President Barack Obama welcomed China's announcement Saturday that it will allow a more flexible exchange rate for its currency

BEIJING  President Barack Obama welcomed China’s announcement Saturday that it will allow a more flexible exchange rate for its currency, saying it would help protect the economic recovery.The announcement by China’s central bank suggested a possible break from the yuan’s two-year peg to the U.S. dollar – a source of friction between the two countries – but ruled out any large-scale appreciation.The People’s Bank of China mentioned no specific policy changes, though markets will be watched closely Monday for the announcement’s effects. Chinese officials have said all along that reforms of the yuan, also known as the renminbi, or “people’s money,” will be gradual.”It is desirable to proceed further with reform of the RMB exchange rate regime and increase the RMB exchange rate flexibility,” the central bank said in a statement posted on its website.

The announcement, timed just before President Hu Jintao’s trip to the G-20 summit in Toronto, Canada, follows warnings from Beijing earlier this week against making its currency policies a main focus of the meeting.Beijing kept the yuan frozen against the dollar to help Chinese manufacturers compete amid weak global demand. It faces pressure from the United States and other trading partners who contend the yuan is undervalued.

“China’s decision to increase the flexibility of its exchange rate is a constructive step that can help safeguard the recovery and contribute to a more balanced global economy,” Obama said in a statement.U.S. Treasury Secretary Timothy Geithner called the move an “important step.””But the test will be how far and how fast they let the currency appreciate,” he said.The European Commission also welcomed the decision, saying it would help achieve more sustainable global economic growth, reduce trade imbalances and strengthen the stability of the international financial system.

But the announcement is unlikely to satisfy critics in the U.S. Congress, who argue that an undervalued Chinese currency gives China’s exporters an unfair advantage, costing millions of American jobs.”This vague and limited statement of intentions is China’s typical response to pressure,” Sen. Charles Schumer, a New York Democrat, said in a statement. “Until there is more specific information about how quickly it will let its currency appreciate and by how much, we can have no good feeling that the Chinese will start playing by the rules.”

Signs that a global economic recovery has taken hold have prompted speculation that China would begin letting the yuan resume a gradual appreciation against the U.S. dollar that began in 2005 but was halted abruptly in 2008 as the global financial crisis took effect.Since then, the yuan’s value has remained at roughly 6.83 to $1, although it is formally pegged to a basket of currencies that includes the U.S. dollar.

“It definitely sounds significant. They’re saying they’re going to press forward,” Stephen Green, an economist at Standard Chartered Bank in Shanghai, said of Saturday’s statement.”We didn’t ever think they were going to do a big one-off, so it looks like that’s not going to happen,” he said. “We’re going to see more movement around a basically stable exchange rate until the global economy is basically healthier. The proof will be in the pudding on Monday.”

Chinese officials have warned that any adjustment to the exchange rate is not other countries’ concern.The director of the international department of the People’s Bank of China, Zhang Tao, told a news conference Friday that Chinese leaders will not discuss the yuan at the G-20 summit.

Saturday’s statement pointed to economic growth both inside and outside China as a reason for the increase in exchange rate flexibility.”The global economy is gradually recovering. The recovery and upturn of the Chinese economy has become more solid with the enhanced economic stability,” the central bank said.However, it indicated no major policy changes, adding: “The exchange rate floating bands will remain the same as previously announced in the interbank foreign exchange market.”(AP)

Arizona border businesses lose key Mexican clients / (Smash The Border)

Adalberto Lopez’ family-run musical instrument shop in the bustling Arizona border city of Nogales sells guitars and accordions to foot-stomping banda musicians and mariachis who cross up from Mexico to shop.But in mid-May, the music stopped in the store. Mexican customers who account for almost all its sales stayed away as part of a two-day boycott to repudiate Arizona’s tough new immigration law.”The street and my shop were empty,” said Lopez, of the “Day Without a Mexican” protest on May 14 and 15.The law may make life more difficult for border retailers already hobbled by the recession and long border crossing waits, and Arizona’s economy could take a hit from lost business.

But on a larger scale, experts believe the overall trade between the United States and Mexico, valued at around $1 billion a day, is unlikely to suffer from this latest wrinkle in the often strained U.S.-Mexico relations.Passed last month, the law requires state and local police to check the immigration status of those they reasonably suspect are in the country illegally. Opponents on both sides of the border say it is a mandate for racial profiling.

Mexico President Felipe Calderon sharply criticized it during a visit to Washington last week. Standing beside U.S. President Barack Obama, Calderon said Mexican immigrants make a “significant contribution to the economy and society of the United States” but many face discrimination “as in Arizona.”

The measure has triggered legal challenges, convention cancellations, and, most recently, snubs by some of the 65,000 Mexicans who cross into the desert state each day to work, visit family and shop, spending $7.4 million, according to a recent University of Arizona study.”The people in Mexico have been fairly insulted by this legislation, as have most Latinos in the state of Arizona,” said Bruce Bracker, president of the Downtown Merchants Association in Nogales, who said local shops’ sales fell 40 percent to 60 percent as Mexicans stayed home during the boycott.

NO TRADE SLOWDOWN

Obama has spoken out against the law, which is backed by a majority of Americans.The United States, Mexico and Canada created the world’s largest free trade block with the North American Free Trade Agreement in 1994, although the U.S.-Mexico trade relationship has been jarred by job losses and charges of protectionism.Trade between the two neighbors is already ruffled by a trucking row. Mexico is waiting for the United States to let its trucks circulate again on U.S. roads, ending a spat that led it to slap duties on $2.4 billion in U.S. goods.

But analysts and customs brokers say the furor over the state law is unlikely to disrupt the $21 billion annual flow in goods over the Arizona-Mexico border, between clients scattered across northwest Mexico and the United States.”Once you work so hard to get a business enterprise up and operating, how much are you willing to reverse that based upon something that someone relatively remote from you does?” said Rick Van Schoik, director of the North American Center for Transborder Studies at Arizona State University in Phoenix.

“Life goes on regardless of the newsy political conversation that’s going on,” he added.Customs brokers in Nogales, meanwhile, who clear goods ranging from semi-conductor chips to fresh produce headed over the border by truck and freight train, said their clients were more concerned about the sputtering economic recovery than the migrant law, which is due to come into effect on July 29.

“The economy is one thing, but that’s an ongoing situation for everyone,” said Nogales customs broker Terry Shannon Jr.”But I have not had any dialogue with my clients at this point where they have called me up and point-blank (asked) ‘What do you think of the law? Where are we going with this?'”

‘ONE MORE OBSTACLE’

But in cross-border retail, where sentiment plays a role in shaping Mexican shoppers’ spending, the outlook is more vexed, business groups say.Informal Mexican boycotts in protest at the measure have taken hold in other cities bordering Arizona, among them San Luis Rio Colorado, south of Yuma, where some traders are opting to head to California and Nevada to buy appliances and cars.”They’re looking for other options,” said Juan Manuel Villarreal, president of the city’s chamber of commerce, adding that it is still too early to quantify the impact.Authorities in Nogales  the state’s principal trade gateway to Mexico  were unable to place a dollar value on the recent boycott by Mexican shoppers, whose spending accounts for nearly a quarter of all jobs in surrounding Santa Cruz County, and almost half of taxable sales.

But Olivia Ainza-Kramer, president of the Nogales-Santa Cruz County Chamber of Commerce said a backlash from the law piled pressure on local shops, restaurants and hotels already hurt by the recession and delays of up to two hours for customers crossing up from Mexico.”This is one more obstacle that’s getting in the way,” she said.(Reuters)

Michigan lawmaker believes the state's law enforcement officers need the authority to arrest illegal immigrants

LANSINGA Michigan lawmaker believes the state’s law enforcement officers need the authority to arrest illegal immigrants and is drafting legislation similar to Arizona’s new immigration law.Rep. Kim Meltzer, R-Clinton Township, said her bill would allow police to request proof of citizenship from people who are stopped and questioned on another offense, such as a traffic violation or selling fraudulent identity documents. Officers would have the authority to arrest people who can’t prove their legal status.”We have borders in place for a reason,” Meltzer said. “Everyone should play by the rules.”

Meltzer, who’s a candidate for state Senate in the August primary election, said racial profiling — a key fear among opponents of Arizona’s law — would not be tolerated. She said a driver’s license would be reasonable proof that a person was legally living in the U.S.The Arizona law approved last month empowers local police to question anyone they suspect of being in the country illegally. It has triggered a heated national debate, touched off protests and prompted some states to look at their own laws.

Meltzer said that when the federal government ignores its border patrol responsibilities, it presents “a financial liability for our states, local communities and schools.”Her plan has already garnered strong reaction.”This is absolutely unacceptable,” said Emily Diaz-Torres, executive director of the new Macomb Hispanic and International Service Center in New Haven. “If it’s anything like the Arizona law, we will definitely fight it.”

Shelli Weisberg, legislative director for American Civil Liberties Union in Michigan, said the group would fight Meltzer’s bill in the Legislature and in court if necessary.”We don’t want an Arizona-style bill. It encourages racial profiling,” Weisberg said, adding that such a law would put Michigan out of step with other states.

But Ken Grabowski, legislative director for the Police Officers Association of Michigan, said a law giving local police more authority is “probably something that needs to be done.””In many instances, if police find someone who is here illegally, they take them to the local (Immigration and Naturalization Service) office, and the person is given an appearance notice for a later date. But nobody ever shows up. It’s a farce,” he said.

There is no official estimate of the number of illegal immigrants in Michigan, state demographer Ken Darga said, adding that the counting process “is pretty imprecise.”Meltzer said Michigan law enforcement officers have been left with the responsibility to protect the state against those who sneak across the U.S.-Canadian border.Federal border officials allocated about $20 million a year ago for 11 cameras to be set up along the St. Clair River to watch for illegal immigrants crossing from Canada.

The Group of Seven rich countries is concerned about Greece's debt problems

The Group of Seven rich countries is concerned about Greece’s debt problems, a Canadian official said on Friday, and hinted that there may be other countries that will also need help.Canada is this year’s chair of the G7.Canadian Finance Minister Jim Flaherty would not discuss the substance of talks between G7 finance ministers and central bank governors early on Friday, but said his G7 partners were watching developments closely.

“We are concerned. We’re consulting closely with our international partners.”In addition to Canada, the G7 includes Britain, France, Germany, Italy, Japan and the United States.Echoing comments from other G7 officials, Flaherty told reporters that the G7 believed countries that are borrowing heavily need to rein in fiscal deficits. But he questioned if they could do that on their own.

“It’s necessary that, first of all, that the countries involved take the steps they need to take and be clear about that, that they’re going to take these steps toward fiscal restraint, fiscal responsibility,” he said.”They will need some help, in all likelihood, in order to manage the issue, as Greece did.”

Leaders of euro zone countries on Friday approved a deal by the European Union and International Monetary fund to provide an aid package to Greece, EU sources said. The aid package of 110 billion euros ($147 billion) is to be released to Greece over three years.The IMF board is to meet on Sunday to discuss its share of the rescue deal.Greece has promised to slash spending in return, measures which have provoked violent protests in Athens.

U.S. President Barack Obama, in remarks at the White House to highlight stronger-than-forecast U.S. April job growth, said he had discussed developments in the Greek debt situation with German Chancellor Angela Merkel by telephone.”We agreed on the importance of a strong policy response by the affected countries and a strong financial response from the international community,” Obama said.

“I made clear that the United States supports these efforts and will continue to cooperate with European authorities and the IMF during this critical period.”

GEITHNER TALKS WITH G7, U.S. REGULATORS

U.S. Treasury Secretary Timothy Geithner also participated in the G7 call, but a Treasury spokesman had no immediate comment on the outcome.A U.S. Treasury official earlier had described the call as being “focused on European leaders updating the G7 finance ministers and central bank governors” on Greece’s debt woes.Geithner also held conference calls on Friday morning with the heads of two U.S. market regulators, the Securities and Exchange Commission and the Commodity Futures Trading Commission, and with Federal Reserve officials.

The SEC and CFTC are investigating Thursday’s sudden stock market plunge, which some market sources say may have been caused by an errant trade by a large bank. An Obama administration official said the Treasury Department was closely monitoring the probe.The G7 comprises Britain, Canada, France, Germany, Italy, Japan and the United States. It has lost significance as the world puts more stress on the broader Group of 20 industrialized and emerging economies, but retains a role in issues like the European debt crisis.(Reuters)

British candy maker Cadbury PLC was thrown further into doubt Tuesday when a major Kraft Foods Inc

Kraft Cadbury

LONDON The battle for British candy maker Cadbury PLC was thrown further into doubt Tuesday when a major Kraft Foods Inc. shareholder voted not to endorse the U.S. company’s hostile takeover bid, even as Kraft sweetened its offer with more cash.Billionaire Warren Buffett’s Berkshire Hathaway Inc. said it had voted against Kraft’s proposal to issue 370 million shares to finance its 10.3 billion pound ($16.5 billion) bid, saying it was worried Kraft would raise the bid even higher.Kraft earlier Tuesday increased the cash part of its offer after agreeing to sell its North American pizza business to Nestle for $3.7 billion. Nestle also said it wouldn’t be making its own offer for Cadbury, as some analyst had speculated.That leaves Kraft the sole bidder for now, though the British maker of Dairy Milk chocolate and Dentyne gum has said it has received expressions of interest from The Hershey Co. of the United States and Italy’s Ferrero International SA.

Cadbury dismissed Kraft’s plan to use the money raised from selling brands such as Tombstone and Jack’s to increase the proportion of cash in its offer as “tinkering.”Shares in the British maker of Dairy Milk chocolate and Dentyne gum were down 3.7 percent at 775 pence, after briefly diving to 764.4 pence following Berkshire Hathaway’s announcement.Berkshire Hathaway, which holds 9.4 percent of Kraft’s stock, said that the share issue would give Kraft “a blank check allowing it to change its offer to Cadbury in any way it wishes.””And we worry very much that, indeed, there will be an additional change from the revision announced this morning,” it added. “To state the matter simply, a shareholder voting “yes” today is authorizing a huge transaction without knowing its cost or the means of payment.”

Kraft, based in Northfield, Illinois, could not immediately be reached for comment on Berkshire Hathaway’s move.Kraft, whose brands include Philadelphia cream cheese and Oreo cookies, earlier said its change to offer reflected calls by some Cadbury shareholders to have more of the offer in cash and “to be more sparing in its use of undervalued Kraft Foods shares as currency for the offer.””Kraft Foods continues to believe that its share price is depressed as a consequence of a number of short term factors which it believes will dissipate once the uncertainty surrounding its offer for Cadbury is resolved,” the company said in a statement.

Kraft said Tuesday it will use an amount equivalent to the net proceeds from the pizza sale, which it estimates to be 60 pence per Cadbury share, to fund a partial cash alternative to its offer.It also extended the deadline for shareholders to accept its bid until Feb. 2 – the last day in the 60-day timetable set by the U.K. Takeover Panel.It has until Jan. 19 to revise its offer further.Berkshire said it will vote to issue shares only if it does not think the final offer hurts value for Kraft shareholders.

Cadbury’s share price is still well above the original 742 pence value of Kraft’s offer – 300 pence in cash and 0.2589 Kraft shares for each Cadbury share – reflecting the odds that changing the cash component is unlikely to be enough to win over shareholders who are seeking a higher overall price.Cadbury, which recently outlined its credentials as a stand-alone company by raising its long-term performance targets and producing better-than-expected profit margins, said the offer continued to undervalue the British company.

“Kraft has once again missed the point,” it said. “Despite this tinkering, the Kraft offer remains unchanged and derisory with less than half the consideration in cash.”Cadbury is due to provide a trading update, including the key Christmas season, next week.Nestle’s earlier decision to rule itself out of the bidding settled rumors that the Swiss maker of Nescafe coffee and KitKat chocolate was gathering a war chest for a rival bid after it agreed to sell off its 52 percent stake in eyecare company Alcon for $28 billion and announced it would spend less cash on share buybacks.

Some analysts still believe that another suitor may emerge.”We think that Hershey is keen to make a deal with Cadbury,” analysts at Numis stockbrokers wrote in a research note. “In reality Nestle is acting as a fund provider to the Cadbury deal and we would not be surprised to see the Swiss group play that role again by buying assets from Hershey, the Kit Kat brand in the U.S. being an obvious candidate.”

Nestle, meanwhile, is gaining a pizza business that includes the Tombstone and Jack’s brands in the U.S., the Delissio brand in Canada and the California Pizza Kitchen trademark license. It also includes two Wisconsin manufacturing facilities in Medford and Little Chute, Wisconsin.Nestle said the acquisition will add a “new strategic pillar” to its frozen food portfolio in the U.S. and Canada, making it a significant player in the $37 billion a year pizza market. Nestle is already represented in the U.S. with brands such as Stouffer’s, Lean Cuisine, Buitoni, Hot Pockets and Lean Pockets.Shares in the Swiss company rose 1.5 percent to 50.95 Swiss francs.About 3,400 employees are expected to transfer to Nestle.(AP)

BlackBerry service in less than a week frustrated people

BlackBerry

TORONTO  The second outage of BlackBerry service in less than a week frustrated people who depend on the messaging device and comes at a bad time for its maker, which faces increasing competition in the market it helped pioneer.BlackBerry subscribers often are so reliant on the devices that they peck at their keyboards all day and keep them on their night stands while they sleep. When e-mail and Web service on the devices went out Tuesday night, Twitter and other online forums were peppered with complaints.

BlackBerry service was restored Wednesday morning, and the company behind the service, Canada’s Research in Motion Ltd., blamed a software upgrade for the problem. The glitch, which comes after another outage last Thursday, could damage the company’s reputation.

“One of RIM’s big advantages is that it’s perceived as a reliable device,” said Duncan Stewart, director of research and analysis at DSam Consulting. “To lose the advantage of reliability would in fact be a very big deal for this company.”

Herbert Sexton, 34, said his BlackBerry service has been spotty all week where he lives near Atlanta. One day no messages come in at all and the next, 130 e-mails flood his inbox. Messages he’s already replied to pop up again. He said the disruption could push him to a different phone.

“I like to have something constant,” he said. “If service keeps going out, you never know what to expect.”

RIM has sold more than 75 million BlackBerrys worldwide since the gadget debuted at the start of this decade and became part of popular culture. It earned the nickname “CrackBerry” among people who became addicted to using it to stay productive or in touch with others while on the go. Frequent users of its compact keyboard have been known to complain of suffering from “BlackBerry Thumb.”

RIM counts more than 36 million subscribers, including 500,000 in the U.S. government. President Barack Obama has been a BlackBerry devotee.

After originally focusing on corporate or government customers, RIM has expanded into the consumer market in recent years with touch-screen models as the BlackBerry Storm. The consumer market, however, can be more fickle. And there RIM faces tough competition from devices such as Apple’s iPhone, Palm’s Pre and the Motorola Droid. RIM’s stock has dropped 23 percent since September.

The iPhone in particular stole much of RIM’s thunder because of its design cachet and the seemingly limitless supply of programs, known as “apps,” that users can download to customize their phones. Yet the iPhone also has not been as reliable as many users would like. AT&T, the sole carrier of the device in the U.S., has been upgrading its network to reduce the dropped connections and long waits people have encountered when trying to run programs.

Although RIM’s service is sold by wireless carriers, RIM manages its messaging network itself. That can improve reliability, but the centralized structure also means that any problems can affect millions of users. BlackBerry service went out at least three times in 2008.

This week’s outage apparently stemmed from a flaw in recently released versions of RIM’s instant messaging software, known as BlackBerry Messenger. On Wednesday, RIM released a new version that resolves the program and encouraged anyone who downloaded or upgraded BlackBerry Messenger since Dec. 14 to upgrade to this latest version.

RIM, which is based in Waterloo, Ontario, apologized for any inconvenience experienced by customers.

anadian government approved for telecom Globalive Wireless Management Corp

telecom Globalive

The Canadian government said Friday that it has approved a request from Egyptian-backed telecom Globalive Wireless Management Corp. to launch its mobile phone service in Canada.

It will be the fourth major wireless company serving Canada, competing with Rogers Communications Inc., BCE Inc. and Telus Corp.

Industry Minister Tony Clement said the federal cabinet has determined Globalive meets Canadian ownership requirements, reversing an earlier ruling by the country’s federal telecom regulator.

“Now we’re ready for action,” Globalive CEO and Chairman Anthony Lacavera told cheering supporters in Toronto. “We could be launching as early as next week.”

“The objective is to have a few–quite a few–WIND Mobiles under your Christmas tree,” Ken Campbell, CEO of WIND Mobile, the brand name Globalive will operate under across Canada.

The Canadian Radio-Television and Telecommunications Commission had turned down Globalive’s request in October because it is majority funded and controlled by Egypt’s Orascom Telecom Holding, the Middle East’s largest telecommunications operator by market capitalization.

Orascom, which is controlled by Egyptian telecommunications mogul Naguib Sawiris, holds 65 percent of parent company Globalive Holdings, while Canadian entrepreneur and Globalive chairman Anthony Lacavera owns the rest. Orascom also holds much of Globalive’s debt.

But Clement said 80 percent of Globalive’s voting shares are held by Canadians and the wireless company, which is based in Toronto, should be considered Canadian.

“We came to the conclusion the lender had influence over the company, which is perfectly acceptable under our legislation, it did not have control over the company,” Clement said. “This variance is effective immediately allowing Globalive to enter the market without delay.”

Globalive’s arrival is expected to put pressure on consumer prices across the industry, as it heralds the entry of more players into the market opened up through an auction of wireless spectrum in 2008. The Organization for Economic Co-operation and Development’s annual Communications Outlook study, published in August, found that Canada has the third-highest wireless rates among developed countries after the United States and Spain.

In that auction, Globalive paid 442 million Canadian dollars ($419 million) for airwaves over which to operate and has invested millions more in its network and employees.

Globalive has already hired 800 employees and approximately half have already finished their training and are now doing paid volunteer work at organizations such as food banks, boys and girls groups, literacy groups and the Salvation Army.

The telecom regulator reviewed Globalive’s corporate structure last spring and decided its operations would contravene the Telecommunications Act that stipulated companies be controlled by Canadian interests. That decision flew in the face of an earlier review by Industry Canada that gave the company a license in the interest of promoting competition.

The Canadian government, wanting to spark more competition in the telecommunications business, reviewed the earlier ruling with input from the industry.

And Clement said last week that the federal cabinet has the power to overrule the telecommunications regulator and that Globalive was entitled to launch its own protest.

Clement stressed that Friday’s announcement was not giving Globalive special treatment.

“Let me state for the record, government is not removing, reducing, bending or creating an exception to Canadian ownership and control requirements in the telecommunications and broadcast industries,” he said.

Rogers Communications, BCE and Telus, which together control 95 percent of the Canadian market, lobbied to halt Globalive’s advances, saying Globalive was breaking the Telecom Act because it was under foreign control.

“It’s disappointing, as we think Globalive quite clearly does not meet the requirements for Canadian control,” said Bell Canada spokeswoman Jacqueline Michelis. “We’ll be taking a close look at the reasoning behind this decision.”

Michael Hennessy, senior vice president of Telus’s regulatory and government affairs, said the ruling “has established an enormous precedent going forward as to how people are supposed to interpret our Canadian ownership laws.”

“This could be enormous from airlines to banks to telecom to broadcasting,” he said.

But Rogers said competition is good for Canadian consumers.

“We’ve always thrived in a competitive environment and we’re ready to meet the competition head on,” said spokeswoman Odette Coleman.

Deloitte Canada analyst Duncan Stewart said the federal government wants more competition in the cell phone industry. Globalive is probably the new competitor that the established players fear the most, said Stewart.

Shares in the major telecoms dropped Friday in early trading on the Toronto Stock Exchange. Rogers shares fell 3.4 percent to 32.25 Canadian dollars, Bell Canada parent BCE’s stock was off 2.4 percent at 27.75 Canadian dollars and Telus stock slipped 1.7 percent to 33.10 Canadian dollars.

A neutron star is born: Stellar core just 12 miles across spotted 11,000 light years away

This supernova was captured by NASA Chandra X-Ray Observatory. The neutron star is the blue dot at the center of the picture

An infant neutron star, the super-dense core of a stellar explosion, has been observed for the first time.The 12.4 mile-wide object is the youngest object of its kind ever discovered, having appeared just 330 years ago.

It has been cloaked in mystery since it was identified as a powerful X-ray source in 1999. Astronomers  now know the source is a neutron star 11,000 light years from Earth at the center of the supernova Cassiopeia A.Neutron stars are the super-dense compact cores of massive stars whose outer shells have been blasted away in violent explosions at the end of their lives.Compressed tightly by gravity, they are composed almost entirely of neutrons, sub-atomic particles with no electric charge that form part of atoms.One teaspoonful of material from a neutron star would weigh a billion tonnes.

neutron star

Scientists are intrigued by the star’s carbon atmosphere which is just 10cm thick. This compares to our own atmosphere which is 100km

Astronomers studied the supernova using the Chandra X-ray space telescope launched by the American space agency NASA in 1999.

Every other neutron star identified by scientists has been much older. It is hoped the object will reveal more clues about the role exploding stars play in building the Universe.

Heavy elements flung out into space by supernovae end up in the rocks of planets such as the Earth. Even the human body is largely composed of stardust.

Professor Craig Heinke , from the University of Alberta in Canada, who co-led the new research published in the journal Nature, said: ‘The discovery helps us understand how neutron stars are born in violent supernova explosions.’This neutron star was born so hot that nuclear fusion happened on its surface, producing a carbon atmosphere just 10 centimeters thick.’(daily mail)