Cantor CEO: 'Off the fiscal cliff we go'

Part of complete coverage on

By Ramy Inocencio, for CNN

January 25, 2013 -- Updated 1453 GMT (2253 HKT)

STORY HIGHLIGHTS

• "U.S. fiscal cliff still coming" in form of failure to raise debt ceiling - Cantor Fitzgerald CEO


• More than 25% of CEOs feel world economy will get worse in 2013, says PwC survey


• U.S. House of Representatives passed short-term debt ceiling increase Jan. 23


• Lutnick: "Dumb lending" caused 2008 credit crisis

Hong Kong (CNN) -- The world thought the U.S. fiscal cliff deadline was December 31, but "the fiscal cliff is (still) coming", says Howard Lutnick, CEO of global financial services firm Cantor Fitzgerald.

"You're going to watch the U.S. do crazy, crazy things this year," Lutnick told CNN's Richard Quest at the World Economic Forum in Davos, Switzerland. "The Republican Party that was elected to control Congress... (is) going to cross their arms and they are not going to raise the debt ceiling ultimately unless they get severe spending cuts, and the Obama administration is not going to give it to them."

If Congress fails to act, the U.S. and the world economy will have a "dreadful" 2013, Lutnick said.

Following this week's PricewaterhouseCoopers survey of global CEO confidence, Lutnick appears to be one of the more than 25% who think the world economy is more likely to deteriorate in 2013.

Despite Lutnick's concerns, on January 23 the Republican-controlled House of Representatives did pass a bill that would allow the U.S. Treasury to borrow new money through mid-May. President Barack Obama has said he would not oppose the proposal if it reaches his desk, although he prefers a long-term debt ceiling increase.

Lutnick adds that to avoid a repeat of the 2008 financial crisis, regulators need to actually address issues that caused it.

"What caused the credit crisis was just dumb lending. When you lend money to people who can't pay you back, you go broke."

Looking ahead to 2013, Lutnick says the biggest risk to global growth is the U.S. hitting the debt ceiling -- whether in the short- or long-term.

"Off the fiscal cliff we go. We (the U.S.) are irrational and we are silly... we are dopey."

Part of complete coverage on

January 23, 2013 -- Updated 1308 GMT (2108 HKT)

Global policymakers, leading thinkers and key entrepreneurs are gathering in Davos. CNN brings you the latest news, views and musings live.

January 23, 2013 -- Updated 1040 GMT (1840 HKT)

As extreme weather events cost the global economy billions each year, the "neglected" risk of climate change seems to be rising to the top of the agenda, Andrew Steer writes.

January 23, 2013 -- Updated 1342 GMT (2142 HKT)

Economic empowerment offers a win-win scenario for Saudi Arabia and its women, Mounira Jamjoon writes.

January 23, 2013 -- Updated 1154 GMT (1954 HKT)

The recession in Europe is entering its fifth year and unemployment doesn't look like it will be returning to normal levels anytime soon.

January 22, 2013 -- Updated 1324 GMT (2124 HKT)

What has been made clear by current events and financial upheavals since 2008 is that the global economy has become truly that -- global.

The globe's greatest economic minds meet in Davos next week. With financial crises in the U.S. and Europe, CNN asks: What is your economic mood?

Many eurozone countries face dropping employment even as basic costs rise. But not everyone is suffering. Explore our interactive for more.

January 23, 2013 -- Updated 0551 GMT (1351 HKT)

In 2013, the greatest risk of conflict lies in the geopolitical struggle between Japan and China, according to Ian Bremmer of Eurasia Group.

January 21, 2013 -- Updated 1502 GMT (2302 HKT)

CNN's Richard Quest explores the topic that will be on every delegate's lips at the World Economic Forum in Davos this year.

January 21, 2013 -- Updated 1500 GMT (2300 HKT)

It was January 25, 2011, when the brisk winds of change from Tahrir Square swept through the Swiss Alpine village of Davos.

January 21, 2013 -- Updated 1357 GMT (2157 HKT)

The world's political and business elite will converge on Europe's highest-altitude town for the annual talk-shop that is the World Economic Forum.

January 21, 2013 -- Updated 1458 GMT (2258 HKT)

On July 1, 2013 the 27-nation European Union will become 28. But is the Adriatic country ready to join Europe's elite club?

January 22, 2013 -- Updated 1133 GMT (1933 HKT)

The great Davos talking shop is now up and running, with delegates of all levels of importance, shapes and nationalities putting the world to rights.

January 21, 2013 -- Updated 1404 GMT (2204 HKT)

After five years in crisis the eurozone's new leader has emerged. With influence reaching from the Arctic Circle to the Mediterranean Sea.

Read More..

Three residential projects in Orchard Boulevard expected to be completed by 2015

SINGAPORE: Three new high-end residential projects in the prime Orchard Boulevard area are expected to be completed over the next two years.

They include luxury development 21 AngulliaPark - a Hong Kong-based China Sonangol's first Singapore property project.

TwentyOne AngulliaPark and Skyline@Orchard Boulevard are expected to receive their temporary occupancy permits at around end 2013 and Boulevard Vue at around 2015.

Still, China Sonangol is confident that its targeted clientele will not be deterred by Singapore's latest round of cooling measures.

Luxury property developer S.C. Global's high-end development The Marq on Paterson Hill has been completed for more than a year, but nearly half of its units are still unsold.

But the developer of neighbouring project TwentyOne AngulliaPark is undaunted by the rising inventory levels in the Orchard area... even with the recent cooling measures in Singapore.

Hong Kong-based China Sonangol Group set up its Singapore property arm in 2008 and is currently developing two residential projects in Singapore.

The company says it may also be adding commercial properties to its portfolio.

Mr Alain Fanaie, CEO of China Sonangol Group, said: "We believe that they are going to be limited to time and there are temporary ones. We don't believe it is going to affect substantially our types of clients we are targeting."

The Sino-Angolan developer bought the the District 9 plot from Overseas Union Enterprise at S$283 million in December 2009.

Real estate analysts are expecting this development along Orchard Boulevard to fetch around S$,4000 to S$5,000 per square foot.

Mr Colin Tan, CEO of District 65 Pte Ltd, said: "We must always have a situation where there are more homes than people so that we can ease the population growth.That is something I believe will happen over time. So, I think this China developer is also predicting the same thing that this oversupply will ease as more and more super rich around the world come over."

Experts say this niche group of buyers are not chasing investment yields, but are attracted by the opportunity to own a freehold property in Singapore's prime Orchard Road shopping belt... much like how some investors are buying into the exclusivity of Sentosa Cove.

Mr Alan Cheong, Director of Research and Consultancy at Savills, said: "That's the traditional playground for the Indonesians in Orchard Road - Districts 9, 10, 11. Sentosa Cove - because this is a leasehold - natural although the quantum of investment is large, but it appeals more to the first generation businessman where money is easily made and easily lost."

Still, some analysts feel smaller units in business districts like Shenton Way may offer better rental yield and capital gains.

- CNA/de

Read More..

After threatening U.S., North Korea turns wrath on South

STORY HIGHLIGHTS

• NEW: U.S. envoy calls North Korean threats "troubling," "counterproductive" and "inflammatory"


• Pyongyang threatens "physical counter-measures" against South Korea


• It says it will act if South Korea takes a "direct part" in new U.N. sanctions


• A day earlier, the North said a new nuclear test would be part of its fight against the U.S.

Seoul, South Korea (CNN) -- "Troubling and counterproductive" rhetoric from North Korea is inflaming tensions on the Korean peninsula, but ultimately, "we will judge North Korea by its actions, not its words," the U.S. envoy to North Korea said Friday.

In its latest bout of saber-rattling, North Korea on Friday warned of the possibility of "strong physical counter-measures" against South Korea after the United Nations imposed tougher sanctions against the North earlier this week.

The threat against South Korea came a day after the North said it would carry out a new nuclear test and more long-range rocket launches as part of a new phase of confrontation with the United States.

The statement Friday from North Korea's Committee for Peaceful Reunification of the Fatherland said it would take action against South Korea if it "takes a direct part" in the U.N. sanctions.

The South Korean Unification Ministry declined to comment specifically on the new threats from Pyongyang. It reiterated its stance that North Korea should refrain from further provocations.

"Now is a moment when I think all parties in the six-party process, in particular here, North Korea, should turn their attention to how to peacefully and diplomatically address challenges that concern them," U.S. envoy Glyn Davies said from Beijing.

The two Koreas have technically still been at war since the all-out conflict between them in the 1950s. Smaller scale clashes have occurred since then, most recently in November 2010 when North Korea shelled a South Korean island, killing several people.

South Korea and the United States are often the focus of menacing language from Pyongyang, but the latest U.N. sanctions, a response to a long-range rocket launched last month by the North, appear to have prompted a ratcheting up of the threats.

A displeased Chinese editorial

At the same time, North Korea's strong words and vow to conduct a third nuclear test -- previous ones took place in 2006 and 2009 -- appear to be testing the patience of its main ally, China, which voted in favor of the U.N. sanctions this week.

An editorial published Friday in the English-language edition of the state-run Chinese newspaper Global Times struck a displeased tone over Pyongyang's comments a day earlier.

"China's role and position are clear when discussing the North Korea issue in the U.N. Security Council," the editorial said. "If North Korea engages in further nuclear tests, China will not hesitate to reduce its assistance to North Korea."

That prospect carries weight, since North Korea's impoverished economy relies heavily on China to stay afloat.

Global Times, whose editorial line often but not always reflects official Chinese policy, made it clear, though, that Beijing isn't about to cut Pyongyang loose.

"If the U.S., Japan and South Korea promote extreme U.N. sanctions on North Korea, China will resolutely stop them and force them to amend these draft resolutions," the editorial said.

Global Times noted that Beijing had put "a lot of effort into amendments" to the resolution approved by the Security Council this week.

"It seems that North Korea does not appreciate China's efforts," it said. "It criticized China without explicitly naming it in its statement yesterday."

The newspaper was referring to a passage in the controversial North Korean statement Thursday that said that "big countries, which are obliged to take the lead in building a fair world order, are abandoning without hesitation even elementary principle, under the influence of the U.S. arbitrary and high-handed practices."

The Global Times editorial also suggested that North Korea shouldn't rank too highly among China's priorities.

"China hopes for a stable peninsula, but it's not the end of the world if there's trouble there," it said, referring to the Korean peninsula that comprises North and South Korea. "This should be the baseline of China's position."

The Chinese Foreign Ministry on Thursday had urged North Korea and the West to "keep calm, remain cautious and refrain from any action that might escalate the situation in the region."

U.S. concerned but prepared

U.S. Secretary of Defense Leon Panetta said Thursday there are no "outward indications" that North Korea is about to conduct a nuclear test, but he admitted it would be hard to determine that in advance.

"They have the capability, frankly, to conduct these tests in a way that makes it very difficult to determine whether or not they are doing it," he said in a Pentagon press conference.

"We are very concerned with North Korea's continuing provocative behavior," Panetta said, but he added that the United States is "fully prepared" to deal with any provocations.

CNN's K.J. Kwon reported from Seoul, and Jethro Mullen reported and wrote from Hong Kong. CNN's Jaime A. FlorCruz in Beijing contributed to this report. Mark Morgenstein updated from Atlanta.

Read More..

Egyptians clash on revolution's 2nd anniversary

CAIRO Two years after Egypt's revolution began, the country's schism was on display Friday as the mainly liberal and secular opposition held giant rallies saying the goals of the pro-democracy uprising have not been met and denouncing Islamist President Mohammed Morsi.

Thousands of protesters filled Cairo's central Tahrir Square, where the January 2011 uprising was born, and the area outside the presidential palace in the city's Heliopolis district. Throughout these places, the iconic Arab Spring chants of "Erha! Erhal!" or "leave, leave" and "the people want to topple the regime" rang out.

The protesters are using the anniversary to stage a show of strength in a bid to force Morsi to amend a disputed constitution drafted by his Islamist allies. They are also demanding freedom of expression and the independence of the judiciary.

Clashes broke out for a second day on some sidestreets near Tahrir and police fired tear gas to disperse the young men throwing stones. There were also clashes in Alexandria.

Smaller crowds also gathered in central squares in the Mediterranean cities of Port Said as well as the Nile Delta city of Mehalla and Suez at the southern entrance of the Suez Canal.

Morsi's Muslim Brotherhood supporters opted not to mark the anniversary on the streets, arguing that they will honor the occasion with acts of public service, like treating the sick and planting trees, a tactic dismissed by the opposition as a public relations stunt ahead of parliamentary elections expected in April.

The Brotherhood's ultraconservative allies, known as Salafis, also said they would stay off the streets to avoid clashes.

Egyptian demonstrators wave the national flag and shout slogans during a protest in Alexandria on January 25, 2013 -- the second anniversary of the revolution that ousted Hosni Mubarak.

/

AFP/Getty Images

The anniversary of the revolution comes as Egypt faces a new phase in its upheaval: Ruling Islamists trying to push through their agenda, an opposition trying to break their lock on power, and an economy in free-fall that threatens to fuel public discontent.

At the heart of the country's political divide is a disputed constitution drafted by Morsi's allies without the participation of liberals or minority Christians, what the opposition sees as a bid by Morsi and his Muslim Brotherhood to take control of all state institutions and the president's meddling in the judiciary.

"I am asking everyone to go out and demonstrate to show that the revolution must be completed and that the revolution must continue," opposition leader Mohamed ElBaradei said in a televised message posted on his party's website. "There must be a constitution for all Egyptians. A constitution that every one of us sees himself in it," said the Nobel peace Laureate and former head of the U.N. nuclear watchdog, IAEA.

New militia-like groups opposed to the Islamists have declared in video messages posted on social networks this week their intention to defend the opposition protesters if attacked. At least 10 people were killed and hundreds injured when Morsi's supporters descended upon protesters camped outside his palace in December, starting clashes that lasted for hours with firebombs, swords, knifes and firearms.

Read More..

Alleged Doctor Killer Had Anger Issues, Friend Says

Jason Smith, the Philadelphia exterminator who police say showed up at the home of Dr. Melissa Ketunuti this week to solve her rodent problem before strangling her, was a problem child as an adolescent, a family friend told ABC News.

The family friend from many years ago, who asked for anonymity, said Smith, 36, had behavior and anger issues, and that he also liked to set things on fire.

After Smith and Ketunuti got into "some kind of argument" in Ketunuti's basement, he struck her, strangled her and set her on fire, according to police.

Smith reportedly admitted to the brutal slaying after hours of police questioning Wednesday night.
Smith told police that Ketunuti had "belittled" him, sources told ABC News affiliate WPVI-TV in Philadelphia

He snapped and apparently tried to hide any evidence by setting the 35-year-old doctor on fire with paper he lit in the kitchen, the station reported.

Philadelphia Police Department/AP Photo

Pa. Doctor Killing: Person of Interest in Custody Watch Video

Philadelphia Doctor's Murder Leaves Police Baffled Watch Video

"People like Mr. Smith basically walk around with a huge chip on their shoulder, and they feel so inadequate and so insecure that any perceived belittlement of them will set them off," ABC News consultant and former FBI agent Brad Garrett said.

Capt. James Clark of the Philadelphia Police Department said Smith's mood and clarity varied during his alleged confession.

"At some points, he was solemn. At other points, it was like he was in a fog," Clark said at a news conference.

Smith has been charged with murder, arson, abuse of a corpse and risking a catastrophe.

Ori Feibush, who owns a coffee shop near Ketunuti's street, said he and police pored over hours of surveillance video until they saw Ketunuti walking home from doing errands, with Smith steps behind her.

"Forty-five minutes later, we see this same guy walking past, but [he] looks a little more disheveled and he's got gloves on," Feibush told ABC News.

Police say that after the slaying, Smith circled Ketunuti's block twice, before heading off to another job.

Ketunuti was a doctor at the Children's Hospital of Philadelphia and had lived alone in the Graduate Hospital neighborhood of the city for about three years. Her family released a statement saying they are "devastated by this senseless act of violence."

"Melissa's friends from childhood, college, residency and elsewhere remember her many kindnesses, even during long hours, as well as her zest for life: traveling, running and spending time with friends and family," the statement said. "Melissa was a source of joy to everyone in her life. Her passing has left an enormous gap in our lives."

Read More..

Neanderthal cloning? Pure fantasy

A display of a reconstruction of a Neanderthal man and boy at the Museum for Prehistory in Eyzies-de-Tayac, France.

STORY HIGHLIGHTS

• Arthur Caplan: It would be unethical to try and clone a Neanderthal baby


• Caplan: Downsides include a good chance of producing a baby that is seriously deformed


• He says the future belongs to what we can do to genetically engineer and control microbes


• Caplan: Microbes can make clean fuel, suck up carbon dioxide, clean fat out of arteries

Editor's note: Arthur Caplan is the Drs. William F and Virginia Connolly Mitty professor and director of the Division of Bioethics at New York University Langone Medical Center.

(CNN) -- So now we know -- there won't be a Neanderthal moving into your neighborhood.

Despite a lot of frenzied attention to the intentionally provocative suggestion by a renowned Harvard scientist that new genetic technology makes it possible to splice together a complete set of Neanderthal genes, find an adventurous surrogate mother and use cloning to gin up a Neanderthal baby -- it ain't gonna happen anytime soon.

Nor should it. But there are plenty of other things in the works involving genetic engineering that do merit serious ethical discussion at the national and international levels.

Arthur Caplan

Some thought that the Harvard scientist, George Church, was getting ready to put out an ad seeking volunteer surrogate moms to bear a 35,000-year-old, long-extinct Neanderthal baby. Church had to walk his comments back and note that he was just speculating, not incubating.

Still cloning carries so much mystery and Hollywood glamour thanks to movies such as "Jurassic Park," "The Boys From Brazil" and "Never Let Me Go" that a two-day eruption of the pros and cons of making Neanderthals ensued. That was not necessary. It would be unethical to try and clone a Neanderthal baby.

Why? Because there is no obvious reason to do so. There is no pressing need or remarkable benefit to undertaking such a project. At best it might shed some light on the biology and behavior of a distant ancestor. At worst it would be nothing more than the ultimate reality television show exploitation: An "Octomom"-like surrogate raises a caveman child -- tune in next week to see what her new boyfriend thinks when she tells him that there is a tiny addition in her life and he carries a small club and a tiny piece of flint to sleep with him.

The downsides of trying to clone a Neanderthal include a good chance of killing it, producing a baby that is seriously deformed, producing a baby that lacks immunity to infectious diseases and foods that we have gotten used to, an inability to know what environment to create to permit the child to flourish and a complete lack of understanding of what sort of behavior is "normal" or "appropriate" for such a long-extinct cousin hominid of ours.

When weighed against the risks and the harm that most likely would be done, it would take a mighty big guarantee of benefit to justify this cloning experiment. I am willing to venture that the possible benefit will never, ever reach the point where this list of horrible likely downsides could be overcome.

Even justifying trying to resurrect a woolly mammoth, or a mastodon, or the dodo bird or any other extinct animal gets ethically thorny. How many failures would be acceptable to get one viable mastodon? Where would the animal live? What would we feed it? Who would protect it from poachers, gawkers and treasure hunters? It is not so simple to take a long dead species, make enough of them so they don't die of isolation and lack of social stimulation and then find an environment that is close enough and safe enough compared with that which they once roamed.

In any event the most interesting aspects of genetic engineering do not involve making humans or Neanderthals or mammoths. They involve ginning up microbes to do things that we really need doing such as making clean fuel, sucking up carbon dioxide, cleaning fat out of our arteries, giving us a lot more immunity to nasty bacteria and viruses and helping us make plastics and chemicals more efficiently and cheaply.

In trying to make these kinds of microbes, you can kill all you want without fear of ethical condemnation. And if the new bug does not like the environment in which it has to exist to live well, that will be just too darn bad.

The ethical challenge of this kind of synthetic biology is that it can be used by bad guys for bad purposes. Biological weapons can be ginned up and microbes created that only infect people with certain genes that commonly associate with racial or ethnic groups.

Rather than worry about what will happen to real estate values should a new crop of "Flintstones" move in down the street, our public officials, religious groups and ethicists need to get serious about how much regulation the genetic engineering of microbes needs, how can we detect what terrorists might try to use, what sort of controls do we need to prevent accidents and who is going to pay if a bug turns out to cause more harm than good.

We love to think that the key to tomorrow lies in what humanity can be designed or empowered to do. Thus, the fascination with human cloning. In reality, at least for a long time to come, the future belongs to what we can do to design and control microbes. That is admittedly duller, but it is far better to follow a story that is true than one such as Neanderthal cloning that is pure, speculative fantasy.

Follow @CNNOpinion on Twitter.

Join us at Facebook/CNNOpinion.

The opinions expressed in this commentary are solely those of Arthur Caplan.

Read More..

Private home prices expected to be relatively stable: analyst

SINGAPORE: Colliers International said private home prices are expected to remain relatively stable with marginal downside this year, thanks to the government's latest cooling measures imposed in January 2013.

In the face of mounting supply, rents are also expected to weaken this year.

According to a report by Colliers International, average monthly gross rents of luxury/super-luxury homes are expected to decline by up to a maximum of 10 per cent in 2013.

Meanwhile, Colliers said Singapore's residential property market saw a record breaking year in 2012.

This was despite noticeably subdued market activity in the fourth quarter of 2012, following recent property cooling measures.

Colliers said the home buying frenzy which started in January last year brought developers' sales volumes for 2012 to a record high as early as September.

This was boosted by a record number of new units released by developers as well.

4,283 new units were sold in the fourth quarter of last year, raising the primary sales volume to 22,127 units for the whole of 2012.

This breaks the previous record of 16,292 new units sold in 2010 by 35.8 per cent.

Meanwhile, developers launched a total of 21,511 new private homes last year, surpassing the previous highs of 17,710 units recorded in 2011 by 21.5 per cent.

But on a quarterly basis, developer launches and sales volumes dipped below 5,000 units last quarter due to the traditional year-end festive and holiday season and a weaker sentiment.

The number of new units released fell from an average of 6,023 units for the first three quarters to 3,441 in the last quarter of 2012.

Similarly, developer sales in the three months ending December 2012 fell 27.6 per cent on-quarter to 4,238 units from 5,916 units sold from July to September.

Meanwhile, mass market projects located in the Outside Central Region (OCR) dominated activities in the primary market in the last three months of 2012, contributing to 51.0 per cent of developer launches and 63.1 per cent of developer sales during this period.

Homes in the Rest of the Central region (RCR) contributed 31.5 per cent of island-wide launches and 22.8 per cent of developer sales in three months ending December 2012.

The Colliers report also stated that the narrowing price gap between mid-tier and mass market homes located in suburban areas saw home-buyers committing to 975 new units in 4Q2012, up 19.8 per cent on quarter from the 814 units sold in the third quarter of last year.

Launches and sales of new homes in the Core Central Region (CCR) meanwhile accounted for 17.5 per cent and 14.1 per cent of island-wide launch and sales volumes in 4Q2012.

Developer launches in that segment also slid 2.4 per cent from the third quarter while sales dropped 6.5 per cent on-quarter during the October to December period.

All three market regions (OCR, RCR and CCR) experienced higher rates of price growth in 2012, although the pace of price increase varied across the different regions.

- CNA/xq

Read More..

North Korea makes new threats against U.S.

STORY HIGHLIGHTS

• NEW: North Korea is upset by a recent U.N. security council resolution, an analyst says


• Pyongyang says it plans a new nuclear test and further long-range rocket launches


• These are part of an "all-out action" targeting the U.S., it says


• North Korea has conducted two previous nuclear tests, in 2006 and 2009

Seoul, South Korea (CNN) -- North Korea said Thursday that it plans to carry out a new nuclear test and more long-range rocket launches, all of which it said are a part of a new phase of confrontation with the United States.

The North's National Defense Commission said the moves would feed into an "upcoming all-out action" that would target the United States, "the sworn enemy of the Korean people."

Read more: U.N. Security Council slams North Korea, expands sanctions

Carried by the state media, the comments are the latest defiant flourish from the reclusive North Korean regime, whose young leader Kim Jong Un has upheld his father's policy of pursuing a military deterrent and shrugging off international pressure.

The defense commission statement follows a United Nations Security Council resolution on Tuesday that the United States pushed for, condemning a recent recent rocket launch by North Korea and expanded existing sanctions.

Read more: North Korea silences doubters, raises fears with rocket launch

The North's angry statement "should have been the expected outcome" from the U.N. decision, said Daniel Pinkston, senior analyst for the International Crisis Group covering Northeast Asia.

"I think they are completely outraged and insulted by it," he said.

Read more: N. Korea's launch causes worries about nukes, Iran and the Pacific

North Korea, which often issues bellicose statements in its state media, said Thursday that it rejected all Security Council resolutions concerning it.

It described this week's resolution as "the most dangerous phase of the hostile policy toward the DPRK," using the abbreviated version of its official name, the Democratic People's Republic of Korea.

Read more: U.S. official: North Korea likely deceived U.S., allies before launching rocket

Analyst: Threat meant as a deterrence

The threats toward the United States, a constant theme in the North's propaganda, have more to do with deterrence than a desire for full conflict, Pinkston said.

"I don't believe they have the capability, the intention or the will to invade or destroy the United States," he said. "They wish to deter interference from the U.S. or any outside powers."

Read more: North Korea's rocket launches cost $1.3 billion

North Korea's successful rocket launch last month nonetheless changed the strategic calculations for the United States, showing that the North's missile program is advancing despite an array of heavy sanctions imposed on it.

Analysts say it still has a lot of work to do to master the technology necessary to mount a nuclear warhead on missile or accurately target it.

Read more: South Korean officials: North Korean rocket could hit U.S. mainland

At the same time, Pyongyang has been hinting for a while that a new nuclear test could be in the cards.

Just before the North sent out its latest hostile statement Thursday, a U.S. State Department official was telling reporters in Seoul that Washington hoped that Pyongyang wouldn't go ahead.

Read more: Huge crowds gather in North Korean capital to celebrate rocket launch

"We think that that would be a mistake, obviously," said Glyn Davies, the U.S. special envoy on North Korea. "We call on North Korea, as does the entire international community, not to engage in any further provocations."

North Korea has carried out two previous nuclear tests, in 2006 and 2009, both of which were condemned by the U.N.

Pyongyang didn't say Thursday when exactly it would carry out a third test, but it could happen "at any time," according to Pinkston.

He said that it was hard for anybody outside the North Korean nuclear sector to know if the country is technically ready to carry out the test, but that politically, "it seems an appropriate time."

Demands unlikely to sway North

South Korean defense officials said last year that they believed the North had been in a position to carry out a new test whenever leaders in Pyongyang gave the green light.

North Korea's nuclear program is "an element of threat to peace not only for Northeast Asia but also for the world," Park Soo-jin, deputy spokeswoman for the South Korean Unification Ministry said Thursday.

"North Korea should immediately stop its nuclear test and other provocation and should choose a different path by cooperating with the international community," Park said.

That appears unlikely at this stage, though.

After a failed long-range rocket launch in April, North Korea ignored international condemnation and carried out a second attempt last month. That one succeeded in putting a satellite in orbit, Pyongyang's stated objective.

But the launch was widely considered to be a test of ballistic missile technology. And it remains unclear if the satellite, which the North insists is for peaceful purposes, is functional.

Both North Korea's previous nuclear tests took place weeks or months after long-range rocket launches.

Those tests were carried out under the rule Kim Jong Il, the father of the current leader, and the man who channeled huge amounts of money into North Korea's nuclear and missile development programs.

Kim Jong Il died in December 2011 after 17 years in power, during which the North Korean people became increasingly impoverished and malnourished.

Economically, the country relies heavily on trade with its major ally, China.

CNN's K.J. Kwon reported from Seoul, and Jethro Mullen from Hong Kong. CNN's David Hawley in Seoul contributed to this report.

Read More..

North Korea planning "high-level" nuclear test

Updated at 7:15 a.m. Eastern

SEOUL, South Korea North Korea's top military body warned Thursday that the regime is poised to conduct a nuclear test in response to U.N. punishment, and made clear that its long-range rockets are designed to carry not only satellites but also warheads aimed at striking the United States.

19 Photos

North Korea's long-range rocket launch

The National Defense Commission rejected Tuesday's U.N. Security Council resolution condemning North Korea's long-range rocket launch in December as a banned missile activity and expanding sanctions against the regime. The commission reaffirmed in its declaration that the launch was a peaceful bid to send a satellite into space, but also said the country's rocket launches have a military purpose: to strike and attack the United States.

The commission pledged to keep launching satellites and rockets and to conduct a "high-level" nuclear test as part of defensive measures against the U.S.

"We do not hide that a variety of satellites and long-range rockets which will be launched by the DPRK one after another and a nuclear test of higher level which will be carried out by it in the upcoming all-out action, a new phase of the anti-U.S. struggle that has lasted century after century, will target against the U.S., the sworn enemy of the Korean people," the commission said, referring to North Korea by its official name, the Democratic People's Republic of Korea.

"Settling accounts with the U.S. needs to be done with force, not with words, as it regards jungle law as the rule of its survival," the commission said.

The U.S. State Department had no immediate response to Thursday's statement. On Wednesday, after Pyongyang's foreign ministry issued its own angry response to the Security Council decision and said the North would bolster its "nuclear deterrence," U.S. envoy to North Korea Glyn Davies urged restraint.

"It is important that they heed the voice of the international community," Davies said Wednesday in South Korea. He was meeting with government officials on a trip that also will take him to China and Japan to discuss how to move forward on North Korea relations.

Davies said that if North Korea begins "to take concrete steps to indicate their interest in returning to diplomacy, they may find in their negotiating partners willing partners in that process."

CBS News' Shannon Van Sant says reaction from North Korea's longtime ally China in the wake of threats was predictably muted. China's Foreign Ministry urged all parties "to remain calm," and called for a resumption of the long-stalled six-party talks.

While China could play a key role in pressuring the North to give up its efforts for a nuclear weapon, it is unlikely to do so, says Van Sant. China is keen to avoid instability and any influx of refugees along its northeastern border. Beijing also has significant trade ties with Pyongyang, and would be reluctant to endanger that relationship.

North Korea carried out underground nuclear tests in 2006 and 2009, both times just weeks after receiving U.N. sanctions for launching long-range rockets it claimed were peaceful bids to send satellites into space.

At a military parade last April, North Korea showed off what appeared to be an intercontinental ballistic missile.

Experts say the North Koreans must conduct further tests of its atomic devices and make them smaller before they can be mounted as nuclear warheads onto long-range missiles.

Though it insists its efforts to launch a satellite are peaceful, North Korea also claims the right to build nuclear weapons as a defense against the United States, which stations more than 28,000 troops in South Korea. The adversaries fought in the three-year Korean War, which ended in a truce in 1953 and left the Korean Peninsula divided by the world's most heavily fortified demilitarized zone.

North Korea has enough weaponized plutonium for about four to eight bombs, according to nuclear scientist Siegfried Hecker, who visited North Korea's nuclear complex in 2010. In 2009, Pyongyang also declared that it would begin enriching uranium, which would give North Korea a second way to make atomic weapons.

Read More..

N. Korea Vows More Nuke Tests Targeting U.S.

In a bellicose statement singling out the United States as the "sworn enemy" of the Korean people, North Korea today announced plans for a third nuclear test and continued rocket launches.

The move is seen as a disappointment to those who hoped the country's new leader, Kim Jong-Un, might take a less aggressive path than his predecessor and father, Kim Jong-il.

It is also seen as a direct challenge to President Obama and South Korea's newly elected president, Park Geun-hye, who takes office next month.

The statement from North Korea's National Defense Commission read:

"Settling accounts with the U.S. needs to be done with force, not with words as it regards jungle law as the rule of its survival."

The renewed threats come in response to the U.S. backed resolution tightening sanctions against North Korea after its December rocket launch.

At that time, North Korea repeatedly insisted that the launch was simply part of its peaceful space program. The recent statement made no mention of that.

It read: "We are not disguising the fact that the various satellites and long-range rockets that we will fire and the high-level nuclear test we will carry out are targeted at the United States."

South Korean officials analyzed debris from the December launch that, they say, indicates North Korea built and tested crucial components for a missile that can fly further than 6,200 miles.

Analysts say that preparations at the Pungyee test site in northeastern North Korea are underway and that a new underground test could take place on short notice.

Within the international monitoring community it is not believed that North Korea currently has the capability to launch a long-range rocket with the capacity to reach the United States or the technology to mount a nuclear warhead on a long-range missile. But the U.S. is not pleased with North Korea's plans. Glyn Davies, the top U.S. envoy to the region, said in Seoul, "We hope they don't do it. We call on them not to do it."

China, North Korea's main ally in the region, is also urging restraint. China backed the U.S. resolution at the United Nations and today the Foreign Ministry cautioned North Korea not to take further steps to increase tension.

Read More..