Strong Dollar Hurts US Businesses

While the year-long surge in the Dollar has been a welcome development for American consumers and the US government (in terms of cheaper imports and easy credit, respectively), American businesses are not smiling. The strong Dollar has resulted in decreased competitiveness in the eyes of foreign consumers, and consequently, lower exports. For this reason, the US trade deficit has not shrunk significantly, despite a slight down-tick in imports. One must also look at the overseas earnings of American multinational corporations, which are frequently repatriated to the US and booked in Dollar-terms. In fact, as much as 50% of S&P 500 member company profits now come from overseas. Simply, lower exchange rates mean lower profits. In short, investing in the stocks of companies as a proxy for the markets in which they do business is not (as) profitable when the Dollar is strong.

US and Japan Should Form, Forex Partnership

While continuing to deny the possibility of direct forex intervention, Japan is nonetheless desperate to halt the rise in the Yen. The primary concern of the US government, meanwhile, is not that the Dollar is becoming too valuable, but rather that it will face great difficulty in funding its economic stimulus plan. Perhaps there exists a golden opportunity to simultaneously alleviate both of these quandaries; Japan should be solicited to buy US government bonds. A large-scale purchase of US Treasury securities by the Central Bank of Japan would be tantamount to intervention, and would probably lead to a decline in the Yen, at least against the Dollar. Of course the US would benefit not only by the direct purchase of its bonds, but also by the positive signal that this would send to other institutional investors. Besides, given that China is in no position to increase its holdings of US Treasury securities, Japan represents the best candidate for partnership.

The Euro Paradox,

The deepening of the credit crisis in the EU has triggered a wave of self-reflection, prompting those on the inside to ponder life without the Euro and those on the outside pondering life with the Euro. Their opinions couldn't be any more divergent. Countries like Italy, Spain, and Ireland, for example, have blamed the Euro for their economic woes, arguing that easy monetary policy and cheap credit were responsible for their real estate bubbles. Some commentators, accordingly, have argued that structural differences between these countries and the economic powerhouses of Germany and France are so large that it doesn't make sense for them to share a common currency. Meanwhile, Eastern European countries, most of which are still outside the Euro, are clamoring to join as sudden depreciations in their respective currencies have exposed them to massive economic instability.

ECB Hints at Rate Cut

At its next meeting, to be held in March, the European Central Bank is all but certain to bow to pressure and cut its benchmark interest rate to a record low. This should not come as a surprise, for the ECB’s February decision to hold rates constant was met with a large outcry, in both public and private circles. Soon-to-be-released inflation data is expected to confirm that prices are rising at a slower pace, perhaps even below the ECB’s 2% benchmark. Members of the Bank are also paying attention to the Euro, the continued weakness of which is ironically a product of the ECB’s comparatively tight monetary policy, as investors guard themselves against the risk of deflation.

Make Ur Money with Currency Trading on FOREX

FOREX investing is one of the most potentially rewarding types of investments available. While certainly the risk is great, the ability to conduct marginal trading on FOREX means that potential profits are enormous relative to initial capital investments. Another benefit of FOREX is that its size prevents almost all attempts by others to influence the market for their own gain. So that when investing in foreign currency markets one can feel quite confident that the investment he or she is making has the same opportunity for profit as other investors throughout the world. While investing in FOREX short term requires a certain degree of diligence, investors who utilize a technical analysis can feel relatively confident that their own ability to read the daily fluctuations of the currency market are sufficiently adequate to give them the knowledge necessary to make informed investments.

How FOREX Works

Transactions in foreign currencies are not centralized on an exchange, unlike say the NYSE, and thus take place all over the world via telecommunications. Trade is open 24 hours a day from Sunday afternoon until Friday afternoon (00:00 GMT on Monday to 10:00 pm GMT on Friday). In almost every time zone around the world, there are dealers who will quote all major currencies. After deciding what currency the investor would like to purchase, he or she does so via one of these dealers (some of which can be found online). It is quite common practice for investors to speculate on currency prices by getting a credit line (which are available to those with capital as small as $500), and vastly increase their potential gains and losses. This is called marginal trading.

UK Housing Crisis Could Affect Pound

When one hears the phrase "housing crisis" uttered, the US immediately comes to mind. Not without reason, of course, since the US housing market is the largest in the world, and the scope of any US housing crisis is sure to dwarf a comparable crisis in any other country, in absolute terms. At the same time, let’s not forget that prices in the UK, for example, began to decline earlier than in the US. In addition, as one columnist points out, the impact of the UK housing crisis may be relatively greater on the UK economy. While some of the statistics he quotes are dubious, housing and consumer debt (on a per capita basis) may in fact be larger in the UK than in the US. As a result, the ongoing correction in housing prices would be expected to punish the UK more than the US. The story could be the same for the Pound, vis-a-vis the US Dollar.

British Pound Under Pressure

The British Pound has already fallen 25% against the Dollar, since the credit crisis kicked off earlier this year. On a technical basis, therefore, it would seem that the Pound is due for a rally. From the standpoint of economic fundamentals however, the picture is quite bleak. While the Bank of England’s recent 150 basis point interest rate cut could help restore the UK economy to solid footing, it sent a massive shock to investors. UK interest rates now stand at a 50-year low, and futures prices suggest that the benchmark rate will fall another 1% in the next 12 months. In addition, the Bank of England has not ruled out ruling interest rates all the way to zero. As unlikely as this scenario may be, investors are now fully aware of the scope of Britain’s economic troubles. The next couple weeks could be make-or-break for the Pound, as a series of economic data releases, as well as the minutes from the latest BOE meeting, will help investors craft a more accurate forecast.

Pound Versus the Euro

In recent years, the idea of parity seemed to pop up repeatedly in forex markets. First, the Canadian Dollar breached the mythical 1:1 barrier against the USD; then, it looked as though the Australian Dollar would follow suit. The most recent battle for parity is being waged across the Atlantic Ocean, between the British Pound and the Euro. Both economic and monetary circumstances favor the Euro, as the housing crisis pummeled the UK economy and the UK Central Bank subsequently embarked on a steep program of monetary easing. The Euro has probably also received a boost from the perception that the EU is one of the most stable economies and investing locales, outside of the US. In any event, investors tend to get carried away with psychological milestones and ignore economic fundamentals, which means the Euro could quickly achieve parity, before pulling back.

British Pound Oversold?

Last week, the British Pound recorded its strongest performance against both the Dollar and Euro in nearly 20 years, on the basis of both technical and fundamental factors. On the surface, the Bank of England interest rate cut that prompted the rally would seem to be be negative for the Pound, since lower yield makes Britain a less attractive place to invest. On a deeper level, the relative modesty of the rate cut signalled to investors that the Bank of England is conscious of currency markets (the record decline in the Pound in 2008) when carrying out monetary policy. In addition, the BOE's proactive response to the credit crisis dwarfs the actions of the European Central Banks, which risks falling further behind the curve. In other words, investors began to question why they were pushing the Euro close to parity, when the economic fundamentals aren't much better in the EU than in the UK.

British Pound: It is All Relative

Since the inception of the credit crisis, perhaps no currency has been beaten down more than the British Pound, with analysts bitterly divided about whether the currency will fall further. A lot depends on whether the British efforts to save its devastated banking sector are successful. The government has already moved to nationalize the Bank of Scotland, and is quickly moving to shore up the capital positions of other vulnerable banks. Experts point to the Pound's historic volatility, however, as an indication that investors have always fled, and will continue to flee the UK in times of uncertainty. Jim Rogers, whose partner George Soros famously "broke" the Bank of England in 1992, forecasts a bleak future, although his motives are questionable. Ultimately, the fate of the Pound is entirely relative, as is the case with all currencies. In other words, if investors suddenly changed their minds about the perceived stability of the Dollar and Yen, the Pound could quickly recover.

Forex Reserves Backfire

Prevailing wisdom has long held that the accumulation of foreign exchange reserves has helped stabilize emerging market economies by cushioning them against economic shocks. The economies of Asia, in particular, were praised by economists for responding to the 1997 Southeast Asian economic crisis by building up their reserves to guard against runs on their currencies in the future. In hindsight, however, the accumulation of reserves may have actually contributed to the current economic crisis, by facilitating the formation of massive global economic imbalances. High savings rates in Asia, for example, enabled western countries to run continuous current account deficits. Now, the chickens are coming home to roost, and developing economies are once again finding themselves vulnerable to recession, since their forex reserve policies came at the expense of developing domestic economic bases. The Times of India reports:

Yuan Revaluation is in China’s Interest

While China remains committed, in rhetoric at least, to a flexible Chinese Yuan that rises and falls in accordance with market forces, its actions suggest otherwise. Beginning in the second half of 2008, China stopped allowing the Yuan to appreciate, for fear that a more expensive currency would exacerbate the domestic effects of the credit crisis by making exports less competitive. What China fails to realize however, is that a more valuable Yuan is not only conducive to global economic stability, but also to its own economic well-being. In fact, the artificially cheap Yuan may have actually worsened the economic downturn in China, because de-incentivized the creation of a domestic economic base. Now that overseas demand has dried up, it is left feeling the consequences of this neglect. The San Francisco Chronicle reports:

Asia Forms Forex Pool

After nearly six months of currency depreciation, the nations of Asia have finally been spurred to action. Japan, China, and South Korea have joined together with the 10 ASEAN economies to form a $120 Billion pool of foreign exchange reserves, which contributors can tap into to protect their currencies. The goal is to prevent capital flight and currency weakness from engendering the same kind of financial crisis that only 10 years ago ravaged Asia. Fortunately, this time around, the 13 countries possess a combined $3.6 Trillion in reserves, which can be deployed in forex and securities markets in order to restore investor confidence. Ironically, the bulk of these reserves belong to China and Japan (who are also funding a large portion of the forex pool), both of whose currencies remain strong in spite of the crisis. Bloomberg News reports:

Dollar Retains Safe Haven Status

The ForexBlog recently reported that investors were cautiously wading back into emerging market currencies. In hindsight, it looks like this report was delivered prematurely, as this week marked a return to the notion of the Dollar as save haven currency, having displaced even the Japanese Yen. While President Obama did his best to assure taxpayers and investors that the economic stimulus would bring the economy out of its slump, the markets were unconvinced. Economic data, especially as it pertains to the housing market, has become increasingly grim, and even Chairman Bernanke of the Federal Reserve conceded that a recovery is unlikely before 2010. Given that the government will have to issue a tremendous quantity of Treasury Bonds in order to fund its ambitious spending plans, however, it’s possible that foreign investors will soon lose their appetite for low-yielding American securities. Reuters reports:

Advantages of the Forex Market

What are the advantages of the Forex Market over other types of investments?

When thinking about various investments, there is one investment vehicle that comes to mind. The Forex or Foreign Currency Market has many advantages over other types of investments. The Forex market is open 24 hrs a day, unlike the regular stock markets. Most investments require a substantial amount of capital before you can take advantage of an investment opportunity. To trade Forex, you only need a small amount of capital. Anyone can enter the market with as little as $300 USD to trade a "mini account", which allows you to trade lots of 10,000 units. One lot of 10,000 units of currency is equal to 1 contract. Each "pip" or move up or down in the currency pair is worth a $1 gain or loss, depending on which side of the market you are on. A standard account gives you control over 100,000 units of currency and a pip is worth $10.

The Forex market is also very liquid. When trading Forex you have full control of your capital.

Many other types of investments require holding your money up for long periods of time. This is a disadvantage because if you need to use the capital it can be difficult to access to it without taking a huge loss. Also, with a small amount of money, you can control

Forex traders can be profitable in bullish or bearish market conditions. Stock market traders need stock prices to rise in order to take a profit. Forex traders can make a profit during up trends and downtrends. Forex Trading can be risky, but with having the ability to have a good system to follow, good money management skills, and possessing self discipline, Forex trading can be a relatively low risk investment.

Black Dog Trading System

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The Great Recession!

World equity markets remain under pressure and indices such as the Dow and the S&P 500 closed at an 11-year low yesterday whilst the Nikkei reached levels last seen 27-years ago. Renewed fears around the globe that the recession will become bigger than what is already priced in and the fear of potential failure to come up with proper solutions to tackle it will continue to push these markets southwards. Hence the 11-day decline with no reason to show any positive signs just yet!

EUR/USD Stagnates as Housing and Industrial Production Declines

EUR/USD remained almost unchanged today on the Forex market after a huge drop yesterday. The market was affected by some important macroeconomic news from the United States today and the currency pair reacted with some moderate spikes in both direction. Now it’s trading near 1.2568.

Oil price

Closing Spot Prices for 1 Barrel of Crude Oil in USD Dollars.

1 Barrel = 42 US Gallons = 159 Liters

	Last Updated: Mon, 02-16-2009 19:00 (+5 GMT) Country Currency ISO 02/16/09 02/13/09 Change UNITED STATES US Dollar USD $ 37.25 $ 37.45 -0.5334% Last Updated: Mon, 02-16-2009 19:00 (+5 GMT)

Welcome !

The creators of ExchangeRate.com have made it a mission to provide you with a great wealth of information about Oil. Whether you are looking for the current buy/sell rates of crude oil, or if you are merely interested in finding out more about oil, XROilPrice.com has you covered. Since XROilPrice.com is free to use, we kindly ask you to visit some of our sponsors provided by Google and various marketing companies. Who knows, maybe you are ready to invest in oil, or maybe you just might want to learn more about oil...either way, we have many sponsors more than willing to show you their products and services.

Forex Currency rates of NBP

KARACHI, Feb 17 (APP): Following are the selling/ buying rates of major currencies issued by National Bank of Pakistan (NBP) here on Tuesday.

U.S. dollar 80.60/

78.60

Saudi riyal 21.49/

20.95

U.K. pound stg 114.50/

111.61

Japanese yen 0.8697

0.8481

Euro 101.91/

99.34

U.A.E 21.94

21.40

Safety of Funds

Maintaining the security of your money is a top priority at CMS Forex. No Forex broker can truly guarantee the safety of a client’s Forex deposits. Therefore you should choose your Forex dealer after close consideration.

Quite often the best way to judge a firm’s financial integrity is by its reputation and the commitment it shows to its clients through its service and business decisions. Our devotion to our clients has made our firm a respected industry leader. Investors must be prudent in regard to where they hold their funds and it is vital to consider the integrity of the firm and its management when making one’s decision.

CMS Forex is a registered Futures Commission Merchant, a Forex Dealer Member of the NFA (National Futures Association) and is registered with the CFTC (Commodities Futures Trading Commission), an agency of the United States government. The regulations set forth by these agencies are designed to help ensure the safety of our clients’ deposits. Among other things the regulations require that our firm:

• maintain sufficient liquid capital in excess of the amount required to cover all client deposits, potential fluctuations in the firm’s currency positions and outstanding expenses;
• does not include any debt outstanding to the firm as part of this capital;
• subject itself to all relevant laws, rules and regulations as well as stringent reporting requirements set forth by these agencies;
• submit financial information to regulatory bodies on a weekly and monthly basis;
• undergo three scrutinizing annual audits, one performed by an independent financial auditor, one by the National Futures Association itself, and a third independent audit responsible for inspecting the firm’s Anti Money Laundering procedures.

Furthermore, our firm holds all deposits with only highly reputable financial institutions. Our firm is grateful for the trust our clients place in us, and we do everything in our power to preserve the safety of our clients’ funds.

Auto Execution Partners

Looking to automate your trades according to a pre-set strategy? Many traders use auto-execution tools as a way to trade the markets actively - without spending all their time at the computer.

Auto execution tools can trade a pre set strategy for you, just as a sharp money manager would - without prohibitively high account minimums or fees. Whether you're looking for battle-tested trading strategies from leading research companies, or eager to write and test your own trading scripts, FOREX.com makes it easy to trade intelligently - automatically.

Auto Execution is ideal for clients that want to:

• Automate strategies from scripting languages such as TradeStation's EasyLanguage® or eSignal's Formula Script
• Integrate strategies from charting packages and custom applications
• Take advantage of trading systems developed by premier research companies

Our partners provide solutions for clients from the individual investor to CTAs and Fund Managers. With our partners you can:

• Seamlessly integrate your systems on one or more of your FOREX.com accounts
• Automatically execute signals based on your predefined strategies
• Easily manage your strategies from advanced software applications
• Manually intervene if necessary
• Diversify your strategy portfolio by trading systems

Regulations

CMS Forex is dedicated to the protection of its valued traders’ investments, and has always been a strong proponent of Forex industry regulation. We are proud to be a registered Futures Commission Merchant (FCM) and a Forex Dealer Member (FDM) of the National Futures Association (NFA) (Member ID: 0313199). CMS Forex is registered with the Commodity Futures Trading Commission (CFTC) an agency of the U.S. government and the Financial Services Agency (FSA) of Japan, two prominent regulatory bodies.

Compliance with the regulations set forth by these institutions ensures that stringent quality control standards are being met and that your business with CMS Forex is safe, fair and honest.

The strict regulations set forth by these agencies are designed to ensure the safety of investors’ funds and fair business practices. These regulations require CMS Forex to maintain sufficient liquid capital in excess of the amount necessary to cover all client deposits, potential fluctuations, and outstanding expenses and generally operate under just and equitable principles of trade.

CMS Forex is not only subject to all relevant laws, rules, and regulations set forth by these agencies, but is also examined by three audits: two are performed annually by independent auditors, and one performed every 12-15 months by the NFA itself.

About CMS Forex

CMS Forex was founded by professional Forex traders, Forex brokers, and software developers, and as a result has been able to identify traders’ needs from the very beginning. Since 1999, CMS Forex’s mission has been to provide the most powerful currency trading technology combined with quality execution, competitive services, and dependable customer service. Over the past seven years, CMS Forex has quickly become one of the world’s leading online retail currency trading institutions, providing secure, user-friendly Forex trading software.

CMS Forex is positioned as an industry leader in the Forex marketplace and continues its growth while striving to provide its clients the best trading environment. Based out of New York, CMS Forex and its affiliates now have offices in Boston, Tokyo, Bermuda, Saint Petersburg, and Shanghai. Bermuda’s Capital Market Services International and CMS Japan were created to strengthen global reach and better cater to our international clients.

CMS Forex strives to serve both the retail and institutional segment of the Forex community. Its commitment to providing innovative currency trading technology, fair dealing practices, and excellent customer service establishes CMS Forex as a major force that traders look to for advanced Forex charting, up-to-date Forex news, and informative Forex education.

CMS Forex’s affiliates in New York, Saint Petersburg, and Shanghai are dedicated to going above and beyond to meet clients’ needs, by creating and constantly improving upon the already sophisticated and user-friendly trading software, VT Trader™. These attributes, plus many others, prove that CMS Forex has built from the ground up a service that truly stands on its own.

Forex Research

Our award-winning research team brings you insights and tips, direct from our seasoned traders. Divided into weekly, daily and intraday research, we cover both fundamental and technical indicators.

Our Intraday commentary includes FOREX Insider and the widely read Market Updates. Follow the market with our traders as they decode the market's movements, point out emerging chart patterns and analyze key data releases' impact on the currency markets, as they happen.

FOREX Insider Forex Insider provides you with actionable analysis of news, events and technical levels that impact currency prices - as it happens. Updates are published directly by the senior traders and members of our experienced research team, up to 20 times an hour. Take advantage of their proximity to institutional buy and sell side action, as they trade with some of the world's largest financial institutions. Keep in mind that the market impact of news and other events detailed in Forex Insider may already be factored into the currency price before this information reaches the public. Forex Insider is available directly within the platform, allowing you to act quickly on the information. To access Forex Insider, click the "Commentary" tab. View examples of Forex Insider postings. FOREX.com Market Updates Actionable research published three times daily, after the close of each major trading session in Tokyo, London, and New York. Each update summarizes the key takeaways from each trading session. Find out how each major market may impact upcoming price action, and learn about important technical levels and events to watch.

Obama eyes home loan subsidies in rescue plan: sources

By Patrick Rucker

WASHINGTON (Reuters) - The Obama administration is hammering out a program to subsidize mortgage payments for troubled homeowners who have gone through a standardized re-appraisal and affordability test, sources familiar with the plan said on Thursday.

The program would be a major break from existing aid programs, which are triggered once homeowners fall into arrears.

Under the plan being contemplated, mortgage companies would use a uniform eligibility test even before a borrower becomes delinquent, sources said.

The administration hopes the mortgage industry will soon agree to a set of standards that will allow it to move quickly to modify many home loans.

Sources said government-controlled housing finance companies Fannie Mae and Freddie Mac would play a supporting role in the government's new plan, but said they are not expected to expand their securitization of loans.

In an interview, James Lockhart, the regulator that oversees Fannie Mae and Freddie Mac, said the mortgage finance industry was eager to have a standardized mortgage modification standard.

"I've talked to all the major servicers -- both the big bank ones and the big independent ones -- and they are all ready to go, they're chomping at the bit," Lockhart, the director of the Federal Housing Finance Agency, said. "The other thing they're asking for standardization."

Under the plan being mulled, homeowners would have to make a case of hardship to qualify for new loan terms.

Housing policymakers weighed but have for now shelved one plan that would have seen the government stand behind low-cost mortgages of between 4 and 4.5 percent, sources said.

Lockhart said that policymakers are eager to prevent a large drop in home values from their current, deflated levels.

"Just as we had a large overshooting to the upside. Is there any way to prevent going much further to the downside? That will cause tremendous harm to the U.S. economy, to the financial system and it's not necessary," he said.

Codependence: recovery

C.A.R.E.S.S. yourself

C: Develop your coping skills.

• Learn to identify your emotions: anger, fear, guilt, sadness - go to some mutual support group meetings and work with a counselor on this important part of your recovery.
• Learn about boundaries: what are your responsibilities, possessions, traits, and what are others'; how to establish and maintain boundaries. Reading, groups, sponsorship in Alcoholics Anonymous will help with this. With this goes MYOB: learning to mind your own business and to detach with love.
• Learn how to be assertive in relationships and how to safely resolve conflict. Books and courses are offered on this. It also helps in your work and parenting.
• Determine what pieces of your puzzle are missing and develop them: money management, time management, stress management, learning balance, hobbies.

A: Make yourself accountable. Share your commitment to change with someone who cares for you. Join a group, get a sponsor/mentor.

R: Take responsibility for your own recovery. Being a victim may feel like it absolves you from blame, but it gives all the power to the victimizer. It's up to you to change the things you can. You can do it.

E: Education helps. Reading books, attending classes, going to group meetings all help towards reaching an understanding of addictions, dysfunctional family systems and recovering from symptoms of codependence.

S: Develop a support network. Join a group (Al-Anon, religious institution, hobby group). Identify support people, friends, family, institution of worship, or workplace and get in the habit of sharing with them, in person and by phone.

S: Your spiritual health will likely get more and more important to you as you get older. Figure out what you believe. Decide on your values and live by them. Start your day with meditation.

Don't quit before the miracle.

Author: Ray Baker, MD

Reviewer: MediResource Clinical Team

Cuba launches own Linux variant to counter U.S.

By Esteban Israel

HAVANA (Reuters) - Cuba launched its own variant of the Linux computer operating system this week in the latest front of the communist island's battle against what it views as U.S. hegemony.

The Cuban variant, called Nova, was introduced at a Havana computer conference on "technological sovereignty" and is central to the Cuban government's desire to replace the Microsoft software running most of the island's computers.

The government views the use of Microsoft systems, developed by U.S.-based Microsoft Corp, as a potential threat because it says U.S. security agencies have access to Microsoft codes.

Also, the long-standing U.S. trade embargo against the island makes it difficult for Cubans to get Microsoft software legally and to update it.

"Getting greater control over the informatic process is an important issue," said Communications Minister Ramiro Valdes, who heads a commission pushing Cuba's migration to free software.

Cuba, which is 90 miles from Florida, has been resisting U.S. domination in one form or another since Fidel Castro took over Cuba in a 1959 revolution.

Younger brother Raul Castro replaced the ailing 82-year-old leader last year, but the U.S.-Cuba conflict goes on, now in the world of software.

According to Hector Rodriguez, dean of the School of Free Software at Cuba's University of Information Sciences, about 20 percent of computers in Cuba, where computer sales to the public began only last year, are currently using Linux.

Nova is Cuba's own configuration of Linux and bundles various applications of the operating system.

Rodriguez said several government ministries and the Cuban university system have made the switch to Linux but there has been resistance from government companies concerned about its compatibility with their specialized applications.

"I would like to think that in five years our country will have more than 50 percent migrated (to Linux)," he said.

Unlike Microsoft, Linux is free and has open access that allows users to modify its code to fit their needs.

"Private software can have black holes and malicious codes that one doesn't know about," Rodriguez said. "That doesn't happen with free software."

Apart from security concerns, free software better suits Cuba's world view, he said.

"The free software movement is closer to the ideology of the Cuban people, above all for the independence and sovereignty."

(Editing by Jeff Franks and Bill Trott)

U.S. and Russia track satellite crash debris

By Guy Faulconbridge

MOSCOW (Reuters) - Space officials in Russia and the United States were on Thursday tracking hundreds of pieces of debris that were spewed into space when a U.S. satellite collided with a defunct Russian military satellite.

The crash, which Russian officials said took place on Tuesday at about 1700 GMT (12:00 p.m. EST) above northern Siberia, is the first publicly known satellite collision and has raised concerns about the safety of the manned International Space Station.

The collision happened in an orbit heavily used by satellites and other spacecraft and the U.S. Strategic Command, the arm of the Pentagon that handles space, said countries might have to maneuver their craft to avoid the debris.

"The collision of these two space apparatuses happened by chance and these two apparatuses have been destroyed," Major-General Alexander Yakushin, first deputy commander of Russia's Space Forces, told Reuters.

"The fragments pose no danger whatsoever to Russian space objects," he said. When asked if the debris posed a danger to other nations' space craft, he said: "As for foreign ones, it is not for me say as it is not in my competency."

The collision between the Iridium Satellite LLC-operated satellite and the Russian Cosmos-2251 military satellite occurred at about 485 miles above the Russian Arctic.

That is an altitude used by satellites that monitor weather, relay communications and perform scientific observations.

"It's a very important orbit for a lot of satellites," said Air Force Colonel Les Kodlick from the U.S. Strategic Command. "We believe it's the first time that two satellites have collided in orbit."

The U.S. Joint Space Operations Center was tracking 500 to 600 new pieces of debris, some as small as 4 inches across, in addition to the 18,000 or so other man-made objects it previously catalogued in space, he said.

Russian Space Forces said it was monitoring debris that was spread over altitudes between 500 km (310 miles) and 1300 km (807 miles) above earth.

The priority is guarding the International Space Station, which orbits at 220 miles, substantially below the collision altitude. One Russian and two U.S. astronauts are currently aboard the station.

SPACE STATION

The orbit of the ISS can be changed by controllers from Earth but even a tiny piece of debris can cause significant damage to the space station as it travels at 8 km per second.

"If there is any threat to the ISS then there will be an announcement," one Russian space official said. Another said there was little immediate threat to the station.

The crash has underlined concerns about how crowded the orbit paths around the planet have become in recent decades.

S&P and Nasdaq rise after mortgage plan news

NEW YORK (Reuters) - Stocks staged a late rally to close mostly higher on Thursday after Reuters reported the Obama administration was working on a program to subsidize mortgage payments for troubled homeowners.

* According to preliminary closing figures, the Dow Jones industrial average .DJI ended off 6.77 points, or 0.09 percent, to 7,932.76. The Standard & Poor's 500 Index .SPX was up 1.45 points, or 0.17 percent, at 835.19. The Nasdaq Composite Index .IXIC gained 11.21 points, or 0.73 percent, to 1,541.71.

* "It's being viewed as a positive both for the mortgage industry and home building industry as well," said Richard Sparks, senior equities analyst at Schaeffer's Investment Research in Cincinnati, Ohio.

(Reporting by Leah Schnurr; editing by Gary Crosse)

U.S. crude drops 5.5 percent on supply glut

By Richard Valdmanis

NEW YORK (Reuters) - U.S. oil prices fell 5.5 percent on Thursday to settle at the lowest point in nearly two months, dragged down by swelling crude stocks in the United States and concerns over the health of the global economy.

U.S. crude dropped $1.96 to settle at $33.98 a barrel, the lowest since December 19 and extending a losing streak that has clipped 17 percent off the price in five days. Brent crude rose 37 cents to $44.65 a barrel.

U.S. crude has been running at a big discount to Brent due to a glut at the main U.S. storage hub in Oklahoma along with supply problems in Nigeria that tend to have a bigger impact on European supplies.

The losses came after the U.S. government reported on Wednesday a seventh straight weekly increase in nationwide crude inventories as the economic crisis crushes business and consumer fuel demand.

Crude oil stockpiles at Cushing, Oklahoma -- the world's biggest storage hub and the delivery point for U.S. crude futures -- rose last week to record levels around 35 million barrels, near operational capacity.

"Much of today's pressure on crude still comes from yesterday's data showing a big jump in U.S. crude supply, including at the NYMEX delivery point in Cushing, Oklahoma," said Andy Lebow, broker at MF Global in New York.

"There is also anticipation that crude stocks will continue to build in the weeks to come," he added.

Encouraging losses Thursday, the U.S. Labor Department said the number of people staying on unemployment benefits rose by 11,000 to a record 4.810 million in the last week of January.

"What that's telling us is the underlying trend is bad and seems to be getting worse. For job losses, February could be worse than January," Nigel Gault, chief U.S. economist at Global Insight in Lexington, Massachusetts, said.

The global economic downturn is taking its toll on oil consumption and supply appears to be outpacing demand in many parts of the world, despite production cuts by members of the Organization of the Petroleum Exporting Countries.

Algerian Oil Minister Chakib Khelil told Reuters on Thursday that there is a 50 percent chance the cartel could agree to deepen cuts when it meets in March, and added that compliance among members is solid.

"We have 85 percent which is unusual for compliance. By meeting time, we will probably have 100 percent," Khelil said.

U.S. oil's losses were further exacerbated by a report Wednesday from the International Energy Agency forecasting global demand would shrink this year by the largest amount since 1982.

Traders said the short-term direction of the market was also being dominated by movements in stock markets, which were lower in New York on Thursday. .N

Brent crude was supported somewhat by news Shell (RDSa.L) may have trouble meeting some oil export obligations due to unrest in the Niger Delta.

(Additional reporting by Christopher Johnson in London, Fayen Wong in Perth; Editing by Marguerita Choy)

Vermillion Announces Notice of Issuance of U.S. Patent Covering Hepcidin as a Biomarker for Ovarian Cancer

Discovery Could Lead to the Development of a Next-Generation Assay to Improve Diagnosis and Treatment of Ovarian Cancer -

FREMONT, Calif., Feb. 12 /PRNewswire-FirstCall/ -- Vermillion, Inc. (OTC Bulletin Board: VRML), a molecular diagnostics company, today announced that the U.S. Patent Office (USPTO) has issued a notice of allowance to the Company for the discovery of hepcidin as a biomarker for ovarian cancer. The discovery could ultimately lead to the development of an improved, next-generation assay that might provide physicians with additional, valuable information to diagnose ovarian cancer.

"The notice of issuance of this patent validates the strength of our approach in the development of innovative molecular diagnostics," said Eric T. Fung, M.D., Ph.D, Chief Scientific Officer of Vermillion and co-inventor. "This patent comprises an important component of our ovarian cancer patent portfolio."

The patent also covers the measurement of hepcidin by a variety of methods, including mass spectrometry and other immunoassay approaches.

About Vermillion's Ovarian Cancer Diagnostic Program

Vermillion has multiple ovarian cancer diagnostic tests in development. The most advanced of Vermillion's programs is the OVA1 test, which is designed to utilize a panel of biomarkers to help identify women with a higher likelihood of malignancy so they can be referred to a gynecologic oncologist for their initial surgery. Vermillion filed a 510(K) Application with the U.S. Food and Drug Administration for its OVA1(TM) Test in June 2008.

Additionally, studies are underway to develop tests with the capability of detecting early-stage ovarian cancer, predicting prognosis and recurrence, and identifying women considered at high-risk for the disease.

Vermillion's premier diagnostic development program is being conducted with several leading collaborators at The Johns Hopkins School of Medicine, The University of Texas M.D. Anderson Cancer Center, Rigshospitalet (Copenhagen), and the University of Kentucky.

The Company's OVA1 test is part of a strategic alliance with Quest Diagnostics to jointly develop and commercialize diagnostic tests.

About Ovarian Cancer

Commonly known as the "silent killer," ovarian cancer leads to approximately 15,000 deaths each year in the United States, according to the American Cancer Society. Approximately 20,000 new cases are diagnosed each year, with the majority in patients diagnosed with late stage disease where the cancer has spread beyond the ovary. The prognosis is poor in these patients, leading to the high mortality from this disease. A diagnostic test is needed that can provide adequate predictive value to stratify patients with a pelvic mass into high risk of invasive ovarian cancer versus those with low risk, as well as a screening test for the diagnosis of early-stage ovarian cancer, which is essential for improving overall survival in patients. Ovarian cancer has up to a 90% cure rate following surgery and/or chemotherapy if detected in stage 1.

About Vermillion

Vermillion, Inc. is dedicated to the discovery, development and commercialization of novel high-value diagnostic tests that help physicians diagnose, treat and improve outcomes for patients. Vermillion, along with its prestigious scientific collaborators, has diagnostic programs in oncology, hematology, cardiology and women's health. Vermillion is based in Fremont, California. Additional information about Vermillion can be found on the Web at http://www.vermillion.com.

Forward Looking Statements

This news release contains forward-looking statements that involve significant risks and uncertainties, including statements regarding Vermillion's plans, objectives, expectations and intentions. These forward-looking statements are based on Vermillion's current expectations. The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for such forward-looking statements. In order to comply with the terms of the safe harbor, Vermillion notes that a variety of factors could cause actual results and experience to differ materially from the anticipated results or other expectations expressed in such forward-looking statements. There are no guarantees that Vermillion will succeed in its efforts to commercialize any of its products or that it will improve diagnosis and treatment of ovarian cancer in 2009 or during any other period of time. Factors that could cause actual results to materially differ include but are not limited to: (1) uncertainty in obtaining intellectual property protection for inventions made by Vermillion; (2) unproven ability of Vermillion to discover, develop, and commercialize diagnostic products for the treatment of ovarian cancer based on findings from its disease association studies; (3) unproven ability of Vermillion to discover or identify new protein biomarkers and use such information to develop diagnostic products for the treatment of ovarian cancer; (4) uncertainty as to whether Vermillion will be able to obtain any required regulatory approval of its diagnostic products for the treatment of ovarian cancer; (5) uncertainty of market acceptance of its diagnostic products for the treatment of ovarian cancer, including the risk that its products will not be competitive with products offered by other companies, or that users will not be entitled to receive adequate reimbursement for its products from third party payors such as private insurance companies and government insurance plans; and (6) other factors that might be described from time to time in Vermillion's filings with the Securities and Exchange Commission. All information in this press release is as of the date of the release, and Vermillion expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in Vermillion's expectations or any change in events, conditions or circumstances on which any such statement is based, unless required by law.

SOURCE Vermillion, Inc.

Markets drop as earnings sour

North American markets were down at midday on Thursday as several Canadian companies posted disappointing quarterly results, and there was doubt the U.S. government's economic stimulus would work as well as hoped.

The Toronto Stock Exchange's S&P/TSX composite index fell about 25 points, or 0.3 per cent, to 8,710. The declines came as firms such as Manulife Financial Corp., Sun Life Financial Inc. and EnCana Corp. posted profits short of expectations.

On the New York Mercantile Exchange, crude oil was down $1.19 to $34.75 US a barrel, while gold rose $2.50 to $947 US an ounce.

The Canadian dollar was down 34 basis points to 80.15 cents US.

In the U.S., markets were down even though legislators there agreed on a stimulus package. But a poll of experts by Bloomberg News predicted the U.S. economy will contract by two per cent anyway. The Dow Jones industrial average was down about 110 points, or 1.4 per cent, to 7,830. The Nasdaq composite index fell around five points, or 0.3 per cent, to 1,525.

Major overseas markets were down across the board as well.

On Wednesday, the TSX lost 80 points, or 0.91 per cent, to 8,737.89. The Dow Jones climbed 50.65 points, or 0.64 per cent, to 7,939.53, and the Nasdaq advanced 5.77 points, or 0.38 per cent, to 1,530.50

Kuwaiti government gets pressure to expand bailout

The Kuwaiti government may boost its approximately $5 billion economic rescue plan.

Some legislators in the Kuwait parliament have demanded a bailout of indebted citizens to augment the recently announced stimulus package that will help banks lend to companies.

Investment firms in Kuwait have been finding it hard to get fresh loans due to the global crisis.

Parliament is expected to debate the new plan on March 3rd.

Story Stocks

Rohm and Haas:

Rohm and Haas (ROH 56.50) reported better-than-expected Q4 earnings, although revenue dropped by a larger-than-expected amount and uncertainty remains regarding the Dow Chemical (DOW 10.88) takeover.

Sales fell 13% year-over-year to $2.03 billion, which was worse than the $2.28 billion consensus estimate. Rohm and Haas said the downturn was due to accelerating market declines in all of its businesses and regions, with the exception of salt.

ROH earned $0.69 per share, excluding asset impairment charges and other nonrecurring items, which was $0.02 better than the consensus estimate of $0.67, but down from year-ago adjusted EPS of $0.90. Including $0.08 in costs related to the proposed merger with Dow Chemical, $0.03 related to hurricanes and $0.41 in asset impairments, Rohm and Hass earned $0.17 per share, or $32 million.

For full year 2008, sales rose 8% to $9.6 billion. Adjusted earnings per share came in at $3.31, down slightly from $3.37 one year ago.

The company said, "As market conditions continue to weaken, we are implementing additional actions to navigate these difficult times, while remaining focused on positioning our businesses for success when markets recover."

Rohm and Haas added that it believes Dow Chemical has the ability to live up to its obligations and complete the $78 per share takeover deal. Dow failed to close the deal by the Jan. 27 deadline and recently posted a quarterly loss.

09:30 ET

McDonald's: McDonald's (MCD 58.46) reported another strong month of sales in January, as cash-strapped consumers continue to seek out the low-cost offerings of the restaurant chain. McDonald's said that January same-store sales across the company were up 7.1% year-over-year. The U.S. saw same-store sales increase 5.4%, driven by strong breakfast sales. Same-store sales in Europe were up 7.1% and the company saw strong 10.2% growth in Asia/Pacific, Middle East and Africa. McDonald's said successful Chinese New Year promotions contributed to January's performance. Looking ahead, McDonald's said same-store sales in February will be negatively impacted by about 4 percentage points as the prior year's results included one extra day due to leap year. McDonald's said sales saw a calendar shift benefit of about 2 percentage points in January. Shares of MCD are up less than 1% in Monday's premarket trade.

09:17 ET

Hasbro: Hasbro (HAS 23.54) reported lower-than-expected earnings as the toymaker said promotional pricing negatively impacted operating profit. Hasbro reported earnings of $0.62 in the fourth quarter, $0.13 worse than the First Call consensus of $0.75. Revenues fell 5.1% year-over-year to $1.23 billion, short of the $1.27 billion consensus. The maker of Scrabble and Monopoly said that it put promotional programs in place prior to the holidays. As a result, Hasbro said it ended 2008 in a "much better inventory position than we would have otherwise, although it did negatively impact operating profit in the fourth quarter."

09:01 ET

NYSE Euronext: NYSE Euronext (NYX 22.90) reported lower-than-expected earnings and said that average daily volume was down in January. For the fourth quarter, NYSE Euronext reported earnings of $0.52 per share, excluding nonrecurring items, $0.03 worse than the First Call consensus of $0.55. Pro-forma non-GAAP revenues rose 20.8% year-over-year to $1.18 billion. The consensus expected $1.19 billion. Net revenues benefited from higher volumes, but were negatively impacted by new pricing initiatives which resulted in higher rebates to customers. Foreign exchange variances also negatively impacted net revenues by $55 million in the quarter. The company said it will maintain its $0.30 quarterly dividend through 2009, but that it "decided to refrain from stock repurchases at this time." NYSE Euronext said the trading volumes are down year-over-year in January, with average daily volume in the U.S. down 8.9% to 3.5 billion shares and European down to 1.3 million transactions from 1.9 million in 2008.

08:34 ET

Whirlpool: Whirlpool (WHR 36.39) posted lower profits and said it "expect(s) 2009 economic conditions to be among the most challenging that we have faced." For the fourth quarter, Whirlpool reported earnings of $0.60 per share, including restructuring costs and product recall expense. The results may not be comparable to the First Call consensus of $0.78. Revenues fell 19.0% year-over-year to $4.32 billion, short of the $4.88 billion consensus. Whirlpool said fourth-quarter earnings reflect sharply lower global unit sales and production volumes, higher material and oil-related costs and unfavorable foreign currency exchange movements compared to the fourth quarter of 2007. Whirlpool issued downside guidance for 2009, expecting earnings between $3.00 and $4.00 per share, excluding nonrecurring items. The current consensus calls for earnings of $4.12 per share. Based on current economic conditions, Whirlpool said it expects 2009 U.S. industry unit shipments to decline approximately 10% from 2008. Whirlpool expects shipments in the European region to decline 8%, and sees both Latin America and Asia flat to down 5%.

Obama can learn from Bush on Burma

As President Barack Obama dismantles the legacy of the Bush administration, there is one area in which he should actually emulate and build on his predecessor's record: Burma. Whatever else one thinks of George Bush, few could deny the contribution he, and particularly his wife Laura, made to raising the profile of the suffering in Burma. In 2005, he spent almost an hour in the Oval Office with a young Shan woman activist from Burma, Charm Tong, and heard about the military regime's use of rape as a weapon of war. In 2006, a day after former Czech President Vaclav Havel and former Archbishop of Cape Town Desmond Tutu published a report calling for Burma to be placed on the UN security council agenda, the US declared its support for the initiative. The US consistently led the way in raising Burma at the security council and seeking a resolution, initially with slow and grudging support from its natural allies. The US has the only meaningful set of sanctions against the regime, and in the past two years it has sought to tighten and target them further. Laura Bush became a particular champion of Burma, making personal telephone calls to UN secretary-general Ban Ki-moon, hosting a roundtable at the UN in New York and holding her own press conference after Cyclone Nargis in which she strongly condemned the military regime's denial of aid to the victims. Last year, on a visit to Thailand, Mr Bush met Burmese dissidents in the US embassy in Bangkok, and his wife visited a refugee camp along the Thai-Burmese border. For all their faults, the former president and first lady were consistent in highlighting the crisis in Burma and increasing international pressure on the junta. As President Obama and secretary of state Hillary Clinton develop their foreign policy, they face many challenges, not least in the Middle East. Africa will understandably be a priority, given the scale of poverty on the continent and the president's own personal roots. Relations with Pakistan and China will be of strategic importance, and like Africa, the president will have a particular interest in Indonesia having spent part of his childhood there. But amid this long list of issues, the new administration must not lose sight of the dire situation in Burma. There are five key ways in which the new administration can build on the previous government's record on Burma. First, keep raising Burma at every opportunity, within the UN and with Burma's neighbours. Empower the US special envoy appointed in the final days of the Bush administration to accelerate and intensify the international effort for change in Burma. Second, don't let the increasingly vocal and misplaced criticism of sanctions and international pressure result in a change in the US sanctions, but rather focus sanctions more sharply at their rightful target – the generals. Third, step up pressure on the UN secretary-general, his special envoy and the security council to spell out meaningful benchmarks for progress, accompanied by a clear indication of the consequences if the regime fails to comply. The first such benchmark should be the release of political prisoners and the beginning of meaningful dialogue. Fourth, consider invoking the UN's "responsibility to protect" mechanism in regard to Burma. The regime is perpetrating crimes against humanity, including the use of rape as a weapon of war, forced labour, torture, forcible conscription of child soldiers, the use of human minesweepers and the destruction of more than 3,200 villages in eastern Burma alone. Over a million people are internally displaced, and thousands more forced to flee the country. The situation surely meets "responsibility to protect" criteria. Lastly, the US should abandon its previous opposition to the international criminal court and seek a referral of a case against Burma's generals for crimes against humanity. Burma's suffering under military rule has gone on for almost half a century. But in the past two years, the junta has surpassed itself in its level of callousness and brutality. The brutal suppression of Buddhist monks in September 2007, the deliberate restriction and diversion of aid following Cyclone Nargis last year, the sham referendum on a new constitution, the sentencing of dissidents to 65 years or more in jail and the regime's failure to help Chin people in western Burma facing famine are all examples of its barbaric nature. The junta is gearing up to solidify and legitimise its rule through elections in 2010, but everyone knows what a sham the ballot will be. And yet various UN agencies, non-governmental organisations and academics have been painting an extraordinarily rosy picture of the situation, which has little relation to reality. Bush may have made many mistakes, but unlike many in the international community he did not pussyfoot about on Burma. Obama may be more predisposed toward consensual multilateral politics than his predecessor, but he should not do so at the cost of yet more lives in Burma. Be more favourable toward the UN, by all means Mr Obama – but give it back the spine it has lost.

U.S. stocks slump despite encouraging economic data

U.S. stocks were in the red Thursday despite a surprise rise in January retail sales.

In mid-afternoon trading the Dow Jones Industrials were down 129.66 points or 1.63% at 7,809.87.

The Nasdaq Composite was off 10.02 points or 0.66% at 1,520.48.

The Standard and Poor's 500 was down 11.00 points or 1.32% at 822.74.

The U.S. dollar was mixed. In mid-afternoon trading in New York the euro was down a touch to 1.2818. The yen was fractionally stronger at 90.38.

The British pound tumbled to 1.4209, while the Swiss franc was little changed at 1.1639.

The Australian dollar was lower at .6485, while the Canadian dollar eased to 1.2520.

Stocks fall as investors ask: Will stimulus work?

By MADLEN READ and TIM PARADIS

NEW YORK - The stock market's concerns about the economy aren't letting up even after Congress reached a deal on a $789 billion economic stimulus plan.

With Wall Street skeptical about how effective the stimulus will really be, a surprise jump in January retail sales and better-than-expected results from Coca-Cola Co. could not keep the stock market from trading lower Thursday. The Dow Jones industrial average fell more than 100 points, trading near its lowest levels since last November.

"The stimulus bill looks like a little bit of a wet blanket," said Randy Frederick, director of trading and derivatives at Charles Schwab. "There is some concern that maybe this thing won't work as well as expected."

President Barack Obama says the plan will save or create more than 3.5 million jobs. But investors have been burned before: last year's stimulus refund to taxpayers and a $700 billion financial bailout have not been able to reverse the economy's slide.

Some market participants are worried the current stimulus plan has fallen victim to politics. Those who wanted small, targeted stimuli are calling the package too large, and those who preferred a bigger stimulus of nearly $1 trillion say the current package could be too weak.

"Nobody's completely happy with compromise," said Citigroup economist Steven Wieting. He said the stimulus should help the weak parts of the economy, and that the Treasury Department's plan for banks' "toxic assets" should provide some stability to the credit markets, but that the unemployment rate will still likely rise to 9 percent - and perhaps higher.

This week has been a disappointing one for the stock market, which rallied last week ahead of anticipated announcements about the stimulus and the financial bailout plan. That rally was erased Tuesday after Treasury Secretary Timothy Geithner said the government will boost lending, determine which banks should get extra funding, and remove toxic assets from banks' books - but provided few details about how the plans would work.

In early afternoon trading Thursday, the Dow Jones industrial average dropped 133.25, or 1.68 percent, to 7,806.28, after a moderate advance on Wednesday.

The biggest gainer in the Dow was Coca-Cola, which posted an 18 percent drop in fourth-quarter earnings but topped Wall Street's forecast in terms of adjusted earnings. The soft drink maker also said its case volume grew. Coca-Cola shares rose $2.47, or 6 percent, to $43.74.

Broader stock indicators were also lower. The Standard & Poor's 500 index fell 12.52, or 1.50 percent, to 821.22, and the Nasdaq composite index fell 7.63, or 0.50 percent, to 1,522.87.

The Russell 2000 index of smaller companies fell 3.65, or 0.81 percent, to 444.30.

Declining issues outnumbered advancers by about 3 to 1 on the New York Stock Exchange, where volume came to 646.3 million shares.

Government bond prices were mixed. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 2.80 percent from 2.76 percent late Wednesday. The yield on the three-month T-bill rose to 0.30 percent from 0.29 percent.

The dollar was higher against other major currencies, while gold prices rose.

Light, sweet crude fell 79 cents to $35.15 a barrel on the New York Mercantile Exchange.

Economic data was mixed Thursday.

The Commerce Department said Thursday that retail sales jumped 1 percent in January, the biggest increase in 14 months, after a 2.7 percent drop in December. Economists polled by Thomson Reuters had predicted that sales fell 0.8 percent last month.

The department also said, however, that businesses cut inventories 1.3 percent in December, the biggest reduction in seven years. The 1.3 percent drop in December was far steeper drop than the 0.9 percent decline analysts had expected; cuts in inventories show that businesses see weak demand from customers.

Meanwhile, the Labor Department said first-time claims for unemployment benefits dropped to a seasonally adjusted 623,000, from an upwardly revised figure of 631,000 the previous week. The total came in above the 610,00 claims analysts had been expecting.

And the number of people still continuing to seek unemployment benefits rose to 4.81 million from 4.78 million, the highest since records began in 1967. Economists expected 4.8 million.

Overseas, Japan's Nikkei stock average fell 3.03 percent. In afternoon trading, Britain's FTSE 100 fell 0.76 percent, Germany's DAX index fell 2.70 percent, and France's CAC-40 fell 2.09 percent.

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