UK Stocks-Factors to watch on Friday July 22

Britain's FTSE 100 index is seen opening up as much as 36 points, or 0.6 percent on Friday, according to financial bookmakers, tracking overnight gains on Wall Street and in Asia as investors cheered a new rescue package for Greece and hopes for a breakthrough in the U.S. debt deadlock.

However, trading is likely to be volatile ahead of the expiry of monthly futures and options mid-morning in London.

Leaders of the euro zone announced late on Thursday a second bailout for debt-stricken Greece that includes an extra 109 billion euros of government money as well as a significant contribution from private sector bondholders.

The UK blue chip index closed 46.07 points or 0.8 percent higher on Thursday at 5,899.89, having endured a choppy session, trading in a 137 point range as nervous investors jostled positions awaiting the announcement from Brussels.

U.S. blue chips added 1.2 percent on Thursday as the concrete action from Europe on its debt crisis and, more importantly, signs of progress on the U.S. debt talks heartened investors.

Unexpectedly robust earnings results from Morgan Stanley , shares in which rose 11 percent, extended a relief rally to U.S. banking stocks.

After the Wall Street closing bell, however, Microsoft shares shed 0.8 percent after the world's largest software company posted a bigger-than-expected 30 percent increase in fourth-quarter profit, but profit from its core Windows product fell on soft personal computer sales.

Asian stocks rose on Friday, with euro-zone sensitive plays like HSBC , which makes up a chunky 15 percent of Hong Kong's Hang Seng index, up nearly 3 percent, helping that index gain 1.7 percent.

No important macroeconomic data will be released in Britain or the United States on Friday.

"The strong rally in the FTSE 100 suggests that a combination of new buying and short-covering may be driving the market higher," said James A. Hyerczyk, Analyst at Autochartist.

"One clue that buyers are beginning to step in is the secondary higher bottom formed at 5,752.81 against the June 17 bottom at 5,644.38. The month long support base being formed could turn into an explosive rally should buyers drive this market through the top at 6,084.08," Hyerczyk said.

* Greek deal lifts euro, stocks; outlook wary

* US STOCKS-U.S. debt news, euro debt agreement fuel rally

* Nikkei gains on banks, euro-sensitive stocks

* Euro rallies on Greece deal, US debt impasse hurts dollar

* LME copper extends fall to 3rd day, eyes 4th week of gains

* Gold steady after Europe debt deal, US deficit talks eyed

UK stocks to watch on Friday are:

BP

BP Solar is closing its U.S. manufacturing facility and will refocus is business on developing solar power projects rather than making panels for them, a company spokesman said on Thursday.

ROYAL DUTCH SHELL (RDSa.L)

Peter Sharpe, an executive at Royal Dutch Shell (RDSa.L) sees a new Chinese partnership with state-owned China National Petroleum as an opportunity to avoid paying oilfield service companies for drilling they could do just as effectively themselves.

LLOYDS BANKING GROUP

HBOS, bought by Lloyds Banking Group at the height of the financial crisis, is facing the prospect of disciplinary action from the UK's Financial Services Authority, The Independent said.

LONDON STOCK EXCHANGE

Hong Kong Exchanges and Clearing Ltd , the world's most valuable and profitable exchange operator, intends to offer about HK$52 billion ($6.7 billion) to take over the London Stock Exchange , media reports said on Friday.

Also, the UK has opted out of an European Central Bank project to establish a platform for settling share trades from across the region that aims to slash trading costs for investors, the Financial Times said.

AVIVA

Various newspaper market reports highlighted vague bid speculation surrounding the British insurer, with a price of 600 pence a share mentioned, and continental European names such as Allianz and Zurich Financial highlighed as likely predators.

C&W WORLDWIDE

Shareholders launched an attack on the board of Cable & Wireless Worldwide at the company's annual meeting on Thursday, with almost 40 percent refusing to back its lucrative executive incentive plan, The Times said

RETAIL

John Lewis , Britain's biggest department store chain, said on Friday it would step up the pace of its expansion by opening at least 10 new "flexible format" stores, eventually creating 3,000 jobs.

Also, John Lewis says its latest weekly department store sales rose 3.7 percent. .

VODAFONE

The mobile telecoms firm issues a trading update.

C&W COMMUNICATIONS

The telecoms carrier issues a first-quarter trading update.

UNITED UTILITIES

The multi-utility issues a trading update.

BEAZLEY

The insurer posts first-half results.

CLOSE BROTHERS GROUP

The investment bank issues a trading update.

VECTURA

The inhaled drugs firm holds is annual general meeting.

KCOM GROUP

The telecoms carrier holds its annual general meeting.

REGAL PETROLEUM

The oil & gas explorer holds its annual general meeting.

STRATEGIC NATURAL RESOURCES

The South African coal explorer holds its annual general meeting.

EAST BALKAN PROPERTIES

The commercial property investor holds its annual general meeting.

TODAY'S UK PAPERS

> Financial Times

> Other business headlines Multimedia versions of Reuters Top News are now available for: * 3000 Xtra : visit topnews.session.rservices.com * BridgeStation: view story .134 For more information on Top News visit topnews.reuters.com (Editing by Hans-Juergen Peters)

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Wall Street closes flat as debt worries offset earns

Stocks closed near unchanged on Wednesday, a day after Wall Street's best rally since March, as the oncoming debt ceiling deadline overshadowed strong earnings from Apple Inc.

Apple (AAPL.O) hit another all-time high one day after the maker of the iPhone and iPad reported quarterly revenues that far exceeded expectations.

The stock jumped 2.7 percent to $386.90 but, overall, investors sat on their hands amid the unresolved debt ceiling crisis in Washington. The White House and Congress were negotiating a deal to raise the U.S. debt ceiling before a looming default on August 2.

"The big elephant in the room is the debate about the debt ceiling, and as the clock ticks we all know that we are going to have a deal. It's just how soon," said Mohannad Aama, managing director at Beam Capital Management LLC in New York.

"Until then, the market is going to be affected by the daily news that is coming out of earnings season."

The Dow Jones industrial average .DJI lost 15.51 points, or 0.12 percent, at 12,571.91. The Standard & Poor's 500 Index .SPX shed 0.89 points, or 0.07 percent, at 1,325.84. The Nasdaq Composite Index .IXIC fell 12.29 points, or 0.43 percent, at 2,814.23.

Technology shares were lower, with Yahoo Inc (YHOO.O) tumbling 7.6 percent to $13.48 after reporting lackluster results, and Microsoft Corp (MSFT.O) dropping 1.7 percent to $27.06 ahead of its quarterly report on Thursday.

Financials were the best performing sector, boosted by a 4.4 percent rise in US Bancorp (USB.N) to $26.14. The Midwestern regional bank said second-quarter net income rose by 57 percent. The KBW Bank index .BKX climbed 1.5 percent.

In extended trade, chipmaker Intel Corp (INTC.O) shed 0.7 percent to $22.84, while American Express Co (AXP.N) added 0.3 percent to $52.26. Intel issued a current-quarter revenue forecast that trumped estimates, while American Express' profits topped expectations.

Sovereign debt problems in Europe and the protracted political battle over increasing the U.S. debt ceiling have weighed on stocks. On Tuesday, there was progress toward a $3.75 billion U.S. budget deal, prompting a late rally, but a resolution remained elusive.

European Union leaders must find a convincing solution to Greece's debt crisis at a Thursday summit or the global economy will pay the price, the head of the European Commission said in an unusually somber warning.

On the U.S. economic front, existing home sales fell unexpectedly to a seven-month low in June as cancellations of pending contracts surged, according to the National Association of Realtors.

Volume was light with about 6.38 billion shares traded on the New York Stock Exchange, NYSE Amex and Nasdaq, below the daily average of 7.48 billion.

Advancing stocks outnumbered decliners on the NYSE by 1,658 to 1,314, while losers beat winners 1,532 to 1,023 on the Nasdaq.

(Reporting by Chuck Mikolajczak; editing by Jeffrey Benkoe)

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At least 91 dead in Norway shooting, bomb attack

(Reuters) - A gunman dressed in police uniform shot dead at least 84 people at a youth summer camp of Norway's ruling political party, hours after a bomb killed seven in the government district in the capital Oslo.

Witnesses said the gunman, identified by police as a 32-year-old Norwegian who they believed was also linked to the bombing, moved across the small, wooded Utoeya holiday island on Friday firing at random as young people scattered in fear.

Norwegian television TV2 said the gunman detained by police was tall and blond and had links to right-wing extremism. Police said on Saturday the man had been charged for the bomb blast and the shooting.

"A paradise island has been transformed into a hell," Prime Minister Jens Stoltenberg told a news conference on Saturday.

He said he did not want to speculate on the motives of the attacks, but added: "Compared to other countries I wouldn't say we have a big problem with right-wing extremists in Norway. But we have had some groups, we have followed them before, and our police is aware that there are some right-wing groups."

Teenagers at the lakeside camp fled screaming in panic, many leaping into the water to save themselves, when the attacker began spraying them with gunfire, witnesses said.

"I just saw people jumping into the water, about 50 people swimming toward the shore. People were crying, shaking, they were terrified," said Anita Lien, 42, who lives by Tyrifjord lake, a few hundred meters (yards) from Utoeya.

"They were so young, between 14 and 19 years old."

Survivor Jorgen Benone said: "It was total chaos...I think several lost their lives as they tried to get over to the mainland.

"I saw people being shot. I tried to sit as quietly as possible. I was hiding behind some stones. I saw him once, just 20, 30 meters away from me. I thought 'I'm terrified for my life', I thought of all the people I love.

"I saw some boats but I wasn't sure if I could trust them. I didn't know who I could trust any more."

"We had all gathered in the main house to talk about what had happened in Oslo. Suddenly we heard shots. First we thought it was nonsense. Then everyone started running," one survivor, a 16-year-old called Hana, told Norway's Aftenposten.

"I saw a policeman stand there with earplugs. He said 'I'd like to gather everyone'. Then he ran in and started shooting at people. We ran down toward the beach and began to swim."

Hana said the gunman fired at people in the water.

Many sought shelter in buildings as shots echoed across the island that was hosting the annual camp for the youth wing of the Labour Party, the dominant force in politics since World War Two. Others fled into the woods or tried to swim to safety.

Boats searched for survivors into the night, searchlights sweeping the coast. Rescue helicopters flew overhead.

EXPLOSIVES FOUND ON ISLAND

The bomb, which shook Oslo's center in mid-afternoon, blew out the windows of the prime minister's building and damaged the finance and oil ministry buildings.

Police seized the gunman, named by local media as Anders Behring Breivik, and later found undetonated explosives on the island, a pine-clad strip of land about 500 meters long.

Breivik's Facebook page appeared to have been blocked by late evening. Earlier, it had listed interests including bodybuilding, conservative politics and freemasonry.

Norwegian media said he had set up a Twitter account a few days ago and posted a single message on July 17 saying: "One person with a belief is equal to the force of 100,000 who have only interests."

About 10 police officers were outside the address registered to his name in a four-story red brick building in west Oslo.

The Norwegian daily Verdens Gang quoted a friend as saying he became a right-wing extremist in his late 20s. It said he expressed strong nationalistic views in online debates and had been a strong opponent of the idea that people of different cultural backgrounds can live alongside each other.

With police advising people to evacuate central Oslo, and some soldiers taking up positions on the streets, the usually sleepy capital was gripped by fear of fresh attacks. Streets were strewn with shattered masonry, glass and twisted steel.

OKLAHOMA BOMBING

Right-wing militancy has generated sporadic attacks in other countries, including the United States. In 1995, 168 people were killed when Timothy McVeigh detonated a truck bomb at a federal building in Oklahoma City.

NATO member Norway has been the target of threats before over its involvement in conflicts in Afghanistan and Libya.

Violence or the threat of it has already come to the other Nordic states: a botched bomb attack took place in the Swedish capital Stockholm last December and the bomber was killed.

Denmark has received repeated threats after a newspaper published cartoons of the Prophet Mohammad in late 2005, angering Muslims worldwide.

In Oslo, the building of a publisher which recently put out a translation of a Danish book on the cartoon controversy was also affected, but was apparently not the target.

The Oslo district attacked is the very heart of power in Norway. Nevertheless, security is not tight in a country unused to such violence and better known for awarding the Nobel Peace Prize and mediating in conflicts, including the Middle East and Sri Lanka.

(Additional reporting by Gwladys Fouche, Victoria Klesty, Henrik Stoelen and Ole Petter Skonnord in Oslo, William Maclean in London and Patrick Lannin in Stockholm; Writing by Myra MacDonald; Editing by Diana Abdallah and Alistair Lyon)

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US STOCKS-U.S. debt news, euro debt agreement fuel rally

* Morgan Stanley jumps on results, lifts financials

* Transport stocks gain, led by Union Pacific

* Progress on U.S., Greek debt deals underpin gains

* Indexes up: Dow 1.2 pct, S&P 1.4 pct, Nasdaq 0.7 pct

* For up-to-the-minute market news see [STXNEWS/US] (Adds Microsoft results)

By Chuck Mikolajczak

NEW YORK, July 21 (Reuters) - U.S. stocks climbed on Thursday as signs of progress on the U.S. debt talks and concrete action from Europe on its own debt crisis heartened investors.

Unexpectedly robust earnings results from Morgan Stanley (MS.N), whose shares rose 11 percent to $24.20, extended a relief rally in bank stocks after Goldman Sachs' dismal trading profits stunned the market earlier in the week. [ID:nN1E76K03J] and [IDnN1E76K0Y5]

But the biggest news was on a possible U.S. debt deal to save the United States from an unprecedented default.

"We started drifting until we got a report that the president and the speaker of the House were close to an accord, and the market shot up like a rocket at that point," said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama.

The KBW Capital Markets index .KSX rose 2.9 percent.

In Europe, following a summit, euro zone leaders agreed the private sector would provide a net 37 billion euros to a second bailout package for Greece, with the total official financing around 109 billion euros. [ID:nB5E7HN03A][ID:nLDE76K1AS]

The Dow Jones industrial average .DJI gained 152.50 points, or 1.21 percent, to 12,724.41. The Standard & Poor's 500 Index .SPX rose 17.96 points, or 1.35 percent, to 1,343.80. The Nasdaq Composite Index .IXIC advanced 20.20 points, or 0.72 percent, to 2,834.43.

Stocks rallied to session highs after the White House said it saw momentum for a "balanced" deficit deal, but denied reports that U.S. President Barack Obama and Republican U.S. House of Representatives speaker John Boehner were close to a pact. [ID:nN1E76K1BO]

Transportation shares also contributed to gains after Union Pacific Corp (UNP.N) posted higher quarterly profits. Shares of the railroad company rose 4.6 percent to $104.40, and the Dow Jones transportation index .DJT was up 1.7 percent.

Biotechnology issues also rose. Alexion Pharmaceuticals Inc (ALXN.O) jumped 9.1 percent to $56.77 after the drugmaker posted better-than-expected quarterly earnings and raised its 2011 outlook. The NYSEArca biotech index .BTK climbed 1.8 percent. [ID:nL3E7IL27R]

On the downside, Dow component Intel Corp (INTC.O) shed 0.8 percent to $22.81, a day after the chipmaker trimmed its forecast for 2011 personal computer unit sales. [ID:nN1E76I25R]

After the closing bell, Microsoft Corp (MSFT.O) shed 0.8 percent to $26.87 after the world's largest software company greater-than-expected 30 percent increase in fiscal fourth-quarter profit, but profit from its core Windows product fell on soft personal computer sales. [ID:nN1E76K1RP]

Volume saw an upswing with about 8.22 billion shares traded on the New York Stock Exchange, NYSE Amex and Nasdaq, above the daily average of 7.49 billion.

Advancing stocks outnumbered declining ones on the NYSE by 2,418 to 581, while on the Nasdaq, advancers beat decliners 1,752 to 814. (Reporting by Chuck Mikolajczak; Editing by Chizu

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Troops sit down for chin wag, even as leaders won't

Thai and Cambodian soldiers eat together at Ta Kwai temple in Surin’sPhanomDong Rak district, about 140kmfrom thePreah Vihear temple. The two sides engaged in deadly border clashes in April. TAWATCHAI KEMGUMNERD

23/07/2011
Wassana Nanuam
Bangkok Post

SURIN : Thailand and Cambodia's leaders may not be talking about their border problems, but on the ground, troops from both sides are already forging bonds.

Thai soldiers have invited their Cambodian counterparts to spend time with them at temples they have occupied on their side of the border.

Col Mang Mao, the commander of Cambodia's 423th Infantry Brigade is one of two Cambodian soldiers sent to spend 24 hours with two Thai soldiers at the Ta Kwai temple in Ban Ta Miang of Surin's Phanom Dong Rak district.

This is a measure to ensure Thai and Cambodian troops stationed in the disputed area have a chance to talk first to prevent any conflicts breaking out.

Col Mang Mao said border tension in Surin has eased since the July 3 election in Thailand.

"Cambodian soldiers hope that after Thailand has a new government, negotiations will resume. Then soldiers from both sides can stop fighting each other.

"In the past, in April in particular, the clashes were very violent. Soldiers of both countries suffered losses," he said.

Col Nat See-in, the commander of the Thai 26th Ranger Division, said two Thai soldiers and two Cambodian soldiers would be stationed at the Ta Kwai temple together around the clock.

Thai troops have occupied the nearby Ta Muan temple, but have allowed five unarmed Cambodian soldiers who are part of the Cambodian military's coordination team to spend six hours a day with the troops there as a trust-building measure.

These steps, intended to ease tension and prevent unnecessary armed confrontation between the two countries' soldiers, are in line with the policy of Cambodian Prime Minister Hun Sen and Cambodian military leaders, said Col Mang Mao.

"They wanted Cambodian unit chiefs at the border to solve any disagreements through negotiations, not the use of force or shooting as in the past. They don't want the dispute to escalate."

Col Nat said the border tension lately has eased markedly.

"But we must not be reckless. We must be disciplined and stringently abide by the agreements between troops of the two countries," he said.

Several battalions of troops from both sides are still camped around Ta Muan temple and trouble could break out.

Capt Sen Nee of the Cambodian army who has been stationed at the Ta Muan temple said Cambodian soldiers were happy that Pheu Thai Party won the general election. They believed Pheu Thai would focus on holding truce talks with Cambodia rather than waging war.

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Norway’s capital, Oslo, hit by deadly blast, shootings

Friday, July 22, 2011
By Michael Birnbaum
Washington Post

BERLIN — A massive explosion rocked a government district in Norway’s capital Friday, killing seven people and injuring many more, and a shooter at a political convention on an island north of Oslo appeared to have inflicted more casualties, in incidents police are treating as connected, a police spokesman said.

“Central Oslo looks more like a battlefield,” said Runar Kvernen, a spokesman for the police directorate who was reached by telephone. “The headquarters of the Norwegian government is almost destroyed. It damaged a lot of a of buildings.”

The downtown target appeared to have been the Ministry of Petroleum and Energy, according to a police officer on the scene who spoke to the Dagbladet newspaper.

Smoke could be seen billowing from a high-rise government building on video images of central Oslo, though Kvernen said that the fires were under control. There were several injured people dripping with blood, and documents, broken glass and debris littered the ground. Reporters on the scene said that the area had not been crowded on a Friday afternoon when many people were on vacation.

Kvernen said that police had shut down central Oslo and were urging people to “get home and stay inside. “We are not 100 percent sure what we are dealing with here,” he said.

The Norwegian news agency NTB quoted police as saying that a bomb caused the explosion. Kvernen said he could not confirm that a bomb was the cause.

Prime Minister Jens Stoltenberg, speaking on NRK television, said he was safe and had not been in the area at the time of the explosion. He said no cabinet ministers had been hurt.

Kvernen also described “another very dramatic situation” on an island north of Oslo where a youth political conference of the ruling Labor Party was being held. Shots had been fired on the island, he said, and one gunman arrested.

“This is really bad,” he said. “The police have reason to believe that these incidents are connected.”

An eyewitness to the shootings on Utoya Island, about 25 miles from the capital, said in an interview on NRK television that he had seen at least 20 bodies at the camp. A video feed from a helicopter over the island broadcast on the TV2 channel showed dozens of small colorful tents at a campground that appeared to be about the length of a football field.

Norwegian news media earlier reported dozens of ambulances streaming toward the island from Oslo.

Kvernen said that a number of injured people had been evacuated by helicopter and that Norway’s equivalent of SWAT teams were searching the island for explosives “and everything.” He said that there was not yet a confirmed count of dead and injured at the camp.

Norwegian media cited witnesses who said that the shooter on the island was blond and wearing a police uniform, but Kvernen said that there was not yet an official police description of the man who was brought into custody.

Norwegian news agency NTB said that former prime minister Gro Harlem Brundtland had been present at the conference and that Stoltenberg was scheduled to speak there tomorrow.

Chatter on online jihadist forums praising the attacks — and in one instance asserting responsibility for them — started almost immediately afterward, terrorism analysts said, but it remained unclear whether those claims had any substance.

A prominent jihadist who goes by the name Abu Suleiman al-Nasser on the Shmukh al-Islam jihadist forum said that the incident was “another message arriving in the countries of Europe from the mujahideen,” according to a translation by the SITE Intelligence Group, a terrorism-monitoring organization. He said that Norway had been targeted because of its involvement in Afghanistan and because a Norwegian newspaper had reprinted controversial Danish cartoons of the prophet Muhammad.

The U.S. ambassador to Norway, Barry White, said in a telephone interview Friday afternoon that investigators in Norway were still assembling information about the attacks and had not reached any conclusions on who was responsible.

“They’re still looking at it,” White said. “Oftentimes the early answers are the wrong ones.”

White said that the United States has offered to assist the Norwegian government. “It’s a tragedy,” he said. “One of the things this demonstrates is there’s no place that is safe from a potential incident of this nature. Norway is considered a fairly safe place, and it is, but this demonstrates that things can happen anywhere.”

In Washington, President Obama expressed his condolences to Norway and offered U.S. support as Norwegian authorities investigate the incidents, which he described as terrorist attacks.

Speaking to reporters after an Oval Office meeting with the visiting prime minister of New Zealand, Obama said the events in Norway serve as a “reminder that the entire international community has a stake in preventing this kind of terror from occurring and that we have to work cooperatively together, both on intelligence and in terms of prevention of these kinds of horrible attacks.”

A spokeswoman for Oslo University Hospital said that 11 injured people had been admitted by Friday evening, some of them in serious condition. It was not immediately clear what kind of bomb had exploded in the capital or where it had been, but NRK television broadcast images of a blackened, damaged vehicle turned on its side near the site of the blast.

Norway has been better known for the Nobel Peace Prize than for any warlike demeanor, and the attack appeared to shock residents and the government establishment of the country. Unlike fortified capitals in other cities, central Oslo is open and unsecured; few barriers prevent cars from approaching government buildings.

The blast appeared likely to change that.

Other Scandinavian countries have been the targets of terrorism, most recently Sweden in December, when two explosions hit Stockholm; in one of the blasts, a suspected terrorist bomber killed himself and injured two other people in a central area of the city. The suspect had made recordings condemning Sweden’s involvement in Afghanistan.

Norway has also contributed significantly to the NATO-led effort to protect civilians in Libya, sending several F-16 jets that had been carrying out 10 percent of the strikes on the country since March, according to the Norwegian Air Force. The aircraft are scheduled to return home at the end of the month.

Earlier this month, Libyan leader Moammar Gaddafi threatened Europe with suicide bombings as revenge for the NATO campaign.

Norway had also filed charges last week against an Iraqi-born cleric, Mullah Krekar, a founder of the Kurdish militant group Ansar al-Islam, for threatening Norwegian officials with death if he was deported from the country.

Staff writers Greg Miller and William Branigin in Washington contributed to this report.

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Army aided loggers: US cable

Royal Cambodian Armed Forces soldiers patrol in Oddar Meanchey province earlier this year. (Photo by: Sovan Philong)

Friday, 22 July 2011
Vong Sokheng and James O’Toole
The Phnom Penh Post

An American diplomatic cable from the United States embassy in Bangkok claims that armed Cambodian soldiers have been used to protect loggers working illegally in Thai territory.

The cable, made public this month and originally obtained by the anti-secrecy organisation WikiLeaks, dates from December of 2009 and recounts an incident near the border from that month during which one Cambodian logger was killed by Thai troops.

Then-US Ambassador to Thailand Eric John wrote in the cable that a source had told the embassy “that Cambodian soldiers were protecting the loggers when shots were exchanged between the two sides, resulting in the death of one of the loggers, who suffered from shotgun and grenade wounds”.

“Patches confiscated from the Cambodians involved suggested involvement by security personnel, who were presumably moonlighting in this other role,” John wrote.

Dy Phen, director of the Cambodian-Thai border relations office in Banteay Meanchey province, yesterday denied allegations of military involvement in illegal logging across the border.

“As a soldier at the border, I can assure you that individual soldiers would not dare to cross the border illegally to protect loggers because that is a violation of the sovereignty of Thailand,” he said.

“I think those allegations are just to defend Thai soldiers who performed their duties wrongly and shot unarmed Cambodian civilians.”

The shootings of Cambodian loggers near the Thai border have been a persistent problem in recent years.

Chan Soveth, a senior investigator with the local rights group Adhoc, said yesterday that his group had confirmed the deaths of 22 Cambodian loggers shot by Thai forces in 2010, and is investigating roughly a dozen cases from this year.

In January of 2010, just over a month after the shooting described in the US cable, Minister of Foreign Affairs Hor Namhong accused Thai forces who fire on Cambodian loggers of breaching international law.

“If Cambodian people do something wrong, [Thai authorities] can punish them by using international law and the principle of human rights,” he said, adding that Cambodia had sent Thailand “many diplomatic notes” on the issue.

Last week, WikiLeaks released all 777 diplomatic cables from the American embassy in Phnom Penh that the group has in its cache of over 250,000 leaked US State Department documents.

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Abhisit demands Cambodia pullout [-Abhisit's last bravado?]

Changing of the guard: National police chief Pol Gen Wichean Potephosree visits border patrol officers in Kantharalak district of Si Sa Ket province yesterday. He plans to deploy the units in the disputed area with Cambodia in place of soldiers following the International Court of Justice’s order for a demilitarised zone to be set up on the common border. (TAWATCHAIKEMGUMNERD)

22/07/2011
Bangkok Post

Outgoing Prime Minister Abhisit Vejjajiva is demanding Cambodia withdraw its soldiers from the disputed area near Preah Vihear temple before Indonesian observers enter the zone.

In response to a report that Cambodia wants Indonesian observers to enter the disputed area before its military pulls out, Mr Abhisit said yesterday Thailand was standing firm on its original demand that Cambodia withdraw its troops first.

The International Court of Justice (ICJ) ruled on Monday that Thailand and Cambodia should withdraw their soldiers from the disputed area and let observers from the Association of Southeast Asian Nations (Asean) deploy pending its consideration of a Cambodian petition concerning ownership of the area.

"If Cambodia wants to cite the court order to bring observers there right away, Cambodia must withdraw its troops first," Mr Abhisit said.

"Cambodia is the party that filed the petition with the court and the court told Cambodia to withdraw its troops right away."

Mr Abhisit demanded that Cambodia enter talks with Thailand as the two countries' stances on troop withdrawals were still different.

He said Cambodia had not yet contacted Thailand about talks.

Mr Abhisit said the Foreign Ministry would take three to four months to prepare Thailand's opinion on Cambodia's request for the ICJ to interpret Cambodia's ownership of the area near Preah Vihear temple.

The Thai opinion will reach the international court in time so that the ICJ judges can give their ruling before five of the 15 justices are replaced by next February, he said.

Foreign Minister Kasit Piromya yesterday called for a fair withdrawal of troops by both sides and urged Cambodia to discuss the issue with Thailand.

He also said the effects of the ICJ's order were too extensive for the Thai-Cambodian General Border Committee (GBC) to handle.

Meanwhile, army chief Prayuth Chan-ocha said his troops remained in the disputed area pending negotiations between Thailand and Cambodia.

National police chief Pol Gen Wichean Potephosree visited border areas in Si Sa Ket province yesterday to prepare for the future deployment of border patrol units in place of soldiers in compliance with the ICJ's demilitarised zone order.

He said police had withdrawn from border areas with Cambodia in 1978 to make way for soldiers and they would have to review their database on border areas and revive relations with their Cambodian counterparts.

People living near the Thai-Cambodian border in Si Sa Ket and Surin provinces conducted evacuation drills yesterday.

The drills were aimed at ensuring that people in the area can be evacuated effectively in the event of any further border clashes.

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U.S. debt news and euro debt agreement fuel rally

Stocks climbed on Thursday as signs of progress on the U.S. debt talks and concrete action from Europe on its own debt crisis heartened investors.

Unexpectedly robust earnings results from Morgan Stanley (MS.N), whose shares rose 11 percent to $24.20, extended a relief rally in bank stocks after Goldman Sachs' dismal trading profits stunned the market earlier in the week.

But the biggest news was on a possible U.S. debt deal to save the United States from an unprecedented default.

"We started drifting until we got a report that the president and the speaker of the House were close to an accord, and the market shot up like a rocket at that point," said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama.

The KBW Capital Markets index .KSX rose 2.9 percent.

In Europe, following a summit, euro zone leaders agreed the private sector would provide a net 37 billion euros to a second bailout package for Greece, with the total official financing around 109 billion euros.

The Dow Jones industrial average .DJI gained 152.50 points, or 1.21 percent, to 12,724.41. The Standard & Poor's 500 Index .SPX rose 17.96 points, or 1.35 percent, to 1,343.80. The Nasdaq Composite Index .IXIC advanced 20.20 points, or 0.72 percent, to 2,834.43.

Stocks rallied to session highs after the White House said it saw momentum for a "balanced" deficit deal, but denied reports that U.S. President Barack Obama and Republican U.S. House of Representatives speaker John Boehner were close to a pact.

Transportation shares also contributed to gains after Union Pacific Corp (UNP.N) posted higher quarterly profits. Shares of the railroad company rose 4.6 percent to $104.40, and the Dow Jones transportation index .DJT was up 1.7 percent.

Biotechnology issues also rose. Alexion Pharmaceuticals Inc (ALXN.O) jumped 9.1 percent to $56.77 after the drugmaker posted better-than-expected quarterly earnings and raised its 2011 outlook. The NYSEArca biotech index .BTK climbed 1.8 percent.

On the downside, Dow component Intel Corp (INTC.O) shed 0.8 percent to $22.81, a day after the chipmaker trimmed its forecast for 2011 personal computer unit sales.

After the closing bell, Microsoft Corp (MSFT.O) shed 0.8 percent to $26.87 after the world's largest software company greater-than-expected 30 percent increase in fiscal fourth-quarter profit, but profit from its core Windows product fell on soft personal computer sales.

Volume saw an upswing with about 8.22 billion shares traded on the New York Stock Exchange, NYSE Amex and Nasdaq, above the daily average of 7.49 billion.

Advancing stocks outnumbered declining ones on the NYSE by 2,418 to 581, while on the Nasdaq, advancers beat decliners 1,752 to 814.

(Reporting by Chuck Mikolajczak; Editing by Chizu Nomiyama)

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Brent crude falls in late gasoline, spread sell off

Brent crude fell on Thursday, dragged down in an aggressive late sell off in gasoline and spreads due in part to U.S. demand concerns.

After trading positive for most of the day, Brent tumbled in late afternoon activity as crude and gasoline trading volumes jumped.

Market players said growing concerns about U.S. gasoline demand, which has been lagging year-ago levels by 2.2 percent over the last four weeks in the midst of the summer driving season, helped spark the sell off.

"I think part of what we are seeing here is a recognition of where we are in the summer driving season -- we don't have that much driving season demand in front of us," said Tim Evans, energy analyst for Citi Futures Perspective in New York.

Brent, considered a better benchmark of market conditions globally and in the giant U.S. Gulf Coast refining region than U.S. crude, had been traded up for most of the U.S. trading session on optimism about a possible deal to bail out Greece and news that the world's biggest oil consuming nations would not release more crude.

Gasoline futures tumbled 1.5 percent and the RBOB crack spread fell 13 percent. Brent crude fell 64 cents to settle at $117.51 a barrel.

U.S. crude held on to gains to settle up 73 cents at $99.13 a barrel, after earlier rising above $100 a barrel and breaking out of the $93 and $99 a barrel trading range seen for most of July.

U.S. crude traded volume was around 703,200 contracts, almost 23 percent below the 30-day average, as of 4:50 p.m. EDT (2050 GMT) while Brent volume hit 437,000 lots, down almost 34 percent from the 30-day average.

Additional pressure came from spread selling between the two futures contracts, with the premium of Brent to U.S. crude narrowing $1.15 to $18.50 a barrel in late activity, traders said.

The recent drawdowns in inventories at the Cushing, Oklahoma delivery point for the U.S. contract, which last week hit the lowest level since December 24, helped prompt the sell off, according to market participants.

The premium of Brent to U.S. crude hit a record over $23 a barrel earlier this month, supported by rising flows of Canadian crude into Cushing and other parts of the Midwest.

EARLY SUPPORT FROM IEA, GREECE HOPES

Crude earlier found support from news euro zone leaders were set to give their financial rescue fund new powers to help Greece overcome its debt crisis that eased concerns that have weighed on oil and other markets in recent weeks.

Further support came from upbeat data showing factory activity in the U.S. Mid-Atlantic region bounced back in July, as well as news members of the IEA decided against releasing more oil stockpiles despite the threat of high prices to the economic recover.

The IEA shocked oil markets in June, announcing it would release 60 million barrels of oil to help replace disruptions of Libyan supply and bring down prices. Prices initially plunged, but in the month since the announcement, Brent prices have climbed back more than $10 a barrel.

But on Thursday, the energy watchdog for the industrialized nations confirmed what many analysts had expected, saying not a single one of its 28 members had asked for more oil to be released, including the United States, one of the architects of the first release a month ago.

In addition, the United States has no plans to do a unilateral release of its own strategic reserves right now, the Department of Energy said.

In Asian trading, crude prices fell on news that manufacturing in China contracted for the first time in a year in July, as monetary tightening and sluggish global demand weighed on the economy. China is seen as a major source of future oil demand growth.

(Reporting by Gene Ramos, Janet McGurty, Selam Gebrekidan and Matthew Robinson in New York; Barbara Lewis in London: Seng Li Peng in Singapore; Editing by Marguerita Choy)

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Greek deal lifts euro, stocks; outlook cloudy

(Reuters) - Asian stocks rose and the euro climbed to a two-week high on Friday after European leaders agreed on a package to rescue debt-stricken Greece and gains will be sustained if U.S. policymakers also manage to cobble together a last minute deal.

European shares are set to open higher with financial spreadbetters expecting major indices to open between 0.6 to 0.7 percent higher.

Even as markets greeted the Europe rescue package news with relief, the single currency still faces considerable headwinds in its march toward a early May peak of near $1.50 as doubts regarding longer-term effectiveness of the deal remained.

For now, euro-sensitive plays, such as Japanese stocks including Canon (7751.T) and Nikon (7731.T) climbed, benefiting from the currency's strength, which would boost their exports.

Hong Kong shares .HSI were the clear outperformers in the region for the day with HSBC Holdings (0005.HK) -- which makes up a chunky 15 percent of Hong Kong's Hang Seng index -- up nearly 3 percent, helping the index gain 1.7 percent.

An emergency summit of leaders of the 17-nation currency area pledged on Thursday to conduct a second bailout of Greece with an extra 109 billion euros ($157 billion) of government money, plus a contribution by private sector bondholders estimated to total as much as 50 billion euros by mid-2014.

Investors who have been stricken by a series of factors ranging from the U.S. and Europe debt crises to concerns about a sharp slowdown in China used this rare bit of good news to pick up bargains.

Australian shares .AXJO rose 1 percent while Japan's Nikkei .N225 climbed 0.8 percent though a stronger yen may check gains.

The MSCI index of shares for Asia ex-Japan .MIAPJ0000PUS rose more than 1.1 percent, set for a fourth consecutive day of gains.

Equity gains were also sustained by a strong close on Wall Street with banks among the best performers after surprisingly strong results from Morgan Stanley (MS.N).

In credit markets, the Asia ex-Japan iTraxx investment grade index tightened by it biggest margin in over three months, pulling in by five basis points to 115 bps.

Emerging markets remain a preferred investment destination despite the uncertainty surrounding markets. Both emerging market equities and debt recorded decent inflows in the week ended July 20, according to Thomson Reuters Lipper data.

EURO GAINS SHORT-LIVED?

Demand for risk was also rekindled as hopes of a breakthrough in the U.S. debt deadlock gathered momentum with the White House and top lawmakers scrambling to sort through competing options before a August 2 deadline.

In currency markets, the euro vaulted more than 1 percent to as high as $1.4440 on trading platform EBS in early trades, the highest level since July 6, before easing slightly to $1.4385, up more than a percent since Thursday.

The single currency's way forward is strewn with technical resistance levels in the areas of 1.4458, 1.4493 and 1.4519.

Barclays Capital said the latest rescue package remains short of key details in areas like private sector involvement and the proposed size of the euro zone's rescue fund.

"The dollar is broadly weighed down, while the euro was lifted mainly by short-covering and it may have some more room to climb until around $1.45," said Makoto Noji, senior bond and currency strategist at SMBC Nikko Securities.

"Still, the market is not overly optimistic as the euro's effective exchange rate has not come up. The euro also remains under pressure against the Swiss franc and the yen as the euro zone debt problems linger," Noji said.

Elsewhere, gold fell to around $1,590 an ounce, about $20 below a record high of near $1,610 set on Tuesday. Silver tumbled more than 2 percent.

In bond markets, yields on ten-year U.S. Treasury notes stabilized around 3 percent after rising by more than 12 basis points in the past three sessions.

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A U.S. connection to Britain's tabloid scandal?

Rupert Murdoch is an attractive target for politicians on both sides of the Atlantic. Allegations that investigators for his flagship London tabloid, the News of the World, hacked into telephones — including one belonging to a missing girl later found dead — are appalling. So are allegations that News of the World staffers paid the police for confidential information.

But does the scandal have an American angle? Some members of Congress think so, and they succeeded in persuading the FBI to open a preliminary probe. But they may find themselves disappointed. "Americanizing" the scandal may prove a difficult task.

One supposed connection between the scandal and the United States is that News of the World employees reportedly sought the phone records of 9/11 victims and survivors in this country. Rep. Peter T. King (R-N.Y.) said he was aware of reports that they had solicited a New York police officer "to gain access to the content of private phone records" of 9/11 victims. But for the moment at least, there is scant evidence that such activity took place.

Another attempt to create a connection with the United States involves the Foreign Corrupt Practices Act, a law that forbids U.S. businesses to bribe foreigners. The theory is that because Murdoch's parent company is located in the United States, British reporters might have run afoul of the act if they bribed British police. It's an ingenious but unpersuasive idea.

On Friday, another tenuous tie to the U.S. seemed to emerge when Les Hinton, chief executive of the Murdoch-owned Dow Jones & Co. and publisher of the Murdoch-owned Wall Street Journal, stepped down. His resignation was not the result of activity that took place in the U.S., however, but because of his longtime role as head of Murdoch's British publishing subsidiary.

The final tie between the scandal and the United States is Murdoch himself. Some of his American detractors object not only to what allegedly happened at the News of the World but also to Murdoch's politics or the extent of his empire. The scandal provides them with an opportunity to accuse him of illegality as well as arrogance.

If the practices that allegedly occurred at the News of the World also took place at Murdoch's operations in this country, then of course a thorough federal investigation and prosecution would be necessary. But some of the outrage in Congress over a British scandal is a case of "everybody's gotta get into the act."

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Don't mess with my 70-year-old Grandma!

Grandma Sao Run shows her Bokator skills (Photo: Koh Santepheap)

http://www.box.net/shared/z4u3xftomi8s9a1ya9qm

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Welcome to Cambodia Town in the Heart of Long Beach, Calif.

Welcome to Cambodia Town
in the Heart of Long Beach, Calif.

See the Press Telegram Photos of the Cambodia Town Sign unveiling ceremony.

As the home to the largest concentration of Cambodian families and businesses in Long Beach, our vibrant neighborhood is where Cambodian American history florished.

“Cambodia Town” is viewed by many to be the heart of the Cambodian American community. Cambodian-Americans from the greater Los Angeles County, Orange County, and as far away as San Diego, Fresno, Stockton, Oakland, and San Jose come to this area on a regular basis to shop, eat, and do business. Cambodians from all over the world know about Long Beach, California.

The official recognition of this section of Long Beach as “Cambodia Town” will improve the business client for current stores, attract new businesses, bring in tourists, and increase civic pride. It will elevate the economic well-being of the neighborhood adjacent to the corridor.

We are a neighborhood that cherishes diversity, dignity, safety and well-being, and business opportunity and success for all Long Beach residents.

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Long Beach, Cambodia Town USA

Long Beach, California… A “suburb” of Los Angeles (just 20 miles away), on the Pacific coast. Long Beach is a city of nearly half a million people, the most ethnically diverse city in the United States. Besides this, Long Beach has one of the world’s largest shipping ports (for my whole life I had never seen such a wide huge massive extended port!), with a large oil industry since oil in the area is found both underground and offshore.

Long Beach Asian community includes a large Cambodian community, considered the second-largest Cambodian community outside of Asia (after Paris, France) with 50 000 Cambodian American people or Americans from Cambodian descent. The Cambodian community of Long Beach is mostly visible in a neighborhood along Anaheim Street, between Atlantic and Junipero Streets. In 2007, the “Little Phnom Penh” became “Cambodia Town” - http://www.cambodiatown.org/ - with an official recognition from the city of Long Beach.

Long Beach is a place that makes Cambodian people proud! Even though the integration has not always been easy, even though some people in the Cambodian community still face big challenges to be able to make it here in the USA (language, jobs, wages, health, studies, education, “weight” of the past, identity struggle…), the Cambodian people in the US are proud of Long Beach for the actions, the results and the impacts that the community here has built in the city…

. .

See more stories about the Cambodian Americans in the archives of this blog! ..

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UPDATE 4-IBM's services signings surge, stock rises

* Signings up better-than-expected 16 percent

* Sets positive tone for tech earns, corporate spending

* Shares rise 2 percent (Adds details on markets, analysts' comments)

By Jim Finkle

BOSTON, July 18 (Reuters) - IBM's (IBM.N) signings of new business at its services division surged 16 percent in the second quarter, trouncing expectations and raising hopes that 2011 will be a good year for the technology sector.

Investors had feared that technology sales would slow in the second half, hurt by the economic uncertainty in Europe and Japan. But IBM offset sluggish business there with strong growth in developing markets from Brazil to China, and robust sales of a new line of mainframe computers.

Analysts said the results marked a strong start to the tech earnings season, with other bellwethers such as Apple Inc (AAPL.O), Intel Corp (INTC.O) and Microsoft Corp (MSFT.O) set to report quarterly results in coming days. [ID:nN1E76H1KN]

"As I look for the balance of the earnings reports this week, I think it's going to set a pretty good tone," said Keith Wirtz, chief investment officer for Fifth third Asset Management.

International Business Machines Corp shares climbed 2 percent to a record high on the news. The company also raised its full-year profit forecast after second-quarter results beat Wall Street estimates.

"Good service signings reflect that they are capturing their share of the solid IT spending that we're seeing in the market now," said Edward Jones analyst Josh Olson.

"IT spending and demand for software and services remains healthy despite all this economic turmoil, and businesses continue to invest in efficiency," he said. "We're seeing that in these results."

IBM said on Monday that signings rose to $14.3 billion during the second quarter, beating Wall Street projections and easing investor concerns after the closely watched number dropped in the first quarter.

Deutsche Bank said in a research note that analysts on average had expected signings of $12 billion to $13 billion.

Investors believe signings is a key indicator of future profits. But IBM says the focus should be more on total backlog of business, which grew by $15 billion during the quarter to $144 billion.

Some $8 billion of the $15 billion increase in backlog came from the developing economies that IBM defines as "growth markets."

WAITING OUT THE TURBULENCE?

Some investors had feared that corporations will keep a tight grip on 2011 technology budgets, waiting out the economic uncertainty in the United States and Europe.

But developing markets drove top line growth for IBM. On a constant-currency basis, revenue leaped 13 percent in growth markets -- which includes the BRIC countries of Brazil, Russia, India and China -- far outpacing the 3 percent sales growth chalked up in so-called major markets.

The growth in developing countries was led by sales to financial services firms and communications companies.

IBM reported second-quarter profit, excluding items, of $3.09 per share, beating the average Wall Street forecast of $3.03, according to Thomson Reuters I/B/E/S.

Revenue rose 12 percent from a year earlier to $26.67 billion, ahead of the average forecast of $25.35 billion.

Shares in the Armonk, New York, company rose to $178.90 in extended trade, beating the previous record high of $177.76 on July 6. They had fallen 26 cents to $175.28 in regular New York Stock Exchange trade on Monday.

Analysts said Wall Street had priced in strong growth expectations, limiting the stock's after-hours rally.

"Expectations are pretty high for this name right now. We've seen it do very well this year, up 20 percent or so to date," Olson said. (Additional reporting by Alexei Oreskovic and Noel Randewich in San Francisco and Liana Baker in New York; Editing by Edwin Chan and Richard Chang)

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US STOCKS-Wall Street gains on earnings, eyes Apple

IBM rallies on strong new services business

* Apple at yearly high before reporting results

* Goldman, BofA hit 52-week lows after earnings

* Indexes up: Dow 1 pct, S&P 0.9 pct, Nasdaq 1.5 pct

* For up-to-the-minute market news see [STXNEWS/US] (Updates with comments on Apple in paragraphs 4-5)

By Aleksandra Michalska

NEW YORK, July 19 (Reuters) - U.S. stocks jumped 1 percent on Tuesday on strong earnings from IBM and Coca-Cola, offsetting investor disappointment in results from big financial firms.

The turnaround from Monday's losses over debt worries also came from unexpectedly strong U.S. housing data.

Dow component International Business Machines Corp (IBM.N) added 4.3 percent to $182.84 a day after it said new business at its services division was up more than expected, raising hopes for the technology sector.

The S&P information technology sector .GSPT gained 1.9 percent, the top gainer among S&P sectors. Shares of Apple (AAPL.O) hit a 52-week high ahead of its report due after the closing bell. For details, see [ID:nN1E76H1DO]

"I don't think it's going to be a surprise that Apple earnings are going to be very good," said Michael James, senior trader at regional investment bank Wedbush Morgan in Los Angeles. "The stock might have a significant move tomorrow. How big it's going to be will depend on the guidance commentary that they give."

The Dow Jones industrial average .DJI was up 123.40 points, or 1.00 percent, at 12,508.56. The Standard & Poor's 500 Index .SPX was up 11.65 points, or 0.89 percent, at 1,317.09. The Nasdaq Composite Index .IXIC was up 42.21 points, or 1.53 percent, at 2,807.32.

The market has been preoccupied with corporate earnings, putting on the back burner wrangling in Washington over a deal to raise the debt ceiling. There is a growing sense that a last-ditch plan taking shape in Congress may be the only way to avoid a U.S. default. [ID:nN1E76H1Y0]

However, all 10 S&P 500 sectors rose on Tuesday, even financials despite by declines in Goldman Sachs Group Inc (GS.N) and Bank of America following their results. After advancing in the morning, Bank of America (BAC.N) fell 3 percent to $9.43. Goldman lost 2 percent, to $126.68.

"Goldman is a bellwether of the rest of the banks, and it should set the tone for the rest of them, but I wouldn't be too pessimistic," said Robert Francello, head of equity trading for Apex in San Francisco.

Those losses were offset by a 4 percent rise in shares of Wells Fargo (WFC.N) to $27.95 after it said profit rose 30 percent. [ID:nN1E76H058].

Housing starts topped forecasts in June to touch a six-month high, and permits for future construction unexpectedly increased, the government reported. Homebuilder D.R. Horton Inc (DHI.N) climbed 4.16 percent to $11.76 and the PHLX Housing Index .HGX rose 2 percent. [ID:nLDE76I14Y]

Goldman's second-quarter net income fell short of lowered expectations as fixed income trading revenue dropped sharply. Bank of America recorded a second-quarter net loss of $8.8 billion after a big settlement with mortgage bond investors. [ID:nLDE76I122] [ID:nN1E76H0D0]

Coca-Cola Co (KO.N) posted slightly higher-than-expected profit on strength in emerging markets. Johnson & Johnson's (JNJ.N) earnings topped estimates on a turnaround in its prescription medicines and stabilizing sales of over-the-counter medicines. [ID:nN1E76I03V] [ID:nN1E76I03I]

Coke rose 3 percent to $69.36, while J&J was 1 percent lower at $66.37. Both stocks are Dow components. (Additional reporting by Caroline Valetkevitch and Ryan Vlastelica; Editing by Kenneth Barry)

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Wall Street gains on earnings, eyes Apple

Reuters) - Stocks jumped 1 percent on Tuesday on strong earnings from IBM and Coca-Cola, offsetting investor disappointment in results from big financial firms.

The turnaround from Monday's losses over debt worries also came from unexpectedly strong U.S. housing data.

Dow component International Business Machines Corp (IBM.N) added 4.3 percent to $182.84 a day after it said new business at its services division was up more than expected, raising hopes for the technology sector.

The S&P information technology sector .GSPT gained 1.9 percent, the top gainer among S&P sectors. Shares of Apple (AAPL.O) hit a 52-week high ahead of its report due after the closing bell.

"I don't think it's going to be a surprise that Apple earnings are going to be very good," said Michael James, senior trader at regional investment bank Wedbush Morgan in Los Angeles. "The stock might have a significant move tomorrow. How big it's going to be will depend on the guidance commentary that they give."

The Dow Jones industrial average .DJI was up 123.40 points, or 1.00 percent, at 12,508.56. The Standard & Poor's 500 Index .SPX was up 11.65 points, or 0.89 percent, at 1,317.09. The Nasdaq Composite Index .IXIC was up 42.21 points, or 1.53 percent, at 2,807.32.

The market has been preoccupied with corporate earnings, putting on the back burner wrangling in Washington over a deal to raise the debt ceiling. There is a growing sense that a last-ditch plan taking shape in Congress may be the only way to avoid a U.S. default.

However, all 10 S&P 500 sectors rose on Tuesday, even financials despite by declines in Goldman Sachs Group Inc (GS.N) and Bank of America following their results. After advancing in the morning, Bank of America (BAC.N) fell 3 percent to $9.43. Goldman lost 2 percent, to $126.68.

"Goldman is a bellwether of the rest of the banks, and it should set the tone for the rest of them, but I wouldn't be too pessimistic," said Robert Francello, head of equity trading for Apex in San Francisco.

Those losses were offset by a 4 percent rise in shares of Wells Fargo (WFC.N) to $27.95 after it said profit rose 30 percent.

Housing starts topped forecasts in June to touch a six-month high, and permits for future construction unexpectedly increased, the government reported. Homebuilder D.R. Horton Inc (DHI.N) climbed 4.16 percent to $11.76 and the PHLX Housing Index .HGX rose 2 percent.

Goldman's second-quarter net income fell short of lowered expectations as fixed income trading revenue dropped sharply. Bank of America recorded a second-quarter net loss of $8.8 billion after a big settlement with mortgage bond investors.

Coca-Cola Co (KO.N) posted slightly higher-than-expected profit on strength in emerging markets. Johnson & Johnson's (JNJ.N) earnings topped estimates on a turnaround in its prescription medicines and stabilizing sales of over-the-counter medicines.

Coke rose 3 percent to $69.36, while J&J was 1 percent lower at $66.37. Both stocks are Dow components.

(Additional reporting by Caroline Valetkevitch and Ryan Vlastelica; Editing by Kenneth Barry)

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Venezuela tops oil reserves league in OPEC table

(Reuters) - OPEC's proven crude oil reserves rose 12.1 percent in 2010 to 1.19 trillion barrels led by Venezuela, which has surpassed Saudi Arabia as the group's largest reserves holder, OPEC said in its Annual Statistical Bulletin.

The latest figures are unlikely to quell skepticism about reserves estimates from the Organization of the Petroleum Exporting Countries, some of which analysts say may be exaggerated although the producers deny doing so.

OPEC's growth in oil reserves was mainly due to Venezuela, whose holdings climbed to 296.5 billion barrels from 211.2 billion in 2009, the report said. Top OPEC exporter Saudi Arabia's reserves were steady at 264.5 billion barrels.

Iran and Iraq also boosted their reserves last year. In October, Iran increased its reserves to 150 billion barrels within a week of an upward revision by Iraq, ensuring that Tehran continued to rank above Baghdad.

"OPEC has a fantastic history of competitive reserves upgrades," said Bill Farren-Price, analyst at Petroleum Policy Intelligence.

Reserves are one of the criteria OPEC has used in setting output targets. Iran and Iraq were rivals in the past over OPEC quotas and OPEC in the next few years is expected to tackle the issue of bringing Iraq back into the quota system. Iraq is exempt at present.

Iraq boosted its reserves to 143 billion barrels last year, up 24 percent, the report said. Iraq has said its reserves increased as work by international oil companies started to yield results.

Venezuela's move to the No. 1 reserves spot bumps Iran and Iraq to third and fourth place respectively. Commenting on the OPEC report, an Iranian official said the country still held its status as OPEC's second-largest producer after Saudi Arabia.

"Iran is still the second crude producer of OPEC and insists on this," an unnamed Oil Ministryofficial told Iran's state news agencyIRNA on Tuesday.

RISING GLOBAL SHARE

OPEC said a year ago its reserves increased in 2009 because of Venezuela. President Hugo Chavez's government said in January it had had overtaken Saudi Arabia as the world leader.

Venezuela's new deposits were booked in the South American country's Orinoco extra heavy crude belt.

The boost in Venezuela's figures helped OPEC attain a larger share of the global total. OPEC holds 81.3 percent of the world's proven crude reserves, up from 79.6 percent in 2009, the report said.

Saudi Arabia, by far OPEC's largest exporter, holds an advantage in that its oil is mostly light, conventional, easily-pumped crude. The Orinoco oil needs to be upgraded or mixed with a lighter grade to create an exportable blend.

Some countries such as Algeria, Kuwait and the United Arab Emirates had no change in their reserves in 2010 or in any year since 2006, the report said.

This trend has also given rise to doubts about the estimates, as analysts say it is unlikely new additions to reserves will exactly match production.

OPEC's 12 members pump more than a third of the world's oil. Several producers, including Saudi Arabia and Venezuela, have denied suggestions their reserves have been exaggerated.

(Additional reporting by Barbara Lewis and Ramin Mostafavi; Editing by Anthony Barker)

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