Shares plunged on Wall Street and the dollar fell sharply tonight after an increase in jobless claims and weak signals from industry prompted fears that the US is heading for a double-dip recession.
The Dow Jones index fell 200 points at one stage in morning trading in New York after the US labour department reported that 500,000 new claims for unemployment benefit were filed in the week ending 14 August – an increase of 12,000 on the previous week and the highest figure for nine months.
The already gloomy mood was compounded when the Philadelphia Fed, one of the Federal Reserve's 12 regional reserve banks, published its monthly health check on manufacturing in America's mid-Atlantic region. The survey, seen by Wall Street as a barometer of US industrial conditions, showed activity had contracted unexpectedly for the first time since July 2009.
President Barack Obama called on Congress to pass a bill providing support for small businesses, but Wall Street believes the threat to the world's biggest economy will also require action by the Federal Reserve to expand the money supply through its quantitative easing programme. James Bullard, president of the St Louis Fed, said tonight that the central bank would need to step up its purchases of bonds should the threat of deflation intensify.
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On June 29, 2010, Ankara, in a first sign of frustration, called on Iran to return "as soon as possible" to the negotiating table over a nuclear fuel swap deal. According to a senior Turkish diplomat, Turkey voted against tougher UN sanctions under the condition that Iran would engage itself in talks on its controversial nuclear program. However, on June 28, 2010 Ahmadinejad announced that any negotiations will be postponed until late August in order to "punish" Western powers. Tehran left it unclear when and if it will continue to talk with Brazil and Turkey, its two allies.
A flotilla of nine vessels organized by pro-Palestinian activists is currently en route to Gaza carrying various goods. However, the total amount of supplies transported by the flotilla, 10,000 tons, is less than the weekly average amount of goods transferred by Israel into Gaza.
Private Israeli citizens organized a flotilla of their own to draw attention to the fact that Hamas continues to illegally hold abducted Israeli soldier Gilad Shalit. The Israeli flotilla is also calling attention to what they say is the poor treatment of minorities in Turkey, since some of the pro-Palestinian activists' vessels sailing to Gaza embarked from Turkey.
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A Qassam rocket landed near a building in one of the communities in the Sdot Negev Regional Council early Wednesday, causing damage to a packing-house. There were no reports of injuries.
Avi Aptelboim, head of the community's emergency squad, reported that "a Color Red siren was sounded at around 4 am, followed by a rocket which landed inside the community, near the packing-house. The packing-house sustained heavy damage and it won't be operated today. There were no injuries, thank God." "The rocket landed right next to the packing-house.
The equipment near the packing-house was damaged, and the building itself sustained damage from shrapnel," said one of the residents.
Maze cartoon of a motorcycle lableled, "middle east" speeding down a road in the direction of war, and away from the direction of peace. Created by Yonatan Frimer
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Turkey’s provocative flotilla—often described in Orwellian terms as a humanitarian mission—has set in motion a flurry of diplomatic activity, but if the Iranians send escort vessels for the next round of Turkish ships, it could present a casus belli.
It is also instructive that Syria is playing a dangerous game with both missile deployment and rearming Hezbollah. According to most public accounts, Hezbollah is sitting on 40,000 long-, medium- and short-range missiles and Syrian territory has served as a conduit for military material from Iran since the end of the 2006 Lebanon War.
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Pictures of Tony Hayward yachting at the Isle of Wight billed as a PR nightmare and insulting to those affected by oil slick
Images of the beleaguered BP chief executive, Tony Hayward, attending a yacht race on the Isle of Wight, just 48 hours after a hostile interrogation by a US congressional committee on the Gulf Coast oil spill, have provoked sharp criticism on both sides of the Atlantic.
President Barack Obama's chief of staff, Rahm Emanuel, condemned Hayward's attendance at the event as "part of a long line of PR gaffes and mistakes" on ABC television, adding: "I think that we can all conclude that Tony Hayward is not going to have a second career in PR consulting".
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Smugglers in Egypt and Gaza worry their trade will be adversely affected by returning Palestinians lugging goods bought for cheaper prices in Egypt. They know a total termination of the blockade will spell the end of their industry.
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The United States appears to be moving toward early implementation of the New START treaty signed with Russian less than one month ago.
The rapid implementation is evident in the State Department’s latest fact sheet, which declares that the United States as of December 31, 2009, deployed 1,968 strategic warheads.
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| Current pace of U.S. strategic warhead downloading could reach New START limit in 2010. |
The New START force level of 1,550 deployed strategic warheads is not required to be reached until 2017 at the earliest. But at the current downloading rate, the United States could reach the limit before the end of this year.
Since the signing of the Moscow Treaty in 2002, the United States has removed an average of 490 warheads each year from ballistic missiles and bomber bases, for a total of approximately 3,436 warheads. There are now only a few hundred strategic warheads left at U.S. bomber bases, with most of the deployed warheads concentrated on ballistic missiles.
The last time the United States deployed less than 2,000 strategic warheads was in 1956. The peak was nearly 12,790 deployed strategic warheads in 1987.
