Solar Storm Possibilities Detected

A colossal sunspot on the surface of the sun is large enough to swallow six Earths whole, and could trigger solar flares this week, NASA scientists say.

The giant sunspot was captured on camera by NASA's Solar Dynamics Observatory as it swelled to enormous proportions over the 48 hours spanning Tuesday and Wednesday (Feb. 19 and 20). SDO is one of several spacecraft that constantly monitor the sun's space weather environment.

"It has grown to over six Earth diameters across, but its full extent is hard to judge since the spot lies on a sphere, not a flat disk," wrote NASA spokeswoman Karen Fox, of the agency's Goddard Space Flight Center in Greenbelt, Md., in an image description.

The sunspot region is actually a collection of dark blemishes on the surface of the sun that evolved rapidly over the last two days. Sunspots form from shifting magnetic fields at the sun's surface, and are actually cooler than their surrounding solar material.

According to Fox, some of the intense magnetic fields in the sunspot region are pointing in opposite directions, making it ripe for solar activity.

"This is a fairly unstable configuration that scientists know can lead to eruptions of radiation on the sun called solar flares," Fox explained.

The sun is currently in the midst of an active phase of its 11-year solar weather cycle and is expected to reach peak activity sometime this year. The current sun weather cycle is known as Solar Cycle 24.

NASA's Solar Dynamics Observatory launched in 2010 and is just one of a fleet of spacecraft keeping close watch on the sun for signs of solar flares, eruptions and other space weather events.

Global Economy Worsening

TOKYO, Feb 19 – The yen resumed falling yesterday after Japan signaled it would push ahead with expansionist monetary policies having escaped criticism from the world’s 20 biggest economies at the weekend.

Industrial metals also dipped and European shares were soft on lingering worries about the economic outlook, especially for the euro zone. While the risk of an inconclusive outcome in Italy’s forthcoming election added to investor concerns.

However, activity was curtailed by the closure of markets in the United States for the Presidents’ Day holiday.

The yen, which has dropped 20 per cent against the dollar since mid-November, fell further after financial leaders from the G20 promised not to devalue their currencies to boost exports and avoided singling out Japan for any direct criticism.

The dollar rose 0.5 per cent to 93.95 yen, near a 33-month peak of 94.47 yen set a week ago. The euro added 0.3 per cent to 125.40 yen, to be midway between Friday’s two-week low of 122.90 and a 34-month high of 127.71 yen hit earlier this month.

Strategists said the yen was likely to stay weak, though its decline could lose momentum until it becomes clear who will be taking the helm at the Bank of Japan when the current governor steps down on March 19.

“The yen probably will weaken a little further in anticipation of more aggressive easing under a new leadership team at the Bank of Japan,” said Julian Jessop, chief global economist at Capital Economics.

Japan’s Prime Minister Shinzo Abe is poised to nominate the new governor in the next few days. Sources have told Reuters that former financial bureaucrat Toshiro Muto, considered likely to be less radical than other candidates, was leading the field.

Meanwhile the euro dipped slightly against the dollar when European Central Bank president Mario Draghi said the currency’s recent gains made any rise in inflation less likely and added that he had yet to see any improvement in the euro zone economy.

Speaking before the European Parliament, Draghi said the euro’s exchange rate was not a policy target but was important for growth and stability, adding that appreciation of the euro “is a risk”.

The comments left the euro down 0.2 per cent at US$1.3334 (RM4.132).

Elsewhere in the currency market, sterling hit a seven-month low against the dollar, after a key policymaker made comments about the need for further weakness and recent poor data which has kept alive worries of another British recession.

Sterling fell 0.25 per cent to US$1.5476 having earlier touched US$1.5438, its lowest since July 13.

DATA LOOMS

A big week for data on the outlook for the world’s economy weighed on other riskier asset markets following the recent dire fourth-quarter growth numbers for the euro zone and Japan, along with Friday’s soft US manufacturing figures.

In European markets, attention is focused on the euro area Purchasing Managers’ Indexes for February and German sentiment indices due later in the week which could affect hopes for a recovery this year.

Analysts expect Thursday’s euro area flash PMI indices, which offer pointers to economic activity around six months out, to show growth stabilizing across the recession-hit region, leaving intact hopes for a recovery in the second half of 2013.

Concerns over an inconclusive outcome in the Italian election on Sunday and yesterday have added to the weaker sentiment as a fragmented parliament could hamper a future government’s efforts to reform the struggling economy.

The worries about the outlook for Italy were encouraging investors back into safe-haven German government bonds yesterday, with 10-year Bund yields easing 3.5 basis points to be around 1.63 per cent.

“Political uncertainty will keep Bunds well bid this week,” ING rate strategist Alessandro Giansanti said, adding that only better than expected economic data could create selling pressure on German debt in the near term.

Italian 10-year yields were 4 basis points higher on the day at 4.41 per cent. 

Intel Israel Business Is Going Good

For those who are anti-Semitics, do you own any Intel based computer? So now do you still wanted to boycott Israel?

TEL AVIV (Reuters) - Intel's Israeli subsidiary more than doubled its exports in 2012 to $4.6 billion and is seeking to bring manufacturing of the company's next generation of chips to Israel.

Intel's exports, which rose 109 percent from $2.2 billion in 2011, were boosted by the start of production of chips using 22 nanometer technology at its Kiryat Gat plant in southern Israel, which is now operating at full capacity.

Intel, the world's No. 1 chipmaker, will build chips over the next two to three years with features measuring just 14 nm in Ireland and the United States but the company is already thinking about where it will produce 10 nm chips. The narrower the features, the more transistors can fit on a single chip, improving performance. Intel Israel executives said they would like to see 10 nm production in Israel.

"The average life of a technology is two to six years so we need to be busy to get the next technology, 10 nanometer," Maxine Fassberg, general manager of Intel Israel, told a news conference on Sunday. "We need to get a decision far enough in advance to be able to upgrade the plant. So for 10 nanometer, decisions will need to be made this year."

Fassberg said upgrading the existing Fab 28 plant in Israel would require a lower investment than building a new plant but would still involve several billion dollars.

Intel Israel has in the past received government grants to help with the costs of its investments and Fassberg told Reuters the company was "constantly in talks with the government".

Intel has invested $10.5 billion in Israel in the past decade, including $1.1 billion in 2012, and has received $1.3 billion in government grants. The company accounted for 20 percent of Israel's high-tech exports last year and 10 percent of its industrial exports, excluding diamonds.

"If Intel had not increased its exports, Israel's high-tech exports would have shrunk by 10 percent," Intel Israel President Mooly Eden said.

Most of Intel Israel's exports - $3.5 billion - came from its chip manufacturing activities.

Intel is Israel's largest private employer, with 8,542 workers, up 10 percent from 2011. The company has two plants - in Jerusalem and Kiryat Gat - as well as four research and development centers.

Eden said Intel was also committed to investing in start-ups, having invested in 64 Israeli companies since 1996. In July its global investment arm Intel Capital said it would expand its operations in Israel.