News Today

Reyes blasts Capello's tactics and selection
MADRID - REAL Madrid's Jose Antonio Reyes has taken a swipe at coach Fabio Capello's defensive tactics, and the way he selects players out of position. The Spain winger, on loan from Arsenal, is frustrated at his lack of opportunities. Like... [Read more]

Malaysia backs Musharraf's Mid-East plan
KUALA LUMPUR - MALAYSIA, the chair of the Organisation of Islamic Conference (OIC), denied yesterday that a new Middle East peace initiative driven by Pakistani President Pervez Musharraf would undermine the grouping. General Musharraf has proposed bringing together leaders of influential... [Read more]

Three advisers appointed for divestments
JTC Corp has appointed three banks to advise it on its planned property sales, which include a billion-dollar industrial property trust.Singapore's largest industrial landlord yesterday named DBS Bank as well as global investment banks UBS and Goldman Sachs as advisers on... [Read more]

Town prepares for more flooding
KOTA TINGGI (JOHOR) - MOTORCYCLE trader Ham Hon Eng has been working overtime to get a lift installed in the second storey of his shophouse.While many residents and businessmen here are almost paralysed by worry over a possible third wave of... [Read more]

Foreigners to be enlisted in terror fight
A NEW front is being opened in the fight against terror and crime here as the authorities enlist the help of foreigners, working and living among the population, in their security efforts.For a start, the Jurong police division is reaching out... [Read more]

Descendants of Japanese war collaborators set to lose assets
SEOUL - SOUTH Korea is set to confiscate the property of about 40 descendants of people who collaborated with Japan during its 1910-1945 colonial rule, a minister said yesterday. The move comes after a special law was enacted in December 2005... [Read more]

Thailand shows it's still the Land of Smiles
FOR a few days last week, it looked like Bangkok was the last place to be seen if you were Singaporean. An ongoing diplomatic row appeared to be on the verge of worsening after Singapore beat Thailand in the first leg... [Read more]

Joint military exercise in July still on
THAILAND'S Air Chief Marshal Chalit Pukbhasuk yesterday said a joint Thai-Singapore military exercise planned for July would go ahead as scheduled. The air force chief, who is vice-chairman of the military Council for National Security, told reporters there was no truth... [Read more]

New 7-member committee
Members of the current Youth Challenge management committee, which took office last October: President Looi Teck Kheong The 42-year-old lawyer, who is married and has four children, has no prior experience in charity work. First vice-president Tang Wing Fai The 36-year-old... [Read more]

Move to prevent 'cheap sale' of state assets
SHANGHAI - CHINA yesterday announced new rules aimed at guaranteeing that state assets identified as key to the nation's economic security are not sold too cheaply to foreigners.Private deals will be strictly controlled and will require approvals from national and provincial... [Read more]

More major operations done without 'knockout' anaesthesia
SOME major operations can now be done without the patient being completely knocked out under general anaesthesia. In regional anaesthesia, doctors paralyse just that part of the body undergoing surgery. Epidurals, administered to control pain in the lower bodies of women... [Read more]

Japan machinery orders rise 3.9%

TOKYO - JAPAN'S machinery orders rose the most in five months in January, well-above forecasts, signalling that capital spending will keep fuelling growth.

Core private-sector machinery orders rose 3.9 per cent in January from December, beating economists' median forecast for a 0.5 per cent rise.

The rise was the biggest since a 6.7 per cent jump in August and followed a 0.7 per cent fall in December. The machinery report indicates corporate spending plans within six months and may offset concern that growth will slow after industrial output fell in January.

'The figures were surprisingly strong. The data showed machinery orders are clearly on a rising trend, recovering from a dip in the autumn,' said Mr Takahide Kiuchi, a senior economist at Nomura Securities. 'One reason behind the strength in capital spending is that exports are holding up fairly well.'

Compared with a year earlier, core orders, which exclude those for ships and machinery at electric power firms, rose 2.6 per cent, against a 0.8 per cent decline forecast in a Reuters poll.

A Reuters poll of 17 economists showed on Monday that Japan's economy probably grew more than initially estimated in the final quarter of last year. Forecasts for October-December growth centred on 1.3 per cent, up from an initial reading of 1.2 per cent.

REUTERS, BLOOMBERG NEWS

Stylish Arsenal in season of no substance

LONDON - ARSENAL have only themselves to blame for a season in tatters.

In the space of 11 days, they have lost the League Cup final, were knocked out of the FA Cup and fell out of the Champions League.

A 1-1 draw at the Emirates Stadium on Wednesday meant PSV Eindhoven, who won 1-0 at home two weeks ago, take a place in the quarter-finals.

Captain Thierry Henry is also out for a month, after he ripped stomach muscles shortly after coming on as a substitute.

'The last two weeks have been horrendous for us,' manager Arsene Wenger said.

'I feel as though the games have caught up with us and we lacked the sharpness and quality needed in the final third of the field. It's cruel.'

Things appeared to be going Arsenal's way when PSV defender Alex scored an own goal after 57 minutes, poking in Denilson's corner.

But, seven minutes from time, he lost marker Emmanuel Adebayor to head in Edison Mendez's free kick.

That effectively ended Arsenal's season and sparked a mass exodus of home fans.

It was a reminder that every great move requires a goal at the end if it is to mean something.

Arsenal picked away at PSV, passing back and forth but constantly deferring the chance to shoot. They did everything but score that decisive second goal.

'Arsenal can have their champagne football if they want but they are not winning the trophies,' slammed former Gunner David Platt.

'Have they got that player who puts the ball in the back of the net, that player who says 'it doesn't matter how well we play today we have to grind out a 1-0 victory'?

'First and foremost you go out and make sure the game is won, and then you play your good football.'

Injury to key players and fixture congestion have played a part.

Robin van Persie and Tomas Rosicky were out through injury. The gamble on an unfit Henry, who has missed 21 games this season, in the 66th minute only highlighted Arsenal's desperation.

'It's been a very difficult season for him, very sad,' said Wenger.

'You could see he wasn't ready physically to start the game, but I hoped he might offer something different if he was needed from the bench. But now he's out for a few more weeks.'

The Arsenal defence was reshuffled in the absence of Emmanuel Eboue - with midfielder Gilberto Silva moved into the back four.

That left two 19-year-olds, Denilson and Francesc Fabregas in the middle, instead of the towering figure of authority - as once provided by former captain Patrick Vieira - that was needed.

At the back, Arsenal are vulnerable to high balls, such as the decisive goals conceded to Chelsea's Didier Drogba in the League Cup final and to Alex on Wednesday.

'It isn't the first time we've been undone by set-plays,' said midfielder Freddie Ljungberg, blaming the youngsters for their lack of concentration.

Up front, they lack a player to back up Henry. Loan striker Julio Baptista has shone only in the League Cup and Adebayor has not realised his potential.

Wenger tried to look to the 11 remaining Premiership games, saying: 'We can overtake Liverpool and we have a good future.'

This is another 'transition' year for Arsenal.

But left-back Gael Clichy said: 'We can't look too far ahead, year after year.

'When you want to be a top club you have to win trophies.

'The reality is last night we didn't qualify.

'That is the more important thing.'

AGENCE FRANCE-PRESSE

Yen rebounds against global currencies

LONDON - THE yen strengthened against the euro yesterday on speculation that swings in global equity, bond and currency markets will deter investors from resuming so-called carry trades.

The Japanese unit advanced against 14 of the 16 most active currencies yesterday, including the US dollar and sterling.

The yen rose to 152.70 against the euro at 9.27am in London (5.27pm in Singapore), from 153.08 on Tuesday in New York. Japan's currency also climbed to 116.40 per US dollar from 116.60 on Tuesday.

Japan's Nikkei 225 Stock Average closed 0.5 per cent lower, and the benchmark FTSE 100 Index of British shares fell as much as 0.5 per cent in early trading yesterday before erasing its losses.

'The markets are jittery,' said Mr Seiichiro Muta, the director of foreign exchange at UBS in Tokyo. 'The retreat in Japanese shares is scaring some investors into becoming risk-averse.'

Japan's currency has gained 4 per cent against the euro since Feb 27, when a rout in global equities prompted traders to sell riskier holdings and repay yen-denominated loans used to fund their investments.

'Investors have taken a 50 per cent hit on their carry trades, so they won't rush back into it,' said Mr Peter Pontikis, a treasury strategist at Suncorp-Metway in Australia. The yen may climb to 115 against the US dollar by the end of March, he said.

Fluctuations in the yen have also increased, adding to the risk of losses on bets against the currency.

Concerns about the health of the United States economy - and specifically its sub-prime mortgage market - plus geopolitical jitters and a sharp sell-off in Chinese equities at the start of last week have made investors less willing to take risks.

In foreign exchange, this has lead to an unwinding of carry trades in which people borrow low-yielding currencies such as the yen or Swiss franc to fund purchases of higher-return assets.

The potential risk is that returns are wiped out by the appreciation of the funding currency, and thus investors are unwilling to hold such trades in times of high volatility.

'Investors are going to be a lot more nervous about investing in carry trades,' said Mr Mitul Kotecha, the head of global currency strategy at Calyon in London. 'The big change we've seen in the last week is that we're no longer in the environment of the one-way bet. In the short term, we're going to see more yen strength.'

The yen may weaken as global stock markets begin to recover.

The currency fell the most in more than two years against the euro on Tuesday, as share prices rebounded around the world.

'As the market stabilises, the bias will be for speculators to rebuild carry trades,' said Ms Danica Hampton, a currency strategist at Bank of New Zealand. 'This will keep a softer tone to the yen.'

The Bank of Japan's 0.5 per cent borrowing rate is the lowest of any major economy.

Before the sell-off in equities, the popularity of the carry trade last month pushed the yen to a record low against the euro, the weakest in almost 10 years versus the Australian dollar and the least since 1992 against sterling.

But in the short term, the greenback may weaken on speculation that a US report tomorrow will show employers hired 95,000 workers last month, the fewest in two years, according to a Bloomberg survey of 77 economists.

'Investors will probably sell the dollar in anticipation of softer data,' said Mr Nobuaki Tani, senior currency dealer at Resona Bank in Tokyo. 'Concerns over downside risks to the American economy haven't disappeared. The Fed may cut rates.'

BLOOMBERG NEWS, REUTERS

Nakamura warns Celtic about 'divers'

MILAN - CELTIC'S Shunsuke Nakamura has spiced up today's Champions League clash with AC Milan by accusing the Italian club's strikers of diving.

The Japan international has first-hand knowledge of Italian football, after three years with Serie A side Reggina.

He is warning his teammates to be very careful when making their tackles at the San Siro.

'I'm not one to dive, but their strikers will be looking for penalties,' he said, ahead of the tie which is tipped in AC Milan's favour after the 0-0 first-leg draw in Glasgow.

'If the strikers go past you, all it takes is the slightest touch and they will hit the floor.

'This is where Scottish and Italian football differ. You don't often see diving in Scotland, and if somebody does, the crowd shout 'cheat'.'

Milan's Massimo Oddo feels his side are too strong for Celtic, who have lost 11 of their last 12 away matches in the competition.

'It will be difficult, but I feel we are favourites - because we are AC Milan, because we play at home and because of the result from the first leg. We believe in our strengths,' he said.

Milan have not failed to reach the quarter-finals of the Champions League since the 2001-02 season, while Celtic have never been this far in the competition before.

Milan's striker Alberto Gilardino insists his team will not underestimate Celtic, who are 19 points ahead of Rangers at the top of the Scottish Premier League and could wrap up the title this weekend.

'They play well,' he said.

AGENCE FRANCE-PRESSE

Liverpool let down by lack of classy striker

IT DOES not take a genius to figure out what happened on Saturday, Rafael Benitez.

'I would have trouble explaining how we lost to Manchester United in Spanish. In English, I find it almost impossible,' said the Liverpool manager, after the 0-1 loss which saw a 30-game unbeaten home league record go up in smoke.

All he had to do was take a glance at the numbers.

The Reds had 15 shots to the Red Devils' five. Liverpool racked up 12 corners to United's two. But there was no goal for Liverpool.

'We controlled the game, we created chances, but we didn't score,' added Benitez.

For fans, it has been a frustrating, familiar refrain for the last two seasons.

The lack of a world-class striker has been Liverpool's most glaring flaw since the sale of Michael Owen to Real Madrid.

Peter Crouch, Dirk Kuyt and Craig Bellamy, at a combined cost of £23 million (S$68.7 million), are not the answer. If Didier Drogba had been playing for Liverpool, they would certainly have settled the game against United by half-time.

The Chelsea man, who scored on Saturday against Portsmouth to take his season's tally 29, cost £24 million.

It is time for Benitez to stop shopping for hopeful bargains like Andriy Voronin, the less-than-famous Ukraine striker who is set to join on a free transfer next season.

Splash the cash for a striker who can score 30 goals a season, or Liverpool will again be facing the same set of dismal statistics.

They have had 430 shots this season, a number no other team can come close to bar United, who have 426.

But the league leaders are the league leaders because they made their chances count for 66 goals. Liverpool have just 44, and their conversion rate puts them 14th in the Premiership.

Chelsea and Arsenal's 50 goals came from 384 and 362 shots respectively.

Don't even mention corners to Liverpool. They had 215 attempts at crosses from the flag this season, but produced just four goals.

It can only be a relief that Anfield is being linked with names such as Samuel Eto'o and Fernando Torres.

From the club's new American owners, Benitez can count on a transfer kitty that can afford true class.

Competition for these stars will be fierce, with Chelsea and United also interested. This off-pitch battle is one Liverpool must win first before trying to beat them in the Premiership.

United have to spend big too, to replace the veterans Ryan Giggs and Paul Scholes. They lacked pace against the pressing midfield of Liverpool, and their time is running out

However, it is the latest player linked to Old Trafford that has raised eyebrows.

Luis Carlos Almeida da Cunha, better known as Nani, is the latest outstanding winger to be produced by Sporting Lisbon, the club who unearthed Luis Figo, Simao and, yes, Cristiano Ronaldo.

The 20-year-old is best compared to the United star, their best traits being speed, trickery and an eye for goal.

The question is whether the £12 million-rated Nani has been targeted as Ronaldo's replacement. Real Madrid are willing to pay up to £50 million for the United player.

While Alex Ferguson has insisted that Ronaldo is not for sale, the Glazer family could be more pragmatic.

It remains to be seen whether the United owners could turn down such a big offer, especially with the need to replace key players who are not getting any younger.

Not that Ferguson showed any sign of his 65 years when he danced a jig after Saturday's win.

The title is United's to lose now, but it must be remembered that nothing is settled yet.

The nine-point lead can be cut down to three by Chelsea if they win their game in hand, and beat the league leaders at Stamford Bridge on April 15.

But even Jose Mourinho could not escape the significance of United's win at Anfield.

'The Gods are with them,' he said.

It seems that way.

The best player on Saturday was Liverpool defender Jamie Carragher.

But it was his challenge on the ineffectual Wayne Rooney that led to John O'Shea's introduction.

And the boyhood Liverpool fan scored in front of the Kop, as time ran out to give United the priceless three points.

The white shirts flung into away fans' section were deeply symbolic - this is where the title has been won, the United players seem to scream.

'That must have been soul-destroying for Chelsea,' said O'Shea. 'With a couple of minutes to go, Chelsea must have been watching the game thinking we were going to drop two points, maybe even three.

'They were probably thinking Liverpool could nick one because we were down to 10 men, and only just holding on. Then we go down the other end and score the winner.'

Ferguson called it: 'The luck of champions.'

Liverpool's lack of quality up front is another way to describe it.

hafiz@sph.com.sg

News Today

Thais burn effigy of S'pore minister
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