FOREX-Euro slides again vs dollar on fears of spreading debt crisis - Reuters UK
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FOREX-Euro falls to near 2-yr low as Greece, Spain weigh - Reuters UK
Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
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FOREX-Euro off near 2-yr lows, outlook still bleak - Reuters
* Euro gets a respite, still on track for weekly loss
* Traders cite option barriers at $1.2500, stops at $1.2480
* Uncertainty in Greece keeps sentiment bearish
By Anirban Nag
LONDON, May 25 (Reuters) - The euro inched up from two-year lows against the dollar on Friday as bearish investors took a breather from a sharp sell-off this week, but worries about a possible Greek exit from the euro zone and the risk of contagion could make gains fleeting.
The euro traded 0.4 percent higher on the day at $1.2581 , pulling away from $1.25155, the lowest level since July 2010 that was hit the day before. Traders cited a reported option barrier at $1.2500 that could check losses with offers around $1.2600 and stop-loss orders above $1.2620.
Despite the bounce, the common currency has lost more than 5 percent against the dollar so far this month and is on track for its fourth straight week of losses, raising the possibility of a test of the 2010 low of $1.1875.
Macro funds and institutional investors have ramped up euro selling after an inconclusive election in Greece left the country at risk of bankruptcy and a possible exit from the euro zone. Greeks vote again on June 17, with polls showing a close race between parties supporting and opposing terms of the country's international bailout, keeping markets on tenterhooks.
"The euro is a bit higher today, but I will be surprised if it takes stops above $1.2620. The medium-term prospects are not good," said Geoff Kendrick, currency analyst at Nomura.
"We think if Greece does not exit the euro zone, the euro will see a gradual decline to $1.23 in coming months. But if it does, then we see the euro falling to $1.20 by the end of the second quarter and $1.15 by the end the third."
Investors are also concerned about the health of the Spanish banking sector, chances of a deep and damaging slowdown in the euro area and the lack of any aggressive policy measures to address the escalating debt crisis.
Spanish lender Bankia, which was part nationalised this month, was set to ask the government for a bailout of more than 15 billion (US$19 billion) on Friday.
Many strategists expected euro selling to resume next week, although heavy short positioning would slow the momentum.
"We have got a standoff where the market is short and the news is bad and so we have tended to go down in stages," said Kit Juckes, currency strategist at Societe Generale.
"Although it's almost impossible to imagine a set of circumstances where we get good news. The pullbacks in this move down since the break of $1.30 have got really tiny."
DARKENING PICTURE
Investor skittishness was well-reflected in the options market, where euro/dollar one-month implied volatility spiked to 13.13 percent, its highest in more than four months.
With the euro on the backfoot the dollar has been the chief beneficiary, with its index against a basket of major currencies edging up to 82.411, the highest since September 2010.
Against the yen, the dollar was steady at 79.51 yen, supported by Tokyo importers and investors squaring positions ahead of a long weekend in the United States. Sell offers around 80.00 yen were poised to cap any further gains, traders said.
The euro was flat against the Swiss franc at 1.2015 francs, having jumped to 1.20769 francs on Thursday, its highest since mid-March on market talk the Swiss government is going to impose a tax on deposits and chatter that the Swiss central bank initiated a short squeeze in the pair.
Traders said the Swiss National Bank has been buying euros in the past few weeks to protect the floor at $1.20 francs, although some investors were still piling on bets through the options market that the peg will be breached in coming days if the euro zone crisis escalates.
Accusations that climate science is controlled by money are mistaken - Wired.co.uk
One of the unfortunate memes that has made repeated appearances in the climate debate is that money isn't just influencing the public debate about science, but it's also influencing the science itself. The government, the argument goes, is paying scientists specifically to demonstrate that carbon dioxide is the major culprit in recent climate change, and the money available to do so is exploding.
Although the argument displays a profound misunderstanding of how science and science funding work, it's just not going away. Just this week, one of the sites where people congregate to criticise mainstream climate science once again repeated it, with the graph accompanying this story. That graph originated in a 2009 report from a think tank called the Science & Public Policy Institute (notable for using the serially confused Christopher Monckton as a policy advisor).
The report, called " Climate Money: The climate industry: $79 billion (£50.4 billion) so far -- trillions to come" (PDF) and prepared by Australian journalist Joanne Nova for the Science & Public Policy Institute, claims to show how money has distorted climate science. There are several aspects to this argument, but we'll start with the money itself.
Who's got the money?
Many discussions have focused on the fact that businesses with a
large carbon output (like fossil fuels extractors) have funded PR
and lobbying efforts that, in part, have attempted to undercut the
scientific case for human-driven climate change. It notes that
there is now significant money being made by companies that build
carbon-neutral energy sources and energy efficient technology, some
coming from tax incentives and subsidies. In addition,
carbon-trading markets are predicted to grow rapidly over the
coming decades. Combined, the report asserts, this money provides
an incentive to keep the spotlight focused on carbon.
In short, some of the green industries are now in the same position as their fossil fuel counterparts, in that they have an incentive to shape policy and the public support for it. There's a definite element of truth to this, although there are clearly reasons other than climate change -- ocean acidification, energy security, extending the lifetime of finite resources -- for promoting efficiency and green energy.
But the key thing here is that, at best, these companies can influence things like public perception and policy responses. They don't influence the underlying science because almost none of them are paying any scientists to gather data. So, although a focus on the income of various companies might tell us something about public opinion, it doesn't really say much about the science.
The false assertion that money is distorting the science comes, in part, from a spectacular misreading of the graph that accompanies this article.
The graph ostensibly shows how the US has gone from essentially funding nothing in the way of climate research to spending over $7 billion (£4.47 billion) a year. But the vast majority of that money is in the form of "Climate Technology," and a careful reading of the report indicates that this goes to things like wind and solar power, biofuel production, and things of that nature. None of that money goes to the researchers who are actually generating the results that point to anthropogenic warming, so it can't possibly provide an incentive to them.
The money that is actually going to climate science is on the bottom of the graph, in purple. And, as that shows, funding has been essentially flat since the early 1990s. (Funding has gone up slightly in recent years, but is still in the neighbourhood of $2 billion (£1.2billion) annually.) A lot of that money doesn't actually go to scientists, either, as it pays to support everything from some of NASA's Earth-monitoring satellites to land and ocean temperature monitoring.
The other issue with this graph is that it gives the false impression that funding shot up from nowhere around 1990. The truth of the matter is that the US has been funding climate science for decades. It's why we have things like a record of CO2 levels that goes back to the 1950s, temperature records that span over a century, and a detailed history of periods like the ice ages. People didn't just suddenly start studying this stuff in 1990 -- and much of the work from before that date was funded by the government. What changed was the accounting. There are over a dozen different branches of the government that fund some sort of science, but it wasn't until 1990 that the government formed the Climate Change Science Program, which started aggregating the expenditures across agencies.
There has never been any sudden boom in government funding for climate research that is luring people onto the research track, much less inducing them to support the consensus view. If anything, many years of flat funding would provide an incentive for people to look to getting out of the field. The graph, held up as evidence that climate scientists are being led around by money, actually shows the exact opposite.
Where's that money going?
But maybe that money is somehow being directed in a biased manner,
distributed in a way that ensures the current consensus is
supported. "Where is the Department of Solar Influence or the
Institute of Natural Climate Change?" Nova asks, elsewhere
claiming, "Thousands of scientists have been funded to find a
connection between human carbon emissions and the climate. Hardly
any have been funded to find the opposite."
This displays an almost incomprehensible misunderstanding of how science research works. Thereare institutes that are dedicated to studying the Sun -- the Naval Research Laboratory has one, as does NASA. But those institutes are focused on learning about what the Sun actually does, not squeezing what we learn into some preconceived agenda. For decades, solar activity has been trending downwards, even as temperatures have continued to rise. It's not that the researchers are being induced or compelled to some sort of biased interpretation of the data. Reality just happens to have a bias.
The same thing works in other areas as well. A number of countries have spent large sums of research dollars to put Earth-monitoring satellites in orbit, not with the intent of finding anything in particular, but because monitoring the Earth can tell us important things. This hardware has imaged the Greenland ice sheet -- again, not because of some sort of bias, but because the sheet is very big and very significant. Most of these studies have suggested that ice loss is accelerating, but a recent one concluded, "sea level rise from Greenland may fall well below proposed upper bounds."
The researchers weren't from some sort of "Institute to discover a stable sea level." They were from departments focused on polar research and Earth sciences. What Nova doesn't seem to get is that the people who study the planet actually pay attention to what the planet tells them, not to what their institute may be titled.
(Incidentally, this paper is also a clear indication that research that indicates things aren't as bad as they could be not only gets published, but makes it into very prestigious journals.)
Like many other self-proclaimed skeptics, Nova also has the bizarre idea that research normally proceeds by "auditing" existing studies. "Auditing AGW research," she writes "is so underfunded that for the most part it is left to unpaid bloggers who collect donations from concerned citizens online." But nobody audits the JPL to see if it's handling the Cassini probe properly; geneticists aren't being asked to open their books so that other scientists can see if they're fudging the numbers.
Science simply doesn't proceed through audits. The Greenland paper linked above provides a much more typical picture of how things work. The researchers behind it didn't simply reanalyse what others had done; they got new (and, in many ways, better) data that addressed the same issue and provided a more comprehensive picture of what was going on at the ice sheet's glaciers.
In short, you generally don't make an impression on science by auditing past data; you do it by coming up with better data.
It's pretty strange that people find in the graph (which shows research stuck in neutral for decades) evidence of a flood of money into climate science that distorts its conclusions. But it's unfortunately typical that an argument focused on climate science leaves the facts behind from the start.
Source: Ars Technica
Diablo 3's real-money auction house delayed again - CVG Online
The launch of Diablo 3's real-money auction house has been delayed again.
"In light of the post-launch obstacles we've encountered, we have made the decision to move the launch of the real-money auction house beyond the previously estimated May time frame," Blizzard said on the Diablo forums.
"As we mentioned in our original announcement, our goal has always been to ensure everyone has the smoothest experience possible when the real-money auction house launches, and we need a bit more time to iron out the existing general stability and gameplay issues before that feature goes live.
"While we don't have a new launch date to share just yet, we'll have more information soon."
Blizzard also issued a lengthy statement addressing a number of post-launch issues players have encountered with Diablo 3, most notably the hacking of user accounts.
Earlier this week Activision Blizzard announced that Diablo 3 had become the fastest-selling PC game ever after shifting 3.5 million copies in its first 24 hours of availability.
If you haven't already, why not check out our Diablo 3 review and our Diablo 3 guide, which features 30 essential tips and tricks every dungeon crawler should know.
Money market fund assets rose to $2.569 trillion - Yahoo Finance
NEW YORK (AP) -- Total U.S. money market mutual fund assets rose by $1.19 billion to $2.569 trillion for the week that ended Wednesday, the Investment Company Institute said Thursday.
Assets of the nation's retail money market mutual funds fell $1.26 billion to $889.51 billion, the Washington-based mutual fund trade group said. Assets of taxable money market funds in the retail category fell $820 million to $702.41 billion. Tax-exempt retail fund assets fell $450 million to $187.10 billion.
Meanwhile, assets of institutional money market funds rose $2.45 billion to $1.679 trillion. Among institutional funds, taxable money market fund assets rose $3.43 billion to $1.592 trillion; assets of tax-exempt funds fell $980 million to $87.06 billion.
The seven-day average yield on money market mutual funds was 0.03 percent in the week that ended Tuesday, unchanged from the previous week, said Money Fund Report, a service of iMoneyNet Inc. in Westborough, Mass.
The 30-day average yield was also unchanged from last week at 0.03 percent. The seven-day compounded yield was flat at 0.03 percent. The 30-day compounded yield was unchanged at 0.03 percent, Money Fund Report said.
The average maturity of portfolios held by money market mutual funds was unchanged from the previous week at 45 days.
The online service Bankrate.com said its survey of 100 leading commercial banks, savings and loan associations and savings banks in the nation's 10 largest markets showed the annual percentage yield available on money market accounts was unchanged from last week at 0.13 percent.
The North Palm Beach, Fla.-based unit of Bankrate Inc. said the annual percentage yield available on interest-bearing checking accounts was unchanged from the week before at 0.06 percent.
Bankrate.com said the annual percentage yield on six-month certificates of deposit was unchanged from the previous week at 0.22 percent. The yield on one-year CDs was also unchanged at 0.33 percent. It was flat at 0.53 percent on two-and-a-half-year CDs and held steady at 1.13 percent on five-year CDs.
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