NPR 2010-05-21

We're seeing another steep slide in US stocks and in other major market over fears Europe's debt troubles could undermine global economic recovery. At last check, the Dow was down more than 330 points at 10,109. NASDAQ was down 84 at 2,213. S&P 500 down 37 at 1,075. The S&P 500 dropped 10% from a height in April. Analyst 1 Alec Young of Standard & Poor's says the euro is clearly under a lot of pressure.

"There's real concern that the euro as it's currently constituted may have to be broken up, that the other currency may not survive, and because it is the world's second biggest, most popular currency behind the dollar, you know, that's a pretty significant shock."

While Wall Street grapples with the third consecutive 2 day of losses, President Obama's campaign to revamp the financial regulatory system is entering the next phase. Today, the Senate voted to end debate. That could mean a final vote later today or tomorrow on the biggest overhaul 3 of financial regulation since the 1930s. We're expecting here more details from President Obama within minutes.

The Environmental Protection Agency is ordering BP to find a less toxic 4 chemical to break up oil gushing 5 from its offshore 6 well in the Gulf 7 of Mexico. Eileen Fleming reports from member station WWNO that the order applies to chemicals applied 8 above and below the water.

The EPA says BP has 24 hours to find an alternative dispersant and 72 hours to start using it. BP has been spraying the surface spill with dispersants since it developed about a month ago. BP executive Doug Suttles says that as underwater robots proved unable to stop the leak, the company reached out for ideas.

"Subsea dispersants was an idea submitted by an email to us, actually quite some time back. It was about day five or six of the event, and we've been obviously using that technique since."

Dispersants had never been applied directly on oil spilling underwater and a mile below the surface. The EPA and Coast Guard had approved the plan but now want different pre-approved chemicals used and extensive environmental testing. For NPR News, I'm Eileen Fleming in New Orleans.

Turkish state media is reporting another attack on suspected Kurdish rebels in northern Iraq. The airstrike reportedly involved about 20 Turkish warplanes. Authorities say it's still uncertain if there were casualties in this incident. The Turkish government says rebels often use northern Iraq as a staging ground for attacks on Turkey.

YouTube has become the latest target in Pakistan's bid to block Internet content that, the government says, are blasphemous 9 to Muslims. It shut down the video-sharing Web site hours after closing off access to Facebook. The government criticized Facebook because of an online competition to draw Islam's Prophet Mohammed.

An update from Wall Street. Dow's down 376 points at 10,068.

This is NPR.

A day after South Korea reported that one of its ships was sunk by a North Korean torpedo 10, Defense 11 Secretary Robert Gates says the US military is working with South Korean officials on that matter. NPR's Tom Bowman has details.

Secretary Gates told reporters at the Pentagon that he accepts the findings of the South Korean investigation 12 that a North Korean torpedo destroyed the warship 13, killing 14 46 sailors. Both Gates and Joint 15 Chiefs Chairman Admiral Mike Mullen declined to answer whether the attack was an act of war. Mullen replied "We've said all we want to say on this right now." Neither of them would say a word of the possible options being discussed with the South Koreans, and Admiral Mullen said US forces in South Korea and offshore, some 28,000, have not been placed on a higher alert. Meanwhile, the State Department spokesman, PJ Crowley, told reporters there will definitely be consequences for what North Korea has done. Tom Bowman, NPR News, the Pentagon.

Members of Afghanistan's opposition 16 including the Taliban have been meeting in the Maldives this week, but the Afghan government says it does not believe any active Taliban militants 17 are at that meeting. A spokesman for Prime Minister Hamid Karzai says Kabul did not send delegates. Karzai plans to host a national conference later this month to promote peace negotiations 18 with insurgents 19.

In Thailand, order is returning to parts of the capital, Bangkok, that were under siege for some two months before the military's latest crackdown. However, the capital and 23 other provinces will remain under a nighttime curfew for three more days.

In the US, the number of people filing new claims unexpectedly rose last week by the largest amount in three months. It's up 25,000 to 471,000.