additional 2 million poor people, about one percent of the population," he said.

In some developing countries the new face of hunger and malnutrition can be found in urban areas, where food is available but people cannot afford it, Zoellick said.

In a speech last week Zoellick called for a "New Deal for Global Food Policy" that would aim to boost agricultural productivity in poor nations.

He said the bank would lend almost twice as much money for agriculture in Africa from $450 million to $850 million.

He also would like to see major government-owned sovereign wealth funds of Asia and the Middle East to join with the bank and invest in Africa.

Zoellick said the bank could help African countries set up an institutional and regulatory systems that would make investors comfortable putting their money to work in these nations.

[Livyjr]

"Washington Mutual raising $7 billion"

By JESSICA MINTZ, Associated Press

Last updated: 5:32 p.m., Tuesday, April 8, 2008

SEATTLE -- Washington Mutual Inc. secured $7 billion in new capital Tuesday, an injection that is aimed at reviving the company despite ballooning loan losses but which may also push it to rethink its strategy, slim down and revamp the management.

The country's largest savings and loan has been badly hurt by rising delinquencies and defaults on mortgages, and efforts last year to rehabilitate its finances fell short despite assurances from management that slashing its dividend, raising nearly $3 billion in a stock sale and leaving the subprime mortgage business would be sufficient.

Washington Mutual said it would get the new capital from an investment group led by private equity group TPG, but will cut its dividend again and post both a wider loss and set aside more in loan loss provisions for the first quarter than had been expected.

TPG founding partner David Bonderman, a former WaMu director, will also rejoin the board.

Separately, the thrift said it will get out of the wholesale lending business, close all remaining standalone home loan centers and lay off about 3,000 workers.

"I think it's enough capital to get them all the way through," said D.A. Davidson & Co. analyst Jim Bradshaw, who said he expects the company to increase the amount it sets aside for delinquencies and mortgage defaults this year to as much as $12 billion, from an earlier forecast for $8 billion.

One wild card remaining is whether "alt-a mortgages," or loans made to people with minor credit problems or who lack documentation for traditional loans, will crumble as spectacularly as the subprime sector did.

The alt-a loans fall between subprime and prime loans in terms of default risk.

In any case, WaMu is unlikely to emerge from the turmoil in the housing and credit markets unchanged, Bradshaw said.

"I suspect the company is going to be smaller a year from now, maybe dramatically smaller," he said.

Other retail banks, such as Bank of America or Wells Fargo, might also raise cash, but for a different reason -- to snap up assets that Washington Mutual can no longer afford to buy, Bradshaw added.

WaMu said Tuesday it will set aside $3.5 billion to cover loan losses in the first quarter -- $1.5 billion more than previously expected -- and expects to lose $1.1 billion for the period.

Wall Street had forecast a loss of $344.3 million, according to a Thomson Financial survey.

Shares of Washington Mutual, which had soared more than 29 percent Monday on news that a capital deal was near, fell $1.31, or 10 percent, to $11.84 on Tuesday.

WaMu's stock tumbled nearly 70 percent last year amid the mortgage and credit crises that have forced leaders of other financial institutions to step down.

So far, Washington Mutual Chief Executive Kerry Killinger's job seems secure.

Bradshaw said the investment group seems comfortable with Killinger in charge as the company seeks stability.

Killinger, who has been at the helm since 1990, received $14.4 million in compensation last year, despite the thrift's struggles.

In the long term, however, Bradshaw said he wouldn't be surprised if the company revamped its entire strategy -- along with its management.

The announcement that WaMu would exit the wholesale lending business and shut down the standalone home loan centers shows some change in direction, said Sebastian Hindman, an analyst at SNL Financial.

While the company can't get away from the home loans market and still be in the savings and loan business, he said that "within their realm they'll definitely reconfigure, re-analyze what their overall strategy is going to be."

The $7 billion infusion is more than what many analysts have deemed adequate to cover losses this year, Hindman said -- even in the most pessimistic scenarios.

But some analysts think a rise in alt-A defaults may still be coming, since they became popular relatively late in the mortgage boom.

Last month, Fitch Ratings put $160 billion of alt-a mortgage-backed securities on review.

"That's really sort of an enigma," Hindman said.

While companies are disclosing more about what types of mortgages they hold, he said it's hard to predict when that boot might drop for WaMu -- if at all.

Victoria Wagner, a credit analyst at S&P, said the TPG-led investment should be enough to keep WaMu going into next year.

But she noted that the company holds a high concentration of mortgages in California, one of the hardest-hit housing markets.

WaMu joins a long list of companies that have raised capital in the wake of problems in the mortgage market, including Countrywide Financial Corp., Thornburg Mortgage Inc., Merrill Lynch & Co., Morgan Stanley and Citigroup Inc.

Under the plan unveiled Tuesday, Washington Mutual will sell equity securities to an investment fund managed by TPG Capital and to other investors in order to raise the $7 billion.

It did not name the other investors.

In return, investors will receive 176 million shares of common stock for $8.75 per share, a 33 percent discount to Monday's closing price of $13.15.

Washington Mutual also issued about 55,000 shares of preferred stock at $100,000 per share that may later be converted to common shares.

To further shore up its capital position, WaMu will also cut its quarterly dividend to 1 cent from 15 cents, saving about $490 million a year.

------

AP Business Writer Stephen Bernard in New York contributed to this report.

[Livyjr]

"Stocks fall after earnings, Fed minutes"

By MADLEN READ, Associated Press

Last updated: 5:42 p.m., Tuesday, April 8, 2008

NEW YORK -- Wall Street retreated Tuesday after aluminum producer Alcoa Inc. and chip maker Advanced Micro Devices Inc. issued disappointing reports and the Federal Reserve voiced concerns about the slumping economy.

Stocks were already lower on worries about weak first-quarter earnings when the minutes from the Fed's March 18 meeting were released.

The minutes showed that some central bank officials, who forecast that the economy would contract during the first half, were concerned about the possibility of a "prolonged and severe" business downturn.

The minutes also indicated that Fed officials were conflicted over how much more interest rates could be reduced at the expense of higher inflation.

The combination of a slow economy but not much more room for interest rate cuts at first rattled investors and sent the Dow Jones industrials to a loss of 86 points, although the blue chips regained some ground in the final hour of trading.

The market's overall steadiness indicated to analysts that investors are more level-headed than they were just a few weeks ago, when the global banking system was in crisis mode and Bear Stearns Cos. was forced to accept a buyout from JPMorgan Chase & Co.

But corporate reports at the start of first-quarter earnings season were nonetheless troubling.

Given a 54 percent drop in Alcoa's first-quarter profit, a 15 percent drop in AMD's first-quarter sales and a lowered profit outlook at rival chip maker Novellus Systems Inc., it appears to some on Wall Street that they might have to pare back their profit estimates for this year.

"While investors had a pretty much washed-out, pessimistic view of the economy, those investors also had an unrealistic view on earnings ..."

"It seems investors are conflicted between their pessimism on the economy and their optimism on earnings," said Jack A. Ablin, chief investment officer at Harris Private Bank.

"The good news is, we've moved away from emotional, jittery trading to a reconciliation of values."

"The market is substantially more rational than it was."

The Dow fell 35.99, or 0.29 percent, to 12,576.44.

Broader stock indicators also dropped.

The Standard & Poor's 500 index fell 7.00, or 0.51 percent, to 1,365.54, and the Nasdaq composite index fell 16.07, or 0.68 percent, to 2,348.76, taking a larger hit because of concerns about high-tech companies following the news from AMD and Novellus.

Government bonds were little changed.

The yield on the benchmark 10-year Treasury note, which moves opposite its price, ended at 3.56 percent, up from 3.54 late Monday.

Continuing bad news about fallout from the credit crisis added to the session's downbeat tone, but investors ultimately stayed calm and sold in an orderly fashion.

The International Monetary Fund said Tuesday that despite "unprecedented intervention" by the Fed and other central banks, "financial markets remain under considerable strain."

The group estimated that potential credit-related losses for the financial industry had reached $945 billion as of March -- a "staggering number," said Hugh Johnson, chief investment officer of Johnson Illington Advisors.

The credit markets have been performing much better after rate moves and massive lending efforts by the Fed, but many experts say it will be hard for the markets to loosen further with the housing market still on the decline.

The National Association of Realtors said February's pending home sales fell by 1.9 percent compared to January, worse than many analysts had predicted, but the market appeared to have little reaction.

Washington Mutual Inc., one of the financial companies hurt by investments in soured mortgages, said it is raising $7 billion by selling a stake to a private equity investment group.

But the Seattle-based thrift also said it will lose $1.1 billion during the first quarter, stash away $3.5 billion for loan losses and cut its quarterly dividend to shareholders to a penny from 15 cents.

WaMu shares fell $1.34, or 10.2 percent, to $11.81.

Meanwhile, a day after its disappointing earnings report, Alcoa fell 26 cents to $37.18, having dropped 4 percent Monday ahead of its earnings release.

AMD shares fell 31 cents, or 4.9 percent, to $6.03, and Novellus fell $1.93, or 8.1 percent, to $21.88.

Light, sweet crude fell 59 cents to settle at $108.50 a barrel on the New York Mercantile Exchange.

Gold prices closed down, while the dollar traded mixed against other major currencies.

The Russell 2000 index of smaller companies fell 0.76, or 0.11 percent, to 711.92.

Declining issues outnumbered advancers by about 3 to 2 on the New York Stock Exchange, where consolidated volume was about 3.66 billion shares, virtually the same as Monday.

Overseas, Japan's Nikkei stock average fell 1.49 percent.

Britain's FTSE 100 slid 0.41 percent, Germany's DAX index lost 0.72 percent, and France's CAC-40 dropped 0.65 percent.

------

On the Net:

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

This post has been edited by Livyjr: Apr 8 2008, 04:12 PM

[Livyjr]

"Pending home sales hit low in February"

By ALAN ZIBEL, Associated Press

Last updated: 5:32 p.m., Tuesday, April 8, 2008

WASHINGTON -- Homeowners and investors hunting for any indication that the housing market has bottomed out didn't get it Tuesday, as the latest home sales data from a real estate trade group moved that sign further down the road to recovery.

The National Association of Realtors said pending U.S. home sales fell in February to the lowest reading since the index began in 2001.

The trade group's seasonally adjusted index of pending sales for existing homes fell to 84.6 from January's upwardly revised reading of 86.2.

A year earlier, the index stood at 107.6.

Wall Street economists surveyed by Thomson/IFR had predicted the index would inch up to a reading of 86.3.

A reading of 100 is equal to the average level of sales when the index started.

The previous low was August's reading of 85.8, recorded at the height of the credit crunch.

With house prices falling and credit continuing to tighten, many economists say the housing market is likely to worsen in the coming months, though some remain hopeful about a recovery in the second half of the year.

"The question was whether things were starting to stabilize," said Global Insight economist Patrick Newport.

"Apparently they're not."

Newport predicts home sales will fall by another 5 to 10 percent before picking up at the end of the year, while the Realtors group forecasts sales will remain flat in the first half of the year before rebounding strongly in the second half.

The Realtors report gives an early indication of how existing home sales are likely to fare for March, because of the typical lag of a month or two between when a buyer signs a home sales contract and the closing of the deal.

Moody's Economy.com forecasts sales of existing homes will fall 1.6 percent in March to an annual rate of 4.95 million units, down from 5.03 million units in February.

That month's 2.9 percent increase in home sales was the first increase since last July.

"Despite recent steps to provide more liquidity to the mortgage market and ease financing constraints for potential buyers, access to credit remains restricted, especially for marginal buyers," Aaron Smith, senior economist at Economy.com, wrote.

If job losses prove worse than expected as the economy slows, "the floor forming under home sales could begin to cave in."

Lawrence Yun, the Realtors' chief economist, said in a statement that the pending home sales dip "implies we're not out of the woods yet, though an era of successive deep sales declines appears to be over."

The Realtors group maintained its prediction that the housing market would pick up in the second half of the year, forecasting improved availability of loans for more expensive houses.

It forecasts the median price of a U.S. home -- the point at which half homes sell for more money and half for less -- will fall 1.4 percent to $215,800.

Some analysts say lower home prices are luring bottom-fishers to look for cheap deals, but that activity isn't a guaranteed industry booster.

"We'll have to see if these pending transactions can actually close," Mike Larson, a real estate analyst with Jupiter, Fla.-based Weiss Research said in an e-mail.

"My concern is that stingier lending standards are leading to more deals falling apart."

[Livyjr]

"Morgan Stanley's Mack sees end of crisis"

By JOE BEL BRUNO, Associated Press

Last updated: 11:12 a.m., Tuesday, April 8, 2008

PURCHASE, N.Y. -- Morgan Stanley Chief Executive John Mack said Tuesday that Wall Street is facing the most difficult conditions that he has seen in 40 years, but he feels the global credit crisis might be "in the final innings."

Mack, who easily won re-election to Morgan Stanley's board along with 10 other directors, said at the investment bank's annual meeting that he still plans to "go slow" because of the market's turbulence.

The bank wrote down billions of dollars worth of securities linked to risky subprime mortgages and other debt since last year.

"We're keeping powder dry," he said.

"We feel the risks on the market, the run on Bear Stearns, and we think it is important to have very liquid positions and we're working toward that."

He expects more bad news will come out as the world's banks recover from the subprime mortgage crisis, particularly from "overseas and some small retail banks in this country."

However, Mack said he thinks the market is turning and that could provide opportunity.

In fact, Mack said that Morgan Stanley is seeing opportunities in the same mortgage market that caused Wall Street's pain this year.

"I don't know if this is the bottom or close to the bottom, but at some point it will be wise to invest there," he said.

Mack faced a tough test at this year's annual meeting after three pension funds aligned themselves against the nomination of Morgan Stanley's slate of directors.

However, all secured easy re-election, according to preliminary tallies.

Bill Patterson, executive director of CtW Investment Group, said more is needed to ensure Morgan Stanley and other banks don't take excessive risks.

He had urged investors to withhold votes from Mack and other directors, and called on Morgan Stanley to set up an independent chairman.

"More is needed," Patterson told Mack during a question and answer session at the meeting.

"The company needs an independent chairman who has the capacity to stand up to you when risk gets out of line."

Mack said Morgan Stanley's board is set up with a lead director that officiates over meetings, and that he often "stays out of the room and waits" when the board discusses certain issues.

Morgan Stanley shareholders also turned down a proposal where shareholders have an advisory vote on compensation for top executives.

Last year, Mack turned down an annual bonus after Morgan Stanley suffered losses due to the mortgage crisis.

[Livyjr]

"Gas prices slip, but could hit $4"

By JOHN WILEN, Associated Press

Last updated: 5:32 p.m., Tuesday, April 8, 2008

NEW YORK -- Retail gasoline prices pulled back slightly from record levels Tuesday and gave some consumers a small break, but a new government forecast said gas could reach as high as $4 a gallon during the summer driving season.

Oil futures prices, meanwhile, fell as the dollar stabilized, giving investors an opportunity to lock in profits from crude's recent rally.

Limiting the declines were developments in Iran, which announced plans to expand its uranium enrichment program and said it has tested key equipment, a move that raised the market's concerns about political conflict that could affect the country's oil exports.

In its monthly report on petroleum supplies and demand, the Energy Department's Energy Information Administration forecast that monthly average pump prices will peak near $3.60 a gallon in June, but could rise as high as $4 a gallon at times.

That's a dime higher than the EIA's previous monthly average projection, and brings government forecasts closer to those of many analysts who expect gas prices to peak close to $4 a gallon.

The government also predicted high prices will cut demand for gasoline at the height of the summer.

Gas consumption will fall by about 0.4 percent during the peak summer months, and overall consumption of petroleum products will drop by 90,000 barrels a day this year, the EIA said.

The agency previously said petroleum consumption would rise by 40,000 barrels a day.

High prices are already having an impact on demand, which has fallen since January.

On Tuesday, regular unleaded gas prices slipped slightly to a national average of $3.331 a gallon from Monday's record of $3.339, according to AAA and the Oil Price Information Service.

Prices are 55 cents higher than a year ago.

Crude oil's rise above $100 earlier this year is the main reason gas prices have been rising.

Crude futures rose to a trading record of $111.80 last month, and have since traded in a range between about $100 and $110.

On Tuesday, light, sweet crude for May delivery fell 59 cents to settle at $108.50 a barrel on the New York Mercantile Exchange, but alternated between gains and losses.

The dollar stabilized against the euro Tuesday, making oil less effective as a hedge against inflation.

That led some investors to take profits from a rally that's added 8 percent to the price of a barrel of crude in a week.

Analysts believe the dollar's long decline fed the investment surge that pushed oil above $100 earlier this year.

However, the declines were limited by concerns about Iran's announcement that it has begun installing and testing equipment at a uranium enrichment plant.

The U.N. Security Council has already passed sanctions against Iran for expanding its nuclear program, and the market is concerned that an escalation of tensions could affect oil exports from the Middle East.

"The announcement of the (equipment) there I think makes people a little bit nervous," said Michael Lynch, president of Strategic Energy & Economic Research Inc. in Amherst, Mass.

Many analysts expect oil prices to rise higher in coming months, possibly above last month's records, as the Federal Reserve cuts interest rates later in the year.

Lower rates tend to weaken the dollar.

Minutes of the Fed's March meeting, released Tuesday afternoon, showed policymakers were far from unified in their decision to cut the key federal funds rate by three-quarters of a percentage point, but are worried about the severity of the economic slowdown.

High oil prices have also sent diesel prices higher.

Diesel's national average price rose 1.3 cents to $4.02 a gallon on Tuesday, AAA said, within 2 cents of last month's record.

"We'll set a new record this week -- probably in the $4.05 to $4.10 a gallon neighborhood," said Tom Kloza, publisher and chief oil analyst at the Oil Price Information Service in Wall, N.J.

Diesel fuel is used to transport most of the world's food, industrial and consumer products, and is one of the reason food prices have risen so sharply this year.

In other Nymex trading Tuesday, May heating oil futures rose 2.59 cents to settle at $3.1102 a gallon.

Analysts said heating oil prices are being pushed higher by strong global demand for diesel, which is closely related to heating oil, and a fire that shuttered a refinery in Finland.

May gasoline futures fell 3.31 cents to settle at $2.7504 a gallon, and May natural gas futures fell 9.4 cents to settle at $9.697 per 1,000 cubic feet.

In London, May Brent crude fell 80 cents to settle at $106.34 a barrel on the ICE Futures exchange.

[Livyjr]

"UPS cuts 1st-quarter profit outlook"

Associated Press

Last updated: 6:02 p.m., Tuesday, April 8, 2008

ATLANTA -- United Parcel Service Inc., the world's largest shipping carrier, cut its first-quarter profit guidance Tuesday, citing lower volume and higher fuel costs.

The company said it now expects earnings per share of 86 cents or 87 cents.

Previously, the company said it expected first quarter profit between 94 cents and 98 cents per share.

Analysts polled by Thomson Financial were expecting earnings of 93 cents per share.

The company said lower volume trends from February continued through March, making it impossible to meet its prior guidance.

Atlanta-based UPS said a shift away from premium products and higher fuel costs also contributed to the guidance cut.

The move comes after the company warned last month it may not meet first-quarter earnings guidance and plans to focus more on growth opportunities overseas because of the uncertain U.S. economy.

Chief Executive Scott Davis warned at an investors conference last month that UPS still considers its domestic market important to its future, but said the company can't rely on U.S. package volume growth alone.

Other company officials said China, India and Europe provide good growth opportunities.

Last month, UPS rival FedEx Corp. reported a 6 percent drop in third-quarter earnings and said a slow economy and high fuel prices are expected to continue cutting into profits.

The Memphis-based shipper predicted fourth-quarter earnings would be lower than a year ago and its earnings growth would be limited in the next fiscal year.

UPS shares fell $2.31, or 3.1 percent, to $71 in electronic after-hours trading.

During regular trading, shares fell 47 cents to close at $73.31.

------

On the Net:

UPS Inc.: http://www.ups.com

[Indianhead]

Definately, the most read SOB in the regiment.
You freak me f*ckin' out. It takes me hours to
catch up. I'm tryin' to garden and work and you
continually blow me out with f*ckin' news & opinion.

I love it, keep it up. I'm a glutton for reality.

[Livyjr]

I love it, keep it up.

I'm a glutton for reality.

Me, too, Indianhead ...

In the end, reality is all of what we have....

If it wasn't for reality, why, we wouldn't have nothing at all ....

And so ...

[Livyjr]

"Short-term Treasurys rise on Fed minutes"

By TIM PARADIS, Associated Press

Last updated: 5:52 p.m., Tuesday, April 8, 2008

NEW YORK -- Short-term Treasury prices rose Tuesday after minutes from the Federal Reserve's last meeting revealed policymakers fretted over the prospects of a deep recession when cutting interest rates last month.

Those concerns led some investors to speculate that the economy could be in for more trouble than recent placidity on Wall Street might have indicated.

Further weakening in the economy could make room for the central bank to reduce interest rates more.

As a result, short-term Treasurys gained.

Longer-term bonds fell amid the prospect of increased inflation that rate cuts could bring.

"It was interesting to see the majority seeing contraction in the first half and the risk of something more lasting and severe," said Josh Stiles, managing director, at IDEAGlobal.com.

"That's got the price action really favoring the short end of the Treasury market and more hopeful about rate cuts than the last few days when we've seen those odds getting lower in the market," he said.

The market had been quiet ahead of the afternoon release of the minutes as investors were eager to determine whether the Fed's Federal Open Market Committee is likely to further reduce interest rates when it meets April 29-30.

Treasury prices rose briefly ahead of the Fed minutes after the National Association of Realtors said that pending home sales declined by a worse-than-expected 1.9 percent in February from January.

But prices were mixed after release of the Fed minutes.

The benchmark 10-year Treasury note fell 6/32 to 99 15/32 with a yield of 3.56 percent, up from 3.54 percent late Monday, according to BGCantor Market Data.

Prices and yields move in opposite directions.

The 30-year long bond fell 16/32 to 99 27/32 with a yield of 4.39 percent, up from 4.35 percent.

The 2-year note, however, rose 3/32 to 99 24/32 with a yield of 1.88 percent, down from 1.89 percent late Monday.

As of 5 p.m. EDT, the 10-year yield remained at 3.56 percent, while the 30-year yield slipped to 4.38 percent, and the 2-year yield was also flat at 1.88 percent.

The yield on the 3-month note fell to 1.39 percent from 1.41 percent late Monday and the discount rate fell to 1.37 percent from 1.39 percent Monday.

Though uncertainty remains, volatility has eased in the stock market in recent sessions.

The calmness had led some investors who had fled to the safety of government debt to feel somewhat more optimistic.

Worries about the economy in both the stock and Treasury markets appeared to lessen in recent weeks after the Fed took a series of steps aimed at easing tightness in the credit markets, including a decision to extend its loan program to investment banks.

The Fed also helped orchestrate the sale of a troubled Bear Stearns Cos. to JPMorgan Chase & Co.

[Livyjr]

Definately, the most read SOB in the regiment.

It takes me hours to catch up.

Things are happening out there in the world faster than I can keep up with them, Indianhead ....

May we always live in interesting times, ain't it?

And so ....

[Livyjr]

"Gold falls on stronger dollar"

By STEVENSON JACOBS, Associated Press

Last updated: 5:02 p.m., Tuesday, April 8, 2008

NEW YORK -- Gold prices dropped Tuesday after traders cashed in profits and the dollar gained some muscle against the euro, diminishing the metal's appeal as a hedge against inflation.

Other commodities traded mixed, with crude oil falling slightly and agriculture products mostly rising.

Gold has gained nearly 10 percent so far this year, driven by drops in the dollar and spikes in crude oil prices -- inflationary signs that have boosted the metal's allure as a safe, alternative investment.

The dollar rebounded slightly against the euro Tuesday, sending gold lower for the first time in four sessions as traders rushed to lock in profits.

"Gold has some profit-taking."

"... Caution prevails for now," George Gero, vice president at RBC Capital Markets Global Futures, said in a research note.

Gold for June delivery dropped $8.80 to settle at $918 an ounce on the New York Mercantile Exchange, after earlier falling as low as $911.40.

Prices also reacted to plans by the International Monetary Fund to possibly sell more than 400 tons of its vast gold supplies as part of a financial overhaul.

The sale must be approved by Congress and legislatures in many of the 184 countries that belong to the Washington-based lending body.

The gold sales are expected to be spread out over time so they don't trigger prices swings.

Analysts predict gold could resume its upward trek above $1,000 in coming months if the Federal Reserve continues its interest rate-cutting campaign later this year.

Lower interest rates can boost the economy but tend to undercut the dollar.

That, in turn, encouraging investment in hard assets like gold.

Minutes of the Fed's March meeting, released Tuesday, showed that worries about a deep recession drove Fed officials to slash a key interest rate by three-quarters of a percentage point.

Other precious metals also fell Tuesday.

Silver for May delivery lost 41.2 cents to settle at $17.708 an ounce on the Nymex, while May copper fell 8.9 cents to settle at $3.8905 a pound.

Elsewhere in the commodities complex, agriculture futures rose broadly after a big sell-off on Monday attracted new buyers to the market.

More wet weather in parts of the U.S. corn belt also pushed prices higher as investors bet that farmers may have to delay spring planting.

"We're getting a little bit of a recovery after yesterday's sell-off, and there's some weather-related trading," said Jason Ward, analyst with Northstar Commodity.

Wheat for May delivery added 12.75 cents to settle at $9.34 a bushel on the Chicago Board of Trade, after earlier rising as high as $9.39.

Other agriculture commodities traded mixed.

May soybeans fell 3.5 cents to settle at $12.515 a bushel on the CBOT, while May corn added 1.25 cents to settle at $5.9125 a bushel.

In energy futures, oil prices fell as a stronger dollar weakened crude's appeal as an inflation hedge and gave traders an opportunity to cash in profits from crude's recent rally.

Light, sweet crude for May delivery fell 59 cents to settle at $108.50 a barrel on the New York Mercantile Exchange, but alternated between gains and losses.

Prices had increased by 8 percent in the last week, driven up in part by the dollar's steady decline.

Other energy futures traded mixed.

May gasoline futures fell 3.31 cents to settle at $2.7504 a gallon on the Nymex, while May heating oil futures rose 2.59 cents to settle at $3.1102 a gallon.