Showing posts with label Japan Triple Disaster. Show all posts
Showing posts with label Japan Triple Disaster. Show all posts

Thursday, April 7, 2011

Stocks fall after another earthquake hits Japan

Stocks fall after another earthquake hits Japan


NEW YORK (AP) -- Stocks fell Thursday after a 7.4-magnitude earthquake struck off the coast of northern Japan. The losses moderated after a tsunami warning was lifted.

The Dow Jones industrial average fell as many as 96 points in morning trading before recovering most of its losses. Japan's stock market had already closed by the time the earthquake struck.

The quake rattled investors, partly since it struck near the same area as the massive earthquake that triggered devastating tsunami on March 11. Stock indexes bounced back after the impact of the quake turned out to be less than initially feared.

The Dow was down 37 points, or 0.3 percent, at 12,388 in afternoon trading. The broader S&P 500 fell 3, or 0.2 percent, to 1,333. The Nasdaq composite index fell 2, or 0.1 percent, to 2,798. All three indexes had been higher in earlier trading.

In the U.S., economic news was mostly positive. The Commerce Department said 382,000 people applied for unemployment for the first time last week. That was the third drop in four weeks. The decline in applications suggests layoffs are slowing.

Major retailers also reported better-than-expected sales for March at stores that have been open at least a year. Analysts had predicted declines because of cold weather and higher gas prices.

Costco Wholesale Corp. rose 4 percent after reporting a 13 percent gain in sales. Limited Brands Inc. rose 1 percent after it said its revenue increased 14 percent because of strong sales at its Victoria's Secret stores. Nordstrom Inc. and Macy's Inc. also rose about 1 percent.

Bed Bath & Beyond Inc. rose 11 percent, the most of any stock in the Standard & Poor's 500 index. The home furnishings retailer posted strong results late Wednesday and said it expected earnings to rise 10 percent to 15 percent this year.

Constellation Brands Inc. rose 6 percent. The maker of Robert Mondavi wine and Svedka vodka recovered from a loss in the same quarter a year ago and reported a double-digit increase in wine sales in North America.

Bond prices rose, sending their yields lower. The yield on the 10-year Treasury note fell to 3.54 percent from 3.55 percent late Wednesday.

The European Central Bank raised its main interest rate by a quarter point to 1.25 percent, a day after Portugal asked for a bailout. The Bank of England kept its main interest rate unchanged at 0.5 percent.

Sunday, March 20, 2011

Japan tragedy seared into the world's imagination

OKYO – There are events in history that sear themselves into the world's collective imagination, and enter the realm where myth meets heartbreaking reality.

Japan's tragedy is one of those events. Already, it seems reasonable to surmise it could prove one of the most significant calamities of our time — one that shapes policies, economies, even philosophies for decades to come in an increasingly interconnected world.

There is the sheer, surreal force of the images emerging from afflicted zones: cars perched on rooftops, ships sitting in rice paddies, helicopters in a David-and-Goliath battle against radiation-spewing nuclear reactors.

And the way it haunts us with some of our most basic fears: Death by water. Or rubble. Or nuclear fallout.

Add to that, it's a crisis with an impact that will be felt around the planet: Japan is one of the most advanced countries in the world, its third-largest economy, its most successful car-seller and its second-most generous giver of foreign aid.

"This event has the potential to be the most globally disruptive natural hazard in modern times," said Rob Verchick, a disaster expert at Loyola University in New Orleans. "And it may just be, in the context of globalization, of all time."

The Asian tsunami of 2004 killed more people. The fall of the Twin Towers launched two wars. The collapse of the Berlin Wall spelled the end of an empire.

But in this event, psychological, even philosophical, shock over the confluence of human tragedy and nuclear catastrophe yields some fundamental questions. If a technological power like Japan can be so vulnerable, who's safe? Is even minimal risk, as with nuclear power, too much risk? Do we need to rethink the role of government in protecting the public?

Shaking us from modern-day hubris, we're forced to think about whether even the most advanced societies, with almost obsessively meticulous safety backstops, are still pitifully at the mercy of the elements.

But amid tragedy, Francis Fukuyama, the eminent Stanford philosopher and author of "The End of History and the Last Man," sees the possibility for the crisis to become a galvanizing force for political change in the world.

"It does seem to me a natural disaster like this, because it reminds everybody of how commonly vulnerable they are, could be used as an opportunity to reshape the whole tone and character of politics," Fukuyama told The Associated Press.

The unbelievable sight of rich Japan — famous for trains running like clockwork, state-of-the-art gadgets, concern for safety and order — laid low by a freak force of nature beyond human control has been a terrifying wake-up call. On Friday, Japan's government acknowledged that the triple blow of quake, tsunami and nuclear disaster completely overwhelmed even its elaborately laid out, and fastidiously practiced, emergency response systems.

"The unprecedented scale of the earthquake and tsunami that struck Japan, frankly speaking, were among many things that happened that had not been anticipated under our disaster management contingency plans," said Chief Cabinet Secretary Yukio Edano.

There's another great earthquake that changed the world: Lisbon, 1755. The tsunami-churning temblor flattened the Portuguese city, killed tens of thousands of people, and caused Enlightenment thinkers to re-imagine the role of government and community.

Experts say this crisis could become another historical turning point that may alter mankind's perception of its relationship to the world, and societies' relationship with one another in an age of globalization.

"What the Lisbon earthquake experience contributed to Western history (was) this move of government being responsible to its people and protecting them in a community-driven way," said Verchick. "Is there anything like that that might happen as a result of the Japan tsunami and earthquake and nuclear disaster? I think that the answer is yes. It's related to the idea of global community."

Already the crisis is triggering an urgent rethink of nuclear power around the world, from China to Germany, where pressure is building to sharply accelerate a plan to phase out nuclear energy.

"Fukushima, March 12: 15:36: The End of the Nuclear Age," read the cover of the Germany's prestigious Der Spiegel magazine — referring to the exact time an explosion rocked the Fukushima Dai-ichi nuclear plant where workers are racing to prevent a meltdown.

While the Asian tsunami and last year's earthquake in Haiti triggered an enormous outpouring of worldwide sympathy and aid, the Japan catastrophe is one where people in industrialized countries can more easily see themselves in the victims' shoes.

"One of the things that make this a unique situation is that it is a catastrophic event with incredible terrifying loss that's occurring in a country that is also wealthy," said Verchick, author of the book Facing Catastrophe: Environmental Action for a Post-Katrina World.

Verchick said that in New Orleans, many people who lived through Hurricane Katrina are watching the scenes in Japan with a sense of gut-wrenching familiarity, with some even experiencing symptoms associated with post-traumatic stress disorder.

The Japan tsunami will go down in history as the more significant disaster, according to James Orr, professor of East Asian studies at Bucknell University. Not because of any difference in suffering, but because its effects will be felt around the planet in a more direct way. "Katrina was very much a regional disaster," he said.

And that global punch is given more force from the historic speed with which the images of devastation reached every corner of the planet.

"People all over the world have the ability to almost immediately see the disaster on the ground," said Verchick. "And that actually produces psychological and social changes in people and communities all over the world."

GM cuts unnecessary spending after Japan disaster

GM cuts unnecessary spending after Japan disaster


GM reduces nonessential spending after Japan earthquake and tsunami disrupts parts production


NEW YORK (AP) -- GM said Saturday it is cutting unnecessary spending companywide as it assesses the impact of production disruptions from the earthquake and tsunami in Japan.

The move will help the automaker preserve cash as it deals with the financial implications from shortages of parts made in Japan, a company spokesman said. The cost-cutting effort, which includes travel, took effect last week and will be in place for an undetermined period.

The news follows General Motors Corp.'s announcement Friday that two of three shifts will be canceled at a plant in Eisenach, Germany on Monday and Tuesday. Another plant in Zaragoza, Spain will remain closed Monday. The plants produce the Corsa compact car.

In the U.S., GM said Thursday it will halt production at its pickup plant in Shreveport, Louisiana, next week.

"The whole industry is still in the process of figuring out what the implications are from the disaster in Japan," said GM spokesman Klaus-Peter Martin.

On Friday, Honda Motor Co. said it expects to resume auto and motorcycle production in Japan on Wednesday. But in an e-mail Thursday to U.S. dealers, it said it can't guarantee when production will return to full capacity.

The carmaker also asked dealers to suspend May orders for Japan-made vehicles because they may be needed to fill existing orders that have been delayed because of disruptions. Typically, dealers order cars six weeks in advance.

More than 80 percent of Honda and Acura vehicles sold in the U.S. are made in North America. Models sold in North America but made in Japan are the Fit, CR-Z, Civic Hybrid, Insight, Acura TSX, Acura RL and a small number of CR-Vs.