Israel's Netanyahu warns White House about Iran

JERUSALEM (AP) — Mortified that the world may be warming up to Iran, Israeli Prime Minister Benjamin Netanyahu is taking an unpopular message to the White House and the United Nations this week: Don't be fooled by Tehran's new leadership.

Netanyahu contends Iran is using conciliatory gestures as a smoke screen to conceal an unabated march toward a nuclear bomb.

He will deliver those strong words of caution — and fresh intelligence — in an attempt to persuade the U.S. to maintain tough economic sanctions and not allow the Islamic republic to develop a bomb or even move closer to becoming a nuclear threshold state.

With the White House cautiously optimistic about its dialogue with Iran, Monday's meeting between Netanyahu and President Barack Obama could be tense.

"I will tell the truth in the face of the sweet talk and the onslaught of smiles," Netanyahu said before boarding his flight to the U.S. on Sunday. "Telling the truth today is vital for the security and peace of the world and, of course, it is vital for the security of the state of Israel."

Israeli leaders watched with great dismay what they derisively call the "smiley campaign" by Iran's new president, Hassan Rouhani, last week. Rouhani delivered a conciliatory speech at the United Nations in which he repeated Iran's official position that it has no intention of building a nuclear weapon and declared his readiness for new negotiations with the West.

Capping off the visit, Rouhani and Obama held a 15-minute phone call as the Iranian leader was traveling to the airport. By the end of the call, the first conversation between the nation's leaders in 34 years, Obama was suggesting that a breakthrough on the nuclear issue could portend even deeper ties between the U.S. and Iran. U.S. and European diplomats hailed a "very significant shift" in Iran's attitude and tone.

For Netanyahu, such sentiments are nothing short of a nightmare.

For years, he has warned that Iran is steadily marching toward development of nuclear weapons, an assessment that is widely shared by the West because of Iran's continued enrichment of uranium and its run-ins with international nuclear inspectors.

The Israeli prime minister contends Rouhani's outreach is a ploy to ease international sanctions and buy time. Iran says its nuclear program is for peaceful purposes only.

Israel considers a nuclear-armed Iran an unacceptable threat, given repeated Iranian assertions that the Jewish state should not exist. Israel has a long list of other grievances against Iran, citing its support for hostile Arab militant groups, its development of long-range missiles and alleged Iranian involvement in attacks on Israeli targets in Europe and Asia.

On Sunday, Israel announced the arrest of a Belgian-Iranian businessman on espionage charges.

Netanyahu says the new Iranian leader must be judged on his actions, not his words. In the meantime, he says sanctions and other international pressure, including the threat of military action, must be increased. He has likened Iran to North Korea, which used the guise of international negotiations to secretly develop a nuclear weapon.

Netanyahu appears to enjoy widespread domestic support for his tough approach. Israel's Channel 10 TV released the results of a poll Sunday night showing that 78 percent of respondents don't believe Iran wants to resolve the nuclear problem. Fifty-nine percent said they do not think the U.S. will reach an agreement with Iran, while just 29 percent said they expect a resolution. The station did not say how many people were questioned or provide a margin of error.

Zalman Shoval, a former Israeli ambassador to the U.S. who now serves as an adviser to Netanyahu, said the prime minister would present Obama with "some very hard facts" based on intelligence showing that Iranian behavior has not changed.

Similarly, in his speech at the U.N., "he will make it very clear that Israel and the world at large should continue to be on guard," he said.

Over the years, Israel has issued shifting assessments of how close Iran is to producing a weapon. Last year, Netanyahu presented a cartoon diagram to the U.N. showing that Iran would enter the final phase of weapons production by mid-2013. Israel has since backed off that assessment.

Netanyahu's intelligence minister, Yuval Steinitz, said international pressure forced Iran to slow production.

While American officials are well aware of Israel's concerns, they say there are no plans to reverse the latest diplomatic push.

Two senior Obama administration officials said that the U.S. expects Israel to be skeptical about Iran's overture, and that the U.S. is similarly skeptical.

Obama will try to convince Netanyahu that the U.S. won't consider lifting sanctions until Iran takes concrete actions to show it is serious about a verifiable, transparent agreement, said the officials, who spoke on condition of anonymity because they were not authorized to discuss the matter with the media.

Obama will also seek to assure his Israeli counterpart that if the U.S. reaches a deal with Iran, it will ultimately advance Israel's security interests by resolving the nuclear issue without the need for military intervention.

Obama's bottom line remains that Iran can't be allowed to develop a nuclear weapon, the officials said.

Israel, though, wants the U.S. to establish clear "red lines" to prevent Iran from pressing forward with its nuclear program and moving toward threshold status — having the capability to build a nuclear weapon without actually possessing one. That scenario is unacceptable to Israel.

Netanyahu has laid out four demands: that Iran stop enriching uranium; that its stockpiles of enriched uranium be removed from the country; that a fortified underground enrichment facility be closed; and that Iran not make plutonium, another possible path toward nuclear weapons.

Eytan Gilboa, an expert on U.S.-Israel relations at Israel's Bar-Ilan University, predicted a "very difficult conversation" on Monday.

The Americans "like Rouhani. They think he represents a new policy, a new approach and therefore should be given at least a chance. Netanyahu's strategy is to say that this whole thing is a big hoax," Gilboa said. "There are no buyers for his message."

___

Associated Press writer Josh Lederman in Washington contributed to this report.

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Myanmar government warns Suu Kyi planned tour could cause riots (Reuters)

YANGON (Reuters) – A possible tour of Myanmar by pro-democracy leader Aung San Suu Kyi could cause riots, state media warned on Wednesday, implying she would be responsible for her own safety.

Nobel Peace Prize laureate Suu Kyi is planning her first trip outside the former capital Yangon since she was freed from home detention last year just after elections to end army rule.

The military still effectively controls the government.

"Her followers and supporters are gushing that the icon must keep in touch with the public. They seem willing to exploit the public. They also propagate that the government is responsible for security of Daw Aung San Suu Kyi on her trip," a commentary in all three official newspapers said.

"We are deeply concerned that if Daw Aung San Suu Kyi makes trips to countryside regions, there may be chaos and riots, as evidenced by previous incidents," it added.

"Daw" is an honorific in Myanmar for women.

In 2003, in an episode now known as the Depayin Massacre, Suu Kyi's motorcade was attacked by pro-junta thugs and 70 of her supporters died in what was seen as an assassination attempt.

"The government has said that Daw Aung San Suu Kyi is just an ordinary public member, so it will not restrict her from traveling and doing things in accordance with the law, but she shall honor the laws for the rule of law," the commentary read.

Suu Kyi, 66, has not announced any dates for the tour, nor an itinerary.

Her party, the National League for Democracy (NLD), was officially dissolved last year when it refused to register for elections held in November. Suu Kyi was released from seven years of house arrest a week after the vote.

Official media, which act as a mouthpiece for the government, also said on Wednesday the government had warned the NLD "not to harm peace and stability" and to respect the law.

"If they really want to accept and practice democracy effectively, they are to stop such acts that can harm peace and stability and the rule of law as well as the unity among the people including monks and service personnel," the letter said, according to state media.

NLD spokesman Nyan Win confirmed a letter had been received. "We got that letter yesterday but we still have not talked it over and decided what to do about it," he said.

The newspapers said the letter accused the party of keeping its headquarters and various offices open and organizing meetings even through it had been dissolved.

"Such acts are not only against the law but also tantamount to opposing the Hluttaws (legislature)," they said.

(Reporting by Aung Hla Tun; Editing by Alan Raybould and Daniel Magnowski)

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U.S. ambassador warns Karzai over criticism of West (Reuters)

KABUL (Reuters) – The U.S. ambassador to Kabul has issued a thinly veiled warning to Afghan President Hamid Karzai that harsh criticisms of the West could jeopardize the troops and funding critical to the Afghan government's survival.

Ambassador Karl Eikenberry said he found comments from "some" Afghan leaders "hurtful and inappropriate," according to a transcript of a speech released late on Sunday.

Although he did not mention Karzai by name, the speech appeared to be a direct response to a string of verbal broadsides against Western troops serving in Afghanistan and the diplomatic and aid programs that accompany them.

In one recent fiery speech Karzai warned that foreign soldiers risked being seen as occupiers because of civilian casualties they caused. Last week he said the West was polluting the country with weapons containing toxic chemicals.

Eikenberry said those comments left him ashamed and speechless in front of the relatives of U.S. war dead.

"When I hear some of your leaders call us occupiers, I cannot look at these mourning parents, spouses, and children in the eye and give them a comforting reply," Eikenberry told an audience of students and academics at Herat University in western Afghanistan.

"When we hear ourselves being called occupiers and worse, our pride is offended and we begin to lose our inspiration to carry on," he added, in a personal addendum to a speech on education and transition.

CONSTRUCTIVE CRITICISM?

But Karzai's spokesman said some of the president's comments had been misunderstood and warned against "over-reacting" to constructive criticism, saying that Afghan people standing up for their own interests should not be dubbed offensive.

Karzai's spokesman said that in his controversial speech on civilian casualties the president was only warning western allies that their image in his country was at risk, and that details may have been lost in a bad translation.

"The president has never termed international forces as occupying forces ... He has said if the bombardment of civilian homes and civilians continue, there is a risk that (this view of western troops as occupiers) could become part of public opinion in Afghanistan," Waheed Omer said.

But Omer also warned against "over-reacting" to criticism, and added that although effective assistance was appreciated, the west had not come to Afghanistan for altruistic reasons.

"No one can deny that international community came to Afghanistan for the sake of their own interests in the first place. We as Afghans have every right ... to make sure that international community's presence also serves the interests of the people of Afghanistan," Omer said.

"I don't see why this should be termed as offending."

DRAWDOWN LOOMS

Eikenberry was speaking as U.S. President Barack Obama mulls how steep a U.S. troop withdrawal that starts in July should be.

That will coincide with the first phase of a gradual handover of security control to the Afghan police and army, who are due to take responsibility for all of Afghanistan by the end of 2014, though critics warn this date is premature.

At present NATO is rushing to expand and train up security forces that have long struggled with problems ranging from widespread illiteracy, drug abuse and corruption to a dearth of leaders and equipment and a damaging rate of attrition.

Although the training team say progress is impressive, it will still be years before they have a real hope of holding off disciplined and battle-hardened insurgents across the country.

Even when they can fight alone, the size of the security forces and Afghanistan's sickly economy means they will need help paying salaries and buying equipment for years to come.

Eikenberry warned that patience to help Afghanistan seek security would not be infinite if Afghan partners were dismissive of U.S. sacrifices of lives and money.

"At the point your leaders believe that we are doing more harm than good ... especially at a time our economy is suffering and our needs are not being met, the American people will ask for our forces to come home," Eikenberry said.

(Additional reporting by Hamid Shalizi; Editing by Sugita Katyal)

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Greek PM warns against default as Europe meets on aid (Reuters)

ATHENS/LUXEMBOURG (Reuters) – Prime Minister George Papandreou asked Greeks on Sunday to support austerity steps and avoid a "catastrophic" default, as European finance ministers discussed extending tens of billions of euros of aid to Athens.

Addressing the Greek parliament, Papandreou appealed for the nation to accept deeply unpopular tax hikes, spending cuts and privatisation plans which international donors have demanded as a condition for the aid.

"The consequences of a violent bankruptcy or exit from the euro would be immediately catastrophic for households, the banks and the country's credibility," Papandreou said at the start of a confidence debate on his new crisis cabinet.

Greek officials have said the country will face default in mid-July if the European Union and the International Monetary Fund do not hand over a 12 billion euro tranche of emergency loans by then..

Euro zone finance ministers began a two-day meeting in Luxembourg on Sunday evening to decide whether to disburse that tranche, part of a 110 billion euro ($156 billion) bailout of Greece launched in May last year. They will also discuss proposals for a second bailout that could be worth some 120 billion euros and keep Greece funded through 2014.

Spain's economy minister told reporters on the sidelines of the meeting that ministers hoped to reach agreement on Sunday night on disbursement of all of the next loan tranche to Greece.

"We're still discussing... We hope (to have a deal). That's why we are here tonight," Elena Salgado said.

The finance minister of Germany, where political opposition to spending taxpayers' money on bailing out Greece has been rising, was more equivocal.

"We will work today and tomorrow so that we get as far as possible," Wolfgang Schaeuble said. "Greece must fulfill all the necessary preconditions so that it can be paid out on time. Europe will do its part.

OPPOSITION

Facing public protests and dissent in his Socialist party, which has a slim majority in parliament, Papandreou reshuffled his cabinet last week and called a confidence vote for next Tuesday in an effort to push his reforms through the legislature this month.

Political analysts think he is likely to succeed, but public opposition means it is unclear if he can stick to austerity over the long term. Over 10,000 people protested in front of parliament on Sunday, chanting: "We won't pay! We won't pay" and thrusting their open hands forward in a traditional insult.

Opposition leader Antonis Samaras demanded in parliament that Papandreou quit to pave the way for early elections and a renegotiation of the terms of Greece's current bailout.

Greece, with a public debt worth more than 150 percent of its annual economic output and rising, missed debt targets in its initial bailout plan partly because of a deep recession.

In the proposed new bailout scheme, private investors would for the first time share the burden, pledging to maintain their exposure to Greece by voluntarily buying about 30 billion euros of sovereign bonds as their current holdings matured.

But such a debt rollover would be complex and controversial, financially and legally. Key details have not been worked out, and euro zone finance ministers are expected to discuss them in Luxembourg.

Yields on bonds of indebted euro zone states rose sharply last week as markets speculated Greece might fail to obtain more aid. Many investors think that even if it does, its debt problem is so large that a more radical solution is needed, such as imposing deep losses on its creditors.

The head of Pimco, the world's largest bond fund, said in an interview published on Sunday that Europe risked wasting more money for nothing if it kept pumping billions into the weak Greek economy.

"After a year, every indicator has unfortunately worsened, despite the incredible quantity of financial assistance," Mohammed El-Erian told Italy's Corriere della Sera daily.

"All of this has terrible human consequences and it's associated with a transfer of liabilities from private creditors to European taxpayers. Why? Very little is being done to deal with the excess of public debt, and the conditions for higher growth are not being put in place.

"Further on, if this approach is kept up, more money will be wasted to save private creditors and the risk of a disorderly restructuring of the debt will be greater.

EUROPE

There were signs across Europe on Sunday of tensions over austerity measures and economic reforms.

In Madrid, tens of thousands of people marched against the government's handling of an economic slump and the "Euro Pact," which was agreed by euro zone politicians to improve competitiveness across the bloc and has led in Spain to reforms giving companies greater power to hire and fire.

In Dublin, which obtained an 85 billion euro bailout last year, the Sunday Times quoted an unnamed European Central Bank source as criticising Finance Minister Michael Noonan's call to impose losses on senior bond holders in two failed banks.

"It was a good soundbite for the cameras ... Considering the Greek situation, it was the worst possible time for him to make an impression," the source was quoted as saying. The ECB has opposed making those bond holders pay on the grounds that it might destabilise financial markets.

"By the time it comes to paying back the bonds next autumn, Greece may have defaulted. If Greece defaults, Ireland is next," the source said.

In Milan, Prime Minister Silvio Berlusconi said Italy would take the measures it considered right to keep its public finances in order. On Friday, credit rating agency Moody's warned it might cut Italy's rating out of concern over Rome's ability to reduce its heavy public debt burden.

(Writing by Andrew Torchia; Editing by Andrew Heavens)

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Super Bowl hero warns of 'anarchy,' if NY approves gay marriage

Former Giants receiver David Tyree says passage of New York's same-sex marriage billl would lead to "anarchy."The New York State Assembly approves a same-sex marriage billThe bill also must clear the Republican-controlled State Senate where its fate is uncertainFormer New York Giant David Tyree is a hero from Super Bowl XLIIHe disapproves of gay marriage on religious and secular grounds

(CNN) -- Former New York Giants receiver David Tyree's celebrated catch in the closing seconds of Super Bowl XLII was pivotal to his team's victory. Now out of football, he is trying to claim a last-minute win over another foe -- same-sex marriage.

On the same day that the New York State Assembly approved a same-sex marriage bill, Tyree warned of dire consequences if the legislation becomes law.

The bill's passage would "be the beginning of our country sliding toward ... anarchy," he said

Tyree made the comments in a video released Wednesday by the National Organization for Marriage, which is spearheading opposition to the bill. The legislation must now clear the Republican-controlled State Senate where its fate is uncertain.

His disapproval of gay marriage is based on religious as well as secular grounds, Tyree said.

"Marriage is the only relationship that actually mirrors the relationship with God," he said.

He also argued that same-sex parents are ill-equipped to raise a child of the opposite sex.

"You can't teach something that you don't have," Tyree said in the video. "So two men will never be able to teach a woman how to be a woman."

It is not justifiable to alter a long-standing institution "because a minority -- an influential minority -- has ... an agenda," he said.

In an opinion column for Yahoo News, the group's chairman, Maggie Gallagher, said Tyree told her he decided to speak out after his former teammate Michael Strahan declared his support for gay marriage last week.

The video appeared to take a page of out the playbook of the group's adversary, the Human Rights Campaign, which has released a steady stream of video testimonials from celebrity advocates of gay marriage in recent months. Uma Thurman, Whoopi Goldberg, Sean Avery of the New York Rangers and others have appeared in their videos.

Tyree seemed to chide notables who oppose same-sex marriage, but keep their opposition to themselves. "I am disappointed when ... not enough guys ... lift up something as honorable and near to God's heart as marriage," he said.

"We're doing God an injustice by not making his heart known to our country."

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Panetta warns Afghan gains 'fragile'

Leon Panetta, head of the Central Intelligence Agency, will replace Defense Secretary Robert Gates if confirmed.The Senate Armed Services Committee questions the defense secretary nominee Panetta, 72, refuses to say how quickly the U.S. military should withdraw from AfghanistanPanetta says any military withdrawal should be "conditions-based"Panetta addresses a range of topics, including Libya, Iraq, and Pentagon fiscal constraints

Washington (CNN) -- Defense Secretary nominee Leon Panetta asserted Thursday that the United States and its allies have made "great progress" in the nearly decade-long war in Afghanistan, but warned that recent gains are "fragile and reversible."

He refused to indicate how fast the U.S. military should start any withdrawal from Afghanistan. The rate at which troops should be withdrawn should be "conditions-based," he said.

Greater progress needs to be made, particularly in terms of Afghan self-governance, so that ultimately officials in Kabul "can take responsibility for that country," he added.

The ultimate goal in Afghanistan, he stressed, is to ensure "sufficient stability" in that country so it can never again be a safe haven for al Qaeda or other extremist elements.

Panetta, currently head of the Central Intelligence Agency, made his remarks during his Pentagon confirmation hearing before the Senate Armed Services Committee.

Obama administration officials have said U.S. troops will start withdrawing from Afghanistan in July, and that a military handover should be completed in 2014. While the war remains largely unpopular within the United States, conservative critics have complained that a firm withdrawal timeline will undermine U.S. efforts.

Aside from the war in Afghanistan, Panetta's confirmation hearing touched on a wide range of topics, including NATO's engagement in Libya, the U.S. withdrawal from Iraq, the global fight against terrorism, and Pentagon budgets in an age of fiscal austerity.

Senators from both sides of the aisle offered effusive praise for the 72-year-old nominee, who pledged to be a "tireless advocate for our troops and their families."

"This is a time of historic change," Panetta said. "We are no longer in the Cold War. This is the Blizzard War -- a blizzard of challenges that draws speed and intensity from rapidly developing technologies and the rising number of powers on the world stage."

"Despite the times we live in, there is reason to be confident," Panetta told the committee. The recent operation that killed Osama bin Ladin "has given us the greatest chance since 9/11 to disrupt, dismantle, and defeat al Qaeda permanently. We must keep up the pressure."

Panetta called the U.S. relationship with Pakistan, the site of bin Laden's hideout, "difficult" but "critical." While Pakistan has proven to be a safe haven for extremists, a positive relationship with authorities in Islamabad is vital to the mission in Afghanistan, he warned.

Close ties with Pakistan are also critical due to the necessity of securing that country's nuclear arsenal, he noted.

On Libya, Panetta expressed optimism that, if NATO operations continue, strongman Moammar Gadhafi will be forced from power.

"We have seen the regime weaken significantly. We have seen the opposition make gains," he said. "I think there are some signs that that if we continue the pressure, if we stick with it, that ultimately Gadhafi will step down."

He agreed, in response to a question from the committee's chairman, Sen. Carl Levin, D-Michigan, that the use of controversial enhanced interrogation techniques such as waterboarding during President George W. Bush's administration "crossed the line."

Panetta also warned of a "strong likelihood" that "the next Pearl Harbor could be a cyber attack."

"We are now the target of increasing attacks that go after our (computer-based) systems," he said.

Panetta, virtually certain to be confirmed, has been described as the consummate Washington insider. He took over at the CIA in February 2009, and previously served as chief of staff to President Bill Clinton between 1994 and 1997. Prior to that, the California Democrat served as director of Clinton's Office of Management and Budget, a position requiring mastery of tricky fiscal situations and an understanding of the federal government's sprawling bureaucracies.

Panetta also served in the House of Representatives from 1977 to 1993, a period in which he established deep congressional ties. His friendships and institutional knowledge of Capitol Hill, observers believe, will be critical in terms of helping to mold congressional opinion and balance Pentagon priorities against growing deficit fears.

"I am very aware that we must be highly disciplined in how we spend the taxpayer's precious resources," Panetta said Thursday. "I do not believe that we have to choose between strong fiscal discipline and strong national defense. We owe it to our citizens to provide both."

If confirmed, Panetta would replace retiring Defense Secretary Robert Gates, who has led the Pentagon since December 2006. President Barack Obama has nominated Gen. David Petraeus, currently head of the NATO International Security Assistance Force and U.S. forces in Afghanistan, to replace Panetta at the CIA.

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Gates warns on S. China Sea clashes

Robert Gates shakes hands with China's Defence Minister Liang Guanglie at the Asia Security Summit on Friday in Singapore.Gates speaks to a group of military leaders at an annual meeting in AsiaThe defense secretary also meets with China's defense ministerGates will retire at the end of the month.

Singapore (CNN) -- U.S. Defense Secretary Robert Gates on Saturday warned that clashes could occur in the South China Sea if nations in the area do not agree on ways to deal with disputes.

"Without rules of the road, without agreed approaches to deal with these problems, then there will be clashes. I think that serves nobody's interest," Gates said at an annual Asia security meeting hosted by the International Institute for Strategic Studies.

Gates statement comes amid tensions as China stakes claims on sovereignty in the South China Sea and other nations disputes these claims.

Despite an economic downturn and budget cuts, the United States will keep its commitments and "robust military engagement" in Asia, Gates said.

Gates told the audience of defense ministers and military leaders that there has been significant growth in U.S. engagement in Asia in recent years, "even at a time of economic distress at home and two major military campaigns ongoing in Iraq and Afghanistan."

The U.S. record in Asia shows, "irrespective of the tough times the U.S. faces today, or the tough choices we confront in the years to come, that America's interests as a Pacific nation -- as a country that conducts much of its trade in the region -- will endure," Gates said.

Gates - who met with China's Defense Minister Gen. Lian Guanglie on Friday -- said the U.S was working with China "to build a positive, cooperative and comprehensive relationship."

He called military-to-military ties with China "a priority" and said he'd seen steady improvement in recent months.

Continued cooperation and regional military exercises will continue to play a vital role in regional stability, Gates said in his speech.

And while continuing to modernize base agreements with allies, Gates said, "We've taken a number of steps toward establishing a defense posture across the Asia Pacific that is more geographically distributed, operationally resilient and politically sustainable."

Gates talked about changes he has seen during his tenure as defense secretary.

"One of the most striking -- and surprising -- changes I've observed during my travels to Asia is the widespread desire across the region for stronger military-to-military relationships with the United States -- much more so than during my last time in government 20 years ago," Gates said.

Gates retires at the end of the month.

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Nokia warns of weaker sales, shares drop 15 percent (Reuters)

HELSINKI (Reuters) – Mobile phone maker Nokia Oyj slashed its sales and profit outlook on Tuesday and scrapped forecasts for 2011 due to tumbling prices and intense competition, sending its shares crashing 15 percent.

Nokia, once the undisputed force in the mobile phone market, has seen its position challenged in recent years, particularly losing ground in the smartphone market to newcomers Apple Inc and Google Inc.

The company, which is still the number one handset maker by volume, has overhauled its phone business, adopting Microsoft Corp's software instead of its own Symbian platform.

But it continues to suffer from mounting competition and said in a profit warning it expects net sales from its devices and services business in the second quarter to be "substantially below" its previous forecast of between 6.1 billion euros ($8.7 billion) and 6.6 billion.

It expected its non-IFRS operating margin for devices and services to be around break-even in the second quarter, rather than previously expected range of 6 percent to 9 percent.

"This update is primarily due to lower than previously expected average selling prices and mobile device volumes," the company said.

"Given the unexpected change in our outlook for the second quarter, Nokia believes it is no longer appropriate to provide annual targets for 2011," it said, adding it would still provide quarterly updates.

"Given the internal turmoil that will be generated by this news, it is increasingly difficult to see that Nokia can leapfrog one handset generation and be on par with the competition in early 2012. Investors should be more than concerned about the dividend possibility," said WestLB analyst Thomas Langer.

"It seems like it's especially their emerging markets exposure in China where they are hit by competition in the low end of the market," said Sydbank analyst Morten Imsgard.

"Short term, there's a lot of turmoil in the company."

The warning comes a month after Nokia said it would cut 7,000 jobs and outsource its Symbian software development unit to cut costs.

The shares were down 14.9 percent at 4.908 euros at 9:17 a.m. EDT.

(Reporting by Helsinki Newsroom; Editing by Andrew Callus and David Holmes)

($1=.7000 Euro)

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Obama warns Gaddafi of "no let up" (Reuters)

LONDON/TRIPOLI (Reuters) – President Barack Obama warned Libyan leader Muammar Gaddafi on Wednesday there would be 'no let up' in pressure on him to go, following a second successive night of heavy NATO bombing in Tripoli.

Six loud explosions rocked Tripoli late on Tuesday within 10 minutes, following powerful strikes 24 hours earlier, including one on Gaddafi's compound that Libyan officials said killed 19 people.

Obama told a London news conference with British Prime Minister David Cameron he could not predict when Gaddafi, who is fighting a three-month-old insurgency, might be forced to go.

"I absolutely agree that given the progress that has been made over the last several weeks that Gaddafi and his regime need to understand that there will not be a let-up in the pressure that we are applying."

"We have built enough momentum that as long as we sustain the course that we are on that he is ultimately going to step down," he said. "Ultimately this is going to be a slow, steady process in which we are able to wear down the regime."

Fighting between Gaddafi's forces and rebels has reached a stalemate, despite two months of NATO aerial support under a U.N. mandate intended to protect civilians. Gaddafi denies his troops target civilians and says rebels are criminals, religious extremists and members of al Qaeda.

Strikes drove back Gaddafi forces shortly after he pledged "no pity, no mercy" to rebels in their stronghold of Benghazi. Rebels have since proved unable to achieve any breakthrough against better-trained and equipped government troops.

Cameron echoed Obama's calls for the departure of Gaddafi, who denies targeting civilians and portrays the disparate rebel groups as religious extremists, mercenaries and criminals serving Western schemes to seize Libya's oil.

"I believe we should be turning up that pressure and on Britain's part we will be looking at all the options of turning up that pressure," he said.

Such pressure will not include NATO troops, Obama said.

"We cannot put boots in the ground in Libya," he said. "There are going to be some inherent limitations to our air strikes in Libya."

French Foreign Minister Alain Juppe said on Tuesday the NATO bombing should achieve its objectives within months.

France said this week it would deploy attack helicopters to ensure more precise attacks against Gaddafi forces embedded among the civilian population of Libyan cities. Britain said on Tuesday it was considering doing the same.

HEAVY BOMBING IN LIBYA

In the second day of heavy NATO bombing of Tripoli, the alliance hit a vehicle storage bunker, a missile storage and maintenance site and a command- and-control site on the outskirts of Tripoli, a NATO official said. Government targets around the Western rebel outpost of Misrata had also been hit.

Libyan news agency Jana says NATO hit a telecommunications station in Zlitan overnight, causing "material and human casualties losses" west of Misrata.

British Foreign Secretary William Hague dismissed fears that Western states were being drawn into an Iraq-style conflict.

"It's very different from Iraq because of course in the case of Iraq there were very large numbers of ground forces deployed from Western nations," Hague told BBC Radio.

Diplomatic activity is intensifying. G8 world powers will discuss ways to break the impasse this week, with some expecting Russia to propose a mediation plan to the meeting.

South African President Jacob Zuma announced he would visit Tripoli next week for talks with Gaddafi in his capacity as a member of the African Union high-level panel for the resolution of the conflict in Libya,.

Zuma headed an African Union mission to Tripoli in April but the bid to halt the civil war collapsed within hours. The AU does not have a good track record in brokering peace deals, having failed recently to end conflicts or disputes in Somalia, Madagascar and Ivory Coast.

Unlike France, Italy and Qatar, the United States has not established formal diplomatic ties with the rebels. Jordan said on Tuesday it recognized the rebel council as a legitimate representative of Libya's people and planned to open an office in Benghazi.

The United States bolstered the credentials of the Benghazi-based rebel National Transitional Council as a potential government-in-waiting on Tuesday when a U.S. envoy invited it to set up a representative office in Washington.

(Reporting by Joseph Logan in Tripoli, David Brunnstrom in Brussels, Hamid Ould Ahmed in Algiers, Suleiman al-Khalidi in Amman, Mohammed Abbas in Misrata, Sherine El Madany in Benghazi, Nick Vinocur in Paris; writing by Ralph Boulton; editing by Alison Williams)

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Petraeus warns of more Afghan attacks

Gen. David Petraeus says insurgents will be attempting to demonstrate their ability to strike.Commander of NATO-led coalition warns troops of increased attacks over the summerGen. David Petraeus says insurgents will likely pursue attack to demonstrate their abilitiesPetraeus: "These attacks may increase the risk of civilian casualties and put Afghan and ISAF forces in difficult situations"Warning comes weeks after U.S. commandos killed Osama bin Laden

(CNN) -- The commander of coalition forces in Afghanistan is warning troops of increased high-profile attacks over the summer, calling on NATO-led forces to balance its tactical needs with those of the civilian population.

It is likely that insurgents will pursue high-profile attacks this summer in an attempt to demonstrate their ability to strike, Gen. David Petraeus said in a memorandum to the International Security Assistance Force.

"These attacks may increase the risk of civilian casualties and put Afghan and ISAF forces in difficult situations," Petraeus said in a memorandum made public Saturday.

"In the face of such enemy actions, we must continue our efforts to reduce civilian casualties to an absolute minimum."

The memorandum, posted on the ISAF website, comes as the Taliban and al Qaeda have claimed responsibility for an increased number of attacks against security forces in Afghanistan and U.S. targets in Pakistan.

Both groups have said many of the attacks were in retaliation after U.S. commandos killed Osama bin Laden this month.

Petraeus ordered forces to review civilian casualty directives, saying troops must achieve "the proper balance between aggressiveness and patience."

Anger in Afghanistan and Pakistan over civilian casualties has mounted in recent months following NATO air strikes that have killed dozens along their shared border.

In March, Defense Secretary Robert Gates offered a personal apology to Afghan President Hamid Karzai for the killings of nine boys in a helicopter attack targeting insurgents.

The apology came after Karzai said one made earlier by Petraeus was insufficient.

Weeks later, the international force said civilians were accidentally killed during a NATO airstrike in Afghanistan's Helmand province. The target was two vehicles believed to be carrying a Taliban leader, ISAF said.

Petraeus' warning also comes as he must decide on the number of troop reductions in Afghanistan to meet President Barack Obama's self-imposed deadline to begin withdrawing U.S. forces by July.

The president has repeatedly said he is confident the United States can meet the self-imposed deadline without compromising Afghan security, though military commanders and government officials have raised concern about the readiness of Afghan security forces.

Petraeus testified earlier this year before Congress about the plans, saying he was likely to recommend that some combat troops be among the first to return to the United States.

He has said significant progress has been made against the Taliban over the past five years. But he also has warned the progress is "fragile and reversible."

"We are at a pivotal moment in our work here, and I believe it would be valuable for every leader in ISAF to reread these documents and to internalize and employ the principles in them," Petraeus said in memorandum dated May 15, 2011.

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Kerry warns of 'critical moment' with Pakistan (AFP)

KABUL (AFP) – US Senator John Kerry said Sunday relations with key ally Pakistan were at a "critical moment" as he headed from Kabul to Islamabad as the first senior US visitor since the death of Osama bin Laden.

Kerry said he was ready to listen to Pakistan's leaders but the discovery of the Al-Qaeda chief living close to Islamabad meant that talks had to "resolve some very serious issues."

Pakistan's government, intelligence services and military have been widely accused of incompetence or complicity over the presence of bin Laden, who was killed by US commandos in a covert raid on May 2.

"We need to find a way to march forward if it is possible. If it is not possible, there are a set of downside consequences that can be profound," said Kerry, whose trip to the region has been endorsed by President Barack Obama.

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U.N. warns on standoff in Sudan region

Sudanese President Omar al-Bashir says the government will not recognize Southern Sudan if it claims the Abyei region.Forces from north, South Sudan clash this week, killing 14U.N. chief says he "is deeply concerned by the continued tension" South Sudan is expected to officially become an independent nation in JulyHowever, ownership of the oil-rich Abyei region remains a flashpoint.

(CNN) -- Violence in the disputed oil-rich region of Abyei will jeopardize relations between north and South Sudan governments as the two sides gear up for a permanent separation in July, the United Nations said.

Northern Sudan's army clashed with southern forces in the region this week, killing at least 14, the United Nations said Friday.

United Nations Secretary-General Ban Ki-moon said he "is deeply concerned by the continued tension" in the area.

"The military standoff is unacceptable," Ban said in a statement.

South Sudan in January voted to split from the north, and is expected to officially become an independent nation in July.

However, the fate of the oil-rich Abyei region remains a flashpoint.

Sudanese President Omar al-Bashir said last month that his government would not recognize the new state of South Sudan if it claims Abyei.

"Abyei is a part of the north and will remain a part of the north," the president said in a speech broadcast on state television.

Al-Bashir's declaration reneged on an earlier promise to honor the results.

On Friday, Ban urged the two sides to avoid claiming ownership of the area to avoid undermining a peaceful resolution.

"The parties must refrain from provoking each other or engaging in any military confrontation in Abyei as this could result in further loss of life and significantly affect the future relationship between North and South," he said.

Leaders of the north and the South have a range of issues to address as their separation nears, including Abyei.

Ban said the two sides should make negotiations on the disputed region a priority, joining the United States in calling for a resolution to outstanding concerns.

"It is important that both sides ... focus intensely on trying to resolve the key issues that have not been completed ... Abyei is one of them," Johnnie Carson, the U.S. assistant secretary of state for African affairs, said last month.

The referendum to split was part of a 2005 peace agreement that ended two decades of violence between the north and oil-rich south. The conflict led to the deaths of 2 million people, many from starvation.

CNN's Faith Karimi contributed to this report.

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U.N. warns on standoff in Sudan region

Forces from north, South Sudan clash this week, killing 14U.N. chief says he "is deeply concerned by the continued tension" South Sudan is expected to officially become an independent nation in JulyHowever, ownership of the oil-rich Abyei region remains a flashpoint.

(CNN) -- Violence in the disputed oil-rich region of Abyei will jeopardize relations between north and South Sudan governments as the two sides gear up for a permanent separation in July, the United Nations said.

Northern Sudan's army clashed with southern forces in the region this week, killing at least 14, the United Nations said Friday.

United Nations Secretary-General Ban Ki-moon said he "is deeply concerned by the continued tension" in the area.

"The military standoff is unacceptable," Ban said in a statement.

South Sudan in January voted to split from the north, and is expected to officially become an independent nation in July.

However, the fate of the oil-rich Abyei region remains a flashpoint.

Sudanese President Omar al-Bashir said last month that his government would not recognize the new state of South Sudan if it claims Abyei.

"Abyei is a part of the north and will remain a part of the north," the president said in a speech broadcast on state television.

Al-Bashir's declaration reneged on an earlier promise to honor the results.

On Friday, Ban urged the two sides to avoid claiming ownership of the area to avoid undermining a peaceful resolution.

"The parties must refrain from provoking each other or engaging in any military confrontation in Abyei as this could result in further loss of life and significantly affect the future relationship between North and South," he said.

Leaders of the north and the South have a range of issues to address as their separation nears, including Abyei.

Ban said the two sides should make negotiations on the disputed region a priority, joining the United States in calling for a resolution to outstanding concerns.

"It is important that both sides ... focus intensely on trying to resolve the key issues that have not been completed ... Abyei is one of them," Johnnie Carson, the U.S. assistant secretary of state for African affairs, said last month.

The referendum to split was part of a 2005 peace agreement that ended two decades of violence between the north and oil-rich south. The conflict led to the deaths of 2 million people, many from starvation.

CNN's Faith Karimi contributed to this report.

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Ratings Service Warns Politics Could Delay Budget Deal, Downgrades Outlook

Reuters

In this Feb. 14 photo, The National Debt Clock hangs from a building near Times Square in New York.

As the White House and lawmakers call for renewed cooperation to tackle the deficit, a leading rating agency isn't buying it. 

Standard & Poor's Ratings Service warned Monday that politics may be getting in the way of a budget compromise, and -- in an announcement which sent stocks tumbling -- said it was lowering the outlook for U.S. sovereign debt to "Negative" from "Stable" due to the risk posed by the growing deficit. 

Putting Washington on notice, S&P warned that it might be compelled to lower the country's rating if Congress can't reach a budget deal that brings the deficit under control. 

The announcement puts added pressure on lawmakers and the White House as they pitch dueling budget plans. Republicans called it a "wake-up call" to get spending under control. But the Obama administration disputed S&P's finding and said negotiators are, to the contrary, ready to bridge their differences. 

White House spokesman Jay Carney said the political process will outperform the agency's expectations, downplaying the significance of the announcement. 

"We see momentum going that way," a senior Treasury official told Fox Business Network, referring to the possibility of an agreement before the next election. "A lot is going on behind the scenes. ... I'm not saying it won't be messy." 

The official pointed to negotiations underway among a bipartisan group of senators, who are trying to produce a plan when Congress returns from recess. 

"Both political parties now agree that it is time to begin bringing down deficits as a share of GDP," Mary Miller, assistant secretary for financial markets at the Treasury Department, said in a written statement. "We believe S&P's negative outlook underestimates the ability of America's leaders to come together to address the difficult fiscal challenges facing the nation." 

The agency reaffirmed the investment-grade credit ratings on the United States' long-term and short-term debt. S&P says the U.S. has a high-income, diversified and flexible economy that has helped it to encourage growth while containing inflation. 

But the country's ballooning deficit could offset those positives over the next two years. The agency noted that the deficit grew to 11 percent of gross domestic income in 2009. That is much higher than the average of 2 percent to 5 percent in the previous six years. 

The statement from S&P reflected what it called the "significant risk" that deadlock in Washington could last through the 2012 elections, leaving the government without a medium-term deficit strategy for another several years. 

"Our negative outlook on our rating on the U.S. sovereign signals that we believe there is at least a one-in-three likelihood that we could lower our long-term rating on the U.S. within two years," S&P's credit analyst Nikola G. Swann said in a statement. "The outlook reflects our view of the increased risk that the political negotiations over when and how to address both the medium- and long-term fiscal challenges will persist until at least after national elections in 2012." 

Swann said a compromise that tackles the deficit could lead the ratings service to reverse its outlook. 

"Alternatively, the lack of such an agreement or a significant further fiscal deterioration for any reason could lead us to lower the rating," Swann added. 

Miller, though, said the economy is "strengthening as it emerges from the recent recession." And she pointed to the deficit-reduction plan outlined last week by President Obama in arguing that the country is ready to reverse course. 

"As the president said last week, addressing the current fiscal situation is well within our capacity as a country. He has initiated a bipartisan process that will allow us to make progress on a balanced approach to restoring fiscal responsibility," she said. 

The president outlined a plan he said would reduce the deficit by $4 trillion over 12 years. Republicans, though, said the plan relied too heavily on tax hikes and did not do enough to address entitlement spending. Republicans are pushing their own long-term budget proposal, which would overhaul Medicare and Medicaid, and are pushing for spending reforms as a condition for their support on raising the $14.3 trillion debt limit. 

The federal government is expected to hit that ceiling by next month, and the S&P announcement quickly became a political football in that debate Monday. 

Sen. Mark Kirk, R-Ill., said the debate over the debt limit offers lawmakers the chance "to save the dollar and our economy." He said S&P offered a "stark warning" for the country if lawmakers "miss this chance or if Congress sends the president a blank check."

Rep. Paul Ryan, R-Wis., author of the Republicans' budget proposal, said the failure to reach an agreement threatens the country's "economic security" and continued to hammer the president for his deficit speech last week. 

"A campaign speech is no substitute for a serious, credible budget. The president and his party's leaders must put an end to empty promises and work with us to avert this looming economic crisis," Ryan said. 

But Rep. Peter Welch, D-Vt., issued a statement arguing that the announcement reinforces the need to approve the debt ceiling increase no matter what -- since failing to increase the debt limit could cause the country to default. 

"The markets have doubts about America's ability to get its fiscal house in order. And they are right," Welch said, adding that Republicans would unleash "the financial hounds of hell" if they play politics with the debt ceiling. 

The Associated Press contributed to this report.

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Geithner Warns Nation to Hit Debt Limit Deadline in Mid-May

AP

Treasury Secretary Timothy Geithner testifies on Capitol Hill April 5 before the Senate Appropriations Committee.

Mark it on the calendar. The next big deadline in Washington is May 16, if not earlier. 

Treasury Secretary Tim Geithner now estimates that the nation's debt ceiling will be reached no later than that date. In a letter to Senate Majority Leader Harry Reid, Geithner wrote that Congress must act in a matter of weeks to raise the limit or face a fiscal calamity potentially worse than the one from which the nation is recovering. 

Geithner noted that the Treasury Department can take "extraordinary measures" to buy time -- about eight extra weeks, maximum -- after the May deadline. But he said once those measures are exhausted the U.S. government would not have enough money to pay its bills. Military salaries, Social Security payments and jobless benefits would cease, he warned, adding that a default on the debt would drive up interest rates, erode home values and cause a new financial crisis. 

"For these reasons, default by the United States is unthinkable," Geithner wrote. 

But after extracting a last-minute budget deal out of Democrats, in turn averting a government shutdown and marking billions of dollars in spending cuts in their column, Republicans are in the mood for another stand-off on Capitol Hill. From the top down, GOP leaders warn they will not vote to raise the $14.3 trillion debt ceiling unless they see genuine efforts to reduce the deficit. 

"There will not be an increase in the debt limit without something really, really big attached to it," House Speaker John Boehner said at a fundraiser Saturday night. 

In an interview with Fox News on Monday, Boehner reiterated that his members will not vote to raise the cap without "serious steps" on spending cuts. He acknowledged that leaving the cap in place would have "very serious implications for the worldwide economy and jobs here in America," but said Republicans will not "roll over" without addressing the underlying problem. 

"The biggest threat that we have to our economy and to our future is doing nothing, and that's what the president asked us to do -- do nothing," Boehner told Fox News. "Doing nothing is totally irresponsible and we will not go down that path." 

Boehner said there will be "dozens" of spending battles over the next year and a half. 

"This is about making the right decisions now," House Majority Leader Eric Cantor, R-Va., told "Fox News Sunday." He touted Rep. Paul Ryan's, R-Wis., budget proposal -- a plan released last week that contains about $6 trillion in spending cuts over the next 10 years -- and suggested Republicans would fight for at least a chunk of that plan as a condition of their support on the debt limit vote. 

Ryan, in an interview with NBC's "Meet the Press," said the Republicans' strategy is not to default but compel the government to control spending. 

"I think there will be some kind of negotiations, and yes, it probably will go up to some sort of a deadline. The debt ceiling deadline is a moving deadline, it's not a date certain deadline like the government shutdown," Ryan said. 

He said the debt ceiling increase, if Republicans are to support it, must come with "real fiscal reforms, real spending cuts, and real spending controls going forward so we can deal with the debt in the future." 

White House senior adviser David Plouffe, over the course of several television interviews Sunday, indicated that the White House is willing to put some reforms on the table. President Obama plans to announce a new deficit-reduction plan Wednesday -- a follow-up to a budget proposal earlier in the year which was widely panned by Republicans as doing little to control spending. 

Plouffe, though, told "Meet the Press" that voting "no" on the debt ceiling increase could be a "catastrophic failure for the United States economy." 

Sen. Charles Schumer, D-N.Y., urged Republicans to take the debt-limit threat off the table. 

"It could be a formula for recession or worse," Schumer told CBS' "Face the Nation." "So this is playing with fire." 

Though Geithner, in his letter to Reid, said Treasury has a few tricks up its sleeve to forestall the default deadline, he noted the government has "much less flexibility" than it used to because of the sheer size of its deficits. 

The secretary said the U.S. government, for instance, can't simply cut spending or raise taxes to avoid hitting the cap. With the public debt increasing at a rate of about $125 billion every month, Geithner said it would take an impossible amount of budgetary rearranging to halt that climb in the near-term. 

For reference, the projected fiscal 2011 deficit was about $1.6 trillion. After weeks of wrangling, Congress cut that by just $38.5 billion in the deal reached over the weekend. 

"In order to avoid an increase in the debt limit, Congress would need to eliminate annual deficits immediately," Geithner wrote.

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Reid Warns Government 'Heading' Toward Shutdown

AP

Senate Majority Leader Harry Reid speaks to reporters on Capitol Hill April 5.

President Obama vowed Thursday to veto a Republican stopgap budget bill, a move that appeared to bolster a claim by Senate Majority Leader Harry Reid that the government "looks like it's heading" toward a shutdown without a deal on a six-month plan.

The White House issued a statement Thursday afternoon declaring that Obama would veto a GOP proposal to fund the government for one week while negotiations continue on a longer-term plan. Republicans have pitched the bill as the only option for keeping the government open past a Friday deadline, but its policy riders and $12 billion in cuts are not acceptable to Democrats. 

"This bill is a distraction from the real work that would bring us closer to a reasonable compromise for funding the remainder of fiscal year 2011," the White House said. 

Reid, speaking on the Senate floor Thursday morning, also predicted his chamber would reject Republicans' bill. "It's a fantasy," Reid said. "This is a non-starter in the Senate." 

The White House statement reiterated that the president could accept a "clean" short-term bill -- in other words, one that doesn't include so many cuts and doesn't include policy riders. House Democrats are looking to push such a bill later in the day. Obama also plans to meet with Reid and House Speaker John Boehner Thursday afternoon, the third such meeting in three days. 

But the options for averting a shutdown appeared to be quickly diminishing, as Republicans stood by their proposal and began to debate it on the floor. 

The only other alternative would be to strike a deal funding the government for the rest of the year by Friday. But that would take a breathtaking and unlikely amount of corner-cutting, considering there's only two days left, and Reid said the two sides can't agree on the contents of the package anyway. He slammed Republicans for policy riders targeting the EPA and abortion funding, saying he's much less optimistic about a deal than he was a day earlier. 

"The numbers are basically there," Reid said. "The only thing holding up an agreement is ideology." 

Lawmakers kicked the fingerpointing into high gear, with a shutdown on the horizon. 

Reid preemptively blamed Republicans, saying they wouldn't budge and calling their agenda "extreme." Senate Republican Leader Mitch McConnell pointed the finger right back, saying the Senate could still avert a shutdown by approving the one-week stopgap House Republicans plan to send over. 

"This is the only proposal out there that keeps the government open," McConnell said. "If a shutdown does occur, our Democratic friends have no one to blame but themselves."

"There's no policy reason for the Senate to oppose this bill," Boehner told reporters Thursday. Boehner spokesman Michael Steel also said there's "no agreement" on a number regarding a bill for the rest of the year. 

Boehner, in an earlier interview with ABC News' "Good Morning America," said he continues to fight for the largest possible cuts and that there is "no daylight between the Tea Party and me." The Republican stopgap bill would also fund the Pentagon for the remainder of the fiscal year that ends Sept. 30. 

A few on Capitol Hill showed glimmers of optimism amid the uncertainty. 

"How did you do in your brackets, by the way?" House Rules Committee Chairman David Dreier, R-Calif., asked Thursday before noting he didn't do so well on his college basketball picks. He said he's not going to apply the same approach to the budget. 

"I'm not going to make a prediction other than to say we've got a good chance to do it," Dreier told Fox News.

Even if a temporary measure is passed, Congress would be back at the same place a week from now, so the White House is making a renewed push to bring the two sides toward a longer-term compromise. 

Obama, after meeting earlier in the week with Reid and Boehner, summoned them again to the White House Wednesday night. They did not reach a deal, but Obama called the discussion "frank" and "constructive." 

"If we are serious about getting something done we should be able to complete a deal, get it passed and avert a shutdown," Obama told reporters in the White House briefing room. 

House Republicans originally passed a budget cutting $61 billion from last year's spending. Democrats have since proposed cutting $33 billion, and negotiators have recently toyed with the idea of bringing that number toward $40 billion.

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Japan warns ships to avoid floating houses, debris

Floating debris from last month's tsunami is so enormous it is clogging shipping lanes off Japan, prompting Japan's coast guard to warn ships to give the area an especially wide berth, Bloomberg Businessweek reports.

The coast guard, which is posting daily reports on the the debris on the Internet, is warning ships to stay about 45 miles farther from the area of a stricken nuclear plant than is required for safety from radiation.

"Our forces have seen everything from cars to tractor-trailers to entire, intact homes floating in the ocean," say Anthony J. Falvo, a spokesman for the U.S. 7th Fleet, which is helping with recovery efforts, Bloomberg Businessweek reports. "They have never seen anything like it."

Ships are particularly worried that major debris will damage propellers.

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