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By FABIOLA SANCHEZ, Associated Press Writer Fabiola Sanchez, Associated Press Writer – Fri Sep 25, 7:11 pm ET

PORLAMAR, Venezuela – Iran is helping to detect uranium deposits in Venezuela and initial evaluations suggest reserves are significant, President Hugo Chavez's government said Friday.

Mining Minister Rodolfo Sanz said Iran has been assisting Venezuela with geophysical survey flights and geochemical analysis of the deposits, and that evaluations "indicate the existence of uranium in western parts of the country and in Santa Elena de Uairen," in southeastern Bolivar state.

"We could have important reserves of uranium," Sanz told reporters upon arrival on Venezuela's Margarita Island for a weekend Africa-South America summit. He added that efforts to certify the reserves could begin within the next three years.

The announcement came as revelations that Iran has secretly been building a uranium-enrichment plant provoke concerns among countries including the U.S., Russia, France, Britain, Germany and China.

On Friday, Russian President Dmitry Medvedev urged Iran in a statement to prove it is not seeking to develop atomic weapons, saying the undeclared construction of an enrichment facility flies in the face of U.N. Security Council demands for Iran to stop uranium enrichment at its only declared facility.

Iran is under three sets of Security Council sanctions for refusing to freeze enrichment at what had been its single publicly known enrichment plant, which is being monitored by the International Atomic Energy Agency.

U.S. State Department spokesman Ian Kelly said recently that U.S. officials also have "concerns" about a possible transfer of nuclear materials between Iran and Venezuela.

But analysts say Iran, which has significant uranium deposits, currently has no need to import uranium, although those deposits may not be enough to sustain its future enrichment goals.

Sanz dismissed suggestions that Venezuela could aid Iran with its nuclear program, saying Venezuela is only aiming to develop nuclear energy for peaceful purposes. Chavez has repeatedly said that all countries should end their nuclear-weapons programs, while insisting that Iran and Venezuela have a "sovereign right" to pursue peaceful nuclear ambitions.

Michael Shifter of the Inter-American Dialogue in Washington said that regardless of whether the uranium exploration efforts lead to nuclear cooperation, they are going to cause "a serious problem in the relationship" between Caracas and Washington.

Chavez's government has "clearly announced they're sort of beginning down this road," Shifter said. "It's going to be very difficult for the U.S. to really pursue any cooperation with Caracas on other issues because this is going to top everything else."

Chavez's project remains in its planning stages and still faces a host of practical hurdles, likely requiring billions of dollars, as well as technology and expertise that Venezuela lacks. Russia has offered to help bridge that gap, and Chavez has announced that the two countries have created an atomic energy commission.

But Sergei Novikov, a spokesman for Russian state nuclear agency Rosatom, has said there are no concrete projects and that any joint work on mining deposits of uranium or the radioactive metal thorium would have to wait until Venezuela decides whether it wants Russian help exploring them and, if so, create a joint venture for the purpose.

Both Chavez and Iranian President Mahmoud Ahmadinejad are well-known for their anti-U.S. rhetoric, and have forged ties in everything from finance to factories, provoking concerns in Washington. Iran now manufactures cars, tractors and bicycles in Venezuela.

Earlier this month, Chavez sealed a deal to export 20,000 barrels of gasoline daily to Iran, giving Tehran a cushion if the West carries out threats of fuel sanctions over Iran's nuclear program.

Article Link:
http://news.yahoo.com/s/ap/20090925/ap_on_re_la_am_ca/lt_venezuela_iran

Iran's President Mahmoud Ahmadinejad has ordered the replacement of the US dollar by the euro in the country's foreign exchange accounts.

The September 12 edict was issued following a decision by the trustees of the country's foreign reserves, Mehr News Agency reported.

Earlier, the Islamic Republic of Iran had announced that the euro would replace the greenback in the country's oil transactions. Iran has called on other OPEC members to ditch the sinking dollar in favor of the more credible euro.

Following the switch, the interest rate for the facilities provided from the Foreign Exchange Reserves will be reduced from12 to 5 percent.

Since being introduced by the European Union, the euro has gained popularity internationally and there are now more euros in circulation than the dollar.

The move will also help decouple Iran from the US banking system.

RZS/ZAP/DT

Article Link:
http://presstv.com/detail.aspx?id=106669§ionid=351020102

Sept. 25 (Bloomberg) -- Ford Motor Co. began work on a third Chinese car plant as it strives to challenge General Motors Co. and Volkswagen AG in a country set to pass the U.S. as the world’s biggest auto market.

The $490 million plant will make revamped Focus cars when it opens in 2012, Ford Chief Executive Officer Alan Mulally said today at a groundbreaking ceremony in Chongqing, southern China. The factory, which will be able to make 150,000 vehicles a year, will boost Ford’s overall car capacity in the country to 600,000.

Mulally attended the event after also visiting India this week as Ford steps up investments in emerging markets that have withstood the slump in global auto sales. China vehicle sales may rise 28 percent this year, according to the government.

“Ford knows it needs to catch up with GM and Volkswagen” in China, said Chen Liang, an analyst at Huatai Securities Co. “China is a bright spot for many global automakers because demand has been strong.”

Ford and partners Chongqing Changan Automobile Co. and Mazda Motor Corp. already have a plant in Chongqing that can build 267,000 vehicles a year and another in Nanjing that can produce 180,000. The factories make Fiesta, Mondeo, Focus and S- MAX autos for Dearborn, Michigan-based Ford as well as models for Hiroshima, Japan-based Mazda. Changan owns 50 percent of the venture with Ford holding 35 percent and Mazda 15 percent.

China Sales

“The China market is very important for the long term,” Mulally said in an interview with Bloomberg Television today. “We’ve been expanding as fast as we can.”

Changan Ford Sales Co. boosted Ford-brand car sales to 144,601 in the first eight months, according to a Sept. 2 statement. GM, the biggest overseas automaker in China, increased total vehicle sales in the period 50 percent to 1.11 million. They rose 33 percent to 913,000 vehicles for Volkswagen.

Ford also has a separate China venture that makes Transit vans.

Nissan Motor Co., Hyundai Motor Co. and Volkswagen all have announced plans to expand in China as rising wages and government stimulus measures spur auto sales.

China’s full-year industrywide vehicle sales may reach 12 million, according to the government. In the U.S., industrywide sales may be about 11 million this year and rise to 12.5 million next year, Mulally said in New Delhi on Sept. 23.

Mulally on Sept. 23 unveiled Ford’s first small car in India, increasing its bet on the world’s second-fastest growing major economy. Ford is spending $500 million to build a second car factory in India.

Article Link:
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a5En7EMGlY44

Sept. 25 (Bloomberg) -- U.S. stocks fell, extending the market’s biggest weekly drop since July, as lower-than-estimated data on durable goods orders and home sales overshadowed improving in consumer confidence. Oil rose for the first time in three days; Treasury two-year notes fell the most in a week.

General Electric Co.,Alcoa Inc. and American Express Co. lost at least 1.3 percent after the Commerce Department reported a 2.4 percent slide in bookings for goods meant to last several years. Research In Motion Ltd., maker of the BlackBerry, tumbled 17 percent after its sales forecast trailed analysts’ estimates. Bank of America Corp. and Citigroup Inc. retreated after Federal Deposit Insurance Corp. Chairman Sheila Bair urged policies to end bailouts for large banks.

“Mixed economic reports not just today, but during the entire week,” said Philip Orlando, who helps oversee $400 billion as chief equity market strategist at Federated Investors Inc. in New York. “That tells us that the economy is not a straight shot to the moon. Same goes for the stock market.”

The Standard & Poor’s 500 Index fell 0.6 percent to 1,044.38 at 4:05 p.m. in New York. The Dow Jones Industrial Average dropped 42.25 points, or 0.4 percent, to 9,665.19. The Nasdaq Composite Index slipped 0.8 percent to 2,090.92.

Equities opened lower as the Commerce Department report on orders for durable goods spurred concern the economy is struggling to recover. Benchmark indexes rebounded briefly after the Reuters/University of Michigan final index of consumer confidence for September rose to 73.5, higher than economists’ estimate of 70.5. New home sales climbed 0.7 percent, less than the 1.6 percent estimate of economists.

Weekly Decline

The S&P 500 lost 2.2 percent this week, its biggest drop since the beginning of July, as sales of existing homes unexpectedly slumped and the Federal Reserve said it will cut the size of two programs meant to bolster credit markets.

Traders said the moves in stocks were exaggerated by relatively light trading in anticipation to the Yom Kippur holiday on Sept. 28. About 1.19 billion shares traded on the New York Stock Exchange, a 47 percent drop from a week earlier.

“There’s the Jewish holiday on Monday and a bit of short covering going into the long weekend,” said Michael Nasto, the senior trader at U.S. Global Investors Inc., which manages about $2 billion in San Antonio.

A 54 percent rally since March 9 left the S&P 500 valued at 20 times the reported earnings from continuing operations of its companies, the most expensive level since 2004, according to weekly data compiled by Bloomberg.

‘In a Recovery’

“We are in a recovery,” said E. William Stone, who oversees $102 billion as chief investment strategist at PNC Wealth Management in Philadelphia. “Valuation-wise, stocks may not be as cheap as they were six months ago. But if we get a better-than-expected recovery, stocks may be very attractive, especially relative to other alternatives.”

Crude oil for November delivery rose 13 cents to $66.02 a barrel in New York after President Obama said Iran, the world’s fourth-biggest oil producer, is building a new nuclear fuel plant and is “breaking rules” that other nations follow. Futures touched $65.05 earlier today, the lowest intraday price since July 31.

The two-year Treasury note fell, sending its yield up five basis points to 0.98, as the bigger-than-estimated gain in consumer confidence added to evidence the economy is recovering from the worst recession in seven decades.

Yield Spread

The difference in yields between two- and 10-year notes narrowed for a fourth day to 2.34 percentage points. The so- called yield curve is the flattest since May 18.

The yen rose beyond 90 versus the dollar for the first time in seven months as Japan’s Finance Minister Hirohisa Fujii reiterated opposition to intervention in currency markets. The dollar traded at $1.4677 per euro, compared with $1.4666 yesterday.

The Dollar Index, which gauges the currency against six major trading partners, fell as much as 0.5 percent today, the third decline in four sessions.

Copper prices rose after a drop in the dollar boosted the metal’s appeal as a hedge against inflation.

Gold fell, capping the biggest weekly decline since mid- July, as the metal’s failure to reach a record discouraged investors who had bet on a longer rally.

Precious Metals

Gold traded below $1,000 for the second straight day after climbing to $1,025.80 on Sept. 17, near the all-time high of $1,033.90 set in March 2008.

Silver sank the most in a week since February. Before today, silver surged 44 percent and gold rose 13 percent this year, heading for a ninth-straight annual gain.

Major U.S. equity indexes are poised to fall at least 10 percent after experiencing a “key reversal” by closing lower on the day they rose to nearly one-year highs, according to Chicago-based Technical Analytics Inc. The S&P 500, the Dow and the Nasdaq have fallen for three straight days since setting the intraday highs on Sept. 23.

U.S. stocks are two-thirds of the way through a “structural bear market” and will take at least four years to surpass their record levels of October 2007, technical analyst Louise Yamada said.

The stock market is likely to alternate between cyclical, or shorter-term, bull and bear markets over that period, Yamada, managing director of Louise Yamada Technical Research Advisors LLC in New York, said in a Bloomberg Radio interview.

“The profile of the next four years is about eight cyclical moves,” Yamada said. The S&P 500’s 12-year low in March “may well prove to be the pivot low, but that doesn’t mean we’re going to be roaring off in a new bull market yet. There’s a lot of repair that has to take place following that kind of a decline.”

Article Link:
http://www.bloomberg.com/apps/news?pid=20601087&sid=a8yQB.WcIhEQ

By MARY FOSTER, Associated Press Writer Mary Foster, Associated Press Writer – Wed Sep 23, 2:51 pm ET

NEW ORLEANS – Bullet-makers are working around the clock, seven days a week, and still can't keep up with the nation's demand for ammunition.

Shooting ranges, gun dealers and bullet manufacturers say they have never seen such shortages. Bullets, especially for handguns, have been scarce for months because gun enthusiasts are stocking up on ammo, in part because they fear President Barack Obama and the Democratic-controlled Congress will pass antigun legislation — even though nothing specific has been proposed and the president last month signed a law allowing people to carry loaded guns in national parks.

Gun sales spiked when it became clear Obama would be elected a year ago and purchases continued to rise in his first few months of office. The FBI's National Instant Criminal Background Check System reported that 6.1 million background checks for gun sales were issued from January to May, an increase of 25.6 percent from the same period the year before.

"That is going to cause an upswing in ammunition sales," said Larry Keane, senior vice president of the National Shooting Sports Foundation, a trade association representing about 5,000 members. "Without bullets a gun is just a paper weight."

The shortage for sportsmen is different than the scarcity of ammo for some police forces earlier this year, a dearth fueled by an increase in ammo use by the military in Iraq and Afghanistan.

"We are working overtime and still can't keep up with the demand," said Al Russo, spokesman for North Carolina-based Remington Arms Company, which makes bullets for rifles, handguns and shotguns. "We've had to add a fourth shift and go 24-7. It's a phenomenon that I have not seen before in my 30 years in the business."

Americans usually buy about 7 billion rounds of ammunition a year, according to the National Rifle Association. In the past year, that figure has jumped to about 9 billion rounds, said NRA spokeswoman Vickie Cieplak.

Jason Gregory, who manages Gretna Gun Works just outside of New Orleans, has been building his personal supply of ammunition for months. His goal is to have at least 1,000 rounds for each of his 25 weapons.

"I call it the Obama effect," said Gregory, 37, of Terrytown, La. "It always happens when the Democrats get in office. It happened with Clinton and Obama is even stronger for gun control. Ammunition will be the first step, so I'm stocking up while I can."

So far, the new administration nor Congress has not been markedly antigun. Obama has said he respects Second Amendment rights, but favors "common sense" on gun laws. Still, worries about what could happen persist.

Demand has been so heavy at some Walmarts, a limit was imposed on the amount of ammo customers can buy. The cutoff varies according to caliber and store location, but sometimes as little as one box — or 50 bullets — is allowed.

At Barnwood Arms in Ripon, Calif., sales manager Dallas Jett said some of the shortages have leveled off, but 45-caliber rounds are still hard to find.

"We've been in business for 32 years and I've been here for 10 and we've never seen anything like it," Jett said. "Coming out of Christmas everything started to dry up and it was that way all through the spring and summer.

Nationwide, distributors are scrambling to fill orders from retailers.

"We used to be able to order 50 or 60 cases and get them in three or four days easy, it was never an issue," said Vic Grechniw of Florida Ammo Traders, a distributor in Tampa, Fla. "Now you are really lucky if you can get one case a month. It just isn't there because the demand is way up."

A case contains 500 or 1,000 bullets.

At Jefferson Gun Outlet and Range in Metairie just west of New Orleans, owner Mike Mayer is worried individuals are going to start buying by the case.

"If someone wants to shoot on the weekend you have to worry about having the ammunition for them. And I know some people aren't buying to use it at the range, they're taking it home and hoarding it."

With demand, prices have also risen.

"Used to be gold, but now lead is the most expensive metal," said Donald Richards, 37, who was stocking up at the Jefferson store. "And worth every penny."

Article Link:
http://news.yahoo.com/s/ap/20090923/ap_on_re_us/us_ammo_shortage

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