[oe] building module-init-tools-cross fails

[Sashan Govender]

I'm trying out openembedded but get this error:

ERROR: function do_compile failed
ERROR: log data follows
(/home/sashan/code/openembedded/build/tmp/work/i486-oe-linux-gnu/module-init-tools-cross-3.2.2-r5/temp/log.do_compile.12217)
| NOTE: make
| gcc  -isystem/home/sashan/code/openembedded/build/tmp/staging/x86_64-linux/usr/include
-O2 -g -Wunused -Wall -static
-L/home/sashan/code/openembedded/build/tmp/staging/x86_64-linux/usr/lib
-Wl,-rpath-link,/home/sashan/code/openembedded/build/tmp/staging/x86_64-linux/usr/lib
-Wl,-rpath,/home/sashan/code/openembedded/build/tmp/staging/x86_64-linux/usr/lib
-Wl,-O1 -o insmod.static insmod.o
| /usr/bin/ld: cannot find -lc
| collect2: ld returned 1 exit status
| make: *** [insmod.static] Error 1
| FATAL: oe_runmake failed

This is my local.conf file:

DL_DIR = "${HOME}/archives"
BBFILES = ${OEBASE}/openembedded/recipes/*/*.bb
BBMASK = ""
PREFERRED_PROVIDERS = "virtual/qte:qte virtual/libqpe:libqpe-opie"
PREFERRED_PROVIDERS += " virtual/libsdl:libsdl-x11"
PREFERRED_PROVIDERS += " virtual/${TARGET_PREFIX}gcc-initial:gcc-cross-initial"
PREFERRED_PROVIDERS += "
virtual/${TARGET_PREFIX}gcc-intermediate:gcc-cross-intermediate"
PREFERRED_PROVIDERS += " virtual/${TARGET_PREFIX}gcc:gcc-cross"
PREFERRED_PROVIDERS += " virtual/${TARGET_PREFIX}g++:gcc-cross"
MACHINE = "x86"
TARGET_OS = "linux"
DISTRO = "minimal"
IMAGE_FSTYPES = "jffs2 tar"
BINCLUDELOGS = "yes"

What am I missing?