UPDATE 2-UN food aid funds growing, but needs growing too

Reuters: [2008-05-06 23:56:00]

(Recasts, adds additional needs, U.S. funding; adds byline)

By Missy Ryan

WASHINGTON, May 6 (Reuters) - The World Food Program, facing an unprecedented surge in the price of food it buys for the world's hungry, has secured about 60 percent of the extra funds it needs to cover planned aid donations this year, the head of the United Nations agency said on Tuesday.

"We put out an extra appeal for $755 million and we're about 60 percent of the way there," WFP Executive Director Josette Sheeran said during a speech at a Washington think tank.

But the agency said it already has had to cut some of the food rations it provides, and its $755-million gap does not include new, emerging hunger needs that will require an additional $418 million to $430 million this year.

Sheeran, a former Bush administration official, said the world's food delivery system was "groaning under the strain of sky-rocketing demand, the soaring cost of inputs, depleted stocks, crop loss due to drought, floods and severe weather."

Higher global prices for basic foodstuffs such as bread, rice and milk may have brought on a crisis that could be the first truly globalized humanitarian emergency, she said.

World leaders are calling for urgent steps to ease the soaring costs, to create a larger cushion of food across harvests, and to diffuse the food panic that has triggered protests across the developing world.

"It is said that a hungry man is an angry man," Sheeran said. Global food prices jumped an annual 43 percent through March, according to the U.S. government.

The trend is believed to be deepening poverty, especially for food-importing nations like Nicaragua, pushing more people into hunger as buying power shrinks for food aid budgets.

Donor nations like Canada, Australia and Britain have stepped up pledges to help WFP cope with soaring costs. The United States, the world's largest food aid donor and WFP's top supporter, last month released 260,000 tonnes of wheat from an emergency crop trust.

Last week, President George W. Bush announced plans, which must be approved by Congress, to spend an additional $770 million on food aid and agriculture development in the fiscal year beginning Oct. 1.

For countries where people spend up to three-quarters of their income on food, experts say time is of the essence.

The Bush administration already has requested $350 million in last-minute food aid funding for this fiscal year, a perennial addition to annual budgeted funds.

On Tuesday, Democratic leaders in the U.S. House of Representatives announced that they would try to add another $500 million for emergency food aid.

Rep. David Obey of Wisconsin, chairman of the House Appropriations Committee, said the money would be attached to a massive Iraq war funding bill that could be debated on the House floor on Thursday.

It was unclear if Bush would veto the spending bill if it contained too much spending that he did not call for.

The Bush administration also is seeking flexibility to buy more food overseas for aid programs, in hopes of making aid dollars go further. (Additional reporting by Richard Cowan; Editing by David Gregorio)

((missy.ryan@thomsonreuters.com; + 202-898-8376; Reuters Messaging: missy.ryan.reuters.com@reuters.net)) Keywords: USA FOODAID/WFP

NHL-Weary Stars vow to rise up against Red Wings

Reuters: [2008-05-06 23:39:00]

By Larry Fine

NEW YORK, May 6 (Reuters) - The Dallas Stars were weary after their quadruple overtime win over San Jose in the early hours of Monday, but still eager to play the Detroit Red Wings in the NHL Western Conference Finals starting on Thursday.

"It's like playing back-to-back games from a conditioning standpoint," goalie Marty Turco told reporters about the five-hour 14-minute second-round series clincher against the Sharks in a conference call on Tuesday.

"Yesterday I know there were a few guys didn't sleep as long as they would have liked. Got up with the mind wandering, the body aching a little bit. This morning was reality a little bit more, a little extra stiffness than most mornings."

Hard-hitting captain Brenden Morrow scored a power-play goal to lift the Stars to their first conference final since 2000 with the 2-1 win in Dallas that clinched the best-of-seven series 4-2.

"It felt like it was two games' worth of hitting. Body was a little drained yesterday. Every time you got down in the chair, it was pretty tough getting up," Morrow said. "Just losing all those fluids, aches and pains. They've gone away from yesterday to today, though.

MARATHON GAME

"It was gruelling playing that many minutes, trying to play the same way, play physical. It took its toll. But it was well worth it."

Turco played brilliantly against the Sharks, turning away 61 of 62 shots in Sunday's marathon game.

The netminder faces a new challenge as his team battles to reach the Stanley Cup Finals -- reversing his NHL mark against the Red Wings, particularly at Detroit's Joe Louis Arena.

Turco is 2-10-5 in his NHL career against Detroit, and 0-7-2 versus the Red Wings at Joe Louis.

"There's not anything that's done in the past, positive or negative, that affects you going into the playoffs," Turco said. "It's all about your next save, your next shift, the next game.

"I've always known in the back of my mind playing these guys and having a lack of success, that it hasn't happened in the playoffs, and that would be the ultimate test to see where you stand. So to say the least, I'm looking forward to it."

Morrow, who had two overtime game-winners against San Jose and inspired the Stars with his rugged play, said playing in front of Turco has been a pleasure.

"He's had us on his back for two rounds," Morrow said. "He's been spectacular in making the hard saves look easy for us for a long time. It's been a lot of fun to watch." (Editing by Miles Evans) ((larry.fine@reuters.com; +1-646-729-6291; Reuters Messaging: larry.fine.reuters.com@reuters.net. For the latest Reuters Premier League and international football news see: http://football.uk.reuters.com))

Please double-click on the newslink

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Keywords: NHL/STARS

Canadian dollar climbs with oil prices, bonds fall

Reuters: [2008-05-06 23:33:00]

    By John McCrank 
    TORONTO, May 6 (Reuters) - The commodity-linked Canadian 
dollar climbed nearly 1 percent against the U.S. dollar on 
Tuesday, boosted by record high oil prices. 
    Canadian bond prices fell as investors shifted assets into 
equities, which were led higher by energy stocks. 
    The Canadian dollar closed at C$1.0029 to the U.S. dollar, 
or 99.71 U.S. cents, up from C$1.0135 to the U.S. dollar, or 
98.67 U.S. cents, at Monday's close. 
    The currency briefly rose above parity with the greenback 
for the first time in two weeks, hitting US$1.0001, making a 
greenback worth 99.99 Canadian cents. 
    Driving the increase was a surge in the price of oil <CLc1> 
to a record $122.73 on supply worries ahead of the U.S. summer 
driving season. See [ID:nSIN170894] 
    Canada is a major producer of oil and its currency is often 
influenced by moves in its price. 
    "Canada is outperforming all the majors (currencies)," said 
Camilla Sutton, currency strategist at Scotia Capital. 
    "The commodity currencies are generally doing well today, 
but I would suspect there is probably a flow in there too, just 
because we are outperforming to such an extent." 
    Sutton said such a flow could have been related to hedging 
or mergers and acquisitions. 
    Canadian economic data during the day was mixed, with 
building permits falling 4.5 percent in March from February, 
compared with market expectations for a 1.4 percent gain. 
    The currency dropped on the news, but quickly rebounded as 
the data also showed an upward revision of February building 
permits to a gain of 0.8 percent, compared with the 1-percent 
drop previously reported. 
    Other data showed that Canadian purchasing activity rose in 
at a slower pace in April than in March, but it was above 
market expectations and helped the Canadian dollar rally. 
    The Ivey Purchasing Managers Index fell to 57.6 in April 
from 59.0 in March. The market was expecting a reading of 
54.5. 
    Upcoming data include April housing starts on Thursday and 
March international merchandise trade data on Friday. Also set 
for Friday is the April employment report, which Sutton said 
will be the main event as far as the Canadian dollar is 
concerned. 
    
BONDS FALL 
    Canadian bond prices fell across the curve as a rally in 
the stock market, led by energy stocks, took away the safe 
haven appeal of government debt. 
    "Canada is certainly benefiting from the runup in commodity 
prices," said Mark Chandler, fixed income strategist at RBC 
Capital Markets. "It's been the story for a while, but it's 
certainly increasing in magnitude, so that's obviously, in the 
grander scheme of things, better for Canada's economy than in 
the U.S." 
    The two-year bond fell 7 Canadian cents to C$101.87 to 
yield 2.814 percent. The 10-year bond slid 47 Canadian cents to 
C$102.38 to yield 3.687 percent. 
    The yield spread between the two- and 10-year bonds was 
87.3 basis points, up from 84.2 at the previous close. 
    The 30-year bond shed C$1.16 to C$113.79 to yield 4.176 
percent. In the United States, the 30-year treasury yielded 
4.668 percent. 
    The three-month when-issued T-bill yielded 2.59 percent, 
down from 2.64 percent at the previous close. 
 (Editing by Peter Galloway) 
 ((john.mccrank@thomsonreuters.com; +1 416 941 8083; Reuters 
Messaging: john.mccrank.reuters.com@reuters.net)) 
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Keywords: MARKETS CANADA DOLLAR BONDS 
    

UPDATE 4-High-flying crude gives boost to Toronto stocks

Reuters: [2008-05-06 23:10:00]

(Adds details, quotes)

By Leah Schnurr

TORONTO, May 6 (Reuters) - Oil and gas companies led the way higher for the Toronto Stock Exchange on Tuesday, helping the main index climb nearly 1 percent as crude oil prices notched another record high.

Suncor Energy <SU.TO> was among the biggest gainers, up C$4.62, or 4 percent, at C$121.12 as the price of oil flew up over $122 a barrel on a weaker U.S. dollar and concerns over supply.

The Toronto market's heavily weighted energy sector jumped 3.3 percent. Canadian Natural Resources <CNQ.TO> was up C$4.05, or 4.6 percent, at C$92.00, and Canadian Oil Sands Trust <COS_u.TO> added C$3.68, or 8.3 percent, to C$48.18.

Crude settled up $1.87 at $121.84 a barrel, easing back from a record $122.73 reached earlier in the day. However, Goldman Sachs forecast oil could hit $200 a barrel within the next two years.

"How high can it go? Who knows," said Andrew Martyn, portfolio manager at Davis-Rea.

The S&P/TSX composite index <.GSPTSE> closed up 139.96 points, or 0.98 percent, at 14,414.30 with half its 10 main sectors higher.

The materials sector, home to resource issues, rallied 1.2 percent, while the base metals mining subindex gained 2.4 percent, pulled up by oil's momentum. Teck Cominco <TCKb.TO> rose C$1.48, or 3.2 percent, to C$48.18.

"The mining sector, the gold sector also got boosted, meaning that the whole commodities game seems to be back for who knows how long," said Ian Nakamoto, director of research at MacDougall, MacDougall & MacTier.

"We keep saying it's a fad, but (the oil price) comes down and starts to move back up," said Nakamoto, noting that ultimately it's underlying supply and demand that will make a price level sustainable.

Methanex <MX.TO> shares jumped C$3.02, or 12.4 percent, to C$27.40 after the methanol supplier upped its quarterly dividend by 11 percent and said it will buy back up to 10 percent of its common stock.

Fertilizer company Potash Corp of Saskatchewan <POT.TO> was up C$3.03, or 1.5 percent, at C$199.39, and competitor Agrium <AGU.TO> rose C$2.52, or 3 percent, to C$86.75.

Sun Life Financial <SLF.TO> weighed on the index after the insurer warned of a difficult year ahead as it reported that credit market troubles and a strong Canadian dollar stung its operating earnings.

Sun Life finished down C$1.76, or 3.6 percent, at C$47.44, while the financial sector overall gave up 0.5 percent.

Also on the downside, BlackBerry maker Research In Motion <RIM.TO> slid C$2.37, or 1.8 percent, to C$132.25.

Market volume was 393 million shares worth C$7.6 billion. Advancers outpaced decliners 890 to 693. The blue chip S&P/TSX 60 index <.TSE60> closed up 8.71 points, or 1.03 percent, at 855.12.

On Wall Street, stocks rallied after U.S. home finance company Fannie Mae <FNM.N> sought to reassure investors over the outlook for the credit and housing markets.

The Dow Jones industrial average <.DJI> rose 51.29 points, or 0.4 percent, to 13,020.83, while the Nasdaq composite index <.IXIC> was up 19.19 points, or 0.78 percent, at 2,483.31. ($1=$1.00 Canadian) (Editing by Rob Wilson) ((leah.schnurr@thomsonreuters.com; +1 416 941 8056; Reuters Messaging: leah.schnurr.reuters.net@reuters.com))

Keywords: MARKETS CANADA STOCKS

Keywords: MARKETS CANADA STOCKS

*TOP NEWS* Canada

Reuters: [2008-05-06 23:01:00]

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> Weak Canadian data includes bright spots, lifts C$ [nN06494922]    
> Barrick profit jumps on record gold prices         [nN06461751]    
> Sun Life executives warn of challenging 2008       [nN06454419] 
> Methanex shares up after dividend hike, buyback    [nN06498670] 
> Molson Coors profit tops view; shares jump         [nN06464497] 
> Magna Entertainment stumbles to loss               [nN06484860] 
> George Weston profit rises as costs crimped        [nN06470813] 
> Quebecor World extends deal with Simon & Schuster  [nN06212394] 
 
GENERAL 
> Taliban kill Canadian soldier in Afghanistan       [nN06501670] 
> Canada banning all smoking in federal prisons      [nN06503147] 
> Canada can't find 41,000 people it wants to deport [nN06457847] 
> Canada's Afghan mission seen hit by supply woes    [nN06498457] 
> Canada PM should quit crumbling residence-watchdog [nN06500913] 
    
MARKETS 
> Toronto stocks boosted by soaring crude price      [nN06460390] 
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