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Joined Feb 3, 2009
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North Korea Shoots Off a Bottle Rocket Over Japan’s Island Nation

Obama calls for the world to scramble against this move quickly

TOKYO/SEOUL (Reuters) – North Korea fired a long-range rocket on Sunday, provoking international outrage and prompting the U.N. Security Council to call an emergency meeting.

The reclusive communist state said a satellite was launched into orbit and circled the earth transmitting revolutionary songs. But both the U.S. military and South Korea said it had failed to enter orbit.

Analysts say the launch was effectively a test of a ballistic missile designed to carry a warhead potentially as far as Alaska.

It was the first big challenge for U.S. President Barack Obama in dealing with the North, whose efforts to build a nuclear arsenal have long plagued ties with Washington.

“With this provocative act, North Korea has ignored its international obligations, rejected unequivocal calls for restraint, and further isolated itself from the community of nations,” Obama said, speaking on a European tour.

Addressing a crowd in Prague, Obama committed himself to reducing the U.S. nuclear arsenal and said Washington would seek to engage all nuclear weapons states in arms reduction efforts.

Obama remained committed to talks to “denuclearize” North Korea, the White House said.

South Korea branded the launch of the rocket a “reckless” act, Japan said it was “extremely regrettable” and the European Union strongly condemned Pyongyang’s step. NATO condemned it has “highly provocative.”

“This is a regime that has placed itself outside international law,” French President Nicolas Sarkozy said.

“There is only one response possible: the union of the international community must punish a regime that doesn’t respect any international rules.”

China, the nearest the North has to a major ally, and Russia called on all sides for calm and restraint.

The U.N. Security Council will hold consultations on the launch at 3 p.m. EDT/1900 GMT on Sunday. U.N. diplomats said no country was considering imposing new sanctions but a resolution on stricter enforcement of earlier measures could be discussed.

The United States, Japan and South Korea see the launch as a violation of a Security Council resolution passed in 2006 after Pyongyang’s nuclear test and other missile tests. That resolution, number 1718, demands North Korea “suspend all activities related to its ballistic missile program.”

Both Russia and China have made clear they would block new sanctions by the Security Council, where they have veto power.

Chinese Foreign Minister Yang Jiechi called officials in the United States, Russia, Japan and South Korea to discuss the launch, the Foreign Ministry said.

“All sides ought to look at the big picture (and) avoid taking actions which may exacerbate the situation further,” a Chinese statement said.

The North Korean launch was unsuccessful but that did not change the response the United States is seeking at the United Nations, a U.S. official said.

“NEGOTIATING HAND STRENGTHENED”

Washington, Seoul and Tokyo had said before the launch that in reality it would be a test of the Taepodong-2 missile, which is designed to fly an estimated 6,700 km (4,200 miles).

The U.S. Northern Command said stage one of the missile fell into the Sea of Japan and the remaining stages along with the payload landed in the Pacific Ocean. No debris fell on Japan.

The command assessed the launch vehicle was not a threat to North America or Hawaii and took no action in response.

South Korea earlier said the rocket appeared to be carrying a satellite but Defense Minister Lee Sang-hee later told parliament that it failed to orbit, Kyodo news agency reported.

Japan said it stopped monitoring the rocket after it had passed 2,100 km (1,305 miles) east of Tokyo. In the only previous test flight of the Taepodong-2, in July 2006, the rocket blew apart 40 seconds after launch.

Analysts said the rocket launch may bolster North Korean leader Kim Jong-il’s authority after a suspected stroke last August raised doubts about his grip on power.

It wins North Korea the attention it has sought as the new U.S. administration wrestles with recession and the war in Afghanistan, and it could strengthen Kim’s hand in using military threats to win concessions from global powers.

“North Korea is likely to judge that its negotiating position has been strengthened now that it has both the nuclear and missile cards,” said Shunji Hiraiwa of Shizuoka Prefectural University in Japan.

U.N. Secretary-General Ban Ki-moon said the launch was not conducive to peace and stability and called on North Korea to return to six-country talks on ending its nuclear program.

Stephen Bosworth, U.S. special envoy for North Korea, said before the launch he hoped to bring Pyongyan back to the talks once the “dust” had settled.

While the talks among the two Koreas, China, Japan, Russia and the United States were central to efforts to get North Korea to give up its nuclear program, Washington was ready for direct contact with Pyongyang, he said.

The talks stalled in December and Pyongyang has threatened to quit them if the United Nations imposes any punishment over the launch.

Park Jong-kyu, an economist at the Korea Institute of Finance in Seoul, said the impact on financial markets when they reopen on Monday would most likely be short-lived or negligible.

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British Companies Issue the Most Profit Warnings Since 2001

First quarter yields 117 profit warnings

April 5 (Bloomberg) — British companies made the most profit warnings since 2001 in the first quarter as the deepest recession in a generation intensified, Ernst & Young LLP said.

U.K. companies issued 117 statements that their forecasts may be too high, the most in eight years and the third quarter in a row when warnings exceeded 100, the business consultancy said today. The highest number came from support services providers, followed by media and industrial engineering.

The British economy contracted the most since 1980 in the fourth quarter and the Bank of England says that the first quarter had a similar deterioration. Prime Minister Gordon Brown’s government is ramping up spending and guaranteeing bank assets to revive economic growth after the central bank cut the benchmark interest rate to a record low of 0.5 percent in March.

“The prospects for 2009 appear as uncertain and as gloomy as at any point in the crisis,” said Keith McGregor, an analyst at Ernst & Young. “We still believe that the worst of the downturn for many companies is yet to come.”

Support services company Rentokil Initial Plc, the world’s largest pest-control provider, on Feb. 20 canceled its dividend after profit fell in the fourth quarter. The FTSE 100 stock index has dropped about 30 percent in the past year.

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HSBC One of the More Healthier Banks Raises $17.7 billion That Was Sucked Up by Private Capital

Shareholders take down 97% of the offering

April 5 (Bloomberg) — HSBC Holdings Plc, Europe’s biggest bank, raised about $17.7 billion as investors bought 97 percent of the U.K.’s largest ever rights offer.

HSBC sold the shares to existing investors for 254 pence each, 41 percent less than the close on April 3 in London. HSBC on March 2 said it would seek the money after its North American operation posted a 2007 pretax loss of $15.5 billion.

The London-based bank is now “well-positioned for the uncertain economic environment and for growth opportunities,” HSBC said in an e-mailed statement today. HSBC will use the money to increase capital and finance acquisitions that fit with its strategy of expansion in emerging markets.

While HSBC has set aside about $53 billion to cover bad loans during the past three years, it has avoided taking U.K. government funding, unlike rivals Royal Bank of Scotland Group Plc and Lloyds Banking Group Plc.

“This staves off by a very long way the day when they would have to go cap in hand to the government,” said Alan Beaney, who helps manage about $2 billion at Principal Investment Management in Sevenoaks, southeast England. “The real question is have they raised enough?”

Financial Strength

The transaction lifts HSBC’s Tier 1 capital ratio, a key gauge of a bank’s financial strength, to 9.8 percent from 8.3 percent, within its target range of 7.5 percent to 10 percent.

HSBC said it met with more than 350 institutional investors to promote the sale, which was taken up by more than 98 percent of its investors based in Hong Kong. Billionaire Li Ka-shing and Hong Kong investors are underwriting at least $1.1 billion of the offering, which closed at 11 a.m. on April 3 in London.

HSBC shares have declined 42 percent during the past year, giving the company a market value of 52.8 billion pounds ($78.3 billion), bigger than RBS, Lloyds and Barclays Plc combined.

Goldman Sachs Group Inc. and JPMorgan Chase & Co. were lead underwriters for HSBC. BNP Paribas SA, Credit Suisse Group AG, RBS, Citigroup Inc., Societe Generale SA, Intesa Sanpaolo SpA, Nomura and ING Groep NV, also underwrote the offering, according to a note sent to clients and obtained by Bloomberg.

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Weekend Edition

Histories Mysteries
I’m always interested in time forgotten.

More of Histories Mysteries
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I’m always looking for places to travel on the cheap ! I’m also an avid fan of sailing so enjoy !

Insanity Files
No really it is good for you !

Health Matters
I am a carnivore. Let me rephrase that; I’m an omnivore. The surprising results of vegetables…and not the canned or frozen variety !

Calling all foodies
Again we have another story from the restaurant scene where the finest places are trying to get you in the door. Iconoclastic chefs are serving hot dogs to drum up bar biz and Food Gods like Thomas Keller has gone a’ la carte. Great time for you plebs to get a taste of high society.

Calling all motor heads
$109k is all you need

What’s That You Say ?
The next Dali ?

No Drugs Required
A mind trip for you

Don’t Forget to Laugh
D.C. from D.C.

Keep on Laughing

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